Quartely report for TagMaster AB January-March 2016
Press release, Sweden, Stockholm, April 28 2016
A robust quarter with extensive development work
- Net sales increased during the first quarter by 28,1% to 24,6 MSEK (19,2)
- Result before depreciation (EBITDA) was 2,0 MSEK (2,6), corresponding to a margin of 8,2% (13,74)
- Net result after tax was 0,9 MSEK (2,0)
- Result per share was 0,01 (0,02)
- Cash flow from the business for the period was -0,2 MSEK (3,4)
- CitySync Ltd makes a small operating profit for the quarter
After end of period
- TagMaster announced April 27 that its intention to acquire the French company Balogh, one of the pioneers within the RFID technology working within rail solutions and access/security solutions.
Comments by the CEO
Our sales during first quarter has been stable with much focus on product development, both general product development and customer specific product development.
We have come a long way in the integration and transformation work with CtySync, which after many years with losses is going through a major change with a total change in its strategy and with a substantially more efficient organization. As a consequence of the strategy change, turnover in CitySync will drop some during the year before going into a new growth phase. It is a result of that we consciously have left a number of larger non profitable projects and instead are focusing on building a scalable business model supported by several product launches during 2016. We have also chosen to focus our marketing resources on fewer markets coinciding with the markets of TagMaster.
Our Rail business has been characterized by intensive NRE (Nonrecurring Engineering) work connected to the big rail project announced during the end of last year. We work on a new rail reader where prototypes should be available already early second quarter, which is record time for a project this complexity.
We also work on a new rail tag with 20 year lifetime to be used in the same project, but also in other future projects. We still judge there will be further new projects of medium size coming in during 2016 and with serial deliveries the following years.
Our Traffic business has continued to develop well in several of our markets with increasing margins.
The US market has continued to develop well while the markets in EMEA and the Nordics have been unchanged. We continue to increase the market efforts during 2016 supported by our recently launched UHF products which we judge will have a positive impact on sales and margins during years to come. We continue the work to develop more products in our UHF family and we will launch more products by the end of 2016.
In CitySync we work on making new products in high speed to enable us to address a bigger application market. We have during the quarter started sales of CitySync 30, an IP based ANPR camera for the parking and the access markets, and which should be seen as an entry product. We launched during the quarter CitySync 50, an ANPR camera with all functions integrated in the camera, and which could work all standalone which makes it suitable for “free-flow” parking and for “buslane enforcement”. CitySync 50 is expected to start sellng during the second quarter and we will also launch CitySync 100, an ANPR camera for traffic solutions and toll roads during the present quarter. In parallel to all these hardware launches we refine our software and we offer a totally new web based user interface with the purpose to shorten installation time.
Our quarterly result of 2,0 MSEK (2,6) depends on somewhat higher costs in TagMaster as well as in CitySync due to the product development described above, explaining the lower comparable result.
This report like all previous economic reports can be found at the company home page www.tagmaster.com
For further information, please contact:
Jonas Svensson, CEO, +46 8-6321950, email@example.com
TagMaster is an application driven technology company that designs and markets advanced identification systems and solutions based on radio & vision technology (RFID & ANPR) for demanding environments. Business areas include Traffic Solutions and Rail Solutions providing innovative mobility solutions, sold under the brands TagMaster & CitySync, in order to increase efficiency, security, convenience and to decrease environmental impact within Smart Cities. TagMaster has dedicated agencies in the US and in China and exports mainly to Europe, Middle East, Asia and North America via a global network of partners, systems integrators and distributors. TagMaster was founded in 1994 and has its headquarters in Stockholm. TagMaster is a public company and its shares are traded on First North stock exchange in Stockholm, Sweden. TagMasters certified advisor is Remium AB. For more information about TagMaster, please visit www.tagmaster.com