The Intentia Group: January-June 2000 Interim Report

The Intentia Group: January-June 2000 Interim Report "The turnaround seen in the market continues and the quality and volume of prospects in our customer base improved considerably during the first half, " says Björn Algkvist, CEO, Intentia International AB in his comments on the results for the first half of 2000. Algkvist continues, "It is particularly encouraging to see that the flow of business for Intentia has increased dramatically, including a series of major transactions in which Intentia has already been selected as the supplier and projects have begun while final negotiations are underway." "As contract negotiations become more complex, evaluation and decision-making processes take more time. Intentia is performing a greater part of the initial study prior to signing the contract, which also prolongs the decision-making process. Hence, license revenue suffers, because this increases the number of deals that have been decided but not yet signed. The bright side is that this approach increases the security for Intentia and its customers while promoting the profitability of projects," Algkvist points out. "Active cost control measures, implemented in the first half to push Intentia closer to its target for the operating margin, progressed well within plans. Taken together, consultancy expense and indirect costs during the first half were checked at only 3 percent. We are confident that this, in combination with expected ongoing growth within the existing cost structure, will have a substantial positive impact on operating earnings," concludes Björn Algkvist. During this first half, Intentia has taken the lead in technology with its Java-based Movex NextGen technology. Intentia has implemented Movex NextGen on both AS/400 and NT- installations that have been very successful. The addition of Unix (Sun Solaris) as a platform has extended the market for NextGen technology dramatically. Intentia International reports a continuing increase in license revenue during the first six months of the year. License revenue during January-June increased 17 percent, to SEK 468 million (399). Net revenue for the period totaled SEK 1,606 million (1,539), representing a growth of 4 percent. Net revenue for the second quarter totaled SEK 786 million (852), down 8 percent, as a result of decreased consultancy revenue. Operating earnings for the first half were SEK -173 million (-129) and SEK -84 million (-64) for the second quarter. Please join Björn Algkvist, CEO and Håkan Gyrulf, CFO at a teleconference where they will comment on the results. The teleconference will be held on Wednesday, August 16 at 3 PM CET. To participate in the teleconference, please call +44 208 240 82 42. The conference will also be broadcast live at www.financialhearings.com The complete interim report from Intentia International AB is available for download in PDF-format at www.intentia.com For further information, please contact: Björn Algkvist President and Chief Executive Officer Telephone: +46-8-555 256 05 Fax: +46-8-555 259 99 Håkan Gyrulf Chief Financial Officer Telephone: +46-8-555 258 25 Fax: +46-8-555 259 99 Thomas Ahlerup Director Corporate Communications Telephone: +46-8-5552 5766 Fax: +46-8-5552 5999 Cell phone: +46-708-545 666 e-mail: thomas.ahlerup@intentia.se About Intentia International AB (publ). Over the past few years, Intentia International AB has concentrated on positioning itself to meet the demands it anticipated would arise from the new e-economy era. Intentia has developed its Movex product from a traditional ERP system to a complete e-collaboration solution that can manage all the demands of the new economy. Movex offers Intentia's customers the key to success, with its applications for customer relationship management (CRM), enterprise resource planning (ERP), supply chain planning & execution (SCPE), partner relationship management (PRM), business performance management (BPM) and e- business. Intentia is well-positioned to respond to market needs when the "e" (electronic) evolves into "c" (collaboration), working hard to satisfy customers through its organization of more than 3,800 professionals serving in excess of 3,500 customers in over 40 countries around the world. Intentia is a public company traded on the Stockholm Stock Exchange (XSSE) under the symbol INT B. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/16/20000816BIT00750/bit0001.doc http://www.bit.se/bitonline/2000/08/16/20000816BIT00750/bit0002.pdf The full report