Interim Report Q2, 2017
Numerous key deals with major potential over the next coming years
At the beginning of the year, JLT initiated an ambitious marketing strategy that has proven successful and that we continue to pursue. During the second quarter, this has yielded numerous key deals with major potential over the next coming years among new customers in our target segment. These deals include an initial order to a major international auto manufacturer in the US, which, combined with additional key deals during the quarter, place JLT in a prime position for future business since these orders constitute a component of larger roll-outs of vehicle-mounted computers.
We have also generated new business opportunities by participating in several international industry events and trade shows that are now actively being cultivated. During the quarter, JLT was an exhibitor at Port & Terminal Technology in the US, a niched conference featuring representatives from ports and terminal operators worldwide, the CIM 2017 Convention, which is Canada’s largest mining industry conference, and TOC Europe in the Netherlands, which is Europe’s largest port conference. During the quarter we also expanded our international network of resellers, JLT Global Sales Partner Program, with five additional sales partners in new countries, which strengthens our position and provides potential for more business in the global market.
For JLT, overall sales for the year primarily comprise a steady flow of business, which is supplemented by a smaller number of major, high-volume orders with somewhat lower margins. As such, there is naturally a fluctuation between periods, depending on when these high-volume orders are received during the year. Since sales during the second quarter primarily comprised a steady flow of business, revenues for the quarter declined to MSEK 28 compared with MSEK 39 in the year-earlier period, while margins conversely rose to 45% compared with 38% last year. Order intake for the quarter closed at MSEK 28 compared with MSEK 27 in the year-earlier period, thus constituting a strong quarter in both Europe and the US from a historical perspective.
During the period, we recruited a number of new positions in sales and development to bolster our organization. By investing in business development, while also strengthening our market presence, we can continue to pursue long-term and profitable growth ahead.
Per Holmberg, CEO
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