Year-end report for the abbreviated fiscal year

Year-end report for the abbreviated fiscal year January 1 - June 30, 2000 * Consolidated net sales amounted to SEK 533 million (640: proforma 571). * The consolidated loss after net financial items was SEK -26 million (- 6) after the nonrecurring effects of the SPP refund. * The loss after minority shares and tax was SEK -80 million (8). * The loss per share was SEK -2.82 (0.28). * Viewlocity registered a preliminary prospectus for a listing in the U.S. * Frontec Technical Services changed its name to BlueLabs. The reorganization of Frontec accelerated during the period. New strategic partners were added by Viewlocity, in which Frontec's ownership interest is now less than 50%. Consequently, only the share of equity in Viewlocity - and not its income and expenses - is reported in the consolidated income statement. In August, Viewlocity filed a preliminary application with the Securities and Exchange Commission to list the company on a U.S. stock exchange. In the area of eBusiness, major restructurings have been implemented and resources have been allocated to create a competitive unit with a totally new organization as of September 1. BlueLabs is preparing for a listing on the Stockholm Stock Exchange. Frontec Group Sales and results As Frontec's ownership interest is now less than 50%, only the share of equity in Viewlocity is reported in the consolidated income statement, in accordance with the equity accounting method. Frontec's net sales totaled SEK 533 million (640) during the abbreviated fiscal year. The consolidated loss after net financial items was SEK -26 million (-6). The result was affected positively by new share issues implemented by Viewlocity and a subsequent dilution gain of SEK 97 million, but was charged with SEK -93 million for the share of equity in Viewlocity. The operating loss after goodwill amortization amounted to SEK -16 million (-52), including Group amortization of SEK 17 million (29), of which SEK 5 million (5) is amortization of intangible assets. During the second quarter, the establishment of separate units for eBusiness and BlueLabs as well as preparations for listings of BlueLabs and Viewlocity were again charged against the Group's results. Net financial items amounted to SEK -14 million (1). Tax for the year, including the change in deferred tax, was SEK -54 million (-1). Frontec's transfer of the AMT division to Viewlocity in 1999 resulted in a taxable capital gain for Frontec. The deferment of taxation on the gain expired in the fiscal year January-June 2000, when Viewlocity went from being a subsidiary to being an associated company, resulting in a tax charge of SEK 53 million. The loss after tax amounted to SEK -80 million (8) and the loss per share to SEK -2.82 (0.28). During the second quarter, the Group's net sales amounted to SEK 258 million (337), while the quarterly profit after net financial items was SEK 26 million (-25). The surplus insurance refund from SPP, which amounts to SEK 40 million for the Group, is reported in operating results among items affecting comparability. New management On June 1, Per Tjernberg took over as President and Chief Executive Officer. In August, Björn Sandberg was appointed Chief Financial Officer, succeeding Anders Stensson, who assumed the post of Financial Manager at BlueLabs. The organization was also strengthened through the addition of Mats Modéen as Group Controller. Employees During the first six months, 154 (183) new employees were hired by the Group. As of June 30, 2000, the Group had 1,215 (1,288) employees, of whom 55 (188) were outside Sweden. Employee turnover was 9% (8). Liquid assets The Group's liquid assets, including short-term investments, amounted to SEK 77 million (154) as of June 30, 2000. The difference is primarily due to Viewlocity's SEK 74 million in liquid assets as of June 30, 1999. Investments The Group's net investments for the period amounted to SEK -4 million (16), of which SEK 0 million (1) consists of Group goodwill. Frontec share The number of class A shares amounts to 2,640,000. During the period, 800,000 class A shares were restamped as class B shares. The number of class B shares amounts to 23,966,050 and the number of class C shares to 509,186. The number of shares after the conversion of all outstanding warrants is estimated at 28,430,121. The number of shareholders rose by more than 4,000 during the period and is now up to 22,804 as of June 30, 2000. More than 85% are Swedish shareholders and 90% own less than 1,000 shares. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/25/20000825BIT00420/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/25/20000825BIT00420/bit0002.pdf The full report

Subscribe