Axis: Interim report January-September 2012

The third quarter

  · Net sales increased by 11 percent during the third quarter to SEK 1,079 M
(971)
Net sales increased by 8 percent in local currencies
  · Operating profit decreased to SEK 168 M (225), which corresponds to an
operating margin of 15.6 percent (23.2)
  · Profit after tax amounted to SEK 120 M (164)
  · Earnings per share amounted to SEK 1.72 (2.37)

 January - September

  · Net sales increased by 19 percent during the period to SEK 3,004 M (2,527)
Net sales increased by 14 percent in local currencies
  · Operating profit decreased to SEK 369 M (441), which corresponds to an
operating margin of 12.3 percent (17.5)
  · Profit after tax amounted to SEK 264 M (322)
  · Earnings per share amounted to SEK 3.81 (4.63)
Continued global expansion and steady project flow

The third quarter was characterized by a continued steady level in the number of
project inquiries compared with the first six months of the year. Growth during
the quarter was lower than long-term expectations and the irregularity between
quarters remains. A slightly improved gross margin was mainly due to a more
favorable product mix and lower purchasing costs. The rate of innovation is
still high and the product portfolio was extended by a number of high quality
network cameras during the period.

It is currently difficult to judge how the economic uncertainty will impact
demand for Axis’ products in the near term. Presently, we see a steady level in
the number of project inquiries, but we notice some caution among our partners.

Axis continues to see good opportunities for growth, principally in smaller
surveillance systems and in the Asian market. We strengthened our offering
towards smaller systems during the quarter through improved products and
strategically important collaboration. Meanwhile, we are continuing to build up
a strong global organization and we were able to welcome 68 new employees on
board during the period.

We retain a positive view on the trend for network cameras with an expected long
-term growth potential of 25 percent per year. We are convinced that Axis’
strong brand and market position, combined with our business model and corporate
culture mean that we are well-equipped for continued global expansion.
 (pressoffice@axis.com)For more information, please contact:
Johan Lundin, Manager, Investor Relations, Axis Communications
Telephone: 46 (0)46-272 18 00, E-mail: johan.lundin@axis.com.
About Axis Communications
As the market leader in network video, Axis is leading the way to a smarter,
safer, more secure world — driving the shift from analog to digital video
surveillance. Offering network video solutions for professional installations,
Axis’ products and solutions are based on an innovative, open technology
platform.

Axis has more than 1,000 dedicated employees in 40 locations around the world
and cooperates with partners covering 179 countries. Founded in 1984, Axis is a
Sweden-based IT company listed on NASDAQ OMX Stockholm under the ticker AXIS.
For more information about Axis, please visit our website www.axis.com