QPR SOFTWARE INTERIM REPORT JANUARY – SEPTEMBER 2017 | QPR

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QPR SOFTWARE INTERIM REPORT JANUARY – SEPTEMBER 2017

QPR SOFTWARE PLC        STOCK EXCHANGE RELEASE OCTOBER 26, 2017 AT 9.00 AM

INTERIM REPORT JANUARY – SEPTEMBER 2017

SUMMARY

July - September 2017

  • Net sales EUR 1,733 thousand (2016: 2,104). Negative development in net sales was mainly due to lower software license net sales.
  • Operating profit EUR -36 thousand (385).
  • Operating margin -2.1% (18.3).
  • Cash flow from operating activities EUR -426 thousand (-201).
  • Profit before taxes EUR -43 thousand (374).
  • Profit for the quarter EUR -34 thousand (281).
  • Earnings per share EUR -0.003 (0.023).

 January – September 2017

  • Net sales EUR 6,102 thousand (2016: 6,319).
  • Operating profit EUR 244 thousand (509).
  • Operating margin 4.0% (8.1).
  • Cash flow from operating activities EUR 1,223 thousand (1,221).
  • Profit before tax EUR 213 thousand (469).
  • Profit for the period EUR 137 thousand (352).
  • Earnings per share EUR 0.011 (0.029).
  • QPR issued a stock exchange release on 13 October of its revised estimate for full year results. The Company repeats this outlook for 2017.

Business operations

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.

OUTLOOK

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, growth potential for these software products is still expected.

Outlook for 2017

QPR Software revised its estimate for full year financial results on 13 October 2017, based on changed outlook in software license net sales. QPR also published preliminary information about its July-September financial results. The Company repeats this outlook for 2017.

The value of offers out has developed well since the spring, but at the same time the sales cycles have become longer. In July-September, software license net sales were significantly below our expectations and lower than in the previous year. 

In October-December, net sales and operating result are expected to significantly improve from July-September. This estimate is mainly based on already received orders to the last quarter of the year. QPR now estimates that its 2017 net sales will be on the same level as last year (+/-3% compared to 2016). Earlier, QPR estimated its net sales to grow compared to the previous year (2016: EUR 8,634 thousand). 

Operating profit in 2017 is expected be 4-9% of net sales. Earlier, QPR estimated operating profit to remain slightly lower than in the previous year (2016: EUR 761 thousand, 8.8% of net sales).

 

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