July – September 2014
- Sales amounted to SEK 287.4 million (249.3)
- EBIT was SEK 12.3 million (8.6)
- EBIT margin was 4.3% (3.4)
- Net profit after tax for the period was SEK 9.1 million (4.8)
- Earnings per share were SEK 0.05 (0.03)
January – September 2014
- Sales amounted to SEK 908.8 million (881.8)
- EBIT was SEK 42.1 million (38.1)
- EBIT margin was 4.6% (4.3)
- Net profit after tax for the period was SEK 30.2 million (25.2)
- Earnings per share were SEK 0.17 (0.14)
- Cybercom won business with Saab regarding development teams for Gripen E.
- Cybercom signed a 2-year framework agreement with the Swedish Tax Agency, the Swedish Enforcement Authority and the Swedish E-identification Board.
- Cybercom will enhance the Swedish International Development Cooperation Agency in the connected world through a 4-year agreement.
- Cybercom assisted WyWallet with implementation so that e-retailers can offer mobile payments.
- Cybercom and Tele2 entered into a strategic partnership machine-to-machine communications, M2M.
- Cybercom was exclusively invited to the UN Climate Change Summit to discuss innovative technology as a tool for a sustainable future.
Comments from the CEO
In the third quarter, we turned Cybercom towards good growth and also improved our margin. We have bolstered our relationship with Autoliv in Linköping and we developed an important application for the Swedish Film Institute, to make films accessible to the visually impaired and to people with reading difficulties. We also launched an important project with 4T's WyWallet. At the same time, we have continued to grow in the public sector in Sweden through assignments with the Swedish National Social Insurance Board, the Swedish Defence Materiel Administration, the Swedish National Police Board, the Swedish International Development Cooperation Agency and the Swedish Tax Agency. In addition, we have reaped good results from our previous agreements in Finland, with intensive project deliveries for the Finnish National Board of Education, and we have expanded our business with Finnish MTV in Managed Services. We have experienced excellent development for our businesses in Poland and Dubai, which made good contributions in late summer. We have won business with our international telecom clients, such as Cable and Wireless Communication, Ericsson and Unitel Angola. We have also had success internationally with blueGO, our software for wireless Bluetooth technology. This contributed to an increase in sales, which during the quarter amounted to SEK 287.4 million (249.3), representing growth of some 15% compared to the same period last year.
Our EBIT improved by 43% in the third quarter, and amounted to SEK 12.3 million (8.6), giving a margin of 4.3% (3.4). This is a positive development, but we are not yet satisfied. We can do better, and we continue to progressively execute on our strategy and to enhance our efficiency. Net financial income is progressing well, and we increased net profit after tax for the period to SEK 9.1 million (4.8). We have a stable cash flow and a good equity/assets ratio. We recruited 113 talented new employees during the quarter, and the number of employees at September 30 was 1,315 (1,243). The average number of employees has increased by over 7% compared to the third quarter last year. At the same time, we are using a larger proportion of consultants from our external network.
The Nordic market continues to give mixed signals. There are many interesting ongoing business dialogues, while the turbulent macroeconomic situation is dampening the business climate. We are noticing a clear level of caution among our clients in manufacturing and in parts of the automotive industry. So far we have navigated well in the Finnish market, but this is becoming increasingly tough. In southern Sweden, the market is clearly influenced by the measures communicated by Ericsson Modems and Sony Mobile, while we see many more long-term opportunities in this change and in Ericsson's investments in radio network R&D.
Our strength and our good references in Connectivity, the connected world, position us as a preferred partner with many key clients who selectively choose suppliers to ensure stronger and more sustainable development. We are being invited to important conversations with new clients and in new contexts.
An example of this was when Cybercom was one of the companies chosen by the UN to represent the new, innovative technology and expertise necessary to enable sustainable development in the world. In September, we participated in the UN Climate Summit in New York, which aimed to mobilise action on climate change and raise aspirations in the ongoing climate negotiations. UN Secretary-General Ban Ki-moon invited heads of state, heads of government and representatives from business and finance. This is a valuable ongoing dialogue.
We look forward with confidence, well aware that we are affected by short-term challenges in the market and by the prevailing economic conditions. We continue to execute on our planned strategy and with a stronger position in Connectivity. Step by step we are achieving sustainable improvements to meet our long-term financial goals and to create enhanced value for our shareholders.
President and CEO