IFS Reports Strong Q4 as Economy Picks Up

The enterprise applications provider sees a turnaround in license revenue and expects moderate growth in 2010.


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Posted on Feb 08, 2010

Reflecting what it called signs of general economic recovery, enterprise applications provider IFS AB today reported strong fourth-quarter revenue and earnings results.

The company, which reports its results in Swedish kronor, reported SKr 176 million in license revenue for the quarter ended Dec. 31, 2009, a 21% increase from the same period a year earlier. That increase enabled IFS to report a nearly 1% rise in overall sales despite a drop in consulting revenue for the quarter. Like other enterprise software providers, IFS saw a sudden drop in license revenue early in 2009 as customers coped with the effects of the recession. In the first quarter of 2009, the company’s license revenue fell 49% compared with the fourth quarter of 2008.

In the fourth quarter, IFS’ revenues from maintenance and support were SKr 204 million, up 2% from the like period a year ago. Consulting revenue, however, fell 6% to SKr 366 million.

IFS reported SKr 90 million in net earnings, up 41% compared with SKr 64 million in the same period a year earlier. The company also reduced its direct expenses by 3% to SKr 382 million.


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