INVISIO (IVSO) Q1 2019 earnings summary

Executive summary

• Q1 revenue was SEK 66.8m, down 21% YoY and 24% in comparable currencies, largely as a major procurement shifted to Q2.

• Profitability fell amid lower sales and increased growth investment; after quarter-end, a new U.S. customer placed a SEK 111m order, with most delivery expected in Q2.

Financial highlights

• Gross profit was SEK 40.7m vs SEK 50.1m; gross margin rose to 60.9% from 59.6%, supported by a higher share of direct sales.

• EBITDA was SEK 3.9m vs SEK 19.5m; operating profit was SEK 1.5m vs SEK 18.5m, and net profit was SEK 1.5m vs SEK 13.8m.

• EPS was SEK 0.03 vs SEK 0.31.

• Order inflow was SEK 59.0m vs SEK 58.0m; closing order book was SEK 48.3m vs SEK 127.2m.

Outlook and guidance

• Most of the SEK 111m U.S. order is expected to be delivered in Q2; inventory had already been built, and further orders from the new customer were considered likely.

• Active customer projects reached a record level; investment in existing and new product categories was at its highest rate, with several product launches planned.

• Intercom market penetration was expected to generate more orders later in 2019; new-market special-forces orders could lead to a larger breakthrough order.

• Strategic targets were average annual sales growth of 20% and an operating margin of at least 15%.