Q-FREE RESULTS FOR THE THIRD QUARTER 2013
Q-Free has seen significant growth in product demand over the past quarters, and reports a clear improvement in underlying profitability in the third quarter. Revenue increased 10 percent to NOK 170 million, with operating profit of NOK 8 million and a profit before tax of NOK 7.2 million. This compares to a negative operating result of NOK 23 million and a loss before tax of NOK 21.8 million in the third quarter 2012.
Revenue and results were positively affected by strongly improved product sales, which increased 92 percent to NOK 96 million. This also contributed to a strong cash flow from operating activities of NOK 24 million.
During the quarter Q-Free strengthened its efforts within the new business area Advanced Transportation Management Systems (ATMS), through an investment in the American traffic management company Intelight in Tucson, Arizona, and acquisition of the Serbian traffic management company ELCOM.
Cash flow from investing activities was a negative NOK 9.8 million in the third quarter, mainly explained by the investment in Intelight. Net positive change in cash was NOK 15.4 million, which generated a strengthening of the cash position to NOK 270 million.
Order entry was NOK 190 million in the quarter, following the strong trend from the second quarter. A new contract with the Miami-Dade Expressway Authority (MDX) marked a breakthrough in the US and together with a service and maintenance contract in Stockholm and the extension of a contract with the Norwegian Public Roads Administration related to central system services this made up the largest contracts in the period. The order backlog was NOK 453 million at the end of the quarter.
Q-Free expects a continued positive long-term market development, although a tough economic climate generates political and financial challenges in some of the main markets and delays the realization of a large market potential. Important progress has been made in new markets, in particular in Asia, although the process of commercialising the business opportunities demands much resources in terms of time and effort. Indonesia is a prime example. An important milestone was passed during the quarter, when Q-Free’s customer PT Rin and Export Credit Norway signed a loan agreement.
Attachments: Presentation and report
Oslo, 31 October 2013
For further information, please contact:
CEO Øyvind Isaksen, cell: +47 908 76 398
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 290 employees and is represented in 18 countries. The company’s main offices are in Trondheim, Norway. Q-Free is listed on Oslo Stock Exchange under the ticker QFR.
Twitter: @Q-FreeASA
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