GOOD DEVELOPMENT IN GEO ENGINEERING AND STRENGTHENED WORKING CAPITAL
The company's operating revenues in the first quarter totalled NOK 149.6 million, compared with NOK 200.3 million for the corresponding period in 2008. EBITDA in the 1st quarter was according to budget and totalled NOK -5.9 million, compared with NOK 29.4 million for the corresponding period in 2008. Revenues were lower than the first quarter of 2008 when the company recognised a navigation contract valued at NOK 54.1 million as income. The pre-tax profit was NOK -35.6 million, compared with NOK 12.4 million for the corresponding period in 2008.
For the respective segments, operating revenues totalled NOK 134.5 million for Geo Engineering Services and NOK 15.1 million for Information Services. The Geo Engineering segment shows revenue growth in relation to the first quarter of 2008 and has a good flow of new orders. Earnings follow the normal seasonal variations. The company expects strong earnings in the second quarter that will even out the earnings.
The consumer electronics market is weak now, and this has impacted the earnings of the Information Services segment. The company is in a continuous dialogue with its partners, which are experiencing the same situation. The main focus for the segments turnover in 2009 is based on Bloms oblique images and 3D models for navigation. 3D models are a new product to be launched in 2009. Due to the situation in the market, our partners have postponed the launch from 2nd to 4th quarter. Despite of the delay our partners maintain the estimates that 3D models will be necessary elements in the future navigation services.
The company experience a good increase of orders especially within Geo Engineering. 70 percent of the budget for 2009 is contracted. Blom has also a considerable opportunity pipeline. Totally for the year 2009 it is expected a growth in revenue compared with 2008 with a corresponding margin.
The sum total of accounts receivables and work in progress was reduced by NOK 102.9 million in the first quarter. This gives a positive cash flow from operational activities of NOK 30.3 million. In the first quarter the company has paid off debt and continued its investments in the development of a 3D Urban Model database in accordance with its contract with Tele Atlas.
The company has a strong focus on measures to improve cash flow, reduce working capital, and adjust costs and investments to the market.
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For further information please contact the CEO, Mr. Håkon Jacobsen, on tel. +47 22 13 19 33 or CFO Jan Erik Braathen on tel. +47 22 13 19 24.