Intoi owns, and drives development in, technology companies. In the first quarter, operating profit increased in the Group’s two largest holdings (which account for 89% of net sales) but decreased in the third and smallest holding. A stronger Swedish krona had a negative impact of SEK 5m on sales and SEK 2.7m on operating profit. Intoi’s financial position remains strong with an equity/assets ratio of 81% (79) and cash and cash equivalents of SEK 52m.
Through the realignment of IAR Systems, operating margin has strengthened to 11% (8) and profit has improved by 31%. Net sales rose steadily during the quarter and license sales reached a new record level in March. This has been achieved thanks to Intoi’s successful efforts to shift IAR Systems’ offering toward the most advanced embedded systems (32 bit architecture, primarily ARM) and a revised sales strategy. In April, a new technology was presented that will provide greater precision in energy-efficient programming of embedded systems.
Deltaco continued its stable development, increasing its sales by 8% and operating profit by 5% compared to the year-earlier quarter. As part of the strategy to widen Deltaco’s product offering and boost delivery capacity, we have increased inventories during the period.
In the first quarter Northern integrated its operations with those of Nocom Software. This process has demanded considerable time and resources during the quarter, but will expand Northern’s long-term sales reach. We have high hopes that this will lead to growth for the company.
Given the Group’s stable financial position and the strong market positions of our holdings, we previously set a target to increase our consolidated operating profit for 2010 over the level of 2008 (SEK 32.3m). In the first few months of the year we have taken decisive steps towards fulfilling this goal.
Intoi is a driver for development of technology companies. Our three holdings have innovative technology, large potential and scalable business models. To create value, we actively develop product and sales strategy and ensure effective corporate governance. We call it Propelling Technology!