Year-end Report Jan-Dec 2008

January–December 2008

•    Revenue reached SEK 158.3 million (130.1), up 22% (9)
•    Software revenues (license and maintenance) increased by 11% (10)
•    Operating profit was SEK 16.6 million (18.4), giving an operating margin of 10% (14)
•    Profit after tax totaled SEK 13.1 million (14.8), giving a profit margin of 8% (11)
•    Earnings per share after tax were SEK 4.6 (5.0)
•    Cash flow was SEK 2.1 million (6.3), and cash, cash equivalents, and current investments totaled SEK 38.2 million (36.3)
•    The equity/assets ratio was 32% (34)
•    The Board of Directors proposes a dividend of SEK 1.50 per share (1.50)

CEO’s comment on earnings
Jeeves is reporting a healthy profit for full-year 2008, with revenues from software rising 13% in the fourth quarter. Operating profit weakened, however, chiefly owing to costs of establishing business abroad.

"I am satisfied with Jeeves’ 2008 sales growth of 22% (9). Our Norwegian acquisition contributed to healthy growth during the year. Jeeves continues to sell and sign up new customers despite the economic slowdown. The number of new customers was 20% more in 2008 than in 2007."

Jeeves’ international initiatives continue. We are pleased that our foreign partners are contributing a growing proportion of revenues as a whole, even though some markets have been slower than last year.

"In my judgment, the underlying demand for ERP systems remains strong. Today, companies are prioritizing investments to boost efficiency, and a modern ERP system plays a vital role there. However, nowadays new sales are being made by only a few actors. Jeeves is one of these, and we are well-positioned offering top-class ERP systems at the lowest cost of ownership in the market. We see keen interest in the market and enter 2009 with a large pipeline. Despite this, uncertainty concerning the economic outlook makes sales forecasts more difficult than previously."