Year End Report 2005 (For full report see attached file or visit www.readsoft.com)
· The turnover for 2005 increased to SEK 400.9 (358.7) million · Results after tax for 2005 was SEK 52.0 (28.0) million · Results per share after tax for 2005 was SEK 1.66 (0.90) · Cash-flow from the current business for 2005 was SEK 65.9 (37.4) million · The turnover for the fourth quarter increased to SEK 125.8(117.4) million · Results after tax for the fourth quarter was SEK 29.8 (19.3) million · Results per share after tax for the fourth quarter was SEK 0.95 (0.62) · Cash-flow from the current business for the fourth quarter was SEK 33.1 (10.0) million
KEY DEVELOPMENTS DURING THE YEAR ReadSoft enjoyed a strong year in 2005, during which sales continued to grow in all its geographic regions. The segment “the United States and the rest of the world” showed a very positive development, generating growth of 31%. The ReadSoft DOCUMENTS for Invoices software obtained 200 new customers during the year, bringing the total number of users to 1,200. Among the new customers was one of the world's biggest pharmaceutical companies, which signed an agreement – worth SEK 30 million over several years – for installations in more than 100 countries. Commerzbank, one of the biggest German banks, chose document automation by ReadSoft to handle half a million invoices per year. ReadSoft delivers its SAP-certified solution in cooperation with Ebydos, its global SAP partner. Vodafone's central service centre for Australia and New Zealand purchased and installed an Oracle-integrated solution consisting of ReadSoft DOCUMENTS for Invoices and InvoiceIT by ReadSoft Consit AS (formerly Consit Development). Among ReadSoft’s other new customers were Leroy Merlin, Portugal telecom, FöreningsSparbanken Finans, BBC, Optimera and Visma. Sales of ReadSoft DOCUMENTS for Forms also experienced solid growth during the year. The biggest agreement for the product was in the United States, where a government agency invested more than SEK 8 million. Laos also used the software from ReadSoft in connection with a census of its six million inhabitants. Karolinska University Hospital in Stockholm purchased the software to read more than 18 million of its medical documents each year. Among the 100 new customers that bought ReadSoft DOCUMENTS for Forms during the year were the British Chamber of Commerce and the Statistics Department of Malaysia. ReadSoft now has more than 3,100 customers that use the software. In early 2005, ReadSoft acquired a 50% stake in ReadSoft Consit in Denmark. The acquisition represented an additional step for ReadSoft into the world of Oracle, offering direct access to the software and associated expertise. That enables effective use of ReadSoft's products for electronic document management in Oracle e-Business Suite. Oracle's certification of the InvoiceIT invoicing software ensures 100% compatibility with Oracle e-Business Suite. The certification further strengthens ReadSoft and ReadSoft Consit in the market for electronic invoicing solutions.