INTERIM REPORT JANUARY-MARCH 2010

INTERIM REPORT JANUARY-MARCH 2010

Strong start to the year!

January - March 2010
• Net sales of SEK 273.6 (297.6) million.
• Operating profit (EBIT) of SEK 40.5 (44.7) million, operating margin of 14.8
(15.0) percent.
• Pre-tax profit of SEK 39.7 (44.7) million.
• Profit after tax of SEK 28.4 (32.7) million.
• Earnings per share of SEK 0.55 (0.63).
• Cash flow from operations of SEK 12.1 (30.5) million.
• The Annual General Meeting has resolved to distribute SEK 1.10 per share,
totalling SEK 57 million, to the shareholders in the form of a split and a
compulsory redemption procedure. 

Significant events 
• HiQ received an order from the biggest printing group in the Nordic region,
V-TAB, to further develop a control system that handles packing and delivery of
newspapers to end customers. 
• HiQ received an order from Appello to assist in adapting and developing
Wisepilot, Appello's navigation platform for iPhone. 
• HiQ received a new order from the Swedish Defence Material Administration
(FMV). The order, which is worth SEK 14 million, is for maintenance of
simulators to train fighter pilots for JAS 39A Gripen fighter jets. The order
was placed after the end of the period.
• HiQ has received an order from Swedish Motor Insurers to develop a complete IT
system to support insurance operations. The project encompasses the provision of
an end-to-end solution, with an order value of approximately SEK 17 million. The
order was placed after the end of the period.
• HiQ is forming HiQ Finland by merging the two subsidiaries, HiQ Softplan and
HiQ Quality Services. The new company will employ close to 200 people in the
Helsinki area. HiQ Finland's Managing Director is Jukka Rautio.
• HiQ has been named IT Consultant of the Year 2010 based on a survey conducted
by the business journal Veckans Affärer. This is the fourth year in succession
that HiQ has topped the list.
• HiQ was one of the companies nominated for the 2010 Golden Mouse Award in the
IT Company of the Year category. The award is handed out by the publications
Affärsvärlden and Computer Sweden.

2010 in brief
2010 started well for HiQ, with high profitability and a very good financial
position.

Net sales for the first quarter 2010 are SEK 273.6 million and operating profit
SEK 40.5 million, a margin of 14.8 percent. The cash flow from operations is SEK
12.1 million. On 25 March the Annual General Meeting decided on a dividend of
SEK 1.10 per share, totalling around SEK 57 million, in the form of a split and
compulsory redemption procedure.

The beginning of 2010 was characterised by a strong market for IT consulting
services in general and strong demand for HiQ's services. In the first quarter
we created a good platform for growth by, among other things, working with
numerous new clients in a variety of sectors. This implies that HiQ today needs
to recruit new employees throughout the Group.

HiQ is experiencing strong development in all geographic markets, but with
certain differences. The restructuring that has been under way among mobile
phone manufacturers is creating challenges, while the automotive industry is now
developing well. In sectors such as finance, retail, media and areas such as
entertainment and multimedia, we are seeing a strong demand and there is good
development potential for HiQ. 

HiQ has seen excellent development in the first part of the year in Sweden. In
central Sweden, through the offices in Stockholm, Arboga/Västerås and Linköping,
HiQ has experienced good growth and recruitment is needed to meet the demand in
the market.

HiQ's operation in the west of Sweden is currently experiencing very strong
development and is equipped for growth in 2010.
 
In southern Sweden there is still some uncertainty surrounding the telecoms
market, which is affecting HiQ's business in Skåne and Karlskrona. HiQ has
developed very well, however, and has enjoyed good profitability in this region.

The creation of HiQ Öresund has been a success in the terms of intensified sales
initiatives and greater cooperation. Profitability within HiQ's Danish operation
improved in the first quarter.

In Finland HiQ is continuing to successfully expand its client base and develop
the business. By forming HiQ Finland, HiQ has created a strong company that
employs close to 200 people in the Helsinki region.

HiQ offers a flexible delivery model with a customised offering. We offer
specialist expertise for projects at the client's site and we conduct projects
at our own facilities and through our development centre in Russia. Demand
continued to grow in 2010 for projects that combine specialist expertise at the
client's site with near-shore development (i.e. in Russia).

HiQ is distinguished by clearly communicated values - results, responsibility,
simplicity and enjoyment. These values guarantee the quality of HiQ's work and
therefore ensure client and employee satisfaction.  Having clear values helps
both the company and employees to develop in a better way. Our values constitute
a crucial competitive advantage - for us and our clients.

HiQ was named IT Consultant of the Year 2010 in the magazine Veckans Affärer's
annual survey of buyers of consulting services. This is the fourth year in
succession that HiQ has topped the list. HiQ was also one of three companies
nominated for the Golden Mouse Award in the IT Company of the Year category in
2010, an award handed out by the magazines Affärsvärlden and Computer Sweden.  

For further information, please contact:

Lars Stugemo, President and CEO, HiQ
Tel. +46 (0)8-588 90 000

Annika Billberg, Head of Corporate Communications and Investor Relations, HiQ 
Tel. +46(0)8-588 90 015, +46 (0)704-200 103.


HiQ International AB (publ) company registration no. 556529-3205
Mäster Samuelsgatan 17, 9th floor
Box 7421
103 91 STOCKHOLM
Tel.: +46 (0)8-588 90 000
Fax: +46 (0)8-588 90 001
www.hiq.se