STOCKHOLM, Sweden, April 25, 2003 (PRIMEZONE) -- Framfab AB (publ):
- Net revenue for January-March was SEK 72.6 million (107.9). Costs declined by SEK 38.4 from the first quarter of 2002 and SEK 4.0 million from the previous quarter. Earnings after financial items amounted to SEK -3.4 million (-6.4). Earnings per share was -0.01 SEK (-0.01).
- Both the sector and Framfab are still being affected by wariness among clients when it comes to investing in Internet consulting services. Given the current state of the market, clients are postponing investment decisions on e-media projects, which has an obvious impact on Framfabs sales. Framfab continued to maintain our strong market and customer relationship.
- Assuming that the market does not experience a new decline, second quarter cash flow is expected to improve considerably to be close to zero. Cash flow for the period was SEK -25,9 million, SEK -3.5 million of which stemmed from restructuring costs. SEK 11.6 million in trade accounts receivable due during the first quarter was paid in the first week of April.
- Framfab has entered into a preliminary agreement to divest its entire stake in B2 Bredband AB for SEK 14.5 million, affecting second quarter financial costs by SEK -35.5 million. Expectations are that the final agreement will be completed within the next few weeks.
- Despite market conditions, Framfab obtained initial contracts with several big international firms during the first quarter. Among them were Europes largest insurance company, a German carmaker, a Swedish engineering group, a large Dutch company in facility management and one of the biggest insurance companies in the United States. While holding onto big clients and attracting new ones, Framfab maintained its position as Europe's second largest pure Internet consulting company.
- Framfab has implemented measures in Malmo and Stockholm, for which first quarter losses basically accounted for the Group's total losses. During the second quarter, the Malmo office will be restructured under the leadership of the current Danish CEO. The Stockholm office will be streamlined.
- The board does expect to see industry consolidations and Framfab contiunous to examine strategic alternatives. Considering the current state of the business cycle, the board does not expect the market to improve quickly. As a result, the company is reviewing its medium-term financial capacity. Assuming that the market does not decline further, the company's second quarter cash flow is expected to improve considerably to be close to zero.
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Framfab is a leading provider of consulting services and business solutions based on Internet technology. Most of Framfab's customers are big international companies, including 3M, AXA, the Coca-Cola Company, Danske Bank, Electrolux, Ericsson, Hydro Texaco, IKEA, Kellogg's, Maersk Sealand, NEC Packard-Bell, Nike, Observer, Postbank, SAAB, Volvo Car Corporation and UBS. Framfab operates in Denmark, Germany, the Netherlands and Sweden. The company is quoted on the O list of the Stockholm Stock Exchange (ticker symbol FRAM). For more information, please visit www.framfab.com.
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The full report