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2011-10-20 08:07:00 CEST 2011-10-20 08:07:55 CEST REGULATED INFORMATION QPR Software - Interim report (Q1 and Q3)INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2011QPR SOFTWARE PLC STOCK EXCHANGE RELEASE 20 OCTOBER, 2011 AT 9.00 AM INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2011 QPR SOFTWARE'S NET SALES ROSE TO EUR 5.3 MILLION, OPERATING MARGIN 9.2%, EARNINGS PER SHARE EUR 0.03 Summary January - September 2011: -- Net sales EUR 5,324 thousand (January - September 2010: 5,017), growth 6.1% -- Operating profit EUR 488 thousand (480), growth 1.7% -- Operating profit margin 9.2% (9.6) of consolidated net sales -- Cash flow from operating activities was EUR 1,046 thousand (762), growth 37.3% -- Earnings per share EUR 0.03 (0.02) July - September 2011: -- Net sales EUR 1,772 thousand (July - September 2010: 1,574), growth 12.6% -- Operating profit EUR 152 thousand (164), decrease 7.3% -- Operating profit margin 8.6% (10.4) of consolidated net sales -- Cash flow from operating activities was EUR 64 thousand (267), decrease 76.0% -- Earnings per share EUR 0.01 (0.01) Outlook 2011: Outlook for 2011 remains unchanged. QPR Software estimates the consolidated net sales 2011 to show significantly faster growth than in the previous year (growth in year 2010: 4.8%) and operating profit to remain approximately 10% of net sales. The forecast includes acquired operations of Nobultec Ltd as of 1 August, 2011. In Finland, growth is expected especially in software subscription net sales and enterprise architecture services sales. In international markets, growth is expected from Russia and CIS countries. KEY FIGURES (EUR 1,000) July- July - Change Jan - Jan - Change Jan - Sept, Sept, , Sept, Sept, , Dec, 2011 2010 % 2011 2010 % 2010 Net sales 1,772 1,574 12.6 5,324 5,017 6.1 6,937 Operating profit 152 164 -7.3 488 480 1.7 752 % of net sales 8.6 10.4 9.2 9.6 10.8 Profit before tax 150 153 -2.0 462 400 15.5 707 Profit for the period 113 98 15.3 360 286 25.9 527 % of net sales 6.4 6.2 6.8 5.7 7.6 Earnings per 0.03 0.02 0.04 share, EUR EPS (diluted), 0.03 0.02 0.04 EUR Equity per 0.22 0.20 0.22 share, EUR Cash flow from operating 1,046 762 864 activities Cash and cash equivalents 913 1,833 1,703 Net liabilities -347 -962 -910 Gearing, % -12.4 -38.1 -33.8 Equity ratio, % 52.7 44.6 42.6 Return on equity, % 17.5 14.9 20.0 Return on investment, % 19.0 16.3 21.0 REPORTING This interim report complies with accounting and valuation principles of IFRS, but in preparations not all the requirements of the IAS 34 standard have been considered. The accounting and valuation principles are the same as they were in the 2010 financial statements. This report is unaudited. QPR Software´s business operations consist of software license, subscription, maintenance and professional services sales. As of January 1, 2011 QPR Software has two segments; Software Sales International (software license and subscription sales, maintenance and professional services sales outside of Finland) and Business Operations Finland (software license and subscription sales, maintenance and professional services sales in Finland). CEO´S BUSINESS REVIEW QPR Software´s net sales growth accelerated to 12.6% in the third quarter. Majority of the growth was attributable to consolidation of Nobultec Ltd into QPR Software Group as of 1 August 2011. Furthermore, software and service net sales in Finland (excluding Nobultec) continued to develop favorably. July-September net sales in Finland grew 51.2% year-on-year while profitability improved. Service business expansion in Finland to enterprise architecture consulting proceeded as planned. In the review period we focused on offering development, service product development and marketing. The Group´s international net sales in the review period have decreased slightly (-6.8%), which is mainly due to a decrease in software license sales of our international channel partners. In contrast, our Russian subsidiary has performed well in Russia and CIS countries, which has had a positive impact on international net sales development. The launch of QPR ProcessAnalyzer software in early 2011 has been very successful. QPR ProcessAnalyzer software sales and related process analysis service sales in Finland have developed favorably throughout the year. International QPR ProcessAnalyzer business has also had a good start. QPR has initiated the first software deliveries and signed the first international reseller contracts in Europe and in the US. QPR aims at strong international software sales growth and significant market share in this new category. QPR ProcessAnalyzer discovers organization's actual as-is business processes automatically based on existing event data stored in IT-systems. In addition to visual business process models, the software reveals information about process variations, deviations and allows drill-down to individual cases. QPR ProcessAnalyzer is used to streamline business processes, develop IT systems and make better quality. Jari Jaakkola CEO NET SALES July - September QPR Software Group´s net sales in July - September were EUR 1,772 thousand (1,574) and grew 12.6% compared to the equivalent period in the previous year. Business operations in Finland represented 52.3% and international operations 47.7% of net sales. QPR Software´s net sales in Finland rose 51.2% from previous year. Consolidation of Nobultec Ltd as of 1 August 2011 and success in software subscription sales accelerated net sales growth. The company´s expansion into enterprise architecture management and process analysis consulting business led to growth in professional services net sales. International net sales decreased 12.1% compared to previous year. This was mainly due to decrease in international channel net sales. QPR aims to step up recruitment of new reseller partners especially for QPR ProcessAnalyzer and QPR EnterpriseArchitect software products. Furthermore, the company aims to invest in developing replicable solutions for its existing reseller partners. January - September QPR Software Group´s net sales in January - September were EUR 5,324 thousand (5,017) and grew 6.1% compared to the equivalent period in the previous year. Business operations in Finland represented 48.1% and international operations 51.9% of net sales. QPR Software´s net sales in Finland rose 24.8 %, mainly due to strong growth in software net sales and consolidation of Nobultec Ltd in the beginning of August. International net sales decreased 6.8% compared to previous year due to a decline in channel net sales. The decrease in international net sales was partly offset through QPR´s Russian subsidiary´s strong net sales growth in Russia and CIS countries. In Finland, the Company delivered software and professional services in the reporting period, among others, to Carea, Central Finland Healthcare District, City of Imatra, CRH Finland, DNA Oyj, Elisa Corporation, Kesko Corporation, Helsinki University, Mikkeli University of Applied Sciences, The Finnish National Board of Education, Nordic Investment Bank, Onninen Group, Outotec Corporation, Patria Corporation, Rautaruukki Corporation,Relia Group, SATO Corporation, Terveystalo, Vacon, City of Varkaus, Vaisala Corporation, Oy Woikoski Ab and the Municipal IT unit of the Ministry of Finance. The largest markets outside Finland in the reporting period were Russia, South Africa, Sweden, Belgium, Great Britain and Japan. The Company delivered software, among others, to Abu Dhabi Sewerage Services Company in United Arab Emirates, Anglo Platinum and Real People in South Africa, City of Antwerp and Sibelco in Belgium, City of Moscow, IRKUT and TNK-BP in Russia, The Ministry of Health in Lithuania, Millennium Bank in Romania, The Ministry of Justice in Lithuania, Millard Filters in Spain, The University of Santiago in Chile, United Chemical Company in Kazakhstan, Vattenfall in Sweden and to Aramark in the United States of America. Consolidated net sales by business segments, (EUR 1,000): Software Sales Business Operations Total International Finland July - Sept, 2011 845 927 1,772 Share-% 47.7 52.3 100.0 July - Sept, 2010 961 613 1,574 Share-% 61.1 38.9 100.0 Change-% -12.1 51.2 12.6 Jan - Sept, 2011 2,761 2,563 5,324 Share-% 51.9 48.1 100.0 Jan - Sept, 2010 2,964 2,053 5,017 Share-% 59.1 40.9 100.0 Change-% -6.8 24.8 6.1 Jan - Dec, 2010 4,077 2,860 6,937 Consolidated net sales by product group (EUR 1,000): Software Maintenance Professional Total licenses services services July - Sept, 354 937 481 1,772 2011 Share-% 20.0 52.9 27.1 100.0 July - Sept, 470 884 220 1,574 2010 Share-% 29.9 56.1 14.0 100.0 Change-% -24.7 6.0 118.6 12.6 Jan - Sept, 2011 1,257 2,800 1,267 5,324 Share-% 23.6 52.6 23.8 100.0 Jan - Sept, 2010 1,439 2,692 886 5,017 Share-% 28.7 53.6 17.7 100.0 Change-% -12.6 4.0 43.0 6.1 Jan - Dec, 2010 2,101 3,622 1,214 6,937 PROFIT DEVELOPMENT July - September QPR Software's consolidated operating profit in July - September was EUR 152 thousand (164). Operating profit in Finland business operations increased due to increased net sales, but decrease in channel net sales had an adverse impact on profitability in international operations. Consolidation of Nobultec Ltd had a slightly negative impact on Group operating profit after amortization of the acquisition cost. Depreciation and amortization were EUR 157 thousand (151). January - September QPR Software's consolidated operating profit in January - September was EUR 488 thousand (480). Depreciation and amortization were EUR 421 thousand (431). Growth in operating profit was due to positive net sales development in Business Operations Finland. Growth in operating profit was adversely impacted by 7.4% rise in costs. Cost increase was due to outlays in business development. Outlays in the reporting period were focused mainly on Finnish and Russian markets, and the largest share of those were salary costs. Operating profit by segments (EUR 1,000): Software Sales Business Operations Not Total International Finland allocated July - Sept, 67 180 -95 152 2011 July - Sept, 178 69 -83 164 2010 Change-% -62.4 160.9 -14.5 -7.3 Jan - Sept, 309 445 -266 488 2011 Jan - Sept, 525 207 -252 480 2010 Change-% -41.1 115.0 -5.6 1.7 Jan - Dec, 777 320 -345 752 2010 FINANCE AND INVESTMENTS Cash flow from operating activities in the reporting period January - September was EUR 1,046 thousand (762). Strong growth in software subscription sales in the reporting period had a positive effect on cash flow from operating activities. Cash flow from operating activities in July - September was EUR 64 thousand (267) and smaller than in previous year. This was due to changes in working capital. Cash and cash equivalents at the end of the reporting period were EUR 913 thousand (1,833). The Group's investments totaled to EUR 1,324 thousand (227). The largest investment was the acquisition of 100% of shares in Nobultec Ltd. The total acquisition cost (including provisional purchase price, subject to reaching targets set for financial results in 2011 and 2012) was EUR 978 thousand. EUR 402 thousand of the total acquisition cost was allocated into Nobultec´s customer relationships and will be amortized in 5 years. A goodwill of EUR 516 thousand arising on the acquisition will be regularly tested. Furthermore, investments include payments of a total of EUR 165 thousand for business operations bought from QPR´s Russian resellers in November 2009. The purchase price for these operations was set at EUR 272 thousand, including transaction costs. The price was set according to the terms agreed in purchase agreement and the financial results of the acquired operations between 1 March 2010 and 28 February 2011. The price is compensation for business operations that were transferred into OOO QPR Software. As part of the purchase price, the sellers received also 20% share ownership in OOO QPR Software. For this 20% shareholding, a call option for QPR and put option for the sellers, have been agreed. These options can be exercised in January 2014, the earliest. The Group´s interest bearing liabilities decreased and were EUR 566 thousand (871) at the end of reporting period. The gearing ratio was -12.4% (-38.1). Return on capital employed was 19.0% (16.3). Current liabilities include deferred revenue in total of EUR 1,306 thousand (1,222). At the end of the reporting period, quick ratio was 1.91 (2.33). At the end of the reporting period, consolidated shareholders' equity stood at EUR 2,793 thousand (2,529) and equity to assets ratio was 52.7% (44.6). Return on equity was 17.5% (14.9). As of 30 September 2011, the remaining amount of deferred tax assets in consolidated balance sheet was EUR 163 thousand (306) and the amount of deferred tax liabilities was EUR 103 thousand (0). PERSONNEL At the end of the reporting period, the Group employed a total of 78 persons (62). Out of them 9 were employed by Group's Russian subsidiary. Average number of personnel in the reporting period was 71 (63). PRODUCT AND SERVICE DEVELOPMENT The amount of product development expenses in the reporting period were EUR 1,011 thousand (943), representing 19.0% (18.8) of consolidated net sales. Product development expenses do not include amortization of capitalized expenses. In the reporting period, product development expenses have been activated as assets for a total amount of EUR 250 thousand (162). The amortization period for capitalized product development expenses is 4 years. Amortization of product development expenses in the reporting period was EUR 149 thousand (146). Product development employed 16 persons at the end of reporting period, which corresponds to 20.5% of the total personnel. Product development activities in the reporting period were focused on the development of a new QPR Suite 2012 product family, planned to be released at the end of 2011. In the upcoming release, the product family also includes a new version of QPR ProcessAnalyzer software product. The software executes automatically visual process analysis from depository data in business applications. Additional resources were allocated into the development of QPR ProcessAnalyzer software, published in February 2011. In the review period, QPR developed a new process analysis solution aimed at efficiency increases in SAP systems, especially in order-to-cash processes. The users of this solution in Finland include Onninen Oy, Rautaruukki Corporation and Metsäliitto, among others. In early 2011, QPR introduced a solution for public sector enterprise architecture, based on Finnish public sector JHS 179 recommendation. The first project deliveries based on this solution were initiated in the review period. SHARES AND TRADING WITH COMPANY'S SHARES Trading of shares Jan - Sept, Jan - Sept, Jan - Dec, 2011 2010 2010 -------------------------------------------------------------------------------- Shares traded, pcs 573,241 759,446 881,585 Volume, EUR 478,494 698,995 805,808 % of shares 4.6 6.1 7.1 -------------------------------------------------------------------------------- Shares and market values Sept 30, Sept 30, December 31, 2011 2010 2010 -------------------------------------------------------------------------------- Total number of shares, pcs 12,444,863 12,444,863 12,444,863 Treasury shares, pcs 149,429 291,534 322,212 Book counter value, EUR 0.11 0.11 0.11 Outstanding shares, pcs 12,295,434 12,153,329 12,122,651 Number of Shareholders 591 605 600 Closing price, EUR 0.78 0.95 0.91 Market value, EUR 9,590,439 11,545,663 11,031,612 Acquired treasury shares in reporting 76,238 33,534 64,212 period, pcs Released of treasury shares in -249,021 0 0 reporting period, pcs Book counter value of treasury 16,437 32,069 35,443 shares, EUR Total purchase value of treasury 132,914 247,629 274,701 shares, EUR Treasury shares % 1.2 2.3 2.6 -------------------------------------------------------------------------------- Company has no active option scheme. OTHER EVENTS IN THE REPORTING PERIOD QPR Software Plc's Management System received ISO 9001:2008 quality certification covering the Company's all actions in January. QPR Software Plc's Board of Directors decided on 25 March 2011 a new share-based incentive plan for the Group's executive management team. The plan aims to align the objectives of shareholders and key employees to increase shareholders value, to commit key employees to the company and to offer them a competitive reward plan based on ownership of shares in the company. Sami Tähtinen was appointed as Vice President, Products and Technology and Member of Executive Management Team at QPR Software Plc in January 2011. He moved to QPR from CCC Corporation Ltd. Prior to this Mr. Tähtinen worked as Chief Technology Officer in Frends Technology from 2002 to 2009. Sami Tähtinen holds a Master's degree in Engineering. Maija Erkheikki, M.Sc.(Eng), was appointed in July as Vice President for Software Sales International as of 15 August, 2011. Her latest position in QPR was Vice President, Service & Solutions. Mikko Mäki-Rahkola, M.Sc (Econ), M.Sc (tech) was appointed in July a Member of the Executive Management Team as of 15 August, 2011. Mikko Mäki-Rahkola is Nobultec Oy´s Managing Director. As of 15 August 2011, QPR Software´s Executive Management Teams consists of Chief Executive Officer Jari Jaakkola (chairman); Vice President, Software Sales International Maija Erkheikki; Vice President, Business Operations Finland Matti Erkheikki; Vice President, Communications and Marketing Jyrki Karasvirta; Vice President, Business Development Teemu Lehto; Chief Financial Officer Päivi Martti; Nobultec´s Managing Director Mikko Mäki-Rahkola and Vice President, Products and Technology Sami Tähtinen. QPR Software Plc announced on 28 July 2011 its acquisition of all of the issued shares of its co-operation partner Nobultec Oy. The transaction took place on August 1, 2011. Nobultec Oy is a service company that specializes in business process development in SAP system environments. As the transaction took place, Nobultec became QPR Software Plc's 100% owned subsidiary. QPR has paid the base consideration, EUR 840 thousand, to the sellers in August and September. The payments were made in cash and QPR Software Plc´s shares. GOVERNANCE The Annual Shareholders' Meeting held on 18 March, 2011 approved the Board's proposal that a per-share dividend of EUR 0.03 (0.02), a total of EUR 362,876 (243,737), is paid for the financial year 2010. The dividend was paid to shareholders entered in the Company's shareholder register, maintained by Euroclear Finland Oy, on the record date of 23 March, 2011. The dividend payment date was 1 April, 2011. The Annual Shareholders' Meeting resolved that the Board of Directors consists of four (4) ordinary members. The Annual Shareholders' Meeting elected the following members to the Board of Directors: Aino-Maija Gerdt, Jyrki Kontio, Vesa-Pekka Leskinen and Asko Piekkola. In its first meeting immediately following the Annual Shareholders' Meeting, the Board of Directors elected Vesa-Pekka Leskinen as Chairman of the Board. KPMG Oy Ab, Authorized Public Accountants, continued as QPR Software Plc's Auditors. The Annual Shareholders' Meeting decided to authorize the Board of Directors to decide on an issue of new shares and acquisition of its own shares from the market. The conditions of all authorizations of the Board and other decisions made by the Annual Shareholders' Meeting are available in their entirety on the stock exchange release published by the Company on 18 March, 2011 and available on the investors section of the company's web site, www.qpr.com. SHORT-TEM RISK AND UNCERTAINTIES Internal control and risk management in QPR Software Plc aims to ensure that the Company operates efficiently and effectively, distributes reliable information, complies with regulations and operational principles, reaches its strategic goals and ensures continuity of its business. QPR has identified the following three groups of risks related to its operations: risks related to business operations (country, customer, net sales forecasting process, personnel, legal and financial), risks related to information and products (QPR products, IPR, data security) and risks related to financing (foreign currency, bad debt). Property, operational and liability risks are covered by insurance. QPR monitors country, customer, personnel and finance risks also in the Russian subsidiary OOO QPR Software. Financial risks include reasonable credit risk concerning individual business partners, which is characteristic to any international business. QPR seeks to limit this credit risk by continuous monitoring of standard payment terms, receivables and credit limits. The management of QPR estimates that the company´s credit loss risk is on a customary and reasonable level. The Company has not hedged of its foreign currency (non-Euro) trade receivables at the end of the reporting period. No significant changes have taken place in QPR's short-term risks and uncertainties during the financial period. Risks related to QPR Software´s business are further described in the Annual Report 2010, page 15 onwards (http://www.qpr.com/investors/key-figures-and-reports.htm). FUTURE OUTLOOK Market forecasts published in the beginning of 2011 estimate that the value of global software sales will increase approximately 7.5% and global professional services sales will increase 5-8% in 2011 compared to 2010. QPR Software estimates the consolidated net sales 2011 to show significantly faster growth than in the previous year (growth in year 2010: 4.8%) and operating profit to remain approximately 10% of net sales. The forecast includes acquired operations of Nobultec Oy as of 1 August, 2011. In Finland, growth is expected especially in software subscription net sales and enterprise architecture services sales. In international markets, growth is expected from Russia and CIS countries. Seasonality of large software deals can affect significantly net sales and profit of one individual quarter. QPR SOFWARE PLC BOARD OF DIRECTORS Further information: Jari Jaakkola, CEO Tel. +358 (0)40 5026 397 www.qpr.com DISTRIBUTION: NASDAQ OMX Helsinki Ltd Main Media Neither this press release nor any copy of it may be taken, transmitted into or distributed in the United States of America or its territories or possessions. CONSOLIDATED INCOME STATEMENT (EUR 1,000) July - July - Jan - Jan - Jan - Sept, Sept, Sept, Sept, Dec, 2011 2010 2011 2010 2010 Net sales 1,772 1,574 5,324 5,017 6,937 Other operating income 12 13 50 50 94 Material and services 78 50 184 160 227 Employee benefits expenses 1,058 925 3,233 2,974 4,094 Depreciation 157 151 421 431 532 Other operating expenses 339 297 1,048 1,023 1,426 Operating profit 152 164 488 480 752 Financial income and expenses -2 -11 -26 -80 -45 Profit before tax 150 153 462 400 707 Income tax expense -36 -55 -102 -114 -180 Profit for the period 113 98 360 286 527 Profit for the period attributable to: Equity holders of the 124 92 368 287 527 parent company Non-controlling interest -3 6 -8 -1 0 -------------------------------------------------------------------------------- 121 98 360 286 527 Earnings per share (diluted), EUR 0.01 0.01 0.03 0.02 0.04 Earnings per share, EUR 0.01 0.01 0.03 0.02 0.04 Consolidated Statement of comprehensive income: Profit for the period 113 98 360 286 527 Exchange differences on -26 -21 -41 72 23 translating foreign operations Income tax relating - - - - - to components of other comprehensive income Total comprehensive income 87 77 319 358 550 Total comprehensive income attributable to: Equity holders of the 90 71 327 359 550 parent company Non-controlling interest -3 6 -8 -1 0 -------------------------------------------------------------------------------- 87 77 319 358 550 CONSOLIDATED BALANCE SHEET (EUR 1,000) Sept 30, Sept 30, Dec 31, 2011 2010 2010 Assets Non-current assets Tangible assets 115 102 85 Other intangible assets 2,273 1,558 1,400 Other investments 5 5 5 Other long-term receivables 31 0 43 Deferred tax assets 163 306 233 Total non-current assets 2,587 1,971 1,766 Current assets Trade and other receivables 3,096 3,088 3,781 Cash and cash equivalents 913 1,833 1,703 Total current assets 4,009 4,921 5,484 Total assets 6,596 6,892 7,250 ================================================================================ Equity and liabilities Sept 30, Sept 30, Dec 31, 2011 2010 2010 Equity Share capital 1,359 1,359 1,359 Reserve fund 21 21 21 Invested non-restricted equity fund 5 5 5 Translation differences -112 -22 -70 Treasure shares -133 -248 -275 Retained earnings 1,660 1,413 1,653 Equity attributable to shareholders of the parent 2,800 2,528 2,693 company Non-controlling interest -7 1 1 Total equity 2,793 2,529 2,694 Non-current liabilities Interest-bearing liabilities 340 566 566 Non-Interest-bearing liabilities 56 0 0 Total non-current liabilities 396 566 566 Current liabilities Accounts payables and other payables 3,078 3,492 3,763 Interest-bearing liabilities 226 305 227 Deferred tax liabilities 103 0 0 Total current liabilities 3,407 3,797 3,990 Total liabilities 3,803 4,363 4,556 Total equity and liabilities 6,596 6,892 7,250 ================================================================================ CONSOLIDATED CASH FLOW STATEMENT (EUR 1,000) Jan-Sept, Jan-Sept, Jan-Dec, 2011 2010 2010 Cash flow from operating activities Profit for the period 360 286 527 Adjustments for the profit 488 539 606 Working capital changes 196 -20 -195 Interest and other financial expenses paid -16 -33 -42 Interest and other financial income 18 18 8 received Income taxes paid 0 -28 -40 Net cash from operating activities 1,046 762 864 Cash flow from investing activities Acquired subsidiaries -565 0 0 Purchases of tangible and intangible assets -605 -227 -350 Net cash used in investing activities -1,170 -227 -350 Cash flow from financing activities Repayments of long term loans -226 -226 -305 Purchases of treasury shares -75 -39 -66 Invested non-restricted equity fund 0 -122 -122 distribution Dividends paid -362 -244 -244 Net cash used in financing activities -663 -631 -736 Net change in cash and cash equivalents -788 -96 -222 Cash and cash equivalents in the beginning 1,703 1,929 1,929 of period Effects of exchange rate changes on cash and -2 0 -4 cash equivalents Cash and cash equivalents in the end of 913 1,833 1,703 period CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY JANUARY 1 - SEPTEMBER 30, 2011 (EUR 1,000) Jan 1, Purchase of Release of Divide Compre-hen Sept 2011 treasury treasury nds sive 30, shares shares paid income 2011 Share capital 1,359 1,359 Reserve fund 21 21 Translation -70 -42 -112 difference Treasury shares -275 -75 217 -133 Invested 5 5 non-restricted equity fund Dividend paid -362 -362 Retained 1,653 369 2,022 earnings Non-controlling 1 -8 -7 interest Total 2,694 -75 217 -362 319 2,793 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY JANUARY 1 - SEPTEMBER 30, 2010 (EUR 1,000) Jan 1, Purchase of Dividends Compre-hensi Sept 30, 2010 treasury shares paid ve income 2010 Share capital 1,359 1,359 Reserve fund 21 21 Translation -94 72 -22 difference Treasury shares -209 -39 -248 Invested 127 -122 5 non-restricted equity fund Dividend paid 0 Retained earnings 1,371 -244 286 1,413 Non-controlling 0 1 1 interest Total 2,575 -39 -366 359 2,529 APPENDIX ACCOUNTING PRICIPLES OF CONSOLIDATED FINANCIAL STATEMENTS This interim report complies with accounting and valuation principles of IFRS, but in preparations not all the requirements of the IAS 34 standard have been considered. The company has adopted certain new or revised IFRS standards and IFRIC interpretations at the beginning of the financial period as descripted in the Financial Statements for 2010. However, the adaption of these new and amended standards has not yet had an effect on the reported figures in practice. In other respects, the same accounting policies have been followed as in the Financial Statements for 2010. Upon closing of consolidated financial statements, the Group makes estimates and assumptions regarding the future and makes considerations on the adoption of accounting principles, which means that the actual results may differ from those reported. The amounts presented in the income statement and balance sheet are consolidated figures. The amounts presented in the report are rounded, so the sum of individual figures may differ from the sum reported. The Interim Report is unaudited. GROUP COMMITMENTS AND CONTIGENT LIABILTIIES (EUR 1,000) Sept 30, Sept 30 Dec 31, 2011 2010 2010 Business mortgage 1,337 1,337 1,337 Current lease liabilities Liabilities maturing during one year 334 201 235 Liabilities maturing 2-5 years 71 107 53 Total 405 308 289 Total commitments and contingent liabilities 1,742 1,645 1,626 CURRENCY HEDGING (EUR 1,000) Sept 30, Sept 30 Dec 31, 2011 2010 2010 Nominal value 0 155 260 Current value 0 7 -2 GROUP INTANGIBLE AND TANGIBLE ASSETS Change in intangible assets (EUR 1,000) Sept 30, 2011 Sept 30, 2010 Dec 31, 2010 Acquisition cost Jan 1 3,805 3,494 3,494 Increase 1,231 195 311 Change in tangible assets (EUR 1,000) Sept 30, 2011 Sept 30, 2010 Dec 31, 2010 Acquisition cost Jan 1 1,021 983 983 Increase 56 32 38 CHANGE IN GROUP'S INTEREST BEARING LIABILITIES (EUR 1,000) Sept 30, 2011 Sept 30, 2010 Dec 31, 2010 Interest bearing loans Jan 1 792 1,098 1,098 Withdrawals 0 0 0 Repayments -226 -226 -305 Interest bearing loans 566 871 792 30 Sept CONSOLIDATED INCOME STATEMENT PER QUARTER (EUR 1,000) Jan - Jan - April - April - July - July - Oct - March, March, June, June, Sept, Sept, Dec, 2011 2010 2011 2010 2011 2010 2010 Net sales 1,768 1,671 1,784 1,773 1,772 1,574 1,920 Other 21 34 17 3 12 13 44 operating income Material and 34 47 72 63 78 50 67 services Employee 1,122 1,009 1,053 1,040 1,058 925 1,120 benefits expenses Depreciation 130 129 134 151 157 151 101 Other 346 375 363 351 339 297 403 operating expenses Operating 157 145 179 171 152 164 273 profit Financial -16 -25 -8 -45 -2 -11 34 income and expenses Profit 141 120 171 126 150 153 307 before tax Income tax -41 -25 -24 -33 -36 -55 -66 expenses Profit for 100 95 147 93 113 98 241 the period CONSOLIDATED INCOME STATEMENT BY SEGMENT (EUR 1,000) July - July - Jan - Jan - Jan - Sept, 2011 Sept, 2010 Sept, Sept, Dec, 2011 2010 2010 Net sales Software Sales 845 961 2,761 2,964 4,077 International Business 927 613 2,563 2,053 2,860 Operations Finland Not allocated 0 0 0 0 0 Total net sales 1,772 1,574 5,324 5,017 6,937 Operating profit Software Sales 67 178 309 525 777 International Business 180 69 445 207 320 Operations Finland Not allocated -95 -83 -266 -252 -345 Total operating profit 152 164 488 480 752 Financial income and -2 -11 -26 -80 -45 expenses Income tax expense -36 -55 -102 -114 -180 Profit for the period 113 98 360 286 527 Other information Depreciation Software Sales 72 84 205 230 267 International Business 85 67 216 201 265 Operations Finland Total depreciation 157 151 421 431 532 GROUP KEY FIGURES EUR (1,000) Jan - Sept, 2011 Jan - Sept, 2010 Net sales 5,324 5,017 Net sales growth,% 6.1 4.2 Operating profit 488 480 % of net sales 9.2 9.6 Profit or loss before tax 462 400 % of net sales 8.7 8.0 Profit for the period 360 286 % of net sales 6.8 5.7 Return on equity,% 17.5 14.9 Return on investment,% 19.0 16.3 Interest bearing liabilities 566 871 Cash and cash equivalents 913 1,833 Net liabilities -347 -962 Equity 2,793 2,529 Gearing,% -12.4 -38.1 Equity ratio,% 52.7 44.6 Total balance sheet 6,596 6,892 Investments in non-current assets 1,324 227 % of net sales 24.9 4.5 Research and development expenses 1,011 943 % of net sales 19.0 18.8 Average number of personnel 71 63 Personnel at the beginning of period 65 57 Personnel at the end of period 78 62 Earnings per share, € 0.03 0.02 Earnings per share (diluted), € 0.03 0.02 Equity per share, € 0.22 0.20 CALCULATION OF KEY INDICATORS Return on equity (ROE), %: Profit for the period x 100 ______________________________ Shareholders' equity (average) Return on investment (ROI), %: Profit before taxes + interest and other financial expenses x 100 _________________________________________________________________ Balance sheet total - non-interest bearing liabilities (average) Equity ratio, %: Shareholders' equity x 100 ______________________________________ Balance sheet total - deferred revenue Gearing, %: Interest bearing liabilities - cash and cash equivalents x 100 ______________________________________________________________ Shareholders' equity Earnings per share, euro: Profit for period __________________________________________________________ Adjusted number of shares over the financial year (average) Equity per share, euro: Shareholders' equity ____________________________________________________________ Adjusted number of shares at the end of the financial period Dividend per share, euro: Total dividend paid ____________________________________________________________ Adjusted number of shares at the end of the financial period Dividend / profit, %: Dividend per share x 100 ________________________ Earnings per share Effective dividend yield, %: Dividend per share (adjusted) x 100 _______________________________________________________ Adjusted share price at the end of the financial period Price-earnings ratio (P/E): Adjusted share price at the end of the financial period _______________________________________________________ Earnings per share (adjusted) Market value of share capital: (Number of shares - own shares) x share price at the end of the financial period Turnover of shares, % of share capital: Turnover (number of shares) x 100 _________________________________ Number of shares issued (average) Quick ratio: Current assets - inventories _______________________________________ Current liabilities - advances received |
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