Q-Free reported revenue of US$25 million for the second quarter 2013, an increase of 29 per cent from the same quarter last year. Operating profit (EBIT) improved to a positive US$51,000 from an operating loss of US$3.8 million in the same period last year. Loss before tax was reduced to US$391,000 from a loss of US$3.9 in the second quarter 2012. The improved earnings mainly reflect changes in the revenue composition, with higher product and service and maintenance revenue.
The company has seen a rise in tag demand, with major orders received from customers in Brazil, Australia, Thailand and France. The overall order intake of US$34 million is almost triple the second quarter last year and more than double compared to the first quarter 2013. The order backlog amounted to US$73.6 million at the end of the quarter.
Q-Free continues to see a positive long-term outlook, with opportunities both in the traditional road user charging (RUC) and in the market for advanced traffic management systems (ATMS). The company has also been awarded significant contract extensions in Sweden and Norway and sees opportunities in truck tolling in Europe and Russia, as well as further tag opportunities in Thailand, Chile, Colombia and Ecuador.
The profit improvement program launched during the first half progresses as planned towards the target of reducing annual operating costs and capital spending investments by US$10 million when fully implemented in 2014.
