Ementor AB

Ementor ASA - results 2nd quarter 2004

Pressmeddelande   •   Jul 15, 2004 09:02 CEST

EBITA mnok -11.6. Revenues mnok 1 083. Sweden best contributor. Improved product margin 14.9% (best since 2001). 30.8% growth in Outsourcing contract base year-to-date. Implementation of new loan facility completed. Cash and cash equivalents mnok 223.

Revenues amounted to mnok 1 083 in the second quarter, which is down 2.2% from the corresponding period last year and 15.6% from first quarter 2004. Adjusted for the drop in HW sales due to the sale of the HW product sales entity in Denmark, the volume is marginally up in Q2 year-on-year. Recurring revenues from services continue to show a positive development with a 4.0% growth first half year 2004 compared to same period last year. Due to a number of major wins the outsourcing contract base, however, has increased 30.8% year-to-date in yearly revenue value.

Gross margin of 41.6% in the second quarter is marginally improved compared to the corresponding period last year and up from 38.3% in first quarter 2004. The increase from first quarter 2004 relates to improved product margins, which more than compensates for the drop in consulting margin.

Operating expenses in the second quarter was mnok 462.4, down mnok 18.1 from the corresponding period last year. Compared to first quarter, operating expenses are down mnok 31.9.

EBITA improved from mnok -24.8 in the second quarter last year to mnok -11.6 in the second quarter 2004, mainly due to improvement in the Swedish operation. Only Denmark reports a profit decrease. Second quarter EBITA of mnok -11.6 are reduced from mnok -2.3 in the first quarter, mainly due to a profit decrease in Denmark.

Goodwill amortisation in the second quarter was mnok 2.8, compared to mnok 2.5 in the same period last year.
Net financial items were mnok -16.9 in the second quarter compared to mnok -5.4 in the same period last year. Write down of the shares in iTet contributed with mnok -12.1, due to the mnok 3 sale of the 46.8% shareholding. A restructuring charge of mnok 14.4 has been recorded as unusual items in the second quarter, related to the restructuring of the Finnish operation. Loss before taxes in the second quarter was mnok -45.6 compared to mnok -187.8 in the same period last year.

Ementor continues to amend its business model. The Board is of the opinion that the reported restructuring activities and the growth in the outsourcing contract base are important milestones in building the new Ementor.

EME - Report 2nd quarter

For further information please contact:
Arne A. Jensen, President/CEO Ementor ASA, tel. +47 915 14 088
Ole Mjåtvedt, CFO Ementor ASA, tlf. +47 930 06 671

Ementor is one of the largest business consulting and IT solutions & services companies in the Nordic region. With expertise within consulting, technology and outsourcing, we help the most demanding of Nordic companies to improve their operational efficiency, create customer loyalty and build platforms for change. Ementor has 2 300 employees and is located in 21 cities across Norway, Denmark, Sweden, and Finland. The company is listed on the Oslo Stock Exchange. To find out more about what Ementor can offer, please visit www.ementor.com.