QUARTERLY REPORT FOR TAGMASTER AB (publ.) January-March 2014
Stable sales with continued positive result
First quarter
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Net sales was 14,5 MSEK (14,6)
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Result before depreciation (EBITDA) was 1,6 MSEK (1,9)
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Net result was 1,3 MSEK (1,5)
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Result per share was 0,01 (0,01)
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Cash flow from the business was -1,7 MSEK (-0,5)
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Launch of our new product family in the UHF area
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Serial deliveries of products to the Alstom project
| Sales and income | ||||||||
| TSEK | First quarter | Full year | ||||||
| 2014 | 2013 | Change | 2013 | 2012 | Change | |||
| Sales | 14 506 | 14 597 | -1% | 50 196 | 39 616 | 27% | ||
| Operating income (EBITDA) | 1 556 | 1 940 | -20% | 2 776 | 154 | 1703% | ||
| Operating margin (EBITDA) | 10,7% | 13,3% | 5,5% | 0,4% | ||||
| Income before tax | 1 254 | 1 517 | -17% | 1 512 | -5 466 | -128% | ||
| Operating cash flow | -1 667 | -469 | 255% | -1 209 | -379 | 219% | ||
| Earnings per share | 0,01 | 0,01 | 0,01 | -0,05 | -120% | |||
Comments by the CEO
Our sales have been stable during the period with another positive quarterly result. We are not satisfied with our growth, which we would like to improve during the year. Our Rail business has been satisfactory with good intake of serial deliveries to several customers. New projects are discussed and our focus is to work more and tighter with our already established big partners, with whom we want to expand our business and become a more important business partner for them. We have after analyzing the business made the judgment that our product offering is most efficient in certain applications and we will therefore “drill deeper” in these applications and spend less time on the requests regarding our less efficient offerings. Being a small company it is important that we focus on the right things and especially in Rail Solutions where the projects are complex, project specific and always demanding major resources.
Our Traffic business has developed well in the US market, while it has been somewhat weaker in the Asian market. In the EMEA region the sales has been according to plan, but we intend to increase our efforts there when we launch our new UHF products which we judge will have a positive impact during the second half of the year. In Asia we have since February strengthened our presence with a new representative office in Malaysia. We can hereby offer a local presence favoring our established partners and at the same time gives us the opportunity to approach new partners and strengthen our sales network.
The innovation work will continue and we plan to launch more products on our new UHF family at the end of the year. In focus for our product innovation we have the customer’s need for security and safety, reliability, functionality, design, life cycle cost etc. Our judgment is that further launches will increase our addressable market and this is a fundamental requisite for increasing our growth.
The result is 1,6 MSEK (1,9), somewhat lower than last year, but one should then consider that a big part at that time was project sales to Alstom. I think we should be glad for the quarterly result even if we are no satisfied and want more for the future. Our liquidity has been negatively impacted by higher accounts receivable, stock and the fact that we now pay our supplier debts on time. We have during the period got increased confidence from our bank in the form of an increased revolving credit and our key ratios like solidity, and profits are improving continuously. As we have said before we are still in a change period and this will impose our stability and our quarterly figures during the quarters to come.
Our new UHF products will contribute with the major part of our growth the next few years to come even if we see opportunities to make selective acquisitions as a way to complement our product portfolio in Traffic Solutions with the purpose to increase the value and the attraction of our customer offering.
Jonas Svensson
CEO
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, jonas.svensson@tagmaster.com
About TagMaster
TagMaster is an application driven technology company that designs and markets advanced radio frequency identification (RFID) systems and information products for demanding environments. Application areas include vehicle access control, rail bound transportation and logistics, in order to increase efficiency, security, convenience and to decrease environmental impact. 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.