Profitability improved in the USA compared with previous quarters. US operations made a positive contribution to the group during the third quarter and reported positive cash flow.
A large number of significant contracts were signed within prioritised market segments: asset-intensive industries, manufacturing and supply chain management, service, and aviation and defence. A total of 65 contracts were signed in the third quarter.
Over the past 12 months, indirect costs were reduced by SEK 242 M compared with the corresponding period in 2001. Indirect costs were down SEK 179 million for the first nine months. Ongoing actions are expected to reduce costs by a further SEK 90 million during the fourth quarter compared with the corresponding period in 2001.
Work has continued to improve cash flow, resulting in lower days sales outstanding (DSO). Based on rolling 12-month invoicing, DSO has been reduced to 81 to 66 days since the third quarter of 2001.
Cost-efficiency within R&D improved as a result of reallocating resources to countries with lower cost structures. The launch of IFS Applications 2003 will begin in November.
IFS Applications continues to win market-share in a shrinking market. Licence sales were down 9% during the period, adjusted for exchange rate effects and with respect to IFS Applications, in a market that fell by 22%.
The full report including tables can be downloaded from the following link: http://reports.huginonline.com/880164/109898.pdf
Share
