QPR SOFTWARE STOCK EXCHANGE RELEASE, OCTOBER 25, 2018 AT 9.15 AM
Net sales and operating profit increased from previous year
July – September 2018
- Net sales increased by 13% to EUR 2,222 thousand (2017: 1,966).
- Recurring revenue 58% of net sales (60).
- Operating result EUR 109 thousand (-34).
- Operating margin 4.9% (-1.7).
- Result before taxes EUR 113 thousand (-41).
- Result for the quarter EUR 91 thousand (-32).
- Earnings per share EUR 0.008 (-0.003).
January – September 2018
- Net sales increased by 6% to EUR 7,376 thousand (2017: 6,977).
- Recurring revenue 56% of net sales (55).
- Operating result EUR 391 thousand (354).
- Operating margin 5.3% (5.1).
- Result before tax EUR 207 thousand (323).
- Result for the period EUR 131 thousand (246).
- Earnings per share EUR 0.011 (0.021).
- Outlook for 2018 remains unchanged.
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. 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. QPR estimates that its net sales will grow in 2018 (2017: EUR 9,084 million). In the second half of the year net sales growth accelerates from growth level achieved in January – June.
The growth in net sales will be driven by software business, and especially by the process mining software QPR ProcessAnalyzer. Consulting net sales are also expected to grow from previous year.
In 2018, QPR increases investments in its growing business segments and is planning to increase 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).