HMS Networks: Interim report 2017, January - March

Last twelve months

• Net sales for the last twelve months amounted to SEK 1 030 m (732) corresponding to a 37 % increase in local currencies. The revaluation of the Swedish currency had a positive impact of SEK 24 m on net sales
• Operating profit for the last twelve months was SEK 186 m (90) corresponding to a 18 % (12) operating margin
• Order intake for the twelve-month period was SEK 1 065 m (706)
• Cash flow from operating activities for the twelve-month period amounted to SEK 203 m (87)
• Profit after tax for the last twelve months amounted to SEK 128 m (51) and earnings per share was SEK 11.07 (4.46)

First quarter

• Net sales for the first quarter reached SEK 279 m (201) corresponding to a 35% increase in local currencies
• Operating profit was SEK 57 m (20) corresponding to a 21 % (10) operating margin
• Order intake for the first quarter was SEK 299 m (199)

Comment from the CEO

2017 is off to a good start for HMS. We can report record levels when it comes to order intake, sales and operating income. Our turnover for the first quarter landed on 279 MSEK. With stable gross margin and a disciplined expansion on the cost side, we reached an operating profit of 57 MSEK, corresponding to an operating margin of 21%. Order income is on a new record level (299 MSEK), the profit trend is positive and cash flow is strong - all resulting in good opportunities for us to actively work towards continued growth.

We see an underlying improvement in the economy boosting our organic growth to almost 20%. This combined with last year's acquisitions give us an overall growth of 35 % in local currencies for the first quarter.

We see very good growth in the U.S. where the willingness to invest has improved significantly. The weaker growth that we saw in Japan at the end of last year, has turned around, and Japan is now showing good growth again. Our largest market, Germany, continues to grow at a stable rate which concludes that all our markets and product lines are developing well.

We have initiated a number of partnerships in the United States within the area of "Industrial Internet of Things" and we see concrete inquiries and business beginning to take shape in this area. Our partnerships are primarily about complementary software solutions that can make use of the HMS communication products to gather data from industrial machines to various IT and IoT solutions.

Our focus is to drive continued growth in our business. We continue to balance our long term growth strategy with a cautious approach to costs. We believe that the market for industrial data communication is an interesting growth area, and we continue to focus on our motto "HMS - Connecting Devices."

Staffan Dahlström
Chief Executive Officer

Further information can be obtained from: CEO Staffan Dahlström, telephone [phone] or CFO Gunnar Högberg, telephone [phone]. www.hms-networks-com/ir

This information is such that HMS Networks AB (publ) is required to disclose in accordance with the Swedish Financial Instruments Trading Act and the Swedish Securities Market Act. The information was submitted for publication at 07.50 CET on April 25, 2017.

HMS Networks AB (publ) is the leading independent supplier of products for industrial communication and remote management. Reported sales reached SEK 952 m in 2016. Development and manufacturing take place at the headquarter in Halmstad, Sweden, in Nivelles Belgium, in Igualada, Spain and in Weingarten, Germany. Local sales and support are handled by branch offices in China, Denmark, France, Belgium, Germany, Spain, India, Italy, Japan, UK, and USA. HMS employs over 480 people and develops and manufactures solutions for connecting automation devices and systems to industrial networks under the Anybus®, IXXAT® and Intesis® brand and products for remote management and control under the eWON® brand. HMS is listed on the NASDAQ OMX in Stockholm, category Mid Cap, Information Technology.

Q1 Report 2017

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Source: HMS Networks AB via Globenewswire