STOCKHOLM (BRAIN) — MIPS reported net sales for the first quarter increased 40% year-over-year and added that bike helmet inventory has "largely normalized" globally.
Net sales for the quarter were SEK 116 million ($12 million), compared with SEK 83 million at the same time last year. In the Sports sub-category, net sales were SEK 100 million, also a 40% increase from the SEK 71 million reported last April.
The earnings announcement addressed the implementation of increased tariffs on products imported into the U.S. — especially from China — and CEO Max Strandwitz said the long-term impact can't be assessed yet.
"Our assessment is, in the short-term, that this can create uncertainty for our customers with a possible delay of orders, which can result in postponed sales," Strandwitz said. "This has nothing to do with the long-term demand for MIPS products nor MIPS' position in the market, which remains strong. As regards the direct impact of the tariffs for MIPS specifically, nothing has changed from what we have previously communicated. We sell all our products based on Incoterms Ex Works, which means that the buyer takes responsibility for transport costs, fees, taxes, tariffs, and so on.
"When it comes to the consumer markets where products with MIPS' technology are sold, the developments differ. In the important U.S. market, we are seeing that the consumers are more uncertain about what to expect going forward. The outlook for the economic situation and the impact of tariffs is unclear. This reflects the fact that many consumers are more cautious. At the same time, we are seeing a good level of demand in the bicycle helmet market so far."
Net income was SEK 19 million for the quarter, up 63% from SEK 12 million year-over-year. Earnings per share increased from SEK 0.44 to SEK 0.71.
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.
