Thank you very much. Hello, everyone, and Welcome to our Q2 Update for INVISIO. We have two main highlight events from the quarter that is describing what we have seen in the last three months. First of all, we have launched a new technology platform of control units that I'll get back to in just a minute, but a very significant technological and product-related event for us. Secondly, we are seeing that our markets are gradually becoming more active as vaccines are rolled out globally, we can see that the activity levels are rising. People are returning to work. We are able to go back and visit customers, especially in the U.S., but also in Europe, we see now the same positive trend for our markets. Turning to the numbers on Page 3, our revenues increased by 25% year-on-year and went up to SEK 154 million compared to SEK 134 million in the same quarter last year. In comparable currency, our revenues actually increased by 35%. Our newly added product line from Racal Acoustics, contributed with about SEK 30 million of that number. For the six-month period, we saw revenues increasing from SEK 240 million last year to almost SEK 300 million this year, meaning an increase of about 24%. Order intake was quite good during the quarter, SEK 167 million. What is worth noting here is that we had one larger order of about SEK 40 million. Apart from that, this is a good stream of smaller orders from all geographies, all product areas. I think this is actually a very good sign for us that we can see stability on the inflow of smaller orders and also an increase in the number of smaller orders as markets are now opening up. This is very good for the future that we see a better stability when it comes to the order inflow of smaller orders. We left with a strong order book of SEK 192 million at the end of the period. That for the majority will be delivered before the end of the year. When it comes to products from the Racal product line, as we've said, sometimes their deliveries are a bit further out because they are related to programs with a long lead time, so sometimes their deliveries are up to 12 months out. Good. On the negative side, if that is negative, our gross margin was a little lower than last year, which was a strong quarter last year, 58% against 64.6%. Main reason is product mix. We see that continuously. It has to do with the type of products in this quarter. There was some sales of third-party products. There was also a higher sales of cables towards headsets and control units. This is, I think, the part of the normal fluctuations that we see, and the same for the first six months, that there is an impact because of mainly product mix. We still have the ambition, as we have said many times, that our gross margin should be somewhere between 60%-65%, and we will also get back to that point, I'm quite sure. That, of course, then impacts also the EBIT margin that was at 16.6% towards 21.7% last year. For the first six months, 16.5% versus 18.1% in EBIT margin. The thing that is new for INVISIO in 2021 is, of course, that we have acquired Racal Acoustics, and as such, we have depreciations. In addition to that, we also have launched several new products and product platforms that we are now starting to amortize. That is, of course, impacting our profit and loss result. These are some of the investments that we have been indicating for a long time. If we turn to the next page 4, there is just an overview of how these amortizations and depreciations are distributed. Again, I think this is part of the long-term investments that we said we would do, especially in new products. We are now looking into a very strong product portfolio and lineup. We have just announced a new product platform for control units. We have our new T7 headset that just recently came to the market. We also have the Racal RA4000 headset that is very new. We have the Intercom platform that has only been in the market for a short time. These are, of course, the products of the development projects we now have to start amortizing on, but these are also the products that will make sure we can continue to gain market share and continue to grow our business in the coming quarters and years. I think we have an outstanding product portfolio now, the best that the company has ever had. We just need now the markets to continue to open so we can get out there and show and start testing these fantastic products with our customers. Turning to page 5, I will not dwell on that very long. It's just the usual update on our sales per quarter and rolling 12 months on the left-hand side and the EBIT per quarter and also the rolling EBIT margin. Again, the decrease in the EBIT margin is related to the investments that we have done internally and that we continue to do in new products in the organization. The slight increase in our operating expenses in the quarter and for the first six months are also related to predominantly a few more people in R&D and a few more people in sales, especially in the European sales organization. We have a very strong setup in the U.S. where we cover most of the country, or almost all of the country. Now, in Europe, we are still growing the organization, and we have added some key people to the organization in Europe that we believe will help us go back to good growth numbers in Europe as soon as we can start visiting many of the customers that we know are there and able and willing to test our products. On page 6, we spent a bit of time this quarter to inform about the new technology platform, which is really a paradigm shift for us and for the industry, where we go from hardware to software and where we also introduce very advanced artificial intelligence technology. This is really one of the most significant events in the history of INVISIO, where we really lift ourselves to a new level and also, in our view, have a competitive advantage now that is higher than what we have ever had towards our competitors. This technology platform is built entirely from scratch. Even though from the outside it looks similar to the Gen I platform, everything inside is entirely new and built internally at INVISIO from scratch. We really believe together with our headsets that this platform sets a standard for audio performance, for hearing protection, for communication for years to come. One of the main strengths of the platform is that it gives a very high degree of flexibility when we can offer customized solutions to customers and updating the system based on the standard platform. We have taken many steps to make this as seamless as possible. We have a lot of new advanced algorithms which will help the user hear even better, be better hearing protected. In addition to that, we, as I said, have added artificial intelligence, which really will help the user to hear and filter out unwanted noise and sounds and making sure that they can be as efficient and as well protected as possible. By this, we clearly show that we are driving the industry with new innovations. This is one of the reasons we have invested heavily in the organization and in R&D over the past years to really make sure we are at the forefront of the industry and at the forefront of the technologies that can be offered in our space. We believe this is a platform that will help INVISIO grow over the coming years. On page 7, there is a couple of highlights from the new platform. Mission Adaptive is related to, as I just said, how we are able to adapt automatically to surrounding audio and noise so the user does not have to do anything. The system will adapt to the environment where the user is operating. We have market-leading hearing protection. We also have a patented solution where we can actually have double hearing protection with both over-the-ear and an in-ear headset at the same time, which gives the users really unprecedented levels of hearing protection. The system is flexible and intuitive. It doesn't require any setup. It doesn't require any calibration. It's just plug and play out of the box. [And then,] the last but not least, INVISIO Audio, which is what we are very, very proud of, the way we are able to offer audio performance that filters out all unwanted noise and let the user hear what he needs to hear and nothing else. Turning to page 8. By now, with the new platform, with the new system we have developed here, this platform will be available in a number of variants of control units. Our V10, our V20, our V50, V60, all will be available on the new platform. We then are able to, as I said, be very adaptable to many different missions that our users have. Anything from being a diver, a parachuter, a sniper, special forces, many different types of missions and functions, we are able to customize and adapt the system and the platform to different user types. We also are basing the Gen II on our IntelliCable principle, where all our cables are smart cables. That automatically adapts to all the different types of equipment that our users have. Everything from computers, tablets, smartphones, minesweepers, radios, Intercom system, anything that the users might want to use, we have intelligent cables for that will easily adapt to the system. They just need to plug the cables into the control units and into the unit they would like to connect to, computer or smartphone, radio. Then it automatically works. Last but not least, our new Intercom system is built on the same principles. It also uses the INVISIO IntelliCables. Everything is integrated, it's modular, it's versatile, compatible. The Intercom system is compatible with all the different types of vehicle platforms that our users have. Ground vehicles, helicopters, boats, and so forth. By having this entire system of personal system, IntelliCables, and the Intercom system, INVISIO has a totally unique customer proposition that no one in the industry can match. We are alone about offering this type of system that I'm sure will serve us well over the coming years. Page 9. Yeah, just a short update. We did actually also receive 1 larger order from an existing customer in the U.S. Department of Defense of SEK 40 million. That is part of the SEK 167 million order intake that we saw during the quarter. Again, we are very satisfied that our investments in the sales organization, the investments in the distribution network, is now paying off, so that the order intake of smaller orders is going very well and increasing. We believe that was the right investments to make, that we will see continued good results from that. Page 10. Another important development in the quarter was that the Swedish Police Authority extended the framework agreements we had with them with another year. We originally signed agreements with them back in 2019 for two years, now the customer has extended these agreements with another year. We have a very good relationship with the Swedish police, we are very pleased that we are able to help them with their communication and hearing protection needs. This, of course, is also an important reference customer for us in many of the other activities, especially in Europe, for police and law enforcement. More to come from that angle. In conclusion, we are a little bit business as usual. We are continuing to execute our strategy. We continue with the integration of the Racal Acoustics product line. We continue to intensify our market penetration in North America, in Europe, in parts of Asia. We do that through continued work with our sales organization and with our distribution partners. [And] of course, by introducing all the many new products that we now have available and can bring to the market over the coming months. We will also continue to have full focus on law enforcement and security with our own organization and also with our distribution partners. We still and very firm believe that this is an area that will bring growth to INVISIO over the coming years. Last but not least, our geographical focus, as I said, continues. We have done a lot of work in parts of Asia and Middle East that to some extent has been halted by the pandemic. We are absolutely certain that we will be back on track shortly when the markets are open again for visits and for product testing and so forth. In summary, I think this was a fair quarter and a first six months that we, under the current conditions, are satisfied with. We have been preparing ourselves for the markets opening up. We have been adding to the organization in sales and in R&D. We now have, as I said, an outstanding product portfolio that we are very much looking forward to bringing to the market and start reaping the benefits from the new control unit platform, the new Intercom, and for the new headsets that we have launched recently. That was the short summary of second quarter 2021 and the first half year. Operator, we are now open for questions, please. Thank you. We will now begin the question and answer session. As a reminder, to ask a question, you will need to press star and one on your telephone and wait for your name to be taken by an operator. To withdraw your question, please press the pound key. Once again, please press star one if you wish to ask a question. Please stand by while we compile the Q&A roster. Your first question comes from the line of Yiwei Zhou from SEB. Please ask your question. Your line is now open. Hi, Lars. Thank you for taking my question. I have three questions here. Firstly, could you give us an update on the Intercom launch? Secondly, you actually mentioned in the report, there were some delayed orders by Covid in the quarter. I also realized that the inventory level is lower than last quarter at the end of Q2. Is it fair to assume that you don't expect those delayed orders will come in the coming quarter? You see the risk of further delay of those orders? Lastly, a question on the Racal. You previously mentioned there will be margin development, margin improvement for Racal business, and could you also give us an update on the current margin level? Thanks. Yes. Thank you, Yiwei. If we start with the Intercom, that is going well, especially in certain parts of Europe and in the U.S. where we have been able to continue to travel. I think it is going along the same line as in Q1. The number of activities are increasing. We have a number of systems out to test. We have customers actually using it now in real life activities in parts of the world, and the feedback we have been getting has been very, very positive. This is just a matter of continuing the rollout. We have continued to see orders also, smaller orders during the quarter for Intercom. There's been nothing significant in the quarter related to Intercom. It has just been a continuation of the activities. We do believe that the orders will continue to increase, and also at some point in time, as usual, difficult to say, but we will see larger orders come from these Intercom activities. I think, and our sales teams are quite good at updating also our social media with some of the activities that they do, so you can get a little bit of an insight into some of the activities that are ongoing there. When it comes to orders, I think what we have indicated during the pandemic was, of course, that it was very difficult to visit certain customers. And therefore they have delayed their general level of activities and projects, because many of our products are normally procured. Most of our products are procured as part of a long-term modernization strategy, and it's never urgent to this end. The pandemic has just delayed certain activities and programs and projects. We can see now slowly but surely that the people are returning, and they're looking at these projects again. They will be starting testing and so forth. I think that will be back to a good activity level in the second half of the year. We are preparing ourselves as usual. We are helped by having a certain amount of inventory so we can react fast. I think this will also be a competitive advantage in the next 6-9 months that we actually are able to deliver many of our products with a fairly short notice. We are well prepared for the markets opening up. Your last question around Racal, I think we have already done a lot of work with Racal. As we said when we acquired them, their business model is a little bit different because a majority of their business are through large system integrators, through large vehicle programs and so forth. I think the Racal gross margin levels are now close to what we see for INVISIO here. Slowly but surely, I think we are improving. The [margin the] little lower margin we see right now in these quarters are more related to normal product mix variations and not specifically to Racal. Great. Thank you. Maybe just one last question here. You mentioned the third-party product was also sold in the quarter. Could you confirm it was still T5? No, it's a mix of things. Some of the lower margins in the quarter was also related to cables. Sometimes there are cables where we have to accept a little bit of a lower margin because they are part of an established pricing model where we are just helping the customer delivering something that they've used before, but now they get it in an INVISIO version. Sometimes there are certain connectors that we just have to use that are very expensive, but there is a limit to how expensive a cable can be. [So,] there are a number of different things that can impact the prices of specific cables. I think it is the product mix. We have also in this quarter, I think we sold a few less headsets compared to cables and control units. It's just a mix. Okay. Thank you. I'll jump back to the queue. You're welcome. Thank you for your questions. Once again, as a reminder, to ask a question, you will need to press star and one on your telephone. There are no further questions at this time, therefore would like to hand back to the speakers. Thank you. We thank everyone for calling in and wish you all a continued great summer and hopefully talk to you again when we have our Q3 financial update. Thank you, everyone.
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