INTERIM REPORT

INTERIM REPORT                                            

JANUARY 1 - SEPTEMBER 30, 2010

Third quarter - July 1 - September 30, 2010

  · Net sales: SEK 318 m (293)
  · Operating profit: SEK 12 m (7)
  · Operating margin: 3.7 % (2.4 %)
  · Profit after tax: SEK 6 m (4*)
  · Earnings per share after dilution: SEK 0.07 (0.05*)

 

January 1 - September 30, 2010

  · Net sales: SEK 1,053 m (1,085)
  · Operating profit: SEK 46 m (46). Restructuring costs of SEK 20 m
were charged against earnings in the preceding year.
  · Operating margin: 4.3 % (4.2 %)
  · Profit after tax: SEK 30 m (42*)
  · Earnings per share after dilution: SEK 0.39 (0.55*)
  · Cash and cash equivalents SEK 71 m (134)

 

Statement by Carl-Magnus Månsson, CEO

The market situation improved during the third quarter in several of our
markets. Growth in net sales amounted to 12 percent in local currency
and the operating profit improved. The result for the quarter was
charged with costs of approximately SEK 5 m attributable to estimated
additional costs in three major customer projects and with approximately
SEK 2 m arising from management changes in Denmark. Our ongoing work on
operational efficiency continues with the aim of increasing the
operating margin to a more satisfactory level.

Although Sweden is growing in line with strong market conditions, our
expectations of improved profits have not materialized in each
competence area. I am happy to report that operations in Germany are
developing positively after a weak start to the year. The order book in
Norway improved significantly in the third quarter and the Oslo office
is still reporting strong demand for strategic IT services.

Finland and the UK continue to deliver growth and high margins.
Operations in Denmark continue to be weighed down by a combination of
low prices and an unsatisfactory utilization. The Managing Director of
the Danish subsidiary left the company in September and further changes
in management were made at this time. The cost of these changes amounted
to approximately SEK 2 million for the quarter.

We are proud of being appointed a Subscription Partner of SAP and the
first supplier in the Nordic market to sign a Software as a Service
agreement. Cloud based deliveries are one of our focus areas and we see
favorable opportunities to grow and take a leading position.

We continue to have a need for further recruitment and have been unable
to grow the work force at the planned pace. In the short-term, we are
meeting demand by developing our subcontractor business. Recruitment
efforts were intensified in September and October.

*No tax expense was charged against earnings in 2009.

For further information, please contact:
Carl-Magnus Månsson, President and CEO +46 8 699 73 77
Lotta Jarleryd, CFO +46 8 699 74 14