In This Article:
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Order Intake: Exceeded SEK500 million for the first time in a single quarter.
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12-Month Rolling Order Intake: Approximately SEK1.5 billion.
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Revenue: SEK350 million, highest ever for a third quarter.
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Year-to-Date Revenue: SEK1,212 million.
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Order Book: Valued at almost SEK870 million, with 80% expected to be delivered within 12 months.
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Inventory: High inventory of standard products valued at around SEK300 million.
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Gross Margin: Slightly lower due to product mix, including low-margin radio systems.
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Operating Expenses (OPEX): Approximately SEK145 million, stable trend with increases due to R&D and sales personnel.
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EBIT Margin: 16.3% for the quarter, 17.1% year-to-date.
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Cash Flow: Very strong, influenced by sales invoiced late in the second quarter with payments received in Q3.
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Major Order: SEK170 million order from the US Department of Defense for headsets.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Invisio AB (FRA:ICQ) reported one of its strongest quarters with an order intake exceeding SEK500 million, marking a record for a single quarter.
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The company achieved its highest-ever third-quarter revenues at SEK350 million, despite the typical impact of vacation periods in Europe.
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Invisio AB's order book is robust, valued at nearly SEK870 million, with 80% expected to be delivered within the next 12 months.
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The company maintains a high inventory of standard products valued at around SEK300 million, allowing for speedy delivery of volume orders.
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Invisio AB anticipates benefiting from increased military spending by NATO countries from 2025 onwards, which aligns with its growth strategy.
Negative Points
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Gross margins were slightly lower this quarter due to product mix, including older products with lower margins and third-party sales.
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Operating expenses increased, primarily due to hiring more personnel in R&D and sales, which aligns with the company's growth strategy but impacts short-term profitability.
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The company faced a cyber incident in the UK, leading to one-off costs in the second quarter.
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Net financials were negative in the quarter due to currency fluctuations, despite having a net cash position.
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There is a potential risk of delivery delays if customers are not ready to receive products, which could impact revenue recognition in the short term.
Q & A Highlights
Q: Was 80% of the order book ready to be delivered within 12 months? A: That's approximately correct. A good part of the existing order book will be delivered in the fourth quarter, depending on customer requirements and readiness to receive the goods. - Lars Hoejgaard Hansen, President, Chief Executive Officer