27 August 2018
IVISYS AB (‘IVISYS’) has today published the interim report for the period January to June 2018. Below is a summary of the report.
FIRST HALF YEAR (1 JANUARY 2018 TO 30 JUNE 2018)
- Revenue for the period was 3 679 (1 571) KSEK.
- Operating income was -2 354 (-3 424) KSEK.
- Earnings per share were -0.21 (-0.36) SEK.
- The equity ratio was 77.5 % (47.0 %).
SECOND QUARTER (1 APRIL 2018 TO 30 JUNE 2018)
- Revenue for the period was 1 738 (519) KSEK.
- Operating income was -1 591 (-2 108) KSEK.
- Earnings per share were -0.14 (-0.22) SEK.
– Earnings per share: Earnings of the period divided by 11 060 533, as of 30 June 2018.
– Equity ratio: Equity divided by total assets.
Figures in parentheses are numbers for the corresponding quarter the previous year.
IMPORTANT EVENTS DURING THE SECOND QUARTER OF 2018
• On April 23, IVISYS announced that the Company would be acquiring ICS Image Control Systems AB (“ICS”) by carrying out a targeted share issue, subject to approval at the 2018 Annual General Meeting. ICS is a profitable company active in quality control within the vision industry with customers in both Europe and the United States.
• On May 28, the Annual General Meeting of IVISYS was convened. A summary of the approved decisions is available on the Company’s website (www.ivisys.com).
• IVISYS AB acquired ICS Image Control Systems AB (name changed to IVISYS Sweden AB) during the quarter with effect as of May 28, 2018. The purchase price amounted to KSEK 7 192, of which SEK 1,000,000 was in cash and the remainder, KSEK 6 192, an issue of 1 200 000 new shares in IVISYS AB.
• Mikael Sjöholm was appointed CEO of IVISYS. Sjöholm had formerly been the CEO of ICS Image Control Systems AB, acquired by IVISYS in the second quarter of 2018. Jakob Kesje was appointed as the new chairman of the board of directors of IVISYS.
• At the end of May, IVISYS received an order from the Swedish subsidiary of Octapharma, the Switzerland-based pharmaceutical company. The order referred to a vision system that picks, inspects, and then sorts objects based on the results of the inspection.
• At the end of June, IVISYS received an order from the Danish company LM Wind Power A/S, the world’s largest manufacturer of rotor blades for wind turbines. IVISYS had been selected to develop a standardized and automated vision system that LM Wind Power A/S could use to inspect its rotor blades around the world.
• IVISYS received three additional orders in June, including orders from existing customers Atlas Copco and TC Tech Sweden AB.
Significant events after the end of the period
• On August 1, IVISYS announced that the Company had increased its working capital through a convertible loan from a group of private Swedish investors. The loan added SEK 5.0 million to the company’s cash position (excluding financing costs).
IVISYS CEO Mikael Sjöholm comments:
It has been an eventful quarter for IVISYS AB. The most significant event is that we have taken a strong step forward through the acquisition of ICS Image Control Systems AB (now called IVISYS Sweden AB). We have also received a number of larger orders from new and existing customers, including Atlas Copco.
The acquisition of IVISYS Sweden AB was approved in late May 2018. The day after the acquisition of IVISYS Sweden AB was completed, I became CEO of IVISYS AB and we expect that the acquisition will lead to an increase of approximately 50 percent in IVISYS AB’s revenue in 2018 and about 100 percent in 2019. The company IVISYS Sweden AB, which I founded eight years ago, is active in quality control within the vision industry and has customers in both Europe and the United States. IVISYS Sweden AB has carried out a large number of installations over the past eight years. IVISYS AB and IVISYS Sweden AB complement each other with their respective product portfolios, customer bases, and pipelines.
The former CEO of IVISYS AB, Jakob Kesje, who took over as Chairman of the Board of Directors, is still active within the company both as a high-level sales representative as well as in our investor relations affairs, with activities such as corporate presentations at investment fairs.
With IVISYS ApS in Denmark and IVISYS Sweden AB now together in one company, we have a very high degree of internal expertise backed by many years of experience covering the entire value chain, from patented software development to mechanical engineering and customer service. We are now extracting the various synergies between the companies to create an even stronger product and service offering. I am entirely convinced that our Danish and Swedish companies possess a combination of technical insight and management expertise that will ensure a promising future for the entire company.
As mentioned above, we received a number of new orders during the quarter. At the end of May 2018, we received an order from the Swedish subsidiary of Octapharma, a Switzerland-based pharmaceutical company with a large number of factories around the world. It is very gratifying to receive an order from a company like Octapharma, as the pharmaceutical industry is known to demand the very highest quality standards. We are looking forward to delivering a solution to Octapharma that fully meets their high expectations.
In June 2018, we received three more orders. The first was for a new customer, a company wanting to integrate our vision system into their production of all of their future printing machines. The second was a repeat order from TC Tech Sweden AB, and the third, an order for a service and support contract for Atlas Copco.
IVISYS has also received an order from the Danish company LM Wind Power A/S, the world’s largest manufacturer of rotor blades for wind turbines. IVISYS has been selected to design and present a standardized and automated vision system intended to be used for inspecting the company’s rotor blades across the globe.
Due to the recent acquisition and the new orders received, we have built a strong foundation, and I expect our development to be ticking strongly upwards over the next 12 months.
In August, we also took in new working capital from a group of private Swedish investors, as we want to continue to offer our customers competitive delivery times while increasing our revenue in a fast-phased manner. The convertible loan adds SEK 5.0 million to the company’s cash position, excluding financing costs.
We have chosen to increase our working capital through a convertible loan for two reasons. Firstly, over the course of one month following the acquisition of IVISYS Sweden AB, we received new orders worth SEK 3.0 million; this compared to a turnover of almost SEK 2.0 million for the entire year of 2017. Secondly, we expect the positive news flow to continue throughout 2018. However, this has not resulted in any significant changes in our share price, so to avoid unnecessary dilution among our existing shareholders caused by issuing new shares, we have chosen instead to increase our working capital through a loan agreement. If the loan is converted, an extraordinary meeting will be convened to formalize the possible targeted issue.
I expect the second half of 2018 will exceed this first half, both relevant to sales as well as profit, that have already shown a significant change from 2017 by 134 % increase in sales and improved result by 31 %. The expectation is also that by the 3 quarter of 2018 we will be able to give a more detailed guidance for our future results.
Finally, I would like to thank the Board for its confidence in allowing me to lead IVISYS onwards and upwards on a path of continuous growth.
Mikael Sjöholm, CEO of IVISYS AB
For a full interim report (only in Swedish), please see: https://investor.ivisys.com/interim-reports.
Sedermera Fondkommission is Certified Adviser to IVISYS.
FOR MORE INFORMATION, PLEASE CONTACT:
Jakob Kesje, Chairman IVISYS AB
Phone: +45 20 22 60 10
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 27 August 2018.
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.