INTERIM REPORT FOR THE PERIOD JANUARY-JUNE 2007
HiQ – accelerating organic growth and strong operating margin
• Net sales increase by SEK 70.0 million to SEK 476.2 (406.2) million, an increase of 17 percent
• Operating profit (EBIT) increases to SEK 90.3 (76.2) million, an operating margin of 19.0 (18.8) percent
• Pre-tax profit increases by SEK 14.2 million to SEK 90.9 (76.7) million
• Profit after tax increases to SEK 65.0 (54.4) million
• Earnings per share increase to SEK 1.30 (1.10)
• Cash flow from operations amounted to SEK 24.9 (25.3) million
• HiQ named Sweden’s best IT consulting firm in a survey carried out by Veckans Affärer
• On 27 March the Annual General Meeting approved a dividend of SEK 2.10 per share, totalling around SEK 105 million, which was paid out on 4 April
• HiQ has received a new order from the Swedish Defence Materiel Administration (FMV) for the development of simulators for training fighter pilots for the JAS 39A Gripen. The order amounts to SEK 22.0 million
• HiQ has signed an agreement worth around SEK 30 million over 5 years with Heidelberger Druckmaschinen AG
• HiQ has acquired MobilEyes AB, experts in the development of mobile products, applications and services based on Symbian. The company has around 60 employees in Stockholm and Moscow
• After the end of the period HiQ signed new framework agreements with Ericsson and OMX
2007 in brief
HiQ developed very strongly in the first half of 2007. Net sales for the period increased by 17 percent and the operating margin was 19 percent.
HiQ holds a clear position in the Nordic region as a supplier of services within communications, software development and simulation. With close to 1,000 employees, HiQ is today one of the significant players in the Nordic market within these areas.
The market for IT services in the Nordic region is characterised by strong demand. HiQ works in long-term customer relationships with internationally leading clients in many industries, such as Ericsson, FMV, GTECH, Nokia, Saab, SEB, SonyEricsson, Tele2 and Volvo.
HiQ is growing organically, supplemented with acquisitions. In the second quarter HiQ acquired the IT consultancy MobilEyes AB, which employs around 60 people. HiQ MobilEyes specialises in Symbian and works on the development and testing of mobile services and products – an area in which demand is increasing substantially. MobilEyes works with internationally leading clients such as SonyEricsson, UiQ and Telenor.
HiQ MobilEyes adds top-level expertise in the development and testing of mobile applications and new generation smart phones.
During the period HiQ continued to work on recruiting more staff, with very good results. HiQ has a strong brand in the labour market and attracts highly capable employees even in a very competitive market. The rate of staff turnover demonstrated a declining trend during the period.
HiQ is developing well in its various markets. Gothenburg and Lund are markets that for HiQ continue to be characterised by very strong growth.
HiQ has a strong position within the automotive industry and during the period a new initiative was begun in respect of technological development of active safety. We aim to recruit 25 new consultants in this area. The term Active Safety encompasses technology and systems to prevent and avoid vehicle accidents.
During the period HiQ enjoyed good growth in sectors such as finance, defence and telecoms.
For further information, please contact:
Lars Stugemo, President and CEO, tel. +46 (0)8-588 90 000
Annika Billberg, Head of Corporate Communications and Investor Relations Manager, tel. +46 (0)8-588 90 015, +46 (0)704 200 103
Parent company address
HiQ International AB (556529-3205)
Mäster Samuelsgatan 17, 9th Floor
103 91 STOCKHOLM
tel.: +46 (0)8-588 90 000
fax: +46 (0)8-588 90 001