Swedish ERP provider IFS weathered the recession in its second quarter, as revenue gained 9% to SKr 640 million and after-tax profits nearly tripled to SKr 17 million, although CEO Alastair Sorbie trimmed his long-term forecast.
Sorbie also hinted at a pending acquisition. “Hopefully, we’ll have some news in the second half,’’ Sorbie told Managing Automation during a conference call with analysts to report results for the quarter ended June 30.
Acquisitions are part of a plan that IFS announced in 2008 to double revenue and increase EBIT margin to 15%. It originally set those goals for 2012, but Sorbie said that 2013 is now a more “realistic” target. EBIT margins were 5% in the second quarter.
An IFS statement also reported the company’s “strongest cash flow to date,” at SKr 32 million for the quarter and SKr 163 million for the 12-month period through June 30. Cash and cash equivalents totaled SKr 360 million.