Interim Report January – March 2012

2012-05-02, 07:30

January – March 2012

· Sales amounted to SEK 374.8 million (382.1)
· EBITDA was SEK 26.3 million (29.8) and EBITDA margin was 7.0% (7.8)
· EBIT was SEK 18.5 million (2.9) and EBIT margin was 4.9% (0.8)
· EPS was SEK 0.25 (-0.02)

Comments from the CEO

Cybercom has won a number of new contracts during the first three months of the year. For example, we strengthened our position in the public sector with new clients in the Nordic countries through agreements with the Finnish National Board of Education and the City of Copenhagen. We have signed important framework agreements with Danske Spil and Skandia. We received significant recognition for our expertise in connectivity when Ericsson appointed Cybercom as its industry expert partner for the development of services and products for the automotive industry.

Sales during the first quarter of 2012 amounted to SEK 374.8 million (382.1) with EBITDA of SEK 26.3 million (29.8) and a margin of 7.0% (7.8). Compared to last year, we are seeing a natural reduction in turnover as a result of the cutbacks made by Cybercom in the group during 2011. The Swedish business continues to show growth, while our international operations have had a negative trend, with the exception of Poland, which is progressing very well.

The market has been largely stable, with generally good demand. However, we are noticing longer sales cycles for the major project commitments. In Sweden, demand during the quarter was strong, resulting in a good sales growth. During the period we used a high proportion of sub-consultants and we are seeking a better balance between demand and our own consultants. In Finland, the transition is proceeding according to plan, with continued recovery to better levels of profitability after last year's cutbacks.

I took over as CEO on March 1 and my initial analysis of the company is that we need to intensify our efforts to become more efficient. I note that the integration of the group’s subsidiaries, which began last year, is ongoing and that there is more to do. We are now investing in our employees' skills and our culture, which is necessary to strengthen profitability through controlled skills development as well as through more focused and effective sales.

In addition, we will increase efficiency during the year by optimising Cybercom’s global structure and delivery capacity to better benefit from the company's business model.

Cybercom has a very interesting position moving forward, with our complete service offering and strong references in Connectivity, the ecosystem around telecommunication services. With an edge in Connectivity, we are able to offer valuable knowledge more and more successfully to clients in other segments. We have unique expertise and a strong international position in the areas of Connected Engineering, Connectivity Management and Digital Solutions. Our strength and our future lie in these areas. We look forward to successfully improving our clients' businesses, making use of the opportunities in the connected world.

We have respect for market developments, and are now focused on reversing the trend in our International segment and on reducing the imbalance between demand and our own consultants in Sweden. The coming quarter could be affected by this.

Stockholm, 2 May 2012

Niklas Flyborg
President and CEO

For additional information, please contact:

Niklas Flyborg, President and CEO +46 70 594 96 78
Per Killiner, CFO (acting) +46 72 531 98 08
Kristina Cato, Communications Director and IR Manager +46 70 864 47 02

Cybercom is an IT consultant that offers global delivery capacity for local and international business. The group has become established as a recognised provider of turn-key solutions in telecom management, connected devices, Internet services and security. Cybercom’s consultants work around the world and the company has its own offices in nine countries. Cybercom was founded in 1995 and has been quoted on the NASDAQ OMX Stockholm exchange since 1999.

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