STOCKHOLM (BRAIN) — MIPS had a 32% net sales decline year-over-year in the third quarter that the helmet-technology company said was primarily because of continued weak demand in the bike sub-category.
Net sales for the quarter were SEK 77 million ($6.9 million) compared with SEK 113 million at the same time last year. Net sales in the Sport category — which includes bike helmets — declined 29% year-over-year.
"When we analyze data from our major bike channels, we see that despite the impact of inventory corrections, we successfully continued to take market share and increase market penetration of helmet models with MIPS' safety system," said President and CEO Max Strandwitz. "We therefore remain confident about our long-term growth opportunities in the bike sub-category once the market starts to normalize."
Net income was SEK 14 million for the quarter, down 53% from SEK 29 million year-over-year. Earnings per share was down by the same percentage, from SEK 1.10 to SEK 0.53.
Strandwitz said the company expects a strong winter ski helmet season in North America because of an increase in preseason orders compared to last year.
The Motorcycle category experienced a 68% dip in net sales. "We remain positive about the Motorcycle category but at the same time need to increase the number of activities, mainly in the on-road motorcycle helmets sub-category, to ensure we achieve our long-term plan for the Motorcycle category."
In August, MIPS acquired 25% of sensor technology company Quintessential Design Inc., with Strandwitz saying the investment is "an important step in delivering MIPS' vision, ambition and strategy."
MIPS' corporate headquarters is in Stockholm, and its stock is traded on the Stockholm Stock Exchange under the MIPS symbol. Stock quote at Marketwatch.com.
