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

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