Interim Report Jan-June 2010

•    Revenue from continuing operations totaled SEK 90.3 million (90.5), down 0.2% (24)
•    Software revenues (licenses and maintenance) rose 7% (9)
•    Operating profit equaled SEK 4.6 million (8.1), the operating margin 5% (9)
•    Net profit totaled SEK 2.7 million (7.4), the profit margin 3% (8)
•    Earnings per share after tax equaled SEK 0.9 (2.6)
•    Cash flow ended at SEK -11.2 million (2.7), and cash, cash equivalents, and current investments at SEK 30.6 million (41.0)
•    The equity/assets ratio was 34% (33)

 

CEO’s comment on performance

“The turnaround we saw in the market in the first quarter continued, and we are again seeing heightened interest in procurement of ERP systems among large companies in the SME segment. During the second quarter, Jeeves also enjoyed healthy sales to new customers. For example, several large companies in the SME segment chose to implement Jeeves ERP systems in their international business operations.

I am very satisfied with Jeeves’ solid sales to new customers and that we have won many orders in competition with other strong players, but the effects of the recession continue to impact our international business. Thus we are working hard to boost capacity utilization for our consultants and fine-tune our operations.

I still have a positive outlook on the future based on our improved list of prospects and that many customers plan international roll-outs of Jeeves ERP systems in several countries. These factors, combined with our appealing market offering that is highly flexible and offers outstanding customer benefits at a low cost of ownership, bode well for the future.”

In the first six months Jeeves continued to focus on the core-business (software license sales and maintenance). Jeeves has divested of the business operations in the Swedish subsidiary, Reveny, and cutbacks are made in Logit with regards to services that are not related to Jeeves products. This leads to a decline in sales with 0.2% (24). Comparable units reported growth. Jeeves’ Swedish business operations posted healthy results through organic growth. In several of our international operations, license sales remained sluggish, with low capacity utilization for the consultants who support international roll-out projects. Operating profit fell, to SEK 4.6 million (8.1).”