Year-end Report Jan–Dec 2010
- Revenue from continuing operations totaled SEK 177.0 million (180.4), down 2% (+13)
- Software revenues (licenses and maintenance) rose 7% (6)
- Operating profit before depreciations and amortizations was SEK 27.7 million (28.4)
- Operating profit was SEK 1.9 million (14.3), the operating margin 1% (8). Focusing the product strategy caused an impairment loss of SEK 11.1 million in R&D
- Net profit totaled SEK 0.1 million (10.1), the profit margin 0% (6)
- Earnings per share after tax equaled SEK 0.02 (3.54)
- Cash flow was SEK -16.0 million (3.8), and cash, cash equivalents, and current investments totaled SEK 25.3 million (42.2). Redemption of Jeeves’ convertible debentures has been made, SEK 12.6 million.
- The equity/assets ratio was 34% (33)
- The Board of Directors proposes a dividend of 1.50 per share (1.50)
The market has returned to normal levels, and Jeeves is expanding sales to new customers. Software revenues increased 7% during the period. EBITDA was SEK 27.7 million, in line with last year. However, the operating profit of SEK 1.9 million fell short of our expectations. We must note that fourth-quarter operating profit was charged impairment of SEK 11.1 million on capitalized research and development expenditure.
Sales for the full year ended at SEK 177.1 million, compared to SEK 181.4 million the preceding year. Sales growth faltered as a result of the divestment of the business in Reveny. During the period, revenue for comparable units increased year on year.
Our Nordic operations are doing well, as sales of licenses to new customers expanded 32% during the year. New sales were robust primarily in Sweden and Norway, which means we are winning market share. Capacity utilization in our Norwegian consulting business improved but has yet to return to the desired level. At the same time, this year’s earnings were reduced by restructuring costs.
International sales grew, and about 40% of revenues come from customers outside Sweden. However, new sales by our international partners outside the Nordic region remained weak. Our international consultants had satisfactory capacity utilization in several international roll-out projects initiated during the year.
During this quarter we made the decision to focus our product strategy on the Microsoft-based platform that serves as the foundation for our current ERP systems. To date, we have enjoyed great success, and this expands our possibilities for leveraging the potential inherent in the platform.
I have great faith in Jeeves. We have won ground as an ERP system attractive to small and medium-sized enterprises. During the year, our partners developed several cutting-edge concepts and industry solutions. New sales are increasing, we are winning more major orders in the upper portion of the SME segment, and a growing number of customers are choosing to roll out Jeeves internationally.
About Jeeves Information Systems
Jeeves Information Systems AB (Jeeves) develops ERP systems for small and midsized companies. Every day, Jeeves' ERP solutions; Jeeves Universal, Jeeves Selected and Garp, are used by more than 4 000 companies in over 40 countries. All products offer wide functionality at one of the lowest total cost of ownership in the market. Head office is located in Stockholm, Sweden and Jeeves is listed on NASDAQ OMX Nordic Exchange (Small Cap) since 1999. For more information, please visit www.jeeves.se/en