Summary for the first half of 2017 (compared with the same period last year)
- Net sales for the first half of the year amounted to 1,212,000 SEK, which is an increase over the same period last year with 18%
- Operating profit amounted to – 2 167 TSEK, corresponding to an operating margin of -179%
- Profit after tax amounted to – 2,253 TSEK, which is a decrease of 2,295 TSEK compared with the same period last year
- Earnings per share -1.08 kr
Summary for the second quarter of 2017 (compared to the same period last year)
- Net sales for the second quarter amounted to 465 TSEK, which is a decrease compared to the same period last year with just under 50%
- Operating profit amounted to -808 TSEK, which corresponds to an operating margin of -174%
- Profit after tax amounted to -870 TSEK, which is a decrease of 997 TSEK compared with the same period last year
- Earnings per share -0.42 kr
CEO Alexander Kehrer
During the first half of the year we have continued to develop our big-data platform. Data collection and algorithms have been expanded to include over 100,000 Swedish companies. This means that the big-data platform has increased significantly, which also greatly increases analytical capabilities. We have also intensified business negotiations with a number of major customers around the world. Here we see a great opportunity to develop new services in data-driven analysis.
The first six months as a whole meant an increase in sales compared to the same period last year. The second quarter, however, showed a decrease in sales compared with the same period last year. The main reason for this is that we have been delayed in product development or new subscription-based and fully automated services and hence, the revenue from these has been exposed.
During the period we also conducted a number of dialogues about acquisitions with different parties. We continue the dialogues and look for new relevant candidates.
CloudRepublic signed an agreement to sell the cloud catalog to a consortium consisting of Litestream AB, System IT AB and Systemstrategerna AB. This will allow further focus on the Big-Data Platform and Digitization Index and ensure that we can capitalize on all its capabilities.
The agreement aims to jointly with the above consortium create a company that aims to develop the part of CloudRepublic’s business model related to the cloud directory. The company expects to come up with a 12-month current turnover rate of approximately 15-20 MSEK in 2017 and be profitable. CloudRepublic receives 25% of the shares in the company as payment for the Cloud Directory. The access date is scheduled to September 1, 2017.
We see the deal as an opportunity to capitalize on part of our development work by becoming a partner in a new move while we can become more focused on our Digitalization Index within CloudRepublic. We consider this a good deal to create additional shareholder value.
We are planning to launch the Digitization Index broader this fall. We are planning a variety of launches, including industry indexes, regional lists, cities and municipalities etc, to increase visibility and interest in our services.
The underlying interest for the Digitization Index, which provides customers with data-driven analysis of their digital maturity, and the various CloudRepublic offerings, is still large. Full focus is on offering the Digitalization Indexet as an online service and establishing volume distribution channels to reach a higher volume.
CEO CloudRepublic AB
For further information, please contact:
Alexander Kehrer, CEO, Phone: +46 70 825 69 64, E-mail: email@example.com
Ari Liukko, Chairman of the Board, Phone: +46 733 15 15 15, E-mail: firstname.lastname@example.org
About CloudRepublic AB (publ): CloudRepublic helps companies realize their digital potential. CloudRepublics DigitizationIndex™ summarizes a company’s digital status and sets a mathematical measure of the Company’s digital maturity. The company’s transformation toolbox reviews and optimizes a company’s processes and business model.
CloudRepublic AB (publ) is listed on NGM Nordic MTF. For more information, see www.cloudrepublic.com
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