Interim Report Jan–Sept 2010

  • Revenue from continuing operations totaled SEK 130.1 million (130.0), up 0.1% (17)
  • Software revenues (licenses and maintenance) rose 7% (7)
  • Operating profit totaled SEK 8.7 million (10.4), the operating margin 7% (8)
  • Net profit totaled SEK 5.3 million (8.7), the profit margin 4% (7)
  • Earnings per share after tax equaled SEK 1.9 (3.1)
  • Cash flow ended at SEK -13.8 million (-7.3), and cash, cash equivalents, and current investments at SEK 27.5 million (31.0)
  • The equity/assets ratio was 37% (36)

 

CEO’s comment on performance
The third quarter was steady, with no major surprises. Software revenues as well as operating profit were higher in the third quarter compared with the same quarter last year. The market turnaround we saw in the first six months continued, and the SME segment continued to show lively interest in the procurement of ERP systems. New sales in Sweden were satisfactory, while sales elsewhere remained weak.

Software revenues showed a growth of 7% during the period. Services, however, were down 17% mainly due to the divestment of the operations in Jeeves’ Swedish subsidiary Reveny. Altogether this leads to a positive growth in the core business but no growth in total revenue. Jeeves’ Swedish operations posted healthy earnings thanks to positive organic growth during the period. In our international business operations, license sales did not meet expectations. Operating profit decreased, to SEK 8.7 million (10.4).

Our efforts to improve the capacity utilization of our consultants on our international projects and to adjust business operations have yielded results. In an analysis of our foreign operations, we found that the limited sales are offset somewhat by the significant role our foreign partners play in international business, by our customers gaining access to local partners who provide Jeeves know-how. I remain confident of the future, thanks to our improved list of prospects and the many international roll-outs of Jeeves ERP systems that our customers are planning in multiple 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.