Increased efficiency drives earnings growth
The Company’s streamlined cost base continued to generate significant savings during the third quarter. Allied with improved operating margins, this led to significant profit growth. Earnings before interest, tax, and exceptional items (EBIT) rose to €21 million, and EBIT margin to 22 percent. Earnings before tax (EBT) climbed by more than one third to €21.9 million. Earnings per share nearly doubled, climbing to €0.47 (€0.24 in Q3 2003). Consolidated net profit increased to €12.7 million (€6.5 million), or 13 percent of revenues.

As a result of a marked upturn in high-margin license sales, EBITA quadrupled in Central and Eastern Europe to €4.2 million. In the Americas region, operating earnings, at €9.2 million, remained at 2003 levels, in spite of a dip in revenues. Investment relating to the penetration of the South American market, combined with increased R&D spending to localize solutions for the Spanish market, led to EBITA slipping in the Southern and Western Europe region to – €0.6 million (€1.7 million in Q3 2003). In Northern Europe, Asia/Pacific, South Africa, operating earnings fell by €0.9 million to €4.0 million.