Year-End Report: January 1 – December 31, 2009

January–December 2009
• Net sales amounted to 195.8 (249.9) MSEK.
• Operating profit before depreciation, amortization, and impairment charges and restructuring costs amounted to 1,005 (5,253) kSEK.
• Operating profit amounted to -29.1 (-4.6) MSEK and was charged with impairment losses of 10.6 MSEK and restructuring costs of 11.7 MSEK.
• A rationalization program has been implemented alongside aggressive initiatives to increase revenue.
• A new share issue of SEK 10.1 million was carried out.
• The parent company acquired all minority shares in Generic Mobile.
• Net income after taxes amounted to SEK -29.2 (-5.0) million.
• Earnings per share amounted to SEK -4.14 (-0.87).
• Cash flow for the period amounted to -3.7 (1.5) MSEK.

CEO COMMENT
Generic is performing increasingly well, despite extensive restructuring efforts and a continued weak economic climate.
The telecom business, which has undergone changes during the year—including a new CEO and a restructuring process—has delivered yet another strong quarter. The telecom business has been burdened by one-time write-downs of approximately 10 MSEK, which will have a positive effect on earnings of approximately 4 MSEK for 2010. These write-downs will have no impact on liquidity. The Board of Directors has decided not to develop the 870 MHz frequency license on its own, which has resulted in an impairment charge of approximately SEK 5 million. This does not affect the long-term development of the telecom business or the outlook that the telecom business will continue to have strong earning power over the long term and an attractive market position.
In the consulting business, Generic Solutions experienced lower utilization rates during the fourth quarter. Measures have been taken, and the company has been divided into three independent units (Nacka, Uppsala, and Västerås), each with its own responsibility for sales, capacity utilization, and profitability. This strengthens Generic Solutions and increases the company’s focus on product-developing customers in the defense, power, infrastructure, and medical technology sectors. For Generic Systems, the defense market remains the primary focus. Generic Systems is also working with new clients in the area of mission-critical government agencies and other related sectors.
A common theme across the entire consulting business is that Generic continues to seek strategic hires and partners who can complement its offering and increase business volumes. Throughout the year, we have focused on cost control and streamlining measures, which are beginning to yield results.
Generic’s main strategy is to be a specialized service company offering services in communications, information management, security, and systems development to clients in Sweden and internationally. We believe in long-term growth in all sectors where the company operates. Our goal is for all operating companies and the Group to be profitable, demonstrate sound and profitable growth, and be a leading company in Sweden within selected niches.

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