INVISIO Communications Year-End Report 2012

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Stockholm, February 15, 2013

INVISIO Communications (IVSO) has published its Year-End Report for the full year of 2012. The highlights are below, and the Year-End Report as a whole is available for download at INVISIO’s website.

Lars Højgård Hansen, CEO INVISIO Communications, comments:

During the fourth quarter, INVISIO received the by far largest order in the company’s history – an order of SEK 19 m and an additional order of SEK 13 m from the Armed Forces of a NATO country through a leading radio manufacturer. The new record order is pleasing evidence that INVISIO’s communications solutions can reap success on the so called volume market with orders of thousands of units. Part of the order was delivered during the quarter and the remaining is expected to be delivered during the first quarter of 2013. Thus, the order book at the end of the year was the largest ever, SEK 27.9 m. With the current gross margin and costs, INVISIO needs a total annual income of about SEK 100 m to show profit. INVISIO begins 2013 with an order book of close to SEK 30 m and we expect a considerable growth in sales during the year. Numerous client trials and outstanding offers are at hand, but it is very difficult to determine which quarters these orders will possibly come in. Thus there are conditions for a profitable 2013 and the coming years, but it is too early to give comments about the expected outcome for 2013.”

October – December

  • Total income increased to SEK 17.9 m (9.5)
  • Sales for the business area Professional Products increased with 89.3 percent to SEK 17.9 m compared with the corresponding period 2011 (9.5)
  • Gross profit amounted to SEK 7.4 m (4.1). For Professional Products SEK 7.4 m (4.1)
  • Gross margin amounted to 41.1 percent (43.0)
  • Operating loss amounted to SEK -6.4 m (-7.0)
  • Loss after tax amounted to SEK -7.8 m (-8.9)
  • Loss per share amounted to SEK -0.22 (-0.34)
  • The order book for the business area Professional Products was SEK 27.9 m (3.7) at the end of the quarter

January – December

  • Total income increased to SEK 43.0 m (41.5)
  • Sales for the business area Professional Products increased with 12.6 percent to SEK 43.0 m compared with the corresponding period 2011 (38.2)
  • Gross profit amounted to SEK 18.1 m (20.3). For Professional Products SEK 18.1 m (18.0)
  • Gross margin amounted to 42.1 percent (49.0)
  • Operating loss amounted to SEK -25.8 m (-24.2)
  • Loss after tax amounted to SEK -29.5 m (-28.6)
  • Loss per share amounted to SEK -0.83 (-1.10)

Important Events October – December

  • INVISIO has received the by far largest order in the company’s history, from the Armed Forces of a NATO country through a leading radio manufacturer. The order was for a large number of INVISIO’s new communications system INVISIO V60 and the order value was approximately SEK 19 m.
  • INVISIO has received an additional order amounting to SEK 13 m from the same Armed Forces of a NATO country through a leading radio manufacturer as above. The additional order was also for the same product, the INVISIO V60 Communication System.
  • INVISIO launched a new advanced communications- and hearing protection system for modern military forces, INVISIO V60. With the new system the user gets a very light, compact and flexible communication system with built-in hearing protection and full 360 degree situational awareness. The system provides crystal-clear communication even in the most extreme and noisy conditions. Due to increased sales- and marketing costs including products for testing in connection with the launch of our new communications system, our costs were temporarily higher during the quarter compared with previous quarters this year.
  • The Board of INVISIO Communications AB decided November 30 on a directed share issue to a smaller group of investors of a total 2 272 724 shares, corresponding to about 6.3 percent of the total currently outstanding shares in the Company. With the share issue, the Company’s share capital increased with 2 272 724 SEK. The subscription price was SEK 4.40 per share and is assessed to correspond to the share´s market value. The share issue provided the Company with a total of SEK 10 m before issuance costs. The background for the share issue is to strengthen the Company´s financial position and to cover the Company’s short term need for working capital in forms of purchasing of components and manufacturing concerning the Company’s recently communicated record order.

Important Events After Year-End

  • INVISIO has received a loan of SEK 15 m from a leading Swedish commercial bank. The loan currency has been used to pay a previous loan from Alecta of SEK 10 m and a loan of SEK 5 m from Erik Penser Bankaktiebolag. The loan from the bank is free of amortization charges during 2013 and will be amortized with SEK 6 m in 2014 and with SEK 9 m in 2015. Yggdrasil has guaranteed the loan from the bank with SEK 15 m. INVISIO has pledged the securities against Yggdrasil instead of as previously against Alecta and Erik Penser Bankaktiebolag. INVISIO will pay an annual guarantee commission of 3.5 percent to Yggdrasil and the board of INVISIO has the view that the agreement with Yggdrasil is according to market conditions

For additional information, please contact:
Lars Højgård Hansen, CEO INVISIO Communications
Mobile: + 45 537 27722
Email:
lars.hojgard@invisio.com

About INVISIO Communications AB

INVISIO Communications AB is a public company listed on the NASDAQ OMX First North Premier Segment (ticker code: IVSO) an alternative market on NASDAQ OMX Stockholm. INVISIO specializes in voice communications in difficult conditions. The company develops, manufactures, markets and sells communication solutions such as advanced headsets control units and accessories for use with two-way radio, primarily for professional users who often work in difficult environments. The customers are for example found in the military and military Special Forces, police and SWAT teams, emergency services, the security sector, and various industries throughout the world. Additional information is available on the company’s web site at www.invisio.com. Mangold Fondkommission AB is Certified Adviser for INVISIO Communications AB.