Translation of an announcement published in Icelandic on 20 July 2007 at
18:12:07.
Nyherji's results during the first half of 2007
Income grew by 24%. EBIDTA was ISK 156 million during the quarter.
• Nyherji's income during Q2, 2007, amounted to ISK 2,637.3 million, an
increase of 24% from the same quarter last year.
• Nyherji's profits after taxes during Q2 were ISK 104.1 million, compared
to ISK 29.4 million for the same period last year. EBIDTA amounted to ISK
156.4 million during Q2 and ISK 301 million during the first half of the
year.
• In May, Nyherji purchased the Danish company DanSupport A/S.
Q2 operations
Nyherji's income during the second quarter was ISK 2,637.3 million, compared to
ISK 2,123.0 million for the same quarter the previous year. Nyherji's profit
after taxes and depreciation during Q2 amounted to ISK 102.5 million, compared
to ISK 29.4 million for the same period the previous year. Profits from
operations amounted to ISK 132.3 million compared with ISK 129.4 million in the
same quarter the year before. Q2 EBIDTA amounted to ISK 156.4 million, compared
to ISK 154.2 million for the same quarter last year.
Performance during the first six months of 2007
During the first six months of 2007, Nyherji's income amounted to ISK 5,026.2
million, compared to ISK 4,032.2 million the previous year, an income increase
of 24.7% between years. EBIDTA was ISK 300.6 million, or 6.0%, compared to ISK
312.6 million during the first six months of 2006. Profits after taxes during
the period were ISK 209.0 million, compared with ISK 83.7 during the same
period in 2006.
Income from product sales and related services amounted to ISK 3,478.8 million,
with these activities earning ISK 185.0 million in operating profits.
Income from software, related services and consultancy amounted to ISK 1,624.5
million, and operating profits from these activities were ISK 69.5 million
during the first six months of 2007.
Full-time equivalent positions (FTEs) at Nyherji and its subsidiaries are a
total of 453, up by 29% since the beginning of the year.
Financial expenses and development of equity
The Q2 financial expenses of Nyherji hf. amounted to ISK 5.7 million, compared
to ISK 92.2 million the previous year.
Nyherji's equity on June 30, 2007 amounted to ISK 1,520.5 million while it was
ISK 1,397.0 million at the beginning of the year.
Nyherji operations
In May, Nyherji purchased all the shares in DanSupport A/S whose headquarters
are in Odense in Denmark. The company provides system integration and hosting
services for IT and communications equipment for medium sized companies.
DanSupport employs 33 consultants and technicians. The company has offices in
Copenhagen and in Kolding in Jutland in addition to its headquarters in Odense.
There are plans for a substantial increase in the operation of DanSupport this
year and the next, and no profits are anticipated from the operation of the
company until next year.
The digital lifestyle store, Sense, was opened in June to follow-up on
considerable growth in Nyherji's Audio and Video Solutions Department. Sense is
located at Hlidarsmári 3 in Kópavogur and offers solutions for digital
lifestyles involving a diverse range of video and audio solutions for modern
homes as well as the latest technology for unified controls of heating,
lighting and security systems. Sense has 25 employees who handle consultancy,
sales and installations of Sense solutions.
During the first half of the year there has been considerable growth in the
sale of Lenovo and ThinkPad computers, Canon cameras, telephone systems and
audio and video equipment. Moreover, sales of servers and storage solutions
from IBM and power back-up solutions from APC have exceeded expectations, and
prospects are good for the latter half of the year. There are satisfactory
results from technical consultancy and services, and there are also good
results from hosting services, which has attracted many new customers.
Subsidiaries
The operation of AppliCon ehf. and AppliCon A/S in Denmark was in accordance
with the projections of the companies. The main project being handled by
AppliCon A/S involves extensive work on the implementation of SAP financial
solutions at DONG Energy A/S as well as consultancy projects for various larger
companies in Denmark. AppliCon ehf. in Iceland continued installation of a
banking solution for Kaupthing bank. Moreover, work was carried out on the
implementation of SAP financial solutions for ASKAR Capital and Microsoft
installations for Novator, Landsbanki, Marel and other companies.
Furhter developments have been made in AppliCon offices in London and in
Stockholm to serve markets in the U.K. and Sweden. Furthermore, AppliCon
Solutions AS in Denmark has invested considerably in the development of
software for access management in SAP. During the first half of the year,
approximately ISK 65 million has been charged to the accounts of AppliCon
Holding ehf. as development cost for these three projects, and projections
anticipate that this investment will begin to return normal dividends within
twelve months.
The operation of the subsidiary ParX ehf. business consultancy was successful
during Q2; income exceeded projections and results were in accordance with
goals. The number of consultants at ParX increased and the company plans to
hire more people in the autumn to stay in tune with project position of the
company. Among other things, ParX participated with the Institute of Economic
Research at the University of Iceland and the Confederation of Icelandic
Employers in a study on gender related wage differences. The study is based on
data that ParX has collected over the last years, which cover the wages of over
6,300 employees working in approximately 100 companies. ParXs project position
is good and upcoming are projects that will be embarked on for many of
Iceland's major enterprises, institutions and public companies.
The operation and results of the new subsidiaries Tölvusmidja Austurlands ehf.
and Linkur ehf. are as anticipated and prospects for the year are good.
Prospects
Income during the first half of the year exceeded projections somewhat, and it
is currently anticipated that Nyherji's total income in 2007 will be over ISK
10 billion, and that projections for results during the latter half of the year
will be realised.
Decision of the Board of Directors
At a meeting of the Nyherji Board of Directors on 20 July 2007, the Board
approved the interim statement for the second quarter of 2007. The statement
has been examined by the auditors of the company.
About Nyherji hf.
Nyherji is one of Iceland's leading IT firms and offers a wide range of
products, services and solutions for companies and individuals. Nyherji also
supplies diverse solutions for businesses' internal technological and operating
environment.
Nyherji's role is to create added value for its customers through expertise and
knowledge of its employees of IT, business operations and clients needs.
Nyherji is the Icelandic partner for many well known ICT companies including
IBM, Lenovo, AVAYA, Canon, Sony, Microsoft and Cisco.
The company was founded in 1992 and traces its roots to IBM and various
Icelandic service companies. The Nyherji group had a turnover of 735 million
dkk and EBITDA of 58m dkk in 2006.
Members of the Board of Directors are Benedict Jóhannesson, Chairman, Árni
Vilhjálmsson and Gudmundur Jóh. Jónsson. The Managing Director of the company
is Thórdur Sveinsson.
Further information can be obtained by telephone, +354
569 7711 / +354 893 3630. Nýherji's website is www.nyherji.is.