QPR SOFTWARE STOCK EXCHANGE RELEASE, AUGUST 2, 2018 AT 9.00 AM
QPR SOFTWARE HALF-YEAR FINANCIAL REPORT JANUARY – JUNE 2018
Net sales and cash flow from operating activities increased
April - June 2018
- Net sales increased 3% to EUR 2,272 thousand (2017: 2,198).
- Recurring revenue 54% of net sales (51).
- Operating result EUR -118 thousand (-99).
- Operating margin -5.2% (-4.5).
- Cash flow from operating activities EUR 142 thousand (-66).
- Result before taxes EUR -117 thousand (-113).
- Result for the quarter EUR -85 thousand (-86).
- Earnings per share EUR -0.007 (-0.007).
January – June 2018
- Net sales increased 3% to EUR 5,154 thousand (2017: 5,011).
- Recurring revenue 56% of net sales (54).
- Operating result EUR 282 thousand (388).
- Operating margin 5.5% (7.8).
- Cash flow from operating activities EUR 1,739 thousand (1,649).
- Result before tax EUR 94 thousand (364).
- Result for the period EUR 40 thousand (279).
- Earnings per share EUR 0.003 (0.023).
- Outlook for 2018 remains unchanged, but QPR further defines its expectations for net sales growth in the remainder of 2018. Net sales growth is expected to accelerate from growth level achieved in January – June. The estimate is based on orders received and contracts made after the reporting period in July, as well as current amount of offers made to prospects.
QPR Software´s mission is to make customers agile and efficient in their operations. We innovate, develop, and sell software aimed at analyzing, monitoring, and modeling operations in organizations. Furthermore, we offer customers a variety of consulting services.
Operating environment and market outlook
In recent years, QPR Software has invested heavily in developing the company´s new process mining software, as well as renewing all user interfaces of its software products. The company estimates that the demand for process mining software and related services will continue to grow in 2018. Growth focus is on Europe, even though the demand for process mining software, especially in large organizations, is also growing strong outside Europe. Due to the current early market stage, country specific differences in demand will continue to be significant.
In developed markets, competition in software business for process and enterprise architecture modeling and performance management is expected to remain tight. The company still sees growth potential for these products in emerging markets.
Outlook for 2018
Outlook for 2018 remains unchanged, but QPR further defines its expectations for net sales growth in the remainder of 2018. Net sales growth is expected to accelerate from growth level achieved in January – June. This estimate is based on orders received and contracts made after the reporting period in July, as well as current amount of offers made to prospects. The value of orders received in July is significantly higher than in the previous year.
Previously published outlook for 2018
The Company estimates that its net sales will grow in 2018 (2017: EUR 9,084 million). The growth in net sales will be driven by software business, in particular the process mining software QPR ProcessAnalyzer. Consulting net sales are also expected to grow from previous year.
In 2018, QPR will invest more in its growing business segments and is planning to increase its resources, especially in international sales and marketing. Despite the increase in costs, the company estimates that its operating result will improve from previous year and will exceed 5% of net sales (2017: 0.4% of net sales).