Future outlook

Operating environment and market outlook

Market estimates released in January 2012 expect the software market to grow 6.2 percent globally (previous forecast 7.0%) and 8.0 percent in the U.S. in 2011 (forecast unchanged). The entire IT services market is expected to grow by 4.7 percent globally (previous estimate 6.0%) and by 6.8 percent in the U.S. (previous estimate 6.0%) in 2012. According to research companies, the software market is expected to grow at a rate of 7.0 percent globally, IT services by 5.6% and the IT market as a whole by 7.3 percent.

The world economy and markets are unstable, which may result in a decrease in license sales and demand for services. In addition, the conversion of license sales to SaaS solutions may have an increasingly negative effect on the growth in net sales, especially with the company’s next-generation software family. The shift in demand from license sales towards SaaS solutions will support the long-term growth targets of the Automation Services business in the future.

During 2012, the company will be undergoing a strong transformation from a software company into a service company, which will change our operating methods, solutions, and services. In addition, the uncertainty in the market will continue.

Therefore, Basware estimates that its net sales for 2012 will increase on the previous year, while its operating profit (EBIT) is estimated to reach EUR 8–18 million.