Transmode 'pleased by growth'
Transmode has announced positive results for the period from July to September 2013, with sales and profits both showing a healthy increase.
Sales were SEK (Swedish krone) 272.0 million, which corresponds to an increase of 7.0 per cent, or 8.5 per cent adjusted for exchange rate fluctuations. The operating profit was SEK 48.5 million, which equates to an operating margin of 17.8 per cent, while the net profit was SEK40.1 million.
Karl Thedéen, CEO, said: 'Sales increased by over 8 per cent in the third quarter adjusted for exchange rate fluctuations. Our gross margin was nearly 51 per cent, and we achieved an operating margin of nearly 18 per cent despite increased product development and sales initiatives, which are part of the company's growth strategy.
'Transmode's growth in EMEA, of over 18 per cent, was above our expectations. Growth in the quarter was driven by shipments within Europe, however regional order intake was negatively affected in the quarter by the merger of two of our major customers. This merger is now complete and our commercial relationship is normalised, but due to the negatively affected order intake in the third quarter, sales will be affected in the fourth quarter.
'We are pleased by our growth and very good earnings in the first three quarters of the year.'