IBS Year-end Report January - December 2008

IBS Year-end Report January - December 2008 

Summary of fourth quarter
The global financial crisis has had some negative effects on revenue, especially
in selling to new customers as these tended to defer investments until
uncertainties are cleared. As a consequence, license revenue showed a decrease
in the quarter compared with the same period 2007, particularly in new sales. 

Professional Services revenue decreased slightly compared to the same period
2007, however it should be noted that the number of consultants has gone down
considerably compared to the year earlier period. Hardware revenue continued to
show decline, reflecting lower worldwide demand for IBM System i servers. Total
revenue for the quarter decreased by SEK 98 m. It should be noted that a
Portuguese division was divested 1 October 2008.
The strategic initiative that was announced in September has already started
showing effects. Operating costs were down considerably, a reflection on lower
staff costs and other operating costs, particularly in lower General &
Administration costs. Profit before re-structuring costs amounted to SEK 60 m,
as compared with SEK 63 m for the year earlier period. Re-structuring costs of
SEK  170 m affected operating profit negatively; operating profit showed a
decline of SEK 172 m compared to the same period last year. 

A partnership agreement was signed in December with Indian partner HCL
Technologies. This will enable IBS to accelerate the off-shoring of development
and customer support resources, and is an essential part of the strategic
initiative that was announced in September. This partnership is expected to have
effects on productivity and profitability during the first half of 2009.

The cash position improved significantly, with cash and cash equivalents
amounting to SEK 313 m (186). 

IBS' new CEO and President, Mike Shinya, took up his position on 15 October.


For more information, please contact:
Oskar Ahlberg, Senior Vice President of Communications, IBS AB
Tel: +46-70-244 24 75
oskar.ahlberg@ibs.net

IBS in brief
With over 30 years of experience, IBS is a leading provider of distribution
management solutions. IBS focuses on industries such as automotive, electrical
components, paper & packaging and pharmaceutical distribution. More than 5,000
customers across some 40 countries use IBS software to gain fast and measurable
returns on IT investments.

IBS B share is listed on OMX Nordic Exchange Stockholm. For more information,
please visit www.ibs.net