Also for the operating result SuperOffice continues to demonstrate a strong improvement in EBIT ending at MNOK 16,5 (MNOK 13,8), an increase of 19,6%. The EBIT margin for Q1/07 is 21,7% compared to 20,1% in Q1/06. The export share in the quarter is 74%.
The net positive cash flow from operations ended in Q1/07 at MNOK 112,3 compared to MNOK 95,2 in the same quarter last year. SuperOffice’s financial position is very strong. The Annual General Meeting April 19 approved a dividend of NOK 2.00 per share, equivalent to MNOK 42 in total.
There is a positive development in the market, and the company can report growth within the main business areas.
Comments to the operation
Revenues
SuperOffice’s main business area is revenue from software licenses and software maintenance, and the development in Q1 has been positive. In total the revenues from the sale of new licenses and maintenance has increased by 10,9% compared to the same period in 2006. The total revenues from sale of licenses and maintenance ended in Q1/07 at MNOK 60,2 (MNOK 54,1).
During 2007 SuperOffice will introduce a “software as a service” model. This implies that the software – in addition to traditional license sales – will be available as a service with a monthly fee for each user. The revenues will in such a model be recognised in the same way as maintenance revenues, and the company has on this basis decided to report revenues from licenses and maintenance together. Software as a Service shows a fast growth in the market, and the company considers this as an exiting extension of the means the company distributes SuperOffice licenses.
The revenues from Services and third party sales has increased by 7,4% from Q1/06, and ended at MNOK 15,9 (MNOK 14,8). The increase relates mainly to increased demand for our consultants in several of the foreign entities together with improved utilization of existing consultants.
Operating expenses
Marketing expenses increase following a further focus on external marketing, and other operating expenses increase following a general increased activity level within the group.
The bad debt losses are still on a very low level.
Operating result
EBIT for the quarter ended at MNOK 16,5, representing an EBIT margin of 21,7%. Comparing figures for the same period last year are respectively MNOK 13,8 and 20,1%.
Cash Flow
The net positive cash flow from operations fro Q1 is MNOK 112,3 compared to MNOK 95,2 in the same period in 2006. The Company’s cash flow in Q1 is influenced by the invoicing of maintenance in January of existing customers for 2007. The revenue recognition will be recorded relatively linear during the year.
Balance sheet
The financial position of SuperOffice is still very strong. Please see below for comments to the main balance sheet items.
Accounts receivable are still on a low level, and despite the increase in revenues they are at a lower level than in the same period last year.
SuperOffice increased in January its ownership share in the Austrian company update software AG from 4,8% to 8,2%. The Company is listed on the Deutsche Börse in Frankfurt. There have not been any other changes related to the position related to update software AG.
The liquidity balance at the end of Q1/07 is MNOK 148,7, and relates mainly to cash and bank deposits. As of Q1/07 the Company has no interest bearing debt.
The increase in short term liabilities relates mainly to prepaid maintenance, accrued expenses, value added tax and accrued taxes payable.
Future expectations
There are no changes to SuperOffice’ strategy from what has been communicated earlier. External market analysts still expect the CRM market to grow, and based on the product portfolio SuperOffice will continue to be a leading supplier of CRM solutions in Europe. SuperOffice will continuously consider acquisition of companies which are considered to contribute with added value, improved market position and profitable business to SuperOffice.
As previously discussed the establishment of an extended partner channel is an important part of the company’s strategy in 2007 and the years to come. The strategy relates to all markets, and the strategy has to date contributed positively.
SuperOffice has a positive view on the coming quarters, but the quarterly development might vary depending on in which quarters major contracts are signed.
SuperOffice has during the last 4 years shown a positive development in both revenue and profits, and it is expected that this positive development will continue in 2007.
The quarterly financial statement is presented according to IAS 34 and the accounting principles described in the Annual Report for 2006.
The quarterly report for Q2/07 will be released July 13, 2007.
The Board of Directors of SuperOffice ASA
Oslo, April 19 2007