STOCKHOLM, Sweden - (Business Wire) Orc Software (STO:ORC): Operating income for the first half of 2009 was SEK 92.0m, up by 90% over the same period of 2008.
Revenue is showing continued growth and reached SEK 180.1m for Q2 2009. Compared to Q2 2008, revenue rose by 30%.
Despite foreign exchange losses of SEK 11.1m for the quarter, Orc achieved an operating margin of 23% for Q2 2009.
Excluding foreign exchange effects, operating margin strengthened from 26% for Q1 2009 to 30% for Q2 2009.
On a fixed exchange rate basis, the annualized contract value increased by 3% compared to Q1 2009.
The annualized contract value at the end of Q2 2009 was SEK 674.6m (517.2), an increase of SEK 157.4m, or 30%, compared to Q2 2008. On a fixed exchange rate basis, the increase was SEK 51.8m, or 10%.
April - June 2009
• Operating revenue of SEK 180.1m (138.8)
• Revenue growth of 30%
• Operating income of SEK 42.1m (27.3)
• Operating margin of 23% (20)
• Income after tax of SEK 31.0m (17.7)
• Basic earnings per share of SEK 2.04 (1.17)
January - June 2009*
• Operating revenue of SEK 343.9m (275.3)
• Revenue growth of 25%
• Operating income of SEK 92.0m (48.4)
• Operating margin of 27% (18)
• Income after tax of SEK 67.3m (32.9)
• Basic earnings per share of SEK 4.43 (2.16)
* Net income for the first quarter has been adjusted, see Interim Report.
CEO Thomas Bill comments:
Annualized contract value (ACV) is one of our key performance metrics, and continued growth in this value is of central importance to Orc. We are therefore pleased to note that sales have risen at the same time that contract reductions have decreased somewhat, leading to a higher ACV in local currency. Translated to SEK, however, the falling dollar rate led to a net decrease during this quarter.
Europe delivered robust development and accounted for most of the quarter’s sales growth. On the heels of a very strong Q1, it is satisfying that sales in the Americas are holding steady at a good level, although the weaker US dollar resulted in a net decrease in the ACV for the region. The APAC region also enjoyed a healthy Q2 and is starting to see signs of growing optimism among the customers.
It is a true show of strength that we were able to achieve an operating margin of 23% for the quarter despite foreign exchange losses of SEK 11m.
For our customers, there are two main areas in focus. The first of these is the ongoing shift to automated trading, where our product Orc Liquidator is ideally positioned. The second consists of upgrades in the trading platforms of existing exchanges and the emergence of new trading venues, both of which are stimulating interest in our connectivity solutions.
Two particular areas of uncertainty that will affect our operating results in the months ahead are the foreign exchange currency development and the level of contract reductions.
Following a strong first half and with a continued positive outlook for the remainder of the year, we expect to meet our target to increase ACV, revenue and income compared to 2008.
About Orc Software
Orc Software (STO: ORC) is the leading global provider of powerful solutions for the worldwide financial industry in the critical areas of advanced trading and low latency connectivity. Orc’s competitive edge lies in its depth of knowledge of the trading world gained by deploying advanced solutions for sophisticated traders for over 20 years.
Orc Trading and Orc Connect provide the tools for making the best trading and connectivity decisions with strong analytics, unmatched market access, powerful automated trading functionality, high performance futures and options trading capabilities, ultra-low latency, and risk management.
Orc’s customers include leading banks, trading and market-making firms, exchanges, brokerage houses, institutional investors and hedge funds.
Orc provides sales, quality support services and development from its offices across EMEA, Americas and Asia Pacific.
For more information, please visit: www.orcsoftware.com
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Orc Software
Thomas Bill, CEO
phone: +46 8 506 477 35
or
Anders Berg, CFO
phone: +46 8 506 477 24
