Interim Report Image Systems AB January-March 2025

First quarter January–March

Order intake amounted to MSEK 30.9 (56.1) Net sales amounted to MSEK 39.0 (38.2) Gross margin amounted to 72 (70) percent EBITDA amounted to MSEK 2.8 (4.4) Earnings per share amounted to SEK -0.03 (0.00)

 

 

Financial overview	Jan–March 2025	Jan–March 2024	Full year 2024
Order intake, MSEK	30.9	56.1	228.5
Order backlog, MSEK	107.5	91.8	117.5
Net sales, MSEK	39.0	38.2	184.9
Capitalized development expenditure	3.3	3.2	14.9
Gross margin, %	72	70	68
EBITDA, MSEK	2.8	4.4	26.8
EBITDA margin, %	6.6	10.6	13.4
Operating profit (EBIT), MSEK	-2.5	0.1	8.8
Profit after tax, MSEK	-2.5	-0.1	8.6
Cash flow from operating activities, MSEK	16.1	8.6	39.2
Solidity, %	55	61	55
Average number of employees	70	68	72
Earnings per share	-0.03	0.00	0.10

 

 

 

A WORD FROM THE CEO

Stable development in a changing environment

The first quarter showed stable development given the prevailing circumstances of uncertainty and rapid change in global markets. Despite the circumstances, we have been able to successfully run our operations in line with our established strategies.

Order intake decreased as a consequence of the economic situation and macroeconomic uncertainty to MSEK 30.9 (56.1). At the same time, we note that we have a stable order backlog of MSEK 107 (91.8) and believe that our customers’ investment needs remain.The Group’s net sales of MSEK 39.0 are slightly above the same period last year (38.2), with a continued good gross margin. EBITDA decreased to MSEK 2.8 (4.4), mainly due to the Motion Analysis business unit’s investments in existing and new markets, negative currency effects and the transition to a subscription-based business model. The transition to the new business model is strategically significant and will lead to more consistent revenue flows and enhanced profitability over time.

The RemaSawco business unit delivered a strong result in the first quarter, with increased net sales to MSEK 28.3 (27.0) and an EBITDA margin of 15.6% (5.7). The margin increase is explained by a favorable product mix and the result of long-term efficiency improvements. The business unit is now well positioned to meet both challenges and opportunities going forward.

Warning signs in the sawmill industry

Despite shortages of wood products and high raw material prices, there was some optimism among Swedish sawmills in 2024 and early 2025. This optimism has now been dampened by the macroeconomic situation, not least due to the uncertainty surrounding import tariffs from the US and the strengthening of the Swedish krona. The business unit continues to follow established strategies, which means a strong focus on customer satisfaction in terms of delivery quality, recurring revenue in terms of service agreements and product portfolio development.

Successful transition to new business model for Motion Analysis

The turbulent situation affecting the global economy has affected the specialized market niches in which Motion Analysis operates, which during the quarter resulted in a restrained willingness to invest on the part of our customers, which we currently consider to be temporary. During the beginning of the year, we have continued to maintain a strong focus on market presence and customer dialogue, which has laid the foundation for good business opportunities going forward. The transition to our new subscription-based business model has continued to develop rapidly and virtually the entire order intake of the quarter consists of such agreements. The order backlog for these agreements remains high. The development of our new product platform is progressing according to plan and the commercial launch will begin in the current quarter.

Continued focus on development and positioning

I am honored and humbled as I now assume the role of CEO of Image Systems, and I look forward to working with our strong teams to continue to develop the Group’s operations.

I am confident in the strategy we have set out and our ambitions remain high. We are working hard to strengthen our position in our market segments – both through product development and with business models that create long-term customer value while contributing to stronger financial predictability for the Group. For RemaSawco, this means, among other things, a continued focus on service and maintenance agreements and product portfolio development, while Motion Analysis accelerates the roll-out of its subscription solution and the new product platform.

THE GROUP’S DEVELOPMENT IN THE FIRST QUARTER

Order intake amounted to MSEK 30.9 (56.1). Order backlog as of March 31, 2025, amounted to MSEK 107.5 (91.8).

Net sales amounted to MSEK 39.0 (38.2). Capitalized development expenditure amounted to MSEK 3.3 (3.2) and relates to both business units

Gross margin amounted to 72 (70) percent.

EBITDA amounted to MSEK 2.8 (4.4). Other external costs decreased compared to the same period last year, which is mainly explained by a decrease in external consultancy costs and a lower provision for bad debts under IFRS 9.

Personnel costs increased compared to last year’s period, which is attributed to an exchange of skills and an increase in the number of employees.

Depreciation/amortization amounted to MSEK -5.3 (-4.4). During the year, we have begun depreciation/amortization of several development projects in connection with commercial launch.

Net financial items amounted to MSEK -0.1 (-0.3).

Result after taxes amounted to MSEK -2.5 (-0.1).

Financial position, investments and cash flow

The Group’s investments in fixed assets during the quarter amounted to MSEK 5.5 (5.4), of which MSEK 3.3 (3.2) related to capitalized development projects. Capitalization of development projects takes place in both business units. The operational cash flow during the quarter amounted to MSEK 10.6 (3.2). Solidity as of March 31, 2025, amounted to 55 (61) percent. Net indebtedness amounted to 0.0 (0.1) times. Available cash and cash equivalents including the undrawn part of the overdraft facilities amounted to MSEK 38.2 (22.7) as of March 31, 2025.

 

ROLLING 12-MONTH ORDER INTAKE, REVENUE AND EBITDA

 

The Group’s rolling 12-month EBITDA margin during the first quarter amounted to just over 12.6 percent. The Group’s long-term EBITDA target of delivering a stable 15 percent EBITDA margin requires growth in net sales. The pace of the ongoing change in the Motion Analysis business unit, to a higher proportion of subscription and support agreements, may also affect how quickly the long-term goal is achieved. The changed business model will eventually translate into growth in both net sales and EBITDA results.

BUSINESS AREA: REMASAWCO

RemaSawco provides solutions to optimize production in the sawmill industry. The product portfolio includes proprietary software that, with the help of laser, 3D scanning, X-ray, and automation, measures and analyzes timber and boards throughout the sawmill process to maximize value exchange, minimize waste, and thus increase customer profitability.

Performance during the period

The year started somewhat cautiously and order intake decreased to MSEK 22.2 (43.2). With a large order backlog, we were able to focus on customer deliveries during the quarter, as well as on continued product development and efficiency improvements. The quarter largely comprises deliveries under the VIOL3 solution. VIOL3 is a national change of measurement standard for timber sorting and a requirement of the impartial industry association Biometria. The systems have been successfully delivered to several customers in the first quarter. Net sales increased slightly to MSEK 28.3 (27.0), while EBITDA improved to MSEK 4.6 (1.6) and the margin improved to 15.6% (5.7). This shows that our efficiency and technology efforts continue to pay off. The prevailing market uncertainties, such as tariffs and raw material market imbalances, have dampened the dawning optimism in the sawmill industry. We also note a continued positive development in our service and support concept SLA, where almost all business now includes such an agreement, which provides customers with safer operations over time and the business unit with more consistent revenue.

	Jan–March 2025	Jan–March 2024	Full year 2024
Order intake, MSEK	22.2	43.2	165.9
Net sales, MSEK	28.3	27.0	146.8
Capitalized development expenditure	1.2	1.3	6.9
EBITDA, MSEK	4.6	1.6	28.0
EBITDA margin, %	15.6	5.7	18.2

Product development

Throughout the quarter, we focused on upgrading our existing products as well as on VIOL3. The development of our new measuring station solution is progressing according to plan. The solution’s new log scanner is already operational and the new software will be commercialized in the second quarter. We continue to develop the product portfolio, both on the software and hardware side. To meet future needs, we plan to further implement new AI models in both products, development methodology and internal processes with the aim of creating a structured framework for increased efficiency, innovation and customer benefit.

BUSINESS AREA: MOTION ANALYSIS

Motion Analysis Systems offers its customers software for the analysis of high-speed film, a niche where the Company is the world leader. The software is sold under the product names TEMA and TrackEyeⓇ.

Performance during the period

As a consequence of geopolitical and macroeconomic uncertainty in the world, we have experienced a more cautious attitude among our customers during the quarter and order intake decreased to MSEK 8.7 (12.9). Order intake consists almost exclusively of subscription agreements and the order backlog regarding these amounted to MSEK 31.5 (11.1) at the end of the quarter, which secures future revenues. Net sales decreased to MSEK 10.7 (11.2), mainly due to the transition to the new business model. For a period of time, the business model will yield lower revenues as these are distributed evenly over the agreement period instead of being taken in their entirety initially as before. Operating profit during the quarter was adversely affected by the ongoing transition to a new business model, but also by currency effects and by investments in existing and new markets. However, we can see that increased marketing efforts and customer dialogues during the quarter clearly indicate a strong interest in future business. We note that some of our larger customer segments, such as the defense and automotive industries, are signaling increased investment needs going forward. For that reason, we believe that the current uncertainties are temporary and that Motion Analysis will subsequently return to the growth curve we have seen in recent years.

 

	Jan–March 2025	Jan–March 2024	Full year 2024
Order intake, MSEK	8.7	12.9	62.6
Order backlog subscription and support services, MSEK	31.5	11.1	31.8
Net sales, MSEK	10.7	11.2	38.1
Capitalized development expenditure	2.1	1.9	8.0
EBITDA, MSEK	-0.7	4.1	5.1
EBITDA margin, %	-5.5	31.3	11.1

 

Product development

According to plan, the business unit conducted tests during the first quarter at a customer’s site of the new product platform’s beta release. Feedback has been received, and the business unit is now about to start the commercial launch of the new platform’s first version in the second quarter.

OTHER INFORMATION

Parent Company

The Parent Company’s net sales for the first quarter amounted to MSEK 1.0 (0.8). Operating profit amounted to MSEK -1.1 (-1.3). Result after taxes amounted to MSEK -1.1 (-1.3). Investments in fixed assets amounted to MSEK 0.0 (0.0). The Parent Company’s available liquid funds as of March 31, 2025, amounted to MSEK 0.0 (0.2). The Parent Company’s equity as of March 31, 2024, amounted to MSEK 116.2 (107.3) and the solidity was 98 (98) percent.

Significant events after the period

The RemaSawco business area has received an order from Bäckebo Sawmill for approximately MSEK 7.5.

The Motion Analysis business area has received an order from an American defence customer for approximately MSEK 1.5.
 

Personnel

The average number of employees was 70 (68). The number of employees at the end of the period was 75.

 

Number of shares

The number of shares on March 31, 2025, amounted to 89,207,818.

 

Accounting policies

Image Systems applies the International Financial Reporting Standards (IFRS) as adopted by the EU. The interim report for the Image Systems Group is prepared in accordance with IAS 34, Interim Financial Reporting, and the Swedish Annual Accounts Act. Disclosure in accordance with IAS 34, Interim Financial Reporting, is provided in notes as well as elsewhere in the interim report.

The interim report for the Parent Company, Image Systems AB, is prepared in accordance with the Swedish Annual Accounts Act as well as the Swedish Financial Reporting Board’s recommendations RFR 2 Accounting for Legal Entities.

Image Systems applies the ESMA (European Securities and Markets Authority) Guidelines on Alternative Performance Measures. Definitions of indicators are provided on page 15 and relevant reconciliations on page 14.

Risks and uncertainties

The Group’s significant risks and uncertainties include business risks related to agreements with customers and suppliers as well as other external factors such as currency fluctuations. The Group’s significant financial and business-related risks are discussed at depth in the management report and under Note 3 in the 2024 Annual Report. No significant new or changed risks or uncertainties have been identified during the quarter.

This interim report has not been reviewed by the Company’s auditors

 

Financial Calendar

Annual General Meeting 2025.                         May 8, 2025

Interim report January–June 2025.                  July 17, 2025

Interim report January–September 2025.        October 24, 2025

Year-end report 2025                                       February 6, 2026

 

Long-term financial objectives

Image Systems aims to create long-term value growth for its shareholders. To achieve this, the Board of Directors has set long-term financial objectives:

EBITDA >15%

 

Solidity >50%

 

Dividend  20% of the profit after taxes

 

 

Linköping, April 25, 2025

 

 

 

 

Emilien Saindon CEO

 

The information in this report is disclosed pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 08:00 AM on April 25, 2025.

Financial reports are available on the Company’s website http://www.imagesystemsgroup.se Questions will be answered by:

Emilien Saindon, CEO and President

 

telephone +46(0)13-200 100, e-mail emilien.saindon@imagesystems.se

 

Image Systems AB, Snickaregatan 40, 582 26 Linköping, Sweden. Corporate registration number 556319-4041

This disclosure contains information that Image Systems AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 25-04-2025 08:00 CET.