Continued solid growth in revenues and a marked increase in earnings
CEO, Michael Gaardboe:
"For Columbus IT the very positive development in H1 continued in Q3. Compared
to the same period last year, revenues increased by 15%, while EBITDA increased
by 53%, and we find the development very satisfactory. We maintain the
previously announced expec-tations for 2008 with total revenues in the level of
DKK 1,000M and an EBITDA of DKK 60-65M. But the financial turbulence and the
general uncertainty about the global economy have increased the risks for Q4”.
• Revenues for Q1-3/2008 totaled DKK 711.7M (DKK 617.7M in Q1-3/2007),
corresponding to an in-crease of 15%.
• Earnings before depreciation (EBITDA) for the period totaled DKK 34.6M (DKK
22.6M in Q1-3/2007) corresponding to an increase of 53% compared to Q1-3/2007.
The result is in line with the manage-ment's expectations.
• Revenues in the Nordic region amounted to DKK 261M in Q1-3/2008 (DKK 217M in
Q1-3/2007), cor-responding to an increase of 20%. EBITDA for the period totaled
DKK 24.5M (DKK 11.2M in Q1-3/2007), which is an increase of 119% compared to
2007.
• Revenues in North and South America amounted to DKK 132M in Q1-3/2008 (DKK
125M in Q1-3/2007), corresponding to an increase of 5%. EBITDA for the period
totaled DKK 14.9M (DKK 13.1M in Q1-3/2007), corresponding to an increase of
14%.
• Revenues in Eastern Europe amounted to DKK 163M in Q1-3/2008 (DKK 123M in
Q1-3/2007), cor-responding to an increase of 33%. EBITDA for the period totaled
DKK 7M compared to DKK 8.4M in Q1-3/2007, corresponding to a decrease of 17%.
• Revenues in Western Europe amounted to DKK 155M in Q1-3/2008 (DKK 153M in
Q1-3/2007). EBITDA for the period totaled DKK 10.5M (DKK 10.6M in Q1-3/2007).
• The Group's software development company, To-Increase, had gross revenues of
DKK 29.2M in Q1-3/2008 (DKK 27.1M in Q1-3/2007), corresponding to an increase
of 8%. EBITDA for the period amounted to DKK 8.4M (DKK 8.2M in Q1-3/2007),
corresponding to an increase of 3%.
• The result after tax amounted to DKK 15.2M in Q1-3/2008, which is an increase
of DKK 20.1M com-pared to the same period last year.
• Total equity increased to DKK 241.3M (DKK 215.3M in Q1-3/2007), resulting in
a solvency ratio of 44.1% (39.1% in 2007).
• Previously announced expectations for 2008 are being maintained, with total
revenues in the level of DKK 1,000M and an EBITDA of DKK 60-65M.
Ib Kunøe Michael Gaardboe
Chairman CEO
Columbus IT Partner A/S Columbus IT Partner A/S
For further information, please contact:
Claus E. Hansen, T: +45 70 20 50 00
Translation: In the event of any inconsistency between this document and the
Danish language version, the Danish language version shall be the governing
version.
Key Figures and Ratios
DKKm 2007 Q3 2007 Q3 2008 Q1-3 2007 Q1-3 2008
Income statement
Net revenues 892.4 186.1 217.0 617.7 711.7
External project costs -250.2 -42.2 -48.6 -165.3 -183.5
Gross earnings I 642.2 143.9 168.4 452.4 528.1
Staff expenses -438.0 -105.7 -119.5 -319.4 -372.1
Other external costs -153.8 -36.8 -45.8 -110.0 -121.5
Other operating income 1.0 0.0 0.0 0.0 1.3
Other operating costs -0.3 0.0 -0.1 -0.4 -1.4
EBITDA 51.0 1.4 3.0 22.6 34.6
Depreciation excl. goodwill -18.6 -4.3 -5.4 -12.7 -16.7
EBITA 32.4 -2.9 -2.4 9.9 17.9
Amortization and write down of goodwill -1.5 0.0 0.0 0.0 -0.7
EBIT 31 -2.9 -2.4 9.9 17.2
Result in associated companies 0.3 0.1 0.1 0.2 0.2
Net financial items -6.1 -1.4 -1.3 -3.9 -3.6
Pre-tax earnings 25.1 -4.2 -3.6 6.2 13.8
Tax on Q1-3 earnings -4.4 0.0 -0.1 -2.5 1.3
Earnings Q1-3, continued operations 20.7 -4.2 -3.7 3.7 15.2
Earnings Q1-3, discontinued operations -15.0 -6.7 0.0 -8.6 0.0
Earnings Q1-3 5.7 -10.9 -3.7 -4.9 15.2
Allocated thus:
Shareholders of Columbus IT Partner A/S 5.3 -8.2 -2.2 -1.4 18.3
Minority interests 0.4 -2.7 -1.5 -3.5 -3.1
5.7 -10.9 -3.7 -4.9 15.2
Balance sheet
Long-term assets 250.0 255.2 258.7
Short-term assets 326.3 266.3 288.0
Total assets 576.3 521.5 546.7
Group shareholders' equity 214.0 207.8 235.2
Minority interests 11.6 7.5 6.0
Debt 350.7 306.2 305.5
Total liabilities 576.3 521.5 546.7
Cash flow
Cash flow from operations 42.3 -6.6 -7.1
Net cash flow for investments -24.6 -22.2 -31.6
Cash flow from financing activities -1.7 25.2 20.2
Total cash flow 16.0 -3.6 -18.5
-
Key ratios
Gross margin II 5.7% 3.7% 4.9%
Operating profit margin (EBIT margin) 3.5% 1.6% 2.4%
Equity ratio 39.1% 41.3% 44.1%
Return on equity 2.6% -0.7% 8.3%
Average number of shares, in thousands 76,160 76,058 77,009
Net asset value per share (BV) 2.81 2.8 3.05
Earnings per share (EPS) 0.07 -0.1 0.24
Cash flow per share 0.5 -0.1 -0.1
Share price, end of period 6.15 7.1 4.7
Headcount at the end of the period 1,124 1,106 1,256
The key figures and ratios have been calculated in accordance with the Danish
Society of Financial Analysts' ”Recommendations and Key Figures 2005”. 2007
figures have been corrected to present earnings from discontinued operations
separately, and headcount figures of 2007 are not including employees in
discontinued operations.
The quarterly report has not been audited
Developments in Q1-3/2008
Columbus IT's net revenues for Q1-3/2008 amounted to DKK 711M, up from DKK 618M
in the same period last year, corresponding to an increase of 15%.
Revenues 2008 2007
Q1-3 DKKm % DKKm %
Hardware 6 1% 8 1%
Software 223 31% 206 33%
Service 36 5% 28 5%
Consultancy 446 63% 376 61%
Total 711 100% 618 100%
Revenues 2008 2007
Q1-3 DKKm % DKKm %
Dynamics AX 458 65% 365 59%
Dynamics NAV 165 23% 148 24%
Other MBS products 43 6% 38 6%
Other 45 6% 67 11%
Total 711 100% 618 100%
The growth in revenues is related to software, which increased by 8%, to
service and support, which increased by 29% as well as to consultancy, which
increased by 19% compared to Q1-3/2007. The Group's Dynamics AX related
revenues increased to DKK 458M, corresponding to an increase of 25% compared to
Q1-3/2007. The Group's Dynamics NAV related revenues increased to DKK 165M,
corres-ponding to an increase of 11% compared to the same period last year.
As the table below shows, revenues grew in all regions, and the majority of the
Group's subsidiaries have realized a level of activity and earnings in line
with or above expectations.
Revenues EBITDA Headcount
(DKKm) (DKKm) (as of September 30th)
Q1-3 2008 2007 2008 2007 2008 2007
Nordic 261 217 24.5 11.2 308 282
Western Europe 155 153 10.5 10.6 221 212
Eastern Europe 163 123 7.0 8.4 471 392
North and South America 132 125 14.9 13.1 248 208
Parent Company 0 0 -22.3 -20.7 8 12
711 618 34.6 22.6 1,256 1,106
Note: Revenue figures state the revenue generated outside the Group in the
regions. The Parent Compa-ny's figures are reported before costs being billed
to subsidiaries. Thus, the subsidiaries' figures are reported exclusive of
costs billed by the Parent Company.
The Group's financials show net expenses of DKK 3.6M compared to net expenses
of DKK 3.9M in the same period last year.
Corporation tax in profit-making foreign subsidiaries and Danish joint taxation
rules mean that the total calculated tax for Columbus IT for the period
amounted to a net income of DKK 1.3M.
The pre-tax earnings for the period were DKK 13.8M compared to DKK 6.3M in the
same period last year.
The result for the period was DKK 15.2M, which is an improvement of DKK 20.1M
compared to the same period last year.
Regional developments
Nordic region 2008 2007
Revenues - Q1-3 DKKm % DKKm %
Hardware 5 2% 6 5%
Software 67 26% 63 30%
Service 9 3% 8 3%
Consultancy 180 69% 140 62%
Total 261 100% 217 100%
Nordic region 2008 2007
Revenues - Q1-3 DKKm % DKKm %
Dynamics AX 154 59% 126 58%
Dynamics NAV 71 27% 44 19%
Other MBS products 28 11% 31 15%
Other 8 3% 16 8%
Total 261 100% 217 100%
Q1-3/2008 revenues for the Nordic region increased by DKK 44M, corresponding to
a 20% increase compared to the same period last year. The increase is due to a
higher level of activity both in the Danish subsidiary where revenues amounted
to DKK 210.9M in Q1-3/2008 (DKK 176.7M in 2007), corres-ponding to an increase
of 19%. In the Norwegian subsidiary revenues increased by 27% compared to the
same period last year. The Nordic Region accounts for 37% of the Group's
revenues.
The region's EBITDA increased by 119% compared to the same period last year, to
DKK 24.5M in Q1-3/2008. EBITDA in the Danish subsidiary increased by 114% to
DKK 21.3M in Q1-3/2008, while EBITDA in the Norwegian subsidiary increased by
200% to DKK 3.2M during the period.
Western Europe 2008 2007
Revenues - Q1-3 DKKm % DKKm %
Hardware 0 0% 1 1%
Software 50 32% 49 30%
Service 13 8% 12 12%
Consultancy 92 59% 91 57%
Total 155 100% 153 100%
Western Europe 2008 2007
Revenues - Q1-3 DKKm % DKKm %
Dynamics AX 111 71% 76 52%
Dynamics NAV 43 28% 67 44%
Other MBS products 1 1% 3 2%
Other 0 0% 7 2%
Total 155 100% 153 100%
In Western Europe revenues for Q1-3/2008 amounted to DKK 155M which is a minor
increase of 1% compared to the same period last year. For Q1-3/2008, the
Group's software development company, To-Increase, had gross revenues of DKK
29.2M (DKK 27.1M in Q1-3/2007). Revenues in the British subsid-iary amounted to
DKK 35.4M in Q1-3/2008 (DKK 35.3M in Q1-3/2007). Adjusted for foreign currency
translation, revenues in the company grew by 16%. Revenues in the French
subsidiary grew to DKK 47.3M, corresponding to an increase of 10% compared to
Q1-3/2007. Revenues in the Dutch consulting unit grew by 23% to DKK 22.7M. On
the contrary, revenues in the Spanish and the Swiss subsidiaries dropped by 18%
and 27% respectively compared to Q1-3/2007. The region accounted for 22% of the
Group's revenues.
The region's EBITDA dropped by DKK 0.1M compared to Q1-3/2007, to DKK 10.5M for
Q1-3/2008. The EBITDA of To-Increase increased by 3% to DKK 8.4M in Q1-3/2008.
EBITDA in the British subsidiary amounted to DKK 6.1M (DKK 5.9M in Q1-3/2007).
Adjusted for foreign currency translation, EBITDA in the company increased by
21% compared to Q1-3/2007. The Group's Swiss subsidiary is struggling with a
large client contract, and accordingly the EBITDA in the company has dropped
almost DKK 3.5M com-pared to Q1-3/2007. EBITDA in the Dutch consulting unit
which experienced difficulties during 2007, increased by DKK 3M to DKK 2.2M in
Q1-3/2008. Efforts to improve profitability were implemented, and the company
has maintained its positive development all through Q1-3/2008.
Eastern Europe 2008 2007
Revenues - Q1-3 DKKm % DKKm %
Hardware 1 1% 1 1%
Software 64 39% 50 41%
Service 11 7% 5 4%
Consultancy 87 53% 67 54%
Total 163 100% 123 100%
Eastern Europe 2008 2007
Revenues - Q1-3 DKKm % DKKm %
Dynamics AX 98 60% 82 67%
Dynamics NAV 27 17% 7 6%
Other MBS products 4 2% 4 3%
Other 34 21% 30 24%
Total 163 100% 123 100%
Revenues in Eastern Europe amounted to DKK 163M for Q1-3/2008 which is an
improvement of 33% compared to Q1-3/2007. Revenues of the Russian subsidiary
increased to DKK 93 in Q1-3/2008, cor-responding to an increase of 25%. The
Lithuanian subsidiary had a growth in revenues of 150% to DKK 28.6M in
Q1-3/2008. The increase is primarily due to the acquisition of the Dynamics NAV
focused con-sultancy company as of March 1st 2008. Revenues of the Polish
company increased by 39% to DKK 16.2M in Q1-3/2008. The region accounted for
23% of the Group's revenues.
The region's EBITDA dropped by 17% compared to the same period last year to DKK
7M in Q1-3/2008. EBITDA in the Russian subsidiary dropped from DKK 7.6M in
Q1-3/2007 to DKK 3.9M in Q1-3/2008. EBITDA in the Lithuanian subsidiary
increased by 337% to DKK 3.3M, primarily due to the above-mentioned
acquisition.
North & South America 2008 2007
Revenues - Q1-3 DKKm % DKKm %
Hardware 0 0% 0 0%
Software 42 32% 44 40%
Service 3 2% 3 3%
Consultancy 87 66% 78 57%
Total 132 100% 125 100%
North & South America 2008 2007
Revenues - Q1-3 DKKm % DKKm %
Dynamics AX 95 72% 81 65%
Dynamics NAV 24 18% 30 24%
Other MBS products 10 8% 0 0%
Other 3 2% 14 11%
Total 132 100% 125 100%
In North and South America total revenues in Q1-3/2008 amounted to DKK 132M,
corresponding to a 5% increase compared to Q1-3/2007. Revenues in the
subsidiary in the US amounted to DKK 96.7M in Q1-3/2008, which is the same
amount as in Q1-3/2007. However, adjusted for foreign currency transla-tion,
revenues in the company increased by 13%. Revenues in the Brazilian subsidiary
grew by 77% to DKK 15M in Q1-3/2008. Revenues in the remaining subsidiaries in
the region in total are in line with Q1-3/2007. The region accounted for 19% of
the Group's revenues.
EBITDA in the region is up by DKK 1.8M compared to the same period last year to
DKK 14.9M in Q1-3/2008. Due to the development in the USD rate, EBITDA in the
subsidiary in the US dropped by 2% to DKK 11.8M in Q1-3/2008. Adjusted for
foreign currency translation, EBITDA grew 15% in the company. EBITDA in the
Brazilian subsidiary has increased by DKK 1.1M to DKK 0.8M in Q1-3/2008. EBITDA
in the remaining subsidiaries in the region amounted to DKK 1.7M in Q1-3/2008,
corresponding to an in-crease of 25% compared to the same period last year.
Before billing subsidiaries for costs, the EBITDA of the Parent Company
amounted to DKK -22.3M in Q1-3/2008, compared to DKK -20.7M in the same period
last year.
Directed rights issues
In March 2008 Columbus IT issued shares in Columbus IT Partner A/S to settle
the purchase price relat-ing to the purchase of an additional 30% of the shares
in the Lithuanian subsidiary, UAB Columbus IT Partner, Lithuania. Please refer
to stock exchange release no. 4 of 5th March 2008.
Accordingly, a total of 708,597 shares were issued in Q1-3/2008, which had a
positive net impact on equity of DKK 4.8M.
Liquidity status
Columbus IT held cash funds of DKK 41.8M on September 30th 2008 compared to DKK
39M at the same time last year.
Management Report
The Board of Directors and the Executive Board have considered and approved the
interim financial re-port for the period January 1st 2008 - September 30th 2008
for Columbus IT Partner A/S.
The interim financial report has been prepared in accordance with IAS 34 and
additional Danish interim reporting requirements for listed companies. The
interim financial report is unaudited and has not been reviewed by the
Company's auditor.
We consider the accounting policies applied to be appropriate to the effect
that the interim financial report gives a true and fair view of the Group's
assets, liabilities and financial position at September 30th 2008, and of the
results of the Group's operations and cash flows during the period January 1st
2008 - September 30th 2008.
We consider the management report to give a true and fair view of the
development in the Group's busi-ness activities and financial situation, the
financial result for the period and the Group's financial position as a whole
together with a true and fair description of the significant risks and
uncertainty factors which the Group faces.
Ballerup, November 12th 2008
Executive Board
Michael Gaardboe Claus Hansen
CEO COO
Board of Directors
Ib Kunøe Sven Madsen Claus Hougesen Jørgen Cadovius
Chairman
Income Statement
DKK ´000 Note 2007 Q3 2007 Q3 2008 Q1-3 2007 Q1-3 2008
Net revenue 2,3 892,366 186,083 217,017 617,678 711,659
External project costs -250,181 -42,178 -48,591 -165,241 -183,544
Gross earnings 642,185 143,905 168,426 452,437 528,116
Staff expenses 4 -438,042 -105,694 -119,496 -319,420 -372,059
Other external costs -153,771 -36,849 -45,787 -110,000 -121,453
Other operating income 972 0 0 0 1,344
Other operating expense -318 0 -105 -417 -1,392
Earnings before depreciation (EBITDA) 51,026 1,362 3,037 22,600 34,556
Depreciation -18,578 -4,307 -5,441 -12,651 -16,662
Earnings before write down of goodwill (EBITA) 32.448 -2,945 -2,403 9,949 17.893
Write down of goodwill -1,495 0 0 0 -675
Operating profit (EBIT) 30,953 -2,945 -2,403 9,949 17,218
Results in associated companies 263 78 143 239 159
Financial income 8,350 1,834 2,430 4,210 4,567
Financial expense -14,470 -3,212 -3,795 -8,155 -8,117
Pre-tax earnings 25,096 -4,245 -3,625 6,243 13,828
Tax on the result of the period -4,414 12 -79 -2,529 1,331
Result for the period, continued operations 20.682 -4,233 -3,704 3,714 15.158
Result for the period, discontinued operations -14,960 -6,707 0 -8,656 0
Result for the period 5,722 -10,940 -3,704 -4,942 15,158
Allocated thus:
Shareholders of Columbus IT Partner A/S 5,348 -8,256 -2,164 -1,462 18,237
Minority interests 374 -2,684 -1,541 -3,480 -3,079
5,722 -10,940 -3,704 -4,942 15,158
Earnings per share (EPS) of 1.25 DKK:
Continued and discontinued operations (EPS) 0.07 -0.11 -0.03 -0.02 0.24
Continued and discontinued operations, diluted
(EPS-D) 0,07 -0.11 -0.03 -0.02 0.24
Continued operations (EPS) 0.27 -0.06 -0.05 0.05 0.20
Continued operations, diluted (EPS-D) 0.27 -0.06 -0.05 0.05 0.20
Balance Sheet
DKK ´000 2007 Q1-Q3 2007 Q1-Q3 2008
Assets
Intangible assets
Goodwill 151,377 156,971 161,397
Royalties 141 188 41
Development projects finalized 38,116 34,421 39,934
Development projects in progress 4,145 3,170 1,042
Other intangible assets 0 0 2,735
Total intangible assets 193,779 194,750 205,149
Tangible assets
Leasehold improvement 1,226 1,035 1,409
Plant and operating equipment 14,796 14,098 13,509
Total tangible assets 16,022 15,133 14,919
Financial assets
Holdings in associated companies 1,520 1,426 894
Deferred tax assets 34,199 34,997 33,282
Other receivables 4,476 8,953 4,477
Total financial assets 40,195 45,376 38,652
Total long-term assets 249,996 255,259 258,720
Inventories 6,655 4,696 3,981
Receivable
Trade receivable 203,889 162,997 172,797
Contract work in progress 26,086 28,022 31,360
Corporation tax 4,536 3,652 3,972
Other receivables 18,355 17,498 18,771
Accruals 5,814 10,370 15,284
Total receivables 258,680 222,539 242,184
Cash 60,959 39,048 41,796
Total short-term assets 326,294 266,283 287,961
Total assets 576,290 521,542 546,681
Balance Sheet
DKK ´000 2007 Q1-Q3 2007 Q1-Q3 2008
Liabilities
Equity
Share capital 95,580 95,580 96,466
Reserves on foreign currency translation -5,313 -4,082 -6,460
Retained profit 123,714 116,275 145,220
Parent company shareholders' equity 213,981 207,773 235,226
Minority interests' equity 11,558 7,521 6,049
Total equity 225,539 215,294 241,275
Long-term debt
Deferred tax 1,139 1,014 865
Credit institutions 780 1,373 1,306
Other debt 2,025 1,872 7,510
Total long-term debt 3,944 4,259 9,681
Short-term debt
Short-term part of long-term debt 0 2,550 547
Credit institutions 92,775 105,407 107,101
Debt to shareholders and affiliated companies 6,487 6,210 0
Client prepayments 37,679 30,065 29,671
Trade accounts payable 94,568 51,781 41,395
Corporation tax 728 578 584
Other debt 109,185 100,968 110,525
Accruals 5,385 4,430 5,902
Total short-term debt 346,807 301,989 295,725
Total debt 350,751 306,248 305,406
Total liabilities 576,290 521,542 546,681
Consolidated statement of changes in equity
DKK ´000
2008 Share
capital Reserves on foreign currency translation Retained profit Minority
interest Equity
Balance at January 1st 2008 95,580 -5,313 123,714 11,558 225,539
Foreign currency translation 0 -1,147 0 -399 -1,546
Other reserves 0 0 0 0 0
Net income recognized directly in equity 95,580 -6,460 123,714 11,159 223,993
Profit for the period 0 0 18,237 -3,079 15,158
Total recognized income and expense 95,580 -6,460 141,951 8,080 239,151
0 0 0 0
Capital increase 886 0 3,955 0 4,841
Issue of share warrant scheme 0 0 -686 0 -686
Disposal of minority interests 0 0 0 -2,031 -2,031
Addition of minority interests 0 0 0 0 0
Payment of dividends 0 0 0 0 0
Balance at September 30th 2008 96,466 -6,460 145,220 6,049 241,275
2007
Balance at January 1st 2007 93,929 -1,455 108,614 10,899 211,987
Foreign currency translation 0 -2,626 0 102 -2,524
Other reserves 0 0 0 0 0
Net income recognized directly in equity 93,929 -4,081 108,614 11,001 209,463
Profit for the period 0 0 -1,462 -3,480 -4,942
Total recognized income and expense 93,929 -4,081 107,152 7,521 204,521
Capital increase 1,651 0 9,123 0 10,773
Issue of share warrant scheme 0 0 0 0 0
Addition of minority interests 0 0 0 0 0
Payment of dividends 0 0 0 0 0
Balance at September 30th 2007 95,580 -4,081 116,275 7,521 215,294
Consolidated cash flow statement
DKK ´000 2007 Q1-Q3 2007 Q1-Q3 2008
Result for the period 20,682 3,725 15,158
Adjustments 30,713 4,584 17,378
Changes in working capital 15,556 -7,028 -38,471
Cash flow from operating activities bef. financials and tax 66,951 1,281 -5,936
Interest received, etc. 8,350 4,212 4,567
Interest paid, etc. -14,470 -8,155 -8,117
Corporation tax paid -5,241 -3,714 2,394
Cash flow from operating activities 55,590 -6,376 -7,091
Acquisition and investment in subsidiaries -2,371 -1,510 -16,786
Acquisition and investment in associated companies -321 -8,953 -156
Disposal of associated companies 963 807 2,284
Dividends received from associated companies 96 0 0
Acquisition of intangible assets -16,809 -8,898 -12,054
Acquisition of tangible assets -11,323 -8,322 -5,079
Acquisition of financial assets 0 0 0
Disposal of financial assets 4,470 0 0
Disposal of intangible assets -30 4028 0
Disposal of tangible assets 709 628 141
Cash flow from investing activities -24,616 -22,220 -31,649
Proceeds from capital increase 10,774 10,773 4,841
Costs in connection with capital increase 0 -56 0
Redemption of long-term debt 7 2,386 0
Overdraft facilities -1,230 12,056 15,399
Dividends paid to minority shareholders -387 0 0
Settlement of payable purchase sum -10,862 0 0
Cash flow from financing activities -1,698 25,159 20,240
Cash flow from discontinued activities -13,322 -182 0
Net increase in cash funds 15,954 -3,619 -18,500
Cash funds at the beginning of the period 43,633 43,633 60,959
Exchange rate adjustments 1,372 -966 -663
Cash funds at the end of the period 60,959 39,048 41,796
Cash funds total effect on the cash flow statement during the period:
Cash flow from operating activities 42,268 -6,558 -7,091
Cash flow from investing activities -24,616 -22,220 -31,649
Cash flow from financing activities -1,698 25,159 20,240
Net increase in cash funds 15,954 -3,619 -18,500
Note 1: Accounting policies
The interim financial report is prepared in accordance with IAS 34 "Interim
Financial Reporting" and addi-tional Danish disclosure requirements to the
interim financial reports for listed companies.
It is the first time that the Group presents an interim report in accordance
with IAS 34, which compared to previous interim reports has entailed a more
detailed presentation of statement of movements in equity and cash flow
statement and more detailed notes for specific areas. Comparative figures in
the interim financial report are adjusted to reflect the changed presentation.
The accounting policies applied in the interim financial report are unchanged
with respect to the Compa-ny's Annual Report for 2007. For more information on
the accounting policies, we refer to our Annual Report for 2007.
Note 2: Segment data
Group management and reporting are separated into four geographical regions
which constitute the Group's primary segmentation, and two horizontal business
activities which constitute the Group's sec-ondary segmentation.
Primary segment - Geographical regions
Q1-3 2008 Nordic region Western Europe Eastern Europe North and South
America Continued operations
Gross revenues 266,761 165,198 166,445 135,798 734,202
Revenues among segments 5,387 9,811 3,658 3,686 22,543
Net revenues 261,374 155,387 162,786 132,112 711,659
Gross earnings 196,738 119,097 115,065 97,216 528,116
Operating profit (EBIT) 11,648 -4,292 -241 10,102 17,218
Results in associated companies 159 0 0 0 159
Pre-tax earnings 12,987 -4,975 -407 6,222 13,828
Result for the period 16,995 -5,254 -743 4,160 15,158
Segment assets 238,893 138,173 89,082 80,533 546,681
Segment liabilities 84,039 103,611 67,009 50,746 305,406
Capital investments 1,383 1,099 2,265 332 5,079
Depreciation 2,939 10,014 2,528 1,181 16,662
Amortization 675 0 0 0 675
Holdings in associated companies 894 0 0 0 894
Q1-3 2007
Gross revenues 221,509 162,231 125,197 126,362 635,299
Revenues among segments 4,684 8,803 2,495 1,633 17,614
Net revenues 216,825 153,428 122,703 124,729 617,685
Gross earnings 158,879 115,804 87,501 90,239 452,423
Operating profit (EBIT) 7,094 -9,269 3,268 8,865 9,958
Results in associated companies 239 0 0 0 239
Pre-tax earnings 5,645 -9,468 2,904 7,173 6,254
Result for the period 6,044 -9,520 2,550 4,651 3,725
Segment assets 254,257 135,654 63,956 67,903 521,771
Segment liabilities 119,133 99,217 46,136 41,991 306,477
Capital investments 3,251 1,989 1,250 1,832 8,322
Depreciation -5,367 15,384 1,750 881 12,648
Amortization 0 0 0 0 0
Holdings in associated companies 1,426 0 0 0 1,426
Note 2: Segment data, continued
2007 Nordic region Western Europe Eastern Europe North and South
America Continued operations
Gross revenues 339,941 229,617 183,999 170,130 923,688
Revenues among segments 5,379 18,117 4,090 3,735 31,321
Net revenues 334,562 211,501 179,909 166,394 892,366
Gross earnings 231,097 163,281 126,877 120,929 642,185
Operating profit (EBIT) 7,849 4,557 9,558 8,989 30,953
Results in associated companies 263 0 0 0 263
Pre-tax earnings 6,332 3,628 9,141 5,994 25,095
Result for the period 5,507 4,894 7,151 3,129 20,682
Segment assets 273,108 149,385 82,401 71,396 576,290
Segment liabilities 136,392 108,545 59,489 46,326 350,751
Capital investments 4,745 2,464 1,915 2,199 11,323
Depreciation 3,896 10,646 2,285 1,752 18,578
Amortization -289 -985 -221 0 -1,495
Holdings in associated companies 1,520 0 0 0 1,520
Secondary segment - activities
Q1-3 2008 ISV
business VAR
business Eliminations Continued operations
Net revenues 29,201 705,001 -22,543 711,659
Segment assets 51,255 495,426 0 546,681
Capital investments 405 4,674 0 5,079
Q1-3 2007
Net revenues 27,065 608,234 -17,614 617,685
Segment assets 46,518 475,252 0 521,771
Capital investments 117 8,205 0 8,322
Year 2007
Net revenues 39,890 883,797 -31,322 892,366
Segment assets 54,510 521,780 0 576,290
Capital investments 264 11,059 0 11,323
Note 3: Net sales
DKK ´000 2007 Q1-Q3 2007 Q1-Q3 2008
Sale of products:
Hardware 18,372 7,327 6,064
Software 175,868 126,745 136,501
Subscriptions 128,367 78,552 85,955
Total sale of products 322,607 212,624 228,520
Sale of services:
Service- and hotline subscriptions 37,886 25,450 36,322
Sales value of completed consulting projects (services):
Sales value of finished projects 509,435 355,836 431,583
Change in contract work in progress 22,439 23,774 15,233
Total sale of services 569,760 405,060 483,139
Total net sales 892,367 617,685 711,658
Contract work in progress at beginning of the period 19,251 19,251 41,690
Contract work in progress at end of the period 41,690 43,025 56,923
Total change in contract work in progress 22,439 23,774 15,233
Note 4: Incentive Scheme
A senior executive has been granted an incentive scheme containing a share
warrant scheme. The share warrant scheme is granted at the market share prices.
The share warrant scheme is based on two criteria: employment and results
achieved. The share warrant scheme will not be adjusted for capital increases.
On the basis of a Black & Scholes' calculation, the scheme has a total forecast
market value of DKK 1.5M that will be expended in 2008 and 2009.
Specification of outstanding warrants Senior
executive Total
Numbers Exercise rate per warrant
No. No. DKK
Outstanding at January 1st 2008 720,000 720,000 7.44
Granted during the period 0 0 0.00
Used 0 0 0.00
Annulled during the period 0 0 0.00
Outstanding at September 30th 2008 720,000 720,000 7.44
Outstanding at January 1st 2007 0 0 0.00
Granted during the period 0 0 0.00
Used 0 0 0.00
Annulled during the period 0 0 0.00
Outstanding at September 30th 2007 0 0 0.00
The Black-Scholes' calculation is based on a future volatility of 38% and a
risk-free interest rate of 4.1%. The interest carrying volatility is based on
the historic volatility.
Note 5: Trade receivable
DKK ´000 2007 Q1-Q3 2007 Q1-Q3 2008
Receivables (gross) at September 30th 217,587 212,039 191,695
Allowance for doubtful debts at January 1st 13,364 13,364 13,699
Change in allowance for doubtful debts during the period 1,380 -2,878 7,328
Loss realized during the period -1,045 -1,103 -2,129
Allowance for doubtful debts at September 30th 13,699 9,383 18,898
Balance at September 30th 203,888 202,656 172,797
All trade receivables are due for payment within 1 year.
Allowance for doubtful debts is recognized in the income statement under “Other
external costs”. Allow-ance for doubtful debts are made based on individual
impairments of trade receivables.
