SimCorp: profits up, sales forecasts down

SimCorp: profits up, sales forecasts down

Danish treasury management systems vendor SimCorp has revised full year sales projections downwards, despite reporting a surge in third quarter revenues.

SimCorp generated Q3 revenues of Dkr133m and a profit from primary activities of Dkr18m, a substantial improvement on the previous quarter and on Q3 2001. The group posted a loss of Dkr18m in Q2 2002 and a loss of Dkr26m in Q3 2001.

The vendor signed nine TMS2000 agreements and three IT/2 agreements for a total licence value of Dkr61m during the quarter. Add-on licences to existing customers amounted to Dkr5m. The period’s licence sales secure a Dkr13m increase in future annual maintenance income.

SimCorp says that during the past four quarters, the group has reported its largest order inflow ever.

However, the continued economic downturn has triggered a downgrade in the company's full-year sales forecast by Dkr35 million to between Dkr515 and Dkr565m. Profit from primary activities is expected to range between Dkr30m and Dkr80m.

At the beginning of Q4 SimCorp had secured contracts for about 80% of expected full-year sales. The sales and profit forecasts are based on the assumption of an order inflow of at least Dkr125m during Q4.

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