Release Date: July 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Micro Systemation AB (LTS:0FBM, Financial) reported a slight increase in sales, with an 8% growth when adjusted for currency fluctuations.
- The company has seen good growth in the APEC region and anticipates continued potential in this market.
- The launch of the new product, Unifi, has resulted in the first contract in Canada, with a promising pipeline in the US.
- Investments in product development, particularly in XY Pro and iOS FFS, have enhanced capabilities, making them top-selling products across regions.
- The company maintains a strong balance sheet, which supports future growth and strategic investments.
Negative Points
- Currency headwinds have negatively impacted revenue outcomes, with 95% of revenue being in foreign currency.
- Sales in the EEA and Americas regions performed below expectations due to delayed orders and political uncertainties.
- Operational costs have increased due to investments in marketing and consultancy, although these are expected to decrease as consultants are replaced by permanent staff.
- There is a noted shift in budget allocations from administration to defense, affecting sales in certain regions.
- The company experienced a negative cash outcome for the first half of the year, although it expects improvement in the second half.
Q & A Highlights
Q: Can you provide an overview of the sales performance for the quarter?
A: Peter Ya, CEO, stated that the quarter was stable compared to last year, with sales at about 80.5%, a slight increase from the previous year. Adjusting for currency headwinds, growth was approximately 8%. A significant order was delayed due to supplier issues, but overall sales were better than reflected in the report.
Q: How did different regions perform in terms of sales growth?
A: Peter Ya, CEO, mentioned that APEC showed good growth and potential, while EEA sales were as expected, impacted by a large order. The US saw the first contract for their new product, Unifi, with a promising pipeline.
Q: What are the key product developments and their market reception?
A: Peter Ya, CEO, highlighted investments in XY Pro, which now has enhanced Android and iOS capabilities, making it a top-selling product. Unifi, launched last quarter, secured its first contract, and the MK4 Kiosk has been well-received, with potential for growth.
Q: What financial impacts were noted due to currency and supply chain issues?
A: Tony, CFO, reported that 95% of revenue is in foreign currency, impacting outcomes. A significant order was delayed due to supply chain issues, but the end customer sent the order to a partner, expecting it soon. Adjusted growth was 8% despite these challenges.
Q: What are the expectations for the second half of the year?
A: Tony, CFO, expects upgrades to the Mark 4 kiosk to drive increased costs, but gross margins should remain around 92%-93%. The company anticipates stronger quarters in the second half, improving cash positions and supporting growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
