Strong license sales
SuperOffice ends it’s ”intermediate year” with Q4 showing the highest license revenues in the history of the company. The company is now well positioned for further growth. For the year, license revenue growth is 16,0%
For Q4/05 total revenues ended at MNOK 66,1 vs. MNOK 64,7 in Q4/04. EBIT was MNOK 15,3 vs. MNOK 19,9 in Q4/04. Result before taxes was MNOK 15,1 (20,3).
For 2005 in total revenues ended at MNOK 249,4 compared to MNOK 227,2 i 2004, equal to a revenue growth of 9,8%. EBIT was MNOK 53,8 (55,7) and result before taxes was MNOK 58,5 (56,6), equal to a solid profit margin of 23,5%.
Comments to the operation
The company’s key areas – revenues from license sales and software maintenance – continue to show growth. As described in earlier financial reports, 2005 has been defined as a ”intermediate year” for the company with an extraordinary high internal activity level. After 2003 and 2004 with a strong focus on profitability, the company entered 2005 with a need for several investments aiming at building continued growth in revenues. The company decided that the defined areas of investments were to be completed within 2005 in order for the company to be well positioned for further growth in 2006 and 2007. The projects and activities which are completed include:
Acquisition in Switzerland – in the beginning of 2005 the company acquired the CRM vendor Team Brendel AG. SuperOffice Team Brendel AG is now fully and positively integrated in the company.
New products – during the year the company has introduced a new version of the company’s main product – SuperOffice SIX – and two new modules. The company’s solution portfolio is with the new products well positioned for creating further growth through sales to new customers, sales through partners and also to existing customers.
Partner program – with the new solution portfolio the company will build new growth through a broader and more competent partner channel. In order to succeed with this strategy the company has totally redefined its partner program and made it more attractive for partners. The new partner program was introduced in the last part of 2005, with very positive response from partners. More about this below.
New employees – during 2005 the company has hired 18 new employees (not including SuperOffice Team Brendel). The new employees are primarily hired in the sales organization, but also the development team is strengthened. The company has also hired new managers in the Norwegian and Danish subsidiaries.
Development of the sales organization – during the year the company has made a substantial improvement of the sales process, including extensive education programs in all subsidiaries. The goals of this process have been to increase competencies in the sales team, adapt the sales organization to new market demands and to increase revenues per head.
Related to the company’s size and resources this has been a demanding process which is completed within 12 months. The company is convinced that this was correct and at the end of 2005 the company is well equipped to build new growth and to take new market shares in the European CRM market.
Partner program
During the quarter SuperOffice has introduced a new partner program. The main goals of this program are to give SuperOffice access to new customers and to improve professional services offering within integration, customization and implementation of larger projects. During the last period the company has entered into several agreements with the solid partners.
The new partner program includes several changes. SuperOffice will increasingly offer parts of the sales organization to partners, with the goal of accessing new customers more effectively. During the roll-out of SuperOffice SIX new and existing partners will be involved to a larger extent than earlier. The goal is that SuperOffice SIX will be implemented in 2.500-3.000 of the company’s existing customers during 2006. In the coming quarters SuperOffice will enter into more agreements with professional system integrators.
New products
As mentioned in earlier reports SuperOffice has launched 3 new products in 2005. These are SuperOffice SIX, SuperOffice SAINT and SuperOffice Audience. SuperOffice SIX has during Q4/05 been implemented in approximately 200 companies as part of the SuperOffice ramp-up program. Feedback from these customers is exclusively positive. The solution includes substantial new functionality and provides new business opportunities both for partners and customers. SuperOffice SAINT, which only works in combination with SuperOffice SIX, has also been well received but is of course depending on the roll-out speed of SuperOffice SIX. SuperOffice Audience has developed positively during the quarter.
The SuperOffice solutions are stronger and more competitive than ever and the company expects that this will drive license revenue growth in 2006, both through additional sales to existing customers and to new customers. The three new products lead to an improved market position and include capabilities which very few competitors can offer in the same cost effective manner.
Changes in group management
In the board meeting on February 16 2006, CEO and Chairman Une Amundsen informed that he due to health reasons will resign from his position as CEO and focus on his role as Chairman of the Board. Managing Director Gisle Jentoft, who has been acting CEO during Une Amundsen’s absence, was in the same Board meeting appointed as new CEO. As Chairman of the Board, Une Amundsen will actively work with structural changes, investor relations, marketing and the company’s internal motivation programs. Within the near future the company will also hire a new CFO.
Future expectations
The company has positive expectations for the coming quarters. During 2006 the following factors will be the foundation for growth in revenues and profits:
Establishment of a larger partner channel in all markets which will provide access to more new customers for the SuperOffice solutions.
Roll-out of SuperOffice SIX to existing customers with opportunities to sell additional licenses and the new products SuperOffice SAINT and Audience.
The company believes the CRM market will develop positively in 2006.
SuperOffice ASA has during the last 3 years shown a positive development in both revenues and profits. The company’s goal is to continue this positive trend.
The Board of Directors will suggest to the ordinary general meeting to pay dividends of NOK 1,00 per share for 2005.
The quarterly financial statement is presented according to IFRS.
The board of Directors of SuperOffice ASA
Oslo, February 17 2006