IVISYS AB publishes interim report for the period of January to September 2016

Press release
IVISYS AB
556998-4981
21 October 2016

IVISYS AB (‘IVISYS’) has today published the interim report for the period January to September 2016. Below is a summary of the report.

Nine months (1 January 2016 to 30 September 2016)

– Revenue for the period was 217 KSEK (575).
– Operating income was -7 467  KSEK (-5 235).
– Earnings per share were -0.84 SEK (-0.62).
– The equity ratio was 57.3 % (94 %).

Third quarter (1 July 2016 to 30 September 2016)

– Revenue for the period was 50 KSEK (0).
– Operating income was -2 799 KSEK (-1 820).
– Earnings per share were -0.32 SEK (-0.20).

Definitions
– Earnings per share: Earnings of the period divided by 6 836 535, as of 30 September 2016.
– Equity ratio: Equity divided by total assets.
Figures in parentheses are numbers for the corresponding quarter the previous year.

IVISYS CEO Jakob Kesje comments

‘We have just finished an eventful quarter and I would like to summarise some of the events of that quarter as well as outline the imminent future.

As of today, IVISYS has more than 40 offers out in the market, at various project stages with regards to final acceptance. These offers have a value of more than 20 million SEK. We estimate that conclusive decisions regarding all these offers should be reached within a 12 months’ period. Moreover, about ten new requests are currently added each month. On that basis, we hopefully anticipate IVISYS is near a market breakthrough, and that the inflow in Q4 will highlight this, with the company’s first profitable quarter as a consequence.

IVISYS has long worked on creating a broader awareness of the company in the European automotive industry, a very cautious and conservative market with great potential for IVISYS products. However, the automotive industry, like other manufacturing industries, is characterised by lengthy sales cycles, with protracted decision making processes.

IVISYS is in the negotiation stage with several potential customers and to strengthen our market presence and handle the orders that potentially will be closed successfully within the next 12 months, the Extraordinary General Meeting on October 14 authorised the board to conduct an issuance of max. 1 500 000 shares and/or warrants.

The development of standard solutions, such as the ‘IVISYS Fastener Inspection Station’ has been positive and in addition to possible follow-up orders from the initial customer, there are several other prospective customers, who will demand similar solutions. In line with this, in August, we received a test order from a global manufacturer of metal components for a solution based on our ‘IVISYS Advanced Conveyor Inspection Station’ product. Moreover, in late September, we received an order for an optimised solution for the verification of proper fastening of, for example, spray heads and screw caps on plastic containers.

Generally, there is growing interest in automated vision control across the manufacturing industry and the market is expanding continuously. A research institute expects that the market for computer vision will grow from 6.6 billion USD in 2015 to 48.6 billion USD in 2022, of which robotic vision and machine vision is expected to make up approximately 20-22 per cent*. Our experience confirms this growing market interest, which is especially apparent when we participate in trade fairs, most recently the trade fair MOTEK in Stuttgart. The increasing demand is not only from large markets like Germany, it is also expanding in more rapidly growing economies. This is illustrated by our new partnership with FMach, which is a Slovakian provider in consulting, automation and engineering work, who distribute our vision solutions.

We are steadily working on protecting our intellectual property rights, and obtaining patents is part of our long-term strategy. In August, we received official approval from the Japanese Patent Office concerning ‘Method and Device for Finding Nearest Neighbor’. The patent relates to the sorting, searching and matching of multi-dimensional data and provides IVISYS with protection for its technology related to searches of large image databases. We already have this technology patented in Denmark and the USA and, through this patent, we are in an even stronger position when it comes to securing our intellectual property rights.

Finally, it is very gratifying that, in Q3, we were spotted on a list of the top 10 "machine vision" providers based on technical solutions. It is a list that also included several other major players.’

Jacob Kesje
CEO IVISYS AB

* www.tractica.com

Important events during the third quarter of 2016

– In July, IVISYS announced that the company had established a partnership with Slovak FMach S.R.O. (‘FMach’) regarding the distribution of its products. FMach will promote IVISYS’s vision solutions, which will also become a permanent part of FMach’s product offering.

– In August, IVISYS received a test order from a global manufacturer of metal components. The order concerned a solution regarding an inspection station for the precise measurement of components in serial production.

– On the 12 August, IVISYS received official approval from the Japanese Patent Office for the company's patent for its ‘Method and Device for Finding Nearest Neighbor’. The patent relates to the sorting, searching and matching of multi-dimensional data, such as vectors, to find the nearest neighbor.

– IVISYS welcomed a new CFO and strengthened the engineering team with two new engineers in August.

– In September, IVISYS received an order from a Nordic distributor of healthcare and food products. The order covered an optimised solution for the verification of proper fastening of, for example, spray heads and screw caps on plastic containers.

– In late September, IVISYS called an extraordinary general meeting for 14 October, 2016.

Important events after the end of the period

– From 10-13 October, IVISYS exhibited at Motek 2016, an international trade fair for automation in production and assembly in Stuttgart.

– On 14 October, IVISYS published a communique of the Extraordinary General Meeting held on 14 October. For information regarding the decisions made, a summary of the resolutions passed is available on the company’s website.

– On 21 October, IVISYS published a status report.

For a full interim report (only in Swedish), please see: http://ivisys.com/investor/financial-reports/

Certified Adviser

Sedermera Fondkommission is Certified Adviser to IVISYS.

For more information, please contact:

Jakob Kesje, CEO IVISYS AB
Phone: +45 20 22 60 10
E-mail: jk@ivisys.com

About IVISYS

IVISYS provides vision-based, quality inspection solutions for the industry, which can replace both manual and mechanical quality control. IVISYS’ unique, patented solutions make it possible to perform complex quality control while keeping the existing production flow unaffected. Unlike existing solutions, IVISYS provides solutions that make it possible to perform complex surface controls, control measurements on the micron level, and control multiple components in one instant process. The solutions are based on IVISYS’s patented image data processing, which differs fundamentally from the conventional processes used within vision systems today. IVISYS is capable of utilising high-resolution cameras in the company’s image processing, while at the same time processing image information faster than the company’s competitors. The solutions offered, have an average payback period of approximately six months for customers currently relying on mechanical or manual control.

This information is information that IVISYS AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above on 21 October 2016.

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