Axis: Interim report January – March 2014

The first quarter

• Net sales increased by 15 percent during the first quarter to SEK 1,129 M (982). Net sales increased by 15 percent in local currencies.
• Operating profit decreased to SEK 72 M (89), which corresponds to an operating margin of 6.4 percent (9.1).
• Profit after tax amounted to SEK 52 M (66).
• Earnings per share amounted to SEK 0.75 (0.95).

President’s message
“Due to lower than expected sales during the end of the period, the earnings trend was weaker than anticipated. Eastern Europe has been clearly affected by the unrest in Russia and Ukraine. Meanwhile, overall sales were impacted by a weaker performance than expected in the Americas region, particularly during the second part of the quarter. At a global level, we did not notice any significant change in distributors’ inventory levels. We estimate that the underlying short-term demand is in line with the growth rate we saw during 2013.

Our investments for future growth have continued at a high pace. It is thanks to these ambitious investments that we were able to present a large number of new solutions in various product categories during the quarter. A number of new network cameras were released and we have introduced an upgraded version of our software for medium-sized installations, AXIS Camera Station. The recruitment rate continued to be high in early 2014 and the number of employees increased by 81 people.

Axis enters 2014 with a good potential for taking advantage of the opportunities offered by the market. We will continue to advance our offering for access control, to release new innovative network cameras and strengthened our offering for medium-sized installations”.

Ray Mauritsson, President

The full report and slide presentation is available on: http://www.axis.com/corporate/investor/financial_reports.htm

Invitation to telephone conference
Time: Thursday, April 24 at 10 a.m.
Phone number: + 46 (0)8 – 519 993 57
Participants from Axis AB will be: Ray Mauritsson, President, and Fredrik Sjöstrand, CFO.
The presentation will be webcasted live at: http://financialhearings.nu/140424/axis/

For more information, please contact:
Johan Lundin, Manager, Investor Relations
Telephone: + 46 (0)46-272 18 00, E-mail: IR@axis.com.

The information in this interim report is such that Axis is required to disclose in accordance with the Securities Market Act. Submitted for publication at 08.00 a.m. (CET) on 24th of April 2014.

About Axis Communications
Axis offers intelligent security solutions that enable a smarter, safer world. As the global market leader in network video, Axis is driving the industry by continually launching innovative network products based on an open platform - delivering high value to customers through a global partner network. Axis has long-term relationships with partners and provides them with knowledge and ground-breaking network products in existing and new markets.

Axis has more than 1,600 dedicated employees in more than 40 countries around the world, supported by a network of over 65,000 partners across 179 countries. Founded in 1984, Axis is a Sweden-based company listed on NASDAQ OMX Stockholm under the ticker AXIS. For more information about Axis, please visit our website www.axis.com

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