“Orc Software has with the support of the Board gone through a substantial change during the past year. This change has contributed to a conflict building up within the company’s product development department. After consulting the Board, I have decided to leave Orc Software in order to safeguard the commitments of the company in the short termâ€, says Jonas Lindström.
Lars Johansson, Executive Vice President, has been appointed acting CEO of Orc Software taking effect immediately.
“Under the present circumstances the first priority is to create internal stability and secure quality and commitments to existing clients. This calls for, among other things, an increase of product development efforts and customer support during 2006 that together with the company’s strong market focus aims to consolidate Orc Software’s leading positionâ€, says Magnus Böcker, Chairman of the Board.
The Board’s financial targets of an annual revenue growth of at least 15 percent and an operating margin of at least 15 percent in the medium term are still valid. Increased investments in product development, mainly the company’s core products, and customer support, combined with one-off costs for the management changes stated above, will burden the results for 2006. Due to the uncertainty, the Board’s earlier estimate that the company will exceed a revenue growth of 15 percent and an operating margin of 15 percent in 2006 is no longer valid.
