Helsinki, 2016-04-25 16:15 CEST (GLOBE NEWSWIRE) -- Digia Plc Stock Exchange Release 25 April 2016 at 17:15
DIGIA PLC PROFIT WARNING: THE COMPANY ESTIMATES THAT THE GROWTH OF THE QT BUSINESS WILL EXCEED THE PREVIOUS FORECAST AND IT WILL POST A SMALLER LOSS
Digia corrects its earlier estimate of the growth and profitability of the Qt business.
In its financial statement release for 2015, published on 4 February 2016, the company stated that it “expects to see Qt’s net sales growth in 2016 to be at least in line with the software development tool market growth rate, but growth is likely to slow down from the extremely strong figures recorded last year”. The company estimated that Qt would “record a loss in 2016”.
Digia will publish its interim report for the first quarter of 2016 on 29 April 2016. As advance information on the Qt business, the company announces that Qt’s net sales in Q1/2016 amounted to EUR 7.1 (6.3) million, up 14.3 per cent. Qt’s operating profit in Q1/2016 amounted to EUR 0.3 (0.4) million and its profitability (EBIT-%) was 3.5 (6.9) per cent.
The company estimates that substantial items will be recognised in net sales in the first half of 2016 from large sales made by the company, thanks to which Qt’s net sales in the early part of the year will be significantly higher than the company’s earlier forecast.
With regards to the full year, the company estimates that in 2016 Qt’s net sales will see year-on-year growth of more than 10 per cent and that its operating profit will be in the red due to investments into growth.
Comparisons of the development of Qt’s operating profit in 2016 with the previous year are significantly affected by the recognition of a total of EUR 1.4 million in net sales for the company in 2015 based on an exceptional licensing deal made with Nokia Corporation in 2012. In 2016, net sales will no longer be recognised from this deal. In addition, in 2015 Qt benefited substantially from the strengthening of the US dollar against the euro. In 2015, the effect of exchange rate changes on Qt’s net sales growth amounted to a total of EUR 1.3 million, whereas in Q1/2016 this only amounted to EUR 0.05 million.
In addition, when making forecasts about the Qt business, it must be taken into account that the long lead times of agreements in the large customer market – as long as 18 months – can result in substantial variation in quarterly net sales and particularly profitability.
Digia Plc
Board of Directors
FURTHER INFORMATION
Juha Varelius, President and CEO
Tel. +358 10 313 3000
DISTRIBUTION
NASDAQ Helsinki
Key media
www.digia.com