Quarterly Report January - September 2000

Quarterly Report January - September 2000 Operation during the period Revenues for the period amounted to SEK 27.5 million, the highest figure for a 9 month period. This is an increase of 20 % compared to previous year (22.9 MSEK). During the first 9 months of this calender year, very few sales were made of the type of system that ConNova sells by any supplier in the market segments ConNova currently serves. This reflects short-term market conditions. However procurement activity by potential buyers continues and we expect that the market down turn will be temporary. Revenues from additional sales and upgrades ordered by existing customers have exceeded expectations. Operations have focused on customer projects in progress, starting to establish operations within the Internet, mobile and utility market as well as consolidating and enhancing the efficiency of delivery resources. During the autumn the company has strengthened the focus on building up long term partner relations for distribution which is expected to result in partner agreement within the coming 6 months periods and a first order via a new partner during year 2001. The implications of the convergence within telecom and TV is expected to be that many operators will need systems with a functionality that is a combination of what currently is used within each segments. ConNova has also initiated activities to find product partners Our judgement is that we strengthen our position on our existing market segment and facilitate our entry into new segments by integrating our BizManager product with modules and systems from system suppliers within the telecom segment. This opinion is shared by our potential partners that we have contacted so far. For the period expenses amounted to SEK 65.1 million (SEK 44.2 m). All internal product development, a total of SEK 11.3 million, has been charged directly to the profit/loss. At the close of the period the backlog of orders amounted to SEK 16.1 million (SEK 26.4 m). Orders received during the period amounted to SEK 19.1 million (SEK 17.6 m). Internet and utility market initiatives During the first half year we concluded that our BizManager product supports the business model which is now introduced by an increasing number of operators within the convergent media and telecom market. Markets investments within both broadband and the next generation of mobile systems will result in launch of content services, which will demand systems of the kind that ConNova offers . During the third quarter the new market organisation has been integrated with the regular marketing and sales operation within ConNova to increase the efficiency in the sales activities. During the summer our customer service company ConNova TVX carried out the first pilot project for Customer Service for Internet distributed services, the first project outside the TV segment. A stock of prospect consisting of new economy operators has been established. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/10/26/20001026BIT00630/bit0001.doc The full report http://www.bit.se/bitonline/2000/10/26/20001026BIT00630/bit0002.pdf The full report