Interim Report January - September 2001

Interim Report January - September 2001 · Operating result SEK -59,8M (-97,5) · Orders received SEK 321,6M (33,7) · Cash flow from current operations SEK -55,2M (-68,8) · Liquid funds SEK 87,4M (159,0) · Action programme to reduce fixed costs and secure operations Action programme Although the market improved during the third quarter Pricer´s Board of Directors, against the background of the company´s long term development, has instructed the executive management to draw up an extensive action programme. The aim is to adapt the operations to customer and market needs, secure continued operations and create criteria for growth and profitability. The action programme will include proposals for reducing the fixed costs and strengthening the marketing and sales activities. In addition, the Board intends to put forward proposals for additional financing within the near future. Operations Orders received amounted to SEK 307.1M (4.0) for the third quarter and to SEK 321.6M (33.7) for the first nine months of 2001. Pricer's Japanese partner, Ishida, accounts for the significant increase in orders received. In August, Pricer received an order for ESL systems from Ishida which will be delivered over five years starting in April 2002. The backlog amounted to SEK 340M. During the third quarter, the focus of the operations was changed towards direct marketing and Pricer is currently establishing its own sales force. Market The market for ESL showed a positive trend in the first nine months. The Japanese market continued to grow and the ESL technology is achieving an increasing acceptance. The French market also continued to grow at a higher rate over the past few months and the French retail trade has indicated an increased interest for ESL solutions. Net sales and results Net sales for the third quarter amounted to SEK 7.8M (9.5). Net sales for the first nine months amounted to SEK 25.6M (74.3, of which Pricer ESL accounted for 21.3). The gross profit for the third quarter amounted to SEK 2.6M (0.1). The gross profit for the third quarter improved mainly thanks to income as a result of sales of services, improved gross profit on hardware and exchange rate fluctuations. Operating expenses for the third quarter amounted to SEK 23.0M (29.0, of which 14.0 related to one-off costs). The increase in expenses, excluding one-off costs, in comparison to the same period last year related mainly to payroll expenses as a result of change of Managing Director, consulting costs, and bonus costs to former Managing Director and senior management as a result of the order from Ishida. Operating expenses for the first nine months in the ESL operations amounted to SEK 63.3M (130.3 of which Pricer ESL 81,8) and included one-off costs of approximately SEK 6M (31). The year's one-off costs relate to the restructuring of Pricer Inc. and severance pay to former Managing Director. For the third quarter, the consolidated operating result amounted to SEK -20.4M (-32.6). For the first nine months, the operating result amounted to SEK -59.8M (-97.5 of which Pricer ESL -82,0). The net result for the third quarter was SEK -22.8M (-28,4) and SEK -66.8M (-92.0) for the first nine months of the year. Net sales and operating result in the ESL operations, SEK M ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/11/08/20011108BIT01220/bit0002.doc The full report http://www.waymaker.net/bitonline/2001/11/08/20011108BIT01220/bit0002.pdf The full report http://www.waymaker.net/bitonline/2001/11/08/20011108BIT01220/bit0002