IFS Has A Magic Growth Formula; But What About Profitability?
P.J. Jakovljevic - December 19, 2000

Event Summary

In November, IFS Industrial & Financial Systems, a business applications vendor with main headquarters in Linkoping, Sweden, reported results for Q3 2000 (See Figure 1). IFS' net sales for the first nine months increased by 22%, to $161.7 million, compared with $133.1 million for the corresponding period in 1999. License sales rose by 92% to $64.4 million during the first nine months of 2000, with a license revenue increase of 106% to $11.4 million during the third quarter. Consulting revenue further increased dismally though during the third quarter, growing by 6% to $27.0 million, compared with $25.5 million for the corresponding period in 1999. However, IFS reported a loss of $18.6 million after net financial items, compared with a loss of $ 11.8 million for the first nine months of 1999. The third-quarter loss amounted to $12.5 million, compared with a loss of $10.9 million for the third quarter of 1999...