STOCKHOLM, Sweden, Jan. 11, 2002 (PRIMEZONE) -- Frango estimates that its revenues for 2001 will amount to around SEK 265 million, corresponding to a growth of about 35 per cent. According to an earlier forecast issued in connection with the Q3 interim report, revenues were expected to grow by approximately 40 per cent for 2001, whilst the profit margin was expected to be around 10 per cent. Above all, revenues from license sales have failed to meet expectations, whilst revenues for services have continued to show strong growth in line with the earlier forecast. The generally poor economic development combined with growing concern following the terrorist attacks in New York in September have had a significant impact on license sales, causing customers to postpone or delay their software investments. This trend was most noticeable in September and October, although a certain recovery was noted towards the end of the year. As a result, it is expected that the rate of growth for the final quarter of 2001 will be higher than that reported for the third quarter.
The decline in license sales will have an impact on the company's earnings, and consequently, earnings net of financial items will not reach forecast levels. It is estimated that preliminary earnings net of financial items for 2001 will amount to around SEK 15 million. This represents an increase of 70 per cent compared to the previous year.
A complete year-end report will be issued on January 24, 2002.
Frango in brief Frango is a leading software company that specializes in the field of corporate financial management and control for organizations and groups. The company develops and supplies software and services through its international network of subsidiary companies and distributors. Frango is headquartered in Stockholm. The Frango share is quoted on the 'O' list of the Stockholm Stock Exchange (Stockholmsborsen).
For more information about the company, visit Frango's web site at http://www.frango.com
For further information, please contact: Magnus Larsson, Managing Director and CEO, tel. +46 (0)8 555 775 00. Karl Ove Gronqvist, CFO, tel. +46 (0)8 555 775 00.
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