IFS announces increased profitability

IFS announces increased profitability Industrial & Financial Systems, IFS AB, announced a profit of SEK 2 million for the first quarter of 1999, representing an increase of SEK 18 million compared with the first quarter of 1998 (-16). Net sales for IFS totaled SEK 404 million (225), an increase of 79%. This is significantly above the market average, which is approximately 25%. "As a measure of how fast we are expanding, I can mention that compared with the first quarter of 1997 IFS has grown by more than 300% over the past two years," comments Bengt Nilsson, president of IFS. The increase in profits derives mainly from IFS Nordic, while a strong increase in sales has also been noted in Germany, the USA, and Brazil. "IFS' strategy is to invest profits from mature markets in new markets so as to rapidly achieve economies of scale in an increasing number of areas. Our long-term goal is to achieve lasting profitability for the whole company," continues Bengt Nilsson. At the end of May IFS will present the third generation of its component-based ERP system, IFS Applications , which is due to be shipped in the fall. "Our sales success is based on the fact that we were among the first to make the transition to a component-based ERP system, the third generation of which will soon be presented. As a result, we have the leading technology in this area," states Bengt Nilsson. During the period, work has been carried out on the development of entirely new components, including components for e-commerce. Costs for product development during the period amounted to SEK 66 million (40). The number of employees as of March 31 was 2,235, an increase of 74% compared with the corresponding period last year. About IFS and IFS Applications Industrial & Financial Systems, IFS AB, develops and supplies IFS Applications, which is a complete Enterprise Resource Planning (ERP) system for business processes in medium-to-large-sized companies. It covers manufacturing, distribution, financials, maintenance management, human resources, engineering and Front Office. The IFS business concept is to increase the freedom of action and competitiveness of companies by offering standardized business systems based on leading technologies. IFS Applications is one of the first business systems in the market developed entirely using a component-based architecture, which means that it can be readily adapted to the needs of individual customers. The system is equipped to handle the Y2K compliance issues and the introduction of the Euro. IFS is the world's fastest-growing company in the ERP and maintenance software market. The company has 2,200 employees and its products are sold in 32 countries around the world. Some of the more than 1,600 major customers include Volvo, NEC, Akzo Nobel, Caterpillar, Saab, Nikon, Kimball, AlliedSignal, Ericsson, International Paper, Sundstrand Corporation and Rover Group. For further information, contact: Bengt Nilsson, President, IFS Rolf Erichs, Corporate Communications Manager, IFS Telephone: +46 708 11 22 11 Telephone: +46 13 13 03 18 Fax: + 46 31 709 39 01 Fax: +46 13 12 43 73 E-mail: bengt.nilsson@ifsab.se E-mail: rolf.erichs@ifsab.se IFS' web: http://www.ifsab.se IFS Applications is a trademark of IFS Industrial and Financial Systems. All other referenced company or product names are trademarks or registered trademarks of their respective owners. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/05/03/19990503BIT00390/bit0001.doc http://www.bit.se/bitonline/1999/05/03/19990503BIT00390/bit0002.pdf