Improved order intake and gross margin
Highlights of the second quarter, 2014:
• Order intake amounted to SEK 296.2 m (249.9), an increase of 18.5 percent.
• Net sales amounted to SEK 276.9 m (273.0), an increase of 1.4 percent.
• Operating profit (EBIT) totalled SEK 14.7 m (17.5). The operating margin was 5.3 percent (6.4).
• Profit after tax for the period amounted to SEK 9.4 m (12.2).
• Earnings per share after tax amounted to SEK 0.45 (0.63).
• Cash flow from current activities amounted to SEK 47.0 m (40.5).
• Unchanged outlook: Doro expects growth in 2014, mainly during the second half of the year.
CEO Jérôme Arnaud:
Confidence in feature phones while smartphones ramp-up
The second quarter ended up being almost on par compared to last year, both in terms of sales and EBITDA. However, improved order intake has provided an order book that is up 36 percent, which supports our outlook of growth in 2014.
Nordics is still lower compared to previous year but sales have improved compared to the first quarter this year. Moreover, the order intake has improved by 13 percent versus the same quarter last year, which acknowledges a more stable trend in the Nordics. In US and Canada we keep seeing a stable sell-through of our products to end-customers, but lowered partner inventory has affected our sales in the quarter. Good performance in DACH, UK and EMEA compensates for the regions above.
Our profitability and gross margin have improved since the first quarter. In spite of in-creased marketing efforts, our EBITDA-margin is now back at the same level as the sec-ond quarter last year. Our EBIT-margin is still lower compared to last year due to in-creased depreciations related to smartphone investments.
Cash flow from operations was strong and amounted to SEK 47 m, reinforced both by improved earnings and change in working capital. Doro continues to have a strong bal-ance sheet and cash position to execute on our growth strategy.
The transition from feature phones to smartphones is significantly slower for the senior segment than for the overall market. Doro continues to launch new and innovative models for the feature phone market and is globally dominating this market. The fea-ture phones performance in Doro is confirmed by recent listings with new major cus-tomers.
During the first half of 2014, smartphones accounted for 7 percent of Doro’s European mobile sales. We expect an increase of that share during the second half of the year, supported by the launch of our next smartphone in September.
For further information, please contact:
President & CEO, Jérôme Arnaud, +46 (0)46 280 50 05
CFO, Christian Lindholm, +46 (0) 46 280 50 06
Doro AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for public release on Thursday, Aug 21, 2014, at 07:30 a.m. CET
Doro AB is a Swedish public company formed in 1974. It released its pioneering ‘easy-to-use’ mobile phone in 2007 and today is the global market-leader within the category. Doro products and solutions are available in more than thirty countries spanning five continents. These include; mobile phones and smart devices, applications and software, fixed line telephony, telecare and mobile health solutions. Doro removes barriers to adoption of new technologies and holds numerous international awards in recognition of its product designs and innovations. Doro shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic List, Small Companies. Net sales of SEK 1,142.5 million (EUR 128.9 million) were reported for 2013. www.doro.com