Release from ReadSoft AB’s Annual General Meeting 2014

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| Source: ReadSoft AB
President and CEO comment:
Per Åkerberg, ReadSoft’s President and CEO concluded in his presentation at the
Annual General Meeting that 2013 was a moderate year for ReadSoft with flat
sales adjusted for currency effects. The vital license sales more or less also
remained unchanged during 2013 with 1% growth in constant currencies.
In May 2013 ReadSoft acquired Expert Systems Development Svenska AB (Expert
Systems), an influential supplier of cloud-based services for electronic
business with one of the leading cloud-based networks for exchanging e-invoices
and other electronic documents in the Nordics. The acquisition of Expert Systems
gave ReadSoft a new product with large global potential that will both
strengthen and expand ReadSoft’s cloud offering and create great upselling
opportunities for ReadSoft’s subsidiaries that also are recurring revenue based.
Per Åkerberg pointed out ReadSoft’s strategy to increase recurring revenue,
consisting of license revenues from our subscription model and our cloud
services, and revenue from support and maintenance agreements. The work on
increasing our recurring revenue developed very positively during 2013 and
accounted for 47% of total sales and increased by approximately six percentage
points during 2013. This will have a very positive impact on ReadSoft’s future
profitability.
Per Åkerberg commented on the cost reduction program that was initiated during
the second quarter and that was finalized in the fourth quarter of 2013. The
cost reduction program resulted in restructuring costs of 9 MSEK and
approximately 30 employees left the company. The annual cost savings from the
program will be in the range of 20-22 MSEK. The cost savings will be partially
reused for investments and recruitments where the company sees good potential
for growth. Per Åkerberg concluded that ReadSoft’s EBITDA result was positive
for the full year after a strong fourth quarter, but not at all on the level
that he and the Executive Management Team expected. The result was negatively
affected by the fact that several new large license deals were subscription
based, which affects the result in the short run, by non-recurring costs related
to the cost reduction program, by non-recurring costs associated with the
acquisition of Expert Systems and by a decrease in the billable consulting hours
during the first quarter 2013. Per Åkerberg also concluded that ReadSoft’s cash
flow from operating activities remains strong.
Per Åkerberg mentioned that ReadSoft in the beginning of 2013 reorganized the
sales organization for the company’s Oracle solutions, creating a dedicated team
working exclusively with Oracle sales on a global basis. This change proved to
be very positive and the license sales for Oracle more than doubled during 2013.
On the product side XBOUND was launched in North America with an immediate
success, and several important product launches were made such as INVOICES 5-7,
PROCESS DIRECTOR 7.2 and PROCESSIT 7.3 among others.
Per Åkerberg also talked about the first quarter of 2014, a quarter where
ReadSoft moved in the right direction with steady growth and improved EBITDA
margin. He further stated that ReadSoft’s growth curve is positive and the sales
growth is 8% in constant currencies compared to the corresponding period last
year. ReadSoft’s license growth is really strong and grew by 27% in constant
currencies compared to the corresponding period last year. The cash flow from
operating activities remains strong.
Per Åkerberg mentioned that the growth ReadSoft had during the quarter wasn’t
based on any single major deal; all the company’s regions have performed well.
He also mentioned that the sales organization for XBOUND that is organized in
line with the same model as for ReadSoft’s Oracle sales had very good growth
during the first quarter, and that the Invoice Portal, ReadSoft’s e-invoicing
solution, also contributed with good growth generated from upselling
opportunities to our existing customers.
The work on increasing ReadSoft’s 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
ReadSoft’s total sales.
Per Åkerberg mentioned that ReadSoft’s EBITDA result and margins have taken
clear steps in the right direction. The problems ReadSoft experienced during the
first quarter in 2013 with decreasing consulting revenues affected the result
negatively and prompted some actions. These actions have led to a streamlined
more effective consulting organization. He also mentioned a gradual change in
the reporting of ReadSoft’s revenues from support and maintenance agreements
that affected the first 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.
On the product side of the business we presented, at the global conference
Convergence 2014 in Atlanta, USA, that our invoice automation solution is now
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.
Per Åkerberg concluded by stating that ReadSoft is well positioned for the
future and that the company will continue to work for growth and to prioritize
improving the profit margin.
Resolutions at the Annual General Meeting:
At the Annual General Meeting were the Directors Göran E Larsson (chairman), Jan
Andersson, Lars Appelstål, Lennart Pihl, Håkan Valberg and Peter Gille re
-elected for a new period. The annual meeting also re-elected Öhrlings
PricewaterhouseCoopers AB as auditors until the end of the Annual General
Meeting 2015.
The annual meeting decided on a dividend of SEK 0.60 per share with May 2, 2014
as the day of record for dividend.
The meeting decided that a nomination committee shall be appointed with the
assignment in connection with next year's annual meeting to submit proposals,
among others, with respect to election of the Board of Directors, compensation
to the Board and the auditors and election of a Nomination Committee. The
Chairman of the Board shall invite a minimum of four of the largest shareholders
as per September 30, 2014, to appoint one representative each and to together
with the Chairman comprise the Nomination Committee.
The annual meeting decided to authorize the Board of Directors to, at one or
several occasions, up to the next annual meeting 2015, execute new issues of
shares with maximum 3,200,000 shares, series B. The new shares may be issued
with deviation of shareholders' preferential rights. The reasons for the Board
to be able to deviate from shareholders' preferential rights are that financing
may be required in connection with future acquisitions with payment in shares
and/or issue of new shares with payment in capital contributed in kind.
The Board withdraw its proposal for decision on the issue and transfer of
convertibles and informed about its ambition to come back with a revised and
more adapted proposal.
The annual meeting decided to authorize the Board of Directors, at one or
several occasions, up to the next annual meeting 2015, decide on purchase and
transfer of own shares. Purchase may be made of a maximum number of shares so
that the company’s possession of shares at each point in time does not exceed
ten % of the total number of shares in the company. Transfer may be made without
the shareholders preferential rights on NASDAQ OMX Stockholm and to third
parties in connection with acquisition of companies or businesses. The purpose
of the authorization is to give the Board of Directors possibility to adjust the
company’s capital structure and to enable acquisition financing through use of
own shares.
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 16:30 CET.

For additional information, please contact:
ReadSoft AB
Johan Holmqvist, Vice President, Corporate Communications
Phone: +46 708 37 66 77
Email: johan.holmqvist@readsoft.com
Kristin Widjer, Legal Counsel
Phone: +46 42 490 21 29 alt. +46 733 37 86 79
E-mail: kristin.widjer@readsoft.com

About ReadSoft. ReadSoft simplifies business for organizations of all sizes with
applications for business processes such as accounts payable
automation (http://www.readsoft.com/solutions/by-department/accounts-payable
-automation), accounts receivable (http://www.readsoft.com/solutions/automation
-for-sap/accounts-receivable), sales order
processing (http://www.readsoft.com/solutions/automation-for-sap/sales-order
-processing-sap), and multichannel mailroom
automation. (http://www.readsoft.com/solutions/document-process
-automation/mailroom-automation) Its on-premises and cloud document process
automation solutions (http://www.readsoft.com/solutions/document-process
-automation/mailroom-automation) enable some of the world’s largest corporations
as well as small and medium businesses to compete and thrive in today’s
environment by improving customer and supplier satisfaction, increasing
operating efficiency, and providing greater visibility into business processes.
ReadSoft is the world’s number one choice for invoice processing
automation (http://www.readsoft.com/solutions/document-process
-automation/invoice-processing), and its applications integrate seamlessly with
ERP systems from SAP (http://www.readsoft.com/solutions/automation-for-sap/sales
-order-processing-sap), Oracle (http://www.readsoft.com/solutions/automation-for
-oracle-e-business-suite), Microsoft (http://www.readsoft.com/solutions/document
-process-automation/invoice-processing-for-microsoft-dynamics), as well as with
many other business systems. Since 1991, the company has grown into a worldwide
group, delivering industry expertise and support in 17 countries on six
continents through its local and global partner network. ReadSoft is
headquartered in Helsingborg, Sweden, and its share is traded on the NASDAQ OMX
Stockholm’s Small Cap list. Visit
www.readsoft.com (http://file///C:/Users/Sara%20Hagsten/Desktop/www.readsoft.com
) 
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