STOCKHOLM, Sweden--(BUSINESS WIRE)--Regulatory News:
- Sales amounted to SEK 319.2 million (374.8)
- EBIT was SEK 15.7 million (18.5)
- EBIT margin was 4.9% (4.9)
- Net profit after tax for the period was SEK 11.1 million (9.1)
- Earnings per share were SEK 0.06 (0.16)
- Helsingin Energia and Cybercom signed an agreement for application development. The contract is worth approximately EUR 1.2 million over two years.
- Cybercom extended a major project with an important telecom client to develop key elements of future radio base stations over six months, involving nearly 50 consultants.
- Cybercom and the Telecommunications Regulatory Authority (TRA) in the Sultanate of Oman signed a contract for quality audit and evaluation of telecom services in Oman.
- Cybercom won a major contract with housing cooperative HSB for an internal digital communications solution.
- Cybercom received an expanded contract for application management and hosting services for MTV Media Oy.
- Telenor signed a framework agreement with Cybercom.
- The Swedish Prosecution Authority signed a framework agreement with Cybercom.
- Cybercom conducted important usability testing for Finland’s Social Insurance Institute.
- Cybercom is developing the concept and design of the user interface and the design of the new visual appearance of Itella’s new corporate services.
- The 2013 AllBright Report ranked Cybercom of the sector’s number one for the proportion of women in management.
Comments from the CEO
First-quarter performance was largely in line with our expectations. We have attractive offerings in Connectivity, where we foresee a good market in the coming years and where we have won most new business during the first quarter. Some clients and projects I would like to mention are MCX in Poland, Copenhagen City, MTV Media, Helsingin Energia in Finland, TRA in Oman, and ASSA ABLOY, Doro, HSB, Karolinska Institutet, the Swedish Tax Agency, Telenor, the Swedish Transport Administration, Volvo Cars and Volvo Trucks in Sweden.
Our strategic transformation is running according to plan and we continue to fundamentally improve our business and bring about long-term sustainable change.
We experienced stable development with most of our major clients during the quarter. ST-Ericsson’s announced corporate changes have had a relatively small impact on our business as only as few assignments were ended.
We are seeing a good steady flow of inquiries and new business opportunities, but decisions are lengthy and the competition is intense. Market conditions in all our geographies are somewhat harder than in the previous quarter, and this is especially notable in Stockholm and Helsinki.
Cybercom’s sales for the first quarter amounted to SEK 319.2 million (374.8). EBIT was SEK 15.7 million (18.5), giving a margin of 4.9% (4.9). The cost-cutting programme initiated during the fourth quarter of 2012 is now completed in full and all the employees who were made redundant have left us. We have reduced our cost base, primarily due to lower costs of administrative staff and premises, and this is also reflected in our results. It is gratifying to note that the net financial income has now been strengthened by the financial restructuring we implemented, and we have increased net profit after tax for the period to SEK 11.1 million (9.1).
We are seeing good improvement in profitability in the International segment, which is positive. A slightly upward trend can also be seen in our Finnish operations. If we look at our largest segment, Sweden, we have not achieved the same level of profitability as last year's strong first quarter. This is largely due to the fact that we have had negative calendar effects and a higher proportion of sick leave this year.
I am also pleased to note that Cybercom was mentioned in the 2013 AllBright Report, where we rank number one in the technology sector for the proportion of women in management. This is an important issue and something we are actively working with at Cybercom.
We see challenges in the uncertain economic climate that continues to hold sway in 2013, but with the changes we have implemented in the company, Cybercom stands better equipped for long-term development of our business and for achieving our strategic and financial targets.
Stockholm, May 3, 2013
President and CEO
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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