IBS Year-end Report January - December 2007
Solna, Sweden, January 31, 2008 - IBS AB (listed on the OMX Nordic Exchange Stockholm, Nordic list, Small Cap,
Information Technology: IBS) today presented the Group’s Year-end Report for January 1 - December 31, 2007. The information was submitted for publication on January 31, 2008, 8:00 a.m.
January-December 2007
• Total revenue amounted to SEK 2 260 m (2 278).
• Net profit amounted to SEK -4 m (-7).
• Earnings per share amounted to SEK -0.04 (-0.09).
• Earnings after financial items totaled SEK 27 m (-6). Comparative figures for 2006 include restructuring costs of SEK 120 m.
October-December 2007
• Total revenue amounted to SEK 711 m (678).
• Net profit amounted to SEK 20 m (64).
• Earnings per share amounted to SEK 0.24 (0.77).
• Earnings after financial items totaled SEK 57 m (81).
• IBS’ new license sales rose 20% during the quarter, compared with the same period last year.
• Several large license deals were signed with customers, among them the international media company Pearson and Swedish food distributor Servera, regarding installations during 2008.
• Go-live of first installation of IBS Enterprise Financials in a Windows version at a customer in Sweden.
Comments to the 2007 Year-end Results
The last quarter of 2007 showed strong license sales with several large contracts. However, professional services revenue declined due to fewer consultants in combination with calendar effects during December.
Costs for administration and product development increased during the quarter partly due to the fact that activated cost for product development was SEK 18 m lower compared to last year. The decrease was due to more conservative use of activation of product development costs.
The action program that was launched in 2006 has not generated the intended impact on earnings in 2007. In view of this, IBS’ Board of Directors and management have decided on further measures to improve IBS´ profitability during the following years. One of the measures will be to reduce the number of employees who do not generate billable hours by more than 100 full-time positions.