Our sales during the fourth quarter has been stable with a minor growth in the ALPR part. The quarter has continued to be recognized by intensive work on the turnaround of CitySync Ltd, which was acquired early July, and in whioch we make a minor profit during the fourth quarter.
Our Rail business has been quite even during the quarter with serial deliveries to some of our main customers. During the end of the quarter we could inform that we had received our biggest project ever for the company. The project has an NRE part (nonrecurring engineering) and following serial deliveries during a three year period and it is a milestone for TagMaster due to its size. We still make the judgement that further projects, of less magnitude, will be added during 2016 and which will go into serial deliveries during the years to come.
Our Traffic business has continued to develop well in several of our markets and this year’s growth of 48%, with increasing margins, has been to satisfaction. The US market has continued to develop well but also the Gulf state markets have had a continued growth. In the EMEA region and in the Nordic market sales has been according to plan and we continue to increase our efforts during 2016 supported by our recently launched UHF products which we believe will have a positive influence on sales and margins during the years to come. We have also strengthened our sales efforts in the German speaking markets through a newly recruited regional manager.
We have also during the fourth quarter worked intensively on making a CitySync into a profitable growth business for the future. We work according to the same method that we used to make TagMaster profitable. We have decreased the cost level and we have among others reduced the personnel by 30% which has become visible during the quarter. We work intensely on having new products to allow us to address a wider market of applications. CitySync’s product offering consists of software (where the company is a world leader) and camera hardware where we have already launched new products, which we can sell already early 2016. We focus our sales resources towards fewer markets and towards the segments in which also TagMaster is active to give us a stronger total product offering. We work on our delivery chain to get a more efficient use of the working capital and a faster delivery service to existing and future customers. We are happy to see that this work already starts to show results and CitySync is making a small profit during the fourth quarter.
Our quarterly result of 1,2 MSEK (2,0) depends on somewhat higher costs in TagMaster related to our restructuring work with CitySync, explaining the lower comparable result.
TagMaster will continue the work to find more opportunities to selective acquisitions in adjacent technology areas like sensors, detectors and other identification technology with the purpose to increase our offering and become a more attractive supplier of the type of information which is a prerequisite for building the smart cities of the future.
For further information, please contact Jonas Svensson, CEO, +46 8-6321950, email@example.com
TagMaster is an application driven technology company that designs and markets advanced radio frequency identification (RFID) products and systems for demanding environments. Business areas include Traffic Solutions and Rail Solutions providing innovative application in order to increase efficiency, security, convenience and to decrease environmental impact. TagMaster has dedicated agencies in the US and in China and exports mainly to Europe, Middle East, Asia and North America via a global network of partners, systems integrators and distributors. TagMaster was founded in 1994 and has its headquarters in Stockholm. TagMaster is a public company and its shares are traded on First North stock exchange in Stockholm, Sweden.For more information about TagMaster, please visit www.tagmaster.com