Basware Improves Profitability in the Second Quarter

14 July 2008

Basware, the leading provider of financial process automation software, disclosed its half year earnings reporting net sales of EUR 41 million, with growth of 17 percent. Basware’s profitability improved in the second quarter of the year with operating profit representing 11 percent of net sales. Despite the challenging market situation, Basware estimates that the demand for the company’s software and consulting services remains steady.

“The second quarter of the year can be described with growth and profitability. Our net sales grew by over 25 percent compared with the same period last year,” said Ilkka Sihvo, CEO, Basware Corp. “International growth was the strongest in North America, Europe and Scandinavia. Also the profitability of international units improved significantly in Scandinavia, Europe and North America. Thanks to the strong international growth, already over a half of our net sales come from areas outside of Finland.”

The company’s new customers in the quarter include American Express Service Europe, AkzoNobel Functional Chemicals, G4S Security Systems, UnitingCare Health and American Cancer Society. “New customer agreements were signed in all market areas and larger and larger companies are interested in the Basware solutions,” said Sihvo.

New versions of Basware Contract Lifecycle Management and Basware RFx Management applications were launched during the second quarter. With Basware Contract Lifecycle Management, users can maintain and leverage all business agreements. Basware RFx Management sourcing solution enables electronic management and preparation of tenders.

In 2008, Basware expects the growth of net sales for the financial year to be from 15 to 25 percent compared with the Group’s net sales in the previous year. Operating profit (EBIT) is expected to be from 10 to 15 percent of net sales. The competitiveness of the software is still good due to new value-added products and the integrated concept that the products form.

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