STOCKHOLM, July 11, 2003 (PRIMEZONE) -- Frango's interim report, Q2 2003; Cost-saving measures resulted in Q2 profit
Software company Frango AB, which is listed on the 'O' list of the Stockholm Stock Exchange, has today reported a profit of SEK 0.5 million (-1.4m) following an improvement in the company's earnings net of financial items for the second quarter of 2003, amounting to SEK 1.9 million. This marks an improvement of SEK 12 million for the period January - June.
The positive earnings trend noted for the second quarter is largely the result of a successful cost savings programme, which enabled costs to be cut by 9 per cent during the second quarter and by 12 per cent during the period January - June.
This suggests that the company will achieve profitability for 2003 as a whole, according to its Managing Director, Tom Lofstedt: "Having successfully survived a tough programme of cost-saving measures we are now in a stronger position to target new markets. At the same time, we will of course continue to keep a close eye on our cost levels and will seek to make savings wherever possible."
Revenues for the period January - June 2003 amounted to SEK 121.9 million (125.5m). The decline is related solely to the strengthening of the Swedish krona in relation to other currencies.
The improvement in earnings was achieved despite continued sluggishness in a weak global market. However, market initiatives in Europe have yielded results and sales growth in countries such as the UK, Germany, France and Spain has been promising. All markets are now showing signs of an increase in software evaluation processes. "These signs suggest that our sales performance for the remaining six months of the year will be an improvement on that achieved in the second half of last year," says Managing Director, Tom Lofstedt.
In May, Frango released a major upgrade of its Frango Controller software, which included enhanced functionality. Having already gained some 40 new customers and armed with a fully-trained team of sales staff and consultants, the sales prospects for the remainder of the year have improved considerably.
The latest upgrade also included a Beta release of Frango Controller, which uses Oracle as the database. This is currently being tested as part of a pilot project with IKEA. Its launch during the autumn will expand Frango's potential market.
To read the entire interim report, visit www.frango.com Contacts: Tom Lofstedt, Managing Director, tel.: +46 (0)8 555 775 00, Karl Ove Gronqvist, CFO, tel.: +46 (0)8 555 775 00
Frango is a leading software company that specialises in the field of corporate financial control for organisations and groups. The company develops and supplies software and services through its international network of subsidiaries and distributors. Frango is headquartered in Stockholm. The Frango share is quoted on the 'O' list of the Stockholm Stock Exchange (Stockholmsborsen)
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