Infovide-Matrix - high increase in revenue from provision of services after Q2 2008

Warsaw, August 11, 2008

Infovide-Matrix, the leading supplier of consulting services and innovative IT solutions, after the second quarter of 2008 has marked the revenue of PLN 96.29 mIlion, including PLN 79.8m of revenue from provision of services, which means growth of services by 34.6% in comparison with the same period last year. Net profit amounted to PLN 2.72 million (PLN 4.63 excluding the managerial options program).

“The first half of 2008 is yet another period of a very high increase of the sales of our proprietary solutions. We are especially pleased because our competences constitute the most solid basis and potential for Infovide-Matrix’s development. Our strategic goal is to systematically build the strongest company in the wide markets of IT consulting, business counseling as well as implementation and integration services.” – says Marek Kobiałka, President of the Board, Infovide-Matrix.

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

* results calculated for Q1-2 2008 corrected by the value of the managerial options program

Key information about H1 2008:

• The company’s results, especially those relating to the sales of own services, prove that Infovide-Matrix is systematically realizing its strategic goals. Q2 2008 ended in the increase of sales revenue from provision of services by 27.7% compared to the Q2 2007. Progressively, sales revenue from services in 2008 reached 79.8m which constitutes 34.6% of growth in relation to the same period last year. In H1 2008 the contribution of revenue from services to total revenue made 82.9% (in H1 2007 – 61.6%).

• Progressively, the Capital Group’s net profit reached PLN 2.72m; this includes the costs of the managerial options program amounting to PLN 1.91m. Excluding those costs, the result for the two quarters cleared at PLN 4.63m.

• Infovide-Matrix SA has decided to enlarge the Capital Group by DahliaMatic, a limited liability company, distinguishing itself in the market with high competences in business support solutions. The agreement signed on 30 June 2008 assumes the acquisition of 60% of DahliaMatic’s shares for PLN 20m. The transaction is yet another step in realizing Infovide-Matrix’s strategy which assumes the building of a strong Capital Group thus reinforcing the competences in the Group’s key areas. DahliaMatic radically increases the Infovide-Matrix’s potential in services related to enterprises’ and public institutions’ modernization. The company specializes in the implementation of Oracle applications orientated to support the management of commercial enterprises and the sector of public administration (it has the status of the Oracle Certified Partner). The acquisition of DahliaMatic is also another step in realizing Infovide-Matrix’s issuing goals declared in the IPO.

• Infovide-Matrix has created the Innovation Center of Infovide-Matrix, a company whose goal will be to conduct research and development work within the confines of management, product and strategic innovations related to the business use of information technology. Infovide-Matrix SA took hold of 100% of the brought-into-existence Center’s capital. The company will start its operations this autumn.

• In the first two quarters of 2008 the headcount of consultants increased by 100 people. It reflects on the dynamics of revenue from services. The company expects that such a dynamic growth of employment and ensuing outlays will add up to the company’s profitability in the future.

• In the second quarter of 2008 Infovide-Matrix ended the first phase of the of High Performance Workplace’s implementation (HPW), a tool supporting consultants’ work and knowledge management. The first phase comprised issues connected to the integration of recording and planning systems as well as the support of general company’s processes. The next stage will embrace the implementation of the knowledge management platform.

• According to the Computerworld TOP 200’s report, published in May 2008, Infovide-Matrix found itself amongst the leaders of the Polish IT market. It ranks the first among the companies providing consulting services in the Polish IT market and the second among custom-made software providers. Infovide-Matrix also comes in first in the ranking of companies earning revenues from the services rendered for the telecommunications sector.

Projects carried out by Infovide-Matrix:

In the second 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 telecommunications sector, the firm continued work at the leading operators’, among others, PTC Era, Telekomunikacja Polska SA and Polkomtel SA. More projects connected to the implementation of other functionalities of data warehousing have started at one of the sector’s companies. Infovide-Matrix has fulfilled contracts on building the system and hardwired BI platform for one of the Byelorussian mobile phones operators.

In the industry sector, work on consulting projects and on implementation of ERP systems has been ongoing. New work has also begun: a project SAP BW for RWE Stoen, a project related to the customization of Oracle eBS system for Centrostal Gdański (the Złomrex Group). The implementation of SAP will also begin in a company belonging to one of the biggest capital groups in the food industry.

In the power sector, an analysis for the implementation of Customer Care & Billing  system is undergoing at the Polish division of an European energy company.

In the finance and banking sector, the company has continued projects for key clients and institutions. An agreement has been signed with the Alior Bank for the implementation of the operating risk management system.

In the public administration sector, the company has continued consulting services for MSWiA (the Ministry of Internal Affairs) and the Ministry of Finance. Within the SLT sector (shipping, logistics, transport) Infovide-Matrix has implemented the IBM Rational Portfolio Manager 7.1 system for the Polish Airlines LOT. This solution is to support the Polish airline carrier in the project portfolio management.

Infovide-Matrix SA has been granted the title of the Oracle Polska Partner of the Year 2008. This honorable mention is the result of actively supporting the sales of Oracle applications in the Polish market and the first implementation of the Oracle E-Business Suite solution, version12, in the country.
The first in Poland implementation of version 12 of Oracle E-Business Suite for the ISD Polska holding comprises the implementation of the comprehensive management system and business processes support in the finance, logistics, strategic planning, budgeting and controlling departments.