MALMO, Sweden, April 18, 2002 (PRIMEZONE) -- Telelogic (Stockholm Exchange:TLOG), the leading global provider of solutions for advanced systems and software development, today announced financial results for the first quarter 2002 ending March 31.
Revenue for Q102 declined 22 percent to U.S. $28.3 million (SEK 292 million) compared to U.S. $36.4 million (SEK 375.0 million) for Q101. During Q102, sales of new licenses and maintenance agreements decreased 12 percent, and services decreased 39 percent over the comparable period of Q101. The decrease in revenues can be attributed to the continued slowdown in the communications segment, the company's largest vertically focused market and weaker demand for professional services.
The company reported a positive operating profit for the second consecutive quarter and successfully reduced costs by more than 10 percent compared with the previous quarter. Excluding goodwill amortization and costs for restructuring, earnings amounted to U.S. $0.16 million (SEK 1.2 million). This corresponds to an operating margin excluding restructuring costs and goodwill amortization of 0.4 percent and a positive cash flow of U.S. $5.9 million (SEK 60.9 million) during the quarter. Liquid funds thereby increased to a total of U.S. $18.0 million (SEK 185.8 million) at quarter end.
"The ongoing slowdown in the telecommunications segment worldwide continues to affect Telelogic. Despite sluggish demand, we were able to deliver stronger performance during the first quarter and improve cash flow due to continued stringent financial controls," said Anders Lidbeck, President and CEO of Telelogic.
"The U.S. market continued to stabilize throughout the quarter, although demand is still lackluster. As a result of several strategic and highly competitive, enterprise-wide transactions with leading military/aerospace, financial services and IT companies in the U.S. we were able to diversify our client base. These transactions enabled the Americas operations to achieve a positive contribution margin exceeding 40 percent for the second quarter in a row. In Europe the market situation is unchanged compared to the last quarter, while results in Asia vary between countries. Japan, India, Korea and Australia have all delivered positive contributions exceeding 40 percent during the quarter, as has also Spain.
"Despite this challenging global economic environment we remain laser- focused on delivering solutions that enable our customers to speed up their development processes through automation, improved quality and reduced time-to-market. We also remain committed to investing in next generation technology to further strengthen our technology leadership. All of these investments will ensure that we are well positioned when market conditions improve," concluded Lidbeck
Note: The results presented are based on Swedish Accounting Principles and include the effects of the acquisitions in the year 2000. This report has not been subject to special review by Telelogic's auditors. During the quarter, there has been no modification of the accounting principles.
For additional information and the detailed quarterly report, please refer to: www.telelogic.com/investor
Safe Harbor Statement
The foregoing, including the discussion regarding the company's future prospects, contains certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with economic conditions in the high-tech industry, particularly in the principal industry sectors served by the company, changes in customer requirements, the ability of the company to assimilate acquired businesses and to achieve the anticipated benefits of such acquisitions, competition and technological change. The company's actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors, including factors set forth in the company's 2001 Annual Report.
About Telelogic
Founded in 1983, Telelogic(r) (www.telelogic.com) is the leading global provider of solutions for advanced systems and software development. The company's automated application lifecycle solution includes integrated best-in-class software and professional services for requirements management, change and configuration management, development, testing, and documentation. Telelogic enables organizations to improve quality and predictability, while reducing time-to-market and overall costs in software and systems development. Built on an open architecture that ensures interoperability with other leading third-party solutions, Telelogic's products are based on international standardized languages and notations. Telelogic participates in 3GPP, Bluetooth SIG and OMG to create future communication technologies and visual software development languages.
Headquartered in Malmo, Sweden the company has more than 1,000 employees worldwide. Customers include Airbus, Alcatel, BMW, Boeing, BT, DaimlerChrysler, Deutsche Bank, Ericsson, Lockheed Martin, Lucent Technologies, Motorola, NEC, Nokia, Philips and Siemens.
Telelogic is a registered trademark of Telelogic AB. All other trademarks are the properties of respective holders.
All amounts shown are in millions of Swedish kronor (SEK million) unless otherwise stated.
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