STOCKHOLM, Sweden, Oct. 25, 2002 (PRIMEZONE) -- ReadSoft:
- The turnover for the first nine months was 196.9 (204.7) MSEK
- Results after interest income for the first nine months was - 39.1 (-72.1) MSEK
- The turnover for the third quarter was 59.3 (59.8) MSEK
- Results after interest income for the third quarter was -21.9 (- 33.1) MSEK
- A cost savings program was decided on to decrease costs by 28 (- 36) MSEK a year
- Liquidity was 35.6 (47.5) MSEK including unused committed credit line
- Licenses were sold to e.g. Ebel Cosmetics, Judicial Systems and DFDS Transport
- ReadSoft signed a partner agreement with IBS
Important Events During The Third Quarter of 2002
The largest deal so far during 2002 was signed by ReadSoft Chile. Ebel Cosmetics, a Latin American supplier of cosmetics, will use FORMS to automate the processing of large quantities of order forms in eleven Latin American countries. The two-year project is worth approximately US $1.5 M to ReadSoft.
Apart from this large deal, ReadSoft won a number of important FORMS contracts. Some were made in collaboration with strategic partners like Judicial Systems Inc. focusing on implementing the software in the American court system. A number of installations have already been carried out in the US and more will follow.
During the quarter ReadSoft signed an agreement with yet another Swedish ERP provider, IBS. IBS is the latest strategic partner to integrate INVOICES with their own offering. IBS will sell INVOICES as a part of their business solution IBS Attest.
The Danish Transportation Company DFDS Transport has used ReadSoft's software FORMS for several years to automate the handling of consignment notes. Now DFDS accelerates their automatic document capture strategy by implementing INVOICES to automatically process their invoices. The order value is US $400,000.
A cost savings program was decided on during the quarter. The measures include a staff reduction of 45-50 employees, some 20 of them in Sweden. Lowered personnel costs and other measures will save 7-9 MSEK each quarter, starting next year. The costs for the savings program will amount to approximately 4-6 MSEK, which will burden the fourth quarter of this year.
Turnover And Results During The Third Quarter of 2002
During the quarter, the revenue amounted to 59.3 (59.8) MSEK. Results after interest income for the period was -21.9 (-33.1) MSEK. The operating margin for the quarter was -36.9 (- 55.4) percent. The result has been affected due to exchange rate losses amounting to -2.5 (1.2) MSEK.
In Scandinavia the sales totaled 20.5 (16.8) MSEK, an increase with 22 percent compared to the same period year 2001. The company's sales in the remaining part of Europe amounted to 28.5(28.3) MSEK and in the U.S. and the rest of the world the sales amounted to 10.3 (14.7) MSEK.
The license revenue, consisting of one-time payments for the right to use our software, amounted to 19.0 (20.3) MSEK during the third quarter, which is 32 (34) percent of the total revenue. Out of the total license revenue for the third quarter, FORMS represented 56 (63) percent and INVOICES 44 (37) percent.
Service fees (annual proceeds from service agreements) amounted to 16.4 (14.6) MSEK. In addition, revenues for training and customer-specific development were 10.2 (10.8) MSEK. Hardware sales (mainly scanners) amounted to 11.9 (8.4) MSEK. Other revenues totaled 1.8 (5.7) MSEK.
Turnover And Results January - September
During the first nine months of year 2002, the revenue amounted to 196.9(204.7) MSEK. Results after interest income for the period was - 39.1 (-72.1) MSEK. The operating margin was -19.9 (-35.2) percent. The nine months result has been affected due to exchange rate losses amounting to -5.0 (2.0) MSEK. In Scandinavia the sales totaled 60.1 (51.8) MSEK, an increase with 16 percent compared to the same period year 2001. The company's sales in the remaining part of Europe amounted to 95.0 (103.1) MSEK and in the U.S. and the rest of the world the sales amounted to 41.8 (49.8) MSEK.
The license revenue amounted to 74.8 (87.0) MSEK during the first nine months of year 2002, which is 38(42) percent of the total revenue. Out of the total license revenue, FORMS represented 62 (73) percent and INVOICES 38 (27) percent.
Service fees (annual proceeds from service agreements) amounted to 51.3 (44.6) MSEK. In addition, revenues for training and customer-specific development were 33.0 (28.0) MSEK. Hardware sales (mainly scanners) amounted to 30.7 (31.2) MSEK. Other revenues totaled 7.1 (13.1) MSEK.
Staff
As of September 30, 2002, the ReadSoft staff amounted to 294 (348), a decrease by 18 percent compared to the situation before the cost savings program carried out in 2001.
Investments
Investments during the first nine months amounted to 2.7 (11.4) MSEK and consisted of the acquisition of computer-, office- and event related equipment. Investments during the third quarter amounted to 1.2(2.8) MSEK.
Of the research and development costs during the first nine months, 8.2 (0) MSEK was capitalized in accordance with Redovisningsradet's recommendation no. 15. Of that amount, 2.7 (0) MSEK was capitalized in the third quarter.
ReadSoft business is based on the concept of e-capture, comprising capture, interpretation, verification, validation, and transfer of all types of information from e-mail, web, fax, and paper, with a minimum of operator intervention. Established in 1991, ReadSoft, first with free form technology for invoices and color document processing, has become the global technology leader, with subsidiaries in 12 countries and partners in an additional 70. We are proud to have the largest and most innovative development department in the industry, with professional services to match. For more information please visit www.readsoft.com
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