Full Year Report Jan - Dec 2009

Strong finish to the year resulted in sales growth of 27.4%!

Fourth Quarter

• Net sales increased by 35.6 percent to SEK 30.6 (22.6) million
• Operating profit amounted to SEK 11.2 (7.9) million
• Profit after tax amounted to SEK 8.3 (8.3) million
• Earnings per share amounted to SEK 0.47 (0.47)

January – December

• Net sales increased by 27.4 percent to SEK 80.6 (63.3) million
• Operating profit amounted to SEK 20.3 (22.3) million representing an operating margin of 25.2 percent compared to last year when the operating margin amounted to 35.2 percent
• Profit after tax amounted to SEK 14.6 (17.0) million
  Cash and cash equivalents amounted to SEK 39.0 (43.4) million
• Earnings per share were SEK 0.82 (0.96)
• Cash flow from operating activities amounted to SEK 8.5 (22.0) million
• The Board proposes a regular dividend of SEK 0.65 per share and an extra dividend of SEK 0.35 per share

CEO's Comment

MSAB continues to show strong growth and has set new records in sales. For the fourth quarter, net sales reached SEK 30.6 million, this being more then the accumulated sales between January 2004 and June 2006. Sales for the fourth quarter, accounted for 38% of MSAB annual turnover, a pattern that has been developing over the years. During the last two years our ability to deliver on time has been positive. During the third quarter this was not the case. However, the last quarter has shown that MSAB can meet customer expectations and are back on track with its deliveries.

Turnover in 2009 was 80.6 million. Despite the decreasing budgets of our customers and the financial crisis, the year over year growth was 27.4%. However, whilst net sales have risen, costs have grown proportionally. This trend has been accepted during our intensive expansion but is not a sustainable strategy. MSAB has increased efforts to capitalize on investments. We expect to gradually improve margins and profitability. It will take some time before the improved economic situation is reflected in our customers' budgets, but much of our potential markets are still undeveloped. The pace of our organization's expansion will reduce but further strengthening of research and development is necessary to maintain our position as market leader.

We will continue to work towards our customers’ needs and requirements with product enhancements and training so that our products can be used by a broader scope of users.

Previously, customers had to send phones to specialized labs to get the phone analyzed. Today we see local police stations undertaking this analysis, thus, we are in the development process to meet the demand of this growing market.

In 2010 we are going to hold our position as the number one provider of mobile phone forensic products. We will launch more products with different functionalities and diversify our pricing to attract more users and increase sales. By simultaneously improving our production efficiency and license management, we will further enhance our profitability.

Competition remains tough, to be the leading provider of mobile forensic means that many of our innovations, both in terms of ideas and concepts are also used by others. We will continue being the most innovative provider in the market and increase the gap away from our competition.

Read the full report (In Swedish) >> here <<