Interim Report January 1 – March 31, 2013 Generic Sweden AB (publ)
May 14, 2013
First Quarter of 2013 (compared with the same period last year)
- Net sales totaled 35.1 MSEK (44.5 MSEK).
- Operating income amounted to 1.4 MSEK (3.2 MSEK)
- Profit after taxes amounted to 1.4 MSEK (3.1 MSEK).
- Earnings per share amounted to 0.11 SEK (0.25 SEK).
- Cash flow from operating activities amounted to 7.9 MSEK (5.9 MSEK).
Comment from the CEO:
A slow start to the year
The first quarter performed weaker than expected. Both revenue and operating income declined compared with the same quarter last year.
The majority of the decline is attributable to the Consulting business and is due in part to the fact that two major consulting assignments for the Swedish Defense Materiel Administration (FMV) in 2012 were completed in December.
In the short term, we have not been able to offset the decline in volume with new consulting assignments. However, my assessment is that, in the long term, there is a significant need for Generics’ expertise in critical communications, where extremely high reliability is required.
As previously announced, our associated company, Network Enabling System Partner AB (NESP), signed a framework agreement with FMV regarding system engineering and lifecycle support for the Swedish Armed Forces’ command and control systems. The agreement is for three years, with an option to extend it for an additional two plus two years. The potential value for NESP is estimated at approximately SEK 350 million, and work will begin during the second quarter. The telecom business continues to report strong profitability. Although operating profit for the first quarter was slightly lower than in the corresponding period last year, the variance falls within the range of normal fluctuations in traffic volume. We have also seen in the past that revenue—and consequently operating profit—varies from quarter to quarter.
For further information, please contact:
Fredrik Svedberg, President and CEO ……. tel 08-601 38 00, email: fredrik.svedberg@generic.se
Anders Hansson, CFO …………………………tel 08-601 38 00, email: anders.hansson@generic.se
Note
This information is required to be disclosed by Generic Sweden pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 4:00 p.m. on May 14, 2013.
This is Generic
Generic Sweden AB operates in the consulting and telecommunications sectors, focusing on critical communications in areas where extremely high reliability is required. The consulting division provides services and solutions for command and communication systems to the defense sector, government agencies, and industry. The telecommunications division is a specialized telecom operator that operates its own radio network and offers messaging services for critical situations under the Minicall and Messit brands. The Group reported revenue of SEK 164 million in 2012 and has just over 70 employees. The stock is traded on NASDAQ OMX First North Premier under the ticker symbol GENI. Remium Nordic AB is the company’s Certified Advisor.
Further information about the company is available at www.generic.se