VERI

Verisec

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Verisec: Q1 comments

Net sales were stronger than expected. However, EBITDA was SEK 2.2 million lower than our estimates. Read our short comment on the Q1-report.

Estimates versus results: 
 
 
Net sales were stronger than expected. However, EBITDA was SEK 2.2 million lower than our estimates. Gross margin was 63 percent versus our estimates of 66 percent. The worse than expected EBITDA-result is explained in increased personnel costs. The company has hired more developers in Serbia and sales- and operational personnel in Sweden. Both are most likely investment in future growth for Freja eID. As communicated in our latest research update and in the Q1-report, Verisec needs to strengthen its cash position. We believe a targeted share issue is most likely this quarter when the company’s current burn rate is high in relation to its current net cash of SEK 5.8 million. 
 
Nothing new of high importance was communicated in the Q1-report. We published a research update only a week ago, where you can find the answers to all your questions.
 

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