Oslo, Thursday, April 29, 2010
Stock Exchange Notification

The 1st quarter 2010 report and results were presented today, 29 April 2010, at Vika Atrium. 

A summary of the report is available here. The full report is available for download. The result presentation was webcast and the presentation is availble for download.

1Q 2010 REPORT



A challenging quarter

The company reported revenues of NOK 122 million in the 1st quarter, compared with NOK 150 million for the same quarter in 2009. EBITDA for the quarter was minus NOK 7 million, compared with minus NOK 6 million for the 1st quarter of 2009. This corresponds to an EBITDA margin of minus 5.6 per cent for the 1st quarter of 2010, compared with minus 3.9 per cent for the 1st quarter of 2009. The operating loss for the quarter was NOK 28 million, compared with a loss of NOK 26 million for the 1st quarter of 2009. The pre- tax loss was NOK 39 million, compared with a loss of NOK 36 million for the corresponding quarter in 2009.

The operating revenues for the respective segments totalled NOK 106 million for Geo Engineering and NOK 16 million for Information Services. The comparative figures for the 1st quarter of 2009 were NOK 135 million for Geo Engineering and NOK 15 million for Information Services.

The first quarter has historically been the quarter with the lowest creation of value. The company is seeking to establish operations that are not so
exposed to fluctuations through establishing the sale of its own databases. Sale of the same data to multiple customers through different distribution channels is a long-term investment that the company expects will provide a good return over time. A stronger focus on and the implementation of partnership agreements, and building up our own sales force, are expected to gradually strengthen our ability to penetrate the market.

The demand for the company's contractual services for which the public sector is the largest customer group is marked by the continuing weak economy in a number of countries in which we have a significant portion of our operations. This has resulted in temporary pressure on the prices in parts of our operations. The company has decided to focus on services where satisfactory margins can be achieved. This strategy will have an impact on our revenue growth in 2010.

The reorganisation of our operations in Spain also marked the quarter. This reorganisation was implemented after an extensive investigation that was conducted due to the identification of irregularities in the accounting. The company has implemented measures in consultation with the company's advisors to ensure that there is no reoccurrence. The extensive reorganisation will strengthen the operations in Spain over time and increase the focus on the competence that has been built up at our office in Madrid. 

For further information please contact:

CEO Dirk Blaauw
Tel. +47 22 13 19 20 
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