Q3 2025 Micro Systemation AB (publ) Earnings Call Transcript
Key Points
- Micro Systemation AB (LTS:0FBM) reported a record sales quarter with recognized revenue of SEK147 million, representing a net growth of 27% and FX adjusted growth of 35%.
- The company achieved its yearly sales target for XRY Pro in Q3, indicating strong market interest and demand for this product.
- There is significant growth potential in the APAC region, which has shown strong performance this quarter and is expected to continue growing.
- The company maintains a debt-free balance sheet, providing a stable platform for future growth.
- Investments in product development, such as the new 'brute storm surge' functionality, have been well-received by the market, enhancing data extraction capabilities.
- The US market has not met expectations due to budget cuts and administrative confusion, impacting investments from federal government customers.
- The ongoing US federal government shutdown poses a risk of delaying business in Q4, affecting key customers.
- Gross margin for the quarter was negatively impacted by a one-off inventory write-down of SEK4.1 million.
- The strong Swedish krona has slightly hurt revenue, as approximately 95% of the company's revenue is in foreign currencies.
- Personnel costs have increased slightly due to long-term investments in staff, which constitute approximately 75% of operating expenses.
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(audio in progress) And we are fulfilling also our engagement with the military and the defense sectors where we see some interest and we have good discussions. In APAC, we have a very strong growth in this quarter. We also see that as a coming market for the next coming quarters.
There are big potential all over the region and a lot of interest in our products. In the US, we have had very high expectations with Mr. Trump coming in, and we thought we would invest a lot in border control which actually did and -- but also in the different federal governments, but we have not met the expectations in the US when it comes to investments. It's been budget cuts and also a lot of confusion in the administration with the people that have been forced to leave and difficult to understand if they have budgets and if they were allowed to buy things and so on.
So it's been a little bit of disappointment in the US. Still, we have performed better than last year over the quarter. So it's not all bad, but
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