Orc Software AB – Interim report January 1–June 30 2007

Strong order book growth

Annual value of existing client contracts
The annual value of existing client contracts at the end of the period was SEK 433.7m (304.6 on June 30, 2006), which is an increase of SEK 129.1m, or 42.4%.
The quarterly increase was SEK 37.4m, or 9.4%, from SEK 396.3m on March 31, 2007.

April–June 2007
- Operating income SEK 124.4m (110.2)
- 12.9% year-on-year Q2 sales growth
- Operating profit SEK 26.8m (20.2)
- Operating margin 21.6% (18.3)
- Profit after tax SEK 20.9m (15.1)
- Earnings per share SEK 1.33 (0.97)

January–June 2007
- Operating income SEK 248.7m (203.1)
- 22.4% year-on-year H1 sales growth
- Operating profit SEK 56.9m (23.7)
- Operating margin 22.9% (11.7)
- Profit after tax SEK 41.7m (18.1)
- Earnings per share SEK 2.72 (1.18)


CEO Thomas Bill comments:

The order book has continued to grow at a fast pace. Our strong performance is due to increased demand for our derivatives, algorithmic trading and connec-tivity solutions – areas where we are world leaders – as well as favourable market conditions. The order growth on a twelve-month basis is the strongest yet. Our second-quarter sales were as high as in the first quarter, despite the absence of any major non-recurring income from licence sales. The profit was slightly affected by fluctuations in exchange rates.
We have a good sales mix in our regions. Our sales in Asia and Australia have grown at a healthy rate, with the order book increasing by 20 per cent and sales by 28 per cent on the first quarter. This is partly due to the global investment banks’ increasing presence and investments in algorithmic trading in the region.
We look forward to continuing our strong perform-ance in the second half of 2007. A strong order book value and a continuously solid demand for our products, provides a basis for exceeding the Board’s target of annual sales growth and an operating margin in excess of 15 per cent.