Interim report for the period from january 1 to june 30, 2001

INTERIM REPORT FOR THE PERIOD FROM JANUARY 1 TO JUNE 30, 2001 Weak second quarter - continued strong financial position · Sales amounted to SEK 110.0 M (132.5) for the period, which was 17% lower than during the corresponding period of the preceding year. The decline was attributable to Sweden, where the market is currently restrained, and to Norway, where the preceding year's figures included an individual order valued at SEK 27 M. In other markets, sales increased or remained at an unchanged level. · During the second quarter, sales amounted to SEK 49.7 M (90.9). The previous year's sales included an individual order valued at SEK 27 M. · After net financial items, losses amounting to SEK 44.7 M (profit: 3.5) were reported for the period and SEK 32.1 (profit: 11.2) for the second quarter. The loss during the second quarter was affected by costs of a non-recurring nature amounting to about SEK 11 M. · An action program was initiated to reduce the company's cost levels and to improve efficiency. Annual costs are expected to be reduced by SEK 25 to 30 M. The full effect of the program will not be evident until the fourth quarter of this year. · The number of employees amounted to 169 (130) on the closing date. Staff reductions were implemented, resulting in a reduction in the number of employees by about 10% after the closing date. · Liquid funds, including an unutilized credit facility, amounted to SEK 175 M (161) on June 30, while the equity/assets ratio was 74% (78%). Equity amounted to SEK 175 M (214). · Important events during the quarter · In Finland, Oy Protect Data signed a corporate licensing agreement in April with Nokia regarding the Pointsec security system. Nokia intends to protect most of the company's personal computers with Pointsec. The contract is a four-year leasing agreement, and the contract value is at least SEK 20 M and up to SEK 40 M for the most positive scenario. · In Denmark, Protect Data A/S together with TDC (former Tele Danmark) signed a framework agreement with the Danish government and with the municipal purchasing service (SKI) for delivery of digital certificates. SKI is thus committed to using PKI systems from Protect Data. · Pointsec in the US signed an important contract during the period with the US Navy and the US Army regarding the Pointsec security solution. Although the initial order is relatively small, the contract is considered strategic for Pointsec. · Major deliveries of password generator systems were made to Internet banks in Sweden and Norway. · Pointsec signed a contract in June with the Finish telecom company Sonera for delivery of the Pointsec security solution. Initially, Sonera will replace its existing security system with Pointsec on 1,000 portable computers. · Events after the closing date · During the months of July and August, new presidents were appointed for Pointsec in the US and Protect Data in Finland. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/23/20010823BIT00420/bit0003.pdf The full report