Interim Report Jan-Mar 2011
January - March 2011
- Net sales totaled SEK 46.0 million (42.6), up 8% (-7)
- Software revenue (licenses and maintenance) rose 13% (2)
- Operating profit (EBITDA) was SEK 7.5 million (5.5), and the operating margin (EBITDA) 16% (13)
- Net profit per share was SEK 0.80 (0.60)
- Cash flow from operating activities equaled SEK 12.2 million (2.1)
CEO’s comment on performance
Jeeves posted a solid first quarter with healthy organic growth and improved profitability. Jeeves’ sales for the first quarter reached SEK 46 million, up 8%. At the same time, software revenue advanced 13%, to SEK 37 million. We see clear signs that the Nordic market has recovered, resulting in healthy sales as well as heightened interest in Jeeves’ ERP systems. Software revenue doubled in the rest of the Nordic region compared to the first quarter the preceding year.
Profit before depreciation, amortization, and impairment losses (EBITDA) ended at SEK 7.5 million, up 36%. Stronger sales, combined with the cutbacks made during the economic slowdown, helped improve margins. With a more active market in 2011, I see a need for us to augment our delivery organization in the near future.
The first quarter results were heartening mainly because the first three months of the year are usually weaker. Above all, I am pleased that our success in Norway is continuing. In nine months, our Norwegian subsidiary took part in 11 procurement processes and won nine of them. We see ample potential for future growth in the Norwegian market. Outside the Nordic region, we can also report landing several key contracts in the United States.