Interim Report January-September 2008

 Sales during the period increased by 9 percent to MSEK 5,620 (5,163) and during the third quarter by 10 percent to MSEK 1,876 (1,702).
 Impairment losses of goodwill, mainly attributable to the UK operations, impacted net income by MSEK 490 during the period and in the third quarter.
 Operating income (EBIT)* before impairment losses of goodwill decreased during the period by 22 percent and amounted to MSEK 325 (416), which resulted in an operating margin (EBIT) of 5.8 percent (8.1). During the third quarter, operating income (EBIT) decreased by 28 percent to MSEK 104 (145). The operating margin (EBIT) during the third quarter was 5.5 percent (8.5).
 Income before tax for the period amounted to MSEK -251 (386). Foreign exchange rate effects impacted financial net by MSEK -6 (7) during the period.
 Net income amounted to MSEK -324 (268) during the period, and to MSEK -440 (78) during the third quarter. Earnings per share amounted to SEK -0.89 (0.73) during the period, and to SEK -1.21 (0.21) during the third quarter.

*Operating profit (EBIT) before impairment losses of goodwill is referred to throughout the report unless otherwise stated.


Comments from the CEO, Juan Vallejo
We saw sales growth of 10 percent in the third quarter, despite a declining share within the banking customer segment, 24 percent (27 percent). The decrease in sales to the banking sector is mainly attributable to implementation projects. Price pressure, particularly in relation to sales of larger security solutions within implementation projects, has contributed to decreasing margins, while at the same time, selling and administrative expenses are increasing at a higher rate than gross income. As part of an increased focus on profitability, all costs are now being reviewed in the Group, particularly as regards to that part of the operations covering implementation projects. At the same time we are increasing our activities to develop our service offering and drive profitable growth. Service accounted for 39 percent of our total sales during the period. It is too early to say how the recent financial market turbulence will impact us in the near term, but we are preparing to encounter a tougher market.

Press conference
A press conference will be held at Niscayah's head office at Lindhagensplan 70 in Stockholm on November 4, 2008 at 10.30 am, CET. To follow the press conference by telephone (and ask questions), please call:
Sweden: + 46 (0) 8 50 520 270
UK: + 44 (0) 208 817 9301
US: + 1 718 354 1226