Markets and Digia's Business Operations

Caution arising from the global economic situation has lengthened customers’ decision-making processes and caused cost pressures in 2013, as customers opened their purchases to competitive tendering.

Digia has invested significantly in growing its integration business.The
delivery capacity of this business area was reinforced during the review period with personnel increase through external recruitment and internal transfers, training and with productisation efforts. Growth was higher than expected, thanks to these efforts and good customer demand. The growth trend continued strong through the last quarter.

Demand for ERP systems was good in the review period. There were clear differences in demand from different sectors, customers continued displaying caution in their purchasing behaviour, and sales cycles remained long. Order and bid volumes were at a healthy level. Net sales grew compared to the previous year, meeting the targets set for the review period. Profitability remained at the previous year’s level.

During the review period, the company reassessed the position of Russia in its growth strategy with regard to future growth potential, business risks and overall investment management. As a result, Digia gave up its loss-making Russian operations during the last quarter, focusing in future on Qt licence sales in Russia.

The Qt business progressed well and its like-for-like net sales grew by 25.0 per cent for the review period and 23.7 per cent for the fourth quarter compared to the previous year. Demand and bid volumes were both good. No major individual deals were made during the fourth quarter, however.

The profitability of operations was low during the review period; this was due to significant, target-oriented investments aimed at developing the business.

The focus of Qt operations was primarily on licence sales, which meant that the product business accounted for more than the target level of 75% of net sales.

During the period, the company continued fulfilling previously reported plans related to Qt product development and areas of focus. In December the company launched a new version of the Qt development environment intended for mobile developers, including Android and iOS support. New mobile platforms will be incorporated in coming versions.