Enea Q2 Profit Climbs On Higher Sales; Shares Up

7/20/2012 5:57 AM ET

Shares of Enea AB (EDTDF.PK) climbed around 11 percent in the morning trade in Stockholm after the Swedish Information Technology company reported a significantly improved profitability in its second quarter.

The company said it has been run as a focused software company since the beginning of 2012, following the divestment of the Nordic consultancy business at the end of last year. Operating margin surged to 15.3 percent from prior year's 4 percent.

President and Chief Executive Officer Anders Lidbeck said, "Enea has continued its positive development over the second quarter of the year. The operating margin .. is the highest margin reported by Enea in a very long time. This means that our profit was more than four times higher than in the same quarter last year."

For the second quarter, net profit climbed to 14.9 million Swedish kronor from 3.3 million kronor earned a year ago. Earnings per share soared to 0.88 krona from 0.19 krona in the prior year, excluding capital gains.

Quarterly sales for the three-month period climbed 12.3 percent to 120.6 million kronor from 107.4 million kronor in the previous year. On a currency adjusted basis, sales increased 8.1 percent.

Enea noted that its sales growth will vary from quarter to quarter as it depends on the royalties receive based on customers' sales. Some of the company's important customers saw weaker sales volumes than expected during the first quarter, which adversely affected second quarter.

"Of course, the development of our customers' sales over the year will be of significance to our margin development. Our ambition during the next five years is to create a global software company with considerably higher net sales, high profitability, good cash flows and a large proportion of repeat income," the company said in its statement.

In Stockholm, Enea shares are currently trading at 41.20 kronor, up 4.20 kronor or 11.35 percent.

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by RTT Staff Writer

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