Net sales and operating profit fell, operating profit from domestic operations showed marked improvement
- Consolidated net sales: EUR 48.5 (51.5) million, down 6.0 per cent
- Operating profit EUR 1.1 (1.5) million
- Profitability (EBIT%)2.4 (2.8) per cent
- Product business accounted for 41.0 (42.6) per cent
- Earnings per share: EUR 0.03 (0.02)
- Consolidated net sales: EUR 24.5 (28.0) million, down 12.5 per cent
- Operating profit EUR 1.4 (1.9) million
- Profitability (EBIT%) 5.8 (6.9) per cent
- Product business accounted for 41.4 (46.9) per cent
- Earnings per share: EUR 0.05 (0.04)
Consolidated net sales and operating profit fell from the previous year’s comparison figures. Net sales decreased in both segments. The decrease can be primarily attributed to exceptional net sales items included in previous year's comparison figures, which did not exist in the reporting period.
In addition, last year's comparison figures for domestic business included a one-off EUR 2.4 million low-margin maintenance deal for a third-party software product. Excluding the impact of this deal, net sales from domestic business in the second quarter were at the previous year's level.
In the Qt business, the net sales recorded in the reporting period generated by the five-year deal worth EUR 3.0 million signed in Q2 last year were EUR 1.1 million lower than in the corresponding period a year earlier. Excluding the impact of this exceptional deal, Qt net sales grew by 10.0 per cent, even though prolonged negotiations on a number of major new deals have held back growth.
In domestic business, operating profit rose significantly both in the reporting period and in the second quarter. Meanwhile, Qt business recorded a loss as expected, and as a result the company's net sales fell from previous year's comparison figures. However, losses from the Qt business shrank towards the end of the review period.
Overall, Digia expects demand to remain good in all domestic business areas and the net sales from operations and profitability to remain at least at a reasonable level. The general market uncertainty may, however, reflect on the company's order book and bid volume development.
Digia expects the Qt business to generate more net sales in 2014 than in the previous year. Investments made to secure this growth will continue to burden profitability development.
Overall, Digia expects its net sales to slightly fall short of the previous year’s level. Investments in Qt business growth are expected to stall the company's overall profitability development.
Interim Report Q2/2014.pdf
Interim Report presentation Q2/2014.pdf