April – June 2015
· Sales amounted to SEK 329.2 million (312.3)
· EBIT was SEK -2.9 million (14.0) and the EBIT operating margin -0.9% (4.5)
· EBIT before non-recurring items was SEK 5.5 million (14.0) and the EBIT operating margin 1.7% (4.5)
· Net profit after tax for the period was SEK -3.4 million (9.6)
· Earnings per share were SEK -0.02 SEK (0.05)
January – June 2015
· Sales amounted to SEK 663.1 million (621.4)
· EBIT was SEK 11.9 million (29.8) and the EBIT operating margin 1.8% (4.8)
· EBIT before non-recurring items was SEK 20.3 million (29.8) and the EBIT operating margin 3.1% (4.8)
· Net profit after tax for the period was SEK 7.6 million (21.1)
· Earnings per share were SEK 0.04 SEK (0.12)
· Cybercom is closing its Turku office following weak performance in Finland
· New 4-year framework agreement with Finnish municipal procurement authority Kuntahankinnat
· Gothenburg City is developing sustainable ElectriCity public transport with Cybercom and others
· Karlskrona Municipality chooses Cybercom for Google Apps in schools
· PostNord engages Cybercom in IT-security
· Cybercom's blueGo software breaks new ground with medtech companies
Comments from the CEO
Cybercom continues to show growth. With SEK 329.2 million (312.3) in sales during the second quarter, we grew by 5% compared to the same period last year. Adjusted for currency effects, sales growth was 3.7%. We have broken new ground in the medtech field with our blueGO software, we are involved with developing sustainable public transport in Gothenburg and we have started important collaborations with E.ON, PostNord and Wihlborgs. We have also gained new clients in IMS Health, Hemocue and Hiab. Together with WSI we are developing the head-mounted game consoles of the future for Gameface Labs and we are helping schools in Karlskrona to get started with Google Apps. At the same time, we have further strengthened our position in the public sector through a framework agreement with Kuntahankinnat, Finland's municipal procurement authority. The Sweden and International segments are demonstrating positive performance and we are therefore strengthening our position in Connectivity in an attractive and highly competitive market.
We operate in a rapidly changing market and it is important to continuously adapt accordingly. Changes cost in the short term, as is visible in our weak profitability during the period which, after non-recurring costs from the measures in Finland, amounted to SEK -2.9 million (14.0). Adjusted for this, EBIT amounted to SEK 5.5 million, giving a margin of 1.7%. I am not satisfied with the profitability performance we have achieved so far this year. Second quarter has been marked by several challenges, including seasonal with a short month of May and weak development in our business in southern Sweden and Finland. There has been sharper slowdown in the Finnish operations and a slower recovery in the industrial segment than we previously expected. This has unfortunately affected approximately 30 of our employees, who had to leave us in June. We took the decision to close our Turku office, which was charged to the quarter at a total of SEK 8.4 million, but we believe this will provide the potential for better performance in our Finnish operations by the autumn. Cybercom is well positioned with offices in Tampere and Helsinki to continue to grow with key clients and to meet demand in the industrial segment once the economy turns.
We have continued our transition in the Öresund region and have received good returns in our Danish operations, which are now growing healthily. However, in southern Sweden, our transition is taking longer than previously anticipated, which has led to a negative impact on the profitability. We have taken steps and see good potential in the region going forward.
Ericsson's announced cutbacks did not affect us substantially in the quarter and we see good opportunities to continue to assist them with effective agile development teams in both Sweden and Poland.
The market is otherwise good, but purchasing behaviour is increasingly complex which demands several business models. Using innovative solutions we help our clients to drive business transformation, deliver competitive differentiation and enhance their customer experience. We are involved in developing public services for the online citizen and secure accessibility for the connected consumer. There is fundamental demand and substantial market potential in this area. I am very proud of our client book and I look to the autumn with confidence.
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 Stockholm exchange since 1999.