FIRST QUARTER 2008 RESULTS
Oslo, Norway - June 2, 2008 - Opera Software ASA today announced its quarterly results for 1Q08.
Please see attached first quarter report (1Q08.pdf) for complete accounts and details on corporate development.
Revenues: Revenue in 1Q08 was MNOK 102.7, up 57% from 1Q07, when revenue was MNOK 65.4. Revenue growth in the quarter was driven by attractive growth across both business segments.
Internet Devices revenue was driven by predominantly higher delivery services revenue to certain key OEM and operator customers. In the Desktop area, strong user growth combined with higher ARPU (Average Revenue Per User) drove revenue in the quarter.
Operating costs: Total operating costs for 1Q08 were MNOK 93.1 compared to MNOK 74.4 in 1Q07, an increase of 25%.
Payroll and related expenses, excluding stock option costs: Total payroll and related expenses, excluding stock option costs, were MNOK 66.0 in 1Q08 compared to MNOK 53.5 in 1Q07, an increase of 23%. This increase was due primarily to higher headcount in engineering and sales and marketing globally.
Stock option costs: Total stock option costs for 1Q08 were MNOK 4.0 compared to MNOK 1.6 in 1Q07.
Other operating expenses: Other operating expenses in 1Q08 were MNOK 21.1 compared to MNOK 17.7 in 1Q07, an increase of 19%.
EBIT: EBIT was MNOK 9.6 in 1Q08 compared to MNOK -9.0 in 1Q07. EBIT, excluding stock option costs, was MNOK 13.6 in 1Q08 versus MNOK -7.4 in 1Q07. EBITDA in 1Q08 was MNOK 11.6 compared with MNOK –7.4 in 1Q07. EBITDA, excluding stock options costs, was MNOK 15.6 compared with MNOK – 5.8 in 1Q07.
Interest income and FX gains/(losses): Interest income was MNOK 4.5 in 1Q08 versus MNOK 3.6 in 1Q07. Opera had a foreign exchange loss of MNOK 3.4 in 1Q08 compared to loss of MNOK 1.5 in 1Q07.
Net income: Net income was MNOK 7.8 in 1Q08 compared to MNOK -8.0 in 1Q07. EPS and fully diluted EPS were 0.07 and 0.07, respectively, in 1Q08, compared to -0.07 and -0.07 respectively, in 1Q07.
Liquidity and capital resources: The Company’s net cash flow from operating activities was MNOK 34.4 in 1Q08 compared to MNOK 0.8 in 1Q07. In 1Q08, Opera repurchased 733,000 shares for MNOK 10.1 as part of an up to 3 million share repurchase program announced on March 3, 2008 by the Board of Directors. The purpose of this program is to minimize dilution for existing shareholders resulting from the exercise of employee and Board stock options.
Cash: Cash and cash equivalents at the end of 1Q08 were MNOK 486.9, compared to MNOK 423.9 in 1Q07, an increase of MNOK 63.0.