LINKOPING, Sweden, Feb. 15, 2002 (PRIMEZONE) -- Nexus:
Comments - Entire Year
-- Net sales increased by 34% to SEK 505.4 million (376.7).
-- The result before goodwill depreciation and structural costs
amounted to SEK 40.4 million (34.4), or 8.0% of net sales.
-- The result after financial items amounted to SEK 21.6 million
(14.2), or 4.3% (3.8%). The result for 2000 includes the reversal
of SPP funds totalling SEK 7.5 million.
-- The order book at year-end amounted to SEK 452.2 million (392.4).
-- Orders received during the year amounted to SEK 565.2
million (572.8).
-- Liquidity, unaccounted credit, totalled SEK 72.7 million (36.9)
at year-end.
-- The number of employees at the end of the year was 404 (314)
-- Investments were made during the year totalling SEK 44.8
million (310.5).
Comments - Q4 2001
-- Net sales for the fourth quarter amounted to SEK 144.8 million.
-- The result before goodwill depreciation amounted to SEK 11.6
million or 8.0% of net sales.
-- The result after financial items amounted to SEK 6.5 million.
-- Orders received during the quarter amounted to SEK 174.5 million.
-- During the period, Dagaz AB in Stockholm was acquired, as was
2B+D Sarl, Paris.
-- During the period, we launched Secure Messaging and the first
contract for this solution was signed with SSB in December.
The CEO's Comments on Developments During the Year 2001
2001 was a tough year, especially for the IT industry. The recession became noticeable even during the first six months of the year and the economic climate became even more depressed after the tragic events in the USA on September 11.
With these factors taken into consideration, Nexus developed very well. The Company reports a considerably better result thanks to the fact that our margins have increased and our sales have risen. The majority of the growth was organic, with only a small fraction coming from acquisitions. Nexus' position in the market has been strengthened, with the customer base widening at the same time as existing customers have increased their volumes. The volume of orders at the end of 2001 was very good. Nexus views the future with confidence.
Nexus' result has increased at a quicker rate than sales. Improvement in the margin is a result of the Company's ongoing work to increase profitability. Nexus' business model - complete commitments and partnership based on secured solutions - is the platform for this robust development and improved profitability.
Nexus' growth falls into the range judged by the Company as maintainable in the long-term, in spite of the strong downward trend experienced by the industry. The level of orders received is strong. During the fourth quarter, however, certain orders came in later than expected and could not be invoiced at the intended pace. This has meant that growth for the entire year lies in the lower end of the range the Company had predicted in its forecast.
Market Developments
Growth in the market for IT security is structural rather than market steered and is in the beginning of its development, even if short-term growth is affected - as is the industry as a whole - by pressure on prices and longer decision processes.
The trend towards greater demands on security in all IT and telecom applications and products has been clear and will grow in strength, according to assessments made by both the Company and external parties.
The restraint currently prevailing affects Nexus in that the number of preliminary studies and analyses is increasing, but the number of large projects embracing the entire Nexus business model has temporarily decreased.
The customers' choice of partner for the development and operation of new system solutions and products is, however, increasingly based on expertise and size within the security field, which is positive for Nexus and indicates that the company is in a good position to grow considerably when the market gains momentum again.
Our Customers
Invoicing to existing customers is at or above the level planned. The number of new customers is somewhat below planned.
Our international customers have been more active than before and the level of orders received and profitability are both good for that segment.
Acquisitions
Nexus acquired three companies during the year.
-- Navigamus Datakonsult AB
Gothenburg, 6 employees, Systems Development and
Project Management
-- Dagaz AB
Stockholm and Malmo, 17 employees, Security
-- 2B + D Sarl
Paris, 7 employees, Security
Co-Workers
At the end of the year, the Company employed 404 (314) persons. The average number of employees for the year totalled 371 (242). Personnel turnover totalled 9.4 % (19.8).
Finances and Profitability
The Company's net sales amounted to SEK 505.4 million.
Sales for the last quarter of the year amounted to SEK 144.8 million, and orders received totalled SEK 174.5 million.
The result amounts to SEK 40.4 million, before goodwill depreciation, which is equal to an operating margin of 8.0 % for the entire year.
The operating margin before goodwill depreciation was 8.0 % for the fourth quarter.
The result after financial items amounted to SEK 21.6 million for the year.
Cash flow from operations has been positive during the year.
Financial Position
The Group's liquid funds amounted to SEK 72.7 million at year-end. In addition to this, there are approved, unutilised checking account facilities totalling SEK 20.0 million.
During the fourth quarter, a directed new share issue totalling SEK 50 million was implemented, subscribed to by Swedish institutional investors.
Solidity at year-end amounted to 77 % (75%).
Investments in tangible and intangible fixed assets amounted to SEK 44.8 million for the year. Of this amount, SEK 5.8 million is attributable till machinery and equipment and SEK 39.0 million to acquisition-based goodwill.
Prospects for 2002
The Company's evaluation is that the economic climate will continue to be tough during 2002. A recovery can first be expected towards the end of the year. The segment in which the Company is active - Secured Solutions - is deemed to be slightly less affected by these market conditions.
Nexus' position in the market is strong. The order book shows a satisfactory level and orders received have continued to develop positively in the beginning of the year. Organic growth is predicted to be on the same level as the previous year.
Nexus' business model leads to higher profitability, both for the Company and our clients. The Company, therefore, counts on improving the operating margin.
Dividends
The Board proposes that no dividends be paid to the shareholders.
Financial Reports During 2002
The Annual General Meeting will be held on April 24, 2002 in Linkoping, Sweden. An announcement will be made in the daily press.
Nexus' Annual Report will be available as of April 15, 2002.
2002-04-24 Quarterly Report Jan - Mar 2002 2002-08-21 Quarterly Report Jan - Jun 2002 2002-10-24 Quarterly Report Jan - Sep 2002
The Year-End Report for 2002 will be made public on February 14, 2002.
The Company's annual accounts are, in all essentials matters, audited by the Company's auditors.
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The following files are available for download:
www.waymaker.net/bitonline/2002/02/15/20020215BIT00900/bit0002.doc Full Year-End Report www.waymaker.net/bitonline/2002/02/15/20020215BIT00900/bit0002.pdf Full Year-End Report