HMS Networks is a global supplier of products within the communication technology area. The primary focus is to make industrial devices accessible of communicating with each other. In addition to this, the company develops and commercializes software for remote monitoring and control. More than 90% of the total sales is done outside of Sweden, whereas the central markets are Germany, Japan and the US. The products are marketed under the brands Anybus (59%), eWon (19%), Ixxat (13%) and Intesis (9%).
Even though a key driver for HMS is the digitalization trend, it is operating within the industrial segment, which is characterized by cyclicality. Hence, the demand for HMS’s products should be affected by the general economic condition. Another risk lies with competition. HMS is exposed to competition, which could affect the profitability going forward. The primary competition is from HMS’s customers themselves, who can choose to use substitutional self-developed solutions instead of implementing HMS’s products.
