Itera

Earnings Release • Apr 28, 2015

Revenue growth and solid order intake

Revenue growth and solid order intake

Oslo, 28th April 2015: The revenue generated by Itera's

consulting services continued to grow in the first quarter

of 2015, while the IT hosting activities experienced a lower

level of activity, as was expected. The planned actions to

improve the profitability of Itera's IT hosting activities

in Norway were carried out in the first quarter of 2015, and

have had the desired effect on earnings. As previously

announced, it has been decided that Itera's IT hosting

activities in Sweden are to be sold, and the sales process

is underway.

The Group reports operating revenue of NOK 113.9 million

(112.4) for the first quarter of 2015, representing growth

of 1%.

The Group's operating costs totalled NOK 111.1 million

(110.0) in the first quarter of 2015, representing an

increase of 1%.

The operating result before depreciation (EBITDA) for the

first quarter of 2015 was a profit of NOK 7.7 million (a

profit of NOK 7.8 million in Q1 2014)

The operating result before non-recurring items (EBIT) for

the first quarter of 2015 was a profit of NOK 2.8 million (a

profit of NOK 2.4 million in Q1 2014)

As previously communicated, non-recurring costs totalling

NOK 2.0 million were recognised in the first quarter of 2015

due to an unprofitable department in Itera's IT hosting

activities in Norway being closed down.

Itera's cash flow from operations in the first quarter of

2015 was negative by NOK 8.1 million (negative by NOK 10.7

million in Q1 2014). The negative cash flow from operations

in the first quarter of 2015 can be attributed to seasonal

variations.

The revenue from Itera's 30 largest customers grew by 9% in

the first quarter of 2015 and accounted for 66% of the

Group's operating revenue, up from 64% in the first quarter

of 2014.

- The Group experienced good order inflows in the first

quarter. Delivery agreements with a combined value of NOK

170 million were signed with customers such as PRA Group,

Hjort, Simonsen Vogt Wiig, Selvaag, the Norwegian Defence

Estates Agency, the Municipality of Ski, OBOS and Østfold

Energi. Most of the agreements constitute extensions or

enlargements of existing relationships, which confirms that

the customers find it value adding to cooperate with Itera,

says Arne Mjøs, CEO of Itera.

The Group's headcount at the end of the first quarter of

2015 was 437 as compared to 464 at the end of March 2014.

This represents a decrease of approximately 6%. Some of the

reduction is due to an unprofitable department in Itera's IT

hosting activities in Norway being closed down, while the

rest is a result of natural departures that have not been

replaced with new resources.

For more information:

Arne Mjøs, CEO

+47 905 23 172

arne.mjos@itera.no