Earnings per share up 33%
Summary for January-March 2017
· Net sales SEK 192 M (157)
· Profit before tax SEK 24,4 M (18,0)
· Operating margin 13,7 % (12,4)
· Earnings per share before dilution SEK 0,64 (0,48)
· Cash flow from operations SEK 98,8 M (84,0)
· Vitec is traded on Mid Cap Nasdaq Stockholm
The year starts with a positive trend, for the first quarter cash flow as well as earnings and sales increases, making the quarter the historically strongest first quarter.
No major events for the first quarter, the period has been characterized by daily work with deliveries, development, sales and a continuous pursuit of increased efficiency. With Vitec's niche-oriented operations, in relatively mature markets, demand is both long-term and sustainable. In such markets, efficiency and focus are key prerequisites for good and increasing profitability. We rarely face major unexpected changes in the market, which also means that the company's development is largely in our own hands. Therefore, focus and efficiency will always remain key issues in the business.
The operating margin is for the quarter below our target of fifteen percent, but the trend is currently positive and the target for the operating margin is intact.
The number of active acquisition dialogues remains high, and we continuously put resources in place to maintain and further develop these dialogues. Vitec's financial position and readiness for future acquisitions are good, and we see good conditions for continued acquisition-based growth.
A clear shift from traditional license sales to subscription of cloud-based systems reduces reliance on individual license sales, which increases our long-term ability to control our business. This, together with our people's capacity to innovate and integrate acquisitions, provides good conditions for long-term development of our business. With the acquisition of well-established companies and a high proportion of recurring revenues, Vitec continues the path to act in several independent and specialized niches to achieve sustainable profitable growth.
Lars Stenlund, CEO
For more information, please contact
Patrik Fransson, Investor Relations
This information is of such a kind that Vitec Software Group AB (publ.) is legally required to disclose pursuant to the EU's Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication at 13:00 CET on Tuesday, April 25, 2017.