INVISIO (IVSO) Q2 2020 earnings summary

Executive summary

• H1 revenue rose 18% YoY to SEK 240.4m; Q2 revenue fell 10% to SEK 123.6m, partly because a ~SEK 11m shipment arrived in the U.S. two days late and was recognized in July.

• Q2 operating profit was SEK 24.4m, down 37% YoY; H1 operating profit was SEK 38.8m, down 3%.

• Strategy focused on law enforcement and security, Intercom, new geographic markets, and continued product and organizational investment.

• Short-term Covid-19 effects were limited; production continued, with some supply-chain and customer-administration delays.

Financial highlights

• Q2 gross profit was SEK 79.9m, down 8% YoY; H1 gross profit rose 15% to SEK 147.1m.

• Q2 EBITDA was SEK 26.8m, down 35%; H1 EBITDA was SEK 43.6m, down 4%.

• Q2 profit for the period was SEK 18.1m, down 37%; H1 profit was SEK 27.5m, down 8%.

• H1 operating expenses increased to SEK 108.2m from SEK 87.6m, reflecting organizational growth and strategic activities; 14 employees were recruited, mainly in R&D and Marketing/Sales.

Outlook and guidance

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

• Continued investment in product and organizational development, including R&D and sales, remained part of the 2020 strategy.

• Intercom follow-on orders were expected toward year-end after customer field tests and evaluations; initial orders from new Asian markets could lead to larger long-term business.

• Long-term gross margin expectation was 60%–65%, with quarterly variation from product mix and law-enforcement sales potentially carrying lower margins.