QPR SOFTWARE PLC STOCK EXCHANGE RELEASE OCTOBER 27, 2016 AT 8.30 AM
THIRD QUARTER NET SALES AND PROFIT INCREASED YEAR-ON-YEAR
Summary July – September 2016
- Net sales EUR 2,104 thousand (2015: 1,989).
- Operating profit EUR 385 thousand (-1).
- Operating margin 18.3% (-0.1).
- Comparable operating profit EUR 385 thousand (-1).
- Cash flow from operating activities EUR -201 thousand (-282).
- Profit before taxes EUR 374 thousand (10).
- Profit for the quarter EUR 281 thousand (23).
- Earnings per share EUR 0.023 (0.002).
Summary January – September 2016
- Net sales EUR 6,319 thousand (2015: 6,916).
- Operating profit EUR 509 thousand (290).
- Operating margin 8.1% (4.2).
- Comparable operating profit EUR 549 thousand (290).
- Cash flow from operating activities EUR 1,221 thousand (785).
- Profit before taxes EUR 469 thousand (299).
- Profit for the period EUR 352 thousand (283).
- Earnings per share EUR 0.029 (0.024).
QPR Software focuses on providing organizations software and professional services for operational development. 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 (updated)
QPR expects the demand for process mining software to grow in its home market in Finland, as well as in the broader international market. The software market for process mining is relatively new and, for the time being, its market size is still small. Market maturity varies greatly from one country to another, but already last year we experienced strong market growth in several European countries. This growth is expected to continue this year, and the Company believes that its QPR ProcessAnalyzer product has a strong position in the market.
In developed markets, competition in process and enterprise architecture modeling and performance management software is expected to continue to increase. In emerging markets there is still strong growth potential for these software products.
Outlook for 2016 (updated)
QPR will continue to invest in the sales activities of its in-house developed process mining software and the related process analysis services. QPR estimates that this business will continue to grow significantly this year.
The tightened competition in the software business for process and enterprise architecture modeling and performance management is expected to continue having a negative impact on sales in parts of QPR’s reseller channel, especially in developed markets. To offset this negative impact, QPR seeks growth from new reseller partnerships in emerging countries.
In its home market in Finland, QPR believes it will maintain its position as a leading software provider for process modeling and operational development; as well as to preserve its position in operational development consulting. This position has strengthened over the past few years.
QPR has updated its future outlook and estimates its operating profit to grow in 2016 as compared to 2015 (EUR 368 thousand). Earlier this year QPR estimated its comparable operating profit to grow in 2016 as compared to 2015.