IVISYS AB publishes interim report for the period of January to March 2018

IVISYS AB publishes interim report for the period of January to March 2018

Press release
IVISYS AB
556998-4981
14 May 2018

IVISYS AB (‘IVISYS’) has today published the interim report for the period January to March 2018. Below is a summary of the report.

First quarter (1 January 2018 to 31 March 2018)
– Revenue for the period was -1 941 (1 052) KSEK.
– Operating income was -601 (-1 317) KSEK.
– Earnings per share were -0.06 (-0.14) SEK.
– The equity ratio was 89.5 (89.2) %.

Definitions
– Earnings per share: Earnings of the period divided by 9 860 533, as of 31 March 2018.
– Equity ratio: Equity divided by total assets.
Figures in parentheses are numbers for the corresponding quarter the previous year.

Significant events during the first quarter

– IVISYS received an add-on order from GKN Sinter Metals in Italy on March 28. The order concerned an upgrade of a hardware component. The order value was approximately EUR 10,000 and is expected to affect IVISYS’s earnings for Q1 2018.

– In early March 2018, IVISYS was granted a patent in Canada for a method of finding the nearest neighbor. The patent includes a unique and extremely fast way to search large databases.

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

– IVISYS received an order from GKN Sinter Metals in Italy on January 12, 2018. The order covers a complete system for automated flaw detection of metal parts in high-speed. The total order value is more than EUR 100,000 and is expected to affect IVISYS’s revenue 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 complex moving metal objects. The total order value is approximately EUR 40,000 and is expected to affect IVISYS’s revenue for Q1 2018.

Significant events after the end of the period

– On April 27, 2018, IVISYS called its Annual General Meeting, which will be held on May 28, 2018. A description of the proposed resolutions is available on the company’s website (www.ivisys.com).

– IVISYS announced, on April 23, 2018, that the company, on condition of the approval of a target share issue at the 2018 AGM, will acquire ICS Image Control Systems AB (“ICS”). ICS is a profitable company active in quality control within vision, supplying customers in both Europe and the United States.

CEO Jakob Kesje comments

These are exciting times for IVISYS. Completing the merger with ICS Image Control Systems will give both parties a serious boost in our shared growth ambitions. From the perspective of IVISYS, ICS Image Control Systems can contribute a range of valuable components such as: well-established relationships with big corporations as satisfied customers (e.g. Scania, Nobel Biocare, Tetra Pak, IKEA och Nolato); in-depth technical expertise with approximately 200 installations during last 8 years; an additional number of proven standard vision inspection systems complimenting IVISYS’ existing product range; a solid pipeline of projects; and seasoned employees with more than 60+ years of combined experience.

While ICS contributes a lot of value to IVISYS, as described above, the merger is beneficial for both parties. ICS will, as a part of the combined company, benefit from access to the unique IVISYS IDE software based on our patents, instead of having to rely only on limited third-party software.  Moreover, the financial base of IVISYS will enable faster sales-growth of the standard products ICS brings to the joint combined company.

With these synergies in mind, it is our expectation that we will soon start to see a more rapid growth of our topline, as well as healthy development for our bottom line, given that we can control our cost of growth better.

The impact from the merger with ICS will only be partly visible in Q2 2018, since the official date for the acquisition is 28 May, when the Annual General Meeting confirms the transaction and consideration is transferred to the sellers.

The numbers for the first quarter of 2018 show that we have doubled our turnover from last year and halved the loss, which has been sparked by a strong January 2018, in which we could even post a positive result for the month. Already in Q1 2018 we have almost surpassed our topline of 2017. Again we saw orders from existing customers in Q1, assuring us that the customers are pleased with what we deliver. Economically, we maintain a good balance in our costs and we are now starting to allocate more ressources towards deliveries and less to development. After that, the balance should start to tip in the direction of  profitability.

When looking out on the outlook of the rest of 2018, the combined company will, when the acuisition is finalized, aim for higher top line results than previously, and  optimize the output of our combined ressources and order pipeline. It goes without saying that I expect the financial result for 2018 will be much better than last year, and hopefully we will be able to start publishing guidelines with the Q3 report.

Jakob Kesje, CEO IVISYS AB

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 14 May 2018.

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 utilising 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.