IBS Interim Report January - September 2008

Solna, Sweden, October 23, 2008 - IBS AB (listed on the OMX Nordic Exchange Stockholm, Nordic list, Small Cap, Information Technology: IBS) today presented the Group’s interim report for January 1 – September 30, 2008. The information was submitted for publication on October 23, 2008, 8:00 a.m.

January – September

Total revenue amounted to SEK 1,422 m (1,549).
Net profit amounted to SEK -181 m ( 24).
Earnings per share amounted to SEK -1.86 (-0.28).
Operating profit amounted to SEK -173 m (-25).
Earnings after financial items totaled SEK -175 m (-29).
Cash flow from operating activities amounted to SEK 45 m (27).

July – September

Total revenue amounted to SEK 422 m (477).
Net profit amounted to SEK -111 m (0).
Earnings per share amounted to SEK -0.90 (-0.00).
Operating profit amounted to SEK -92 m (7).
Earnings after financial items totaled SEK -89 m (2).
Cash flow from operating activities amounted to SEK 17 m (-49).
Goodwill impairment of SEK 53 m (0) and adjustment of deferred tax assets of SEK 26 m (0).
On September 23, IBS announced a new strategy, focusing on key verticals and reducing staff with up to 500 employees.

Important events after end of period

New CEO and President Mike Shinya joined IBS on October 15.
Divestment of non-profitable operations in Portugal in October.

Summary of January – September 2008	2008	2007	Change %
Total revenue, SEK m	1 422	1 549	-8%
- New sales - Renewal revenue Software licenses, SEK m	93 190 284	112 196 308	-8%
*License margin*	88%	92%	-4 p.p.
Professional services revenue, SEK m	845	878	-4%
*Professional services margin*	15%	19%	-4 p.p.
Hardware and other revenue, SEK m	293	363	-19%
*Hardware and other margin*	19%	20%	-1 p.p.
Operating profit, SEK m	-173	-25
Earnings after financial items, SEK m	-175	-29
Net profit, SEK m	-181	-24
Operating margin, rolling 12-month basis*	-2.6%	2.8%	-5.4 p.p.