SOFTWAREONE with share buyback program!

The share of the software and IT service provider SOFTWAREONE is rising encouragingly, leaving some resistance behind. The next major hurdle is in the area of CHF 18, i.e. close to our price target of CHF 19. Whether the share can continue its climb remains to be seen. SOFTWAREONE has published quarterly figures that are optimistic and provide confidence. Gross profit climbed by +17% to CHF 215.6 million and operating profit by +30.5% to CHF 44.9 million. The margin reached 20.8%, after 18.2% in the same period last year. SOFTWAREONE thus exceeded analysts' expectations, particularly in terms of gross profit and margin. Looking at the segments, gross profit in Software & Cloud rose by a good +11% to CHF 119.4 million; Solutions & Services increased even more significantly by +25.3% to CHF 96.2 million. Broad-based growth is said to have taken place in all regions. With these convincing figures, SOFTWAREONE confirms its annual targets, which can easily be achieved. In addition, the company underpins its optimism with a share buyback program of CHF 70 million, which is to be implemented from the beginning of 2023. The software and IT service provider is also sticking to its medium-term targets: gross profit should be in the mid-teens at constant exchange rates and the margin should be above 25%. The dividend payout ratio of 30-50% of adjusted annual profit was confirmed.

SOFTWAREONE shows with the published quarterly figures that it has learned from the past and that a new successful path has been found. More than ever, many companies need a contemporary IT infrastructure and a secure data location in order to profitably use tools such as Big Data analysis or artificial intelligence. SOFTWAREONE is thus in a key position for its clientele. In a positive mood, we are sticking to our price target of CHF 19!

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