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by Diane Himes, MA Editorial Staff Posted on Friday, February 02, 2007 5:00:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | Despite a drop in year-over-year net revenue for the fourth quarter ended December 31, 2006, enterprise software vendor IFS reports a 13% increase in license revenue for the full year 2006. |
| Keywords: | IFS, mid-market ERP, enterprise resource planning, financials, earnings, Alastair Sorbie, Cindy Jaudon, license revenue, turnaround plan |
Capping off a year in which it saw marginal increases in revenue and strong growth in earnings, enterprise software vendor IFS yesterday reported its results for the fourth quarter and full year ended December 31. The Swedish-based company closed 2006 with revenues of SKr 2.2 billion, up 3% over 2005's total. The ERP stalwart has been working to reverse a long-standing decline in sales that saw revenue drop from a peak of SKr 3 billion in 2001 to a low of SKr 2.1 billion in 2005. Part of the turnaround plan involves a greater reliance on indirect sales, and 2006's results offer the first glimmer of hope that expansion may be the new normal for IFS. Another positive for IFS in 2006 was the reception customers gave its products. At SKr 433 million, license sales of the company's enterprise products were up 13% in 2006, besting the projected ERP market average of 8%-10% growth. Maintenance revenue reached SKr 600 million, growing 14% year over year, while EBIT margin declined by 3% due to continuing weakness in the company's consulting business. The bottom line showed improvement, with EBIT (earnings before interest and tax) growing 24% to SKr 120 million. [Click to continue] |
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