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2016-05-11

Vitec Software Group AB: Interim Report January - March 2016

Interim Report January - March 2016STRONGER CASH FLOW DESPITE LOWER MARGIN
UMEÅ, SWEDEN, 2016-02-17 08:30 CET (GLOBE NEWSWIRE) --

SUMMARY FOR JANUARY - MARCH 2016

* Net sales SEK 157 M (143)
* Profit before tax SEK 18,0 M (21,6)
* Operating margin 12,4 % (16,1)
* Earnings per share before dilution SEK 0,48 (0,59)
* Cash flow from operations SEK 84,0 M (73,5)
* New managers in BA Real Estate and Health

CEO'S COMMENTS

In the first quarter, the Group can demonstrate an increase in sales and a
strong cash flow compared with the previous year, despite an anticipated
reduction in volume of business area Estate Agent in Sweden, an early Easter
and a weakening of the Norwegian currency. During the quarter, new business
managers were internally recruited and appointed to Real Estate and Health.
The outgoing heads remain in the organization on new positions to capitalize
on the experience gained in exploration, acquisition and group interaction.

Business area Health continues to have full focus on the development and
delivery of its cloud-based systems, which negatively impacted profitability
in the short term, but increased the proportion of recurring revenue to 85%
(74) of sales. After the decrease in sales for the business area Estate Agent
no area is now more than 30 % of total turnover, which gives greater
stability and reduced sensitivity to market changes within individual
business areas.

Vitec's financial position and preparedness for future acquisitions is good,
and with a prospect list of hundreds of companies in the Nordic region, we
therefore see good prospects for continued acquisition-based growth.

Vitec's business model with the pursuit of a high proportion of recurring
revenues has to some extent continued to grow during the first quarter to
78.3% (77.6). Long term, recurring revenues - normally the character
subscription type services - increase further. In the shorter term,
particularly in business area Real Estate, there is a limit to further growth
through adaptation and training services needed to integrate the area's
business.

With a clear shift from traditional license sales to a subscription model
(cloud-based systems), the proportion of recurring revenues and the operating
margins increase at the same time. This, together with the employees' great
capacity to innovate and integrate acquisitions, provides good conditions for
long-term development of our business. With the acquisition of
well-established companies and a high proportion of recurring revenues Vitec
continues on this path, to act in several independent and specialized niches
to achieve sustainable profitable growth.

Lars Stenlund, CEO

Disclaimer:
Vitec Software Group AB (publ.) is to make the above information public
pursuant to the Swedish Securities Market Act or the Swedish Financial
Instruments Trading Act. The information will be made public at 13:00 CET on
Wednesday, May 11, 2016.

Vitec Software Group AB (publ) is a Nordic software company that develops and
delivers standardised software for industry specific needs. The Group has
operations in Sweden, Denmark, Finland and Norway and grows in the mature
part of the software industry by consolidating vertical software segments.
Our customers include facility management companies, construction and real
estate companies, banks and insurance companies, utilities and energy
traders, healthcare companies, car spare part dealers and newspaper
companies. The Group has 450 employees and had 2015 a turnover of SEK 618
million. Vitec is listed on Nasdaq Stockholm.Vitec Software Group AB (publ).

www.vitecsoftware.com Address: Box 7965, S-907 19 Umeå, Sweden. Phone +46 90
15 49 00

Vitec Interim Report January - March 2016
http://hugin.info/171957/R/2011305/744906.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Vitec Software Group AB via Globenewswire

HUG#2011305

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