Good morning, everyone, and welcome to this Nine-month Q3 Presentation for MSAB report. We run it online from a different venue than I usually do. Yeah, we're good. Let's jump into the presentation. Oh, wait, before I do that, I will take questions afterwards, and if you wanna have a deeper analysis, I am available for individual talks also after the presentation. Let's start with the figures for the third quarter. The revenue became SEK 93.7 million compared to SEK 89.6 million last year. It's a slight increase, maybe not as high as it could have been, if we would have received the goods. We have, I should say, not an issue, but we have an insecure delivery of incoming goods.
We, as I write in my CEO word, we approximately would have had 18 million more in revenue if we would have received the goods, which means that we are on order-wise, I guess the record high number for a Q3. Operating profit landed on SEK 8.7 million compared to SEK 24 million last year, and we will look into the more detail about the result for the company later in it. After tax, that profit became 6.8 million. If we then look into what that means for the first nine months of the year, the revenue is up to SEK 256 million compared to SEK 224 million. We have growth both organically and cleaned up from the currency exchange rate. It's growth.
Operating profit is on SEK 11.2 million for the first nine months. We have a positive cash flow of SEK 6.5 million compared to minus SEK 0.3 million last year for the first nine months. If we look at what we are selling, we can see here on the picture what the new, what this, what our revenue is coming from. We can see that there is a increase of both, training, new sales, and license renewal. We can see there is a good revenue stream coming from all categories. As I used to say, when we see that the license renewal goes up, it means that it should do because it means that our customers continue to renew their license.
We have, compared to competition based on what we hear from our customers, performed better the last, I would say, 12, maybe even up to 18 months now, relatively to what they deliver. We have a low churn, a good amount of customers that continue to renew their licenses, and we expect this to continue to grow as we do good new sales as well. What does the new sales consist of? Here's an interesting pattern that we can see a big change, and this is a good change. We can see that we have a significant growth in both Frontline and Field version. Frontline is the kiosk solutions, the tablets. It's the
Yeah, it's basically the Frontline where we see a huge potential, so we expect that to grow even more. Field version is basically for defense use, and we see that the demand from defense is increasing as the world is becoming more worrying. As I write in the report, we also have signed some contracts during Q3 with one of the larger defense sectors in Europe. We can see that we grow in what we term as the other. What is under other? Well, it's accessories and so, but we don't sell accessories for close to SEK 10 million.
What's under the other is also a good demand and an increased sales of what we term as our AAL solutions, Advanced Acquisition Lab, where we do most of the advanced stuff, and we know that we deliver high value to that one. In the latest release here, we are now making good breakthroughs in the latest Samsung phones and so that, to the best of my knowledge, no one else has on the market so far. We see a slight decrease in the Office version, in terms of new sales. I'm not worried per se of that because it has its explanations. If we look on the nine-month chart here, we can see that it looks even better.
We have growth in Frontline, XAMN, Field version, Training, Services, Other, and almost on par on Offices. It means that our growth is not coming just from one of our products. It's not just coming from one category of customers. It's a broad growth that we have. We see that the work that we provided for the last, I would say 18 months is starting to take off, and I'm positive for the future. We have to have respect for individual quarters, as I write in almost all my information trying to explain that, yes, we are on a growth path, but there can be fluctuations between products and quarters, of course. If you look on where do we sell, you can see that. This is then for Q3.
You can see that we have a slight growth in Asia, North America, and on par on EMEA. Not only that we have a good broad growth in all our product lines, we also have growth in all our regions. It means that we perform good not only on what the customer want in certain regions, we do it in all regions. Take into consideration that we have chosen now, it was two or three years ago, where we started to redraw from certain markets, so actually shrinking the number of regions and the countries, I would say, that we perform greater on, which was the total right decision to do based on the development in certain countries. I'm proud to see that we can continue to grow even though we've chosen to redraw from certain markets.
If we take a closer look into the consolidated income statement, which could be of interest to have a deeper look into, there's a couple of things I would like to highlight in this one, and one is on the COGS, cost of goods sold, which is a significant increase in Q3, which also, of course, then impacts the result for the Q3. It's a combination of the product mix that we're selling, as you saw on the charts, that we are selling much more of the Frontline and we're selling much more of the Field versions and not so much, I would say less of the XRY version of this one. There is also one thing that sticks out a little bit.
There was one of our larger customers that also made a hardware swap of certain hardware on packages that still were valid licenses, so maybe it stuck out a little bit extra. There's no worries. We know that when this license expires, which they will do, in the near future, they will renew those. This is why you also need to balance out this through the quarters. Yes, we have increased cost for cost of goods sold based on the situation in the market, but this quarter was exceptional. I think, percentage-wise, we will go back to a more to another level after that. Another one is personnel cost. You can see that for the quarter, it goes up from SEK 42 to SEK 49.
Well, we haven't increased that much in terms of new employees. You're at a glance, you might say, "Oh, wow, you increased the salaries by 20%." No, that's not the truth. Maybe staff would be happy if we could do that, but that's not the situation. First of all, there is a impact for currency exchange on costs as well as on revenue, so it means that we have approximately 32%-33% of our staff that is not paid in SEK, but they are representing approximately 44% of the salary cost. A significant part of that increase is also an impact for the currency exchange rate.
We also have, you know, recruiting cost for the turnover of our staff, and we also see that there is, of course, increase in salaries in general, and the demand for good staff is a competition. When we have a turnover of staff, we normally, I mean, there's a slight increase in the salary. That is what impacting the cost. I think it's also important to remind ourselves that we are on a growth path. For the nine-month period, we have a growth, both even cleaned out from the currency exchange rate. If you take a look at the balance sheet, I mean, of course we do good.
We increase our sales, so that total equity and liabilities is increasing from SEK 217.4 million to almost SEK 220 million, which is great. It means that we build up the value of the company, and we should do that. I mean, we have had that. One thing that might stick out and say that it's the accounts receivable. It says here that we have SEK 110 million in accounts receivable, which is good, but our business is very driven towards the end of the budget years but also end of the quarters.
That we have an accounts receivable that is SEK 110 million is just showing that we have a lot of our sales for each quarter late into the quarters. We expect us to see a good positive cash flow outcome of that during Q4. That said, if we have a great Q4, we probably have a pretty high accounts receivable for Q4 as well. We have no customer loss in several years. Yes, we have had some customers paying late, but due to the nature of our customers, which seem governments, 99% or even more say is in governments. Sooner or later we are getting paid for that. That's the comments for the consolidated balance sheet.
Look, glance at what happens on the market trends. There's several things. First of all, I would like to say the general demand for what we are doing is increasing, and I would say specifically, that in Europe now, due to the situation of a more worrying world, both nationally and internationally, we see an increased demand, and not only demand for what we do, but security in general, but specifically also what we do. There's a couple of things that is important while this is happening, and that is compliance with regulations. You know, and I won't speak a lot, and I won't speak to today about the FORMOBILE program. But it's not only important what you can do, also how you do it.
Why should the police be able to extract it, and what should they be allowed to extract? Which is very important, and we top perform on those demands, so we can set up different regulations and be 100% compliance with what the national law says about on what conditions and what can they begin on. That demand is just increasing. There is also a big difference between fast and deep analysis. What do I mean by that? We see a trend here that if I should explain it shortly, normally we sell to the forensic labs. They use the XRY Office package that goes into that one. They extract that information. What we see happening now is that there's one category of devices that are even more important that they wanna do even deeper analysis on.
Due to that, they become more and more complex and harder and harder to get that information. It takes actually basically longer time, and that's also why we saw that the demand for the AAL, for instance, is increasing. That's one direction it goes towards. The other direction is that, okay, we don't have time or for many different reasons, we don't, can't, or won't do a deep analysis. That means that we want to do it further out or closer to where the crime or suspect or crime is or happening. Therefore we wanna use more Frontline. We can see that it tears apart to two different areas there. Either you wanna do it, you know, in a controlled environment fast, just get the information, are there any clues here? or you want to do a deep, deep analysis of it.
Happy to see, as you, if you remember now the figures that we have a increase in sales both in Frontline, significant increase, and Field, both of those are sort of the fast analysis. We also have an increase in sales of our, we call our AAL solutions, the Advanced Acquisition Labs, which is sort of part of the deep analysis of that information. Cloud-based solutions becomes more and more questioned, and here is a big difference between different countries. Some countries still say, "We will never go to cloud. We can't store anything in the cloud. We don't want anything in the cloud. We want to run everything on our own servers or our on-prem." While others are more or less open to go all into cloud.
We see a big opportunity here, but also that we need to do an investment because we need to supply both for those who want to do on-prem services, feature functions, but also we need to do it for those who says, "Well, we are going towards cloud now." There will be a transition period where we need to balance and bridge over between these two platforms. It's also more and more important due to the situation in the world that the governments do a deeper analysis of whom are they doing business with. Who are they doing business with? We can see that our questions about who we are as a company, who is working here, what's your background, that's just increasing, that demand is just increasing.
I think it's good that we are a publicly listed company. We have the long track record. We are European-based, so we have a high trustworthiness, but that is a part that will be becoming more and more important, which is good because they wanna do more long-term business with us. The stickiness is much higher when you do this kind of businesses. That's what I'm saying here. They wanna buy from local companies. Now, what the definition of local companies is, but it becomes more important not only what you do, also who you are doing business with. Some important tasks that happened during the quarter for us. I can see the quarter is figure-wise, maybe we would have hoped and expected to do more. Business-wise, I would say it's been a good quarter.
A lot of things is happening. We have had a full service agreement with some large, important customers. What does that mean? It means that we have a larger engagement that we, of course, get paid for, but also the stickiness higher. We are part of their whole infrastructure. We are part of their processes, and it means that they gave us the trust to do that. The relationship is meant to be there for many years, and we see a huge growth potential within those existing customers. We also have signed a frame agreement with one of the European defense industries and the defense departments which have been going on for a long time. It's great. We know it's gonna evolve and develop during then.
We are involved in so many different types of initiatives that we haven't been before. That is based on what I just said in terms of they wanna buy local. They wanna buy from a company with trustworthy that has a good track record that they've been doing business for a long time with. The whole industry, at least. Yeah, the whole industry is now going from being, "Okay, we buy these type of tools based on features." Yes, features are important. We need to have the great features and to fulfill that.
Yes, that's just a sanity check, and after that they wanna buy from yeah, what I just told you about trustworthy and local and someone that they can rely on long-term, and they wanna engage us much more than just buying products from us. We must not forget sometimes when "Well, what's new and exciting happened this quarter? What's new?" Well, a lot of our business is just doing more of the same, and more of the same must not forget that this is not an easy task to do. It requires significant amount of work.
I just wanted to show you that for every quarter, we do a major release for each and every of our product families which consists of a lot of feature functions that been added to these devices. It's a machine that produce more than most, I would say, compared to software companies. Normally, a software company may do major release once or maybe twice a year. That's a lot. We do four major release for all four categories of products per quarter. This is just the nature of our business because being in the business we're in means that we are probably in one of the fastest-moving industries you can think of, which means the mobile phone market, which I mean you can't think about anything that's developing faster than what we do.
We're doing great here. What do I see as potential growth for the future? Well, as I said, do more of the same. That said, I mean, we should take lead in opportunity to access data from cell phones. That's gonna continue. We have some new products that we are developing and looking into coming out. We focus on new verticals and new segments. But still, I believe that the majority of our growth will still come from existing customers or at least the same category of customers that we're having. It's a huge untapped market there. Why should they continue to buy from us? Well, there is three major things that I believe that we have paved for the future growth, continued future growth, I would say, and that's the positioning we're having. We have a great positioning.
I used to say to people that, I mean, want to come to work for us or to the board or wherever, "If you speak to almost any customer using XRY, how is it to do business with MSAB?" I would say 99.5% will say, "It's great. It's a good company. They keep their promises. They deliver high value." Do we deliver everything? No, we don't do that. The positioning we have on the market and reputation we have on the market is awesome. Market demands, worrying world, increasing crime rates. Well, an understanding for that, finding evidence or being a more efficient force of solving crimes is in the digital world nowadays. Of course, our strong offers that we are having.
All in all, I think it was an okay quarter, figure-wise. I believe that we will continue to perform. Just as a reminder, you have to look at MSAB for a more longer term and not just based on individual quarters. That said, that was my presentation for the Q3 nine-month report. If you have any questions or would have a deeper analysis, send an email to me, and I'll reach out. I reserved some time here during the morning, so I can reach out to you individually. By that, thank you for listening in, and we stay in touch. Bye-bye.