Interim Report January - March 2019

KISTA, Sweden, April 24, 2019 First quarter 2019

• Revenue in the first quarter was SEK 240.9 (170.3) million, equivalent to a 41 percent increase.
• Operating profit excluding non-recurring items for the first quarter increased to SEK 65.7 (35.1) million, corresponding to an operating margin excluding non-recurring items of 27.3 (20.6) percent.
• Operating profit for the first quarter increased to SEK 62.2 (27.0) million, equivalent to an operating margin of 25.8 (15.9) percent.
• Earnings per share increased to SEK 2.14 (0.94) for the first quarter.
• Cash flow from operating activities was SEK 93.3 (8.0) million for the quarter.
• Cash and cash equivalents and financial investments amounted to SEK 142.7 (140.6) million at the end of the quarter.
• During the quarter, Enea came to a settlement agreement with the large customer regarding historic royalty payments which generated SEK 20 million in revenue.
• Enea Software AB acquired a business unit from Atos Convergence Creators in the quarter through an asset acquisition. This business unit was consolidated into Enea effective 1 March, with operations then integrated into the Network Solutions pro­duct group.
• On 8 January, Enea announced the appointment of Jan Häglund as its new CEO. Jan will take up his position at Enea's AGM on 6 May 2019.

January - March 2019

(First quarter previous year in brackets)

• Revenue, SEK 240.9 (170.3) million
• Revenue growth, 41 (19) %
• Revenue growth, currency adjusted, 34 (21) %
• Operating profit excluding non-recurring items, SEK 65.7 (35.1) million
• Operating profit, SEK 62.2 (27.0) million
• Operating margin excluding non-recurring items, 27.3 (20.6) %
• Operating margin, 25.8 (15.9) %
• Net profit after tax, SEK 41.4 (18.2) million
• Earnings per share, SEK 2.14 (0.94)
• Cash flow (from operating activities), SEK 93.3 (8.0) million
• Cash and cash equivalents and financial investments, SEK 142.7 (140.6) million

Anders Lidbeck, President and CEO comments:

New year, new records 

The first quarter was a strong start to 2019. Revenue was up by as much as 41 percent on the first quarter 2018, with operating profit up by a fantastic 130 percent on the first quarter one year previously. Opera­ting profit before non-recurring items increased by all of 87 percent year over year. To bring some perspective to these numbers, it's worth remembering that when we presented our operating profit before non-recurring items a year ago, this was the best first-quarter opera­ting profit in Enea's history. Earnings per share set another new record for a first quarter, and we were able to report EPS of over SEK 2 for the second consecutive quarter. But we should note that in the quarter, we reached a settlement that provided us with SEK 20 m of revenue. We were in a long-term dispute with one of our major customers on histo­rical royalty payments. As previously reported, most of this dispute was settled by in an arbitration procedure in January 2018. The arbitration agreement concluded all outstanding issues in this protracted dispute. This enables us to look forward, and focus on rebuilding trust and en­deavoring to create new partnerships in attractive segments with this customer.