Micro Systemation (MSAB) Q1 2025 earnings summary

Executive summary

• Q1 revenue reached a record high, with organic growth of 0.2% and total growth including currency effects at 1.3%.

• XRY Pro is now the best-selling product, accounting for 30% of sales, with strong uptake across all regions.

• Positive customer response to new product launches, including UNIFY Collaborate and Frontline Mk4 Kiosk.

• Continued investment in product innovation and R&D, focusing on digital forensics and customer support.

• Balance sheet remains strong, supporting ongoing investments and a positive outlook.

Financial highlights

• Net sales for Q1 were SEK 94.1 million, up 1.3% year-over-year, with rolling 12-month sales at SEK 406 million.

• Gross margin remained high at 93.8%, with a 92% target for 2025 reaffirmed.

• Operating profit improved to SEK -1.2 million from SEK -8.7 million, with an EBIT margin of -1.3%.

• Cash flow from operating activities was SEK -3.0 million, impacted by restructuring reserves and investments.

• Consultants' costs were three times higher than Q1 last year due to temporary staffing.

Outlook and guidance

• Management expects continued sales growth, driven by strategic investments, product improvements, and strong market potential in APAC and EMEA.

• Delayed projects, especially in the U.S., are expected to contribute to future quarters as market conditions stabilize.

• Ongoing focus on innovation, customer support, and leadership in digital forensics.

• Continued investments will be visible in both CapEx and OpEx, with further hiring mainly in R&D.