The turnover in Q3/06 ended at MNOK 61,6 compared to MNOK 54,4 in Q3/05. The EBIT is MNOK 14,7 compared to MNOK 11,0 in Q3/05. This represents an EBIT margin of 23,1% in Q3/06 compared to 20,2% in Q3/05. Year to date the turnover is MNOK 195,5 compared to MNOK 183,3 in the same period last year. Reported EBIT to date amounts to MNOK 39,4 to 38,5 in the same period last year. The growth relates to organic growth and the Company enters more frequently into new major agreements than previously experienced.
The Company has this year strengthened the organisation, and together with increased marketing efforts the Company’s total operating expenses are higher than in 2005.
Comments to the operation
The quarter is as usual influenced by the holiday season, and the turnover is therefore considerably higher than in the months of holiday July and August. Compared to Q3/05 there is a double digit growth (24%) in the number of new licenses sold.
The Company has in Q3/06 reorganised the operations in SuperOffice Team Brendel in Switzerland. Over time a positive development is expected in the subsidiary in Switzerland.
The implementation of SuperOffice 6 has continued in Q3/06. The new solutions SuperOffice SAINT and Audience contributes positively, especially in connection with new major projects.
As discussed in previous reports it is the strategy of the Company to focus on a broader and more competent partner channel. SuperOffice involves increasingly its partners in the implementation of the Company’s CRM solutions. The consequence is that the Company’s own service revenues decrease, but the reduction is compensated by increased interest for SuperOffice solutions with its partners.
Revenue split
As previous discussed the number of licenses sold in Q3/06 has increased by 24% compared to Q3/05. Licence revenues in Q3/06 increased by 18% compared to Q3/05, and the total license revenues to date show an increase of 10% compared to the same period last year. Maintenance revenue continues the positive development with an increase of 17% from Q3/05. As previously discussed service revenues decrease mainly due to increased focus on the partner channel.
Future expectations
Based on the development in Q3 2006 the Company has positive expectations for the year in total and the future. The Company believes that the CRM market will develop positively in the time to come, and all entities within the Group are working continuously so that SuperOffice will be the preferred supplier of CRM solutions in Europe.
The Company continues the focus on the establishment of an extended partner channel in all markets. This will give access to more new customers and increased sales of the Company’s solutions. The roll-out of SuperOffice 6 to existing customers with opportunities to sell additional licences, together with the new products SuperOffice SAINT and Audience, continues as planed.
SuperOffice ASA has during the last 3 years shown a positive development in both revenue and profits, and the goal is to continue this trend.
The quarterly financial statement is presented according to IAS 34 and the accounting principles described in the Annual Report for 2005.
The Board of Directors of SuperOffice ASA
Oslo, October 12 2006