Interim Report April – June 2012

2012-07-13, 13:00

April – June 2012

· Cybercom divested the operations in China
· Cybercom is closing its operations in Romania
· Sales were SEK 336.8 million (384.1).
· EBITDA was SEK 2.6 million (-22.4) and the EBITDA margin was 0.8% (-5.8), which includes restructuring costs of SEK 5.0 million for closure of the office in Romania.
EBITDA from operating activities was SEK 7.6 million (4.8) and the EBITDA margin was 2.3% (1.2).
· EBIT was SEK -16.6 million (-166.9) and the EBIT margin was -4.9% (-43.5), which includes the above restructuring costs and a capital loss of SEK 11.7 million associated with divestment of the Chinese operations. EBIT from operating activities was SEK 0.1 million (-4.7) and the EBIT margin was 0.0% (-1.2).
· Earnings per share were SEK -0.59 (-4.49).

January – June 2012

· Sales were SEK 711.6 million (766.1).
· EBITDA was SEK 28.9 million (7.2) and the EBITDA margin was 4.1% (0.9).
· EBIT was SEK 1.9 million (-164.2) and the EBIT margin was 0.3% (-21.4).
· Earnings per share were SEK -0.33 (-4.51).

After the end of the period

· Cybercom has decided to move to a new, more efficient financing solution
that is better suited to its operations. As part of this financing solution,
the board intends to call an extraordinary general meeting to propose
a decision on a rights issue.

Comments from the CEO

In the second quarter the market has been relatively stable and Cybercom has continued to win important new contracts in Connectivity in the Nordic region and globally. Among new projects won are, for example, a large vendor management project in Connectivity Management and a 4G assignment for one of the major operators in Singapore, M1. We have also won an interesting turnkey contract with regard to cost savings in manufacturing of telecom infrastructure. The broadening from telecom and into new sectors, which is important for our profitability, has continued during the quarter. In the Nordic countries we have been chosen by Höganäs Municipality and MTV Media to develop digital solutions, we have broadened ourselves in the industrial segment and we can add three new energy clients.

In the last interim report I wrote that our primary focus was to turn the tide in the International segment and to reduce the imbalance between demand and our own consultants in Sweden and that these measures would affect second-quarter results. A large number of activities in the current streamlining of operations have been conducted during the quarter.

It is satisfying to note that ahead of the autumn we have divested the loss-making Chinese business, and have started to close the Romanian near-shore office and moving these projects to our successful Polish and Indian businesses. Furthermore, we have reduced the number of administrative roles within the International segment. In Sweden we have streamlined the organisation by merging business areas and have reduced the number of offices. We have made investments in our sales organisation. By acting more professionally in our sales, with a common strong proposition in Connectivity and with clear sales management, we are now making progress in Sweden and in other segments in how we sell and package our expertise.

The measures I am now implementing are intended to stabilise the company and to better utilise the potential that the company holds and to be able to deliver on the financial targets set by the board.

Cybercom has previously had a growth strategy based on acquisitions. These acquisitions have contributed to Cybercom’s strong market position in Connectivity, but have also been costly since they were mainly financed by loans, which the company has largely repaid over the past five years. We have reduced our net debt from approximately SEK 660 million at mid-year 2007 to SEK 154 million at mid-year 2012. An important part of the development of Cybercom is to strengthen its capital structure through a more efficient financing solution. I have respect for a more volatile macroeconomic environment and a tougher financial climate. I will continue the streamlining that has been started in order to stand well equipped in a more challenging market. I also believe that a new financing solution that includes a rights issue is necessary to create the financial platform that the company needs to be able to act more proactively in developing the company going forward.

Stockholm, 13 July 2012

Niklas Flyborg
President and CEO

For additional information, please contact:
Niklas Flyborg, President and CEO +46 70 594 96 78
Camilla Öberg, CFO +46 73 398 50 01
Kristina Cato, Communications Director and IR Manager +46 70 864 47 02


Cybercom is an IT consulting company that assists leading companies and organisations to benefit from the opportunities of the connected world. The company’s areas of expertise span the entire ecosystem of communications services. Cybercom’s domestic market is the Nordic region, and in addition the company offers global delivery capacity for local and international business. Cybercom was founded in 1995 and has been quoted on the NASDAQ OMX Stockholm exchange since 1999.

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