Results 2nd Quarter 2009

Data Respons is implementing a series of efficiency initiatives to meet changed market conditions and to strengthen the long-term profitability of the company.
The group's operating revenues for the 2nd quarter was NOK 182.5 million, a reduction of 14 %. The EBITDA was NOK - 36.8 million. Adjusted for one-off expenses of NOK 35 million, the EBITDA was NOK - 1.8 million. Order intake during the quarter totalled NOK 175 million, and the order backlog was NOK 454 million at the end of the quarter, a reduction of 5 %. The operating cash flow in the quarter was positive with NOK 10.6 million.
- Demanding market conditions and an industrial slowdown has affected the results in the 2nd quarter and led to a reduction in revenues from services and a lower utilisation of capacity compared to last year, says Kenneth Ragnvaldsen, CEO of Data Respons ASA.
Efficiency initiatives to strengthen profitability
- As communicated earlier we have implemented a series of initiatives to improve the efficiency of our organisation and to strengthen the long-term profitability, says Ragnvaldsen. In connection with this we have expensed one-off costs of NOK 35.0 million in the quarter, primarily connected to efficiency improvements in the Danish operation, reduction of workforce overcapacity within the group, as well as accruals for expected losses on trade receivables and one-off costs related to completion and delivery of large solutions projects.
During the 2nd half of 2009 Data Respons will:
-      Strengthen the international sales- and supply-chain management within the company's growing solutions segment
-      Implement further cost efficiency initiatives in completion and deliveries of solution projects
-      Strengthen the capacity and competency within project management
-      Continue and enhance activities to reduce the general cost level
The company expects that the initiatives described above will result in a cost reduction of approximately NOK 40 million on an annual basis with full effect from the 4th quarter 2009. In addition, these initiatives are expected to contribute to maintaining the long-term growth target of 20%.
Based on the implemented initiatives and the future prospects, the company expects a positive EBITDA in the 3rd and 4th quarter.
Good flow of contracts in solutions
- Within the company's largest business segment, Data Respons has a strong position as a complete solutions provider and a strategic partner for our customers, says Ragnvaldsen.
About Data Respons
Data Respons` vision is to become leading in Europe within 2010 on Embedded Solutions in the industrial market. Embedded Solutions can be described as being the brains of a machine, system or industrial end product. Data Respons supplies Embedded Solutions to leading OEM companies, system integrators and vertical product suppliers in a range of market segments such as defence, offshore, automation, medical equipment, surveillance, transport, telecommunications and other industries. 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 Denmark, Finland, Norway, Sweden and Germany. At the close of the 2nd quarter 2009 the company had a total of 492 employees. More information on Data Respons ASA can be found on our website:
For further information please contact:
Kenneth Ragnvaldsen, CEO, Data Respons ASA, phone: +47 67 11 20 00 Mob: +47 913 90 918.