Formpipe: A stable case
Research Update
2016-10-27
07:36
Q3 revenue of 83.2 mSEK was significantly below our expected 91.1 mSEK; EBIT was however good, reported at a 7.5%, versus our ambitious 10.6% estimate (which would have been much closer in sight if revenues and activations had come in closer to our estimates). License revenues pressured by lower market activity in SE and somewhat lower delivery revenues were offset by ever growing recurring revenues and the delivered margin improvements. Somewhat weaker cash flow is due to delivery in the Stockholm City contract, which will pay off in a number of future quarters. Life Science continues to be an interesting catalyst for Formpipe’s case, but requires further patience and long-term thinking from investors. Our fair value range remains unchanged.
AS
Alexander Sattelmaier
Disclosures and disclaimers