Axis reports strong growth in third quarter

Axis AB has published the interim report for January to September 2017. Axis continues to show stable growth and with close to SEK 2.3 billion in revenue, the company beats their previous highest revenue for a single quarter.

Third quarter results:

• Net sales increased during the third quarter by 13 percent to SEK 2,253 M (1,997). Net sales increased by 13 percent in local currencies
• Operating profit amounted to SEK 365 M (312), which corresponds to an operating margin of 16.2 percent (15.6)
• Net profit for the period amounted to SEK 278 M (233)
• Earnings per share amounted to SEK 4.01 (3.35)

Results for January - September 2017:

• Net sales increased during the period by 20 percent to SEK 6,399 M (5,327). Net sales increased by 15 percent in local currencies
• Operating profit amounted to SEK 808 M (632), which corresponds to an operating margin of 12.6 percent (11.9)
• Net profit for the period amounted to SEK 604 M (470)
• Earnings per share amounted to SEK 8.70 (6.76)

Ray Mauritsson, President of Axis Communications commented: "Axis continues to show stable growth. With close to SEK 2.3 billion in revenue, we beat our previous highest revenue for a single quarter. Foreign currency effects only had a marginal impact on sales and earnings. The strong performance was to large extent due to seasonally lower costs.

There was a stable sales trend in all regions with the exception of South America, where the financial situation remains strained, as well as the Middle East where the investment climate is restrained at present. Continued overheating in the global component market may have also caused some effects on deliveries and sales.

During the quarter, we were reminded of the importance of our efforts in relation to cyber security. This summer, it was noted how malicious code enabled the hacking of a large number of network cameras around the world. Axis and a number of other companies in the market had products, which were exposed to risk. Thanks to our efficient processes and excellent tools, we were able to act immediately and make the necessary updates so that our customers would not be impacted. Our work in this area is continually ongoing. It is a question of developing secure products, training our customers and having well worked-out processes in place when risk situations nevertheless arise.

Otherwise, continued development of new products and solutions remains in focus. For example, several innovations were unveiled at the ASIS security exhibition in Dallas in September. And last but not least, we can be very pleased with the excellent results from Axis’ customer survey, which was conducted earlier this year."