Infovide-Matrix - high dynamics of profits in the first quarter of 2009

(May 14, 2009)

The Infovide-Matrix Group, the leading supplier of consulting services and innovative IT solutions, marked high dynamics of profits in Q1 2009. The operating profit has risen by almost 40% amounting to PLN 3.73m. The net profit increased by over 47% reaching PLN 3.48m. At the same time, the company generated PLN 50.2m revenue, which indicates an increase by almost 7.6% in relation to the analogous period last year. The revenues from sales of services increased by 15% and constitute 93% of total sales revenue after Q1 of this year.

The Infovide-Matrix SA’s management will recommend to the company’s General Assembly that PLN 3.55m of the net profit be devoted to the payout of dividend, which will mean the payout of PLN 0.30 per share.

“In the first quarter of 2009, in spite of the noticeable economic slowdown, we generated good financial results. Once again the sales of own services grew considerably, and both operating and net profits increased together with the better profitability. The current level of contracting for 2009 is slightly higher than that in the equivalent period of 2008. Good results are the reason for satisfaction, however we are still operating in an uncertain market environment which makes it pretty difficult to create clear-cut projections for the following quarters of the year. In the past months we started executing the savings programs which we had earlier prepared in order to adjust our operations to the market changes. Our priority is to achieve satisfying profitability and keeping the company’s potential for further growth” – says Marek Kobiałka, President of the Board, Infovide-Matrix SA.

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

* financial results excluding managerial options

“Good level of contracting for 2009 in Infovide-Matrix is, among others, the result of work conducting in the sector of public administration. In the past few months we have realized projects for the Fire Department and the Office of Electronic Communication; we have also signed contracts for big consulting projects with MSWiA (the Ministry of Internal Affairs and Administration), GUS (the Main Statistical Office) and ZUS (Social Security Office). Public administration is definitely more immune to the economic slowdown and we expect that it will keenly invest in IT solutions to modernize its sector. Infovide-Matrix, providing CSI services (consulting and solution implementation), supports public administration institutions in effective execution of strategic transformation” – adds Borys Stokalski, Vice-President of the Board, Infovide-Matrix SA.

Pay-out of dividend

The management of Infovide-Matrix SA will recommend to the General Assembly of the company, scheduled for June 2, 2009, that it pass a resolution in regard to the distribution of the profit for 2008, and to be destined for:

• Pay-out of dividend to the shareholders in the amount of PLN 3 550 464.30
• Allocation of the rest of the profit to the spare capital

The amount recommended by the management indicates the pay-out of PLN 0.30 per share. The management proposed that the dividend day be established on June 15, 2009 and the pay-out day on June 25, 2009.

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Selected information from the periodic report

Relevant growth factors:

• Good backlog of contracts for 2009
  Backlog of contracts for 2009 (PLN 106m) is higher than that marked in the equivalent period of 2008 (more than PLN 100m). 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.
  In the first quarter of 2009 Infovide-Matrix continued activities to perfect 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.

• Perfecting the management system
  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
  • implementation of High Performance Workplace

• Adaptation to changing market conditions, preparing savings programs
  Infovide-Matrix earns revenues by co-operating with enterprises and institutions of all key businesses. Due to changing market conditions the company has launched savings programs and their range is dependant on the market environment.

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Projects carried out by Infovide-Matrix in Q1 2009:

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 beginning of 2009 Infovide-Matrix signed a partnership agreement with a British company, Tribold – a leading producer of product development management tools in the telecommunications and digital media sectors. Thanks to this co-operation Infovide-Matrix’s clients from the telecommunication sector will gain access to the world-class tools and methodology in the field of product management. Tribold is the world leader amongst Product Lifecycle Management software producers for telecommunications and digital media markets. It has branches on three continents and cooperates with firms and institutions all over the world.

Thanks to this partnership, a unique packet of product management tools – TRIBOLD 3.0 will become available in the Polish market. Infovide-Matrix has already conducted first evaluation projects (“proof of concept”) for one of the biggest Polish telecommunication companies.

In the finance and banking sector, Infovide-Matrix continued projects for key clients and institutions. The company has started a project for one of the biggest Polish banks on the migration of data warehouse to a uniform technological platform. The firm has also launched a project on obligatory reporting of capital requirements and capital accord calculations with the use of an advanced method (Basel II).

In the public administration sector, the company continued consulting services for MSWiA (the Ministry of Internal Affairs and Administration) and the Ministry of Finance. Signing an agreement with the Ministry of Internal Affairs and Administration regarding the provision of consulting services within the confines of projects conducted by the MSWiA Center of IT Projects was key for the sector. The agreement Infovide-Matrix entered into for four years will be carried out together with six other IT companies. The consultants will be responsible, among other things, for the support of MSWiA executive teams in the field of projects management. Another agreement has also been signed with MSWiA regarding the support of and supervision over the creation and development of Cepik system.

In the first quarter of 2009, within the confines of the Innovative Economy Operating Program Invovide-Matrix completed 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). The project will allow the institution to gain financial means from the European Union necessary to implement the Location and Information Platform with the Central Database. Thanks to the successful realization of the project, Infovide-Matrix will contribute to faster completion of works concerning 112 emergency telephone number thus improving the safety of residents in the whole country.

In the power sector, Infovide-Matrix has completed the project related to the implementation of supervision and management principles to govern IT projects in the ENEA Group according to which investments in the IT area will be made. Works realized for the ENEA Group include: creation of IT Projects Bureau, organizational structure supporting IT projects execution, creation of project methodology standardizing project operations, training future project managers in the field of project methodology as well as implementation of project & portfolio management tools – Compuware Changepoint. Infovide-Matrix has also completed a project for RWE IT Poland whose aim was to draw up a set of recommendations to better the efficiency of project operations. The project works comprised: analysis and evaluation of the current situation, drawing up recommendations for changes and a plan of initiative launches to achieve the assumptions. Implementation of recommendations will commence in the nearest weeks.

In the industry sector, Infovide-Matrix has implemented ERP system in ITI Neovision – a provider of digital television of new generation “n”. This implementation will facilitate streamlining of the supplies in the key areas of the enterprise. In Q1 a project of implementing data warehouse in Classen-Pol has also been successfully accomplished.

In Q1 2009 Infovide-Matrix was awarded a title of “The Best IT Provider for the Industry Sector 2008” by MSI Polska. The editorial team, for the third time granted awards to the companies which offer software, hardware and services to the enterprises from the industry sector.

In the same period the company received an award, together with the title, “The Most Interesting From the Best” for implementing a comprehensive management system based on Oracle e-Business Suite in ISD Polska. A monthly “Nowy Przemysł” distinguished ISD Polska for a uniquely comprehensive use of business software in the holding’s firms: ISD Polska, ISD Huta Częstochowa and ISD Trade. The title is awarded for the most interesting implementations of IT solutions in industrial enterprises – innovative solutions which relevantly influence business management, raising its efficacy and competitiveness.