The uncertainty that was created by a number of employees within research and development having resigned, has been reduced recently. The process to replace the employees that have left and to further strengthen the product and support organisation is going according to plan and the companyâs strategy remains in place.
Revenue growth during the first quarter of 2006 will well exceed the companyâs financial targets for the medium term of at least 15 percent.
The operating margin during the first quarter of 2006, excluding costs affecting comparability for terminations and recruitments of approximately SEK 8 million, and excluding costs for IFRS effects, is expected to be in line with the target for the medium term of an operating margin of 15 percent.
The annual value of existing client contracts, excluding recently acquired Cameron Systems, amounted per March 24, 2006 to SEK 259 million, which entails an increase of 30 percent compared with the corresponding period last year. Excluding foreign exchange effects, the increase was 22 percent. Compared with the fourth quarter 2005, the increase was 4 percent.
âWe see a continued strong market within our prioritised areas of algorithmic trading and market access. Furthermore, our revenue model with pre-paid licenses contributes to stability and predictability in the revenue flow. The current annual value of existing client contracts indicates that the company has the ability to reach the financial target regarding revenue growth, for the entire year 2006 as wellâ, says Lars Johansson, acting CEO of Orc Software.
Increasing costs for product development, primarily of the core products of the company, and for customer support, will affect the profits for 2006, as previously announced.
Orc Software announces its interim report for the first quarter on April 20.