Interim report January - March 2001

Interim report January - March 2001 · Net sales rose 27% to SEK 31.5 million (SEK 24.8 m) · The result prior to goodwill depreciation amounted to -SEK 15.8 million (-SEK 29.7 m), which corresponds to an improvement with 47% · The result for the period was -SEK 15.2 million (-SEK 37.4 m) · A successful programme of measures cut costs, mainly within System Products · Sverker Hannervall was appointed new President and CEO. The management group was reinforced · Trio Present Office for Trio Mobicentrex was launched The operations Trio is a telecommunications company that develops software and systems solutions with a focus on corporate telephony and value-added call handling and that integrates fixed, mobile and IP telephony. Customers are mobile operators, service providers, companies and organisations, and a total of almost 2,000 systems have been delivered. Trio's solutions enhance efficiency, the level of service and the work environment for corporate attendant functions. They also increase reachability for units and individuals within the company. Higher reachability and availability improve service, thus enabling companies to enhance customer relationships and sharpen their competitive edge. Key events during the period The Q1 net sales of the Trio group amounted to SEK 31.5 million (SEK 24.8 m). The rise in net sales was generated within the Operator Solutions and Customized Systems business areas. At group level, costs have been cut by 14% to SEK 46.7 million (SEK 54.5 m). Savings have been achieved mainly through the programme of measures within Trio Information Systems AB (System Products' Swedish operations) as described in more detail below. High development costs were incurred in all the business areas last year. This means that, Trio now can offer state-of-the-art, stable and future-proof systems that can manage 3G mobile telephony and IP telephony. The development costs were cut by 25% during the period under review to SEK 10.5 million (SEK 14.1 m). System Products. A strategic deal within the business area was concluded when Trio signed its first agreement relating to Trio Present Mobile Extensions. The agreement with Ernst & Young involves mobile phone users at the company being managed as though they were using fixed telephones in the office. They have access to the advanced telephony functions of Trio PresentOffice, while mobile telephony costs are cut. Over the period, Trio PresentOffice was also launched for Cisco's Call Manager. This means that IP telephone users can obtain the same functionality as that offered by traditional fixed telephony switches. Operator Solutions. Upgrades of Mobicentrex, Trio's mobile office solution, were performed during the period at Telenor Mobile and Sonera. This solution, which is ideal for small companies, enables them to completely replace their fixed telephony with mobile phones. Customized Systems. The business area's sales of interactive response systems and of contact and call centres have continued to perform very well indeed. During the period under review, an upgrade was delivered for a public address system installed in the Stockholm underground network that provides travellers with traffic information through loudspeakers. New President and a stronger management group Sverker Hannervall took over as President and CEO on 5 March. In addition, the management group has been strengthened with Jan Gustavsson (appointed new MD of Objecta Systems), Thomas Doycon (appointed VP Sales Director Trio AB), and Lars Gärde (appointed acting CFO). The launch of Trio Mobicentrex - Trio Present Office During the period, Trio Present Office for Trio Mobicentrex was launched. This means that Trio Present Office's unique attendant function will be added to Trio's mobile office solution. This combination enables mobile operators to offer a highly qualified solution as a service to their customers. Trio's mobile office will thus become an alternative even for larger companies too. Trio Present Office for Mobicentrex forms an important part of Trio's offering of high-end solutions to large copanies and organisations. It includes systems from two or three out of Trio's three business areas. Programme of measures within System Products In the autumn of 2000 and Q1 2001, a comprehensive restructuring programme within System Products has been implemented with a view to enhancing efficiency within both sales and marketing and delivery and support. The measures are expected to reduce costs within System Products by just over SEK 15 million in 2001. In order to enhance sales in 2001, the business area's channel strategy has also been enhanced through certification and establishing closer collaboration with selected partners, such as Telia, Telenor and TeleDanmark. Staff The number of employees within the group at the end of Q1 was 145 (184). Investments Investments in equipment and computers amounted to SEK 0.4 million (SEK 1.3 m) in Q1. Financial status and liquidity At the end of the period, the equity/assets ratio was 70% (86%) and liquid assets amounted to SEK 83.7 million (SEK 58.2 m). Outlook for 2001 After the turn of the millennium there was a drastic drop in demand in the Nordic region, mainly within the System Products business area. There has, however, been a increase in demand during the period, and Trio believes that the conditions to increase licence revenues are now in place, thus boosting business volumes in the Nordic region and internationally. System Products is expected to demonstrate an increase in net sales and a substantial improvement in financial result. Customized Systems is expected to continue to develop positively. The demand for Operator Solutions mobile solutions is expected to grow 2001. Trio maintains its forecast of organic growth of at least 50% at group level, as is a positive operating profit prior to goodwill depreciation by Q3 2001 at the latest. The major share of revenue increase is forecasted to come from business area Operator Solutions. The revenue stream is however depending on some major contracts and is therefore difficult to project. Upcoming financial information The half-year report for 2001 will be published on 26 July The 9-month interim report will be published on 25 October. Stockholm 26 April 2001 Trio AB (publ) The Board of Directors For more information, please contact Sverker Hannervall, President and CEO, tel.: +46 8 457 30 00, or Chairman of the Board Ion Bogdaneris, tel.: +47 23 11 70 00 This report has not been subject to review by the company's auditors. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/04/26/20010426BIT00890/bit0002.doc The full report http://www.bit.se/bitonline/2001/04/26/20010426BIT00890/bit0002.pdf The full report