Formpipe Q3: of highs and lows
Research Note
2016-10-25
09:41
Formpipe's Q3 tells a tale of highs and lows - and shows the value of a stable, recurring business model and that one should look beyond quarterly results and the net sales line. Net sales at 83.2 mSEK came in almost 10% below our expected 91.1. This was mainly due to lower license revenues given a weaker Swedish market in Q3, and lower delivery revenues. Profitability was however rather good given the lower-than-expected revenues, with an EBIT at 7.5% (estimated 10.6%). Recurring revenues and cash flow are, as ever with Formpipe, strong and stable. This means the quarter can be seen in a positive light, despite the somewhat lower revenues in certain areas named above. In addition, a traditionally strong Q4 is ahead, as well as the recognition of first license revenues during some of the coming quarters from the major Stockholm City contract.
AS
Alexander Sattelmaier
Disclosures and disclaimers