QPR SOFTWARE INTERIM REPORT JANUARY – MARCH 2018 | QPR

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QPR SOFTWARE INTERIM REPORT JANUARY – MARCH 2018

Net Sales EUR 2.9 Million, Operating Profit 14% of Net Sales

 

QPR SOFTWARE INTERIM REPORT JANUARY – MARCH 2018, APRIL 26, 2018 AT 9.00 A.M.

Summary first quarter 2018

  • Net sales EUR 2,882 thousand (January-March 2017: 2,813).
  • International net sales 45% of total net sales (36).
  • The share of recurring revenue 57% of net sales (55).
  • Operating profit EUR 400 thousand (488).
  • Operating profit 14% of net sales (17).
  • Cash flow from operating activities EUR 1,597 thousand (1,715).
  • Profit before taxes EUR 211 thousand (477). Net financial items include EUR 184 thousand non-recurring currency losses due to liquidation of the Group´s Russian subsidiary. Currency losses do not have an impact on retained earnings or cash flow from operating activities.
  • Profit for the quarter EUR 124 thousand (365).
  • Earnings per share EUR 0.010 (0.030).

Business operations

QPR Software provides process mining, performance management and enterprise architecture solutions for digital transformation, strategy execution and business process improvement 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 execute strategies, streamline operations, support growth and digitalize businesses swiftly and effectively.

OUTLOOK

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 strong. The company still sees growth potential for these products in emerging markets.

Outlook for 2018 (updated according to IFRS 15)

The content of the outlook is the same as published earlier on 15 February 2018, but it has been updated to comply with IFRS 15 accounting principles.

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 profit will improve from previous year and will exceed 5% of net sales (2017: EUR 32 thousand).

Previous Outlook for 2018

The Company estimates that its net sales will grow in 2018. 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 comparable operating profit will improve from previous year.

 

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