SOLNA, Sweden, Feb. 21, 2002 (PRIMEZONE) -- Frontec:
The Extraordinary General Meeting on June 25, 2001 decided to extend the fiscal year to comprise the period July 1, 2000 - December 31, 2001 and that the fiscal year thereafter would be the calendar year. This report covers the quarter October 1, 2001 - December 31, 2001, the twelve-month period January 1, 2001- December 31, 2001 and the fiscal year July 1, 2000 - December 31, 2001.
-- The Group's net sales for the quarter amounted to SEK 238 million
(274, for comparable units(1) 253).
-- The Group's operating loss after goodwill amortization for the
quarter amounted to SEK -82 million (-36, for comparable
units -34).
-- An action program affecting 114 employees was implemented during
quarter. As a result the Group's operating loss after goodwill
amortization for the quarter includes restructuring expenses of
SEK 45 million.
-- The Group's loss after net financial items for the quarter was
SEK -80 million (-31, for comparable units -29).
-- Frontec eBusiness' net sales for the quarter amounted to SEK 135
million (161), with an operating loss after goodwill amortization
of SEK -45 million (2). The result includes restructuring
expenses of SEK 26 million.
-- BlueLabs' net sales for the quarter amounted to SEK 80 million
(76), with an operating profit after goodwill amortization of SEK
-9 million (6). The result includes restructuring expenses of SEK
13 million.
-- Venture Zone's net sales for the quarter amounted to SEK 31
million (63, for comparable units 35), with an operating loss
after goodwill amortization of SEK -6 million (-4, for comparable
units -2). The result includes restructuring expenses of SEK 3
million.
(1) The figures for comparable units have been adjusted for the
divestments of FRT and FSO (Venture Zone).
The Group in Brief
Frontec's restructuring process and focus on its core businesses, eBusiness and BlueLabs, has continued. The previously announced action program has been implemented and 114 employees will gradually leave the company.
Due to market weakness, net sales for comparable units declined by six percent during the quarter. Profitability was negatively affected by the expenses for the action program, but was also due to the market situation.
Economic conditions are still uncertain, which is negatively affecting demand. Several clients have postponed major projects. As a result, there is overcapacity in the market, which has kept price pressure on traditional development projects. Demand for expert competence is still good, however, with only a marginal change in the price picture.
The Group's liquid assets, including short-term investments, amounted to SEK 113 million (41) at the end of the period.
In summary, it was a quarter of continued restructuring and adjustment to the current market situation.
Sales and Results
The Quarter October-December 2001
The Group's net sales for the quarter amounted to SEK 238 million (274, for comparable units 1) 253). The operating loss after goodwill amortization for the quarter amounted to SEK -82 million (-36, for comparable units -34). The operating loss includes restructuring expenses of SEK 45 million. The loss after net financial items was SEK - 80 million (-31, for comparable units -29).
The Twelve-Month Period January-December 2001
The Group's net sales for the twelve-month period amounted to SEK 928 million (1,013, for comparable units 913). The operating loss after goodwill amortization was SEK -105 million (-85, for comparable units - 113). The operating loss includes restructuring expenses of SEK 46 million. The loss after net financial items was SEK -108 million (-136, for comparable units -124).
Annual General Meeting May 15, 2002 Wednesday, May 15 at 3:00 p.m. (CET) SAS Headquarters in Frosundavik Frosundaviks Alle 1 Solna
The Annual Report will be published in mid-April and sent to shareholders upon request.
Interim report January-March 2002 May 15, 2002 Interim report April-June 2002 August 21, 2002 Interim report July-September 2002 November 20, 2002
Invitation to analyst meeting: Frontec cordially invites analysts and the media to meet with CEO Per Tjernberg and CFO Bjorn Sandberg at 8:00 a.m. Swedish time on Friday, February 22 at Operaterassen.
Register at hearings@financialhearings.com or www.financialhearings.com
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www.waymaker.net/bitonline/2002/02/21/20020221BIT00560/bit0001.doc The Full Year-End Report www.waymaker.net/bitonline/2002/02/21/20020221BIT00560/bit0001.pdf The Full Year-End Report