Tobii Interim Report for the First Quarter 2019 - Seite 2

• Tobii's co-founder Mårten Skogö left his position as Chief Science Officer at and his position in Group Management. At the same time, Mårten has been proposed to serve as a new member on Tobii's Board of Directors.

Comments from the CEO

Tobii has had a good start of the year with sales increases in all business units. Overall, sales increased by 34 percent, and 20 percent adjusted for currency, compared with the first quarter of 2018. Sales also grew sequentially despite a strong fourth quarter in 2018. In addition, the operating margin at Tobii Pro remained high at 20% also in this quarter. With continued breakthroughs in new segments and markets, as well as operating costs that have leveled off, I am optimistic about the continuation of the year.

Tobii Dynavox increased sales an impressive 40% compared with the first quarter of 2018. The sharp increase can be explained in part by the acquisition of Smartbox and favorable currency effects. Adjusted for these factors, sales growth was 10%. Organic sales increased both for our new touchscreen products and for our eye-controlled products. We see solid growth in both established markets such as the US, Sweden and Norway, as well as in less developed markets, such as Eastern Europe. This accomplishment indicates the continued large growth potential in the market and for Tobii Dynavox as market leader. To take advantage of this po-tential we continue to invest in product and market development and during the quarter, we have trained about 7,000 therapists, prescribers and other key individuals all over the world.

The British competition authority CMA's review of the Smartbox acquisition is still in pro-gress and has now entered a second phase. Consequently, non-recurring costs and the delay in beginning the integration process have had a negative impact on the financial performance for the quarter. We are cooperating with the CMA and continue to believe that the acquisition does not inhibit competition; rather, it is good for our customers, for Smartbox and for us. We look forward to a final decision from the CMA in late July so that we can continue the process.