Sign On i Stockholm AB (publ) Interim report 1 January - 30 June 2002

Sign On i Stockholm AB (publ) Interim report 1 January - 30 June 2002 Financial information January - June · Net sales rose by 30 percent and amounted to SEK 12.3 million (9.5). · Profit/loss improved by 8 percent and amounted to SEK -13.9 million (-15.1). · Liquid assets and current receivables amounted to SEK 25.7 million (13.0). · Sign On was listed on Stockholm Stock Exchange O-List on 27 June. · Sign On implemented a new share issue, which brought the company SEK 22 million after issue expenses. Summary of second quarter · Net sales rose by 19 percent and amounted to SEK 5.2 million (4.4). · Increased sales resources and deferred investment decisions among customers resulted in a 22 percent decrease in profit/loss, which amounted to SEK -8.9 million (-7.3). · FormPipe pilot projects with Nordea and the National Land Survey of Sweden. Forms Hotel in four new municipalities, Östersund, Halmstad, Norrköping and Mönsterås. Events after the end of period/Future prospects · Sign On has obtained a Swedish patent for the FormPipe software. The fact that we have a Swedish patent and the City of Stockholm as one of our reference customers makes it easier for other companies and authorities to select FormPipe to receive information over the Internet. Sign On has also applied for a European patent and patents in the USA and Canada. Contact person: Bosse Falgard, Chief Executive Officer, Sign On i Stockholm AB (publ) Svärdvägen 3B, Box 22, 182 11 Danderyd, corp.id. no. 556431-0067 Tel: 08-555 290 00, 070- 946 05 68, e-mail: bosse.falgard@signon.se About Sign On Sign On is a software company, which offers a total solution, allowing everyone quick and cost-effective access to electronic forms and documents and enabling them to send information over the Internet with or without an electronic signature. Sign On operations are divided into three business units, FormPipe, Sign On Forms Archive and Sign On Forms Hotel/Forms Construction. The head office is situated in Danderyd with 66 employees and the sales office is in Helsingborg. FormPipe FormPipe is in-house developed software enabling companies, municipalities and authorities to securely receive information over the Internet. With FormPipe, a citizen can fill in a form or application with an electronic signature and send it directly via the Internet to the municipality, which is able to automatically receive the content and save the application electronically. Sign On Forms Archive Sign On Forms Archive is an Internet service to which companies can subscribe on an annual basis. The archive holds over 4,500 agreement templates and forms etc. for the office. Instead of a company producing its own internal templates, everything can be accessed over the Internet - constantly updated - around the clock. Sign On Forms Hotel and Forms Construction Sign On Forms Hotel is a service enabling companies, municipalities and authorities to publish their own forms for internal use and also to provide forms for their customers, citizens and inhabitants. Sign On constructs the forms, offers support and ensures that they are accessible over the Internet around the clock. Summary of important events during the quarter During the first two quarters the market was characterised by a cautious attitude to new projects and investments among our customers. This was particularly evident in the FormPipe business unit, which saw projects postponed. Despite this, Sign On's net sales increased by 19% in the second quarter compared with the same period the previous year. · On 27 June Sign On was listed on the Stockholm Stock Exchange O- List, which will enable us to reach new shareholders and make it easier to carry out more extensive business deals in Sweden and Europe. The Sign On share has been quoted on the new Market list since June 2000. · In May Sign On implemented a new share issue, which brought the company an additional SEK 22 million after issue expenses. The purpose of the share issue was to finance further development and sales of Sign On's services and products in Sweden and internationally. · During the second quarter, Statskontoret (the Swedish Agency for Public Management) handpicked a number of suppliers that will be invited to offer solutions to authorities and municipalities during autumn. The purchasing will include e-forms and e-registry (a perfect application of FormPipe for receiving and registering information). · An EU directive will result in changes to the law among the individual member states. The new law, which comes into force on 1 January 2004, is aimed at increasing security during the processing of electronic invoices. At the present time, PKI (Public Key Infrastructure) is the only way to securely identify oneself and sign information on the Internet. The new law will pave the way for Sign On to develop new FormPipe solutions for sending and receiving signed electronic invoices. · Continued increase in the sales of forms hotel to municipalities and county councils. Sign On now supplies forms hotel to just over 40 municipalities and 7 county councils. New Forms Hotel customers include Östersund, Halmstad, Norrköping and Mönsterås. Financial and other information Sign On's net sales during the second quarter of 2002 amounted to SEK 5,186 thousand (4,360), which is an increase of 19% compared with the same period the previous year. Net sales for the first half-year amounted to SEK 12,341 thousand (9,486), which is an increase of 30% compared with the same period the previous year. Profit/loss after net financial income/expense for the period was SEK - 8,941 thousand (-7,295). The total profit/loss for the first half-year after net financial income/expense is SEK -13,979 thousand (-15,133), which is an improvement of 8 percent. Personnel expenses increased by 30 percent compared with the previous year. This is due to the fact that the number of employees increased by 15. Most of the new appointments were in sales. FormPipe · Net sales during the second quarter amounted to SEK 0.6 million Net sales for the first half-year amounted to SEK 1.2 million · Profit/loss after net financial income/expense during the second quarter amounted to SEK -5.2 million Profit/loss after net financial income/expense for the first half-year amounted to SEK -9.1 million · There were no capitalised development expenses during the period Sign On Forms Archive · Net sales during the second quarter amounted to SEK 2.6 million Net sales for the first half-year amounted to SEK 6.8 million · Profit/loss after net financial income/expense during the second quarter amounted to SEK -2.0 million Profit/loss after net financial income/expense for the first half-year amounted to SEK -1.8 million · Sign On recruited replacement salespersons during the first half-year · Sign On has invested in large-scale new development of legal templates Sign On Forms Hotel/Forms Construction · Net sales during the second quarter amounted to SEK 2.0 million Net sales for the first half-year amounted to SEK 4.3 million · Profit/loss after net financial income/expense during the second quarter amounted to SEK -1.8 million Profit/loss after net financial income/expense for the first half-year amounted to SEK -3.1 million · A number of customers opted to postpone their projects until the third quarter Financial position The Company's liquid assets and current receivables amounted to SEK 25.7 million (13.0) at 30 June 2002. The equity/assets ratio was 72.8 percent (65.6). Equity was SEK 21.2 million (13.3), which corresponds to an equity per share of SEK 2.56 (1.87). During the second quarter 2002 the company implemented a new share issue of 857,618 shares, which brought an additional SEK 21.9 million after issue expenses. Following this new share issue, the number of shares amounted to 8,266,618 (30.06.2002). Investments New investments in tangible fixed assets amounted to SEK 0.6 million (1.7) for the half-year. The investments related mainly to the acquisition of computer equipment for new employees. Depreciation on equipment amounted to SEK 1.2 million (1.3). Research and Development expenses During the first and second quarters the Company did not capitalise any development expenses. Tax Deferred tax assets in the form of deficit deductions are only reported insofar as these will result in lower tax payments in the future. Future prospects At the start of the third quarter Sign On obtained a Swedish patent for the in-house developed FormPipe software. This decision came at an opportune time, as Statskontoret is now purchasing systems for Swedish authorities. An important reference in the City of Stockholm and a Swedish patent make companies and authorities more likely to choose FormPipe to receive information over the Internet with or without an electronic signature. During the year Sign On has implemented a large-scale new development of legal templates and initiated a development project for helping human resources departments in companies. Sign On will invest just over 1,000 hours before the end of the third quarter. This will make it easier for Sign On's salespersons to renew existing subscriptions and hotels, and also to sell to new customers, large and small. All companies need templates, forms and checklists for personnel and employment business. Sign On has a finished concept to offer companies and authorities, from individual forms to an advanced piece of software for the receipt of large quantities of information. During the first half-year Sign On has employed and trained a number of salespersons, in order to increase sales in the second half of the year. Accounting principles This interim report has been prepared in accordance with the Annual Accounts Act and the Swedish Accounting Standards council's recommendations. From 2002 several new recommendations from the Swedish Accounting Standards Council will come into force. Where these have been applied, there have been no changes from the principles used in the most recent annual accounts. As the Swedish Accounting Standards Council's new recommendation RR 15, Intangible Fixed Assets, came into force, Sign On examined whether the Company's development expenses represent an item that can be capitalised as an intangible fixed asset in accordance with the above recommendation. It was established that development expenses that can be capitalised may arise in the Company during performance-enhancing development of the software program, FormPipe. These development expenses may be internal expenses, mainly salary expenses, and also consulting expenses. Forthcoming reports/AGM Interim report, January - September 2002 31 October 2002 Financial statements 20 February 2003 Danderyd, 28 August 2002 Bosse Falgard Chief Executive Officer ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/08/28/20020828BIT00920/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/08/28/20020828BIT00920/wkr0002.pdf The full report