Interim Report January-March 2014

Very strong license growth

• License revenue for January-March increased with 27 percent to SEK 53.4 (42.0) million
• Sales for January-March increased with 9 percent to SEK 176.8 (162.6) million
• Operating profit EBITDA for January-March was SEK -9.3 (-17.6) million
• Earnings per share after tax for January-March were SEK -0.39 (-0.38)
• Cash-flow from operating activities for the period was SEK 54.2 (30.4) million

CEO comment: 

Very strong license growth  

“ReadSoft continues to take steps in the right direction and we are following up the strong fourth quarter with a first quarter showing growth and improved margins. Our total sales grew 8 percent, adjusted for currency effects, compared to the corresponding period last year. It is gratifying to see that the vital license sales is very strong and that it increased by 27 percent in constant currencies compared with the same period last year. Our cash flow from operating activities continues to be very strong. 

All our regions have performed well and the growth we had during the first quarter is not based on any single major deal. We are already seeing positive results from the change we made in the fourth quarter of the sales organization for XBOUND. XBOUND had good growth in the quarter and we have closed a number of new deals in markets where we previously did not have any XBOUND sales, such as in Australia. The Invoice Portal, our e-invoicing solution, has also contributed with good growth and it is satisfying to note that we in a good way have been able to exploit the upselling opportunities that our existing customers represent. 

The work on increasing our recurring revenues continues to develop positively. The recurring revenues increased by 14 percent during the quarter compared with the same period last year and represented more than 50 percent of our total sales. On a rolling 12 months basis the recurring revenues increased by 13 percent and accounted for approximately 47 percent of total sales. The positive development of the recurring revenues is very important for our future revenue mix. 

Our EBITDA result and our margins have taken clear steps in the right direction. Corresponding period last year we experienced a decrease in our consulting revenues, which affected our results and prompted some actions. These actions have led to a streamlined organization and to fewer consultants this quarter compared to last year, but we still report an improved result. A gradual change in the reporting of our revenues from our support and maintenance agreements has affected this quarter’s result negatively compared to first quarter last year. This effect means no lost revenue but only a time delay in the reporting of these revenues. 

During the first quarter our markets in Germany, USA, France, Spain and Sweden have shown the way with good growth and profitability. On the product side of the business we presented, at the global conference Convergence 2014 in Atlanta, USA, that our invoice automation solution now is available to all Microsoft Dynamics users, regardless of which platform they use. We also launched and presented the latest version of our invoice automation solution for Oracle, PROCESSIT (7.3.1), at the international conference COLLABORATE 14 in Las Vegas, USA. 

We have improved our result and margins during the quarter and we will continue to work for growth and to prioritize improving our profit margin. 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 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-March 2014 

On Tuesday, April 29, 2014, at 9:30 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:                      Tuesday, April 29, 2014 at 09.30 CET 
Phone number:                    +46 8 519 99351 alt. +44 20 7660 2078 

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 April 28, 2014 at 13:45 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 is a leading global provider of applications for automating business processes in the cloud or on premise. ReadSoft is by far the world’s number one choice for invoice processing automation, especially into business systems from SAP and Oracle. ReadSoft’s software enables companies to automate document processes such as accounts payable processing, and mailroom automation. Since the start in 1991, ReadSoft has grown to a worldwide group with operations in 17 countries on six continents and a network of local and global partners. The head office is located in Helsingborg, Sweden, and the ReadSoft share is traded on the NASDAQ OMX Stockholm's Small Cap list. For more information about ReadSoft, please visit www.readsoft.com

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