News Column


July 17, 2014

Sales increase continues and with a robust improvement of the result

Second quarter

· Net sales increased by 45% during the second quarter and was 16,4 MSEK (11,3)

· Result before depreciation (EBITDA) was 2,2 MSEK (0,2), corresponding to a margin of 13,1% (1,6)

· Net result was 1,9 MSEK (-0,2)

· Result per share was 0,02 (0,00)

First half year

· Net sales increased during the period by 16% to 30,7 MSEK (25,7)

· Result before depreciation (EBITDA) increased to 3,7 MSEK (2,1), which corresponds to a margin of 12,1% (8,3)

· Net result was 3,2 MSEK (1,3)

· Result per share was 0,03 (0,01)

· Cash flow from the business was 1,2 MSEK (-2,6)

Sales and income TSEK Second First Full quarter half year year 2014 2013 Change 2014 2013 Change 2013 2012 Change Sales 16 381 11 45% 30 25 20% 50 39 27% 273 735 704 344 681 Operating 2154 183 1077% 3710 2123 75% 2 776 154 1703% income (EBITDA) Operating 13,1% 1,6% 12,1% 8,3% 5,5% 0,4% margin (EBITDA) Income 1902 -193 -1085% 3156 1324 138% 1 512 -5 -128% before 466 tax Operating 1213 -2110 -157% -454 -2579 -82% -1 -379 219% cash flow 209 Earnings 0,02 0 0,03 0,01 200% 0,01 -0,05 -120% per share

Comments by the CEO

Our sales during the second quarter have seen a good growth on the total level and with one more positive quarterly result we feel the stability of our business increasing. We are not satisfied with all parts of our growth, which we would like to improve further during the year. Our Rail business has been good with an even flow of serial deliveries to several customers. New projects are discussed and our focus is to work more and tighter with our already established big partners, with whom we want to expand our business and become a more important business partner for them. We expect some more new projects coming during the year. We have after analyzing the business made the judgment that our product offering is most efficient in certain applications and we will therefore “drill deeper” in these applications and spend less time on the requests regarding our less efficient offerings. Being a small company it is important that we focus on the right things and especially in Rail Solutions where the projects are complex, project specific and always demanding major resources.

Our Traffic business has developed good in the US market, while it has been somewhat weaker in the Asian market, where mainly China has been weak. In the EMEA region the sales has been according to plan, but we intend to increase our efforts there supported by our new UHF products recently launched and which we judge will have a positive impact on sales and result during the second half of the year. In the Nordic market we increase our presence and we already see that our new UHF reader find a great interest among established as well as new partners.

The innovation work will continue and we plan to launch more products in our new UHF family at the end of the year. In focus for our product innovation we have the customer’s need for security and safety, reliability, functionality, design and life cycle cost. Our judgment is that further launches will increase our addressable market and this is a fundamental requisite for increasing our growth.

Our result of 2,2 MSEK (0,2), is historically very good and I think we should be pleased by the quarterly result even if we are not satisfied and would like to see more ahead. As we have said before we are still in a change period and this will impose our stability and our quarterly figures during the quarters to come and the third quarter is known to be our seasonally weakest quarter.

Our new UHF products will contribute with the major part of our growth the next few years to come, but we also see selective acquisitions as a way to complement our product portfolio in Traffic Solutions with the purpose to increase the value and the attraction of our customer offering. Parallel to development of new products we study different complementary products within Traffic Solutions as well as companies which could form a complement to our existing business.

Jonas Svensson


This report like all previous economic reports can be found at the company home page

For further information, please contact:

Jonas Svensson, CEO, +46 8-6321950,

About TagMaster

TagMaster is an application driven technology company that designs and markets advanced radio frquency identification (RFID) systems and information products for demanding environments. Application areas include vehicle access control, rail bound transportation and logistics, in order to increase efficiency, security, convenience and to decrease environmental impact. TagMaster has dedicated agencies in the US and in China and exports mainly to Europe, Middle East, Asia and North America via a global network of partners, systems integrators and distributors. TagMaster was founded in 1994 and has its headquarters in Stockholm. TagMaster is a public company and its shares are traded on First North stock exchange in Stockholm, Sweden.

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