Interim Report Q2 2005

(Høvik, 14th July 2005) Data Respons ASA delivered a second quarter with a growth in turnover of 19 per cent and an improved operating result that was 58 per cent up on the corresponding quarter the year before. Focus on sales has contributed to new order backlog record of NOK 132.3 million. The acquisition of CCT will result in further growth through cross sales.
 
Data Respons' operating income amounted to NOK 62.1 million in the second quarter. This amounts to an increase of 19 per cent compared with the same period last year. The positive development in turnover is the result of an increase in turnover of more then 30 per cent in both Norway and Sweden, and the acquisition of CCT. The operating result increased from NOK 2.6 million in Q2 2004 to NOK 4.1 million in Q2 2005. 
 
"Sweden is the largest market for Embedded Solutions in the Nordic region. It is therefore especially pleasing to note that our Swedish subsidiary experienced a record turnover in the second quarter and a profitable growth. This indicates that we have the right people and that we are winning market share. In addition to this, the last order from Saab amounted to MSEK 23 shows that even with the record turnover, our Swedish colleagues are not resting on their laurels," says Data Respons' CEO, Kenneth Ragnvaldsen.
 
The company's order backlog at the end of the quarter amounted to NOK 132.3 million compared to NOK 78 million at the end of the second quarter last year. This amounts to an increase of 70 per cent compared with the same period last year. Included the last order from Sweden, the company's order backlog is now over MNOK 150.
 
"The acquisition of CCT is already bearing fruit," says Ragnvaldsen. "The recipe has been a well planned integration strategy and contributions of Data Respons' resources. During the second half of the year, Data Respons will establish a separate integration centre which will increase the efficiency of executing placed orders."
 
During the second quarter Data Respons Denmark received ISO 9001 certification and Data Respons Norway is expected to achieve the same in the autumn. Norway experienced a strong quarter with a growth in turnover of more than 30 per cent on last year, and half-year growth of 22 per cent compared with the same period last year. Denmark had a disappointing quarter, but there have been no changes to the client structure, and good development is anticipated in the remainder of 2005.
 
Solution sales are experiencing a faster pace of growth than the other two business areas, services and products. Solutions are what we refer to as "recurring business", i.e. our solutions are integrated into clients' products and will potentially generate revenue streams in the future. In the second quarter, solutions generated 65 per cent of turnover, while products and services generated 21 per cent and 14 per cent respectively.
 
For further information:
 
Please contact CEO Kenneth Ragnvaldsen of Data Respons ASA, Tel: (+47) 67 11 20 00 or on Mobile Tel: (+47) 91 39 09 18
 
The quarterly report can be downloaded from the following link:
http://hugin.info/131926/R/1002350/153716.pdf
 
The quarterly presentation can be downloaded from the following link:
http://hugin.info/131926/R/1002353/153719.pdf
 

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