Infovide-Matrix - a dynamic growth of revenue from provision of services after three quarters of 2008 and a high level of services contracting till the end of 2008

Warsaw, November 12, 2008

Infovide-Matrix, the leading supplier of consulting services and innovative IT solutions, after the third quarter of 2008 has marked the revenue of PLN 145.05 mIlion, including PLN 122.5m of revenue from provision of services, which indicates the growth by 26.6% in comparison with the same period last year. Next, the net profit amounted to PLN 7.75 million in this period. Simultaneously, the company has secured a high level of services contracting till the end of 2008, exceeding PLN 154m.

“After the three quarters of 2008 Infovide-Matrix marks systematic and very high growth in the sales of services. We have very strong foundations and our own offer of solutions adapted to the customers’ needs in the IT and business consulting market, in the broadest meaning of the word, as well as in implementation and integration services market. Thanks to the consistently realized Consulting & Solution Implementation strategy we are able to react flexibly to the clients’ changing requirements and to the changes in market environment, which allows us to preserve the immunity to economic perturbations” – says Marek Kobiałka, President of the Board, Infovide-Matrix SA.

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

Realization of the forecast on September 30, 2008 is presented in the following table: 

“Analyzing contracting level for the fourth quarter of 2008, the Management of Infovide-Matrix assesses positively the chances of realizing the current forecast. Seasonal recurrence, typical for IT, makes crucial impact on the company financial results at the end of a calendar year. Our positive assessment is also based on a fact that the realization of the forecast after the three quarters of 2008 is higher than that of the last year in the same period of time” – says Jacek Królik, Vice-President of the Board, Infovide-Matrix SA.

Key information about the third quarter of 2008:

The company results, especially those concerning the sales of own services, prove that Infovide-Matrix systematically carries out its strategic goals. In Q3 2008 the revenues from sales of services were 14% higher than those generated in the same period in 2007. Progressively, the revenues from sales of services in 2008 yielded PLN 122.5 million which constitutes 26% growth y/y. In this period, contribution of revenue from sales of services in total revenue increased to 84.4% (after three quarters of 2007 it constituted 67.4%). Net profit in Q3 reached PLN 5.03 million, and progressively from the beginning of the year – PLN 7.75 million.

DahliaMatic

In Q3 2008 the Investment Agreement with DahliaMatic Sp. z o.o. was concluded. Final agreements on buying DahliaMatic’s shares were signed on 16 September. Acquired stakes constitute 60.18% of DahliaMatic’s stock capital and give 60.18% of votes at the Assembly of Partners. The agreement, signed on 30 June 2008, assumes the acquisition of 60% DahliaMatic shares for PLN 20 million. The transaction is yet another step in realizing Infovide-Matrix’s strategy based on creating a strong Capital Group and thus boosting the competences in the key areas for the company. After the first three quarters DahliaMatic has earned PLN 9 250 thousand revenue and PLN 1 782 thousand profit.

DahliaMatic significantly increases Infovide-Matrix’s potential in the field of enterprises’ and public institutions’ modernization services. The company specializes in the implementation of Oracle applications orientated on commercial enterprises’ management support and state administration sector’s management support (it possesses the status of Oracle Certified Partner).

CTPartners

Acquired in 2007 CTPartners SA achieved the revenue of PLN 6 312 thousand and the profit of PLN 1 064 thousand in the first three quarters of 2008.

Infovide-Matrix, the leader in the Polish market of consulting services

Infovide-Matrix has come in first amongst companies offering consulting services within the confines of information systems (Information System Consulting), as published in the IDC report on the Polish IT market in 2007. The firm is also a leader in the category of Custom Application Development, comprising providers of custom-made software services.

The IDC report, “Market Analysis – Poland IT Services 2008-2012 Forecast and 2007 Vendor Shares” analyzes the Polish market according to the shares in chosen segments of the IT market. Infovide-Matrix achieved a 19.9% share, gaining USD 29.19 million from consulting services in IT solutions last year. The company Accenture came in second in the category of Information System Consulting, with the market share of 9.5%. Other positions went to HP, IBM, Deloitte.

Infovide-Matrix has also ranked first in the category of Custom Application Development, gaining a 14% market share, with the revenue of USD 23.3 million. Firms such as Prokom, Sygnity and ABG took other places.

Infovide-Matrix’s leader position in the rankings of companies providing consulting services and custom-made software is the result of a long-term strategy which focuses on the development of the Consulting & Solution Implementation offer. The concept of CSI, originally defined by an American analytical and consulting company – Gartner, comprises IT consulting in the widest meaning of the term, business consulting as well as implementation and integration services. This model is based on an assumption that consulting companies have to be reliable co-creators of business innovations. The core of the CSI model is made up of knowledge integration: business, managemental and technological, together with the capacity to  use it in the best possible way in accordance with the client’s needs.

Projects carried out by Infovide-Matrix:

In the third 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 was carrying out multiple IT projects within the confines of customer service in Polkomtel SA, including the project supporting the clients loyalty program for Plus. The work has also been done for TP SA Group, PTC, P4, Polsat Cyfrowy and other telecommunication operators.

In the industry sector, yet another consulting project for Skoda Polska has commenced. The works relate to the optimization of business processes and the change process support system in an organization. The implementation of ERP Impulse system for Metal-Fach Sp. z o.o. in Sokółka has begun. Also, in companies Wipasz and Gaspol the implementation of logistics optimization system (Ortec) has been launched.

In the power sector, a project regarding clients segmentation for the Polish division of a European energy company has started.

In the finance and banking sector, Infovide-Matrix has continued projects for key clients and institutions. The implementation of the operating risk management system for the Alior Bank has been successfully accomplished. In the Raiffeisen Leasing Polska the company has finalized a consulting project on integration architecture. Another project for Commercial Union has also been realized – support in the creation of the Systems Integration competence center and SOA architecture. In DnB Nord the company has implemented an integration service bus. The implementation of analytical CRM system together with a campaign management system for one of the banks has been started as well.

In the public administration sector, the company has continued consulting services for MSWiA (the Ministry of Internal Affairs) and the Ministry of Finance.

Infovide-Matrix Academy has realized training sessions on project management based on Prince2 method for the employees of Regional Volunteer Centers. The course was to prepare the participants for certifying exams on Prince2 methodology. Participants of the project “Volunteering – the first step towards the labor market” took part in the training. The enterprise had been financed with the European Union funds (European Social Fund).

The Academy has also run a course on the methodology of project management PRINCE2 Foundation for Biatel SA. The sessions were meant for project managers and ended with a certifying exam. The training had allowed the participants to get familiar with the Prince2 methodology of project management and prepared them for the Prince2 Foundation accredited exam.