IBS Year-end Report January – December 2009

Press Release
2010-02-18

IBS reports strong license revenue growth and increased productivity by focusing on core offerings, however restructuring costs, goodwill impairment and change in deferred tax items affect profitability.

  • Second half of the year new license revenue grew by 17% to SEK 98 m (2008: SEK 83m). For the full year the new license revenue increased by 30% to SEK 195 m (150). Main source of growth was the US market.
  • Second half year total license revenue grew by 9% to SEK 240 m (220). For the full year total license revenue increased by 14% to SEK 476 m (419).
  • Total second half year revenue down 14% to SEK 888 m (1 028), in line with the strategic decision to focus on core markets to drive future profitability. Professional services revenue was down by 21% to SEK 445 m (565) and hardware and other revenue down 17% to SEK 203 m (244). For the full year, total revenue was down 11% to SEK 1 819 m (2 034), professional services revenue down by 16% to SEK 969 m (1 150) and hardware and other revenue down by 19% to SEK 374 m (464).
  • Average number of employees was down 29% and number of consultants employed during the year down 30% resulting in increased productivity. For the year revenue per employee increased 26% and professional services per consultant increased 13%.
  • Second half EBITDA* down to SEK 17 m (89). EBITDA * for full year was SEK 75 m (81).
  • Second half year net earnings SEK -349 m ( -207). Full year net earnings SEK -433 m (-274) including goodwill impairment of SEK -131 m ( -53) company taxes of SEK -14 m (1), deferred tax of SEK -86 m ( -3), capitalization and depreciation of previously capitalized Product Development work of SEK -15 m (13)
  • Cash flow from operating activities amounted to SEK -99 m (77) for the year. Excluding restructuring effect of SEK -174 m (-87), operating cash flows were SEK 75m (164). Cash flow from operating activities for the second half year amounted to SEK -44 m (48).
Summary of January - December

2009
2009

Jul-Dec
2008

Jul-Dec
Var

%
2009

Jan-Dec
2008

Jan-Dec
Var

%
Total revenue, SEK m 888 1 028 -14% 1 819 2 034 -11%

New sales

98 83 195 150

Renewal revenue

142 137 281 269

Software licenses, SEK m

240 220 9% 476 419 14%

License margin

90% 91% -1 p. p. 92% 90% 2 p. p.

Professional services revenue, SEK m

445 565 -21% 969 1 150 -16%

Professional services margin

4% 17% -13 p. p. 8% 16% -8 p. p.

Hardware and other revenue, SEK m

203 244 -17% 374 464 -19%

Hardware and other margin

18% 16% 2 p. p. 18% 17% 1 p. p.

Operating profit, SEK m

-238 -208 -326 -283

Earnings after financial items, SEK m

-241 -193 -333 -273

Net earnings, SEK m

-349 -207 -433 -274

EBITDA *

17 89 75 81

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