INTERIM REPORT FOR THE PERIOD JANUARY – SEPTEMBER 2020
SIGNIFICANT EVENTS DURING THE QUARTER
SIGNIFICANT EVENTS AFTER THE END OF THE INTERIM PERIOD
FINANCIAL DATA AND KEY INDICATORS
Amounts in SEK thousands unless otherwise stated
|Q3||Q3||Q1 - Q3||Q1 - Q3||Full-Year||12 mth|
|Net sales||23 175||27 521||69 855||53 111||91 927||108 671|
|Net sales growth, %||-15.8%||63.6%||31.5%||-1.1%||35.9%||62.1%|
|Gross margin, %||79.8%||89.2%||84.1%||82.5%||86.4%||86.8%|
|Operating profit/loss||-2 187||3 259||-3 167||-11 883||651||9 367|
|Operating margin, %||-9.4%||11.8%||-4.5%||-22.4%||0.7%||8.6%|
|Cash flow from the operating activities||480||-3 439||9 681||-14 734||-477||23 938|
|Cash and cash equivalents||71 294||60 908||71 294||60 908||73 676||71 294|
See the Financial Glossary for definitions.
INVITATION TO PRESENTATION OF THE INTERIM REPORT
In connection with today’s interim report, Precise invites investors and the media to an informational conference call.
The conference call starts at 10:00 AM (CET).
Link to all public information such as link to webcast and participant number for the telephone conference:
To take part, click on the link above to listen to and follow the presentation online, or call one of the following numbers to follow by phone.
You will be asked to state your name when you connect to the conference call and there will be an opportunity to ask questions in Swedish. The conference call will be held in English.
Participating on behalf of Precise:
Stefan K Persson, CEO
Ulrik Nilsson, CFO
I am delighted to be able to present another quarter for Precise with a continued positive result at EBITDA level. We are making major inroads in the field of Digital Identity, where YOUNiQ for secure and convenient access to facilities is being used thousands of times every day in more than 40 installations around Sweden.
Net sales in the third quarter were, as expected, in line with the previous quarter and totaled SEK 23.2 million. If we look at the interim period as a whole, net sales increased by 31.5% to SEK 69.9 million. The increased income during the interim period combined with good cost control has resulted in a stable financial position, enabling continued investments in our prioritized areas.
We are continuing to see increased demand for YOUNiQ from more and more actors, and customers are requesting additional installations of our access product, including Temporary Space Nordics. We signed a partnership agreement during the quarter with RCO Security for the integration of YOUNiQ with their access system, enabling sales of YOUNiQ to their customers. After the end of the quarter, YOUNiQ was integrated with Telcred’s access system, an open, cloud-based platform. Zynka Group is the first customer to use YOUNiQ together with Telcred, with the hardware being supplied by Axis Communication. Integrations with different suppliers’ systems are in line with our strategy, as partnerships with platform suppliers and security companies give us accelerated access to a bigger customer base.
Another important element of our sales and marketing strategy in the field of access is direct sales. We continued to strengthen our sales force during the quarter. In Sweden alone, we have identified an addressable market worth around SEK 1 billion by 2025. We are well positioned to seize the opportunities presented by the steady growth in demand.
In the Mobile area, we continue to see our product being integrated into devices from leading OEM manufacturers, e.g., Samsung. We are continuing to increase our share of the value chain, by assuming greater responsibility for areas such as pre-processing, in order to strengthen joint positions together with our partners. There is still high demand for optical sensors, which are gaining ground in the medium- and high-price segment, where Precise has a stronger position.
As we expected, none of the card issuers have as yet produced smart cards in any significant volumes. We are seeing a slight increase in activity regarding smart cards in the wake of Covid-19. As banks now prepare for commercial launches, we expect modest volumes to be produced over the next year. Precise is standing poised to capitalize on this market.
With stable income from Mobile, we continue to invest in the field of Digital Identity, where we see major market potential for access. We are confident in our efforts to be the preferred supplier of identification software for secure and convenient identification, where you are the key.
Stefan K Persson, CEO
This information was distributed by MFN https://www.mfn.se/