In the three months to December 31, 2002, Oslo, Norway-based EDB made a net loss of NOK 312m ($44.8m) compared to a year-ago gain of NOK 14m ($2m), on revenue that fell by 26% to NOK 1,126m ($161.6m). In full-year 2002, the company made a net loss of NOK 432m ($62m) compared to a loss of NOK 1,061m ($152.2m) in 2001, on revenue that fell 14% to NOK 4,314m ($619m).

The losses were largely due to goodwill write-offs, which totalled NOK 352m ($50.5m) in the fourth quarter and NOK 356m ($51.1m) in 2002. EDB also took charges relating to restructuring which saw its headcount fall by 14% to 2,787 last year, as it looked to solve its oversupply problems in its target markets.

All four of EDB’s main business areas posted declines in revenue during the fourth quarter. Computer operation services, which accounted for 64% of total sales, made a 5% slide in revenue to NOK 724m ($103.9m), with sales from its banking and finance business falling 25% to NOK 223m ($32m). EDB’s consulting operation was its worst performer, with sales dropping 71% to NOK 75m ($10.8m), and sales of mediation software and services to the telecom sector fell 41% to NOK 157m ($22.5m).

Results from the company’s consulting operation were affected by the sale of its 50% stake in Ephorma in December 2001, but on a like-for-like basis, sales fell by 33% to NOK 75m ($10.8m) in the fourth quarter. EDB’s recently-appointed chief executive John Arne Haugerud said that the company is considering selling parts of the consulting business, but added that demand for consulting services around e-commerce, call center systems and interactive voice recognition remained strong.

Looking ahead, EDB said it saw no immediate improvement in spending from the telecoms and banking sectors, and admitted that it stood to lose some NOK 40m ($5.7m) in annual revenue from a contract with Gjensidige NOR Sparebank, which is in talks with another supplier about replacing key elements of its EDB banking system. The one part of the business in which EDB is expecting growth is outsourcing, where it claims to be experiencing strong demand from Swedish clients.

Source: Computerwire