Tobii Interim Report for the First Quarter 2021 - Seite 2

During the first quarter, business activity continued to increase in all three divisions. However, the pandemic continues to have a substan-tial negative impact on sales and Tobii Dynavox was also negatively affected by supply chain disruptions.

Today we are announcing plans to create two independent companies – Tobii Dynavox and Tobii. Thanks to good performance and a strong outlook, we are now ready to take this step and I am optimistic about the potential to thereby create even stronger condi-tions for our long-term growth and success.

During the first quarter, our business continued to gradually recover from the effects of the pandemic, which was reflected by increased customer activity in all divisions. Both our own ability to drive sales and operations, as well as that of our customers, has however continued to be negatively affected by the constraints in society. Overall, the Group achieved 1 percent organic growth and improved the operating result by SEK 14 million to SEK -9 million.

Tobii Dynavox decreased revenue by 6 percent organically. This decline was a result of the pandemic, which did not affect revenue in the first quarter of 2020, in combination with the effects of the previously announced supply chain disruptions for our flagship product, the I-series, which we have seen since mid-March. Our sales pipeline continued to develop strongly and was unusually high at the end of the quarter. This indicates strong underlying demand and lays the foundation to make up for deferred revenue in the second half of 2021.

The positive trend in reimbursement for assistive technology for communication continues and during the quarter President Biden signed a law allowing ALS patients in the US to receive reimbursement for assistive technology for communication five months faster.

Intensive work is ongoing to resolve the supply chain disruptions, including a small product re-design. Our assessment remains that this will result in deferred revenues of SEK 40-80 million, primarily from the second to the third quarter of 2021.

Tobii Pro increased revenue by 13 percent organically. Very large geographical differences were evident, with the US lagging and a strong performance in Asia. These trends make us optimistic about the prospects for good growth once the US and Europe open up after the pandemic.

Tobii Pro launched a new language and reading module in its Pro Lab analysis software, aimed at academic research. This effort is part of a larger initiative to drive advances in applied reading research and educational psychology. Eye tracking enables better treatment and earlier detection of diagnoses such as dyslexia, as well as contributes to better reading comprehension and faster reading.