HELSINKI, Finland, August 14, 2003 (PRIMEZONE) -- Proha Plc Stock Exchange Bulletin:
- The Proha Group's net sales for January 1- June 30, 2003 were EUR 40.2 million (EUR 42.0 million for January 1-June 30,2002).
- Earnings before goodwill amortization (EBITA) and non-recurring charges were EUR -1.3 (-0.8) million. Non-recurring charges were EUR 0.7 million.
- On June 30, 2003, the Group's cash and cash equivalents amounted to EUR 8.7 (5.7) million. Loans were repaid by EUR 2.3 million during the period.
- In the United States and Finland business developed weaker than expected. In other areas business developed as anticipated.
- Third quarter earnings (EBITA) are expected to be negative. Net sales for the financial year 2003 are anticipated to be over EUR 85 million and result (EBITA) before possible one-time reorganization expenses is expected to be positive.
- Artemis 7 and Artemis Views 7 product releases have succeeded as planned and they are anticipated to have a positive impact on the net sales and result from the fourth quarter onward.
THE FIRST HALF IN BRIEF
Business developed unevenly in different parts of the world. Net sales decreased in the United States especially because of the decline in the consultancy business. Software sales slowed down significantly during the Iraqi crisis, but recovered near their normal level later. Deceleration of investments caused by the economic climate also affected the net sales in Finland. The fear of Sars epidemic temporarily halted the consultancy business in Singapore and Hong Kong. In Europe and Japan, business continued to develop favorably. The significance of public sector customers increased.
In the first half of 2003, approximately 70% of the Group's net sales originated from outside the euro area. The appreciation of the euro compared to the first half of 2002 decreases the euro denominated net sales of Proha. However, it does not significantly affect the profitability of the Group.
In line with its strategy, Proha focuses on the international portfolio and project management software business. Through its subsidiary Artemis Proha is a global market leader in enterprise project and portfolio management solutions.
During the first half of 2003, the Group sold approximately 37,000 (49,000) new Artemis end-user licenses. The total number of Artemis licenses sold worldwide is approximately 535,000. The markets for portfolio management software opened also in Germany and Japan during the period.
NET SALES AND RESULT
In the first half, especially in the second quarter of 2003 both the Group's net sales and result developed unfavorably. In the United States, the decline in the consultancy business decreased net sales due to the uncertainty of the economic situation and the pause in investments brought by the crisis in Iraq. In Finland, IT investments were postponed due to the economic situation. Elsewhere in Europe and in Japan business developed favorably in spite of the general economic situation. In Norway, business focusing on offshore and oil and gas industries continued to develop positively. In the period, the Group's net sales amounted to EUR 40.2 (42.0) million, which was EUR -1.8 million less than in 2002. Earnings before goodwill amortization (EBITA) were EUR -2.0 (-0.8) million including EUR 0.7 million of non-recurring charges that were caused by termination of employment.
In the interim report for the corresponding period in 2002, Dovre International AS (Dovre) was consolidated as an associated company. For the first half of 2003, Dovre has been consolidated as a subsidiary. Accountor Oy is included in the net sales for the corresponding period in 2002 as the company was sold in November 2002. In the table below, the net sales for January 1-June 30, 2002 have been adjusted to be comparable with the net sales for the first half of 2003 (EUR million).
For more information please contact: PROHA PLC CEO Pekka Pere, tel. +358 20 4362 000 pekka.pere@proha.com www.proha.com
DISTRIBUTION: Helsinki Stock Exchange Major Media
This information was brought to you by Waymaker http://www.waymaker.net
The full report is available for download:
http://www.waymaker.net/bitonline/2003/08/14/20030814BIT00080/wkr0001.doc
http://www.waymaker.net/bitonline/2003/08/14/20030814BIT00080/wkr0002.pdf