Sygnity has reported that its 1Q07 consolidated figures as well as the consolidated results of its merger partner are going to be substantially worse than the consensus expectations. According to the managements of both companies the 1Q07 figures were negatively impacted: i) seasonality typical for the IT branch, with the first quarter being one of the poorest, ii) costs of the merger, and iii) lack of pick-up in public administration. According to the management the outlook for the upcoming quarters is better, and we should see revenue and profitability improvement even in 2Q07. The source of this improvement should be: i) the hardware contracts signed with the Ministry of Education, ii) conduct of a couple of important implementations and iii) visibility of the first synergy from merger with Emax.