Interim Report, January - June (Summary)
Interim Report, January - June (Summary) Nocom AB (publ) Continued positive earnings trend confirms turnaround · Profit after financial items totaled SEK 4.5 (-51.2) million, of which SEK 2.4 (-33.3) million from the second quarter · Profit after tax totaled SEK 2.9 (-51.4) million, of which SEK 1.6 (-33.6) million from the second quarter · Operating margin at 6 (-62) percent for the first half of the year · Earnings per share totaled SEK 0.10 (-1.82), of which SEK 0.05 (- 1.19) from the second quarter Positive cash flow from current operations Cash flow from current operations improved during the first half of the year and totaled SEK 10.0 (-8.8)million, excluding payments of SEK 6.0 million attributable to the action plan from the fall of 2002 Stable sales Sales totaled SEK 72.3 (83.2) million for first six months of the year, of which SEK 35.4 (42.5) million from the second quarter A Few Words from the CEO A continued positive earnings trend confirms the company's turnaround. It is satisfying to be able to report, for the third consecutive quarter, a positive operating profit before depreciation. Our sales are stable despite continued tough market conditions. Through lower costs and an efficient organization we have managed to minimize the effects related to the current economic climate from which many in our branch are suffering. During the second quarter we closed a number of major contracts in both Sweden and Norway. These deals, which are primarily within the integration business area, are extensions of existing contracts with customers of our support operations. The general trend is for our customers to mainly invest within areas that provide rapid cost savings. One example is host computer access, that is, access to a company's central systems, where we have witnessed increased interest in the new, cost-effective web and server-based solutions. Expanded product portfolio During the first half of the year we complemented our product portfolio within the fields of security, analysis, and development tools. The effect of these additions will be seen during the second half of the year as market activities are carried out, partners recruited, and employee skills developed. Security has been given increased priority in all organizations and companies that use IT in their operations, and covers everything from virus and hacking protection to monitoring how employees use the Internet. Increasingly more employees now work remotely and the security threats therefore increase in both number and complexity. The demands on companies' security work are intensified - and the costs increase. We are well positioned to meet the demand for professional security solutions, not least through our new collaborative partners Symantec, a world-leader in Internet security, and Icognito. During the second quarter we also increased the proportion of certified employees within the security business area, where demand on product knowledge is greatest. e-channel center and Travelutions developing well Nocom's hosting operations in the e-channel center have reached a stable and satisfactory result level. During the rest of the year we will increase investment in sales and market-oriented activities. Travelutions is developing well despite the weak travel market. The demand for services within revenue management, traffic planning, and IT strategy continues to be good and the earnings trend is positive. Scandinavian offering Our goal is to provide the same offering in the different Scandinavian countries. In part to become a more attractive distributor for our suppliers. In part to enable deeper product knowledge to the benefit of our partners and customers. In Norway and Finland we are complementing our product portfolio and recruiting in order to adapt the product offering and local knowledge. Even if the group's sales outside Sweden are limited, we see growth potential in Norway and Finland in both the short and long-term. The second half of 2003 We anticipate a continuation of the restraint seen in the market. Traditionally the third quarter is the weakest of the year. Despite this, Nocom's positive earnings trend during the first half of the year means that the prospects for the year as a whole are good. We will continue to focus on long-term profitability by developing our employees' skills, complementing our product portfolio, and expanding collaborations with partners, distributors, and suppliers. Stefan Skarin CEO ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/09/01/20030901BIT00480/wkr0001.pdf The full report