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NYHR
Nżherji - 3Q Results 2006   20.10.2006 16:06:37
News categories: Corporate results      Ķslenska  English
 Nżherji 09 2006.pdf
 Nżherji.lykiltölur.30.09.2006.xls
Nyherji’s EBITDA for the third quarter ISK 197 million

Nyherji’s EBITDA for the third quarter ISK 197 million

ISK 238 million in profits during the year

 

·          The Q3 income of Nyherji amounted to ISK 1,910 million.

·          Income during the year was ISK 5,942 million, an increase of 43% from the previous year.

·          EBITDA profits amounted to ISK 196.9 million or 10.3% of the sales income in Q3, compared to 2.2% in 2005.

·          EBITDA for the first nine months was ISK 509 million, or approximately 8.6%, compared to ISK 130.1 million at the same time last year.

·          Income from services during the first nine months reached 42% of the total income.

·          Nyherji has acquired all the shares in Tölvusmidjan ehf. in east Iceland and has opened its own sales and service outlet in Akureyri to serve north Iceland.

 

Q3 Operations

 

The income of Nyherji in Q3 was ISK 1,909.7 million, compared to ISK 1,366.3 million during the same quarter last year and has increased by ISK 543.4 million, or 39.8%. EBIDTA amounted to ISK 196.9 million during the quarter. Profits after taxes and depreciation amounted to ISK 154.0 million, compared to ISK 4.3 million during Q3 last year.

 

During the quarter, Nyherji entered into an agreement for the purchase of Tölvusmidjan ehf., located in Fjardabyggd and Fljótsdalshérad in east Iceland. The projected turnover of Tölvusmidjan is approximately ISK 120 million, and the company will become a part of the Nyherji Group as of 1 October. Furthermore, Nyherji has opened a sales and services office in Akureyri to serve north Iceland. These new service centres are steps in strengthening services to customers outside the Reykjavķk metropolitan area.

 

There has been a considerable increase in product sales in middleware solutions, such as IP telephony systems, storage solutions and servers. Sales in printing and printing press equipment have also been quite good. Nyherji reached an agreement with the Town of Ķsafjördur to set up IBM iSeries and Blade servers, copying solutions and IP telephony systems as well as a wireless network for the municipality. An agreement was reached with Actavis for the extensive implementation of an Avaya IP telephony system in Iceland and in multiple locations overseas. Furthermore, Nyherji implemented an IP telephony system for the Danish company CarlF, a company that operates factories all over the world.

 

Included in the company’s income is approximately ISK 60 million relating to the settlement of services which had not been entered as income in 2005 and 2006 as a result of a dispute with a customer, a matter that has now been resolved.

 

Income from software, services and consultancy has grown considerably, and income from services currently amounts to 42% of Nyherji’s total income.

 

Performance during the first 9 months of 2006

 

During the first nine months of 2006, Nyherji’s income amounted to ISK 5,941.9 million, compared to ISK 4,162.6 million the previous year, an increase of 43% between years. EBIDTA was ISK 509.4 million, or 8.6%, compared to ISK 130.1 million, or 3.1%, at the same time last year. Profits after taxes for the first nine months amounted to ISK 237.6 million.

 

 

Income from product sales and related services during the first nine months amounted to ISK 3,869.2 million, and operating profits from these activities amounted to ISK 196.9 million.

 

Income from software, consultancy services and related services amounted to ISK 2,100.9 million, and operating profits from these activities during the first nine months amounted to ISK 237.3 million. This includes the previously mentioned ISK 60 million due to the settlement of an earlier dispute.

 

Financial expenses

 

The Q3 financial expenses of Nyherji hf. amounted to ISK 46.9 million, up from being negative to the tune of ISK 0.7 million the previous year. The strengthening of the Icelandic króna during the quarter had a positive effect on financial expenses.

 

Subsidiaries

 

The operation of AppliCon ehf. in Iceland and AppliCon A/S in Denmark was robust during the quarter, and the companies returned excellent growth and results. A new company, AppliCon Solutions Ltd., began operations in the UK in August. An AppliCon company will also be established in Sweden during the year. The magazine Computerworld in Denmark nominated AppliCon A/S, for the third year in a row, as one of the three foremost companies in its field in Denmark.

 

The project status is good in the AppliCon markets in Iceland and overseas, and there has been a 16% increase in the number of employees employed by the company.

 

ParX ehf. IBM Business Consulting undertook diverse consultancy projects for companies and municipalities. The project status of ParX is good, and the company is currently engaged in number of project bids in Europe with a foreign partner.

 

Prospects

 

Results from the operation of Nyherji have been in line with the company’s projections, and income has increased by approximately ISK 1,799.3 million during the year, or approximately 43%. EBITDA profits are expected to amount to almost ISK 650 million in 2006 as a whole.

 

Decision of the Board of Directors

 

At a meeting of the Board of Directors of Nyherji on 20.10.06, the Board approved the interim statement of the company for the third quarter of 2006. The statement has, however, not been examined by the auditors of the company.

 

About Nyherji

 

Nyherji is a market-driven, knowledge-based company in the field of IT and consultancy. Nyherji’s role is to create added value for its customers through its employees’ IT expertise and knowledge of business operations and clients. The company is one of Iceland’s foremost IT companies, with a wide range of products, services and solutions for companies and individuals.

 

Members of the Board of Directors are Benedict Jóhannesson, Chairman, Įrni Vilhjįlmsson and Gudmundur Jóh. Jónsson. The Managing Director of the company is Thórdur Sverrisson. He will provide further information at Tel. No.: +354 569 7711 / +354 893 3630. The Nyherji website is www.nyherji.is.

 

 


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