IBS Interim Report January - June 2009

Press Release
2009-07-21

IBS reports strong license revenue growth, and positive net earnings in the second quarter.

  • Second quarter new license revenue grew by 64% to SEK 72 m (44). For the first half year the new license revenue was SEK 97 m (67).

  • Second quarter total license revenue grew by 33% to SEK 146 m (110). For the first half year total license revenue was SEK 236 m (194).

  • Total second quarter revenue down 7% to SEK 480 m (516), driven by professional services revenue down by 13% to SEK 251 m (287) and hardware and other revenue down 30% to SEK 83 m (119). Total revenue for the first half year was down 7% to SEK 931 m (1 000), professional services revenue down by 11% to SEK 524 m (586) and hardware and other revenue down by 22% to SEK 171 m (220).

  • Second quarter EBITDA* up to SEK 47 m (9). EBITDA* for first half year was SEK 59 m (-14).

  • Second quarter net earnings SEK 6 m (-25). First half year net earnings SEK -84 m (-71).

  • Improvements in profitability despite decrease in total revenues due to reductions in costs and headcount resulting from restructuring program.

  • Cash flow from operating activities amounted to SEK -9 m (-10) for the second quarter. Excluding restructuring effect of SEK -53 m (0), operating cash flows were SEK 44 m (-10). Cash flow from operating activates for the first six months amounted to SEK -76 m (-46).

  • Major contracts signed during the second quarter in the US and Europe contributing new license revenue of SEK 10 m and SEK 16 m respectively.

  • The last day of trading in the IBS B share on NASDAQ OMX Nordic was May 8 and the first day of trading on the NASDAQ OMX First North was May 11.

Summary of January - June 2009 2009 Q2 2008 Q2 Var % 2009 Jan-June 2008 Jan-June Var %
Total revenue, SEK m 480 516 -7% 931 1000 -7%

New sales

72 44 97 67

Renewal revenue

73 66 139 127

Software licences, SEK m

146 110 33% 236 194 22%

Licence margin

93% 86% 7 p. p. 93% 88% 5 p. p.

Professional services revenue, SEK m

251 287 -13% 524 586 -11%

Professional services margin

11% 15% -4 p. p. 12% 15% -3 p. p.

Hardware and other revenue, SEK m

83 119 -30% 171 220 -22%

Hardware and other margin

19% 19% 0 p. p. 18% 19% -1 p. p.

Operating profit, SEK m

-2 -26 -88 -81

Earnings after financial items, SEK m

-4 -23 -92 -86

Net earnings, SEK m

6 -25 -84 -71

EBITDA *

47 9 59 -14

* Earnings before interest, taxes, depreciation, amortization, restructuring costs and profit/loss from sale of subsidiaries