· Value of orders placed increased to SEK 95 million (49.5); GBP 8.8 million (4.5)
– this is the fourth consecutive quarter with increased value of orders placed
· Net sales valued at SEK 62.9 million (61.2); GBP 5.8 million (5.7)
· Operating profit valued at SEK -4.8 million (- 3.8); GBP -447,000 (-354,000)
· Earnings per share valued at SEK -0.14 (- 0.13); GBP -0.013 (-0.12)
· A forced gross margin as a result of a strong Swedish currency and component shortages
· A continued increase in invoicing is expected during the fourth quarter
Comments from CEO Per Holmberg:
“Orders placed during the third quarter continued to increase for the fourth consecutive quarter and closed at SEK 44.5 million / GBP 4.1 million, with a strong order backlog. This includes a major order placed in July from the USA worth SEK 35 million / GBP 3.2 million.”
“We began delivery for the US order in September and we expect to complete it in the fourth quarter. The sudden increase in supply at the end of the quarter, combined with a slight increase in inventory levels to improve delivery capability and overcome worldwide component shortages, has impacted liquidity by increasing accounts receivable, accounts payable and inventory value.”
“The strong performance of the SEK, combined with production start-up costs for new projects and the need to source more expensive components due to component shortages, had a negative impact on gross margin, which ended at 17.9 per cent for the third quarter.”
“ As part of its expanding partner network in Europe, JLT signed an agreement with a new German partner, MCTX Mobile & Embedded Computers GmbH. The aim is to develop the market and strengthen JLT’s position in Germany, Austria and Switzerland. MCTX will support new and existing partners in these markets, and develop customized solutions for major business projects.
“With a strong opening order book, sales will continue to increase, which is expected to produce a positive result for the fourth quarter. Despite the growth in sales, however, we expect a negative result for the year due to gross margin pressure.”
