Interim Report Jan-Mar 2010

- Income from operating activities totaled SEK 42.6 million (45.7), down 7% (33)
- Software revenue (licenses and maintenance) declined 2% (9)
- Operating profit was SEK 2.6 million (4.2), the operating margin 6% (9)
- Net profit totaled SEK 1.7 million (4.2), the profit margin 4% (9)
- Earnings per share after tax equaled SEK 0.6 (1.5)
Cash flow was SEK -3.3 million (6.3), and cash, cash equivalents, and current investments were SEK 38.7 million (44.6)
- The equity/assets ratio was 36% (35)


CEO’s comment on performance
Demand for ERP systems rallies late in the cycle, so the market remained sluggish through the beginning of the quarter. Towards the end of the quarter, however, the activity has increased, especially among the larger companies in the SME segment (5-1000 employees) and the prospect situation has improved significantly going into the second quarter.

Jeeves’ sales for the first quarter have not met our expectations. Sales fell 7% (33%) with the disposal of all business activities in Jeeves’ Swedish subsidiary Reveny at the end of 2009. Sales of comparable units remained with the first quarter of 2009. Jeeves’ Swedish business operations show better results and positive organic growth. Our international business operations however, have had a weak quarter with few license sales and low capacity utilization for the consultants that support international roll-outs. Operating profit fell to 2.6 (4.2).

Given market conditions, Jeeves achieved satisfactory results. We have ridden out the recession with positive results every quarter. We closed sales in a large number of tenders in which we entered bids. I am optimistic about our future progress. Our improved list of prospects, combined with our appealing market offering with high customer value, high flexibility and low cost of ownership, bodes well for the future.