January - December
- Net sales increased 24.5 percent to SEK 301.8 (242.4) million (25.5 percent in local currencies).
- EBIT for the year amounted to SEK 68.9 (58.5) million.
- The EBIT margin reached 22.8 (24.1) percent (23.2 percent in local currencies).
- Profit after tax amounted to SEK 53.0 (45.4) million.
- Earnings per share were SEK 2.88 (2.47).
- Cash flow from operating activities amounted to SEK 47.8 (52.2) million.
- Cash and cash equivalents and short-term investments amounted to SEK 127.4 (123.2) million at year-end.
- The Board of Directors proposes that the Annual General Meeting decides on the distribution of SEK 2.2 (2.2) per share.
- Net sales increased 17.9 percent to SEK 84.8 (71.9) million (22.0 percent in local currencies).
- EBIT amounted to SEK 16.9 (21.3) million.
- The EBIT margin reached 19.9 (29.6) percent (21.3 percent in local currencies).
- Profit after tax amounted to SEK 14.0 (17.1) million.
- Earnings per share were SEK 0.76 (0.93).
- Cash flow from operating activities amounted to SEK 50.6 (16.2) million.
Comments from the CEO
MSAB helps law enforcement agencies to become more effective in their efforts to fight crime. We do this successfully, so successfully in fact that we can for the 13th year in a row report increased sales with satisfactory profitability. This year we can also report new records for sales and earnings.
For whole-year 2017, sales grew 25 percent to SEK 301.8 (242.4) million. EBIT increased to SEK 68.9 (58.5) million, corresponding to an EBIT margin of 22.8 (24.1) percent. During the year, we made significant investments, primarily in our products and markets.
A few years ago, there were some questions about whether phones would become so secure that there was a risk that market growth for mobile forensic solutions could decline. The fact is that more and more digital devices are locked down harder by various types of encryption and other security measures. That suppliers of digital devices want to protect their users' data is natural and commendable - but not new. Various types of protection were already in place in 2003 when we launched the first version of XRY.
In light of the above reasoning, we can conclude that MSAB will continue to infuse the market with innovative solutions that attract new and existing customers. For us, it is just as important today as it was in the past to continue to lead development in how investigating authorities can access and manage information in the devices that police are confiscating.
MSAB's products can access information in more phones, apps, and other types of products than ever before. And we are successful in educating the police in how they should handle the phones during the early stages of investigation. Best practices applied reduce the risk of phones being erased remotely and/or locked down so hard that it becomes extremely time consuming to get past the safeguards.
The world is becoming digitalised at an ever-increasing pace. Few things have changed society as rapidly as smart phones. Now we see the next wave of digitalisation in everything from smart watches, connected refrigerators, self-driving cars and drones. We are still in the early stages of the IoT (Internet of Things), where everything is connected thus leaving a multitude of digital traces that are highly valuable in criminal investigations.
During the year, MSAB has successfully added different types of IoT devices. We have already developed solutions for mobiles, cloud data, USB memories, smart watches, GPSs, automobiles, smart TVs and drones. Drones can be used in many ways, for transport of illicit goods and crossing borders, but also as carriers of chemicals or explosives to cause harm.
All the world's police forces face significant challenges. Independent research reveals just how the performance of many police forces is deteriorating. In Sweden, the solution rate for reported crime has dropped to under fifteen percent.
Police have an obvious challenge to adapt at the same fast pace as society in general when it comes to digitalisation. Our view is that the police will have no choice but to adapt to the new reality and to greater extent be forced to prioritise the digitalisation of their operations. We are confident that this will lead to greater efficiency, increase the number of crimes solved, and ultimately lead to a safer society based on the rule of law.
My firm opinion is that, just like society in general, the police will also go through a digital revolution where they will prioritise investment in digital investigative activities and law enforcement in a whole other way. When this happens, the market for MSAB and MSAB Ecosystem will be much greater than anything we previously dared to imagine.
MSAB's work is long-term and we will continue to invest in growth and development to consolidate our position as a leading actor in a growing market. But our development is rarely linear or even. Thus, the company must be assessed and valued based on a longer period than just a single quarter.
Stockholm, February 2018
Chief Executive Director
Joel Bollö, CEO MSAB
+46 (0)70 930 07 20
This information is information that Micro Systemation AB is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out below, at 08:00 CEST on 2 February, 2018.
MSAB in brief
MSAB is a world leader in mobile forensics technology with the aim of extracting and analysing data from confiscated mobile devices, mainly mobile phones. The company has its own sales offices and sales representatives in Europe, North America, South America, China, Australia, Singapore and Russia, and together with a number of distributors covers most of the world. The company's proprietary products have become a de facto standard in the field and are used for securing evidence in over 100 countries. The products are complemented by a wide range of training courses, with the opportunity to become certified in a forensically sound method of extracting data from mobile devices. Customers are primarily authorities involved in performing criminal investigations, and include police, military and customs. MSAB is listed on NASDAQ Stockholm under the ticker symbol: MSAB B.