A challenging third quarter - Addnode Group can do better
Third quarter 2013
· Net sales totaled SEK 301.4 (291.3) M, up 3 percent.
· Adjusted EBITA amounted to SEK 14.4 (27.1) M, an EBITA-margin of 4.8 (9.3)
· Adjusted operating profit amounted to SEK 8.3 (22.0) M, an operating margin
of 2.8 (7.6) procent. 1)
· Profit after tax was SEK 0.9 (16.9) M
· Earnings per share after dilution amounted to SEK 0.30 (0.60).
· Cash flow from operating activities amounted to negative SEK 1.4 (-10.7)
January – September 2013
· Net sales totaled SEK 1 010.0 (970.3) M, up 4 percent.
· Adjusted EBITA amounted to SEK 62.5 (86.3) M, an EBITA-margin of 6.2 (8.9)
· Adjusted operating profit amounted to SEK 45.5 (71.8) M, an operating margin
of 4.5 (7.4) procent. 2)
· Profit after tax was SEK 28.9 (53.5) M
· Earnings per share after dilution amounted to SEK 1.01 (1.89).
· Cash flow from operating activities amounted to SEK 64.4 (48.9) MSEK.
1) Excluding non-recurring cost SEK -5.5 (0.0) M for management changes and for
the revaluation of the conditional purchase considerations totaling SEK -0.2
2) Excluding non-recurring cost SEK -5.5 (0.0) M for management changes and for
the revaluation of the conditional purchase considerations totaling SEK -0.2 (
Significant events during the third quarter of 2013
· Acquisition of Joint Collaboration AS, a Norwegian software company with
annual sales of approximately SEK 135 M.
· Order for e-archives for the Swedish National Police Board valued at SEK 10
Significant events after the end of the period
· Order for document and case management system and e-archive for Statistics
Sweden (SCB) valued at a minimum of SEK 9 M.
· Management changes at the Content Management business area.
A challenging third quarter
Addnode Group reported year-on-year growth of 3 percent during the third quarter
but the financial result has been unsatisfactory.
Protracted decision-making processes in the industrial sector impacted license
and service sales in the Design Management and PLM Management business areas.
However, we continue to increase the recurring revenue from support and
The Process Management business area, with the public sector as its market,
reported continued growth and stable margins. Customers have a positive view of
our e-service offering and we have secured several new case management orders
from such customers as the Swedish National Police Board, Statistics Sweden
(SCB) and several municipalities.
During the third quarter non-recurring costs were charged to the Content
Management business area relating to organizational and management changes, as
well as for new management in Denmark within business area Design Management.
Efforts are proceeding to restore an acceptable level of profitability to the
underperforming parts of the groups’ operation.
Addnode Group can do better than its third-quarter results suggest
There is a high level of activity in the Group and, over the past number of
months; we have participated in several major market events, such as the Technia
Innovation Forum, Cad-Q open days, TekisTräffen and iipax open days, which
attracted a total of nearly one thousand visitors.
As we leave the third quarter behind us, I am not satisfied with what we have
achieved in terms of financial results, but I am nevertheless hopeful and I know
that Addnode Group can do better. We have a long-term plan that does not depend
solely on the results of a single quarter. We are continuously implementing
measures to enhance efficiency and carrying out robust investments, such as the
acquisition of Joint Collaboration. We do not issue any forecasts, but Addnode
Group’s business is seasonal and, in historical terms, the fourth quarter
delivers the highest net sales and EBITA.
Staffan Hanstorp, President and CEO
For further infomration, please contact:
CEO and President
Tel: +46 733 772 430
Corporate Head of Communications
Tel: +46 704 205 831
The information in this interim report is such that Addnode Group must disclose
in accordance with the Swedish Securities and Clearing Operations Act and/or the
Financial Instruments Trading Act. The information was released on 25 October
2013 at 08:30 am.
About Addnode Group
Addnode Group offers mission-critical IT solutions. We are market leader in the
Nordic region in IT solutions for design, construction and product lifecycle
management for products and installations. Addnode Group commands a strong
market position in Sweden in the public sector, with an offering comprising case
management systems, e-services, administrative systems and web solutions.
We are 950 employees in Sweden, Norway, Finland, Denmark, Serbia, India and the
US. The Group is organized in four business areas under several brands. With
over 3,000 customers using our solutions in more than 60 countries in the public
and private sectors, we are continuing to build an extensive portfolio of
mission-critical IT solutions.
Net sales in 2012 amounted to SEK 1,365 M. Addnode's Series B share is listed on
the OMX Nordic List, Small Cap. For more information about Addnode Group, visit
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