Formpipe: Temporary margin dip

Research Update

2015-08-19

15:36

... but stable underlying development! Formpipe Software’s Q2 sales of 95.8 mSEK just beat our estimates at 93.9 mSEK. The firm however closed several contracts with strategic relevance in Q2. Profitability was significantly down though, with an EBIT of 5.8 mSEK (6.1%) compared to our expectation of 10.8 mSEK (11.4%). This dip is mainly due to investments in various areas and therefore a short-term issue, helping to capture future earnings. The firm’s recurring revenue remained strong, reducing the financial impact of such quarters. We have not made adjustments to the firm's Redeye Rating. As usual we also have bull and bear cases in the full PDF analysis and on the company's page in our new Universe.

AS

Alexander Sattelmaier

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