Quarterly report January - March, 2001

Quarterly report January - March, 2001

• Orders increased to SEK 65 million (25). • Sales totaled SEK 28 million (32). • The profit margin on goods sold rose to 20% (13% for full-year 2000). • The core business reported a loss of SEK -7.4 million (-7.8). • Including its share of earnings in Mobilisys AB, the Company posted a loss of SEK -12.4 million (-7.8). • The board is proposing an issue of new shares for SEK 20 million to be guaranteed by one or more principal shareholders. • The associated company Mobilisys AB was liquidated as of April 2001. Operations The Company received orders for SEK 65 million in the first quarter, as opposed to SEK 25 million for the same period of 2000. The single biggest order was placed by EssNet for 5,000 monitors to be used by Lotto Hessen, followed by ongoing orders by SITA/SAS and Pearl, a pan-European optician chain. The majority of the orders are to be delivered in the second and third quarters. The fact that these customers order on an ongoing basis is further evidence that MultiQ´s running sales are steadily increasing. The SITA approval opened the door for MultiQ at airports around the world. The Company is currently engaged in discussions with a number of international airports in Europe. MultiQ signed an agreement with and obtained an initial order from ICA after the end of the quarter. ICA will be using MultiQ monitors for its price terminals and back office applications. The agreement represents very great potential. With 4,600 stores in Scandinavia and the Baltic states, ICA is the largest retail chain in the Nordic area. Sales of SEK 28 million (32) for the quarter fell below the same period of 2000. The decrease stems from disparities that arose as part of project-related business. As evidenced by new orders, MultiQ continues to enjoy a positive trend. Excluding the negative contribution by Mobilisys, the operating loss totaled SEK -7.4 million (-7.8). All of MultiQ´s flat monitors are exceptionally sturdy. As a result, they are perfectly suitable for checkout counters, production sites, and public settings. Part of the unique and powerful concept is the ability of businesses to adapt MultiQ´s products to their own logo, design, and colours. The Company´s sales derive increasingly from specially designed products and less from standard monitors. That development is part and parcel of MultiQ´s strategy of utilizing its in-house know-how to provide customized solutions. As a result of the strategy, the Company´s profit margin on goods sold rose to just over 20% in the first quarter, as opposed to an average of 13% in 2000. Mobilisys AB, in which MultiQ International AB was the single largest shareholders, has been liquidated. MultiQ´s share of Mobilisys AB´s loss reduced its first quarter earnings by SEK 5 million. At that rate, the liquidation of Mobilisys will improve MultiQ´s full-year earnings by SEK 15 million. Including the negative contribution by Mobilisys, the operating loss totaled SEK -12.4 million (-7.8). Market trends The market for flat monitors is in a stage of rapid growth. Flat monitors accounted for only 5% of all western European monitor sales in 2000. Product prices and the limited availability of panels have inhibited market growth so far. A major increase in production capacity is now helping to ensure greater availability and lower prices. As a result, the market is opening up to totally new applications and groups of customers. Financial Position. Group cash and cash equivalents increased during the quarter by SEK 10.1 million to SEK 7.2 million. The equity ratio was 61.5 % (56.1). All product development is expensed on a continuing basis. The Company invested a total of SEK 1.0 million (2.1) in fixed assets during the quarter. In the judgment of the Board, the group will require a capital contribution of SEK 20 million for the increased tied-up capital in connection with the major orders due for delivery in the third quarter. The capital contribution will come from an issue of new shares to be guaranteed by one or more principal shareholders. The Board will propose to the annual general meeting that no dividend be distributed for 2000. Parent Company. The parent company, which had no sales during the quarter, reported an operating loss of SEK -1.0 million (-0.7). The profit after financial items was SEK 1.1 million (-1.2). The parent company invested SEK 0 million (0) in fixed assets. Cash and cash equivalents were SEK 0.1 million at March 31, 2001. Accounting principles This quarterly report has been prepared in accordance with the recommendations of the Swedish Financial Accounting Standards Council (Redovisningsrådet). The Company adheres to the accounting and valuation principles of the Redovisningsrådet. By complying with Recommendation 9 of the Redovisningsrådet, MultiQ can report a deferred tax benefit attributable to loss carry forwards of SEK 96 million. This tax benefit has not been reported in the final accounts. Listing The MultiQ share has been quoted on the O list of the Stockholm Stock Exchange since December 7, 1999. Upcoming financial information from MultiQ Report for Q2 August 9, 2001 Report for Q3 October 25, 2001 Preliminary accounts February 7, 2002 The 2000 annual report will be available from MultiQ starting on April 26. The annual general meeting will be held at 1:30 PM on May 31 at Hotel Jägersro, Jägersrovägen 160, Malmö. Jonathan Nilsson, President Please direct all questions concerning this report to Jonathan Nilsson, President ...............................................................