MSAB: Interim Report January - September 2015
- Net sales increased by 29.8 % to MSEK 59.6 (45.9), (15.1 % in local currencies)
- EBIT increased to MSEK 15.3 (11.4)
- EBIT-margin was 25.7 (24.7) %, (19.8 % in local currencies)
- Profit after tax was MSEK 12.0 (10.0)
- Earnings per share before dilution amounted to SEK 0.67 (0.56)
- Earnings per share after dilution amounted to SEK 0.66 (0.56)
- Cash flow from operating activities amounted to MSEK 14.4 (1.1)
January – September
- Net sales increased by 40.1 % to MSEK 161.7 (115.4), (23.3 % in local currencies)
- EBIT increased to MSEK 38.2 (-5.4)
- EBIT-margin was 23.6 (-4.6) %, (17.5 % in local currencies)
- Profit after tax was MSEK 29.2 (-4.2)
- Earnings per share before dilution amounted to SEK 1.63 (-0.23)
- Earnings per share after dilution amounted to SEK 1.60 (-0.23)
- Cash flow from operating activities amounted to MSEK 37.1 (-8.6)
- Cash and cash equivalents amounted to MSEK 84.9 (42.1) at the end of the period
Comments by the CEO
MSAB’s net sales growth for the period January – September 2015 was 40.1 (19.6) % with sales of MSEK 161.7 (115.4). EBIT increased to MSEK 38.2 (-5.4), corresponding to an EBIT-margin of 23.6 (-4.6) %. This is the strongest nine-month period ever in the history of the company. The comparative figure for 2014 is impacted by non-recurring expenses related to the ongoing litigation at the time and incentive program-related costs. Excluding these costs, EBIT for the first nine months of 2014 would have been MSEK 16.3. Currency adjusted sales growth for the period is 23.3 %.
Growth remains extensive and all regions are growing. After a strong Q3, North America has become our largest market for the first time, accounting for about 45 % of sales after nine months. EMEA, our oldest market, is very important for MSAB and accounts for about 40 % of sales for the period. Asia and the CIS is the region that is growing most in terms of percent. Growth to date is 76 % increase, and now accounts for 15 % of the company's total sales.
Mobile phones are of interest in all types of crime. In both sophisticated, cross border financial crime and everyday crime, information from mobile devices is often crucial for criminal investigations. Our customers rarely have the capacity to secure evidence in as many phones as would be desirable. More and more law enforcement agencies need to establish a policy to address the growing number of phones and the amount of data they need to process and analyse. Efficiency solutions are essential for effective law enforcement and the XRY family is such a solution.
MSAB has developed a concept over several years where we not only have a number of products to meet the needs of different users, but where there is also a logical and strategic connection between all components. Today MSAB has a complete platform of products, each of which fulfils a function in a forensic ecosystem. Our unique strength lies in how our system solutions convey data to different customer functions in a manner that is forensically and legally secure.
The British police in general, and the Metropolitan Police Service (MPS) in particular, have been at the forefront of new technology and the use of evidence secured from mobile phones. MPS is currently undergoing an extensive renewal and change process aimed at optimising costs and streamlining its operations. Our products and expertise in mobile forensics will be an important part of this renewal process. The UK is a market where MSAB’s products seen great success from an early stage. MPS is now taking the next step and implementing our products at a strategic level, which is particularly positive since other organisations around the world will have a reference on how efficient and cost effective it is to use MSAB's solutions.
We have long had the aspiration to showcase our offering to serve as a strategic resource for our client base in crime fighting and intelligence. The development at the Metropolitan Police Service show that we are on the way to succeed in this endeavour.
Stockholm October 2015
President & CEO
MSAB in Brief
MSAB is a world leader in mobile forensics technology with the aim of extracting and analysing data from confiscated mobile devices, mainly from mobile phones. The company has its own sales offices and sales representatives in Europe, North America, South America, China, Australia and Russia, covering most of the world together with a number of distributors. The proprietary products have become a de facto standard in the field and are used for securing evidence in over 100 countries. The products are complemented by a wide range of training courses, with the opportunity to become certified in a forensically sound method of extracting data from mobile devices. Customers are primarily authorities involved in performing criminal investigations, such as police, customs and the military. MSAB is listed on NASDAQ Stockholm under the ticker symbol: MSAB B.