Best quarterly profit of all time and growth in all markets

• Net sales of SEK 142.9m (129.9), of which SEK 48.2m (44.2) in the third quarter
• Operating profit of SEK 16.3m (9.7), of which SEK 7.1m (4.4) in the third quarter

Operating profit for the third quarter was charged with SEK 0.6m for the acquisition of Signum Systems Corp

• Operating margin of 11.4% (7.5) for the period and 14.7% (10.0) for the third quarter
• Earnings per share of SEK –2.66 (2.21) for the period and SEK 0.67 (0.77) for the third quarter

Earnings per share calculated on profit from continuing operations were SEK 1.48 (0.89) for the period and
SEK 0.67 (0.39) for the third quarter

• In local currency, net sales for the period rose by 22% in the USA, 15% in Europe and 29% in Asia

Key events during the quarter

• The Annual General Meeting on May 3, 2011, approved an incentive scheme through a directed issue of not more than 1,168 856 warrants. During the subscription period ending on July 7, 2011, the employees subscribed for 1,017,000 (87%) of the warrants.
• On September 12, 2011, IAR Systems acquired Signum with complementary technology for advanced embedded systems. The acquisition is expected to have a limited financial effect on IAR Systems during 2011 and to make a positive contribution to both sales and profit starting in 2012, partly through the sale of Signum’s products but also because this reinforcement of the offering is expected to boost sales of IAR Systems’ development tools. The change of ownership took place on October 3, 2011.
  
  The english Interim-report is a translation of the swedish original. In event of discrepancy between the English translation and the Swedish original,  the original Swedish version shall prevail.