January - September 2002 Interim Report

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January-September 2002 Interim Report Cash flow continued to improve during the traditionally weak third quarter, while license and consulting revenue declined * License revenue fell by 9 percent to SEK 223 million (246) in July- September and by 2 percent to SEK 741 million (758) in January- September. * License orders received declined by 18 percent to SEK 141 million (173) in July-September and by 14 percent to SEK 637 million (740) in January-September. * Consulting revenue fell by 14 percent to SEK 524 million (608) in July-September and by 3 percent to SEK 1,862 million (1,922) in January- September. * Operating earnings totaled SEK -77 million (2) in July-September and SEK -104 million (-6) in January-September. * The continued improvement in capital efficiency had a positive impact on cash flow. Operating cash flow increased to SEK 8 million (- 154) in July-September and SEK 89 million (-49) in January-September. Cash flow after investing activities rose to SEK -44 million (-214) in July-September and SEK -129 million (-250) in January-September. * The current state of the market has led to heightened uncertainty. For the full year, we expect license revenue in line with 2001 and an operating profit. Group Progress As a result of the economic uncertainty influencing investment decisions among the group of customers that Intentia serves, the market remains slow. Investment decisions are being postponed and trends are still difficult to predict. We expect that attractive growth levels will return to the market in the long run. Powered by the fact that a number of suppliers are unable to finance either their product development efforts or the kind of sales organizations required to handle complex procurements, the sector is continuing to restructure. The need for more efficient implementation of enterprise applications is also spurring the restructuring trend. In order to build a financial foundation that would enable profitable expansion with balanced cash flow once growth returns to the market, Intentia decided back in 2000 to prioritize cash flow and earnings. The measures represent the basis both for meeting Intentia's long-term objective of further evolving as a leader in the enterprise application sector and for enabling rapid, profitable expansion once the state of the market so permits. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/10/24/20021024BIT01040/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/10/24/20021024BIT01040/wkr0002.pdf The full report