IBS Interim Report January-September 2004

IBS Interim Report January-September 2004: Specialisation attracts new customers

January - September 2004

Earnings after financial items amounted to SEK -59m (-59).
The professional services margin increased to 19% (18).
Net profit amounted to SEK -48m (-56).
Earnings per share amounted to SEK -0.61 (-0.70).
Total revenue amounted to SEK 1 597m (1 672). The decrease is primarily a result of lower revenue on hardware and other items.

July - September 2004

Earnings after financial items amounted to SEK -37m (-26).
Total revenue amounted to SEK 467m (521).
The decrease in hardware and other revenue affected the total revenue and earnings for the quarter by SEK -56m and SEK -11m respectively.
New international software contracts in specialised industries have been made with Rexel, Maxell, Chaid Nehme and other companies.
New business partner agreements signed in China and Russia.
Earnings from the Swedish operations improved during the third quarter compared with the previous year.

Full-year forecast

The full-year forecast of improved positive earnings after financial items for 2004, compared to SEK 18m for the same period last year, remains unchanged.

Magnus Wastenson, CEO for IBS, comments on the third quarter, 2004:
"We report licence revenues and a professional services margin on a par with the previous year, but significantly lower hardware sales due to the launch of new servers from IBM with an improved price-to-performance ratio. The third quarter is always a seasonally weak period. Results for the Swedish operations have improved in this quarter and measures to increase profitability are going according to plan. We forecast a strong finish for the year, with earnings in the fourth quarter in excess of last year's SEK 78m, and thus anticipate being able to report improved positive earnings for 2004 compared to the previous year."

27 October, 2004