Net sales in the quarter totalled SEK 12.5m, in line with the company’s profit warning, and represented growth of -65%. Turnover was burdened by delays and deliveries that have been postponed past year-end. At the time of the profit warning, the company presented its order book for the first time. This now amounts to SEK 45m and is expected to be delivered in H1 2023. EBITDA in the quarter was SEK -14.4m. Available cash was at SEK 44m in January, and the company saw positive operating cash flows in January and February.

We have high confidence in Irisity’s technology, since the company has received technical validation from several key players in the ecosystem. In Q4, it signed two framework agreements with leading players. Moreover, we see that industry interest in software investments facilitating surveillance work is considerable. At present, however, Irisity has had repeated problems in delivering projects. We believe part of this stems from it winning larger and more complex projects for which it lacks the delivery capacity. As the company has invested in supply capacity to address these problems during Q4 and early this year, we believe there is potential for it to return to growth in the near future.

Estimates remain cautious