Nexus Interim Report January - June 2002

Interim Report January - June 2002 The Period In Brief *Net sales decreased by 4% to SEK 238.8 million (247.5) *The result before depreciation totalled ./. SEK 3.8 million (26.7). The result before depreciation for the second quarter totalled ./. SEK 0.9 million. *The result after financial items totalled ./. SEK 19.4 million (SEK 14.1 million) *The order book at the end of the period totalled SEK 576.6 million (431.1) *Orders received during the period totalled SEK 363.2 million (283.6) *Liquidity, unaccounted credit, totalled SEK 37.4 million (35.2) at the end of the period *The number of employees at the end of the period was 406 (363) *Acquisition of Blueice Research AB *Extensive outsourcing agreement with Sonera Smarttrust AB *High level of orders received within Secure Messaging The CEO's Comments on Developments During the Period Development has not been satisfactory during the first half of the year. The Company's sales have been at the same level as last year, but with a considerably lower profit level. The second quarter saw better development than the first, in terms of both sales and profit. Moreover, the level of orders received developed very positively and was the highest the Company has ever noted for a single quarter. The sluggish and uncertain market, which the Company felt during the first quarter, remained. The previously announced delays in serial deliveries are expected to continue throughout 2002. The market for more refined Security Solutions developed more positively and it is also within this segment that the majority of orders have been received. Within two of the Company's core areas, Secured Messaging and PKI solutions (Public Key Infrastructure or certificate solutions), extensive agreements have been signed with several new customers, in both Scandinavia and the rest of Europe. Nexus has thereby further anchored its position as a market leader in these growth segments. The result improvement program that the Company initiated in April has been implemented according to plan and at the cost level it was judged to entail. Market Developments The market continued to be characterised by a low level of activity during the first half of the year. Many larger projects and installations, for which preliminary studies and analyses have been carried out, have been postponed. The tougher pricing climate experienced by the Company earlier also continued. The Company has also noted a general deterioration in willingness to pay, among both smaller and larger customers. The market for more specific security solutions has fared better in terms of development, primarily towards the end of the period. However, even this market is affected by customers' hesitance to make larger investments. The PKI market also developed more positively, not least through the initiative of Statskontoret (The Swedish Agency for Public Management) and the banks within the consortium for Bankernas ID-tjänst (BIDT, The Banks' ID Services). Result Improvement Program The program announced in conjunction with the Company's report for the first quarter was implemented during the period. The program has gone according to plan and in line with the cost levels previously communicated. The time plan has been set back a little, but the desired result improvements are assessed to be generally attainable, even if slightly delayed until the fourth quarter. The costs for winding down operations will be charged to the income statement on a continual basis and will affect both the third and fourth quarters. The Company's management and Board regularly assess developments and are prepared for any necessary complementary activities. Furthermore, the Company works continually with a number of activities in order to increase efficiency, not least with consideration for the low level of market activity. This process is being carried out parallel to focusing even more intensely on the markets in which the Company has its strongest position, Secured Solutions, with an emphasis on PKI Solutions, Secured Messaging, and Product Supply for customers with strict security requirements. For the Board: Linköping, Sweden, August 21, 2002 Technology Nexus AB (PLC) Mikael Jacobsson Chief Executive Officer ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/08/21/20020821BIT01220/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/08/21/20020821BIT01220/wkr0002.pdf The full report