Solid start with growth of 20% for Data Respons
- Strong growth, improved profit margins and a well-proven bolt-on acquisition strategy all contribute to a record quarter for Data Respons, says Kenneth Ragnvaldsen, CEO of Data Respons ASA.
Operating revenue for the first quarter was NOK 352.9 million (293.4), a growth of 20 %. EBITDA amounted to NOK 31.3 million (24.2). EBIT was NOK 26.8 (21.5). Profit for the period was NOK 26.3 million and EPS of NOK 0.46. Data Respons had a cash flow from operating activities of NOK -49.7 million (-16.6) in the quarter, mainly due to seasonality and calendar effects as the quarter ended in the Easter holidays which in turn affected the cash collection.
R&D is the main growth engine
- R&D Services continues the strong development with a solid 34 % growth in Q1, whereof 13 % is organic, leading to record high revenues and profits in the first quarter. The main drivers for the positive development are high overall utilisation, a good inflow of exciting specialist assignments and larger turnkey R&D projects, especially in the international entities. Customers across all industries are seeking to develop smarter, connected and digitalised solutions to improve their business.
28 % of Data Respons' revenues comes from Transport & Automotive where we are working with several of the leading players, both within passenger cars and trucks. This industry may be the ones that spend the most money on R&D globally and together we develop technology that bring the vehicles into the future. Our specialist competence and broad experience makes our company attractive to our customers, partners and excellent engineers, says Ragnvaldsen.
The ongoing bolt-on acquisition program continues to positively effect the company's long-term growth plan. Our recent acquisition of EPOS CAT offers great synergies and strengthens Data Respons' position as a complete technology partner for industrial digitalisation, smarter embedded and IoT solutions going forwards, continues Ragnvaldsen.
Focus on Software
- Revenues in the Solutions segment was at the same level as last year, while the profitability continues to improve. We have started a strategic transformation process to increase focus on SW content and value-add services, in addition to a gradual shift in the portfolio towards more complex and high-end solutions. This has provided a more favourable revenue mix with higher margins, although it might influence the growth in the transition period, says Kenneth Ragnvaldsen CEO of Data Respons ASA.
Continued growth and increased profitability ahead
- Q1 2018 provided record high revenues and strong profitability. The overall market outlook remains attractive and we see opportunities in all our key markets. Data Respons seeks to continue the growth through a combination of organic development and selective bolt-on acquisitions in the Nordics and Germany to strengthen our position as a complete technology partner for innovative tech start-ups to blue-chip global players, Ragnvaldsen concludes.
For further information:
Kenneth Ragnvaldsen, CEO, Data Respons ASA, tel. +47 913 90 918.
Rune Wahl, CFO, Data Respons ASA, tel. + 47 950 36 046
About Data Respons
Data Respons is a full-service, independent technology company and a leading player in the IoT and the embedded solutions market. We provide R&D services and embedded solutions to OEM companies, system integrators and vertical product suppliers in a range of market segments such as Transport & Automotive, Industrial Automation, Telecom & Media, Space, Defence & Security, Medtech, Energy & Maritime, and Finance & Public Sector.
Data Respons ASA is listed on the Oslo Stock Exchange (Ticker: DAT), and is part of the information technology index. The company has offices in Norway, Sweden, Denmark, Germany and Taiwan. www.datarespons.com
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading