Jón Björnsson, CEO of Origo hf:
"The first quarter of 2021 was quite successful for the Company. A comparison with the previous year is certainly difficult due to changes in the economy, which occurred in the same quarter of last year. The quarter ended 2.4% below last year's revenue, which is entirely explained by low infrastructure sales compared to last year when the Company completed large sales to data centres. Revenue from other segments, however, is growing. Operating results are good, with the Company delivering a 10% higher EBITDA than in Q1 2020 and, in terms of operating earnings, it was the best Q1 in three years. This result is largely attributable to revenue composition and lower operating costs than the Company has been seeing. We are also pleased to see that Tempo is performing extremely well.

Origo has acquired 100% ownership of Syndis, one of the leading and most exciting information security companies in . With the acquisition, Origo’s security solutions and Syndis will be merged under the Syndis name. The aim of the acquisition is to combine two strong units that complement each other and have been doing excellent work in the area of cybersecurity. This acquisition puts us at the forefront of digital security in . We see this as a strong unit that offers comprehensive digital security services and consulting. Origo has for years built up a strong team of specialists in the area of security solutions with a strong backing of suppliers. It is clear that the team that will be part of Syndis will greatly expand our range of solutions and knowledge in one of the most rapidly growing markets in information technology. We will be able to offer 24-hour monitoring of systems, enhanced network security services and cloud consulting, as well as performing security tests, code reviews and training for staff and special courses for developers. At the same time, Syndis will seek to promote innovation by developing methods for monitoring customer environments, analysing risks in the external environment and providing advice to assist companies that need to meet compliance.
Origo has also acquired a 30% stake in the technology company DataLab, which develops solutions based on artificial intelligence technology and provides consultation on the utilization of such solutions. The aim of the investment in DataLab is to strengthen data-driven and smart solutions, where diverse data and methods that utilise AI and data science are used to automate business processes, improve the user experience, increase sales, reduce uncertainty, risk and cost and increase operational efficiency.

The acquisition of Syndis and the investment in Datalab are part of the changes we are making to Origo's managed services. Major changes have taken place in the IT environment of companies with an increased influx of software into the cloud and less emphasis on their own data centres. This has changed the nature of infrastructure sales, which are now fewer in number but at the same larger in size. The operating environment is changing and companies are increasingly in need of more extensive services around how they should operate in a more diverse environment, how they use data and how they ensure data and operational security. Origo is focused on being able to operate the services of its customers, whether they are hosted in or abroad.
Origo is working to make such services even better and more cost-effective. Our investment in our own infrastructure is in the final stages and we can now offer companies geographical separation of systems and data, double installation between machine rooms as well as operating and monitoring customer service in the cloud. At the same time, we see opportunities in the utilization of green energy, the development that has taken place in domestic data centres and the increased demand for HPC clusters. We are taking steps towards being able to offer such services to customers both in and abroad.

The Company's software units are seeing sustained growth. Origo is strong in third-party enterprise software and has placed increasing emphasis on the development of its own solutions within enterprise software such as SAP, SAP S / 4Hana and Microsoft Business Central. We reached a new milestone when we released three of our own software products for Business Central on the Microsoft marketplace in the first quarter, and we expect to add one more in the second quarter. Own software, which is fairly well defined around the healthcare sector, human resources solutions, quality systems and solutions for tourism, has performed well, with a 44% increase in revenue between years. The greatest growth is within the start-up segment, or 68%, where we offer six different solutions at a fairly broad stage of development. In general, the project status was good in Q1 and we have been successful in work related to the restructuring of our sales and marketing efforts and the coordination of aspects related to marketing activities of our core units.

Origo's sales and focus on end-user equipment continue their positive trend this year. Sales of end-user equipment were up 5% on top of the 38% increase seen last year despite considerable challenges on the purchasing side, as there has been a significant product shortage of hardware due to the worldwide short supply of processors. Origo has a focus area centred on a digital office where customers can count on receiving a complete solution, consultation and services in a modern environment. These include teleconferencing solutions, the smart home and the smart office. Origo's investment in service-related solutions is beginning to have a positive effect on the Company's operations, as many solutions are in great demand when companies place more emphasis on optimization and a digital interface. These include products such as self-service systems, queuing systems, scanners, and electronic shelf labels.

Tempo delivered record results in the first quarter of 2021. Changes in the terms of the Atlassian Marketplace, which meant that Atlassian stopped selling traditional software licenses and focused on supporting data centres and cloud solutions, had a very positive effect on sales in the first quarter. Similar growth is not expected in the second quarter. The first quarter saw a 32% rise in revenue and a 43% increase in EBIDTA. The company is in a very good financial position and is continually working to improve product features and automation, as Tempo aims to be a leader in the field of digital time tracking and also gain a further foothold outside the Atlassian Marketplace. The company added a significant number of employees in the first quarter and a long search for a CEO ended with the hiring of Mark Lorian, who has a very strong background in the operation of companies such as Tempo. Mark has extensive experience in the sale of software and technology solutions as well as having experience in managing a growing software company.

Origo took the first steps towards sharpening its social focus in the second half of last year; it is clear that the Company can make a significant contribution when it comes to gender equality, fostering innovation, environmental issues, and the health and well-being of employees. The Company has set goals for sustainability and will regularly track the benchmarks it uses to achieve further results in this area. Origo aims to increase the share of women in the technology sector and of 25 new hires in 2021, 52% have been women.

Origo expects a good continuation from the first quarter into the second quarter of the year. The Company's ongoing efforts to make units more independent and increase flexibility and efficiency have the goal of building a stronger company and improved operations. With a strategic approach to sales and marketing, we will be able to utilize the economies of scale that the Company has at its disposal and further build on our strong position as a service company with a future in helping enterprises and consumers to cope with and take advantage of the opportunities and changes that the digital environment has to offer. There are several large and exciting transformation projects ahead, and we are hopeful that projects related to the tourism industry will resume in the coming months. At the same time, we are very excited about projects related to information security and believe it is vital to help organizations increase their security awareness and address digital security issues, just as they address other security issues."