IVISYS AB announces year-end report for January-December 2017

Press release
IVISYS AB
556998-4981
26 February 2017

IVISYS AB (‘IVISYS’) has today published its interim report for the period January to December 2017. Below is a summary of the report.

12 months (1 January 2017 to 30 December 2017)

– Revenue for the period was 2 349 (400) KSEK.
– Operating income was -7 754 (-10 680) KSEK.
– Earnings per share were -0.77 (-1.25) SEK.
– The equity ratio was 90 % (85 %).

Fourth quarter (1 October 2017 to 31 December 2017)

– Revenue for the period was 32 KSEK (183) KSEK.
– Operating income was -2 967 (-3 213) KSEK.
– Earnings per share were -0.26 (-0.41) SEK.

Definitions

Earnings per share: Earnings for the period divided by 9 860 533 shares as 31 December 2017.
Equity ratio: Equity divided by total assets.
Figures in parentheses are numbers for the corresponding quarter the previous year.

IVISYS CEO JAKOB KESJE COMMENTS

‘The financial year of 2017 has come to an end and it is satisfying to note that we made great progress during 2017, including receiving orders from leading global manufacturers. However, the Q4 result did not meet our expectations and therefore it was gratifying to announce that we achieved a profitable January 2018, with a turnover of 1.4 MSEK, which corresponds to approximately 58 percent of the full year’s revenue for 2017.

As I mentioned in the previous quarterly report, IVISYS’s overall development is positive, which is also confirmed by the interest I find when I speak with existing and potential customers. At the beginning of October 2017, the board decided to carry out a rights issue of approximately SEK 9.9 million, authorized at the Extraordinary General Meeting held on 2 October, 2018. Interest in the rights issue was large and it was over-subscribed, which has also been the case in our previous rights issues.

When I look back on the financial year of 2017 and the period up to now, the company has received a number of breakthrough orders from some major customers. It is our ambition that these customers will return to us with significantly larger orders to meet their demand for vision inspection systems at more locations. Through the recently completed rights issue, we are financially prepared for such a scenario and it feels well to be prudently prepared.

Moreover, we are working on developing a SaaS (Software as a Service) product, which will provide IVISYS with sales opportunities amongst so-called integrators, which are companies specializing in providing turnkey production systems to manufacturers. By using IVISYS’s vision software in combination with existing inspection cameras and other similar equipment, our software can provide a high degree of flexibility with regards to integration with hardware from many manufacturers. There are thus great opportunities to increase IVISYS’s sales through this way. We also expect that the sales margin will be attractive when the development is complete.

Shortly after the end of the quarter, we received two new orders: one from a compressor manufacturer in Belgium and another from GKN in Italy. Both orders were follow-up orders in cases where IVISYS has previously delivered solutions that have proved satisfactory to the customers. Follow-up orders of this nature show that we can expect more orders from our existing customers as customer satisfaction is high. As part of our long-term strategy, we aim to expand our global footprint along with our international customers. Therefore, it is very pleasing to see that a pattern of repeated orders is now beginning to emerge. It also testifies to the fact that our systems significantly reduce quality related problems, making our solutions worth investing in for manufacturers.

In addition, the fact that we have taken orders from smaller companies shows that our system is interesting for manufacturers of shorter series as well as in large-scale mass production.

I am looking forward to the financial year of 2018. We estimate that all the pieces are in place for a successful year through established partnerships with global groups, a strengthened financial situation, scalable system solutions and, as previously mentioned, our strong earnings in January. Altogether, this creates a strong foundation for a possibly profitable Q1, which would be an important milestone for our business.’

Jakob Kesje, CEO IVISYS AB

IMPORTANT EVENTS AFTER THE END OF THE PERIOD

– On February 8, IVISYS announced that the company had a profitable month in January 2018, with a revenue of 1.4 MSEK. The revenue is significant in comparison with the unaudited revenue for the 2017 financial year, which was totally 2.4 MSEK.

– IVISYS received an order from GKN Sinter Metals in Italy on January 12, 2018. The order concerned a complete system for automated, high-speed flaw detection of metal parts. The total order value was more than EUR 100,000 and is expected to affect IVISYS’s earnings for Q1 2018.

– IVISYS announced, on January 10, 2018 that the company had received an additional order from a compressor manufacturer in Belgium. The order concerned a customized 3D sensor solution for the inspection of moving complex metal objects. The total order value was approximately EUR 40,000 and is expected to affect IVISYS’s Q1 2018 results.
IMPORTANT EVENTS DURING THE FOURTH QUARTER OF 2017

– On October 2, 2017, an Extraordinary General Meeting was assembled in IVISYS AB. The EGM resolved to authorize the board to decide on an issue of shares and/or warrants in the period until the next Annual General Meeting, on one or more occasions and with or without providing shareholders with preferential rights.

– IVISYS announced that the board, with the approval of the Extraordinary General Meeting on October 2, 2017, decided to carry out an issue of new shares with preferential rights for existing shareholders. If fully subscribed the share issue would provide the company with approximately SEK 9.9 million before issue costs.

– On 27 October, 2017, IVISYS filed a patent application to the Swedish Patent and Registration Office.

– On 31 October 2017, the subscription period of IVISYS share issue ended. The issuance was subscribed to approximately SEK 12.5 million, corresponding to a subscription ratio of approximately 127 percent. Through the rights issue, IVISYS was provided with approximately SEK 9.9 million before issue costs.

IMPORTANT EVENTS DURING THE THIRD QUARTER OF 2017

– On 7 August 2017, IVISYS announced that the Company had received a follow-up order from a compressor manufacturer in Belgium, a market-leading supplier of highly efficient industrial compressors, gas and process compressors and expanders. The order had a value of more than EUR 70,000 and contributed to IVISYS Q3 results.

IMPORTANT EVENTS DURING THE SECOND QUARTER OF 2017

– On April 27, 2017, IVISYS announced that the company had received an order for an inspection system from a company that manufactures and sells food packaging. The order had a value of approximately EUR 40,000.

– On May 27, 2017, IVISYS announced that the company had developed a new version of the vision system IVISYS Pro. The new software version – IVISYS PRO III – contains a new Graphical User Interface, micron level precision, auto camera calibration, barcode scanning and many other features that enable IVISYS systems to handle even more complicated controls.

– IVISYS announced, on 26 June, 2017, that the company had received an order from GKN Sinter Metals for an inspection station to be delivered to the United States for a division under the GKN Group, a global supplier to the automotive industry with more than 150 factories and over 58,000 employees globally. The order concerned an integrated vision system and a flaw detection inspection station. The order value was more than 75,000 EUR.

– On June 27, 2017, the exercise period of the company’s warrants of series TO 2 expired. Through the of TO 2 warrants, 51,835 shares were issued, and IVISYS was provided with approximately SEK 0.2 million before issue costs, corresponding to a subscription ratio of approximately 10.4 percent.

– On 30 June, 2017, IVISYS announced that the company had received an order from Luk Schaeffler, one of the leading global suppliers to the automotive industry, headquartered in Germany. With over 86,000 employees worldwide, Luk Schaeffler is an important player in the company’s key market and has a strong track record of being a first mover within its industry. The order had a value of more than 15,000 EUR.

IMPORTANT EVENTS DURING THE SECOND QUARTER OF 2017

– On 18 January, 2017, the company announced a feasibility study order from a compressor manufacturer in Belgium was been received. The order had a value of less than EUR 10,000.

– On 22 February, 2017, IVISYS announced that its subsidiary IVISYS ApS had its first profitable month in January 2017. Revenue for January ended at 727,000 SEK, while the unaudited earnings amounted to an EBIT of 73,000 SEK.

– On 28 February, IVISYS announced that the company had received an order for an automated solution for classification of fur from Kopenhagen Fur, a large fur auction house. The order had a value of EUR 20,000.

For a full interim report (only in Swedish), please see: https://www.ivisys.com/investor/financial-reports/

CERTIFIED ADVISER

Sedermera Fondkommission is Certified Adviser to IVISYS.

FOR MORE INFORMATION, PLEASE CONTACT:

Jakob Kesje, CEO IVISYS AB
Phone: +45 20 22 60 10
E-mail: jk@ivisys.com

This information is information that IVISYS AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above on 26 February 2017.

ABOUT IVISYS

IVISYS provides vision-based, quality inspection solutions for the industry, which can replace both manual and mechanical quality control. IVISYS’ unique, patented solutions make it possible to perform complex quality control while keeping the existing production flow unaffected. Unlike existing solutions, IVISYS provides solutions that make it possible to perform complex surface controls, control measurements on the micron level, and control multiple components in one instant process. The solutions are based on IVISYS’s patented image data processing, which differs fundamentally from the conventional processes used within vision systems today. IVISYS is capable of utilizing high-resolution cameras in the company’s image processing, while at the same time processing image information faster than the company’s competitors. The solutions offered have an average payback period of approximately six months for customers currently relying on mechanical or manual control.

IVISYS is the winner of Frost & Sullivan’s 2017 Entrepreneur of the Year in Europe Award.

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