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, 2011
QPR 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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