Axis AB: Interim report January-September 2016

Third quarter

  · Net sales increased by 5 percent during the third quarter to SEK 1,997 M
(1,906). Net sales increased by 5 percent in local currencies.
  · Operating profit amounted to SEK 312 M (389), which corresponds to an
operating margin of 15.6 percent (20.4).
  · Profit after tax amounted to SEK 233 M (289).
  · Earnings per share amounted to SEK 3.35 (4.16).

January - September

  · Net sales increased by 9 percent during the period to SEK 5,327 M (4,876).
Net sales increased by 10 percent in local currencies.
  · Operating profit amounted to SEK 632 M (650), which corresponds to an
operating margin of 11.9 percent (13.3).
  · Profit after tax amounted to SEK 470 M (476).
  · Earnings per share amounted to SEK 6.76 (6.85).

President's comments

After a strong first half of 2016, the growth rate and level of activity was
slightly weaker during the third quarter. However, we displayed a good
performance due to seasonally lower costs.

During the third quarter, we introduced new technology, which delivers better
focus and image quality and broadened our offering, for example, to also include
network loudspeakers. This demonstrates the continued high innovation rate in
the company and that we are continuing to develop a broader offering with a
greater focus on overall customer solutions.

On September 1 in EMEA and on October 1 in North America, Axis assumed
responsibility for sales, marketing and service of Canon’s network video
products. The network camera market continues to show great potential. We are
now able to offer a wider range of products and solutions to our customers.

Finally, it is positive to see the strong performance of the companies we
acquired during the first half of 2016, and how they are contributing to Axis’
offering. 2N is continuing to show growth and is strengthening its market
-leading position in the IP intercom field. Citilog and Axis are conducting
several joint projects in traffic monitoring. We also see how Cognimatics’
applications are well suited to Axis’ offering in the retail sector.

Ray Mauritsson
President

The report is
available here (http://www.axis.com/documentation/corporate/reports/2016/q3_eng.
p 
df).
The information in this interim report is such that Axis is required to disclose
in accordance with the Securities Market Act. Submitted for publication at 08.00
a.m. (CET) on October 20, 2016.
For further information, please contact:

Björn Hallerborn, PR & Corporate Communications Manager
Mail: pressoffice@axis.com
Phone: +46 46 272 18 00
About Axis Communications

Axis offers intelligent security solutions that enable a smarter, safer world.
As the market leader in network video, Axis is driving the industry by
continually launching innovative network products based on an open platform -
delivering high value to customers through a global partner network. Axis has
long-term relationships with partners and provides them with knowledge and
ground-breaking network products in existing and new markets.
Axis has more than 2,500 dedicated employees in more than 50 countries around
the world, supported by a global network of over 80,000 partners. Founded in
1984, Axis is a Sweden based company listed on NASDAQ Stockholm under the ticker
AXIS.  For more information about Axis, please visit our website www.axis.com.