Interim Report July – September 2012

July – September 2012

• Sales were SEK 273.9 million (321.8).
• EBITDA was SEK 4.5 million (15.4) and the EBITDA margin was 1.6% (4.8).
• EBIT was SEK -2.9 million (5.6) and the EBIT margin was -1.1% (1.7).
• Earnings per share were SEK -0.12 (-0.04).

January – September 2012

• Sales were SEK 985.5 million (1,087.9).
• EBITDA was SEK 33.4 million (22.6) and the EBITDA margin was 3.4% (2.1), which includes restructuring costs of SEK 5.0 million for closing the office in Romania. EBITDA from operating activities was SEK 38.4 million (50.6) and the EBITDA margin was 3.9% (4.7).
• EBIT was SEK -1.0 million (-158.6) and the EBIT margin was -0.1% (-14.6), which includes the above restructuring costs and a capital loss of SEK 11.8 million associated with divestment of the Chinese operations. EBIT from operating activities was SEK 15.8 million (20.4) and the EBIT margin was 1.6% (1.9).
• Earnings per share were SEK -0.45 (-4.55).

Key events after the end of the period

• New rights issue oversubscribed.
  

Comments from the CEO

The rights issue is almost completed and I am pleased to be able to note the support we have received from our shareholders. Cybercom is now more strongly equipped through a better customised financing solution. We are strengthening our working capital and achieving a greater ability to focus on developing our business and, through this, to be able to achieve our strategic and financial goals.

During the seasonally short third quarter, we noted a more cautious market, which partly impacted the company and led to weak development in profitability and sales. EBITDA amounted to SEK 4.5 million on sales of SEK 273.9 million. We have a continuing unsatisfactory utilisation rate in some parts of the business. In other parts, however, we see a continued stable utilisation rate. We continue to experience strong demand in the industrial segment and the public sector. New interesting business signed during the quarter includes IDG, the Swedish Social Insurance Agency, Jokakoti (Finnish equivalent to Hemnet.se), Sandvik Construction and Mining, Stockholm Public Transport and ST-Ericsson.

We are continuing with the process of change in the company that I previously communicated, to develop our business and streamline operations. Top of the agenda is to improve profitability.

An important component of the change process is a refocusing on the Nordic client base. The Nordic countries currently account for 90% of our sales. Operations in Romania are now completely discontinued. Our centres of excellence in India and Poland function as offshore and nearshore centres for our Nordic business.

We are now streamlining our operations by removing a hierarchical level and integrating the subsidiary Cybercom Sweden with the parent company including the administrative functions. This makes us able to work more closely with our clients and fully operate as an integrated group with common processes and support functions.

Cybercom must be client oriented and nimble, with short decision paths and a common agenda. With the new organisation in place, we are mobilising our strengths in order to sharpen our competitiveness and pursue our plan for improved profitability. At the same time, we are well aware of the need in the short term to be able to navigate an approaching tougher market climate.

Stockholm October 25, 2012

Niklas Flyborg
President and CEO

For additional information, please contact:

Niklas Flyborg, President and CEO +46 70 594 96 78
Camilla Öberg, CFO +46 73 398 50 01
Kristina Cato, Communications Director and IR Manager +46 70 864 47 02

Cybercom is an IT consulting company that assists leading companies and organisations to benefit from the opportunities of the connected world. The company’s areas of expertise span the entire ecosystem of communications services. Cybercom’s domestic market is the Nordic region, and in addition the company offers global delivery capacity for local and international business. Cybercom was founded in 1995 and has been quoted on the NASDAQ OMX Stockholm exchange since 1999.