Proact: Fiscal 3Q15 Financial Results

(in SEK million)	3Q14	3Q15	Growth	9 mo. 2014	9 mo. 2015	Growth
Revenue	455	617	*36%*	1,620	2,038	*26%*
Profit after tax	11.3	16.7	*48%*	38.4	52.9	*38%*

The Proact Group reports its financial results for the quarter ended March 2015.

Third quarter in brief

Revenue increased by 36% to SEK 617 (455) million, and revenue increased by 31% when adjusted for currency effects.
EBITDA increased by 27% to SEK 39.7 (31.3) million.
Profit before tax increased by 39% to SEK 23.8 (17.1) million.
Profit after tax increased by 48% to SEK 16.7 (11.3) million
Earnings per share amounted to SEK 1.78 (1.17).

First nine months in brief

Revenue increased by 26% to SEK 2,038 (1,620) million, and revenue increased by 20% when adjusted for currency effects.
EBITDA increased by 21% to SEK 122.1 (100.9) million.
Profit before tax increased by 36% to SEK 74.9 (55.2) million.
Profit after tax increased by 38% to SEK 52.9 (38.4) million
Earnings per share amounted to SEK 5.58 (3.92).
Return on equity over the last 12 months amounted to 26.5 (20.2)%.

Revenue per quarter

Report by Martin Ödman, MD, Proact:

Strong revenue development and the eighth consecutive quarter showing improvement in profits

The company has reported higher profits compared with the corresponding quarter in the previous year for the eighth consecutive quarter. Profit before tax amounted to SEK 23.8 million, representing an increase of 39% compared with the same quarter last year. Profit development is one of our primary focus areas, and I am very pleased to see that our profits have improved yet again.

The company’s total revenues increased by 36% throughout the quarter and amounted to SEK 617 million.

We are active in a very interesting market, where information growth is still high and new technical fields are constantly being developed. The rapidly growing parts of the market are frequently new technical fields in which Proact is traditionally prominent thanks to its role as an independent specialist in its focus areas.

Some parts of the market are also demonstrating strong financial growth, such as all flash arrays and hyperconverged infrastructure, with growth levels of 275% and 162% respectively according to IDC.

Total revenues for service operations have developed well and amounted to SEK 226 million during the quarter, representing an increase of 18% compared with the same quarter last year. Revenues for cloud services amounted to SEK 72 million during the quarter, representing an increase of 33%. System revenues have also developed positively during the quarter and amounted to SEK 390 million, representing an increase of 49%. The excellent growth in the field of system sales will have a positive impact over time on the company’s contracted revenues as systems sales are one of the factors which help to increase support revenues.

We are constantly working to develop the company according to our established strategy. Part of the company’s strategy involves increasing the proportion of contracted revenues such as cloud and support services, while another element of the strategy involves increasing revenues in respect of data centres. We have implemented a number of customer projects in the software-defined data centre field throughout the quarter, which involves customers receiving a software-based infrastructure providing enhanced efficiency and scalability. At the same time, this is a vital cornerstone in the implementation of private cloud solutions.

Our ability to help our customers to minimise risks and reduce costs, and also to supply flexible IT services and products, places us in a strong position on the European market, thereby giving as good opportunities for continued positive development in terms of both earnings and profits.

About Proact
Proact solutions cover all data centre elements, including storage, servers, security and network functions. In addition, Proact’s cloud service operations manage 70PB of information. The company has completed more than 3,500 successful projects all over the world to date. The group has more than 680 employees and conducts business in Belgium, the Czech Republic, Denmark, Estonia, Finland, Germany, Latvia, Lithuania, the Netherlands, Norway, Slovakia, Spain, Sweden, the UK and the USA. Proact was founded in 1994, and its parent company Proact IT Group AB (publ) has been listed on Nasdaq Stockholm under the symbol PACT since 1999.