Interim Report January - June 2002 (summary)

Nocom AB (publ) Interim Report January - June 2002 (summary) - Continued result improvement despite weak market The loss after financial items totaled SEK -51.2 (-92.0)million - Cash flow improved during the second quarter - Important deal with SEB concerning advanced search services for all websites run by the bank - Weak consulting market leads to goodwill write-down - Weak IT market trend demands operational The First Six Months of 2002 Nocom reports continued result improvement for the second quarter. Despite reduced sales, the Company reports a loss after financial items that has improved by more than 40 percent compared to the second quarter last year. The loss after financial items for the second quarter totaled SEK -33.3 (-58.7) million. The result improvement is primarily due to the changes made to operations during the fall of 2001 -through streamlining, cost-saving measures, and divestments. Cash flow from current operations also improved, and totaled SEK -0.2 (-17.7) million for the second quarter. Market development for the IT sector is, however, still negative, with weak demand, some over-establishment, and lower prices. In particular, demand for larger IT projects has lessened and there are no obvious signs of a turnaround. Uncertainty in the market is great and it is therefore difficult to judge when the turning point will come. The depressed market situation is expected to remain; not just for the rest of the year, but also for the greater part of 2003. Nocom has been active since 1985 and has a strength in the customer relations that have been built up over the years. These stable, long- term customer relations are important in times of stiff competition and reduced IT investments. It is mostly operations within integration products -supplying software and services such as support, maintenance, professional services, and training -that can benefit from this strong customer base even when sales fall.Hosting operations in the Nocom e-channel center and the consultant-intensive operations within integration solutions, on the other hand, have been hit harder by the hesitant IT market. Some Important Deals during the Quarter In April, a general agreement was signed with Bredbandsbolaget -B2 Bredband AB (publ)-concerning qualified consulting services within integration solutions. This agreement is an expansion of previous collaboration and encompasses "on call "consulting services within BPM (Business Process Management), system integration, and project management. Bredbandsbolaget has chosen TIBCO 's solution as its standard platform for all integration. TIBCO, which is one of the world 's leading software suppliers within advanced business integration, has been a close collaborative partner to Nocom since the fall of 2001. In June, a major contract was signed with SEB, concerning the delivery of Verity 's software for advanced search services for the bank 's Intranet and about 50 external websites. In addition to licenses, the deal includes support services. The contract covers the entire SEB group, which has 630 offices and about 20,000 employees in 16 countries. During the second quarter, two different systems were brought online for Stockholm County Council (Stockholms Läns Landsting, SLL), as a part of the contract signed in March concerning, among other items, the Internet portal Vårdguiden (The Healthcare Guide). The Future The persistent, weak IT market trend and doubts concerning a turnaround entail new conditions for the overall profitability goal being reached, in both the short-term and the long-term. As a result, during the third quarter the Company will intensify work to secure the long-term financial goals. This will be achieved through an adaptation of the Company's organization and focus to the prevailing market conditions. The long-term assessment of the market is characterized by uncertainty and the general revaluation of the sector. This can result in the need for additional financing. Uppsala, Sweden, Tuesday, August 27,2002 Stefan Skarin CEO Nocom AB This report is available in Swedish and English. The English version is virtually the same as the Swedish report. If deviations between the Swedish and the English version occur, the Swedish version should apply. Next Financial Report November 5, 2002 Interim Report Jan-Sep 2002 For further information, please contact Stefan Skarin CEO telephone +46 708 65 10 05 Stefan Ström CFO telephone +46 708 65 10 68 Nocom AB (publ) Corporate ID-no. 556400-7200 ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: The Full Report