Basware reports successful second quarter 2009 despite challenging market situation

Net sales increased and international operations remain strong

Basware, the leading provider of purchase to pay solutions, disclosed a successful second quarter interim report for 2009 with EUR 22 729 thousand in net sales. Despite the challenging economic environment, net sales grew by 1.9 per cent in the second quarter compared with the previous year. Half-year operating profit increased by 72 percent, representing 8.4 percent of net sales, while the second quarter profits decreased by 11.7 percent compared to the same quarter last year. Basware succeeded well in all of its markets, with international operations accounting for 52.6 percent of net sales, a growth of 8.6 percent. The company expects the net sales to develop positively in 2009 at the level of 2008 and operating profit (EBIT) is expected to represent 10 to 15 percent of net sales.

”The company's results for the second quarter were at a good and anticipated level under an extremely challenging financial market situation that has also seen prolonged sales cycles,” comments Basware CEO Ilkka Sihvo. “Our six-month operating profit has increased by 72% on the previous year, which is a sufficient starting point also considering the achievement of the target for the rest of the year.”

During the reporting period, the proportion of services grew solidly, and Software as a Service and Basware Connectivity Services revenue increased their share compared to product sales. Sales of the Basware Connectivity Services, launched at the beginning of the year, have seen excellent success while Supplier Activation, e-invoicing and Scan and Capture agreements have been sold successfully in Finland, Central Europe and North America among others. During the quarter, Basware agreed to deliver Scan and Capture services along with its Enterprise Purchase to Pay solution to HCR ManorCare, Inc. in North America. The agreement is valued at over EUR one million and the sales and consulting revenue will be recognized mainly during the last quarters of 2009, while the Connectivity services will be recognized over the next three years.

Services net sales increased superbly by 61% during the first half of the year, by 73% during the second quarter and by 55% compared to the previous quarter. Services agreements typically span several years, generating continuous income throughout the contract period.

About Basware
Basware is the global leader in purchase-to-pay solutions with more than 1,500 customers and 850,000 users in over 50 countries around the world. With Basware, organizations can reduce the cost of buying and paying for goods and services and gain visibility and control of their entire spending process by automating manual processes, from sourcing, contract management,  purchasing and supplier collaboration to invoice automation.  Basware solutions and services enable substantial cost reductions across businesses and deliver value by providing compliance and control, as well as fast return on investment. The solutions are distributed and implemented, either on site or as a service, in Europe, the US, and Asia-Pacific through an extensive network of Basware offices and business partners. www.basware.com