Interim Report January-June 2014

Continued very strong license sales

• License revenue for April-June increased with 26 percent to SEK 68.7 (54.6) million
• Sales for April-June increased with 10 percent to SEK 209.3 (190.9) million
• Operating profit EBITDA for April-June was SEK 10.3 (4.8) million
• Earnings per share after tax for April-June were SEK 0.13 (0.03)
• License revenue for January-June increased with 26 percent to SEK 122.1 (96.6) million
• Sales for January-June increased with 9 percent to SEK 386.0 (353.5) million
• Operating profit EBITDA for January-June was SEK 1.0 (-12.8) million
• Earnings per share after tax for January-June were SEK -0.25 (-0.35)
• Cash-flow from operating activities for January-June was SEK 72.5 (61.7) million
• ReadSoft has during the second quarter been subject to public takeover offers from Lexmark International Technology and Hyland Software UK, respectively

CEO comment: 

Continued very strong license growth 

“The second quarter has been hectic for ReadSoft. Both Lexmark International Technology and Hyland Software UK have announced public tender offers to ReadSoft's shareholders to acquire all shares in the company. Despite the great attention that the company has been exposed to in connection with the public offers, I can proudly note that we have handled the situation in a good way. We have maintained our focus and we deliver a quarter that shows strong license growth and much improved results. Our total sales grew, compared to the corresponding period last year, by 10 percent for the second quarter and by 9 percent for the first six months. The vital license sales that is so important for a software company continues to be very strong and grew by 26 percent both in the second quarter and for the first six months. Our cash flow from operating activities continues to be very strong. 

It is gratifying to see that our EBITDA result has more than doubled compared to the corresponding period last year. Our margins also continued to develop positively and it is evident that the actions we took to improve results and margins have had a positive effect. A gradual change in the reporting of our revenues from our support and maintenance agreements has affected the second quarter’s result negatively compared to the corresponding quarter last year. This effect means no lost revenue but only a time delay in the reporting of these revenues. 

The recurring revenues for the quarter increased by 9 percent compared with the same period last year and by 18 percent for the first half-year. On a rolling 12 month basis the recurring revenues increased by 13 percent and it is important for our future development that this trend is maintained. 

The success of XBOUND continued in the second quarter and it is clear that the strategic changes that were made have had a very positive impact on sales in our global markets. During the second quarter it is primarily our larger markets, in France, Sweden and Germany that stand out, showing the way with good growth and profitability. On the product side, we launched the latest version of PROCESS DIRECTOR (7.3) at the international SAP conference SAPPHIRE NOW/ASUG in Orlando, USA. PROCESS DIRECTOR has also been certified for SAP HANA (a new database technology), which means that the solution can be integrated with SAP applications running on SAP HANA. 

I am pleased how we have delivered this quarter under the circumstances in which the company currently operates. We have worked hard and improved our growth, results and margins, and we will continue these efforts in the coming quarters. We have strong license growth which guarantees further revenue for our organization, our recurring revenues continue to grow and our growth areas develop positively. This shows that ReadSoft is well positioned for the future and we are optimistic about our potential for a continued good development.” 

Per Åkerberg 
President and CEO 


Read the entire report in the attached PDF. 


Invitation to telephone conference / audiocast for the presentation of ReadSoft's Interim Report for January-June 2014 

On Friday, July 18, 2014, at 9:00 CET, are analysts, investors, media and other interested parties invited to attend a telephone conference where ReadSoft’s President and CEO Per Åkerberg will comment on the published report and answer questions. The presentation will be held in English. 

Link to webcast:                  click here 
Day and time:                      Friday, July 18, 2014 at 09.00 CET 
Phone number:                    +46 8 505 56 482 or +44 203 194 0554 

You can also access the presentation via our website www.readsoft.se or www.readsoft.com. 


This is information of the type that ReadSoft AB (publ) is obligated to disclose in accordance with the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on July 18, 2014 at 08:00 CET. 


 

For additional information please contact: 

Per Åkerberg, President and CEO 
Phone+46 42 490 21 00  
Johan Holmqvist, Vice President Corporate Communications 
Phone: +46 42-490 21 98 or +46 708-37 66 77 
Jan Bertilsson, CFO 
Phone: +46 42-490 21 43 or +46 708-37 66 16 

e-mail: firstname.lastname@readsoft.com  

 

About ReadSoft. ReadSoft simplifies business for organizations of all sizes with applications for business processes such as accounts payable automation, accounts receivable, sales order processing, and multichannel mailroom automation. Its on-premises and cloud document process automation solutions enable some of the world’s largest corporations as well as small and medium businesses to compete and thrive in today’s environment by improving customer and supplier satisfaction, increasing operating efficiency, and providing greater visibility into business processes. ReadSoft is the world’s number one choice for invoice processing automation, and its applications integrate seamlessly with ERP systems from SAP, Oracle, Microsoft, as well as with many other business systems. Since 1991, the company has grown into a worldwide group, delivering industry expertise and support in 17 countries on six continents through its local and global partner network. ReadSoft is headquartered in Helsingborg, Sweden, and its share is traded on the NASDAQ OMX Stockholm’s Small Cap list. Visit www.readsoft.com. 

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