STOCKHOLM (BRAIN) — Led by growth in the Sports category — which includes bike helmets — MIPS' second-quarter net sales increased 31% year-over-year.
For the quarter that ended in June, MIPS' net sales were SEK 133 million ($12.6 million), compared with SEK 102 million at the same time last year. For the Sports category, revenues increased 33% to SEK 122 million for the quarter, topping the helmet technology company's other two categories, Motorcycle and Safety.
"Inventory levels at both our customers and retailers have now returned to healthier levels," said Max Strandwitz, MIPS' president and CEO, about the bike sub-category. "While not all retailers and helmet brands have fully resolved their high inventory levels yet, the problem has now become more local in terms of helmets, but some challenges still remain, primarily for other bike products. This means that for stores and brands, access to capital is more limited, and their desire to build up helmet inventory levels is thus also less. That's why we still believe that our sales growth this year will mainly be driven by our customers buying products from us again, along with the fact that more helmet models are being launched with our technology."
Net income was SEK 40 million for the quarter, up 100% from SEK 20 million year-over-year. Earnings per share increased 101%, from SEK 0.76 to SEK 1.53.
"This quarter developed as we expected, and I'm happy that all of our sub-categories grew during the quarter, despite a challenging consumer market," Strandwitz said. "Our customers are still showing a great deal of interest in developing new helmets equipped with MIPS' safety system in all three categories, and we completed the highest ever number of helmets developed with our technology this quarter."
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.
