Infovide-Matrix - forecasted dynamic growth in 2008

(May 15, 2008)

Infovide-Matrix, the leading supplier of consulting services and innovative IT solutions, in the first quarter of 2008 increased its sales revenue from provision of services by 42%, with the increase of sales revenue by 24%. Net profit amounted to PLN 2.49 million and grew twofold in relation to Q1 2007. The company has also announced a forecast of results for 2008 assuming 31% growth of net profit.

“Infovide-Matrix’s growth dynamics in the first quarter of 2008 assures us that the company is systematically realizing its strategic goals. Especially satisfying is high increase of the sales of our proprietary solutions as well as the activities aimed at successful development of new competences and the offer for other economic sectors” - says Marek Kobiałka, President of the Board, Infovide-Matrix.

“The first quarter confirms our high expectations as to the financial results for this year. Net profit we made in this quarter - PLN 2.5 million - means double growth in relation to the profit earned in Q1 2007. The result has been adjusted considering the costs of the managerial options program, in accordance with the program’s assumptions announced in June 2007” – explains Jacek Królik, Vice-President, Infovide-Matrix SA.

Financial results in thousands PLN are presented in the following table:

Financial forecast for 2008 is presented in the following table:

 *consolidated result published in the periodic report for Q4

The financial forecast for 2008 assumes the increase of net profit to the level of PLN 21.3 million without managerial options program’s costs adjustment. The anticipated net profit after the amendment is planned to reach PLN 17.4 million.

“We maintain high efficiency which allows us to plan further dynamic growth. Generating the forecasted revenue at the present moment is at a much more advanced level than last year. In 2008 we expect more expanding of consulting projects as well as consistent widening of the scope of our services. We also plan to acquire more companies with complementing competences. We are working intensely on strengthening our image as the leading brand in the Consulting & Solution Implementation service market” – announces Borys Stokalski, Vice-President of the Board, Infovide-Matrix.

Key information about Q1 2008:

• The first quarter of 2008 turned out yet another period when the company improved its financial results. The revenue reached PLN 46.67 million and was 24% higher than last year. Net profit amounted to PLN 2.49 million (excluding managerial options program’s costs) and grew twofold in relation to Q1 2007. After the adjustment of the managerial options program’s costs in the amount of PLN 1.02 million, the net profit cleared at PLN 1.46 million.

• The sales of services grew by 42%, which agrees with the company’s strategic growth’s assumptions.

• In Q1 the IT company, CT Partners, has officially joined the capital group of Infovide-Matrix (the investment agreement was signed in Q4 2007). The competences of this consulting and training company have enlarged the portfolio of Infovide-Matrix’s services in the field of consulting and management methodology of IT organizations. CT Partners owns a large scope of services from preparation of IT strategies, building IT service organizations, creation of project management organizations through to information security management. CT Partners earned PLN 1.57 million of revenue and PLN 0.298 million of profit in Q1. One of Infovide-Matrix’s strategy pillars is building of a strong IT group in the field of Consulting & Solution Implementation. 

• The management of Infovide-Matrix will recommend to the General Assembly of Shareholders dividend pay-out in the amount of PLN 5.917 million, which is tantamount to PLN 0.50 per share. The amount of 10.89 will be allocated to the spare capital.
  • The company has prepared a comprehensive offer for the entities from the power sector comprising the whole portfolio of services, starting with consulting on IT infrastructure management through to implementation of core systems for this sector’s companies (i.e. customer care and billing systems).

Projects carried out by Infovide-Matrix:

In the first quarter of 2008, within the confines of the firm’s basic operations, Infovide-Matrix was engaged in the realization of projects in its crucial sectors:

• In the telecommunication sector, the firm continued work at the leading operators, among others, PTC Era, Telekomunikacja Polska SA and Polkomtel SA. Other projects have also been launched regarding the implementation of the billing and CRM systems in one of the sector’s companies. The firm has realized contracts on building the system and hardwired BI platform for one of the Bulgarian mobile phones operators.

• In the industry sector, work on consulting projects and on implementation of ERP systems has been ongoing. New projects have been launched too, for instance, in Netbud, where the implementation of ERP Impuls system has started. The support project of Skoda Auto Polska has been activated in the Work Flow system implementation process. The realization of the data warehouse change implementation project in PSE-Operator was successfully completed (in SAP BW technology).

• In the finance and banking sector, the company has continued projects for key clients and institutions. The implementation of factoring products servicing systems is ongoing. The distribution system of participation units for investment funds companies designed by Infovide-Matrix has been awarded by Gazeta Bankowa as the 2008 Hit for financial institutions. Raiffeisen Bank Polska has also been distinguished for the internet banking system RBank, designed and implemented by Infovide-Matrix.

• In the public administration sector, the company has continued consulting services for MSWiA (the Ministry of Internal Affairs) and the Ministry of Finance. The firm has also conducted training sessions on PRINCE2 Foundation project management.