Interim report January-March 2001

Interim report January-March 2001 The period in brief -Net sales amounted to SEK 121.7 million (53.4) -Operating profit before goodwill depreciation amounted to SEK 13.1 million (1.8), which provides a margin of 10.7 % (3.4) -Profit after financial items amounted to SEK 8.7 million (1.0) -The orderbook at the end of the quarter stood at SEK 344.1million (402.7) -Orders received during the period amounted to SEK 70.4 million(289.2) -Liquidity, unaccounted credit, amounted to SEK 55.1 million (80.4) at the end of the quarter -The number of employees at the end of the quarter was 336 (160) -Investments during the period amounted to 2.3 (27.2) -The Company upholds previously provided forecasts Operations in brief Nexus has strengthened its position as the leading supplier of Secured Solutions. This is reflected in increasing demand, orders, and results. The first quarter of the year 2001 followed the earlier positive development. Nexus has published its seventh consecutive interim report with increased turnover and a positive profit trend compared to the same period during the previous year. The awareness that insufficiencies in IT security in supplied products and solutions can pose a threat to entire operations continues to increase. The demand for the company's services is increasing and during the period Nexus has received a large number of orders. It is worth noting that the first large structural PKI deals (Public Key Infrastructure) have been made during this period. In a number of cases, Nexus has gained the trust to supply the solutions and products for these projects. Especially interesting are the deliveries to RSV and Posten in conjunction with the opening of the Internet for electronic tax returns, primarily for VAT and payroll overhead. The market The company sees continued growth in the demand for its solutions and services. This is in line with independent market institute assessments. A certain effect from the cutbacks currently being implemented, primarily in the telecommunications sector, can be expected. They are assessed to have a marginal effect on Nexus' turnover and result, as the company's exposure to this sector is limited. The increase in demand that has taken place and is taking place within Nexus' operating area, Secure Solutions, is structurally enforced. The demand is therefore less affected by changes in market conditions. Turnover and results The period Turnover during the first quarter of 2001 increased by 128 % in comparison with the same period during the previous year and amounted to SEK 121.7 million (53.4). Operating profit before goodwill depreciation amounted to SEK 13.1 million (1.8), which is equal to an operating margin of 10.7 % (3.4 %). Profit after financial items amounted to SEK 8.7 million (1.0) The factors that affected profit development positively are that endeavours to heighten productivity and scale advantages have been increasingly successful. In addition, product deliveries, where the company also obtains income during the delivery phase, have developed well. The overseas establishment, which was begun at the end of last year, has developed well and contributes to the good results. Personnel The number of employees at the end of the period was 336 (160). Personnel turnover during the period was 3%. Future prospects The company sees a continued good demand for its solutions and services. The company has entered discussions concerning a number of larger project/series delivery deals that can be expected to be finalised and provide a positive effect during the current year. The company's overseas operations are expected to continue to contribute to long-term profitability. The company upholds previously communicated forecasts for a growth rate of 30 - 50 % per year for turnover and the attainment of the long-term profitability target of 10 % after financial items during the period 2001-2003. Continued positive cash flow is expected. Accounting principles No alterations have been made with regard to the accounting principles and calculation methods in comparison with the year-end report for 2000. Next financial report The quarterly report for January-June will be made public on August 22, 2001. For the Board: Linköping, Sweden, April 26, 2001 Mikael Jacobsson Chief Executive Officer We have performed an overall review of this quarterly report in accordance with the recommendations of the Swedish Institute of Authorised Public Accountants (Föreningen Auktoriserade Revisorer, FAR). An overall review is considerably more limited than an audit. We have found nothing that would indicate that the quarterly report does not meet the requirements of the Swedish Accounting Act. Linköping, Sweden, April 26, 2001 Jüri Pundi Tom Skarin Authorised Accountant Approved Accountant The Group's income 2001-01-01 2000-01-01 2000-01-01 statement -2001-03-31 -2000-03-31 -2000-12- (amount in SEK 31 thousands) Net sales 121,656 53,437 376,707 Other operating income 0 0 144 Total: 121,656 53,437 376,851 Operating costs (1) -108,586 -51,634 -342,395 Operating profit before 13,070 1,803 34,456 goodwill depreciation Structure and 0 0 -8,000 integration costs Depreciation goodwill -4,812 -983 -13,996 Operating profit after 8,258 820 12,460 goodwill depreciation Result from financial 482 200 1,209 investments Adjusted acquired result 0 0 539 (2) Result after financial 8,740 1,020 14,208 items Taxes (3) -3,866 0 -5,549 Profit/loss for period 4,874 1,020 8,659 Data per share March 2001 March 2000 December (amount in SEK 2000 thousands) No. shares (4) 17,462,021 13,147,940 16,895,415 No. shares incl. 19,896,646 14,647,940 19,330,040 outstanding warrants Net earnings per share 0.28 0.08 0.51 (5) Net profit per share 0.24 0.07 0.45 incl. outstanding warrants Equity per share (6) 19.25 9.91 19.32 The Group's income Q1 -00 Q2 -00 Q3 -00 Q4 -00 statement quarterly-wise (amount in SEK thousands) Net sales 53,437 118,936 81,270 123,064 Other operating income 0 0 57 87 Total: 53,437 118,936 81,327 123,151 Operating costs -51,634 -103,020 -76,861 -110,881 Operating profit before 1,803 15,916 4,466 12,270 goodwill depreciation Structure and 0 -5,000 -1,000 -2,000 integration costs Depreciation goodwill -983 -3,921 -3,921 -5,171 Operating profit after 820 6,996 -455 5,099 goodwill depreciation Result from financial 200 376 122 511 investments Adjustment acquired 0 539 0 0 result Result after financial 1,020 7,911 -333 5,610 items Taxes 0 -5061 -1 341 853 Profit/loss for period 1,020 2,850 -1,674 6,463 2001-03-31 2000-03-31 2000-12-31 The Group's balance sheet (amount in SEK thousands) ASSETS Intangible fixed assets 289,479 33,941 293,196 (goodwill) Tangible and financial 17,190 7,748 17,867 fixed assets Other current assets 140,876 55,780 140,079 Liquid funds 55,149 80,370 36,884 Total assets 502,694 177,839 488,026 EQUITY AND LIABILITIES Equity (7) 382,985 145,155 371,383 Interest-bearing 0 0 0 liabilities Operating liabilities and 119,709 32,684 124,438 provisions Total equity and 502,694 177,839 488,026 liabilities Cash flow statement 2001-01-01 2000-01-01 2000-01-01 (amount in SEK thousands) -2001-03- -2000-03- -2000-12- 31 31 31 Cash flow from ongoing operations before changes in working 14,051 2,942 29,916 capital Change in working capital -3,064 -14,164 -28,665 Cash flow from ongoing 10,987 -11,222 1,251 operations Cash flow from investment 1,594 -975 -118,245 activities Cash flow from ongoing operations after investments 12,581 -12,197 -116,994 Cash flow from financing 5,684 80,561 141,872 activities Change in liquid funds 18,265 68,364 24,878 Key ratios Mar 2001 Mar 2000 Dec 2000 Profit margin, % (8) 10.7% 3.4% 9.1% Profit margin, % (9) 7.2% 1.9% 3.8% Return on equity, % (10) 5.2% 3.2% 6.9% Return on capital 9.5% 5.2% 11.1% employed, % (11) Solidity, % (12) 76% 82% 76% No. of employees balance 336 160 314 sheet date Average number of 329 156 242 employees Turnover per average no. 1,479 1,370 1,557 employees on annual basis Definitions 1) The operating profit includes depreciation of machines and equipment in accordance with the following: January-March 2001 1,846 January-March 2000 939 January-December 2000 6,236 During the year 2000, SPP funds have been accounted for as other income. As a result of new recommendations, these have been accounted for as a cost reduction under operating costs (personnel costs). 2) Acquired result Devenator AB for the period January 1, 2000-March 31, 2000 Net sales 29,994 Operating costs -30,505 Operating profit/loss -511 Financial items -28 Result after financial items -539 3) Standard tax rate of 28 % has been charged to the profit for the period. 4) In the comparative figures for March 2000, consideration has been taken to the 5:1 split. 5) The net result for the period divided by the number of outstanding shares on balance sheet date including and excluding outstanding warrants. 6) Equity in relation to the total number of shares on the balance sheet day including outstanding warrants. 7) Specification change Equity Share Restricted Profit Profit capital reserves b/f for year At start of year 855 375,993 -5,465 0 New share issue 18 6,710 Displacement between restricted and -324 324 non-restricted Net profit/loss for the year 4,874 At end of period 873 382,379 -5,141 4,874 8) The result for the period before depreciation of goodwill and structural costs as a percentage of net sales for the period. 9) The result for the period after financial items as a percentage of net sales for the period. 10) The result for the period after tax as a percentage of the average adjusted equity. For comparative periods shorter than 12 months, result development is assumed to be linear over the year. 11) The result for the period after financial items plus financial costs and structural costs as a percentage of the average capital employed. For comparative periods shorter than 12 months, result development is assumed to be linear over the year. 12) Equity in relation to the balance sheet total. [REMOVED GRAPHICS] Technology Nexus AB (head office), Ågatan 40, Box 513, S-581 06 Linköping, SWEDEN Tel. +46 13 35 74 00, Fax. +46 13 10 02 43 www.nexus.se ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/04/27/20010427BIT01370/bit0001.doc http://www.bit.se/bitonline/2001/04/27/20010427BIT01370/bit0001.pdf