A rather soft Q3, but in line with our forecasts
EARNINGS/SALES RELEASES
FACT

DMS released 9m sales, which reached €25.9m (+5% and +2% on a comparable basis).


ANALYSIS

At first sight, the sales achieved in 9 months look a bit weak compared to H1 (+15.8%), although they are fully in line with our yearly target (+5.5%). In fact, Q3 is low (-13% comparable, -12% reported), due to the high revenue level of last year (+54% comparable in Q3 15) with, in particular, a €1.1m one-off order in radiology. Quarterly sales can show volatility, as experienced in Q3, but this is not an issue, we argue. On top of this, the revenues of Alpha Mos are markedly down in Q3 (-29% and -7% over 9 months), which is a direct consequence of the group’s strategy of focusing on fewer products and product ranges, as detailed in our report dated 7 July 2016, and has a direct impact on total sales in the quarter.


IMPACT

Altogether, the numbers are in line with our expectations, with declining sales at Alpha Mos and a rather soft quarter in radiology/densitometry. This does not jeopardise our revenue growth expectations for the full-year, while we emphasise again that quarterly numbers are and will remain volatile. We will not change our forecasts on this release.