For the three months to the end of September, Ementor reported operating profit of NOK 50.5m ($9.4m), up from a loss of NOK 218.3m ($40.6m) in the same period the previous year but below the consensus forecast of NOK 57m ($10.6m) given by analysts polled by TDN Finans. Quarterly sales totaled NOK 2.6bn ($482.1m), up from NOK 2.0bn ($368.7m) in the third quarter of 2006 but below analyst estimates of NOK 2.7bn ($508.1m).
Ementor’s rapid revenue growth continues to be driven by its aggressive acquisition strategy. Quarterly pro forma sales growth was just 3.6%, largely due to a 17.1% rise in sales from the company’s consulting and IT services division. Product revenue increased by only 1.0% to NOK 2.1bn ($392.3m), including a loss of NOK 60m ($11.2m) as a result of legislative changes in Sweden.
Ementor said acquisitions will remain an integral part of its growth strategy. Having radically shifted the company’s business model last year with the purchase of two Nordic equipment resellers, Topnordic and Atea, Ementor has preferred to concentrate on niche acquisitions so far in 2007. In the year to date, the company has completed eight deals, most recently picking up Norwegian products and services supplier Fonix Data for NOK 10m ($1.9m).
All of the companies acquired by Ementor so far in 2007 have been headquartered in the Nordic region. In this way, the company differs from its major rivals in the Nordic IT services space, EDB Business Partner and TietoEnator, which have both recently made purchases aimed at growing their global sourcing capabilities. EDB has bought two companies in Ukraine this year and is rumored to be on the verge of acquiring an Indian vendor, while TietoEnator last month bought Hyderabad-based R&D house Fortuna Technologies.
