XMReality AB (publ), Interim Report, April–June 2019

XMReality delivered sales growth of 37 percent for the second quarter of the year compared with the previous year and strong improvement in the gross margin to 87 (59) percent. Change was successfully implemented during the period in line with its strategy to increase subscription revenue.

The quarter: April–June 2019

• Net sales increased by 37 percent to SEK 2,993 thousand (2,186)
• Costs totaled SEK -11,997 thousand (-11,620)
• The net loss was SEK -7,585 thousand (-7 817).
• Net cash used in the period was SEK -4,233 thousand (-8,333) and the equity/assets ratio at the end of the period was 72.6 (79.4) percent.

Costs and the operating loss for the period are on par with the previous. The cash flow for the period decreased to SEK -4,233 thousand (-8,333).

The half year: January–June 2019

• Net sales increased by 45% to SEK 6,014 thousand (4,139)
• Costs totaled SEK -22,349 thousand (-22,777)
• The net loss was SEK -13,279 thousand (-15,120)
• Net cash used in the period was SEK -10,823 thousand (-15,907)

Billing rose by 41 percent compared to the first half of 2018 to SEK 7,505 thousand (5,343), of which approx. 80 percent was generated by software subscriptions. Total subscription charges* that have been billed but not yet recognized in income were up by 58 percent to SEK 5,526 thousand (3,495). Revenue from subscriptions with contracted automatic extensions, which are reported on a monthly basis, rose by 32 percent to SEK 785 thousand (593) at the end of the period.

Significant events, April–June 2019

• XMReality signed additional customer orders with a global engineering group.
• Pre-release edition of SaaS offered to small and midsize companies.
• Annual general meeting of shareholders in XMReality AB (publ) was held 25 April.

Significant events after the end of the quarter

• XMReality Business, a web-based offering targeting small and midsize companies, was pre-released online.

* XMReality subscriptions normally run for 12 months with automatic extension. They are billed in advance and recognized in income on a straight-line basis over the term of the contract. Revenue from sales of hardware and services is recognized after delivery is complete, which coincides with the billing date. Billed subscription charges that have not yet been recognized in income are reported on the balance sheet.

For more information, please contact:
Johan Castevall, CEO XMReality
Phone: +46 (0)73 356 04 81
E-mail: johan.castevall@xmreality.se

About XMReality Remote Guidance™

XMReality Remote Guidance is an AR-enabled knowledge sharing tool that lets you communicate with gestures, speech, chat and pointers with someone at a completely different place. It includes:

• A unique hands-overlay technology that lets you guide someone else’s hands—as if you were there.
• A web portal to manage teams and users, and to measure usage
• Integration through client-side API’s

About XMReality AB

XMReality AB (publ) develops and sells solutions that revolutionizes knowledge sharing through augmented reality (AR). The company is a market leader in remote guidance, which uses AR to guide onsite staff and enable them to resolve or prevent problems. XMReality’s customers are mainly global industrial companies, including ABB, Siemens Industrial Turbomachinery, Electrolux and Bombardier. XMReality is headquartered in Linköping, Sweden, and is listed on Nasdaq First North (ticker: XMR).
www.xmreality.com 

Certified advisor

XMReality’s Certified Adviser is Redeye AB

certifiedadviser@redeye.se

Phone: +46 (0)8 - 121 576 90

www.redeye.se

The information has been released by the above-mentioned contact person for publication on Friday Augusti 16, 2019, 08.30 am CET.