For Q4/04 SuperOffice presents record figures in all areas. Both revenues, profit, margins and the number of licenses sold are the best in the history of the company. Total operating revenues ended at MNOK 64,3 compared to MNOK 57,9 in Q4/03. EBIT was MNOK 19,1 compared to MNOK 15,4 in Q4/03. This equals a growth in revenues of 11,0% and an EBIT improvement of 24,3% compared to the same period last year. Pre-tax profit for the quarter was MNOK 19,5 (15,1), equal to a profit margin of 30,4%.

Total operating revenues for 2004 was MNOK 225,6 (198,7) with an EBIT of MNOK 52,4 (33,2), equal to an EBIT margin of 23,2%. Pre-tax profit for the year was 53,2 (32,5).

Comments to the operation

The company is very pleased with the development in Q4/04. The only small disappointment is that Benelux and Denmark are not able to show growth in the quarter, but both are expected to come back stronger in 2005. For the year in total all subsidiaries show growth, with especially strong growth figures in Sweden, Germany and UK. The company’s cash balance was MNOK 88,0 at the end of the year, representing an increase of MNOK 44,7 compared to the same period last year.

SuperOffice has received MNOK 1,6 from the governmental “Skattefunnordning” for research activities in 2003 and 2004. These funds reduce other operating expenses, which is the reason for the decrease compared to the same period in 2003. For 2005 the company expects funds of MNOK 0,8. Under IFRS such funds will be booked as revenues.

After the company launched the new CRM platform in Q3/04, both customers and partners have shown a growing interest for integration and customization projects. The company is currently in discussions with system integrators in several markets and expects to sign new partner agreements in the time to come.

The partnership with SAP is developing very positively and several customer contracts are already signed. For Q1/05 an aggressive activity plan is defined, with a joint partner kick-off and joint seminars in 9 cities in Norway.

The co-operation with the OEM partner Bilinfo in Denmark also shows a positive development. After the solution was introduced in December 2004, contracts have been signed with more than 40 Danish car dealers. The company is expecting a continued positive development in 2005.

The DATEV agreement is developing according to plan, but as mentioned earlier it will take some time before this partnership starts to show results. 

The co-operation with IBM will continue to be important for the company. In 2005 the company will expand the partnership to also include Germany, Benelux and UK.

In January, the company acquired 100% of the shares in the Swiss CRM company Team Brendel AG. The company is the leading CRM vendor in Switzerland and has a solid presence in the German SME market. In 2004 the company reached total revenues of CHF 4,0 million. About 60% of total revenues are generated in the Swiss market and the rest in the German market. Through this acquisition, SuperOffice strengthens its presence and distribution in Germany and becomes the leading CRM vendor in the Swiss market with a 100% owned subsidiary. Team Brendel has 550 corporate customers in Germany and Switzerland. The transaction is subject to final due diligence. SuperOffice has agreed to pay CHF 3,0 to 4,0 million in cash for 100% of the shares in Team Brendel AG, depending on adjustments for working capital and an earn-out element for the years 2005, 2006 and 2007. SuperOffice will provide more information related to expected revenues from Team Brendel as part of the financial statement for Q1/05.

Future expectations

SuperOffice ASA has during the 8 last quarters showed a positive development in both revenues and profit.

During 2005 the company will release two new solutions:

• SuperOffice Handshake, a web-based solution which provides external users (customers, partners, prospects, etc.) access to relevant information in the SuperOffice CRM solution. SuperOffice Handshake, which will be marketed as an extension to SuperOffice CRM, will be introduced towards the end of Q1/05. The main target group is existing customers, but the product will of course also be offered as a part of the SuperOffice CRM solutions to new customers.
• A new version of SuperOffice CRM will be launched towards the end of 2005. This version represents is a major upgrade in both user interface and functionality and is expected to strengthen the company’s position as a leading CRM vendor for medium-sized companies.

Securing the release of these new products in 2005 is strategically important for the company. In order to reach this goal the company’s R&D team in Oslo is strengthened by 3 additional persons.

In order to secure future growth the company has also decided to strengthen the sales teams. During the last two years the number of sales people has shown a small decrease and it is now time to start a careful recruitment process. New salespeople are going through an effective education process but it will still take some time before they are up to speed on generating new business.

The company has relatively positive expectations to the CRM market development in 2005. Still, hard and long term work will be needed to close contracts. In the time to come the company will remain focused on increasing license revenues as well as on establishing new system integrator partnerships in all markets.

The board of directors will suggest to the ordinary general meeting to pay extraordinary dividends of NOK 3,00 per share for 2004.

The quarterly financial statement is presented according to NRS 11. The same principles as in the annual financial statement are used in the quarterly report.

SuperOffice Presentation Q4 2004

SuperOffice Financial Statements Q4 2004