QPR SOFTWARE PLC STOCK EXCHANGE RELEASE APRIL 27, 2017 AT 9.30 AM
INTERIM REPORT JANUARY – MARCH 2017
Summary first quarter 2017
- Net sales EUR 2,307 thousand (2016: 2,042). Net sales increased 13% due to strong growth in software license sales (+159%).
- Operating profit EUR 276 thousand (-105).
- Operating margin was 12% (-5).
- Cash flow from operating activities EUR 1,715 thousand (1,230).
- Profit before taxes EUR 265 thousand (-123).
- Profit for the quarter EUR 153 thousand (-105).
- Earnings per share EUR 0.013 (-0.009).
QPR Software focuses on providing organizations software and professional services for strategy execution, performance and process management, process mining and enterprise architecture. Our software and services are used in over 50 countries. The Company offers its customers insight to their business operations through modeling, analysis and performance monitoring. This insight enables customers to streamline and improve operations and to execute their strategies swiftly and effectively.
Operating environment and market outlook
We estimate the growth of process mining software and related services to accelerate compared to previous year. This software product category is still relatively new, but competition and investments are increasing strongly in this market.
In developed markets, competition is expected to increase for process and enterprise architecture modeling software and performance management software. Whereas in emerging markets, meaningful growth potential for these software products is still expected.
Outlook for 2017
QPR will continue to invest in sales activities for its in-house developed process mining software and the related services. QPR estimates that this business will grow significantly this year.
Tightened competition in the software business for process and enterprise architecture modeling and performance management is expected to have a negative impact on sales in parts of QPR’s reseller channel, especially in developed markets. To offset this negative impact, QPR seeks growth in emerging markets by renewing its reseller partner channel related to these products.
In its home market in Finland, QPR will especially focus to develop and deliver process modeling and performance management products. In operational development consulting we will invest in developing and expanding our key accounts.
QPR estimates that its net sales will grow in 2017, but operating profit will remain slightly lower than previous year due to growth investments. The planned increase in costs is mainly related to accelerating software development and growth investments in international business.
Net sales in individual quarters are expected to fluctuate to some extent, due to timing of software license deals in each quarter.