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Formpipe Software

Quarterly Report Feb 10, 2016

3159_10-k_2016-02-10_ab52bdf4-f230-4a80-95cc-45e88bf47629.pdf

Quarterly Report

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Interim report January - December 2015

PERIOD OCTOBER 1 – DECEMBER 31, 2015*

  • Net sales SEK 93.1 m (SEK 86.9 m)
  • System revenue SEK 63.6 m (SEK 64.8 m)
  • EBITDA SEK 21.7 m (SEK 23.7 m)
  • EBITDA margin 23.3 % (27.3 %)
  • EBIT SEK 8.4 m (SEK 11.6 m)
  • Net profit SEK 4.3 m (SEK 6.3 m)
  • EPS before dilution SEK 0.08 (SEK 0.13)
  • Net profit from discontinued operations amounts to SEK -0.0 million (SEK 3.9 million). Payment received from sold discontinued business totaled SEK 3.9 million (- million)
  • Cash flow from operating activities SEK 34.2 m (SEK 41.3 m)
  • The board proposes a dividend of SEK 0.10 per share (-).

PERIOD JANUARY 1 – DECEMBER 31, 2015

  • Net sales SEK 349.3 m (SEK 307.0 m)
  • System revenue SEK 236.0 m (SEK 215.7 m)
  • EBITDA SEK 73.7 m (SEK 65.1 m)
  • EBITDA margin 21.1 % (21.2 %)
  • EBIT SEK 19.8 m (SEK 20.4 m)
  • Net profit SEK 9.4 m (SEK 8.2 m)
  • EPS before dilution SEK 0.17 (SEK 0.17)
  • Net profit from discontinued operations amounts to SEK 4.8 million (SEK 9.8 million). Payment received from sold discontinued business totaled SEK 3.9 million (- million)
  • Cash flow from operating activities SEK 68.8 m (SEK 67.0 m)
  • The board proposes a dividend of SEK 0.10 per share (-).

* Outcome and comparison figures in this report has been adjusted to reflect the remaining operations after the sale of the business area Customer Specific Solutions in Denmark during the fourth quarter. For additional information, see specification in the groups consolidated income statement summary and the note 8 quarters in summary.

INCOME STATEMENT - SUMMARY

Oct-Dec Jan-Dec
(SEK Million) 2015 2014 2015 2014
Net sales 93,1 86,9 349,3 307,0
whereof recurring revenue 43,6 38,7 168,4 152,8
EBITDA 21,7 23,7 73,7 65,1
EBIT - excluding one-off items 8,4 11,6 21,8 21,5
EBIT 8,4 11,6 19,8 20,4

COMMENTS FROM THE GROUP CEO

When excluding the divested business area (see more below) we make a good quarter, but we always have high expectations for the fourth quarter and the annual result is somewhat on the low side of what we think we should be able to achieve. However, both during and after the period, we have won several significant deals that will generate future revenues, and although this is not yet reflected in the result, we feel that the period has been commercially successful.

In the third quarter report, we described a restructuring plan for our consultancy organization for customer specific solutions in Denmark. Since it was neither strategically or financially attractive to run the area, we decided to sell the area during the fourth quarter. In order to create as good a comparison as possible, we have removed the business area from the operating result in this re- port, for both current and earlier figures. The area is recognized on the line "Earnings attributale to discontinued business".

After a surprisingly rapid and successful start to our focus in the area of Life Sciences in the US, the final part of the year unfortunately did not live up to our high expectations. We continue to create interest in our offering to the market, building up a growing list of potential customers but we have not yet seen any results in terms of new deals. We are confident that we have a product offering that gives us long-term potential but must realize that our expectations on how fast it will give positive results, probably have been somewhat too optimistic. In connection with this report, we therefore choose to adjust the debt and related goodwill we have in the balance sheet, intended for the additional purchase price to the former owners of the acquired GxP Ltd.

After the period, we have won a large contract with the City of Stockholm. The procurement that Stockholm conducted is one of the most ambitious ever regarding requirements and evaluation model. The deal demonstrates our position as the leading supplier to the public sector and we once again proves that we have a stronger product offering than our competitors, in the evaluation we received a score of 89% regarding usability, the closest competitor received 71%. The deal has a large business value over many years to come and we know from experience that our customers often is expanding their use of our products over time.

The field of digital preservation, with our product Long-Term Archive, shows a very positive trend right now. Although the market for government agencies are still pending, the market for municipalities has really taken off. This year we have succeeded in positioning Formpipe as the leading provider in the field and is also the company who won the most procurements. Many of the deals regarding digital preservation are procured as cloud service, which means that most of the revenues are linked to the level of usage and thereby gradually increasing and recurring. The trend favours us as a supplier, we know we are good at long-term customer relationships, but it also means that revenue flows are coming in later compared to traditional software sales.

Other highlights are the strong cash flow and the increased share of recurring revenue. Net debt has come down below SEK 80 million, and we believe that our debt is now at a level where we can use our positive cash flow to a combination of reinvestment in the business, repayments, acquisitions and dividends to our shareholders. The Board will therefore propose to the Annual General Meeting a dividend of SEK 0.10 per share.

SIGNIFICANT EVENTS DURING THE PERIOD OCTOBER – DECEMBER 2015

ORDER FROM A FINNISH COMPANY

Formpipe receives an order for Lasernet through their partner Tabellae regarding a Finnish customer. The total value of the order amounts to approximately SEK 1.5 million over a four year period.

ORDER FROM A SWEDISH MUNICIPALITY

Formpipe receives an order regarding an add-on product for digital meeting management from a larger Swedish municipality. The total order value amounts to SEK 1 million.

ORDER FROM A SWEDISH AUTHORITY

Formpipe receives a supplementary order on the ECM product Platina from a larger Swedish authority. The total order value amounts to SEK 2.3 million.

FORMPIPE SELLS CONSULTING BUSINESS

Formpipe signs agreement with KMD A/S on the sale of its consulting business for customer-specific solutions for Danish authorities. Formpipe thereby follows its strategy to streamline its business to a product company, with consulting and delivery capacity specifically related to the company's proprietary software.

ORDER FROM A DANISH COMPANY

Formpipe receives an order for Lasernet through their partner Tabellae regarding a Danish customer. The order value amounts to SEK 1.2 million.

ORDER FROM A SWEDISH REGION

Formpipe receives a supplementary order on the ECM product Platina from a Swedish Region. The total order value amounts to SEK 1.7 million.

SIGNIFICANT EVENTS AFTER THE PERIOD OCTOBER – DECEMBER 2015

FORMPIPE AND THE CITY OF STOCKHOLM SIGNS AGREEMENT

The business value amounts to approximately 50 million over a five year period, of which approximately SEK 25 million consists of systems revenue. After the initial period of the contract the City of Stockholm have the option to further extend the contract for 15 years.

CONTRACT AWARD DECISION REGARDING E-ARCHIVE

Three Swedish municipalities announces, through a contract award decision, that they intend to sign an agreement with Formpipe regarding the e-archiving product Long-Term Archive. The order value is estimated to SEK 20 million over an eight-year period.

Another supplier then applied for a review procedure of the procurement and the standstill period will therefore be extended until the administrative court has ruled on the case.

MARKET

Formpipe focuses its offerings on the public sector in Sweden and Denmark, in the international market on the Life Sciences industry and Legal sector and on industry independent offerings in respect of input/output management. According to the Radar Group, ECM continues to be a high priority investment area for companies and organizations.

Greater regulatory requirements and effective information management as a means of competition are important driving forces that have a tendency to be continually strengthened in connection with the increased amount of information.

PUBLIC SECTOR

According to analysts at Radar Group, ECM continues to be a high-priority investment area for the public sector. According to Radar, the ECM market for the public sector in Sweden will see growth of 5.1 (3.0) per cent, with an equivalent figure for Denmark of 4.3 (2.8) per cent.

The ECM market for public sector is less sensitive to market fluctuations than other sectors since they have a continuous need to invest in effective e-government solutions. Shrinking younger age groups must support a growing senior age group, while rising living standards are still expected. Public administration is facing major cost driving challenges and changes in fields such as digitisation and streamlining of operations, accessibility and service via the web and reduced costs for production of standardised IT. Both Formpipe and external analysts estimate that the need for efficient administration will lead to continued investments by the public sector in existing or new ECM systems. The number of public agencies that have a budget for ECM will also increase from year to year. The trend points to reducing operational costs through initiatives like outsourcing, so that resources are freed up for e-administration development. As part of this trend, investments are increasingly being financed through operating budgets. ECM solutions have evolved from being an IT issue to becoming a strategic business issue.

CHALLENGES/DRIVING FORCES IN THE PUBLIC SECTOR

Public administrations in Europe are facing the challenge of improving efficiency, productivity and the quality of their services. All these challenges must though be met with unchanged or even reduced budgets. Information and communication technology helps the public sector to handle challenges such as:

  • Ever increasing squeeze on financial conditions.
  • Increased demands in regard to transparency and improved service levels from citizens and companies.
  • A demographic reality that means that in future we must do more with fewer resources.

LIFE SCIENCE

Formpipe currently has customers in a number of European countries, as well as in the USA, regarding products and services for quality management and regulatory compliance. Like the public sector, the Life Sciences Industry has strict regulatory requirements. The market is strictly regulated by the national regulations of the market that the product or service is to be submitted to (in the US the regulator is the Food and Drug Administration (FDA), in the European Union it is the EMEA, etc).

It is estimated that the market for ECM products for the Life Sciences industry will grow strongly among mediumsized enterprises (200-1,000 users), as these are starting to use the same efficiency-enhancing tools as the major, traditional pharmaceutical companies. The major companies (more than 1,000 users) are seeing a trend towards replacing several different local systems with integrated turnkey solutions which provide a better overview and reduce administration and maintenance costs. It is thought that the market for EQMS products for Life Sciences companies' subcontractors will also grow, as they need to comply with the industry's regulations on account of the fact that they are increasingly playing a key role in the delivery and supply chain.

INPUT/OUTPUT MANAGEMENT

Formpipe's offering regarding input and output management, Lasernet, is essentially linked to the ERP market. The software is used for designing, converting and distributing business documents with data retrieved directly from any ERP system and it has more than 2,000 customers within a variety of industries all over the world.

Formpipe focuses on further reinforcing its offering for customers implementing Microsoft Dynamics, currently one of the fastest-growing ERP systems on the market. Formpipe has a well-developed partnership with a number of key partners in countries such as the Netherlands, Germany, Denmark and Sweden, and as a result it is able to benefit from the major sales successes for Microsoft Dynamics.

THE FUTURE

Formpipe is a leading supplier of ECM solutions in Sweden and Denmark. The board considers that the company is well-positioned to be able to develop and strengthen its leading position while retaining good profitability levels. The company sees good opportunities to continue to utilize its experience from its successes within the public sector in Sweden and Denmark, which from an international perspective are considered models for efficient public administration, in order to target new markets and customer segments. With well-invested products, solid experience of the public sector and facilities for continued product development, the company sees opportunities to focus on the demand at EU level which with increased regulatory requirements can be expected to increase its investments in the coming years. In addition to the Swedish public sector, Formpipe Software also focuses on the life science sector, which like the public sector is a segment that is strictly regulated by regulatory requirements. The Company has developed a competitive offering to this sector. The life science market is faced with the same regulatory requirements regardless of geographical location, which creates a very large international market. The company's strategy with focus on the public sector and Life Science creates good opportunities to be able to efficiently develop market-leading offerings and need sector-specific requirements.

The board believes that Formpipe, which is one of the largest European-based ECM suppliers, is well-positioned with a stabile customer base, a high share of recurring revenue and a focus on customer segments with a high need for ECM solutions. At the same time, the board considers that the ECM market is a sector undergoing consolidation and views acquisitions as a good complement to organic growth.

FINANCIAL INFORMATION

Revenues and costs for the outcome and comparison figures has been adjusted to reflect the remaining operations after the sale of the business area Customer Specific Solutions in Denmark during the fourth quarter.

REVENUE

OCTOBER – DECEMBER 2015

Net sales for the period totaled SEK 93.1 million (86.9 million), which corresponds to an increase of 7 %. System revenue decreased by 2 % from the previous year and totaled SEK 63.6 million (64.8 million). Total recurring revenue for the period increased by 13 % from the previous year and totaled SEK 43.6 million (38.7 million), which is equivalent to 47 % of net sales. Net sales from discontinued operations amounted to SEK 2.2 million (10.5 million). Exchange rate effects have affected net sales positively by SEK 1.7 million in comparison with the previous year.

JANUARY – DECEMBER 2015

Net sales for the period totaled SEK 349.3 million (307.0 million), which corresponds to an increase of 14 %. System revenue increased by 10 % from the previous year and totaled SEK 236.0 million (215.7 million). Total recurring revenue for the period increased by 10 % from the previous year and totaled SEK 168.4 million (152.8 million), which is equivalent to 48 % of net sales. Net sales from discontinued operations amounted to SEK 24.0 million (35.1 million). Exchange rate effects have affected net sales positively by SEK 7.2 million in comparison with the previous year.

Recurring revenue rolling 12-month, SEKm

COSTS

OCTOBER – DECEMBER 2015

The operating costs for the period increased by 13 % and totaled SEK 84.7 million (75.2 million). Personnel costs increased by 0 % and totaled SEK 51.6 million (51.5 million). Selling expenses totaled SEK 14.0 million (5.1 million). Other costs totaled SEK 17.8 million (18.0 million). Operating costs from discontinued operations amounted to SEK 2.2 million (5.3 million). During the period a write-down of the liability for additional purchase price from the acquisition of GxP Ltd. has been made by 1.5 million GBP (SEK 19.3 million). Related goodwill from the acquisition has also been written down by a corresponding amount giving a net effect of non-recurring items totaled to zero.

JANUARY – DECEMBER 2015

The operating costs for the period increased by 15 % and totaled SEK 327.5 million (285.4 million). Personnel costs increased by 11 % and totaled SEK 202.2 million (181.9 million). Selling expenses totaled SEK 48.4 million (33.4 million). Other costs totaled SEK 70.0 million (63.8 million). Operating costs from discontinued operations amounted to SEK 15.4 million (22.4 million). During the period a write-down of the liability for additional purchase price from the acquisition of GxP Ltd. has been made by 1.5 million GBP (SEK 19.3 million). Related goodwill from the acquisition has also been written down by a corresponding amount giving a net effect of non-recurring items totaled to zero. Non-recurring costs are charging the period with SEK -1.9 million (-1.2 million) and refers to the restructuring reserve made in the third quarter.

EARNINGS

OCTOBER – DECEMBER 2015

Operating profit before depreciation and amortization and one-off costs (EBITDA) totaled SEK 21.7 million (23.7 million) with an EBITDA margin of 23.3 % (27.3 %). Operating profit (EBIT) totaled SEK 8.4 million (11.6 million) with an operating margin of 9.0 % (13.4 %). Net profit totaled SEK 4.3 million (6.3 million). Net profit from discontinued operations amounted to -0.0 million (3.9 million). Realization gains from discontinued business totaled SEK 3.9 million (- million) which gives a totaled net profit for the period of SEK 8.2 million (10.2 million). Exchange rate effects have affected EBITDA positively by SEK 0.1 million in comparison with the previous year.

JANUARY – DECEMBER 2015

Operating profit before depreciation and amortization and one-off costs (EBITDA) totaled SEK 73.7 million (65.1 million) with an EBITDA margin of 21.1 % (21.2 %). Operating profit (EBIT) totaled SEK 19.8 million (20.4 million) with an operating margin of 5.7 % (6.6 %). Operating profit includes non-recurring items amounting to SEK -1.9 million (-1.2 million). Net profit totaled SEK 9.4 million (8.2 million). Net profit from discontinued operations amounted to SEK 4.8 million (9.8 million). Realization gains from discontinued business totaled SEK 3.9 million (- million) which gives a totaled net profit for the

year of SEK 18.2 million (18.0 million). Exchange rate effects have affected EBITDA positively by SEK 0.4 million in comparison with the previous year.

Sales and EBITDA margin, SEKm

FINANCIAL POSITION AND LIQUIDITY

CASH EQUIVALENTS

Cash and cash equivalents at the end of the period amounted to SEK 37.7 million (26.0 million). The company had interest-bearing debt at the end of the period totaling SEK 116.8 million (142.9) million. The company's net interest-bearing debt thereby totaled SEK 79.1 million (116.9 million).

The company has bank overdraft facilities for a total of SEK 10.0 million and for DKK 17.0 million, which were not utilized at the end of the period (- million).

I N TANGIBLE ASSETS

During the fourth quarter Formpipe has performed impairment tests on the group's cash generating units based on Formpipe's long-term business plans. Except for the write-down of goodwill attributable to GxP Ltd of SEK 19.3 million (which is offset by the write-down of the liability for additional purchase price) no other cash generating unit had a booked value exceeding the recoverable amount. No additional write-down of goodwill has been recognized in 2015.

DEFERRED TAX ASSET

By the end of the period the company's deferred tax assets attributable to accumulated losses amounted to SEK 23.7 million (SEK 25.3 million).

EQUITY

Equity at the end of the period amounted to SEK 315.1 million (307.6 million), which was equivalent to SEK 6.28 (6.13) per outstanding share at the end of the period. The strengthening of the Swedish krona has reduced the value of the group's net assets in foreign currencies by SEK - 10.2 million (17.4 million) from the end of the year.

EQUITY RATIO

The equity ratio at the end of the period was 51 % (47 %).

CASH FLOW

CASH FLOW FROM OPERATING ACTIVITIES

Cash flow from operating activities for the period January - December totaled SEK 73.6 million (76.8 million), of which divested business operations SEK 4.8 million (SEK 9.8 million).

INVESTMENTS AND ACQU ISITIONS

Total investments for the period January - December amounted to SEK 47.2 million (50.2 million), of which investments affecting cash flow totaled SEK 43.8 million (45.5 million).

Investments in intangible assets totaled SEK 41.8 million (40.2 million) and refer to capitalized product development costs.

Investments in tangible assets totaled SEK 2.0 million (2.7 million).

During the period received payment from acquisition/divesture of business activities amounted to SEK 3.9 million (-7.3 million).

FINANCING

During the period January – September the company has amortized SEK 22.3 million (26.5 million) and the interest-bearing debt amounted to SEK 116.8 million (142.9 million) at the end of the period.

PROPOSED APPROPRIATION OF PROFITS

DIVIDEND

The Board proposes that the AGM to be held on 21 April 2016 adopts a resolution to pay a dividend of SEK 0.10 (-) per share, which means a total dividend of SEK 5.0 million (- million).

As the basis for its proposal for the appropriation of profits, the board, in accordance with chapter 17 § 3 subsec 2- 3 of the Swedish Companies Act, has assessed the parent company's and the group's need to strengthen the balance sheet, its liquidity and financial position otherwise, and the ability to meet its obligations in the long-term.

OTHER

EMPLOYEES

The number of employees at the end of the reporting period totaled 239 persons (245 persons).

RISKS AND UNCERTAINTY FACTORS

The significant risk and uncertainty factors for the group and the parent company, which include business and financial risks, are described in the annual report for the

last financial year. During the period there have been no changes in the risk and uncertainty factors for the group and the parent company.

TRANSACTIONS WITH RELATED PARTIES

No transactions with related parties have occurred during the period

ACCOUNTING POLICIES

The group's financial reports are prepared in accordance with International Financial Reporting Standards (IFRS) in the way in which they have been adopted by the European Union, the Swedish Annual Accounts Act, RFR 1 Additional Accounting Regulations for Groups issued by the Swedish Financial Reporting Board and in accordance with the regulations that the Stockholm Stock Exchange stipulates for companies listed on Nasdaq Stockholm. Preparing financial reports in accordance with IFRS requires that the company management makes accounting evaluations and estimates and makes assumptions that affect the application of the accounting policies and the reported values of assets, liabilities, income and costs. The actual result can differ from these estimates and evaluations. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The most important accounting policies according to IFRS, which constitute the accounting standard for the preparation of this interim report, are stated in the company's most recently published annual report. During the fourth quarter of 2015 the business area Customer Specific Solutions has been sold. The business area, which earlier was included in Formpipe Groups segment Denmark, is therefore treated as a discontinued operation according to IFRS 5 and is accounted and disclosed in accordance with this accounting standard.

The financial reports of the parent company have been pre-pared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. The same accounting policies and methods of calculation have been applied in the interim report and in the most recent annual report.

ABOUT FORMPIPE

Formpipe Software AB (publ) is a software company in the field of ECM (Enterprise Content Management). We develop and deliver ECM products for structuring information in larger companies, the public sector and organizations. Our software helps organizations to capture and place information in context. Reduced costs, minimized risk exposure and structured information are the benefits from using our ECM products.

Formpipe was founded in 2004 and has offices in Sweden, Denmark, United Kingdom, the Netherlands and USA. The Formpipe share is listed on Nasdaq Stockholm.

CALENDAR FOR FINANCIAL INFORMATION

April 19, 2016 Interim report Jan-Mar
April 21, 2016 Annual General Meeting
July 12, 2016 Interim report Jan-Jun
October 25, 2016 Interim report Jan-Sep

This interim report has not been subject to review by the company's auditors.

FINANCIAL INFORMATION

Can be ordered from the below contact details. All financial information is published on www.formpipe.com immediately after being made public.

CONTACT INFORMATION

Christian Sundin, Managing Director Telephone: +46 70 567 73 85, +46 8 555 290 84 E-mail: [email protected]

Stockholm October 27, 2015 Formpipe Software AB The Board of Directors and the Managing Director

Formpipe Software AB (publ) Swedish company reg. no.: 556668-6605 Sveavägen 168 | Box 231 31 | 104 35 Stockholm T: +46 8 555 290 60 | F: +46 8 555 290 99 [email protected] | www.formpipe.se

CONSOLIDATED INCOME STATEMENT SUMMARY

Oct-Dec Jan-Dec
(SEK 000) 2015 2014 2015 2014
Net Sales 93 123 86 857 349 292 306 952
Sales expenses -14 033 -5 083 -48 406 -33 361
Other costs -17 757 -18 014 -70 044 -63 813
Personell costs -51 607 -51 479 -202 173 -181 880
Capitalized work for own account 11 957 11 410 45 002 37 154
Operating profit/loss before depreciation/amortization
and non-comparative items (EBITDA)
21 683 23 691 73 670 65 052
Acquisition-related costs - - -1 947 -1 167
Depreciation/amortization -13 308 -12 066 -51 880 -43 502
Operating profit/loss (EBIT) 8 375 11 625 19 843 20 383
Financial income and expenses -1 023 -1 328 -5 212 -7 222
Exchange rate differences 412 -1 085 -899 -1 610
Tax -3 479 -2 949 -4 296 -3 333
Net profit for the period from remaining business 4 284 6 263 9 436 8 218
Profit/loss attributale to discontinued business -32 3 903 4 838 9 824
Realization gains from discontinued business 3 905 3 905
Net profit for the period 8 157 10 166 18 179 18 042
Of which the following relates to:
Parent company shareholders 7 679 10 525 17 490 18 140
Shareholding with no controlling influence 478 -359 689 -98
Other comprehensive income
Translation differences -8 373 9 604 -10 216 17 371
Other comprehensive income for the period, net after tax -8 373 9 604 -10 216 17 371
Total comprehensive income for the period -215 19 770 7 964 35 413
Of which the following relates to:
Parent company shareholders
Shareholding with no controlling influence
-694
478
20 129
-359
7 275
689
35 511
-98
EBITDA margin, % 23,3% 27,3% 21,1% 21,2%
EBIT margin, % 9,0% 13,4% 5,7% 6,6%
Profit margin, % 8,8% 11,7% 5,2% 5,9%
Earnings per share attributable to the parent company's shareholders dur
ing
the period (SEK per share)
- before dilution 0,15 0,21 0,35 0,37
- after dilution 0,15 0,21 0,35 0,37
- before dilution, remaining business 0,08 0,13 0,17 0,17
- after dilution, remaining business 0,08 0,13 0,17 0,17
- before dilution, discontinued business 0,08 0,08 0,17 0,20
- after dilution, discontinued business 0,08 0,08 0,17 0,20
Average no. of shares before dilution, in 000
Average no. of shares after dilution, in 000
50 143
50 637
50 143
50 143
50 143
50 592
49 539
49 539

CONSOLIDATED BALANCE SHEET SUMMARY

Dec 31
(SEK 000) 2015 2014
Intangible assets 473 393 510 203
Tangible assets 3 898 4 217
Financial assets 1 425 1 432
Deferred tax asset 23 680 25 292
Current assets (excl. cash equivalents) 77 723 91 334
Cash equivalents 37 670 26 035
TOTAL ASSETS 617 789 658 513
Equity 315 108 307 588
Shareholding with no controlling influence 3 378 2 689
Long-term liabilities 132 260 162 515
Current liabilities 167 043 185 721
TOTAL EQUITY AND LIABILITIES 617 789 658 513
Net interest-bearing debt (-) / cash (+) -79 081 -116 892

CHANGES IN CONSOLIDATED EQUITY

Equity attributable to the parent company's shareholders Share
Other Profit/loss holdings with
Share contributed Translation brought no controlling
(SEK 000) capital capital reserves forward Total influence Total
Balance at January 1, 2014 4 893 178 568 -2 701 83 300 264 060 2 787 266 847
Comprahensive income
Net profit for the period - - - 18 140 18 140 -98 18 042
Other comprahensive income items - - 17 371 - 17 371 - 17 371
Total comprahensive income - - 17 371 18 140 35 511 -98 35 413
Transaction with owners
Share issue 121 7 446 - - 7 567 - 7 567
Employee warrant schemes - 450 - - 450 - 450
Total transaction with owners 121 7 896 - - 8 017 - 8 017
Balance at December 31, 2014 5 014 186 464 14 670 101 440 307 588 2 689 310 277
Balance at January 1, 2015 5 014 186 464 14 670 101 440 307 588 2 689 310 277
Comprahensive income
Net profit for the period - - - 17 490 17 490 689 18 179
Other comprahensive income items - - -10 216 - -10 216 - -10 216
Total comprahensive income - - -10 216 17 490 7 275 689 7 963
Transaction with owners
Employee warrant schemes - 245 - - 245 - 245
Total transaction with owners - 245 - - 245 - 245
Balance at December 31, 2015 5 014 186 709 4 454 118 930 315 108 3 378 318 486

CASH FLOW STATEMENT SUMMARY

Oct-Dec Jan-Dec
(SEK 000) 2015 2014 2015 2014
Cash flow from operating activities
before working capital changes 17 027 29 216 61 328 56 032
Cash flow from working capital changes 17 212 12 115 7 440 10 957
Cash flow from remaining operating activities 34 239 41 332 68 768 66 989
Cash flow from discontinued business -32 3 903 4 838 9 824
Cash flow from operating activities 34 207 45 235 73 606 76 813
Cash flow from investing activities -7 920 -15 173 -39 881 -45 505
Of which acquisition/divesture of business activities 3 905 - 3 905 -7 345
Cash flow from financing activities -4 102 -11 179 -22 033 -26 097
Cash flow for the period 22 184 18 883 11 692 5 211
Change in cash and cash equivalent
Cash and cash equivalent at the beginning of the period 15 619 6 846 26 035 20 269
Translation differences -134 305 -57 555
Cash flow for the period 22 184 18 883 11 692 5 211
Cash and cash equivalent at the end of the period 37 670 26 035 37 670 26 035

8 QUARTERS IN SUMMARY*

(SEK 000) 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4
Support and maintenance 34 352 35 944 36 796 36 219 39 511 38 058 39 254 40 893
Licenses 13 649 17 178 12 977 28 600 17 617 20 884 17 025 22 708
System revenue 48 002 53 122 49 773 64 820 57 128 58 942 56 279 63 602
whereof recurring revenue 36 554 38 290 39 249 38 713 41 899 40 826 42 076 43 603
Deliveries 22 913 23 451 23 255 22 037 27 163 29 388 27 235 29 522
Net sales 70 914 76 573 73 028 86 857 84 291 88 329 83 514 93 123
Sales expenses -7 900 -9 544 -10 964 -5 083 -10 062 -11 925 -12 381 -14 033
Other costs -15 325 -14 310 -16 170 -18 014 -16 645 -18 746 -18 912 -17 757
Personnel costs -43 484 -46 620 -40 450 -51 479 -49 722 -52 736 -46 077 -51 607
Capitalized development costs 8 187 8 674 8 882 11 410 10 696 10 901 11 448 11 957
Total operating expenses -58 521 -61 800 -58 702 -63 165 -65 733 -72 506 -65 922 -71 440
EBITDA 12 393 14 773 14 326 23 691 18 558 15 823 17 592 21 683
% 17,5% 19,3% 19,6% 27,3% 22,0% 17,9% 21,1% 23,3%
Items affecting comparability - -500 -667 - - - -1 947 -
Depreciation/amortization -9 851 -10 115 -11 470 -12 066 -12 708 -12 834 -13 030 -13 308
EBIT 2 542 4 159 2 189 11 625 5 850 2 989 2 614 8 375
% 3,6% 5,4% 3,0% 13,4% 6,9% 3,4% 3,1% 9,0%
Discontinued business: 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%
Net sales 8 091 7 673 8 854 10 456 9 692 7 493 4 627 2 165
EBITDA 2 778 1 853 3 133 5 204 4 102 2 844 1 683 -43

* Adjusted to reflect the remaining business after disposal of customer specific consulting services in Denmark in 2015 Q4.

SALES ANALYSIS BY QUARTER

SEGMENT SUMMARY

From January 1, 2015, the Life Science business area is reported as a stand-alone segment. This business was previously a part of the segment Sverige. The acquired entity GXP Ltd is included in this segment as per the acqisition date July 1, 2014.

In order to visulize the effects from the disposal of the customer specific consulting services in Denmark December 11, 2015, the direct revenues and costs attributable to this business have been recorded seperatly. The business was previously a part of the segment Denmark.

Jan-Dec 2015
Life Remaining Discontinued
(SEK 000) Sweden Denmark Science Eliminations business business Group
Sales, external 138 419 195 040 15 833 - 349 292 23 942 373 234
Sales, internal 1 162 6 920 700 -8 782 - -
Total sales 139 581 201 960 16 533 -8 782 349 292 23 942 373 234
Costs, external -90 365 -162 653 -22 604 -275 622 -15 371 -290 993
Costs, internal -5 831 -2 251 -700 8 782 - - -
EBITDA 43 385 37 056 -6 771 - 73 670 8 571 82 241
% 31,1% 18,3% -41,0% 0,0% 21,1% 35,8% 22,0%
Jan-Dec 2014
Life Remaining Discontinued
(SEK 000) Sweden Denmark Science Eliminations business business Group
Sales, external 122 995 172 254 11 703 - 306 952 35 493 342 445
Sales, internal 392 3 308 - -3 700 - -
Total sales 123 387 175 562 11 703 -3 700 306 952 35 493 342 445
Costs, external -81 404 -143 403 -17 093 -241 900 -22 394 -264 294
Costs, internal -3 308 -392 - 3 700 - - -
EBITDA 38 675 31 767 -5 390 - 65 052 13 099 78 151
% 31,3% 18,1% -46,1% 0,0% 21,2% 36,9% 22,8%

NUMBER OF SHARES

2011-01-01 2012-01-01 2013-01-01 2014-01-01 2015-01-01
2011-12-31 2012-12-31 2013-12-31 2014-12-31 2015-12-31
Number of outstanding shares at the beginning
of the period
12 004 504 12 233 647 48 934 588 48 934 588 50 143 402
Share issue 229 143 36 700 941 - - -
Non-cash issue - - - 1 208 814 -
Number of outstanding shares at the end of
the period
12 233 647 48 934 588 48 934 588 50 143 402 50 143 402

KEY RATIOS FOR THE GROUP

Jan-Dec
2015 2014
Net sales, SEK 000 349 292 306 952
EBITDA, SEK 000 73 670 65 052
EBIT, SEK 000 19 843 20 383
Net profit for the period, SEK 000 18 179 18 042
EBITDA margin, % 21,1% 21,2%
EBIT margin, % 5,7% 6,6%
Profit margin, % 5,2% 5,9%
Return on equity, %* 5,6% 6,3%
Return on working capital, %* 12,7% 4,9%
Equity ratio, % 51% 47%
Equity per outstanding share at the end of the period, SEK 6,28 6,13
Earnings per share - before dilution, SEK 0,35 0,37
Earnings per share - after dilution, SEK 0,35 0,37
Share price at the end of the period, SEK 8,50 6,10

* Ratios including P&L measures are based on the most recent 12-month period

PARENT COMPANY INCOME STATEMENT SUMMARY

Oct-Dec Jan-Dec
(SEK 000) 2015 2014 2015 2014
Net sales 15 146 27 392 40 701 35 358
Operating expenses
Sales expenses -549 176 -2 308 -1 753
Other costs -3 550 -427 -11 508 -9 164
Personnel costs -10 130 -11 279 -35 684 -34 105
Depreciation/amortization -455 -459 -1 822 -1 701
Total operating expenses -14 685 -11 989 -51 323 -46 723
Operating profit/loss 461 15 403 -10 622 -11 366
Result from participations in group companies 21 850 18 155 21 850 18 155
Other financial items 909 -818 774 -1 829
Tax -2 805 -1 458 -2 805 -1 458
Net profit for the period 20 415 31 282 9 197 3 502

PARENT COMPANY BALANCE SHEET SUMMARY

Dec 31
(SEK 000) 2015 2014
Intangible assets 3 432 4 466
Tangible assets 1 022 1 279
Financial assets 426 923 450 278
Deferred tax asset 3 635 6 440
Current assets (excl. cash equivalents) 34 125 23 461
Cash and bank balances 41 165 21 232
TOTAL ASSETS 510 303 507 157
Restricted equity 22 705 22 705
Non-restricted equity 213 507 204 065
Total equity 236 212 226 770
Long-term liabilities 107 036 139 196
Current liabilities 167 054 141 191
TOTAL EQUITY AND LIABILITIES 510 303 507 157

DEFINITIONS

SYSTEM REVENUE

The total of license revenue and revenue from support and maintenance contracts.

RECURRING REVENUE

Revenue of an annually recurring nature such as support and maintenance revenue and revenue from rental license agreement.

EBITDA

Earnings before depreciation, amortization, acquisition-related costs and other items of a one-off nature.

EBIT

Operating profit/loss

FREE CASH FLOW

Cash flow from operating activities minus cash flow from investing activities excluding acquisitions.

EQUITY PER SHARE

Equity at the end of the period divided by the number of shares at the end of the period.

RETURN ON EQUITY

Profit/loss after tax as a percentage of average equity

RETURN ON WORKING CA PITAL

Operating profit/loss as a percentage of average working capital (balance sheet total less non-interest bearing liabilities and cash and bank balances).

OPERATING MAR GIN BEFORE DEPRECIATION AND AMORTIZATION (EBITDA MARGIN ) Earnings before depreciation, amortization, acquisition-related costs and other items of a one-off nature as a percentage of net sales.

OPERATING MARGIN (EBIT MARGIN ) Operating profit/loss as a percentage of net sales.

PROFIT MARGIN

Net profit/loss after tax as a percentage of sales at the end of the period.

EQUITY RATIO Equity as a percentage of the balance sheet total.

EARNINGS PER SHARE - BEFORE DILUTION Net profit/loss after tax divided by the average number of shares during the period.

EARNINGS PER SHARE - AFTER DILUTION

Net profit/loss after tax adjusted for dilution effects divided by the average number of shares after dilution during the period.

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