Cybercom Group Year-end financial report 2009

2010-02-10, 07:30

October – December

• Sales reached SEK 446.3 million (484.2)

• EBITDA margin of 11.0% (10.5)

• EBIT margin of 8.7% (8.4)

• EPS of SEK 0.74 (2.36)

• Breakthrough in Asia with five new operators

January – December

• Sales reached SEK 1,751.6 million (1,781.1)

• EBITDA margin of 8.2% (10.9)

• EPS loss of SEK 6.23 (EPS of 4.92)

• Financial measures during the year
- Goodwill write-down of SEK 280 million
- New share issue of SEK 100 million
- Offset share issue of SEK 27.7 million
- Restructuring costs totalling SEK 28.2 million

• Key event after year-end
- Adaption of operations in southern Sweden, layoffs announced affecting 80 people

Improved margins in Q4 and many new deals

Cybercom stands stronger now than one year ago. During a year of tough market conditions, we improved our cost-efficiency, and our EBITDA margin was 11.0% for Q4. The equity/assets ratio was 52.3% as of 31 December, and cash flow from 2009 operating activities was SEK 128.4 million. We intensified our sales and marketing activities and made breakthroughs with new customers, such as the major operators in Asia and public sector players in the Nordic market. We expanded our presence to encompass additional markets to meet customers’ requests.

Cybercom’s specialist expertise has earned international recognition, particularly in IT security and internet and mobile services, for which we have strong Nordic references. In 2009 we also received increased interest in these fields from customers in Asia, including an Android development deal for China Mobile. New customers Bharti Airtel and MobiFone, the largest operators in India and Vietnam, respectively, are further good examples.

The 2009 recession led to customers in the Nordic IT services market pressing prices, reducing their number of suppliers, and postponing closing deals. We carried out various activities during the year to adapt the company to the prevailing economic situation and to create a stable platform for long-term, global growth.

Despite a weak market, the level of enquiries about new assignments remained high. As a result, capacity utilisation in most of our units has been higher in Q4 than the previous year. We have rapidly acted to adapt to the change in demand by expanding our operations to eastern Europe and Asia to offer an attractive global sourcing business model. This strategy is already producing clear results. We are expanding outside the Nordics with international assignments and we grew 61% in Asia in 2009. We have resumed recruitment in the Nordic capitals where we have already established our presence, because we anticipate a better market in 2010.

The prevailing market still holds major challenges, but also many opportunities. Globalisation plays an important part and we will continue to develop the company in line with our strategy. We are building an international Cybercom, with a geographic structure designed for long-term business.

Stockholm, 10 February 2010

Patrik Boman
President and CEO

For more information, please contact:

Patrik Boman, president and CEO + 46 73 983 89 79
Odd Bolin, CFO + 46 70 428 31 73
Kristina Cato, communications and IR manager + 46 70 864 47 02

The Cybercom Group is an IT consultancy that offers global delivery capacity for local and international deals. The Group is a recognised supplier in security, portals, mobile solutions, embedded systems, and telecom management. Thanks to its extensive industry and operations experience, Cybercom offers strategic and technical expertise in telecom, industry, media, the public sector, retail, and banking and financial services. Cybercom’s consultants operate around the world and the company has 28 offices in 11 countries. Cybercom was founded in 1995 and has been quoted on the NASDAQ OMX Nordic exchange since 1999.

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