Business News

Readsoft Interim Report January-September 2008

Wednesday 22. October 2008 - Focuses operations in response to weakend market

The turnover for the first nine months increased by 11% to SEK 401.8 (362.7) million
Results EBITDA for the first nine months was SEK 7.6 (4.7) million
Results per share for the first nine months were SEK -0.64 (-0.12)
The turnover for the third quarter increased by 2% to SEK 127.9 (125.9) million
Results EBITDA for the third quarter was SEK 3.8 (3.0) million
Results per share for the third quarter was SEK -0.36 (-0.14)
Cash-flow from the current business for the first nine months was SEK 52.0 (19.6) million
ReadSoft has decided to focus its development resources on three product areas and to implement a savings program to cut down costs by SEK 40-45 million. The total non-recurring costs for these actions are estimated at SEK 20 million. SEK 10.8 million will be charged to the third quarter earnings and is write-downs for activated software development costs.
“ReadSoft’s business operations did not develop as planned during the third quarter of 2008. The state of uncertain markets around the world has influenced customers’ willingness to invest, and, in turn, growth and results were lower than expected. However, performance varied greatly from market to market. Sales in “USA and the rest of the world” increased by approximately 24 percent, while at the same time the large European markets displayed negative growth. Results in other geographic segments also varied significantly.
 
Due to the decrease in growth and the turbulent economic situation, ReadSoft has decided to take measures in response to the weakened market. This includes postponing the development of one of our products and focusing development on three specific product areas: SAP, Oracle and Capture.
Activity is now focused on our most successful areas, building a stable platform from which to meet the demands of a tougher market.”