Hexagon has solid first quarter, sees value in acquisitions
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Hexagon has solid first quarter, sees value in acquisitions

Global provider of information technology Hexagon AB reported solid figures for the first quarter of 2017, demonstrating that the demand for its geospatial measuring and other services is still strong. The company said net sales increased by 7% from the year-ago quarter. Of that, and on a fixed exchange rate basis, 3% of this growth was organic. Operational earnings and earnings per share both rose by 9% over the same timeframe, and the company’s operating cash flow improved by 42%.

Hexagon’s share price has appreciated by over 15% this year

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SOURCE: Yahoo Finance

Beyond the figures, Hexagon’s recent acquisitions were on its mind. The company said that its acquisition of MSC software, for $834 million, was completed in the quarter, and consolidated “as of 26 April”.

The company’s CEO Ola Rollén was also eager, on the earnings call, to describe what he thinks will be an exciting avenue of growth for the company that stems from an acquisition made last year. He told analysts on the call:

“We acquired a company called SigmaSpace in 2016. From that technology, that we derived from SigmaSpace, we have now launched Leica SPL 100, which is the first commercial single photon LiDAR technology. And this is bit of a small revolution where we can capture high-density point clouds up to 10x more efficiently than before. We can generate 6 million points per second. And this means that if you want to cover states in a large country or even countrywide projects, we can acquire data at the lowest cost per square kilometer or data point. And this technology is also going to be used in the newly launched Hexagon elevation program, where we combine our imagery with 3D data on the topography of any country.”

Disclosure

Dominion holds Hexagon AB in its Global Trends Managed Fund.


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