Stockholm, Sweden (ots/PRNewswire)
- Corporate Streamlining Actions Generate Loss for Quarter, Set
Stage for Future Operating Profitability
Intentia International AB (XSSE: INT B), the global enterprise
solutions provider for the manufacturing, distribution and
maintenance industries, announced its results for the third quarter
Third quarter 2004 earnings summary
- Net revenue declined 3 per cent compared to the prior year
period, with license revenue down 7 per cent and service revenue
steady. Adjusted for exchange rates, net revenue was in line with the
previous year period.
- Implementation of corporate streamlining measures produced
nonrecurring charges of SEK 260 million (8) in the third quarter,
contributing to net loss of SEK 310 million. EPS for the quarter was
SEK -2.0 versus -0.8 last year.
- Head count fell 19 per cent in the past 12 months. The actions
taken in the latter part of 2003 and in 2004 are expected to reduce
costs by close to SEK 500 million on an annualised basis.
- Intentia signed 16 new customers during the quarter, and license
orders received increased 18 per cent year-over-year.
- Intentia received SEK 365 million in new equity and long-term
debt capital, strengthening liquidity and the balance sheet.
Third Quarter 2004 Earnings Highlights
2004 2003 Change
Net revenue 581 601 -3%
of which license revenue 169 181 -7%
Operating earnings -314 -82 n.m. (NOTE A)
Profit/loss for the period -310 -74 n.m. (NOTE A)
Earnings per share (SEK) -2.0 -0.8 n.m. (NOTE A)
Cash flow from operating activities -82 -42 n.m. (NOTE A)
Cash flow from investing activities -16 -42 n.m. (NOTE A)
(NOTE A) not meaningful
The results reflect the implementation of corporate streamlining
measures announced in July to reduce the cost base and establish a
strong foundation for future operating profitability. These measures
resulted in nonrecurring charges of SEK 260 million, in line with
previous estimates. Operating earnings were SEK -314 million,
compared to SEK -82 million in last year's third quarter. The net
loss for the quarter was SEK -310 million, compared to SEK -74
million in the third quarter of 2003.
License revenue decreased 7 per cent in the quarter compared to
the same period of 2003. Service revenue continued to stabilise,
increasing by SEK 1 million to SEK 404 million. Net of nonrecurring
charges, Intentia's operating earnings improved by approximately SEK
20 million compared to the prior year period.
The total annualised reduction in service cost and indirect
expenses, including measures taken since the second half of 2003, is
estimated at almost SEK 500 million.
Head count was reduced by 234 people during the third quarter to
2,475, a 19 per cent reduction compared to September 30, 2003, and an
additional 106 persons were under termination notices.
"Intentia's results reflect the implementation of the corporate
streamlining program announced in July," noted CEO Bertrand Sciard.
"We are making a sharp reduction in our cost base that is setting the
stage for sustained operating profitability, beginning in the fourth
quarter. Our marketing and product development is more focused. All
of our initiatives are on track and will produce significant benefits
for the company's market position and shareholder value in the
Intentia signed 16 new customers during the quarter
The Northern Europe, Southern Europe, and Asia and Australia/New
Zealand regions were noteworthy in generating new customers. New
customers include: Atria (Northern Europe), Confiseur Läderach
(Central Europe), Baxi (Northwestern Europe), Fenwick (Southern
Europe), Colony Liquor (The Americas), and GWA International (Asia
and Australia/New Zealand).
Results dominated by effects of corporate streamlining
License orders received reached SEK 118 million, 18 per cent above
the third quarter of 2003. The closing order backlog was SEK 493
million, an increase of SEK 12 million compared to the same quarter
of last year.
Net revenue in the quarter reached SEK 581 million, down from SEK
601 million in third quarter of 2003. Service costs and indirect
expenses, net of nonrecurring charges, fell by 7 per cent to SEK 613
million from SEK 661 million in the third quarter of 2003. This
reflects both the streamlining measures implemented during the
quarter and earlier head count reductions.
Financial position remains strong
During the quarter, Intentia received, net after expenses, SEK 365
million from Tennenbaum Capital Partners: SEK 168 million in new
equity and SEK 197 million in a five-year term loan. This fresh
capital, in addition to the SEK 248 million in equity capital raised
in the first quarter, compensated for the nonrecurring charges and
the operating losses incurred as the new business plan is being put
The equity/assets ratio decreased to 33 per cent as of September
30, 2004 compared to 38 per cent 12 months earlier.
Liquidity was SEK 479 million, compared to SEK 332 million in the
prior year period, while interest bearing liabilities including
convertible notes were SEK 321 million, compared to SEK 386 million
one year ago.
CEO Bertrand Sciard concluded, "The cost structure is improving
rapidly as a result of completed and planned measures. Intentia
expects to record an operating profit during the fourth quarter of
2004. Our organisation is undergoing significant changes and we are
now on the path to an intelligent future."
The full report including tables can be downloaded from the
following link: http://hugin.info/1103/R/965854/140251.pdf
ots Originaltext: Intentia International AB
Im Internet recherchierbar: http://www.newsaktuell.ch
Bertrand Sciard, Chief Executive Officer, Intentia International AB,
Telephone: +46-8-5552-5757, Fax: +46-8-5552-5999, Cell phone:
+46-733-27-5757, e-Mail: email@example.com
. Hakan Gyrulf,
Chief Financial Officer, Intentia International AB, Telephone:
+46-8-5552-5825, Fax: +46-8-5552-5999, Cell phone: +46-733-27-5825,