”A YEAR OF GROWTH, EXPANSION
AND IMPROVED PROFITABILTY.”    

During 2007 we further strengthend our brand; we established a foundation that makes it possible to continue to grow and to meet the markets demands and expectations. We are ready for the next step in Micro Systemation´s evolution.

We present yet another record breaking result for Micro Systemation. The 2007 turnover amounted to 50 million SEK with a profit of 23.4 million SEK. That means that we more than doubled the profit compared to 2006. Net turnover increased by 93 percent and thereby increased the margin from 39 percent 2006 to 46 percent 2007. Costs have increased by 71 percent from 2006 to 2007. In summary: we grow rapidly with increased profit. We maintain our customers trust at the same time that the influx of new customers and markets is sound. Just over 36 percent of 2007‘s  net turnover derives from the last quarter. We billed almost 23 million SEK during the fourth quarter, whereof approximately 4.8 million SEK have been allocated. We see that the company’s seasonally variation continues to accentuate due to the business models construction and that the sales to new customers always has been favorable at the end of the year. Almost 50 percent of last year’s turnover comes from repetitive sales, including renewed licenses for .XRY and SIM id-Cloner.

96 percent of the net turnover is exported: 64 percent to Europe, 21 to America and 11 to the rest of the world. Corresponding numbers for 2006 was: Export 93 percent, whereof 72 percent to Europe, America 13 and other markets 8 percent. North America´s importance is growing and the board has decided to commence a firmer presence in the USA. Today we have one employed salesman in the USA. To serve the USA market further personnel and another company presence is required. Not least the development of CDMA support in our products will be considerably easier when we are on site. Establishing us on the south East Asian market is also on the agenda for 2008.

Exiting product launch

We get closer and closer to the launch of the product with the project name HeXRY. It is the largest and probably the most complicated development project in the company history. This product, that physically copies the complete memory content in a mobile phone, and then interprets and analyze the data is impressive and powerful. To some extent it will be possible to recover deleted information. A function truly wanted among crime investigating authorities. In the beginning of March we will hold a series of event for our customers in order to present the product and get further feedback on the user interface and functions. Already today there is a high interest in the launch, which for us also is the starting point for extensive training and development of support for yet more phone models and necessary hardware. Like for all of our products; a substantial support organization is the key for success and revenues from renewed license.

Micro Systemation continuously seeks more software developers, sales staff and administrative personnel. During 2007 we increased our staff from 11 to 18 employees and more are needed in order to fulfill the tasks we face. In December we therefore expanded our office space so that we can expand even more without having to relocate. Successful recruitments are an important factor of continued growth. Last year’s strong result means that the accumulated loss now is replaced with a profit which results in Micro Systemation starting December 2007, pays tax. For the fourth quarter the tax amounts to 117 000 SEK.            

Continuous evolution

Micro Systemation operates on a highly technological, competitive and expanding market. To maintain our leading position we are forced to continuously develop our products, but also to adjust our price structure and our offer to the market. .XRY has been on the market for three years and its success is well documented. During these three years competitors have raised and fallen, but the overall competition increases steadily with lower margins as a result. We have not yet adjusted our tariffs but are prepared to do so. Our tool box has lots of tools to meet changing market conditions. This includes; new bundling, market campaigns and new products such as the HeXRY. This is an exciting market and I confidently look forward to face it and the future. The work on our web site continues; we will shortly present a new and improved IR section at www.msab.com. The exciting journey continues.

Welcome to join us!

Solna, March 2008
JOEL BOLLÖ, CEO