Serstech has today received another order from its European OEM partner, which signed an agreement with Serstech in May 2018. The order will be delivered and invoiced in October.

The order contains instruments, without software and substance libraries. The software and substance libraries are delivered and invoiced at a later stage, when the partner has configured the instruments based on end-user requirements.

“Our licensing mechanism allows for an efficient production and logistics process, for both us and our partners. This is showing its value now, as we are scaling up with a more capable distribution network”, says Stefan Sandor, Serstech CEO.

For further information please contact:
Stefan Sandor,
CEO, Serstech AB
phone +46 739 60 60 67
e-mail: ss@serstech.com
or visit www.serstech.com

About Serstech AB
Serstech delivers solutions for chemical identifications and has customers across the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organisations and United Nations. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech’s solution. Serstech is traded at Nasdaq First North and you find more information about the company at: www.serstech.com. Certified advisor to Serstech is Västra Hamnen Corporate Finance AB.

Serstech has today received its initial order from its first European OEM partner, which signed an agreement with Serstech in May 2017 . The order will be delivered and invoiced within two weeks.

The products have been adapted to the visual branding requirements from the partner and are functionally similar to Serstech’s own products. The adaptation work has been completed over the summer and the first 460 KSEK of this work has been invoiced and paid in August, with the remaining parts being invoiced in Q3 and Q4.

The partner is planning to launch the products under its own name in late September. The order is the first in what is expected to be a series of orders.

“We are delighted to receive this order and to see that the strategy adjustment we initiated in Q1 is already showing results. We have spent a lot of time the last six months on building distribution and we continue this work with increasing speed during the fall and winter.”, says Stefan Sandor, Serstech CEO.

For further information please contact:
Stefan Sandor,
CEO, Serstech AB
phone +46 739 60 60 67
e-mail: ss@serstech.com
or visit www.serstech.com

About Serstech AB
Serstech delivers solutions for chemical identifications and has customers across the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organisations and United Nations. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech’s solution. Serstech is traded at Nasdaq First North and you find more information about the company at: www.serstech.com. Certified advisor to Serstech is Västra Hamnen Corporate Finance AB.

Message from the CEO

During the second quarter, we made significant progress in the implementation of Serstech’s renewed strategy. The focus was and remains on building the foundation for indirect, repeat sales and we signed several important agreements during the quarter. As previously communicated, sales remain low during at least the first half of 2018 and the quarter’s net sales ended at just under SEK 1.6 million.

Serstech signed its first two OEM agreements in April and May – one in the US and one in Europe. The US agreement has so far resulted in two smaller transactions, with the US Coast Guard and Hungary. The European agreement includes rather extensive product customization, which will be completed in August, and the products will be ready for launch by our partner at the end of September. The development work is financed by the partner and will be invoiced during the third and fourth quarters of this year.

During the quarter further discussions were initiated with future OEM partners, and we expect significant and recurring business through the OEM channel in the future. The difference to selling through resellers is important as the scalability through the OEM channel is unlimited, with minimal recurrent input from Serstech and a geographic and industry coverage that Serstech could not have achieved on its own.

The reseller channel remains important for the company and during the quarter we have concluded agreements with partners in Malaysia, China, Indonesia, Myanmar, UK, Singapore, Thailand and Vietnam. We have also terminated several agreements with previous partners that do not meet our requirements for experience, capacity and competence. During the third and fourth quarter, Serstech will participate in several tradeshows worldwide and it is our intention to sign a large number of additional distribution agreements in the coming quarters and years. We expect revenues from the renewed reseller channel to materialize in the fourth quarter of this year and to continue to increase through 2019 and onwards.

During the quarter, an agreement was signed with Finnish company Environics, which has long and extensive experience in both military and civil security applications. Environics develops products that can identify and detect gases and radioactivity, but lack the ability to identify liquid and solid chemicals. During the summer, a bundled solution that identifies solid, liquid and gaseous substances has been marketed in the US to evaluate demand. The initial feedback has been positive, and the intention is to launch the joint solution in the first half of  2019 through both Environics’ and Serstech’s channels.

Serstech continues to recruit, and during the second quarter four positions have been filled – two development engineers, an R&D manager and a sales person. All four will start their employment on September 3, and we expect to have 13 employees by the end of the year, which is in line with 2017.

In April, Serstech’s patent application for handling autofocus in Raman Instruments was approved. The solution means that we can increase the performance of the instrument without introducing any moving parts, thus maintaining essential operational reliability and robustness.

The second quarter represented a decisive and successful take-off of our new strategy. With a renewed and expanding reseller channel, with global OEM partners and with an optimized organization, we are confident and very optimistic about the future.

Stefan Sandor, CEO, Serstech AB (publ) 

For further information, please contact:

For further information please contact:
Stefan Sandor,
CEO, Serstech AB
phone +46 739 606067
e-mail: ss@serstech.com

 

Sophie Persson, 
Chair of the board Serstech AB
phone: +46 733 865660
e-mail: sp@serstech.com
or visit www.serstech.com

Serstech AB (Publ.) Is required to publish the information in this press release under the EU Market Abuse Regulation. The information was submitted for publication on August 16, 2018 at 08.45:00 AMM.

Västra Hamnen Corporate Finance are certified avisors to Serstech AB

About Serstech AB
Serstech delivers solutions for chemical identifications and has customers across the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organisations and, since recently also United Nations. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech’s solution. Serstech is traded at Nasdaq First North and you find more information about the company at: www.serstech.com

Sverker Göranson, former supreme commander of the Swedish Armed Forces, has acquired 10.700 shares in Serstech. Sverker joined the board in 2017 and is also active as advisor to the Saab Group in the United States. 

Anna Werntoft, CEO of Stratiteq Sweden AB, has acquired 10.300 shares in Serstech. Anna joined the board in 2017 and is also on the board of directors of MINC Incubator in Malmö and Innovation Skåne AB. 

The board of directors and management of Serstech now hold in total 1.861.600 shares, corresponding to 3% of the outstanding shares.

For further information please contact:
Stefan Sandor,
CEO, Serstech AB
phone +46 739 606067
e-mail: ss@serstech.com

Sophie Persson, 
Chair of the board Serstech AB
phone: +46 733 865660
e-mail: sp@serstech.com
or visit www.serstech.com

About Serstech AB
Serstech delivers solutions for chemical identifications and has customers across the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organisations and, since recently also United Nations. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech’s solution. Serstech is traded at Nasdaq First North and you find more information about the company at: www.serstech.com
Certified advisor to Serstech is Västra Hamnen Corporate Finance  AB

Serstech has hired Johan Diedrichs to the newly created position VP R&D and Products. In this position, Johan will manage both R&D and Product Management and will be instrumental in the implementation of the growth strategy.

“Johan brings the same entrepreneurial spirit that we have and embrace at Serstech. His leadership skills, product experience and creative mindset will be valuable additions to an already strong R&D team”, says Stefan Sandor, Serstech CEO.

Today, Johan works in product management at Axis Communications and he has extensive experience as both R&D manager and in several different positions within product management.

“I’m looking forward to start working for Serstech – its products, technology and market potential are all very exciting. My experience from Axis, with a similar go-to-market strategy, will come in handy in this role”, says Johan Diedrichs.

Johan will join the Serstech team on September 1^st.

   

 For further information please contact:

Stefan Sandor,
CEO, Serstech AB
phone +46 739 606067
e-mail: ss@serstech.com