The main objective for 2012 is to grow the scalable product business’s share of the overall product selection. This will mainly be achieved organically, but carefully planned strategic acquisitions are also possible. Digia will continue developing its international operations, particularly in Russia. The main cornerstone of the company’s operations remains the maintenance of high profitability and a positive cash flow.
The company expects the IT market to remain at roughly the previous year’s level in 2012. However, risks associated with the Eurozone debt crisis and general inflation may affect demand for IT services and the development of business profitability. Slightly greater uncertainty is therefore related to the economic prospects for 2012.
With regard to its own operations, the company expects demand for contract engineering services to continue falling in the first quarter of 2012. This will cause the company’s first-quarter net sales to fall from the level of the last quarter of 2011. The reduction in net sales and the start-up of the new organisation will also tax the company’s profitability, which is expected to fall temporarily from the fourth quarter’s level.
The company expects the new organisation to begin impacting on efficiency from the second quarter of 2012, upon which it will have a positive impact on the company’s net sales and profitability.
The company expects its commercial Qt licensing and service business to grow in 2012 compared to the previous year, while maintaining a good profitability level. The Russian functions are also expected to develop favourably and to have an even greater impact on positive development of consolidated net sales and profitability during 2012.
On the whole, the company predicts that its operational profitability will improve as the year progresses, reaching a good level in the second half of 2012.