<html> <head> <meta name="description" content="Stronger competitive position in IFS' selected industries fueled a 41% growth in license revenue in Q2"> <meta name="title" content="Enterprise Consulting Limited News - IFS 2006 Q2 Financial Report"> <meta name="keywords" content="ecl, ifs, ifs hk, ifs 2006 Q2 Financial Report"> <meta name="distribution" content="GLOBAL"> <meta name="classification" content="Software"> <meta name="revisit-after" content="15 Days"> <title>Enterprise Consulting Limited News - IFS 2006 Q2 Financial Report</title> <meta http-equiv="Content-Type" content="text/html"; charset="utf-8"> <link rel="stylesheet" href="/style.css" type="text/css"> <link href="../CSS/styles.css" rel="stylesheet" type="text/css"> </head> <body text="#000000" bgcolor="#FFFFFF"> <font size="4"> </font> <!-- Start of StatCounter Code --> <script type="text/javascript" language="javascript"> var sc_project=589872; var sc_partition=4; var sc_security="ea940a5b"; var sc_invisible=1; </script> <script type="text/javascript" language="javascript" src="http://www.statcounter.com/counter/counter.js"></script><noscript><a href="http://www.statcounter.com/" target="_blank"><img src="http://c5.statcounter.com/counter.php?sc_project=589872&amp;java=0&amp;security=ea940a5b&amp;invisible=1" alt="free web site hit counter" border="0"></a> </noscript> <!-- End of StatCounter Code --> <table width="766" border="0" cellspacing="0" cellpadding="0"> <tr> <td height="2"></td> </tr> <tr> <td height="4" bgcolor="#13658F"></td> </tr> <tr> <td height="4"></td> </tr> </table> <table width="706" border="0"> <tr> <td width="127" height="41"><img src="../images/ifs_interim_report_0607.jpg" width="120" height="120"></td> <td width="488" height="41" class="headline">Stronger competitive position in IFS' selected industries fueled a 41% growth in license revenue in Q2</td> </tr> </table> <p></p> <table width="673" border="0" height="31"> <tr> <td width="60"></td> <td> <p><font size="2" class="text">(18 July 2006, Linkping)</font></p> <p align="justify"><span class="subtitle">Second quarter 2006</span><font size="2"></p> <p align="justify" class="text">Net revenue rose to SKr 561 million (532). License revenue increased to SKr 111 million (79), representing a growth of 41%. Maintenance and support revenue amounted to SKr 149 million (127) and consulting revenue reached SKr 293 million (309).</p> <p align="justify" class="text">EBIT reached SKr 23 million (27), with earnings before tax of SKr 16 million (25). Earnings after tax totaled SKr 13 million (23), with earnings per share after tax of SKr 0.07 (0.10).</p> <p align="justify" class="text">Cash flow from operating activities totaled SKr  5 million (10). Cash flow after investing activities totaled SKr  31 million ( 12).</p> <p align="justify"><span class="subtitle">January June 2006</span><font size="2"></p> <p align="justify" class="text">Net revenue rose to SKr 1 108 million (1 034). License revenue increased to SKr 200 million (165), representing a growth of 21%. Maintenance and support revenue amounted to SKr 301 million (252) and consulting revenue reached SKr 589 million (589).</p> <p align="justify" class="text">EBIT increased to SKr 44 million (43), with earnings before tax of SKr 23 million (29). Earnings after tax totaled SKr 20 million (23), with earnings per share after tax of SKr 0.09 (0.11).</p> <p align="justify" class="text">Cash flow from operating activities improved to SKr 118 million (110). Cash flow after investing activities totaled SKr 37 million (45).</p> <p align="justify"><span class="subtitle">Outlook</span><font size="2"></span></p> <p align="justify" class="text">The weaker than expected performance within consulting in the first half of the year will make it difficult to achieve more than 10% in EBIT margin for the full year. However, strong license development combined with a stronger development for consulting is expected to make up for part of the shortfall, and the objective is to achieve an EBIT margin of close to 10% and continued improvement of cash flow.</p> <p align="justify"><span class="subtitle">For additional information, contact:</span><font size="2"></span></p> <p align="justify" class="text"> Alastair Sorbie, President and CEO<br> Phone: +44 (0) 1494 42 89 00<br><br> Hkan Gyrulf, Chief Financial Officer<br> Phone: +46 8 58 78 45 00<br><br> Manni Svensson, Investor and Public Relations<br> Phone: +46 8 5878 45 00<br> </p> <p align="justify"><span class="subtitle">About IFS</span><font size="2"></span></p> <p align="justify" class="text"><a href="http://www.ifsworld.com/" target="_blank" class="newslink">IFS</a> (XSSE: IFS), the global enterprise applications company, provides solutions that enable organizations to respond quickly to market changes, allowing resources to be used in a more agile way to achieve better business performance and competitive advantage.</p> <p align="justify" class="text">IFS was founded in 1983 and now has 2,600 employees worldwide. IFS pioneered component-based enterprise resources planning (ERP) software with IFS Applications, now in its seventh generation. IFS component architecture provides solutions that are easier to implement, run, and upgrade. IFS Applications is available in 54 countries, in 20 languages.</p> <p align="justify" class="text">IFS has more than 500,000 users across seven key vertical sectors: aerospace & defense, automotive, high-tech, industrial manufacturing, process industries, construction & facilities management, and utilities & telecom. IFS Applications provides extended ERP functionality, including supply chain management (SCM); enterprise asset management (EAM); maintenance, repair, and overhaul (MRO); product lifecycle management (PLM); customer relationship management (CRM); and corporate performance management (CPM) capabilities.</p> <br> </td> </tr> </table> <table width="766" border="0" cellspacing="0" cellpadding="0"> <tr> <td height="2"></td> </tr> <tr> <td height="4" bgcolor="#13658F"></td> </tr> <tr> <td height="4"></td> </tr> </table> <table width="766" height="30" border="0" cellpadding="0" cellspacing="0"> <tr> <td width="543" align="center" valign="middle" class="text"><a href="../index.html" class="footnav">Home</a> | <a href="../news.html" class="footnav">News</a> | <a href="../profile.html" class="footnav">Profile</a> | <a href="../services.html" class="footnav">Services</a> | <a href="../solutions/index.html" class="footnav">Solutions</a> | <a href="../downloads/index.php" class="footnav">Downloads</a> | <a href="../partners/index.html" class="footnav">Partners</a> | <a href="../careers.html" class="footnav">Careers</a> | <a href="../contact_us.html" class="footnav">Contact Us</a></td> <td width="223" align="center" valign="middle" class="copyright"> &copy; 2005 Enterprise Consulting Ltd. <br> <A href="../legal.html" class="solutionlink">Legal Notices &amp; Disclaimer</A> </td> </tr> </table> </body> </html>