Interim Report January-September 2013

Investments for future growth

• Sales for the third quarter decreased with 1 percent to SEK 177.7 (179.6) million
• License revenue for the third quarter decreased with 4 percent to SEK 55.5 (57.9) million
• Operating profit EBITDA for the third quarter was SEK -1.4 (12.1) million
• The result for the third quarter was affected by restructuring costs of SEK 3.0 million
• Earnings per share after tax for the third quarter were SEK -0.15 (0.18)
• Sales for January-September decreased with 1 percent to SEK 531.2 (538.5) million
• License revenue for January-September decreased with 2 percent to SEK 152.1 (155.5) million
• Operating profit EBITDA for January-September was SEK -14.2 (17.7) million
• Earnings per share after tax for January-September were SEK -0.50 (0.40)
• Cash-flow from operating activities for January-September was SEK 56.6 (44.4) million

CEO comment:

Investments for future growth

“Our sales development in the third quarter did not go as planned. Our total sales increased with 1 percent in constant currencies for the third quarter, and increased with 2 percent for the first nine months. Our license sales, adjusted for currency effects, decreased by 2 percent in the third quarter, but increased by 1 percent for the first nine months. Our result is not acceptable and one main reason is that our larger markets, such as Germany, Sweden, the US and France, are not meeting their targets. The third quarter result, as well as the result for the first nine months, was also affected by non-recurring restructuring costs, and non-recurring costs for the acquisition of Expert Systems. In the third quarter restructuring costs affected the result by SEK 3.0 million. We continue to increase the share of recurring revenue and we have during the third quarter continued to close large subscription based deals, which don’t generate any significant revenue in the third quarter, but are strategically important for the future. The recurring revenues have shown a positive development during the third quarter and continue to grow on a rolling 12 months basis.

ReadSoft has embarked on an exciting journey of development and build-up for present and future success. ReadSoft has a strong position in the market, and in order to maintain this we must continue to lead our industry’s technology development, listen to our customers’ requirements, and exploit important trends. We are working hard to achieve this through well-anchored strategy development, an increase of recurring revenue, a new, more efficient organization, scalability focus, development and innovation power, and an active acquisition strategy. During the last twenty months we have acquired two companies that will increase our offering and we have already, while still in the process of development, a new and strong comprehensive offering with leading solutions for capture, process optimization, workflow, cloud services, and more. Our development process is proceeding well, but it will still take a while to complete the integration and rollout of our acquisitions to our subsidiaries and the different markets.

The cost reduction program that we initiated in the second quarter was finalized during the third quarter and approximately 30 employees have left the company. The program allows us to reduce our costs and create opportunities for investments in areas where we see a clear growth potential. The annual cost savings from the program will, starting in 2014, be in the range of SEK 20-22 million. These savings will be partially reused for recruitments and investments in areas where we see good potential for development. It is very gratifying that we continue to close large deals and in the third quarter we closed the third largest deal in the history of ReadSoft, worth SEK 15.6 million, with a German BPO company. This customer invested in XBOUND, which has had a positive license growth during the first nine months. Our cloud-based solution, ReadSoft Online, continues its strong growth and we are currently processing some 3 million invoices in the cloud. On the product side, the latest version of PROCESSIT (7.3) was launched at the global Oracle OpenWorld 2013 conference in the US, cementing ReadSoft’s position as a leading supplier of invoice process automation for Oracle E-Business Suite. 

Our goal is to grow profitably. The work and the measures we are implementing takes time, but ReadSoft is well positioned for the future and with a leading position on the market, leading R&D and a strong financial base, we are optimistic for the future.” 


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-September 2013  

On Wednesday, October 23, 2013, 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:             Wednesday, October 23, 2013 at 09.30 CET
Phone number:          +46 8 519 990 30 or. +44 207 660 2079


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 October 23, 2013 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 is a leading global provider of software solutions for document process automation 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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