Interim Report for Technology Nexus AB (publ) January - September.

Interim Report for Technology Nexus AB (publ) January - September. For further information contact: Mikael Jacobsson, CEO, Technology Nexus AB, mobile +46 706 - 47 58 10. E- mail mikael.jacobsson@nexus.se Facts about Technology Nexus AB Technology Nexus AB (publ) is listed on the Stockholm Stock Exchange O list and specialises in developing and supplying secure IT solutions which increase customer profitability. Nexus works with both the end customer market and as a development partner for customers with high-level quality requirements. Nexus' vision is to be the leading partner for secure solutions in the digital economy. Nexus employs approx. 300 people and has offices in Stockholm, Göteborg, Malmö, Uppsala, Linköping, Umeå, Karlstad, Västerås and Borlänge in Sweden as well as in Hamburg, Germany and Paris, France. More information is available at www.nexus.se. E-mail: contact@nexus.se Technology Nexus AB (publ.) interim report January - September 2000 Summary of the period * Net turnover amounted to 253.6 Msek (52.6). * Results before goodwill depreciation and structural costs amounts to 22.2 Msek (-13.9), which gives a marginal of 8.5% * Profit before tax amounts to 8.6 Msek (-13.2). * Orders received in the period amount to 419.3 Msek (110.6) million. Majors orders have been received with Telelarm Care AB, ABB, NOKIA and Ericsson. * The order stock at the end of the period amounts to 362.1 Msek (80.1) million. * Investments for the period amount to 270.3 Msek (12.5) million, of which acquisitions amount to 260.6 Msek million (11.0). * Acquisition of DEVENATOR AB has taken place - integration is progressing successfully * Acquisition of NetSys AB has taken place - consolidated from Q4 in 2000. Business in brief The market for IT security and solutions/products with a high level of security is continuing its positive development and the company has maintained its position as one of the leading suppliers on a Nordic basis. The acquisition and integration of Devenator AB has continued and is developing at least in line with expectations. The operations of both companies have also developed more positively together than they previously did individually which has been interpreted as market appreciation of the new structure. With the acquisition of NetSys AB, the first step in achieving a strong position in Europe as well has been taken, which is the company's goal for the coming three-year period. The acquisition of Netsys AB, which took place in the period, is expected to have a positive effect on both turnover and profit as early as this year. In addition, this gives us a clear European profile with a strong international client base, with customers such as Allianz, IKEA, SEB, STORA and Renault. Market The company has not experienced any fall in demand or any significant pressure on prices in service operations. The high security level of the company's solutions and products combined with the partner model used by the company as its business model has proven successful which can be seen through its continued high levels of orders received. The trend towards increasingly high security requirements in e-commerce, mobile solutions and the ability to offer an added value for customers that can be measured and not just a one-off consultancy session has become apparent and the company feels that it will become even more important in the future. Turnover and profit The period Invoicing is considerably higher than in the prognosis. Turnover amounts to 253.6 Msek (52.6 Msek) and results before goodwill depreciation and structural costs are 22.2 Msek (-13.9 Msek). Operating results after goodwill depreciation, structural costs and financial net amount to 8.6 Msek. Third quarter Turnover for the third quarter amounts to 81.3 Msek (29.8 Msek) and results before goodwill depreciation and structural costs are 4.5 Msek (0.3 Msek). Operating results after goodwill depreciation, structural costs and financial net amount to -0.3 Msek). The acquisition of NetSys AB took place during the period, but was agreed for 4/10 which is why the balance sheet and profit statement were not consolidated in the period. SPP funds Now that the SPP has given final notification of the size of the company's claim, this has been taken up in the period and entered in the balance sheet as an asset. The amount has also formed the basis for income tax. The total amount is 7.5 Msek and has been entered into Q2. Costs of acquisition and integration, together with product and service development Acquisition and integration costs amount to approx. 3 Msek for the first quarter, 2 Msek for the second quarter and SEK 1 million for the third quarter. All of these costs have been brought forward into the profit statement. The total forecasted cost frame of 10 Msek will not be reached but the costs are expected to total 6.5-7.0 Msek. No major costs are expected to be incurred for the integration of NetSys AB and the goodwill item will be limited. Financial position At the end of the period, the Group liquid assets amounted to 27.8 Msek. In addition, there are cheque credits of 6.5 Msek. The equity/assets ratio at the end of the period was 82% (64%). Investments in tangible and intangible fixed assets during the period amount to 270.3 Msek. Of this, 9.7 Msek relate to machinery and equipment and 260.6 Msek goodwill. Goodwill arising from the acquisition of Devenator AB amounts to 236 Msek million and will be written off over 20 years. Goodwill amortisation of 8.8 Msek million was charged to the profit for the period. Orders The order situation is satisfactory and amounts to 362.1 Msek at present. The order stock extends into 2001 and partly into 2002. Personnel The number of employees at the end of the period was 245 (107). The number of employees at the beginning of 2000 was 100 (80). Prospects for the rest of the year The company thinks that its future is bright. According to internal and external observers, very favourable growth is expected in the next five- year period in B2B activities in the market segments in which the company holds a strong position, IT security, mobile solutions and e-commerce. The partner model followed by the company also means that the profit flows are not segregated only to man-hours, but also to the supply of our own and our customers' products, which should also make a positive contribution to the operating margins. On the above basis, the company sees a continued high level of growth in turnover and an ongoing improvement in profitability at least in line with previously stated forecasts. Next report Press release of unaudited annual statement on 16 February 2001. Linköping, October 2000 Mikael Jacobsson Managing Director We have reviewed this interim report in compliance with the recommendation issued by FAR, the Swedish Institute of Authorised Public Accountants [Föreningen Auktoriserade Revisorer]. A review is considerably limited compared to an audit. Nothing has been found to indicate that the interim report does not comply with the requirements of the Swedish stock exchange and annual accounts legislation. Linköping, 26 October 2000 Jüri Pundi Tom Skarin Authorised Public Accountant Approved Public Accountant [REMOVED GRAPHICS][REMOVED GRAPHICS] [REMOVED GRAPHICS][REMOVED GRAPHICS] [REMOVED GRAPHICS] ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/10/26/20001026BIT01540/bit0001.doc http://www.bit.se/bitonline/2000/10/26/20001026BIT01540/bit0002.pdf