Interim Report Q2, April to June 2024
Summary April - June 2024
• Net sales amounted to SEK 79.1 (104.7) million, a decrease of -24.5 percent compared to the same period last year. Adjusted for currency fluctuations, growth was -25.2 percent.
• Operating profit (EBIT) amounted to SEK -3.5 (2.7) million, corresponding to an operating margin of -4.4 (2.6) percent.
• Profit after tax amounted to SEK -2.8 (2.9) million.
• Earnings per share before/after dilution amounted to SEK -0.15 (0.16).
• Cash flow from operating activities amounted to SEK 1.2 (21.7) million.
Summary January - June 2024
• Net sales amounted to SEK 171.9 (192.1) million, a decrease of -10.5 percent compared to the same period last year. Adjusted for currency fluctuations, growth was -10.9 percent.
• Operating profit (EBIT) amounted to SEK -12.2 (10.9) million, corresponding to an operating margin of -7.1 (5.7) percent.
• Profit after tax amounted to SEK -10.4 (9.6) million.
• Earnings per share before/after dilution amounted to SEK -0.57 (0.52).
• Cash flow from operating activities amounted to SEK 20.0 (45.7) million.
CEO comments
In terms of sales, it was a disappointing second quarter overall, but there were significant variations between the regions. The EMEA region did not deliver revenue in line with expectations which could be attributed to several factors. For example, some larger orders expected in the second quarter were delayed and will likely come in the second half of the year.
On a more positive note, in the APAC region India stood out in terms of revenue. We recently appointed a new Vice President of Sales for APAC to further solidify and compound this positive market development. In the Americas a significant Canadian renewals contract from law enforcement and government customers was secured with an order value of 13 MSEK, a good indication of the continued use and support of our product range.
One of my first actions on joining MSAB as the acting CEO was a deep dive into our product portfolio. My findings are that we have a very interesting portfolio today and an even more interesting roadmap for tomorrow. We have some great new products that we will introduce in the coming 6-24 months. In addition to this we will also accelerate investments in our current products to make them even more attractive for our customers. Based on the execution of these investments I am confident that MSAB has a very promising future and that we will see significant revenue results in the coming 12-24 months.
The first half of the year has been characterized by significant changes with the introduction of new structures and ways of working across the Company. In the first quarter, we established a new global sales organization, and during the second quarter, we restructured the development department to increase our capabilities and velocity in delivery to market. This restructuring is now complete, enabling us to turn our full attention to delivering value for our customers.
After just over one month as acting CEO I can conclude that MSAB enters the second half of the year with a stable financial position, despite lower sales overall for the quarter. We see some promising opportunities for the second half of the year, especially in regions EMEA and Americas.
I am extremely proud to have taken on this role and look forward to working closely with the Board of Directors on developing our company strategy and whilst we recruit a permanent CEO. I see many growth opportunities for MSAB in the market; the products and services we provide are needed by governments all over the world to support and protect society.
Stockholm, July 2024
Peter Gille
Acting CEO MSAB
The information in this report is such that MSAB, Corporate ID number 556244-3050, is required to disclose in accordance with the EU’s Market Abuse Regulation. The information in this report was submitted for publication on July 19th, 2024, at 08:00 CEST.
For further information, please contact:
Peter Gille, Acting CEO MSAB, peter.gille@msab.com
Tony Forsgren, CFO MSAB, tony.forsgren@msab.com
About MSAB:
MSAB is a world leader in forensic technology for extracting and analyzing data in seized mobile devices. The company develops high-quality and easy-to-use software for law enforcement organizations, such as police, defence, and customs. The products, which have become a de facto standard for securing evidence in criminal investigations, can be supplemented with reporting tools and a large range of training with certifications within a holistic method for forensic science. The company serves customers in more than 100 countries worldwide, through its own sales offices and through distributors. MSAB is listed on Nasdaq Stockholm under the ticker name: MSAB B. www.msab.com