JLT Mobile Computers AB

Interim Report: January - March, 2013

·         Incoming orders MSEK 17.6 (15.8)

·         Revenues MSEK 10.3 (20.5)

·         Gross margin 30.1 % (24.4)

·         Operating Profit MSEK -2.6 (0.1)

• Restructuring costs MSEK -1.2

·         Profit/loss after taxes MSEK -2.0 (0.3)

Comments from the CEO

During the quarter, JLT reached two important milestones which create the preconditions for profitable growth.

- We launched the new product series VERSO. With the VERSO series, JLT takes a leading position with the market's highest performance in rugged mobile computers. The VERSO line has been well received and some hundred computers have already been delivered to end users for installation in actual projects and for further evaluation. At the same time, we continued to phase-out older, less profitable products in order to optimize the product portfolio.

- We implemented a cost cutting package in order to reduce costs and optimize the organization. The package included a reduction in force by seven employees, made possible through streamlined processes and enhanced system support. The restructuring costs MSEK 1.2 were booked in the quarter and the measures taken are expected to give a positive effect of MSEK 3 during the remainder of 2013.

The actions described are important steps in JLT's strategy to focus the product offering on the high-end segment of the market, where performance and ruggedness are critical, and where JLT has a clear competitive edge.

Incoming orders for the quarter recovered from the previous quarter, and finished at MSEK 17.6. However, the low number of outstanding orders, MSEK 1.5 at the start of the quarter, resulted in weak invoicing at MSEK 10.3. The effort to strengthen the margin has continued, and despite a strengthening of the Swedish krona and the weak invoicing, the gross margin increased during the quarter.

The uncertainty with respect to the current economic situation and the hesitance of customers to invest remain, but with implemented cost saving measures, increasing margin and a focus on the upper market segment, we are strengthening our position for the whole year.

Per Holmberg, CEO
JLT Mobile Computers

Revenues and results for the period of January - March 2013
During the period, revenues totaled MSEK 10.3 (20.5). The gross margin increased to 30.1 % (24.4), resulting in a gross profit of MSEK 3.1 (5.0).

The company's expenses for sales, development, production, and administration totaled MSEK 4.4 (4.6). Non-recurring extraordinary expenses related to restructuring and cost reductions totaled MSEK -1.2.