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Itera Earnings Release 2014

Apr 29, 2014

3639_rns_2014-04-29_f12cfcc2-e4c4-4d72-a0ee-f33c79cb216a.html

Earnings Release

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Itera establishes new development center in the EU

Itera establishes new development center in the EU

Oslo, 29 April 2014:

Revenue and profit are affected by the slow start of

new projects due to the geopolitical tension in

Ukraine in the first quarter. This has resulted in a

lower utilization level than expected. Revenues in

the first quarter are unchanged from the

corresponding quarter in 2013, while there is a

slight increase in both EBITDA and EBIT.

Operating revenue amounted to NOK 112.4 million

(113.6) in the first quarter. This is a decrease of -

1 percent compared to the same period last year.

The operating expenses in the first quarter amounted

to NOK 110.0 million (111.4). This is a decrease of -

1 percent.

Operating profit before depreciation (EBITDA)

amounted to NOK 7.8 million (7.4) i the first

quarter, corresponding to a margin of 7.0 (6.5)

percent, respectively.

Depreciation amounted to NOK 5.4 million (5.2) in the

first quarter. The depriciaton is mainly related to

the Group's hosting operation.

Operating profit (EBIT) amounted to NOK 2.4 (2.2)

million in first quarter, which corresponds to a

margin of 2.2 (1.9) percent.

The cash flow from operations amounted to NOK -10.7

million (4.8) in the first quarter. The increase in

customer receivables of NOK 11.7 million is due to

some large invoices which were paid after due date.

The 10 largest customers accounted for 44 percent of

the Group's revenue in the first quarter, up from 35

percent in the corresponding quarter last year.

- Itera monitors the development in Ukraine very

closely, and expect that the establishment of a new

development center in the EU will lead to increased

activity and that the projects which have been

postponed in the first quarter commence, says Arne

Mjøs, CEO of Itera.

By the end of the quarter, the number of employees

was 464 compared to 432 in the corresponding quarter

last year. This represents an increase of 7 percent.

The nearshore ratio was 34 (24) percent by the end of

the first quarter.

Arne Mjøs, CEO

+47 905 23 172

[email protected]

Torunn Havre, CFO

+ 47 909 43 403

[email protected]

Ane Gjennestad, CCO

+47 90 55 60 77

[email protected]