Interim report January-June 2001

Interim report January-June 2001 The period in brief * Net sales amounted to SEK 247.5 million (172.4) * Operating profit before goodwill depreciation amounted to SEK 23.0 million (SEK 16.0 million), which provides a margin of 9.3% (9.3) * Profit after financial items amounted to SEK 14.1 million (8.9), which provides a margin of 5.7% (5.2) * Standing orders at the end of the quarter amounted to SEK 431.1 million (384.7) * Orders received during the period amounted to SEK 283.6 million (364.1) * Liquidity, unaccounted credit, amounted to SEK 35.2 million (41.5) at the end of the quarter * The number of employees at the end of the quarter totalled 363 (249) * Investments during the period amounted to SEK 26.3 million (271.8) * A number of larger contracts have been signed, primarily towards the end of the period Operations in brief Net sales and profit development has been positive during the period. The market for Secured IT-solutions has shown further growth during the period, despite the turbulence in the IT-market and decreasing demands on IT-services. Nexus has strengthened its position considerably, as the leading supplier of Secured IT-solutions I Sweden. The flow of orders received has been good and a number of important contracts have been signed, primarily during the later part of the period: * Outsourcing agreement with TRIO AB * Outsourcing agreement with Image Systems AB * Outsourcing agreement with BRAVIDA AB * Supply agreement with a number of foreign customers, for example Allianz Versicherung in Germany * Partnership agreement with AddTrust AB * Partnership agreement with RSA Security Inc As far as the overseas markets are concerned, development has been better than planned in terms of both sales and profits. All overseas markets provide positive contributions to both results and cash flow. Agreements of Intent concerning the acquisition of 2B+D SARL in Paris have been signed during the period. The market The growth of the IT-security market is primarily based on structural conditions rather than conjunctural and is just beginning its development. The trend towards an increasingly higher level of security within all IT and telecommunications applications and products has been clear and will continue to strengthen, according to the Company's own judgement as well as external evaluations. The customer's choice of partner for development and operation of new system solutions and products is increasingly based on competence and size within the Security area. This positive market growth, in combination with higher demands on suppliers, is positive for Nexus's further growth and expansion. The company foresees therefore a continued strong increase in the demand of Nexus' services. Turnover and results Sales have increased by 44% in comparison with the same period the previous year, and amounted to SEK 247.5 million (172.4) The result after goodwill depreciation and financial items increased by 58% in comparison with the same period the previous year, and amounted to SEK 14.1 million (8.9) During the same period the previous year, SPP funds totalling SEK 7.5 million were also returned, which positively affected the net result. Orders Received Orders received during the period amounted to SEK 283.6 million (364.1) Standing Orders Standing orders at the end of the period amounted to SEK 431.1 million (384.7) Personnel The number of employees at the end of the period was 363 (160). Personnel turnover during the period was 8.5 % (10.0). Prospects for the rest of the year Nexus foresees a continued positive development. A number of important deals have been closed during the latter part of the period, and many new and interesting discussions are also ongoing, and are expected to close before year-end. The business model that Nexus uses is a key to the Company's success as it ensures that both the customer's profitability demands on IT investments and the Company's demand to achieve better dividends for its shareholders are met. The Company sees an increased acceptance for this business model both in the Nordic market as well as in the International market. The Company expect demands to increasingly shift from product to solution supply and a industry consolidation is underway, one in which Nexus will take an active role, both in Sweden and internationally. To summarise, the Company now raises its prognosis for the year. Previously published prognoses have indicated a growth between 30-50% and the Company is now raising its prognosis to state that revenues will be in the upper range of the 30-50% interval. Profit development during the first six months has been positive and the Company now prognosis an operating profit of 7-9 % after financial items. 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 nine-month report for January-September will be made public on October 25, 2001. For the Board: Linköping, Sweden, August 22, 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, August 22, 2001 Jüri Pundi Tom Skarin Authorised Accountant Approved Accountant ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/22/20010822BIT00510/bit0002.doc The full report http://www.waymaker.net/bitonline/2001/08/22/20010822BIT00510/bit0002.pdf The full report