Interim Financial Report - Cinnober Financial Technology AB

Period January 1, 2015 – September 30, 2015

  • Net sales for the period amounted to SEK 209.8 million (SEK 204.1 million).
  • Operating profit for the period amounted to SEK 9.0 million (SEK 2.8 million).
  • The loss before tax for the period amounted to SEK 27.3 million (profit SEK 2.4). In the third quarter, the book values of shares in the companies Binary Event Networks Inc and Quadriserv Inc were written down in their entirety by a total of SEK 36.8 million. Although this entails a non-recurring negative impact on earnings, neither the consolidated operating results nor cash flow are affected by the impairments.
  • Earnings per share before dilution for the period amounted to a loss of SEK 4.74 (profit SEK 0.53).
  • The proportion of recurring revenue for the period amounted to 61 percent of net sales.
  • During the period, ASX, one of the world’s ten largest markets, chose Cinnober as the supplier of a new trading system for both equity and derivatives trading. This is categorized as a major* deal.
  • Cinnober has been selected by the European Commission to receive funding of more than EUR 2 million to further develop its clearing technology for European banks.
  • Following the end of the period, one of the world’s largest exchanges has initiated a major design study involving Cinnober’s clearing technology.

    *See commercial definitions on p.16 in the full Interim Financial Report.

“The market is currently pervaded by increasing optimism, associated in particular with increasing trading volumes, which generate a willingness to invest in systems in our niche,” says Veronica Augustsson, CEO, in a comment. “A gradually increasing proportion of license revenues, combined with the influx of customers over the past year, is beginning to have a positive impact on sales and operational profitability. This is reflected in our net sales for the third quarter of the year amounting to SEK 74.0 million, representing an increase of SEK 9.9 million compared with the corresponding quarter in 2014. At the same time, operating income for the third quarter amounted to SEK 8.0 million, compared with SEK 0.0 million for the corresponding period last year.

Attachment:  Interim Financial Report January 1, 2015 – September 30, 2015

Cinnober Financial Technology discloses the information provided herein pursuant to the Securities Market Act (Sw. lagen om värdepappersmarknaden). The information was submitted for publication on November 5, 2015 at 11:00 (CET).

For further information

Veronica Augustsson, CEO, phone +46 8 503 047 00, veronica.augustsson@cinnober.com

Cinnober in brief

  • Cinnober develops mission-critical system solutions for exchange trading, clearing, risk management and other financial services.
  • The target group consists primarily of international exchanges, clearinghouses, banks and brokerages.
  • The company was founded in 1998, currently has 245 employees in Stockholm and Umeå (excluding consultants) representing 29 nationalities.
  • The offering includes solutions in price discovery, order matching, market data, index calculations, clearing, risk management and market surveillance.
  • The Cinnober share is traded on the Nasdaq First North. Avanza is the Certified Adviser.

About Us

Cinnober Financial Technology is an independent, world-leading supplier of financial technology. Founded in Sweden in 1998, the company has offices in Stockholm, Umeå and London. Cinnober provides solutions and services to leading trading and clearing venues, including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are largely based on the TRADExpress™ Platform, incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility. The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and market surveillance. Cinnober’s customers include the Asia Pacific Exchange, Australian Securities Exchange, B3, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand. Cinnober’s shares are traded on the Nasdaq First North exchange and the company’s Certified Advisor is FNCA Sweden AB. For additional information, please visit www.cinnober.com.

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