Improved operating margins and growth in Global Services revenues Operating profit, operating margin, earnings per share and cash flow from operations, all improved compared with the second quarter last year.
Net sales for the second quarter amounted to
Operating profit for the second quarter increased to
Earnings per share increased to
Cash flow from operations amounted to
On 30 May,
(second quarter previous year in brackets)
· Net sales,
(January to June previous year in brackets)
· Net sales,
“Our operating margin for the second quarter was 21.9 percent. Once again we have set a record for profitability, this time for the second quarter. Never before has
It is also encouraging that we during the second quarter achieved a double digit revenue growth for our Global Services operation over the same period last year. This is the third quarter of sequential revenue growth, but it is the first time in six quarters we again achieve revenue growth year over year. We have won a range of major contracts in this line of business over the past few quarters, in both the US and
Revenue from our software business remained stable throughout the first six months of the year, with a small increase in the first quarter and a corresponding decrease in the second quarter compared with the same periods last year. Our growth in this field is largely dependent on growth in royalty revenues from our major customers. We saw no major increase in these revenues during the second quarter due to weaker sales than anticipated among some of our major customers in the first quarter. However, our software business continues to develop with good gross margins and is making a strong contribution to the company’s overall operating profit. Our market position has also continued to develop well, as have ongoing discussions on new contracts, and we enter the second half year cautiously optimistic.
We are the leading independent supplier of built-in operating system solutions in a world in which our competitors are becoming ever more vertically integrated and hence linked directly with specific kinds of hardware. We are continuing to focus on the ARM architecture, but we also benefit from our freedom as an independent software supplier. One specific example of this is the release of Enea Linux which took place during the quarter, as Enea Linux 4.0 supports hardware from a number of different suppliers, based on ARM, PowerPC and the x86 architecture. We are continuing to invest heavily in product development in order to continue improving our competitiveness. 22.6 percent of our revenues in the second quarter was reinvested in R&D, and we released a number of new products over the period. The second quarter was special as we launched new versions of all our major products – OSE5, Enea Linux and Element – simultaneously during one and the same quarter. We also finalized some completely new solutions, such as the OSE Compatibility Platform, which allows users to integrate OSE applications and Linux applications within a single system. This platform will be a key component for developing our business with existing customers and also enhancing our Linux range at the same time. To further strengthen our presence in the world of Linux, we also announced a strategic cooperation with the
The changes made to the sales and marketing organization in the US, which were implemented at the start of the second quarter, have developed well. We have also recruited a new manager for the Asian sales organization, and this person will start at the end of the third quarter. We will also be increasing our sales resources on the European market in the third quarter. We will continue to gradually strengthen our sales and marketing organization with the ambition to increase the growth rates long term, but without creating a negative impact on our operating margins short term.
We continue our efforts to improve growth and high profitability. Our aim is to consolidate a 20 percent operating margin and deliver revenue growth year over year.
We continue to be prepared for ongoing soft demand, but maintain our forecast for the year. Our estimate for the full year 2014 is that earnings per share will be improved compared with the previous year.”
Press and analyst meeting
Press and financial analysts are invited to a press and analyst meeting where
Phone number: SE +46 851999350,
The full report is published at www.enea.com/investors
This information is such that
Sofie Sarhed, Investor Relations Phone: +46 709 71 4005 E-mail: firstname.lastname@example.org About Enea
Enea®, Enea OSE®, Netbricks®, Polyhedra® and Zealcore® are registered trademarks of
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The following files are available for download:
http://mb.cision.com/Main/1006/9619314/268779.pdf Interim Report Q2 2014
http://mb.cision.com/Public/1006/9619314/a648b11ad41044ac.pdf PR Interim Report Q2 2014 eng
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