The sales revenue of the Synergon Group reached 11,324 million HUF in the first nine months of 2010. The sales revenue performance of Q3 was influenced negatively partly by the information technology investment stop imposed by the austerity and savings measures in the governmental administration sector, and partly by the loss of assignments arising from the cost-reduction of local governments and the public service providers under their authority because of the local elections in the autumn. The consolidated total of operation costs decreased by 9%.

Company CEO Róbert Litauszki said,

‘The last quarter—as opposed to preliminary expectations—did not bring about the growth of the information technology market. The moderation of information technology developments, characteristic of the crisis years, is still perceptible in the entrepreneurial sphere; simultaneously, the public administration and the local government markets have been characterised by the transitory standstill resulting from post-election transformations and cost reduction measures.

Naturally, the management of Synergon did not—could not—avoid reacting to the unfavourable changes of the market, as the drop in operating costs, exceeding 8% on average, also shows; at the same time they did not quit elaborating and implementing the details of the strategy aimed at long-term growth.

In recent months, the focus of the business development activity fell primarily on opportunities and projects that can be realized with the help of the European Union despite budgetary restrictions. One of these fields is information technology development for community transportation, where the efforts of Synergon had met with success in several projects up to the release of the flash report. These successes will not only positively influence the results of coming months, but also lay the foundations of the leading position of Synergon in the transport information technology segment, which stands before remarkably dynamic development.

Throughout the coming months, the elaboration of the details of the corporate strategy and the development of the strategic resources and competences will continue, and these—together with the end of the brief standstill of the information technology market that is expected to arrive soon—will bring a period of dynamic and fruitful growth for the Synergon Group.’

Synergon Information Systems Plc.

The Flash Report can be downloaded from Investor Relations' Flash Reports folder.