IFS results in the third quarter
License revenue and earnings continue to grow
In the quarter, EBIT increased 105% to 39 million and license revenue improved 13% adjusted for currency. Year-to-date earnings increased almost 50% to 65 million SKr. Focus on best-practice industry solutions to customers in growth markets like renewable energy, oil & gas, infrastructure, homeland security and defence continues to be successful for IFS.
IFS announced the acquisition of product company 360 Scheduling, its third acquisition in three years.
- License revenue was SKr 99 million (Q3 '09: SKr 90 million), up 13% adjusted for currency
- Maintenance and support revenue was SKr 201 million (Q3 '09: SKr 196 million), up 6% adjusted for currency
- Net revenue was SKr 612 million (Q3 '09: SKr 581 million)
- EBIT improved to SKr 39 million (Q3 '09: SKr 19 million), an increase of 105%
- License pipeline grew 12%
- Cash flow after investments in the first nine months improved to SKr 164 million (90) and reached SKr 260 million on a rolling 12-month basis
Amongst the deals closed in the quarter was a national defense organization in Europe contracted for US$ 5 million of IFS Applications licenses in cooperation with a global defense partner, and the Federal Aviation Administration (FAA) in the USA which selected IFS Applications as its supply chain, maintenance, repair, and overhaul (MRO) solution for use throughout the U.S. National Airspace System (NAS). In addition, a number of new contracts were signed together with upgrades and add-on sales to the existing installed customer base.
IFS announced on Sept 30 that it had signed an agreement with the owners of 360 Scheduling Ltd. to purchase 100% of the shares of the company. The acquisition will further strengthen IFS’ market position in the targeted sector Service & Asset, especially mobile workforce management.
–With the acquisition of 360 Scheduling, IFS is executing on its strategy of growth and is doing so by expanding in one of its target sectors. We currently have around SKr 1 billion in cash and loan facilities and our strong finances together with our continuously improving cash flow are enabling us to continue with our stated strategy”, Alastair Sorbie, IFS CEO said.
The outlook for the full year remains unchanged with moderate organic growth anticipated, excluding the effects of acquisitions and currency fluctuations.