Things seem to looking great for Axis. A good performance in all three regions contributed to sales growth of 23 percent during the third quarter. Favorable product mix, seasonally lower costs and evenly distributed sales during the quarter contributed jointly to strong earnings and cash flow.
Things seem to looking great for Axis. A good performance in all three regions contributed to sales growth of 23 % during the third quarter. Favorable product mix, seasonally lower costs and evenly distributed sales during the quarter contributed jointly to strong earnings and cash flow.
The third quarter
- Net sales increased by 23 % during the third quarter to SEK 1,322 M ($ 204.3M). In local currencies, net sales increased by 27 %.
- Operating profit increased to SEK 258 M ($39.9 M), which corresponds to an operating margin of 19.5%
- Profit after tax amounted to SEK 200 M ($30.9M)
- Earnings per share amounted to SEK 2.88 ($0.44)
January - September
- Net sales increased by 14 % during the period to SEK 3,418 M ($528M). In local currencies, net sales increased by 19 percent.
- Operating profit increased to SEK 474 M ($73.2M), which corresponds to an operating margin of 13.9 %
- Profit after tax amounted to SEK 362 M ($55.9M)
- Earnings per share amounted to SEK 5.21 ($0.8)
The period was characterized by very strong growth in Asia and EMEA, while demand in the Americas remains stable. In September, an access control system was presented. By combining our technical know-how and strong partner network, we are now broadening our offer within network solutions. The offer has been well-received by the market and is an important step in our long-term growth strategy. The release will initially take place in the US but the product will also be introduced in other markets in the future.
During the period, we continued to note a stable trend in the number of new project inquiries. We estimate that the underlying growth is in line with previous quarters. Meanwhile, we are focusing strongly on taking advantage of existing opportunities within network solutions through continued recruitment, a high rate of innovation and by strengthening our partner network.
Release of Physical Access Control
In September, an open network system for physical access control was introduced. With Axis' comprehensive knowledge in network technology, the access control offer is a natural complement to our existing product portfolio and creates unique integration possibilities for partners and end users.
AXIS A1001 Network Door Controller meets demands in smaller installations as well as in larger and more complex installations. The system is the first IP-based access control solution on the market featuring an open platform.
Physical access control is well-suited to Axis' overall strategy. The solution will be offered through a well-established network of distributors and partners. The release is an important step in order to take advantage of existing and future possibilities within security solutions. Meanwhile, Axis will continue working to maintain and strengthen its market-leading position in network video. Initially, the system will only be offered in the American market.
Strengthened offer in network video
During the third quarter, a number of new network video products reached the market. AXIS M7016 and P7216 video encoders enable cost efficient and flexible migration from analogue to network surveillance. In September, AXIS Camera Companion 2.1 was released. The new software supports 360° overview surveillance as well as simplified handing in connection with increased data storage needs. Axis' successful M30 series was expanded with the AXIS M3026-VE, which is also adapted for outdoor surveillance and features extended support for smart video applications.