Seamless Distribution Systems AB (SDS) - services for operators

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I still haven’t kept a closer eye on this (either). Q3 numbers are out, and there doesn’t seem to have been any significant development. However, there were larger orders during Q3, which bodes at least slightly better for the future.

Interim report for the period 1 January - 30 September 2022

July - September

  • Net sales amounted to SEK 76.1 (78.7) million, a decrease of -3.3% compared to the same
    period last year. Compared to the second quarter of this year (68.9), sales increased by 10.5%.
  • EBITDA amounted to SEK 19.2 (19.7) million, a decrease of -2.5% compared to the same
    period last year. Compared to the second quarter of this year (15.4), EBITDA increased by 25.0%.
  • EBITDA margin amounted to 25.3% (25.1%).
  • Profit after tax amounted to SEK 0.1 (1.9) million.
  • Earnings per share amounted to SEK 0.01 (0.19).
  • Cash flow for the period amounted to SEK -0.3 (-11.4) million.

January - September

  • Net sales amounted to SEK 208.0 (209.4) million, a decrease of -0.7% compared to the same
    period last year.
  • EBITDA amounted to SEK 43.9 (44.7) million, a decrease of -1.7% compared to the same
    period last year.
  • EBITDA margin amounted to 21.1% (21.3%).
  • Profit after tax amounted to SEK -9.6 (0.6) million.
  • Earnings per share amounted to SEK -0.93 (0.06).
  • Cash flow for the period amounted to SEK -7.8 (20.8) million.

CEO’s statement
During the third quarter of the year, SDS’s business operations continued at a high level. We have secured several new deals, with the breakthrough deal with Sudatel for three markets simultaneously being the highlight of the quarter.

Edit:

Redeye’s comments are also attached

Management commentary states that results are starting to recover from the soft H1 2022 levels and that it is building an attractive pipeline. It has, among other things, finalized large implementations of new products and completed the transition to a modern tech architecture (microservices). Both of these have taken longer than expected. This lays the foundation for future growth, margin expansion, and improved cash flows.

SDS’s operations appear to progress well throughout H2 2022. It announced (1) its largest ever agreement together with Sudatel Group (more on here), (2) a SEK10m agreement with a Saudi telecom group, the largest market in the Middle East (more on here), and (3) a SEK3.4m order for its Smart Sales & Distribution product from an existing Sudanese customer.

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