Telelogic Interim Report, July - September 2007
- Revenue climbed 21% in local currency during the third quarter to SEK 428.5 million.
- Sales of licenses and maintenance rose 20% in local currency. Sales of services increased by 23% in local currency.
- Pre-tax profit increased 79% to SEK 75.4 million for the quarter.
- Earnings per share increased by 77% for the third quarter and amounted to SEK 0.23/share.
- Cash flow from current operations was SEK 189.9 million during the first nine months of the year.
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CEO’s comments on the quarter:
“Operations showed good growth during the third quarter of 2007. The uncertainty that was the natural response to the bid for Telelogic announced on June 11 initially had a negative impact on operations. Telelogic initiated a campaign to handle this uncertainty both internally and externally. The delay of the offer announced on July 30 drew attention to current business and core operations. During the third quarter customer trust gradually returned and Telelogic closed an unusually large number of major transactions, including the company’s largest deal ever, worth SEK 91 million. A number of these deals were planned to be closed during the second quarter, but were delayed and signed in the third quarter. Organic growth was 21 percent for the third quarter, while pre-tax profit surged 79 percent.
The new product focused organization is working well and all product categories showed good growth. It is particularly gratifying that requirements management once again showed strong growth with a 31 percent increase. Once again, the EMEA Market Division was the geographic area that showed the strongest growth at 36 percent.
Based on our strong third quarter and the first nine months, Telelogic is revising its forecast upward for the year. Our assessment is that growth for 2007 will fall in the range of 12 to 15 percent in local currency and that the increase in earnings per share will exceed 25 percent year on year.”
Anders Lidbeck, President and CEO for Telelogic
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Key numbers July - September 2007
Revenue: 428.5 SEK million (370.1 SEK million)
Pre-tax profit: 75.4 SEK million (42.2 SEK million)
Income after tax: 55.8 SEK million (31.7 SEK million)
Earnings per share: 0.23 SEK (0.13 SEK)
Cash flow, current operations: 21.4 SEK million (35.0 SEK million)
Key numbers for corresponding period from previous year in parenthesis.