IBS Year-end Report January - December 2010

Press Release
2011-02-16

After a weak performance in the first half-year, IBS initiated a full business review in the beginning of the second half-year which resulted in substantial actions on cost reductions and revenue generating programmes resulting in significantly improved performance.

JULY-DECEMBER 2010 (SECOND HALF-YEAR)

  • Total revenue down to SEK 635,7 m (780,7), with professional services revenue down to SEK 343,9 m (404,3) and hardware and other revenue down to SEK 163,1 m (201,6)
  • Total license revenue declined to SEK 128,7 m (174,8), where new license sales (“ILF”) declined to SEK 40,2 m (72,8) and renewal license sales (“RLF”) decreased to SEK 88,5 m (102,1)
  • EBITDA* amounted to SEK 9,6 m (-11,1). The EBITDA result for the fourth quarter amounted to SEK 18,0 m
  • Net earnings amounted to SEK -71,9 m (-349,0)
  • Cash flow from operating activities for the second half-year improved to SEK -34,5 m (-44,4)

JANUARY-DECEMBER 2010 (FULL YEAR)

  • Total revenue down to SEK 1 299,6 m (1 611,5), with professional services revenue down to SEK 749,0 m (881,9) and hardware and other revenue down to SEK 299,2 m (371,9)
  • Total license revenue declined to SEK 251,4 m (357,7)
  • EBITDA* amounted to SEK -62,4 m (16,2) including one-off costs relating to the strategic discussions amounting to SEK 22,7 m
  • Net earnings amounted to SEK -192,4 m (-433,4)
  • Cash flow from operating activities for the year improved to SEK -95,5 m (-99,3)
  • New operational structure organized into three business units, Enterprise, Bookmaster and Iptor
Summary of January - December 2010 Q3 2010 Jul-Sep Q4 2010 Oct-Dec H2 2010 Jul-Dec H2 2009 Jul-Dec FY 2010 Jan-Dec FY 2009 Jan-Dec
Total revenue, SEK m 260 376 636 781 1300 1612
New sales (ILF) 12 28 40 73 66 154
Renewal revenue (RLF) 45 44 89 102 185 204
Software licenses, SEK m 57 72 129 175 251 358
Professional services revenue, SEK m 165 179 344 404 749 882
Hardware and other revenue, SEK m 38 125 163 202 299 372
Operating profit, SEK m -54 -9 -63 -189 -296 -308
Earnings after financial items, SEK m -55 -14 -69 -192 -214 -315
Net earnings, SEK m -53 -19 -72 -349 -192 -433
EBITDA * -8 18 10 -11 -62 16

* Earnings before interest, taxes, depreciation, amortization, restructuring costs and results from sale of subsidiaries