IBS forecasts weaker revenue and results

IBS forecasts weaker revenue and results In accordance with previous communiqués, the market for business software is expected to pick up during the second half of 2000, after the decrease associated with the turn of the millennium. After analysing our May 2000 accounts, we have concluded that the development is positive, but slower than anticipated. This is especially evident in the important US market. A restructuring program, including a certain reduction in capacity, has been implemented by our US subsidiary. During the first half of 2000, revenue is expected to remain unchanged in relation to the same period last year, namely SEK 1,2m. Subsequently, we now forecast that revenue growth for the full year will reach approximately 15%, with an operating profit of SEK 30-90m. Thus, the earlier forecast of a strong increase during the second half of 2000 remains unchanged. However, growth will start from a lower level than previously anticipated. As stated in November 1999, IBS will receive a pension premium refund of some SEK 50m from the Swedish insurance company SPP. This amount will be accounted for during the second quarter of 2000, in accordance with the recommendations of the Swedish Accounting Standards Council. This amount is not included in the figures stated above. Profits after financial items for the first half-year 2000, including the pension refund, are expected to reach SEK 5-10m. The updated year end forecast after financial items, including the refund, is SEK 80-140m. IBS' interim report for January-June, 2000, will be published on 17 July, 2000. For more information, please contact: Staffan Ahlberg, CEO, IBS Björn Bontin, CFO, IBS AB Tel: +46 8 627 2420, +46 70 Tel: +46 8 627 24 02 or 627 2420 +46 70 627 2402 Email: staffan.ahlberg@ibs.se Email:bjorn.bontin@ibs.se IBS AB, with headquarters in Stockholm, is listed at the Stockholm Stock Exchange. The IBS Group is a world-leading international supplier of Internet-enabled supply chain management software and professional services. IBS has a revenue of some SEK 3bn, and some 2,400 employees and 5,000 customers in more than 40 countries. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/06/16/20000616BIT00950/bit0001.doc http://www.bit.se/bitonline/2000/06/16/20000616BIT00950/bit0002.pdf