Highlights Q1 2020

  · Stable quarter with limited impact from the COVID-19 pandemic
  · Revenue was NOK 293 million, up from NOK 284 million in the first quarter of
2019
  · Gross profit was NOK 80 million, up from NOK 75 million in the first quarter
of 2019
  · EBITDA adjusted was NOK 12 million
  · ARR of NOK 37 million from 207,000 end-users at the end of the quarter
  · Signed six new Flow contracts with an estimated value of NOK 12 million
  · Extraordinary market conditions reducing near-term demand, driven by
cautious private sector enterprises
  · Digital transformation amplified and accelerated, mobility market
fundamentals improving long-term
  · Sold Techstep's IT Operations and Support business for NOK 8 million in
April
  · Focus on software- and IP-lead growth

CEO comments

"We are experiencing extraordinary times for society, people and workplaces, and
Techstep like other companies and organizations has taken swift actions to
respond and adapt to the situation. The nature of what we do, making work
mobile, makes us very well equipped to deal with the challenge, and to maintain
operations in a good way", says Techstep CEO Jens Haviken.

"When it comes to our business, our stable first quarter results reflect our
strategic development transforming into a software and IP-driven mobility
services provider. We are deliberately sharpening our focus, reducing revenue
and margin contribution from some areas, to prioritize our mobility-as-a-service
offering "Flow" that we believe will enable value creating growth for our
customers and Techstep in the coming years", Jens Haviken says.

Techstep has observed a mixed market picture since March this year, with higher
activities in some areas, while new demand from existing and potential customers
in heavily affected areas have softened. Overall, the initial effect on demand
has been soft and Techstep has mitigated the challenges by reducing costs and
capex accordingly.

"Looking ahead, we see mobility needs and trends being amplified and
accelerating, and we are positive that our mobility solutions will be more
relevant than ever once the crisis abates. At its core, our business is to
enable enterprises and employees to do their work across mobile devices in any
location with a high degree of security and operational stability", says Jens
Haviken.

Techstep continue to focus on its mobility-as-a-service offering "Flow" and
solutions sales, operational efficiency and investments in software and IP, as
well as pursuing M&A.

"2020 will be a very important platform for long-term success. What we do
matters to society, people and organizations", says Techstep CEO Jens Haviken.



###

Material

Please find the report and presentation for Q1 2020 enclosed.



Presentation and audiocast:

Due to the COVID-19 situation and the government's recommendation to limit
physical meetings, the presentation will be held as an audiocast with slideshare
only. The presentation will be given in English by CEO Jens Haviken and CFO
Marius Drefvelin today at 10:00 am CEST.

Please join the Q1 2020 results presentation via the following link:
https://techstep.eventcdn.net/2020q1/



Participants dial-in numbers:

Norway: +47 2350 0236 (Direct)
Sweden: +46 8505 5 8375 (Direct)
Denmark: +45 7872 3252 (Direct)
United Kingdom: +44 3333 009032
United States: +1 646 72 24956



A recorded version of the audiocast will be made available on www.techstepasa.no
shortly after the broadcast has been concluded.



Further information from:

Jens Haviken, CEO, Techstep ASA: +47 930 90 070
Marius Drefvelin, CFO, Techstep ASA: +47 958 95 690



About Techstep ASA

Techstep is positioning itself as a leading Nordic enabler of the digital
workplace. Techstep supplies hardware, software, connectivity and mobile device
management bundled as a managed service. This enables enterprises and their
employees to do their work across mobile devices and locations, with a high
degree of security and operational stability. Techstep has 212 employees based
in Norway and Sweden, serving close to 4,000 customers and 207,000 recurring
revenue end-users across various industries in the private and public sectors.
The company is listed on the Oslo Stock Exchange. For more information, see
www.techstepasa.no

Click here for more information

© Oslo Bors ASA, source Oslo Stock Exchange