Warsaw, 13 November 2008
The third quarter of 2008 – an operational profit of 12 ml zlotys
In the third quarter of 2008, the Sygnity Group accumulated a revenue of 183.6 ml zlotys,
whereas the operational profit it recorded amounted to nearly 12 ml zlotys, with a net profit
amounting to 6.4 ml zlotys. The results of 11.5 ml zlotys achieved on the operational level
were influenced by the transaction of the sale of the organized part of the enterprise dealing
with the information technology systems supporting the operations of the National Health
Fund (NFZ). Owing to the effects of the restructuring carried forward and the portfolio of
orders amounting to 860 ml zlotys attained to day, the Management Board assumes that
within the entire year 2008, it will record a positive result on the operational level,
disregarding the funds obtained from the selling of not fundamental activities, in comparison
to 2007 year, in which the Group had recorded a loss of PLN 54 ml (excluding the
restructuring deduction amounting to PLN 46 ml).
Data in PLN ml
Q3 2007
Revenues
236 910
Operational profit (loss)
(54 579)
Operational profit (loss) excluding
restructuring deductions/funds from the (17 792)
sale of assets
Net profit (loss)
(50 077)
Q3 2008
183 653
11 837
Data in PLN ml
Revenues
Operational profit (loss)
Operational profit (loss)
*excluding restructuring deduction
* * funds from the sale of assets
Net profit (loss)
Q1-Q3 2007
835 296
(126 986)
Q1-Q3 2008
664 673
(14 879)
*(71 699)
**(26 866)
(123 630)
(18 207)
250
6 364
Pursuant to the new auditor’s recommendations, the Company entered in the revenues
presented for 2007 a correction of PLN 13.7 ml in the third quarter of 2007, and an increasing
correction of PLN 41.7 ml in the third quarter of 2007, due to not having included the
revenues from the projects being realized for MPK Poznań.
Owing to the results achieved in the third quarter, the Group has increasingly decreased the
operational loss in 2008 to 14.8 ml zlotys, while the net loss has been decreased to 18.2 ml
zlotys. Increasingly, the Signity Group has recorded revenues on the level of 665 ml zlotys. It
is worth noting that the share of the sale of goods and materials has decreased within the
structure of revenues for the benefit of own products and services, which is particularly
apparent in the third quarter of 2008. In the period being discussed, 80% of the revenues came
from the sale of products and services, in comparison to 60% recorded in the third quarter of
2007. The aforementioned change in the structure of the sales is the result of Sygnity’s
decision referring to an increase of the involvement in projects connected with the delivery of
own products and services.
In the period under discussion, the Signity Group also recorded a significant increase in the
margins (the revenues reduced by the external costs of the purchase of goods and services). In
comparison to the third quarter of 2007, the margin mentioned above increased by 19
percentage points.
In the third quarter of 2008, the Management Board of Sygnity carried out intense operations
in order to further decrease its indebtedness and to improve the financial condition of the
Group. In comparison to the end if second quarter of 2008, the Group decreased by another 13
ml zlotys, as of the day of publication of the statement, the amount of its indebtedness due
under the loans drawn. As of the day of publication of the statement, the total indebtedness of
the Signity Group due to bank loans and issued bonds amounted to the total of 106 ml zlotys,
relative to the total indebtedness due to loans and bonds amounting to 277 ml zlotys as of 30
September 2007. Simultaneously, in the third quarter of 2008, the Company signed with three
banks: Bank Polska Kasa Opieki S.A., BRE Bank S.A. and Raiffeisen Bank Polska S.A an
agreement referring to financing the Company’s operations. Pursuant to the Agreement, the
banks have prolonged the loan contracts for the Company until 30 March 2009,
simultaneously the terms of loan guarantees and lines for bank guarantees for the Company in
the concluded bilateral contracts were standardized. The new terms of cooperation with the
banks take into consideration the loan needs of the Company, as well as the restructuring
program which is being executed by the Company.
In the third quarter of 2008, Sygnity Company completed several referential projects. In a
consortium with R – DATA Company and within the framework of a contract with Marshal
Office of the Świetokrzyskie Voivodeship, Sygnity implemented the Electronic Document
Circulation System along with an e – office portal. The companies also submitted necessary
equipment enabling the whole venture to function. Moreover, the Signity Group completed
the project ‘The Mazovian Spatial Information System of the Municipalities and Regions coacting in the framework of a voivodeship’. Owing to the above, the data which those
interested used to have to search in several institutions will be gathered in one place. The
Group also completed the project realized for Vattenfall Distrbution Poland referring to the
technological updating of the comprehensive system of web wealth management based on the
map.