2007-08-14 08:00:00 CEST
2007-08-14 08:00:00 CEST
REGULATED INFORMATION
Done Solutions Oyj - Quarterly report
DONE SOLUTIONS CORPORATION'S GROWTH CONTINUED IN SECOND QUARTER
Done Solutions Corporation
Stock Exchange Release August 14, 2007, at 9:00 a.m.
DONE SOLUTIONS CORPORATION'S GROWTH CONTINUED IN SECOND QUARTER
Done Solutions Corporation's Interim Report Q1-Q2/2007 (IFRS)
Q2/2007:
- Consolidated net sales: EUR 4.8 million (EUR 3.6 million in Q2/2006), up by
34.2 percent.
- Consolidated operating profit: EUR 0.53 million (EUR 0.31 million), or 11.1
percent of net sales (8.6 percent), up by 73.2 percent.
Q1-Q2/2007:
- Consolidated net sales: EUR 10.0 million (EUR 7.3 million in Q1-Q2/2006), up
by 36.0 percent.
- Consolidated operating profit: EUR 1.4 million (EUR 0.7 million), or 13.9
percent of net sales (9.8 percent), up by 93.8 percent.
- Net profit from continuing operations and net profit for the period: EUR 1.0
million (EUR 0.6 million), or 10.3 percent of net sales (8.3 percent).
- Earnings per share: EUR 0.016 (EUR 0.010). Equity ratio at 69.6 percent (53.5
percent).
- Cash flow from operating activities was EUR 1.5 million (EUR -0.1 million).
- The Group predicts that consolidated net sales and operating profit for 2007
will exceed significantly the previous year's levels.
BUSINESS ENVIRONMENT
The Systems segment's long order book for automation systems was reflected in
high net sales in the second quarter, while demand for software deliveries was
at a satisfactory level. A steady stream of orders continued in the second
quarter, which will increase the segment's net sales towards the year end.
Demand for the documentation and visualization services provided by the Services
segment remained brisk in the second quarter.
The Health Care segment's sales of tonometers in the second quarter were
unsatisfactory while probe sales were strong. As in the previous year, the
second quarter net sales and the segment's profit remained lower than in the
first quarter. The application for an FDA (Food and Drug Administration) license
to sell iCare tonometers in the USA was approved on May 31, 2007. An agreement
with a distributor in the USA was concluded in the middle of July. The
deliveries
of iCare-tonometers to the USA have not yet begun.
NET SALES, PROFITABILITY AND PROFIT
Consolidated net sales for the period came to EUR 10.0 million (EUR 7.3
million), up by 36.0 percent year on year.
Consolidated operating profit amounted to EUR 1.4 million, accounting for 13.9
percent of consolidated net sales (EUR 0.7 million, or 9.8 percent of
consolidated net sales), up by 93.8 percent from the previous year.
Pre-tax profit totaled EUR 1.4 million, accounting for 14.0 percent of net sales
(EUR 0.7 million, or 10.2 percent of net sales), up by 86.3 percent year on
year.
Net profit from continuing operations and net profit for the period totaled EUR
1.0 million, accounting for 10.3 percent of net sales (EUR 0.6 million, or 8.3
percent of net sales), up by 68.7 percent from the previous year. The amount of
expenses for deferred tax assets before profit recognized for Q1-Q2/2007 tax
came to EUR 0.36 million and for Q1-Q2/2006 EUR 0.00 million.
Earnings per share rose to EUR 0.016 (EUR 0.010) and equity per share improved
to EUR 0.171 (EUR 0.079). Diluted earnings per share equaled basic earnings per
share.
Systems (Done Logistics), Services (Done Information) and Health Care (Tiolat)
form the Group's primary, IFRS-compliant segment reporting format. Net sales and
profit by segment were as follows:
Net sales Net sales Segment profit
Q1-Q2/2007 Q1-Q2/2006 Q1-Q2/2007 Q1-Q2/2006
MEUR share MEUR share MEUR % MEUR %
Systems 5.2 52% 3.5 48% 0.69 13 0.45 13
Services 2.9 29% 2.6 35% 0.46 16 0.35 14
Health Care 1.9 19% 1.3 17% 0.55 29 0.24 19
Total 10.0 100% 7.3 100% 1.70 17 1.04 14
Parent company costs -0.31 -3 -0.32 -4
Operating profit 1.39 14 0.72 10
The consolidated net sales, profit by segment and consolidated operating profit
by quarters were:
MEUR Q2/2007 Q1/2007 Q4/2006 Q3/2006 Q2/2006 Q1/2006
Net sales:
Systems 2.6 2.6 1.8 1.1 1.8 1.7
Services 1.4 1.5 1.3 1.1 1.3 1.3
Health Care 0.9 1.1 1.0 0.7 0.6 0.7
Total 4.8 5.2 4.1 2.9 3.6 3.8
Profit by segment:
Systems 0.36 0.33 0.25 0.03 0.21 0.25
Services 0.17 0.28 0.18 0.16 0.15 0.20
Health Care 0.15 0.41 0.21 0.21 0.09 0.14
Total 0.68 1.02 0.64 0.40 0.45 0.59
Parent company costs -0.15 -0.16 -0.15 -0.13 -0.14 -0.18
Operating profit 0.53 0.86 0.49 0.27 0.31 0.41
Operating profit % 11.1% 16.6% 12.1% 9.4% 8.6% 10.9%
BALANCE SHEET AND FINANCIAL POSITION
On June 30, 2007, consolidated balance-sheet total amounted to EUR 16.8 million
(EUR 11.1 million on June 30, 2006). Shareholders' equity came to EUR 11.3
million (EUR 5.9 million). Interest-bearing liabilities totaled EUR 0.3 million
(EUR 2.2 million) and gearing stood at -7.8 percent (-28.0 percent). At the
period-end, equity ratio was 69.6 percent (53.5 percent) and cash and cash
equivalents stood at EUR 1.2 million (EUR 3.8 million).
On April 3, 2007, the Company paid EUR 0.8 million in subordinated loans and EUR
0.13 million in interest to Conventum Venture Finance Ltd (EUR 0.55 million and
EUR 0.09 million) and Jyri Merivirta (EUR 0.25 million and EUR 0.04 million),
the latter belonging to the Company's related parties.
MAJOR EVENTS DURING THE PERIOD
On April 3, 2007, Done Solutions Corporation published a stock exchange release
dealing with decisions made by the Annual General Meeting (AGM) on the same
date. The AGM's decision on alterations of the Articles of Association and other
decisions requiring registration in the Trade Register were registered on April
16, 2007.
Done Logistics Oy, a subsidiary within the Group's Systems segment,
received on May 16, 2007, a EUR 2.6 million project delivery order from a major
customer in the paper industry. The delivery will be implemented in Europe
during 2007-08.
The US Food and Drug Administration approved on May 31, 2007, an import license
application for the iCare tonometer filed by Tiolat Oy, a Group subsidiary
within the Health Care segment.
Pekka Pystynen finished on June 26, 2007, as Done Solutions Corporation's CEO.
The group's Legal Council Juha Kujala continues as acting CEO.
MAJOR EVENTS AFTER THE BALANCE SHEET DATE
On July 3, 2007, Done Logistics Oy, a subsidiary within the Group's Systems
segment, received an over EUR 2.0 million project delivery order from a major
customer in the forest industry. The delivery will be implemented in Europe
during 2007-08.
PRODUCT DEVELOPMENT
Product development costs for the period came to EUR 0.16 million (EUR 0.14
million) and were expensed as incurred.
HUMAN RESOURCES
During the period, the number of employees averaged 136 (132), two of whom
worked abroad (2). Personnel by segment was as follows:
Q1-Q2/2007 Q1-Q2/2006
Systems 59 58
Services 67 65
Health Care 7 6
Parent company 3 3
Total 136 132
MANAGEMENT AND AUDITORS
From April 3, 2007, Done Solutions Corporation's Board of Directors is made up
of the following members: Jyri Merivirta (Chairman), Matti Nevalainen and Pekka
Tammela.
Deloitte & Touche Oy, Authorized Public Accountants, acts as the company's
auditor, with Eero Lumme, Authorized Public Accountant, acting as the chief
auditor.
INSIDER ISSUES AND CORPORATE GOVERNANCE
Done Solutions Corporation complies with the Helsinki Stock Exchange's
Guidelines for Insiders effective since January 1, 2006 and, to the applicable
extent, the Recommendation on the Corporate Governance for Listed Companies
effective since July 1, 2004. The Company's Corporate Governance Statement is
available in the Investors section on the Company's website.
SHARE CAPITAL AND SHARES
On June 30, 2007, Done Solutions Corporation's share capital amounted to EUR
5,314,918.72 and the number of shares totaled 66,436,484.
The Board has not exercised valid authorizations to issue 33,000,000 shares and
dispose of 6,643,648 treasury shares, resolved by the AGM of April 3, 2007.
Based on the AGM's authorization issued on April 3, 2007, the Board of Directors
may decide to buy back 6,643,648 own shares. The company has no treasury shares,
nor has it valid stock option schemes in place.
The reported share turnover of Done Solutions Corporation between January 1 and
June 30, 2007 was EUR 19.7 million, representing 45.6 million shares and 68.6
percent of the total number of company shares. The share registered a high of
EUR 0.77 and a low of EUR 0.28. The share price averaged EUR 0.46 and closed at
EUR 0.72 on June 30, 2007. The company's market capitalization on June 30, 2007
totaled EUR 47.8 million.
SHAREHOLDERS
The company's largest shareholders are listed on Done's website at
www.donesolutions.com (Investors / Financial Information / Largest
shareholders).
MANAGEMENT SHAREHOLDINGS
On June 30, 2007, the Board of Directors and the President and CEO held 22.6
percent of the company's shares, totaling 15,000,000 shares. Moreover, on the
same date, Gateway Finland Oy held 17.3 percent of company shares, totaling
11,500,000 shares. Matti Nevalainen, a Board member, holds 50 per cent of
Gateway Finland Oy shares.
MAJOR BUSINESS RISKS
The stock exchange release of February 28, 2007 on the financial statements for
2006 provides information on major business risks exposed by the company. The
second quarter did not see any changes in the company's major business risks.
PROSPECTS
Demand for the Services segment's multilingual documentation and visualization
services is expected to remain steady also towards the year end and segment net
sales are anticipated to show moderate growth.
The Systems segment's order intake was excellent in the first half of the year
and the segment is expected to post significantly higher net sales in 2007 than
in 2006. The Health Care segment is expected to increase its net sales markedly
due to a sales license approval for the USA and expanding markets.
Due to the expected increase in net sales for Systems and Health Care segments,
consolidated net sales and operating profit for the current businesses is
expected to be significantly higher in 2007 than in the previous year.
Done Solutions Corporation
Board of Directors
For further information, please contact:
Juha Kujala, acting CEO, gsm +358(0)40 7349017,
juha.kujala@donesolutions.com
Mika Söyring, CFO, gsm +358(0)40 7770033,
mika.soyring@donesolutions.com
http://www.donesolutions.com
Distribution
Helsinki Stock Exchange
Financial Supervision Authority
Major media
With its shares having been quoted on the Helsinki Stock Exchange since 2001,
Done Solutions is organized into three business areas: Systems (Done Logistics)
provides comprehensive intralogistics systems, based on automated
materials-handling and supporting information systems; Services (Done
Information) provides multilingual documentation and visualization services; and
Health Care (Tiolat) provides iCare-tonometers for eye specialists and
opticians.
GROUP KEY FIGURES AND RATIOS (MEUR) Q1-Q2/2007 Q1-Q2/2006 2006
Net sales 10.0 7.3 14.3
Operating profit 1.4 0.7 1.5
Operating margin, % 13.9 9.8 10.3
Pre-tax profit 1.4 0.7 1.5
Pre-tax profit, % 14.0 10.2 10.5
Net profit 1.0 0.6 3.5
Net profit, % 10.3 8.3 24.2
Gross capital expenditure 0.1 0.0 5.4
Gross capital expenditure, % of net sales 0.7 0.4 37.7
R&D costs 0.2 0.1 0.3
R&D costs, % 1.6 1.9 2.0
Gearing, % -7.8 -28.0 -1.8
Equity ratio, % 69.6 53.5 63.7
Return on investment (ROI), % 23.4 22.7 17.1
Return on equity (ROE), % 18.5 25.2 43.3
Earnings per share, cont. operations EUR 0.016 0.010 0.056
Earnings per share, discont.operations EUR 0.000 0.000 0.000
Equity per share, EUR 0.171 0.079 0.165
Average no. of employees 136 132 133
Cash flow from operating activities 1.5 -0.1 0.6
Cash flow from investing activities -0.1 -0.0 -2.1
Net cash used in financing activities -2.7 0.2 0.2
Total cash flow -1.2 0.1 1.3
CONSOLIDATED INCOME STATEMENT (MEUR) Q1-Q2/2007 Q1-Q2/2006 2006
NET SALES 10.0 7.3 14.3
Other operating income 0.0 0.0 0.1
Materials and services -3.8 -2.3 -4.3
Employee benefits -3.2 -3.1 -6.0
Depreciation/amortization -0.3 -0.1 -0.4
Other operating expenses -1.2 -1.1 -2.2
OPERATING PROFIT 1.4 0.7 1.5
Share of associates' results 0.0 0.0 0.1
Financial expenses (net) -0.0 0.0 -0.0
PRE-TAX PROFIT 1.4 0.7 1.5
Income tax expense -0.4 -0.1 2.0
Minority interest 0.0 -0.1 0.0
NET PROFIT, continuing operations 1.0 0.6 3.5
Net profit, discontinued operations 0.0 0.0 0.0
NET PROFIT 1.0 0.6 3.5
Earnings per share, basic EUR 0.016 0.010 0.056
Earnings per share, diluted EUR 0.016 0.010 0.056
CONSOLIDATED INCOME STATEMENT (MEUR) Q2/2007 Q2/2006
NET SALES 4.8 3.6
Other operating income 0.0 0.0
Materials and services -1.8 -1.1
Employee benefits -1.6 -1.6
Depreciation/amortization -0.2 -0.1
Other operating expenses -0.7 -0.5
OPERATING PROFIT 0.5 0.3
Share of associates' results 0.0 -0.0
Financial expenses (net) 0.0 -0.0
PRE-TAX PROFIT 0.5 0.3
Income tax expense -0.1 -0.0
Minority interest 0.0 -0.0
NET PROFIT, continuing operations 0.4 0.2
Net profit, discontinued operations 0.0 0.0
NET PROFIT 0.4 0.2
CONSOLIDATED BALANCE SHEET(MEUR) June 30,‘07 June 30,‘06 Dec. 31,‘06
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 0.6 0.5 0.6
Goodwill 3.1 1.2 3.1
Intangible assets 4.7 1.7 4.9
Shares in associates 0.4 0.4 0.4
Available-for-sale assets 0.0 0.0 0.0
Receivables 0.4 0.4 0.4
Deferred tax assets 1.7 0.0 2.2
TOTAL NON-CURRENT ASSETS 10.9 4.2 11.5
CURRENT ASSETS
Inventories 0.3 0.1 0.2
Trade and other receivables 4.4 2.9 3.1
Cash and cash equivalents 1.2 3.8 2.4
TOTAL CURRENT ASSETS 5.9 6.9 5.7
TOTAL ASSETS 16.8 11.1 17.2
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS'S EQUITY
Share capital 5.3 4.8 5.3
Share premium 2.4 1.1 2.4
Fair value reserve 0.3 0.3 0.3
Revaluation reserve 1.5 0.0 1.5
Retained earnings/loss 1.8 -1.5 1.4
TOTAL EQUITY, attributable to holders
of parent company equity 11.3 4.8 11.0
MINORITY INTEREST 0.0 1.1 0.0
TOTAL SHAREHOLDERS' EQUITY 11.3 5.9 11.0
LIABILITIES
LONG-TERM LIABILITIES
Deferred tax liabilities 1.2 0.4 1.3
Provisions 0.6 0.5 0.5
Interest-bearing liabilities 0.3 1.1 1.2
Other payables 0.0 0.0 0.0
TOTAL LONG-TERM LIABILITIES 2.1 2.1 3.1
SHORT-TERM LIABILITIES
Advance payments 0.5 0.1 0.0
Trade and other payables 2.8 2.0 2.1
Provisions 0.1 0.0 0.1
Interest-bearing liabilities 0.0 1.0 1.0
TOTAL SHORT-TERM LIABILITIES 3.4 3.1 3.1
TOTAL LIABILITIES 5.5 5.2 6.3
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 16.8 11.1 17.2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (MEUR)
Share Share Other Retained Minority Total
capital premium reserves earnings interest equity
Balance Jan. 1, 2006 4.8 1.0 0.3 -2.0 1.0 5.0
Paid dividends to
minority shareholders 0.0 0.0 0.0 -0.0 0.0 -0.0
Share subscriptions
based on stock options 0.1 0.1 0.0 0.0 0.0 0.2
Net profit 0.0 0.0 0.0 0.6 0.0 0.6
Balance June 30, 2006 4.8 1.0 0.3 -1.5 1.1 5.9
Private placement 0.5 1.4 1.5 0.0 0.0 3.5
Net profit 0.0 0.0 0.0 3.5 0.0 3.5
Balance Dec. 31, 2006 5.3 2.4 1.8 1.4 0.0 11.0
Dividend distribution 0.0 0.0 0.0 -0.7 0.0 -0.7
Net profit 0.0 0.0 0.0 1.0 0.0 1.0
Balance June 30, 2007 5.3 2.4 1.8 1.8 0.0 11.3
CONSOLIDATED CASH FLOW STATEMENT
(MEUR) June 30,‘07 June 30,‘06 Dec. 31,‘06
Net profit 1.0 0.6 3.5
Adjustments to net profit 0.7 0.5 -1.6
Change in working capital -0.2 -1.2 -1.3
Interest paid -0.0 -0.1 -0.1
Interest received 0.0 0.0 0.2
CASH FLOW FROM OPERATING ACTIVITIES 1.5 -0.1 0.6
Acquisition of subsidiary 0.0 0.0 -2.2
Disposal of operations 0.0 0.0 0.0
Purchase of PPE and intangible assets -0.1 -0.0 -0.1
Payments of other investments 0.0 0.0 0.1
NET CASH USED IN INVESTING ACTIVITIES -0.1 -0.0 -2.1
Rights issue 0.0 0.2 0.2
Paid dividends -0.7 0.0 0.0
Repayments of long-term borrowings -2.0 0.0 0.0
Finance lease principal payments -0.0 -0.0 -0.0
NET CASH USED IN FINANCING ACTIVITIES -2.7 0.2 0.2
Net change in cash and equivalents -1.2 0.1 -1.3
Cash and equivalents, period-start 2.4 3.7 3.7
Cash and equivalents, period-end 1.2 3.8 2.4
CONTINGENT LIABILITIES (MEUR) June 30,‘07 June 30,‘06 Dec. 31,‘06
Mortgages given 0.3 0.3 0.3
Pledges given 2.7 2.9 2.7
Securities given 2.2 1.0 1.3
Finance lease liabilities 0.1 0.1 0.1
Operating lease liabilities 0.1 0.2 0.3
NET SALES AND OPERATING PROFIT BY QUARTERS (MEUR)
MEUR Q2/2007 Q1/2007 Q4/2006 Q3/2006 Q2/2006 Q1/2006
Net sales 4.8 5.2 4.1 2.9 3.6 3.8
Operating profit 0.5 0.9 0.5 0.3 0.3 0.4
Operating profit, % 11.1 16.6 12.1 9.4 8.6 10.9
The figures (inc. comparatives) in this report are in compliance with IFRS.
The accounting principles in this report equal to the principles in financial
report 2006. The data in this report are based on unaudited figures.
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