Axis Communications continues to see a strong performance in several emerging markets Axis: Year-End Report January-December 2014 The Fourth Quarter Net sales increased by 16 percent during the fourth quarter to SEK 1,504 M (1,299). Net sales increased by 7 percent in local currencies Operating profit amounted to SEK 199 M (166), which corresponds to an operating margin of 13.2 percent (12.8) Profit after tax amounted to SEK 156 M (117) Earnings per share amounted to SEK 2.24 (1.68) The board proposes a dividend of SEK 6.00, of which SEK 3.25 is an extra dividend (SEK 5.50 of which SEK 3.00 was an extra dividend. January - December Net sales increased by 16 percent during the period to SEK 5,450 M (4,717). Net sales increased by 12 percent in local currencies Operating profit increased to SEK 715 M (640), which corresponds to an operating margin of 13.1 percent (13.6) Profit after tax amounted to SEK 539 M (479) Earnings per share amounted to SEK 7.76 (6.89) President’s Message “Sales for the full-year 2014 increased by 12 percent in local currency. The turbulence in Russia and Ukraine continues to have a negative impact on sales in the EMEA region. Meanwhile, we continue to see a strong performance in several emerging markets. During the quarter, we saw falling inventory levels among distributors in the US. During the year, our offering was strengthened with new innovative network cameras and we also made important investments directed towards the various market segments. By taking a greater responsibility for the overall system, we further strengthen our position in relation to partners and end-customers. In the quarter, the organization grew by 74 new employees. For the full-year, the number of employees increased by 314 people. At year-end, the number of employees totaled 1,941. During the fourth quarter, one of Axis’ contract manufacturers was affected by a fire, which totally destroyed the production unit. Thanks to continually proactive work involving a number of subcontractors, the situation could be handled with a limited impact on sales.” Ray Mauritsson, President, Axis Communications.
Net sales increased by 19 percent during the first half-year The second quarter Net sales increased by 22 percent during the second quarter to SEK 1,355 M (1,114). Net sales increased by 20 percent in local currencies. Operating profit increased to SEK 188 M (127), which corresponds to an operating margin of 13.8 percent (11.4). Profit after tax amounted to SEK 139 M (96). Earnings per share amounted to SEK 2.00 (1.38). The first half-year Net sales increased by 19 percent during the period to SEK 2,484 M (2,096). Net sales increased by 18 percent in local currencies. Operating profit increased to SEK 260 M (216), which corresponds to an operating margin of 10.5 percent (10.3). Profit after tax amounted to SEK 191 M (162). Earnings per share amounted to SEK 2.75 (2.33). President’s message “Sales in the second quarter amounted to SEK 1,355 M. During the period, inventory levels increased at a number of distributors, particularly in the US. The EMEA region displayed a good performance with large variations between countries and continued turbulence in parts of Eastern Europe. Southern Asia recovered somewhat after a weak first quarter while Northern Asia showed stable growth. During the second quarter, we welcomed 76 new employees to the company and Axis now has 1,784 employees The two independent market research institutions IHS and TSR continued to rank Axis as the global market leader in network video in their yearly reports on the video surveillance market. We have continued to maintain a high rate of product releases and new recruitment. During the second quarter, we welcomed 76 new employees to the company and Axis now has 1,784 employees”. Ray Mauritsson, President The full report and slide presentation is available on: http://www.axis.com/corporate/investor/financial_reports.htm Invitation to telephone conference Time: Wednesday, July 9 at 10 a.m. Phone number: + 46 8-519 990 30 Participants from Axis AB will be: Ray Mauritsson, President, and Fredrik Sjöstrand, CFO. The presentation will be webcasted live at: http://financialhearings.nu/140709/axis/