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CORRECTION: HMS Networks AB: Cautious attitude by customers resulted in a weak ending of the year



2013-01-17 09:26:11 -


This is a correction of the announcement from 08:00 17.01.2013 CET. Reason for
the correction: EBIT margins stated for the fourth quarter and full year relates
to 2012.

As previously communicated HMS has noted a weak market during the end of the
year and that customers are becoming more cautious under the uncertain
conditions. This weakening was noticeable during the last month of the year and
resulted in a weak fourth quarter.

Based on preliminary information net sales for 2012 reached SEK 382 m (384).
 Net sales for the fourth quarter were approximately SEK 87 m (95). The
expansion during the previous year's increasing the company's sales- and
development resources have affected operating expenses. Based on a preliminary
assessment HMS operating margin for the fourth quarter will be approximately 7 %
(11) and approximately 17 % (19) for the full year 2012. At the same time it can
be noted that order intake during the fourth quarter reached approximately SEK
100 m (83) and that order intake at the beginning of 2013 is consistently on a
good level.

 "During the latter part of 2012 we have seen a continued weak order intake on
several markets. The uncertain development on the market made our existing
customers take a more cautious position. During the month of December we could
see an unexpected weak sales volume which together with an unfavorable customer
mix and currency effects affected the gross margin negatively. HMS still has a
good inflow of design wins and new customizations of our existing technology to
leading actors in the market. The effect on sales from this will occur during
the latter part of 2013 and forward. We can conclude that order intake during
the fourth quarter reached approximately SEK 100 m corresponding to a 20%
increase compared to the same period the previous year." says CEO Staffan
Dahlström

The uncertainty on the Japanese market continues in the near future. In German
the market is cautious but we do see positive signals at the beginning of the
new year. The US market continues to develop relatively positive but weaker than
previously expected.

The Company's yearend report will be presented on February 7, 2013

For more information please contact:
Staffan Dahlström, Chief Executive Officer, HMS, phone: +46 35 17 29 01
Gunnar Högberg, Chief Financial Officer, HMS, phone: +46 35 17 29 95

HMS Networks AB (publ) is a world-leading supplier of communication technology
for industrial automation. Sales for the last twelve months totaled SEK 380
million. Over 90% of these sales were to customers located outside Sweden. All
product development and parts of the manufacturing are performed at the head
office in Halmstad. Sales offices are located in Tokyo, Beijing, Karlsruhe,
Chicago, Milan, Mulhouse, Pune, Coventry and Copenhagen. HMS has 240 employees
and produces network interface cards and Gateways to interconnect different
networks under the trademark Anybus® and products for remote management under
the trademark Netbiter®. HMS is listed on NASDAQ-OMX Nordic Exchange in
Stockholm in the category Small Cap, Information Technology.


Press Release PDF :
hugin.info/138433/R/1671090/543189.pdf



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Source: HMS Networks AB via Thomson Reuters ONE
[HUG#1671090]


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