STOCKHOLM, Sweden, August 21, 2002 (PRIMEZONE) -- Sigma AB:
- The operations in Norway and Germany were sold. A unit in Risk Management and one in marketing communications in Denmark were liquidated. The losses of SEK 22.6 M in these units during the first half of the year ceased at midyear. - Sigma have signed a Letter of Intent with Cygate, which is owned by Bure, and is in final stage of negotiations covering sale of Sigma Maldata Network Solutions. Sigma is focusing on consulting services and the net debt is being reduced substantially. - Provision for future costs was made during the second quarter. Excluding a provision of SEK 6.4 M, the EBITA result in the quarter was SEK 0.0 M. (Loss: SEK 10.7 M). - The loss before amortization of goodwill (EBITA) amounted to SEK 11.4 M (Profit: 13.7). The loss after financial items amounted to SEK 55.5 M (Loss: 29.2). - The Board of Directors assessment is a positive full-year result (EBITA). Through the sale and discontinuation of loss units, full-year earnings after net financial items will be negative.
Comment on market trend
The market has not changed since the preceding report, with the result that the early part of the year was characterized by great restraint in investing in the IT field. No dramatic change has taken place since the autumn of 2001. There are many assignments in the market but the competition is very difficult. The profile and experience of consultants play a major role in the selection of a supplier. Prices are depressed but stable, and are not the only factor in determining who receives contracts. There is a demand for Sigma's consultants and concepts, and this is a stabilizing factor in the business.
The second quarter a year ago was characterized by the initiation of a total halt in the purchase of consulting services by some large customers. The number of long-term contracts has declined during the current year, which is affecting the workload since there is always a brief period between two assignments for a consultant. The total number of "unassigned" consultants was gradually reduced during the spring and will also be relatively stable following the summer. Sigma has a broad customer base of more than 250 active customers, many of whom are large groups with many different subsidiaries as separate customers. Sales per market segment were distributed as follows: Government and healthcare, 23%; Industry, 19%; Telecom, 16%; Commerce, 14%; Bank and insurance, 9%; IT, 5% and Other, 14%.
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