Interim Report January-March 2014

Very strong license growth

  · License revenue for January-March increased with 27 percent to SEK 53.4
(42.0) million
  · Sales for January-March increased with 9 percent to SEK 176.8 (162.6)
million
  · Operating profit EBITDA for January-March was SEK -9.3 (-17.6) million
  · Earnings per share after tax for January-March were SEK -0.39 (-0.38)
  · Cash-flow from operating activities for the period was SEK 54.2 (30.4)
million

CEO comment:
Very strong license growth
“ReadSoft continues to take steps in the right direction and we are following up
the strong fourth quarter with a first quarter showing growth and improved
margins. Our total sales grew 8 percent, adjusted for currency effects, compared
to the corresponding period last year. It is gratifying to see that the vital
license sales is very strong and that it increased by 27 percent in constant
currencies compared with the same period last year. Our cash flow from operating
activities continues to be very strong.
All our regions have performed well and the growth we had during the first
quarter is not based on any single major deal. We are already seeing positive
results from the change we made in the fourth quarter of the sales organization
for XBOUND. XBOUND had good growth in the quarter and we have closed a number of
new deals in markets where we previously did not have any XBOUND sales, such as
in Australia. The Invoice Portal, our e-invoicing solution, has also contributed
with good growth and it is satisfying to note that we in a good way have been
able to exploit the upselling opportunities that our existing customers
represent.
The work on increasing our recurring revenues continues to develop positively.
The recurring revenues increased by 14 percent during the quarter compared with
the same period last year and represented more than 50 percent of our total
sales. On a rolling 12 months basis the recurring revenues increased by 13
percent and accounted for approximately 47 percent of total sales. The positive
development of the recurring revenues is very important for our future revenue
mix.
Our EBITDA result and our margins have taken clear steps in the right direction.
Corresponding period last year we experienced a decrease in our consulting
revenues, which affected our results and prompted some actions. These actions
have led to a streamlined organization and to fewer consultants this quarter
compared to last year, but we still report an improved result. A gradual change
in the reporting of our revenues from our support and maintenance agreements has
affected this quarter’s result negatively compared to first quarter last year.
This effect means no lost revenue but only a time delay in the reporting of
these revenues.
During the first quarter our markets in Germany, USA, France, Spain and Sweden
have shown the way with good growth and profitability. On the product side of
the business we presented, at the global conference Convergence 2014 in Atlanta,
USA, that our invoice automation solution now is available to all Microsoft
Dynamics users, regardless of which platform they use. We also launched and
presented the latest version of our invoice automation solution for Oracle,
PROCESSIT (7.3.1), at the international conference COLLABORATE 14 in Las Vegas,
USA.
We have improved our result and margins during the quarter and we will continue
to work for growth and to prioritize improving our profit margin. We have strong
license growth which guarantees further revenue for our organization, our
recurring revenues continue to grow and our growth areas develop positively.
This shows that ReadSoft is well positioned for the future and we are optimistic
about our potential for continued good development.”
Per Åkerberg
President and CEO
Read the entire report in the attached PDF.
Invitation to telephone conference / audiocast for the presentation of
ReadSoft's Interim Report for January-March 2014
On Tuesday, April 29, 2014, at 9:30 CET, are analysts, investors, media and
other interested parties invited to attend a telephone conference where
ReadSoft’s President and CEO Per Åkerberg will comment on the published report
and answer questions. The presentation will be held in English.
Link to webcast:                  click
here (http://financialhearings.nu/140429/readsoft/)
Day and time:                      Tuesday, April 29, 2014 at 09.30 CET
Phone number:                    +46 8 519 99351 alt. +44 20 7660 2078
You can also access the presentation via our website www.readsoft.se or
www.readsoft.com.
This is information of the type that ReadSoft AB (publ) is obligated to disclose
in accordance with the Swedish Securities Markets Act and/or the Financial
Instruments Trading Act. The information was submitted for publication on April
28, 2014 at 13:45 CET.

For additional information please contact:
Per Åkerberg, President and CEO
Phone+46 42 490 21 00
Johan Holmqvist, Vice President Corporate Communications
Phone: +46 42-490 21 98 or +46 708-37 66 77
Jan Bertilsson, CFO
Phone: +46 42-490 21 43 or +46 708-37 66 16
e-mail: firstname.lastname@readsoft.com

About ReadSoft
ReadSoft is a leading global provider of applications for automating business
processes in the cloud  (http://www.readsoft.com/solutions/document
-processing/capture-in-the-cloud)or on premise. ReadSoft is by far the world’s
number one choice for invoice processing
automation (http://www.readsoft.com/solutions/document-processing/invoice
-processing), especially into business systems from
SAP (http://www.readsoft.com/solutions/automation-for-sap) and
Oracle (http://www.readsoft.com/solutions/automation-for-oracle). ReadSoft’s
software enables companies to automate document processes such as accounts
payable processing (http://www.readsoft.com/solutions/by-department/accounts
-payable), and mailroom automation (http://www.readsoft.com/solutions/document
-processing/mailroom-automation). Since the start in 1991, ReadSoft has grown to
a worldwide group with operations in 17 countries on six continents and a
network of local and global partners. The head office is located in Helsingborg,
Sweden, and the ReadSoft share is traded on the NASDAQ OMX Stockholm's Small Cap
list. For more information about ReadSoft, please visit www.readsoft.com