INVISIO Communications Interim Report January to September 2012

Stockholm, November 30, 2012

INVISIO Communications (IVSO) has published its interim Report for January to September 2012. The report’s main bullets are below, and the report as a whole can be downloaded as pdf from INVISIO’s website.

Lars Højgård Hansen, CEO INVISIO Communications, comments:

” The lower sales during the quarter were balanced by the very pleasing new record order from the Armed Forces of a NATO country that we received after the end of the quarter. As previously communicated, we have during 2012 submitted offers on three large military programs where decision is expected at the earliest during the second half of 2012 and during 2013. The first decision within such a program – the new record order – was very positive and we believe and hope that it can lead to further success within these and new coming programs. Reference orders of this magnitude are very important in our continued sales work. The need for this type of communication we offer is large and we believe that the demand will increase significantly during the coming years.”

Interim Report July – September 2012

• Total income decreased to SEK 7.0 m (11.6)
• Sales for the business area Professional products decreased to 7.0 SEK m compared with the corresponding period 2011 (11.5)
• Gross profit amounted to SEK 3.4 m (5.5). For Professional products SEK 3.4 m (5.4)
• Gross margin amounted to 49.3 percent (47.3)
• Operating loss amounted to SEK -5.6 m (-5.0)
• Loss after tax amounted to SEK -6.6 m (-6.4)
• Loss per share amounted to SEK -0.18 (-0.25)
• The order book for the business area Professional products was SEK 7.1 m (5.3) at the end of the quarter

Interim Report January – September 2012

• Total income decreased to SEK 25.1 m (32.0)
• Sales for the business area Professional products decreased to
  SEK 25.1 m compared with the corresponding period 2011 (28.7)
• Gross profit amounted to SEK 10.7 m (16.2). For Professional products SEK 10.7 m (13.9)
• Gross margin amounted to 42.8 percent (50.7)
• Operating loss amounted to SEK -19.4 m (-17.1)
• Loss after tax amounted to SEK -21.6 m (-19.8)
• Loss per share amounted to SEK -0.62 (-0.77)

Important Events July – September

• INVISIO has received an additional order from the Australian Department of Defence through its Australian distribution partner Defcon Technologies. The order is again for INVISIO M3 headsets. The total order value is this time approximately SEK 1.8 m and the products will be delivered during the fourth quarter of 2012.
• INVISIO has received an order from a customer in the US. The order is for a number INVISIO X5 headsets with accompanying control units and accessories. The total order value is approximately SEK 3.5 m and expected delivery is during the fourth quarter 2012. 
• INVISIO has received a loan of SEK 5.0 m from Erik Penser Bankaktiebolag. The loan is running with 9.25 percent interest until May 31, 2013, but can be repaid earlier without additional costs. INVISIO has issued collateral in the form of third hand pledge in the shares of the subsidiary Nextlink IPR AB. The loan represents a part of the financing solution that INVISIO accounted for in the press release and prospectus in connection with the new share issue with shareholder precedence during the fall of 2011.

Important Events after the period

• INVISIO has received the by far largest order in company’s history, from the Armed Forces of a NATO country through a leading radio manufacturer. The order is for large number of INVISIO’s new communications system INVISIO V60 and the order value is approximately SEK 19 m. INVISIO also expects an additional order of SEK 13 m from the same customer before the end of 2012.
• INVISIO launches a new advanced communications- and hearing protection system, INVISIO V60. With INVISIO V60 the user gets a very light, compact and flexible communication system with built-in hearing protection and full 360 degree situational awareness. The system provides crystal-clear communication even in the most extreme and noisy conditions.
• The Board of INVISIO Communications AB (”INVISIO” or ”Company”) has today decided on a directed share issue to a smaller group of investors of a total 2 272 724 shares, corresponding to about 6.3 percent the total currently outstanding shares. With the share issue, the Company´s share capital increased with 2 272 724 SEK. The subscription price was SEK 4.40 per share. The share issue provides the Company with a total of SEK 10 m before issuance costs. The background for the share issue is to strengthen the Company´s financial position and to cover the Company’s short term need for working capital in forms of purchasing of components and manufacturing concerning the Company’s recently communicated record order. The subscription price corresponds to the share´s market value.

For additional information, please contact:

Lars Højgård Hansen, CEO INVISIO Communications

Mobile: + 45 53 72 7722

E-mail: lhh@invisiocommunications.com

About INVISIO Communications AB

INVISIO Communications AB is a public company listed on the NASDAQ OMX First North Premier Segment (ticker code: IVSO) an alternative market on NASDAQ OMX Stockholm. INVISIO specializes in voice communications in difficult conditions. The company develops, manufactures, markets and sells communication solutions such as advanced headsets control units and accessories for use with two-way radio, primarily for professional users who often work in difficult environments. The customers are for example found in the military and military Special Forces, police and SWAT teams, emergency services, the security sector, and various industries throughout the world. Additional information is available on the company’s web site at www.invisiocommunications.com. Mangold Fondkommission AB is Certified Adviser for INVISIO Communications AB.