Posted on
13 | 01 | 2005

HERMES SoftLab’s Investment Plans for 2005 Exceeding €3 million

Ljubljana, 13 January 2005 – The Managing Board of HERMES SoftLab at today’s  press conference presented the company’s good results in 2004 and the investment plan for 2005.

The company’s restructuring began in 2003 with emphasis on cost optimization, reorganization, restructuring of the sales department and increasing productivity. The process laid a solid foundation for enhanced performance in 2004.

The year 2004 was a successful year for the company as it recorded growth and profitability in comparison with 2003. According to the first unofficial estimates, the consolidated unaudited operating revenues of the company in 2004 equaled €30 million, exceeding the budgeted revenue by €1.4 million. According to initial estimates, operating profit exceeded €2 million. Positive cash flows have significantly improved the financial stability of the company, which facilitates stable growth and investment in development.

The company prepared the 2005/2006 Business Plan, which was approved by the Supervisory Board in December 2004. Revenues planned for 2005 equal €30.5 million. The biggest increase in operations is expected in sales of SPI products, embedded and storage software development, and development of solutions for mobile and fixed telecom operators.

Gregor Smrekar, president of the Managing Board and Service Delivery Director of HERMES SoftLab: “Investments in 2005 will exceed €3 million. They will be targeted towards the development of a new product for applications management, strengthening of the sales network in the EU and USA, as well as training and competence development.”

Branka Jerše, Member of the Managing Board and Finance Director: “Good performance in 2004 provides a sound basis for growth in 2005. The stable financial position enables regular financing of planned investments and opens up opportunities for long-term growth.”

The Supervisory Board will discuss the audited financial statements of the group in June 2005. The General Assembly of shareholders is planned for July 2005