Innofactor lowers its estimate on the net sales and operating margin (EBITDA) for 2018

Innofactor Plc Stock Exchange Release January 25, 2019, at 08:30 Finnish time

In the stock exchange release published on October 8, 2018, Innofactor stated that its net sales in 2018 are estimated to remain on approximately the same level as in 2017, when the net sales were EUR 65.7 million, and the operating margin (EBITDA) is estimated to be positive, but weaker than in 2017, when the operating margin was EUR 1.3 million.

Customers’ purchase habits in Finland on the last quarter of the year differed significantly from estimate and previous years, as regards the Dynasty product family updates, as customers decided to wait for the turn of the year and a new version of the product family. Also, the net sales in Denmark on the fourth quarter were significantly lower than estimated. Additionally, need for write offs related to project deliveries, among other things, have appeared.  Due to these reasons, Innofactor lowers its estimate on the net sales and operating margin (EBITDA) for 2018.

Innofactor’s net sales in 2018 are estimated to remain smaller than in the previous year, 2017, during which the net sales were EUR 65.7 million, and the operating margin (EBITDA) is estimated to be negative for the entire year.

Espoo, January 25, 2019

INNOFACTOR PLC

Board of Directors

Additional information:

Sami Ensio, CEO

Innofactor Plc

Tel. 9

Distribution:

NASDAQ Helsinki

Main media

Innofactor

Innofactor is the leading driver of the modern digital organization in the Nordic Countries for its over 1,500 customers in commercial, public and third sector. Innofactor has the widest solution offering and leading know-how in the Microsoft ecosystem in the Nordics. Innofactor has approximately 600 enthusiastic and motivated top specialists in Finland, Sweden, Denmark and Norway. In 2013–2017, the annual growth of Innofactor's net sales has been approximately over 20%. The Innofactor Plc share is listed in the technology section of the main list of NASDAQ Helsinki Oy. #ModernDigitalOrganization