News Column

EBITDA - Interim Report January-June 2014

July 21, 2014



ENP Newswire - 21 July 2014

Release date- 18072014 - Continued very strong license sales.

License revenue for April-June increased with 26 percent to SEK 68.7 (54.6) million

Sales for April-June increased with 10 percent to SEK 209.3 (190.9) million

Operating profit EBITDA for April-June was SEK 10.3 (4.8) million

Earnings per share after tax for April-June were SEK 0.13 (0.03)

License revenue for January-June increased with 26 percent to SEK 122.1 (96.6) million

Sales for January-June increased with 9 percent to SEK 386.0 (353.5) million

Operating profit EBITDA for January-June was SEK 1.0 (-12.8) million

Earnings per share after tax for January-June were SEK -0.25 (-0.35)

Cash-flow from operating activities for January-June was SEK 72.5 (61.7) million

ReadSoft has during the second quarter been subject to public takeover offers from Lexmark International Technology and Hyland Software UK, respectively

CEO comment:

Continued very strong license growth

'The second quarter has been hectic for ReadSoft. Both Lexmark International Technology and Hyland Software UK have announced public tender offers to ReadSoft's shareholders to acquire all shares in the company. Despite the great attention that the company has been exposed to in connection with the public offers, I can proudly note that we have handled the situation in a good way. We have maintained our focus and we deliver a quarter that shows strong license growth and much improved results. Our total sales grew, compared to the corresponding period last year, by 10 percent for the second quarter and by 9 percent for the first six months. The vital license sales that is so important for a software company continues to be very strong and grew by 26 percent both in the second quarter and for the first six months. Our cash flow from operating activities continues to be very strong.

It is gratifying to see that our EBITDA result has more than doubled compared to the corresponding period last year. Our margins also continued to develop positively and it is evident that the actions we took to improve results and margins have had a positive effect. A gradual change in the reporting of our revenues from our support and maintenance agreements has affected the second quarter's result negatively compared to the corresponding quarter last year. This effect means no lost revenue but only a time delay in the reporting of these revenues.

The recurring revenues for the quarter increased by 9 percent compared with the same period last year and by 18 percent for the first half-year. On a rolling 12 month basis the recurring revenues increased by 13 percent and it is important for our future development that this trend is maintained.

The success of XBOUND continued in the second quarter and it is clear that the strategic changes that were made have had a very positive impact on sales in our global markets. During the second quarter it is primarily our larger markets, in France, Sweden and Germany that stand out, showing the way with good growth and profitability. On the product side, we launched the latest version of PROCESS DIRECTOR (7.3) at the international SAP conference SAPPHIRE NOW/ASUG in Orlando, USA. PROCESS DIRECTOR has also been certified for SAP HANA (a new database technology), which means that the solution can be integrated with SAP applications running on SAP HANA.

I am pleased how we have delivered this quarter under the circumstances in which the company currently operates. We have worked hard and improved our growth, results and margins, and we will continue these efforts in the coming quarters. We have strong license growth which guarantees further revenue for our organization, our recurring revenues continue to grow and our growth areas develop positively. This shows that ReadSoft is well positioned for the future and we are optimistic about our potential for a continued good development.'

Per Akerberg

President and CEO

Read the entire report in the attached PDF.

Invitation to telephone conference / audiocast for the presentation of ReadSoft's Interim Report for January-June 2014

On Friday, July 18, 2014, at 9:00 CET, are analysts, investors, media and other interested parties invited to attend a telephone conference where ReadSoft's President and CEO Per Akerberg will comment on the published report and answer questions. The presentation will be held in English.

Link to webcast: click here

Day and time: Friday, July 18, 2014 at 09.00 CET

Phone number: +46 8 505 56 482 or +44 203 194 0554

You can also access the presentation via our website www.readsoft.se or www.readsoft.com.

This is information of the type that ReadSoft AB (publ) is obligated to disclose in accordance with the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on July 18, 2014 at 08:00 CET.

For additional information please contact:

Per Akerberg, President and CEO

Phone+46 42 490 21 00

Johan Holmqvist, Vice President Corporate Communications

Phone: +46 42-490 21 98 or +46 708-37 66 77

Jan Bertilsson, CFO

Phone: +46 42-490 21 43 or +46 708-37 66 16

e-mail: firstname.lastname@readsoft.com


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Source: ENP Newswire


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