Software net sales increased in the first half of the year
April - June 2017
- Net sales EUR 2,062 thousand (2016: 2,173). Software license net sales increased (+17%), but total net sales decreased by 5% due to the decline in consulting net sales (-15%).
- Operating profit EUR 4 thousand (230).
- Operating margin 0.2% (10.6).
- Cash flow from operating activities EUR -66 thousand (192).
- Profit before taxes EUR -9 thousand (217).
- Profit for the quarter EUR 18 thousand (175).
- Earnings per share EUR 0.001 (0.015).
January – June 2017
- Net sales EUR 4,369 thousand (2016: 4,215). Net sales increased 4% due to the strong growth of software license net sales (+81%). Growth was slowed down by decline in consulting net sales (-10%).
- Operating profit EUR 280 thousand (125).
- Operating margin 6.4% (3).
- Cash flow from operating activities EUR 1,649 thousand (1,422).
- Profit before tax EUR 256 thousand (95).
- Profit for the period EUR 171 thousand (70).
- Earnings per share EUR 0.014 (0.006).
- Outlook for 2017 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
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
Outlook for 2017 remains unchanged.
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.