Infovide-Matrix in 2008: realization of forecast and 20% increase of revenue from services

(February 26, 2009)

In 2008 Infovide-Matrix, the leading supplier of consulting services and innovative IT solutions, marked the revenue of PLN 224.5m and a net profit of PLN 14.07m. As much as 78% of revenue (PLN 175.9m) constituted revenue from services, which indicates an increase by PLN 30m in relation to the last year.

In 2009 Infovide-Matrix will discount the operations launched in Q4 2008 aimed at perfecting the management system, which boost the company’s potential together with its capabilities to carry out large and more complex projects. The company has secured a good level of services contracting for 2009. In February it reached PLN 76.40m and is greater than the backlog marked in the same period for 2008. Regardless of high level of contracting, the Group is preparing saving programs. The decision on the necessity of implementation of such programs will be dependant on market situation. 

“In 2008 Infovide-Matrix marked systematic and very high growth of sales of own services. At the same time the Group progressed powerfully. As a result, our Group has developed a diversified offer in the area of Consulting & Solution Implementation, which, in spite of economic slowdown, constitutes a solid foundation in the company development and building its value. From mid-year 2008 we have been preparing ourselves to function in more difficult market environment. This bore good contracting results for 2009, which currently, in spite of the market situation, are slightly higher than last year” - 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 as of December 31, 2008 is presented in the following table:

 „We have realized the financial prognosis for 2008. Having secured good backlog for the next few months we are working on contracting for the following quarters of the year. Yet in 2008 we took up steps aimed at perfecting the management system. The Group is preparing saving programs, the decision whether or not to implement them will depend on the market situation” - says Jacek Królik, Vice-President of the Board, Infovide-Matrix SA.

“Already in Q4 2008 we intensified work on building business structures and perfecting specialized competences. The functioning of business competence centers is a vital operation which supports the development of Infovide-Matrix’ services. Today, our clients need managerial and technological solutions which bolster efficiency, increase flexibility and ensure the organization’s innovation. Intelligent automation of processes, high quality executive information, cutting-edge services and effective management practices make up our proposal for difficult times. Business experts’ knowledge allows us to deliver those values with consideration of different enterprises’ and institutions’ specific requirements. Customers appreciate those proposals and include them in their investment plans” - adds Borys Stokalski, Vice-President of the Board, Infovide-Matrix SA.

Key information about the fourth quarter and the whole of 2008:

The company’s results, especially those concerning the sales of own services, prove that Infovide-Matrix systematically carries out its strategic goals.

• In Q4 2008 the revenues from sales of services were almost 8% higher than those generated in the same period in 2007. Progressively, the revenues from sales of services in 2008 yielded PLN 175.9 million which constitutes over 20% growth y/y. In this period, contribution of revenue from sales of services in total revenue was maintained on a very high level and got to 78%.
• Net profit in Q4 reached PLN 6.33 million, and progressively from the beginning of the year – PLN 14.07 million. 
• Work on introducing new management system commenced. The new principles are based on the following assumptions:
  •  building business structures which allow to refine specialized business competences
  • making full use of the business experts’ experience and their technological knowledge
  • strong competence consolidation within the smaller organization’s units which co-operate with the business structures 
  • better organization of project servicing, and focusing on selected, most profitable and far-reaching areas in terms of the product and business offer: telecommunications, banking, public administration and power sector
  • reduction of costs related to winning contracts in foreign markets – freezing of the investment in the Ukraine
  • implementation of High Performance Workplace

Growth of the Capital Group in 2008

The year 2008 was yet another year of building a strong and integrated Infovide-Matrix Group, based on the model of Consulting & Solution Implementation.

DahliaMatic
In 2008 Infovide-Matrix acquired 60% DahliaMatic shares. The company specializes in the implementation of Oracle applications orientated towards commercial enterprises’ management support and state administration sector’s management support (it possesses the status of the Oracle Certified Partner). The business model exercised by DahliaMatic excellently writes into the Infovide-Matrix’s strategy based on the Consulting & Solution Implementation concept. The acquisition was financed with the means gained from IPO in 2007 as well as with own resources. In 2008 DahliaMatic earned PLN 13 882 thousand sales revenue and PLN 3 935 thousand profit.

CTPartners
Acquisition of CTPartners has allowed Infovide-Matrix to gain the key position, country-wide, in ITSM. Taken over in 2007, CTPartners SA achieved the revenue of PLN 9 651 thousand and the profit of PLN 1 677 thousand in 2008.

As a result of consistently realized growth and acquisition strategy Infovide-Matrix has become a leader in the Polish IT market. The Group ranks first in the segment of Information System Consulting with the market share of 19.9%, comes in first in the category of Custom Application Development with the market share of 14%, and hold the first position in the ranking of companies generating revenues from servicing the telecommunication sector.

The Group’s success factors in 2009

Results achieved by the consolidated companies
In 2009 there will appear the first full consolidation of financial results of the companies included in the Capital Group in 2008: CTPartners and DahliaMatic.

Offer for the power sector
The company has prepared a comprehensive offer for entities from the power sector, which comprises the whole portfolio of Infovide-Matrix services, starting with consulting in the area of IT infrastructure management and ending with core systems implementation for the sector (ex. customer care and billing systems).

Good backlog of contracts for 2009
Backlog of contracts for 2009 is slightly higher than its value quoted in the same period last year. The services for the telecommunication and banking sectors have the largest contribution to the backlog of complete services; public administration and the industry follow next.

Perfecting the management system
In Q4 2009 Infovide-Matrix took up steps to refine the management system. Thanks to the new corporate architecture the company increases its potential together with the capabilities in carrying out large and more complex projects.

Adaptation to changing market environment, preparing saving programs
Infovide-Matrix earns revenues by co-operating with enterprises and institutions of all key businesses. Due to changing market conditions the company is preparing saving programs whose implementation is dependant on the situation on the market.

Projects carried out by Infovide-Matrix in Q4 2008:

In the fourth 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 on projects for such clients as Polkomtel SA, TP SA Group, PTC, P4, Polsat Cyfrowy and other telecommunication operators.

In the finance and banking sector, Infovide-Matrix continued projects for key clients and institutions. The company successfully accomplished the implementation of the operating risk management system for the Alior Bank. The implementation was realized by Infovide-Matrix operating risk competence center which specializes in consulting services and implementation of such solutions for the financial sector, in co-operation with a Swiss company - RCS Riskmanagement Concepts Systems. It was the first implementation of OpRisk Suite in Poland.

In the public administration sector, the company continued consulting services for MSWiA (the Ministry of Internal Affairs) and the Ministry of Finance. Within the confines of the Innovative Economy Operating Program Invovide-Matrix carried out a project consisting in drawing up elements of the practicability Study for the Electronic Communication Office regarding Location and Information Platform with the Central Database (PLI CBD).

In the industry sector, the implementation of ERP Impulse 5 management support system for Metal-Fach Sp. z o.o. has begun. The monthly “Nowy Przemysl” distinguished the firm ISD Polska for having implemented a comprehensive management system based on Oracle e-Business Suite performed by Infovide-Matrix.

In the power sector, Infovide-Matrix is realizing the final stage of the project related to the implementation of supervision and management principles to govern IT projects in the ENEA Group.

Infovide-Matrix together with the firm TheWhiteSC has also realized a consulting project for Merlin.pl – a company operating in the retail sector. A thorough analysis of the organization’s business structure has been made, enhancing the role and responsibility of the IT department.

In October, Infovide-Matrix Academy conducted a series of training sessions for UAB Informacines Technologijos (Vilnius, Lithuania) meant to prepare candidates for the PMI PMP exams. The venture included training on project management based on PMBoK and the methodology worked out by Project Management Institute. It ended in PMP Exam Preparation licensed by our American partner, RMC Project.

Infovide-Matrix appreciated in the fourth quarter of 2008

In Q4 2008 Infovide-Matrix was distinguished in the ranking of the Pearls of Polish Economy 2008 organized by a monthly magazine, Polish Market, and the Institute of Economic Sciences of the Polish Academy of Sciences. The event was patronized by deputy Prime Minister and the Minister of Economy, Waldemar Pawlak, and the President of the Polish Academy of Science, professor Michal Kleiber.

Infovide-Matrix was awarded with a Great Pearl. The distinctions were also given to Accenture, Asseco, Dom Development, Cyfrowy Polsat, Commercial Union PTE BPH and others. The ranking is prepared annually. Apart from the financial criterion, the following aspects are taken into consideration: revenue dynamics, sales yield, debt, gross return rate in assets, net return rate on ownership capital, work efficiency.