Q-FREE RESULTS FOR THE FIRST QUARTER 2014

Oslo/Trondheim, 30 April 2013: Q-Free reported 22 percent increase in revenues to NOK 168 million in the first quarter 2014, reflecting continued growth for Products and Services & Maintenance but lower Projects revenues. Operating profit (EBIT) increased to NOK 1 million from an operating loss of NOK 53 million in the first quarter 2013, whereas pre-tax profit improved to NOK 2 million from a loss of NOK 55 million in the same period last year.

Order entry amounted to NOK 238 million in the first quarter, the highest levels since the second quarter 2012. Order backlog increased to NOK 448 million, an increase of NOK 69 million during the quarter. The EMEA region accounted for approximately half of both revenue and order intake in the quarter.

Gross profit for the period increased 16 percent to NOK 100 million. Operating expenses declined to NOK 86 million. This was a reduction of NOK 38 million from the first quarter last year, when the Income Statement was charged with NOK 25 million related to a Profit Improvement Program. The program was designed to reduce the annual cost base by NOK 40 million and has full effect in 2014.

Phase 1 of the ‘Q-Free Strategy and Collaboration Project’ that was initiated in January is completed. We will strengthen the regions - to get closer to our customers, broaden our business scope to also include smaller and medium sized projects – to build the pipeline and secure business volume, and finally broaden our technology offering - to address a larger part of the market.

Cash flow from operating activities improved to NOK 18 million in the first quarter from a negative NOK 23 million in the same period last year. Cash flow from investing activities amounted to NOK -63 million (-19), with the change mainly reflecting strategic acquisitions. Overall, this reduced the cash balance by NOK 45 million to NOK 227 million at the end of the first quarter.

Q-free continues to see a large potential in the Road User Charging (RUC) market, with opportunities in all the main regions in EMEA, the Americas and Asia Pacific. The company also continues to strengthen its business within Advanced Transportation Management Systems (ATMS), with the acquisitions of TDC Systems in the UK in March and Traffic Design in Slovenia in April. Q-Free will continue to seek complementary investment opportunities to add to organic growth in the ATMS business going forward.

Attachments: Presentation and report  

For further information, please contact: 
CEO Thomas Falck, cell: +47 468 00 767 
CFO Roar Østbø, cell: +47 932 45 175 

Q-Free is a leading global supplier of products and solutions within Road User Charging and Advanced Transportation Management Systems. The company has approximately 350 employees in 17 countries and is represented on all continents. The company's main offices are in Trondheim, Norway. Q-Free is listed on Oslo Stock Exchange under the ticker QFR.

www.q-free.com

Twitter: @Q-FreeASA

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