Strong results from IFS in the second quarter
EBIT increased 94% to 64 million SKr, license sales increased by 26%, currency adjusted, to SKr 103 million and cash flow after investments tripled to SKr 92 million. Focus on best-practice industry solutions for selected sectors continues to be successful for IFS. The closure of several important deals contributed to strong growth and with a healthy increase in pipeline the second quarter is setting IFS on the right track for reaching its growth targets.
- Net revenue increased to SKr 655 million (Q2 '09: SKr 640 million)
- License revenue increased to SKr 103 million (Q2 '09: SKr 86 million) up 26% adjusted for currency
- Maintenance and support revenue was SKr 205 million (Q2 '09: SKr 193 million), up 10% adjusted for currency
- EBIT was SKr 64 million (Q2 '09: SKr 33 million)
- Cash flow after investments was SKr 92 million (Q2 '09: SKr 32 million)
- Pipeline grew 12%
Amongst the deals achieved in quarter two was a world leader in project management/engineering for the oil and gas industry. The company has selected IFS as its new global enterprise applications system to support its growth and streamline its corporate processes in more than 20 countries; the contract value is in the range of € 10–15 million.
─ IFS helps customers standardize their global processes through our component-based software that easily supports multiple sites, multiple languages, multiple currencies, and multiple sets of accounting rules. Our message of being the intelligent choice for customers seeking quicker and better return on investment is being increasingly picked up in the market, Alastair Sorbie, IFS CEO said.
For more information on important customer wins, listen to the quarterly presentation or download it from this page: http://www.ifsworld.com/investor_relations/default.asp
IFS continues to search for acquisition opportunities, and improved cash-flow and earnings are strong enablers for this going forward. The company has not acquired companies in the second quarter but expect to do so within the year.
The outlook for the full year remains unchanged. IFS expects moderate growth excluding the effects of acquisitions.
The report will be presented by CEO Alastair Sorbie today, Wednesday July 21, at 0930amCET. Listen to the presentation:
IFS is a public company (OMX STO: IFS) founded in 1983 that develops, supplies, and implements IFS Applications™, a component-based extended ERP suite built on SOA technology. IFS focuses on agile businesses where any of four core processes are strategic: Service & asset management, manufacturing, supply chain and projects. The company has 2,000 customers and is present in more than 50 countries with 2,700 employees in total. Net revenue in 2009 was SKr 2.6 billion.The information is that which IFS is required to declare by the Securities Business Act and/or the Financial Instruments Trading Act. The information was submitted for publication on July 21, 2010, at 08:00 a.m. CET.