Orc Software AB – Interim Report January 1–September 30, 2007

Strong operating income

Orc Software is reporting operating income for the third quarter of SEK 32.5m (22.4 in the same quarter in 2006), an increase by SEK 10.1m or 45.1 percent.
Operating income for the period January-September rose by SEK 43.4m, an increase of 94.3 percent, compared to the same period in 2006.

July-September 2007
• Net revenue SEK 135.4m (103.6)
• Revenue growth of 30.7% compared to

Q3 2006
• Operating income SEK 32.5m (22.4)
• Operating margin 24.0% (21.6)
• Income after taxes SEK 36.7m (15.4)
• Earnings per share SEK 2.35 (0.99)

January–September 2007
• Net revenue SEK 384.1m (306.7)
• Revenue growth of 25.2% compared to the same period in 2006
• Operating income SEK 89.4m (46.0)
• Operating margin 23.3% (15.0)
• Income after taxes SEK 78.3m (33.5)
• Earnings per share SEK 5.07 (2.17)


• Annual value of existing client contracts was SEK 456.0m at the end of Q3 2007 (324.3 at the end of Q3 2006), an increase of 131.7m or 40.6 percent
• Capital gain of SEK 15.5m from the divestment of shares in Infront AS recognized in net financial income


CEO Thomas Bill comments:
We continued delivering healthy revenue growth in the third quarter. Operating income also increased - plus 45 percent over the last year - despite the drop in the US dollar.
The order book trend was also favorable. We are experiencing steady interest in our solutions for derivatives trading, advanced automated trading, and connectivity. The sales trend is also satisfactory in geographical terms with growth in all regions.
The performance in North America as well as in Asia and Australia is particularly good.
Based on the current order book, we can confirm that we will exceed the Board of Directors’ target of annual revenue growth and operating margin of 15 percent by a margin this year.