2010-08-06 07:00:00 CEST
2010-08-06 07:02:07 CEST
REGULATED INFORMATION
Elektrobit Oyj - Interim report (Q1 and Q3)
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-JUNE 2010
STOCK EXCHANGE RELEASE
Free for publication on August 6, 2010 at 8.00 am (CEST+1)
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-JUNE 2010
PROFITABILITY IMPROVED FROM LAST YEAR
SUMMARY 2Q 2010
- Net sales amounted to EUR 44.7 million (EUR 37.4 million, 2Q 2009),
representing an increase of 19.6 per cent year-on-year.
- Operating profit was EUR 0.1 million (EUR -1.1 million, 2Q 2009).
- Operating cash flow was EUR -4.5 million (EUR -1.0 million, 2Q 2009). The net
cash flow was EUR -7.1 million (EUR -2.5 million, 2Q 2009).
- Cash and other liquid assets totaled to EUR 60.0 million (EUR 60.3 million in
2Q 2009).
- Equity ratio remained strong and was 55.4% (69.2% in 2Q 2009). The decrease
reflects the intended distribution of funds from the share premium fund of EUR
25.9 million which was recognized in 1Q.
- Earnings per share were EUR -0.01 (EUR -0.01, 2Q 2009).
- In June EB conducted personnel negotiations with the personnel working in
Elektrobit Wireless Communications Ltd and Elektrobit Corporation in Finland. As
a result of the negotiations it was decided to temporarily dismiss approximately
100 employees full or part time for maximum of 90 days starting in July -
August. If necessary, EB can execute additional temporary dismissals at maximum
of approximately 100 employees during autumn. In case the temporary dismissals
are being executed in full, the estimated cost savings in the second half of
2010 will be approximately EUR 1.7 million.
SUMMARY 1H 2010
- Net sales amounted to EUR 86.2 million (EUR 80.2 million, 1H 2009),
representing an increase of 7.5 per cent year-on-year.
- Operating profit improved to EUR 1.8 million (EUR -1.1 million, 1H 2009).
- EBITDA was EUR 6.1 million (EUR 4.0 million, 1H 2009).
- Operating cash flow was EUR 6.1 million (EUR -3.7 million, 1H 2009). Net cash
flow was 0.9 million (EUR -8.3 million, 1H 2009).
- Earnings per share were EUR -0.01 (EUR -0.02, 1H 2009).
- The General Meeting held on March 25, 2010 decided that the shareholders will
be distributed EUR 0.20 per share from the parent company's share premium fund,
provided that the Company will receive consent for this from the Finnish
National Board of Patents and Registration. EB's Board of Directors will decide
on the record date and payment date of the distribution as soon as possible
after the consent has been received, which is expected to take place in August
2010, at the earliest.
EB'S CEO JUKKA HARJU:"EB's net sales and profitability during the first half of 2010 improved from
last year as expected. The demand in the Automotive Business Segment increased
clearly from last year as the industry recovered from last year's down turn. The
net sales and profitability in the Wireless Business Segment remained at the
level of last year. Our main objective for the second half of 2010 is to
continue to improve the profitability and gradually increase R&D investments
both in Automotive and Wireless Segments."
OUTLOOK FOR THE SECOND HALF OF 2010
Signs of market recovery have continued during the first half of 2010 in both
generic economic environment, and within the EB's Automotive and Wireless
Business Segments. However, economic uncertainties and challenges in obtaining
funding have increased the risk of credit losses and may affect the demand for
the EB's services, solutions and products. This may also reflect to the net
sales and result of the second half of 2010. More specific market outlook is
presented under the "Business Segments' development during the second quarter
2010 and market outlook" section, and uncertainties regarding the outlook under
the "Risks and uncertainties" section.
Our main focus for the second half of 2010 is to improve the profitability
further.
EB expects that the net sales of the second half of 2010 is higher than in the
second half of 2009 (EUR 73.6 million). The operating profit of the second half
of 2010 is expected to be at the level of or better than the operating profit of
the second half of 2009 (EUR 0.0 million).
Due to the holiday period and the nature of R&D services business the third
quarter of 2010 will be weaker than the latter part of the half.
INVITATION TO PRESS CONFERENCE
Concerning the interim report 2Q 2010 EB will hold a press conference for media,
analysts and institutional investors in Finland, Oulu, Tutkijantie 8 in meeting
room 2 on Friday, August 6, 2010 at 11.00 am (CEST+1). The conference will also
be held as a conference call and the presentation will be shown simultaneously
in the Internet through WebEx. The conference will be held in English. For more
information on joining the conference please go to www.elektrobit.com/investors.
EB, Elektrobit Corporation
EB creates advanced technology and turns it into enriching end-user experiences.
EB is specialized in demanding embedded software and hardware solutions for
wireless and automotive industries. The net sales for the year 2009 totaled MEUR
153.8. Elektrobit Corporation is listed on NASDAQ OMX
Helsinki.www.elektrobit.com
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY - JUNE 2010
FINANCIAL PERFORMANCE DURING JANUARY - JUNE 2010
(Comparisons are given to January-June 2009, unless otherwise indicated)
EB's net sales during January - June 2010 increased by 7.5 per cent to EUR 86.2
million (EUR 80.2 million). Operating profit increased to EUR 1.8 million (EUR
-1.1 million).
The Automotive Business Segment's net sales during January - June 2010 amounted
to EUR 37.1 million (EUR 29.9 million) representing a growth of 24.3 per cent.
The operating profit increased to EUR 0.7 million (EUR -3.1 million). The
profitability improvement year-on-year is mainly due to the recovered market
situation and the improved performance in our R&D service projects.
The Wireless Business Segment's net sales during January - June 2010 amounted to
EUR 48.7 million (EUR 50.0 million), representing a decline of -2.7 per cent
compared to January - June 2009. The operating profit was EUR 1.3 million (EUR
1.4 million).
The total R&D investments during the reporting period grew to EUR 10.1 million
(EUR 6.9 million), equaling 11.7 per cent of the net sales (8.7 per cent).
CONSOLIDATED INCOME STATEMENT (MEUR) 1-6 2010 1-6 2009
6 months 6 months
NET SALES 86.2 80.2
OPERATING PROFIT (LOSS) 1.8 -1.1
Financial income and expenses -1.8 -0.5
RESULT BEFORE TAX 0.0 -1.6
RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS -1.2 -2.6
Profit after tax for the year from discontinued operations
RESULT FOR THE PERIOD -1.2 -2.6
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 0.6 -2.8
Result for the period attributable to:
Equity holders of the parent -1.5 -2.6
Minority interest 0.3
Total comprehensive income for the period attributable to:
Equity holder of the parent 0.3 -2.8
Minority interest 0.3
Earnings per share EUR continuing operations -0.01 -0.02
Earnings per share EUR discontinued operations
Earnings per share EUR continuing and discontinued operations -0.01 -0.02
- Cash flow from Business Operations amounted to EUR 6.1 million (EUR -3.7
million).
- Equity ratio was 55.4% (69.2%).
- Net gearing was -50.7% (-35.9%).
QUARTERLY FIGURES
The distribution of the Group's overall net sales and profit, MEUR:
+------------------------------------------------+-----+-----+-----+-----+-----+
| |2Q 10|1Q 10|4Q 09|3Q 09|2Q 09|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Net sales | 44.7| 41.5| 40.1| 33.5| 37.4|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss) | 0.1| 1.7| 0.5| -0.8| -1.1|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Operating profit (loss) without non-recurring | 0.1| 1.7| 0.8| -0.8| -0.4|
|costs | | | | | |
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result before taxes | -0.7| 0.7| 0.1| -0.6| -0.7|
+------------------------------------------------+-----+-----+-----+-----+-----+
|Result for the period | -0.9| -0.3| -0.3| -0.5| -1.6|
+------------------------------------------------+-----+-----+-----+-----+-----+
The distribution of the net sales by Business Segments, MEUR:
+-----------------+-----+-----+-----+-----+-----+
| |2Q 10|1Q 10|4Q 09|3Q 09|2Q 09|
+-----------------+-----+-----+-----+-----+-----+
|Automotive | 18.6| 18.5| 16.8| 14.8| 13.5|
+-----------------+-----+-----+-----+-----+-----+
|Wireless | 25.9| 22.8| 23.0| 18.6| 23.7|
+-----------------+-----+-----+-----+-----+-----+
|Corporation total| 44.7| 41.5| 40.1| 33.5| 37.4|
+-----------------+-----+-----+-----+-----+-----+
The distribution of the net sales by market areas, MEUR and %:
+--------+-----+-----+-----+-----+-----+
| |2Q 10|1Q 10|4Q 09|3Q 09|2Q 09|
+--------+-----+-----+-----+-----+-----+
|Asia | 2.6| 2.7| 4.4| 1.8| 2.5|
| | 5.9%| 6.5%|11.0%| 5.5%| 6.8%|
+--------+-----+-----+-----+-----+-----+
|Americas| 17.4| 15.8| 13.7| 11.1| 12.5|
| |39.0%|38.1%|34.2%|33.1%|33.5%|
+--------+-----+-----+-----+-----+-----+
|Europe | 24.6| 23.0| 22.0| 20.6| 22.3|
| |55.2%|55.4%|54.8%|61.4%|59.7%|
+--------+-----+-----+-----+-----+-----+
Net sales (external) and operating profit development by Business Segments and
Other businesses, MEUR:
+-----------------------+-----+-----+-----+-----+-----+
| |2Q 10|1Q 10|4Q 09|3Q 09|2Q 09|
+-----------------------+-----+-----+-----+-----+-----+
|Automotive | | | | | |
|Net sales | 18.6| 18.5| 16.8| 14.8| 13.5|
|Operating profit (loss)| -0.2| 0.9| 0.3| -0.9| -2.5|
+-----------------------+-----+-----+-----+-----+-----+
|Wireless | | | | | |
|Net sales | 25.9| 22.8| 23.0| 18.6| 23.7|
|Operating profit (loss)| 0.3| 0.9| -0.3| -0.1| 0.9|
+-----------------------+-----+-----+-----+-----+-----+
|Other businesses | | | | | |
|Net sales | 0.2| 0.2| 0.2| 0.2| 0.2|
|Operating profit (loss)| 0.0| -0.1| 0.5| 0.2| 0.4|
+-----------------------+-----+-----+-----+-----+-----+
|Total | | | | | |
|Net sales | 44.7| 41.5| 40.1| 33.5| 37.4|
|Operating profit (loss)| 0.1| 1.7| 0.5| -0.8| -1.1|
+-----------------------+-----+-----+-----+-----+-----+
BUSINESS SEGMENTS' DEVELOPMENT DURING THE SECOND QUARTER 2010 AND MARKET OUTLOOK
EB's reporting is based on the Automotive and Wireless Business Segments.
AUTOMOTIVE
The Automotive Business Segment consists of in-car software products, navigation
software for after market devices and development services for the automotive
industry with leading car manufacturers, car electronics suppliers and
automotive chipset suppliers as customers. By combining its software products
and R&D services EB is creating unique, customized solutions for its automotive
customers.
During the second quarter of 2010, the Automotive Business Segment's net sales
amounted to EUR 18.6 million (EUR 13.5 million, 2Q 2009) representing a growth
of 38.1 per cent year-on-year. The operating loss reduced to EUR -0.2 million
(EUR -2.5 million, 2Q 2009). The profitability improvement year-on-year is
mainly due to the recovered market situation and the improved performance in our
R&D service projects.
During the second quarter of 2010 the demand for Automotive products and
services improved year-on-year and the market recovery continued. EB continued
to investigate the possibility to expand its business to driver assistance
applications. In May EB introduced the EB Assist ADTF, a driver assistant
development environment that significantly accelerates the software development
process of driver assistance systems.
In the Industry Premium Conference held in Germany in June EB told that it will
bring to market the Infotainment Software Suite developed by e.solutions (EB &
Audi Joint Venture) as a pre-integrated, cost-efficient, and highly customizable
software solution to its customers. Volkswagen Group has announced earlier that
they will use the Infotainment Software Suite as their next generation high-end
infotainment platform.
Automotive Market Outlook
The majority of the innovation and differentiation in the automotive industry is
brought about by software and electronics. The share of electronics and software
in cars has grown significantly during the past years and it is expected that
the trend of increased use of software in automotive continues to prevail in the
market. The estimated annual automotive software market long-term growth rate of
some 15 per cent (Frost & Sullivan) was recently negatively affected by the
downturn of the automotive industry. However, during the last months the market
has clearly improved and is expected to return to the level of the long-term
growth.
In order to enable faster innovation, to improve quality and development
efficiency and to reduce complexity related to software, the use of standard
software solutions is expected to increase in the automotive industry.
The underlying growth of the automotive software market will continue and the
cost pressures of the automotive industry are expected to accelerate the need of
productized, efficient software solutions EB is offering.
EB's net sales cumulating from the automotive industry are currently primarily
driven by the development of new cars and platforms and dependency on production
volumes of the car industry is limited. However, over the years to come
dependency on the production volumes is increasing as a result of the transition
towards software product business models.
WIRELESS
The Wireless Business Segment comprises the following businesses:
- Wireless Solutions provides customized solutions and R&D services for wireless
industry and other industries utilizing wireless technologies.
- Wireless Communications Tools provides test tools for measuring, modeling and
emulating radio channel environments.
The Wireless Business Segment's net sales during the second quarter 2010
amounted to EUR 25.9 million (EUR 23.7 million, 2Q 2009), representing a growth
of 9.1 per cent. Operating profit was EUR 0.3 million (EUR 0.9 million,
2Q 2009).
During the second quarter EB-designed TerreStar GENUS smartphone proceeded in
the AT&T certification process. EB continued to strengthen its capabilities in
emerging new technologies such as MeeGo and Android complementing its already
strong competencies in Symbian and Windows Mobile. In June EB introduced new
terminals as part of the EB Tough VoIP product family.
In June, the temporarily decreased order volumes led to personnel negotiations
with the personnel working in Elektrobit Wireless Communications Ltd and
Elektrobit Corporation in Finland. As a result of the negotiations it was
decided to temporarily dismiss approximately 100 employees full or part time for
maximum of 90 days starting in July - August. If necessary, EB can execute
additional temporary dismissals at maximum of approximately 100 employees during
autumn.
Wireless Communications Tools demand continued to be driven by the advanced
development tools for 3GPP LTE technology.
The global mobile device market volumes have grown as expected during the first
half of 2010. The value share is expected to move towards higher-end due to the
increased demand for new features and services. The global mobile infrastructure
market is expected to be flat during 2010 and the consolidation of the industry
may continue. The mobile satellite communication service industry is introducing
new data and mobile communication services with new operators being formed and
traditional ones upgrading their solutions and offerings.
The wireless communication R&D services market continues to be challenging and
the continuing price pressure drives increasing off-shoring in the industry.
However, OEMs are expected to increase their R&D flexibility that can create new
opportunities for partnering for EB. New open software architectures and
platforms are creating opportunities for companies such as EB with strong
integration capabilities.
LTE standard continued gaining strength and EB's business driven by LTE is
expected to increase.
Mastering of multi-radio technologies and end-to-end system architectures
covering both terminal and network technologies, has gained importance in the
complex wireless technology industry. The demand for EB's hybrid
satellite-terrestrial device solutions is expected to continue. The
satellite-terrestrial and Mobile Satellite Services (MSS) market demand is
expected to start moving from the current reference design phase towards the
launch of commercial products and services. This can create new service and
product related business opportunities for EB.
The current economic downturn did not have a significant effect on the overall
wireless communications tools market. Need for advanced development tools 3GPP
LTE technology is expected to remain as a driver for the demand in the medium
and long term. EB provides world leading channel emulation tools for the
development of MIMO based 3GPP LTE and other advanced radio technologies.
RESEARCH AND DEVELOPMENT
EB continued its investments in R&D in the automotive software products and
tools, in radio channel emulation products and in Wireless Solutions' product
platforms.
The total R&D investments during the second quarter of 2010 were EUR 5.4 million
(EUR 3.5 million, 2Q 2009), equaling 12.1 per cent of the net sales (9.4 per
cent in 2Q 2009). EUR 1.0 million of R&D investments were capitalized.
OUTLOOK FOR THE SECOND HALF OF 2010
Signs of market recovery have continued during the first half of 2010 in both
generic economic environment, and within the EB's Automotive and Wireless
Business Segments. However, economic uncertainties and challenges in obtaining
funding have increased the risk of credit losses and may affect the demand for
the EB's services, solutions and products. This may also reflect to the net
sales and result of the second half of 2010. More specific market outlook is
presented under the "Business Segments' development during the second quarter
2010 and market outlook" section, and uncertainties regarding the outlook under
the "Risks and uncertainties" section.
Our main focus for the second half of 2010 is to improve the profitability
further.
EB expects that the net sales of the second half of 2010 is higher than in the
second half of 2009 (EUR 73.6 million). The operating profit of the second half
of 2010 is expected to be at the level of or better than the operating profit
from business operations of the second half of 2009 (EUR 0.0 million).
Due to the holiday period and the nature of R&D services business the third
quarter of 2010 will be weaker than the latter part of the half.
RISKS AND UNCERTAINTIES
EB has identified a number of business, market and finance related factors that
can affect the level of sales and profits. Those of the greatest significance on
a short term are those affecting the utilization and chargeability levels and
average hourly prices of R&D services. On the ongoing financial period the
global economic slowdown may affect the demand for the EB's services, solutions
and products and provide pressure on e.g. volumes and pricing. It may also
increase the risk for credit losses. Challenges in obtaining funding have also
resulted payment delays by one of the EB's significant customers and increased
the risk of credit losses. This risk may grow during the second half of 2010. EB
has paid particular attention in order to secure and collect receivables. The
receivables from the above mentioned customer are significant in amount.
However, based on the current information available for EB, there is no reason
to believe that EB would not be able to collect most of them. It is possible
that based on later information, this view may need to be reconsidered. At the
worst, challenges in obtaining funding may also result to the termination of
significant business relations when a customer can not comply with its
contractual obligations towards EB.
As the EB's customer base consists mainly of companies operating in the fields
of automotive and telecommunications, the company is exposed to market changes
in these industries. EB believes that expanding the customer base will reduce
dependence on individual companies and that the company will thereby be mainly
affected by the general business climate in automotive and telecommunication
industries. However, some parts of EB's business are more sensitive to customer
dependency than others. Respectively, this may translate as accumulation of risk
with respect to outstanding receivables and ultimately with respect to credit
losses. The more specific market outlook is presented under the "Business
Segments' development during the second quarter 2010 and market outlook"
section.
EB's operative business risks are mainly related to following items:
uncertainties and short visibility on customers' product program decisions,
their make or buy decisions and on the other hand, their decisions to continue,
downsize or terminate current product programs, ramping up and down project
resources, timing and on the other hand successful utilization of the most
important technologies and components, competitive situation and potential
delays in the markets, timely closing of customer and supplier contracts with
reasonable commercial terms, delays in R&D projects, activations based on
customer contracts, obsolescence of inventories and technology risks in product
development causing higher than planned R&D costs. In addition there are
typical industry warranty and liability risks involved in selling EB's services,
solutions and products. Product delivery business model includes such risks as
high dependency on actual product volumes, development of the cost of materials
and production yields. The abovementioned risks may manifest themselves as
higher cost of product delivery, and ultimately, as lower profit. Revenues
expected to come from new products for existing and new customers include normal
timing risks.
More information on the risks and uncertainties affecting EB can be found on the
Company's website at www.elektrobit.com
STATEMENT OF FINANCIAL POSITION AND FINANCING
The figures presented in the statement of financial position of June 30, 2010,
are compared with the statement of financial position of December 31, 2009
(MEUR).
6/2010 12/2009
Non-current assets 39.1 39.4
Current assets 128.0 120.8
Total assets 167.1 160.2
Share capital 12.9 12.9
Other equity 73.8 99.5
Minority interest 1.1 0.4
Total shareholders' equity 87.8 112.8
Non-current liabilities 12.8 15.0
Current liabilities 66.5 32.4
Total shareholders' equity and liabilities 167.1 160.2
Net cash flow from operations during the period under review:
+ net profit +/- adjustment of accrual basis items EUR +6.7 million
+ decrease in net working capital EUR +3.1 million
- interest, taxes and dividends EUR -3.7 million
= cash generated from operations EUR +6.1 million
- net cash used in investment activities EUR -2.4 million
- net cash used in financing EUR -2.8 million
= net change in cash and cash equivalents EUR +0.9 million
The amount of accounts and other receivables, booked in current receivables, was
EUR 65.6 million (EUR 59.3 million on December 31, 2009). Accounts and other
payables, booked in interest-free current liabilities, were 61.6 million (EUR
27.5 million on December 31, 2009) including the intended distribution of funds
from the share premium fund of EUR 25.9 million which was recognized in 1Q 2010.
The amount of non-depreciated consolidation goodwill at the end of the period
under review was EUR 18.5 million (EUR 18.5 million on December 31, 2009).
The amount of gross investments in the period under review was EUR 4.2 million,
consisting of replacement investments. Net investments for the reporting period
totaled EUR 3.9 million. The total amount of depreciation during the period
under review was EUR 4.3 million, including EUR 1.1 million of depreciation
owing to business acquisitions.
The amount of interest-bearing debt at the end of the reporting period was EUR
15.5 million. The distribution of net financing expenses on the income statement
was as follows:
interest, dividend and other financial income EUR 0.3 million
interest expenses and other financial expenses EUR -0.4 million
foreign exchange gains and losses EUR -1.8 million
EB's equity ratio at the end of the period was 55.4 per cent (71.5 per cent at
the end of 2009).
EB follows a hedging strategy, the objective of which is to ensure the margins
of business operations in changing market circumstances by minimizing the
influence of exchange rates. In accordance with the hedging strategy, the agreed
customer commitments net cash flow of the currency in question is hedged. The
net cash flow is determined on the basis of sales receivables, payables, the
order book and the budgeted net currency cash flow. The hedged foreign currency
exposure at the end of the review period was equivalent to EUR 20.0 million.
PERSONNEL
EB employed an average of 1548 people between January and June 2010. At the end
of June, EB had 1572 employees (1528 at the end of 2009). A significant part of
EB's personnel are product development engineers.
FLAGGING NOTIFICATIONS
There were no changes in ownership during the period under review that would
have caused flagging notifications which are obligations for disclosure in
accordance with Chapter 2, section 9 of the Securities Market Act.
Oulu, August 6, 2010
EB, Elektrobit Corporation
The Board of Directors
Further Information:
Jukka Harju
CEO
Tel. +358 40 344 5466
Panu Miettinen
CFO
Tel. +358 40 344 5338
Distribution:
NASDAQ OMX Helsinki
Principal media
EB, ELEKTROBIT CORPORATION, CONDENSED FINANCIAL STATEMENTS AND NOTES JANUARY-
JUNE 2010
(unaudited)
The Interim Report has been prepared in accordance with IAS 34 Interim Financial
Reporting.
CONSOLIDATED STATEMENT OF 1-6/2010 1-6/2009 1-12/2009
COMPREHENSIVE INCOME (MEUR)
6 months 6 months 12 months
NET SALES 86.2 80.2 153.8
Other operating income 1.4 1.9 4.0
Change in work in progress and
finished goods 0.0 -1.2 -0.9
Work performed by the undertaking for
its own purpose
and capitalized 0.1 0.4 0.4
Raw materials -6.5 -3.7 -8.3
Personnel expenses -49.1 -47.3 -90.9
Depreciation -4.3 -5.1 -9.7
Other operating expenses -26.1 -26.2 -49.8
OPERATING PROFIT (LOSS) 1.8 -1.1 -1.4
Financial income and expenses -1.8 -0.5 -0.6
RESULT BEFORE TAXES 0.0 -1.6 -2.0
Income taxes -1.3 -1.0 -1.3
RESULT FOR THE PERIOD FROM CONTINUING
OPERATIONS -1.2 -2.6 -3.3
Result after taxes for the period from
discontinued
Operations 1.3
RESULT FOR THE PERIOD -1.2 -2.6 -2.0
Other comprehensive income:
Exchange differences on translating
foreign operations 1.9 -0.2 -0.3
Other comprehensive income for the
period total 1.9 -0.2 -0.3
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD 0.6 -2.8 -2.4
Result for the period attributable to
Equity holders of the parent -1.5 -2.6 -2.2
Minority interest 0.3 0.2
Total comprehensive income
attributable to
Equity holders of the parent 0.3 -2.8 -2.5
Minority interest 0.3 0.2
Earnings per share EUR continuing
operations
Basic earnings per share -0.1 -0.02 -0.03
Diluted earnings per share -0.1 -0.02 -0.03
Earnings per share EUR discontinued
operations
Basic earnings per share 0.01
Diluted earnings per share 0.01
Earnings per share EUR continuing and
discontinued
Operations
Basic earnings per share -0.01 -0.02 -0.02
Diluted earnings per share -0.01 -0.02 -0.02
Average number of shares, 1000 pcs 129 413 129 413 129 413
Average number of shares, diluted,
1000 pcs 130 382 129 413 129 580
CONSOLIDATED STATEMENT OF FINANCIAL June 30, 2010 June 30, 2009 Dec. 31, 2009
POSITION (MEUR)
ASSETS
Non-current assets
Property, plant and equipment 10.8 13.9 11.4
Goodwill 18.5 18.5 18.5
Intangible assets 9.1 9.2 8.7
Other financial assets 0.1 0.4 0.3
Receivables 0.4 0.8 0.4
Deferred tax assets 0.1 0.1
Non-current assets total 39.1 42.7 39.4
Current assets
Inventories 2.5 2.2 2.4
Trade and other receivables 65.6 60.4 59.3
Financial assets at fair value
through profit or loss 45.5 0.2 40.2
Cash and short term deposits 14.4 60.3 18.8
Current assets total 128.0 123.2 120.8
TOTAL ASSETS 167.1 165.9 160.2
EQUITY AND LIABILITIES
Equity attributable to equity holders
of the parent
Share capital 12.9 12.9 12.9
Share premium 64.6 64.6
Invested non-restricted equity fund 38.7
Translation difference 1.7 -0.0 -0.1
Retained earnings 33.3 35.2 35.0
Minority interest 1.1 0.4
Total equity 87.8 112.7 112.8
Non-current liabilities
Deferred tax liabilities 1.7 2.3 2.3
Provisions 0.6 1.7 0.9
Interest-bearing liabilities 10.5 13.6 11.8
Other liabilities 0.1
Non-current liabilities total 12.8 17.6 15.0
Current liabilities
Trade and other payables 59.3 26.3 24.4
Financial liabilities at fair value
through profit or loss 0.0 0.4
Pension obligations 1.1 1.2 1.2
Provisions 1.1 1.9 1.5
Interest-bearing loans and
borrowings 5.0 6.3 4.9
Current liabilities total 66.5 35.7 32.4
Total liabilities 79.3 53.3 47.3
TOTAL EQUITY AND LIABILITIES 167.1 165.9 160.2
CONSOLIDATED STATEMENT OF CASH FLOWS (MEUR) 1-6/2010 1-6/2009 1-12/2009
6 months 6 months 12 months
CASH FLOW FROM OPERATING ACTIVITIES
Result for the period -1.2 -2.6 -2.0
Adjustment of accrual basis items 7.9 6.2 7.7
Change in net working capital 3.1 -7.1 -3.8
Interest paid on operating activities -2.5 -0.9 -2.0
Interest received from operating activities 0.3 1.2 1.6
Other financial income and expenses, net received 0.0 0.0 0.0
Income taxes paid -1.5 -0.4 -1.1
NET CASH FROM OPERATING ACTIVITIES 6.1 -3.7 0.4
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of business unit, net of cash acquired -0.2 -0.7
Disposal of business unit, net of cash acquired -0.9 -0.6
Purchase of property, plant and equipment -0.4 -1.0 -1.2
Purchase of intangible assets -1.9 -0.4 -1.5
Purchase of other investments -0.0 -0.0 -0.1
Sale of property, plant and equipment 0.1 0.1 0.3
Sale of intangible assets 0.0 0.1 0.1
Proceeds from sale of investments 0.2 0.0 0.2
NET CASH FROM INVESTING ACTIVITIES -2.4 -2.1 -3.4
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from borrowing 1.0 1.6
Repayment of borrowing -1.2 -1.4 -3.9
Payment of finance liabilities -1.7 -2.1 -4.1
NET CASH FROM FINANCING ACTIVITIES -2.8 -2.5 -6.5
NET CHANGE IN CASH AND CASH EQUIVALENTS 0.9 -8.3 -9.5
Cash and cash equivalents at beginning of period 59.1 68.6 68.6
Cash and cash equivalents at end of period 60.0 60.3 59.1
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (MEUR)
A = Share capital
B = Share premium
C = Invested non-restricted equity fund
D = Retained earnings
E = Minority share
F = Total equity
A B C D E F
Equity on January 1, 2009 12.9 64.6 37.6 115.1
Share-related compensation 0.1 0.1
Total comprehensive income for the period -2.8 -2.8
Other items 0.3 0.3
Equity on June 30, 2009 12.9 64.6 35.1 112.7
Equity on January 1, 2010 12.9 64.6 34.9 0.4 112.8
Distribution of funds from the share
premium fund -25.9 -25.9
Transfer from the share premium fund -38.7 38.7 0.0
Share-related compensation 0.3 0.3
Total comprehensive income for the period 0.3 0.3
Other items -0.5 0.7 0.2
Equity on June 30, 2010 12.9 0.0 38.7 35.1 1.1 87.8
NOTES TO THE FINANCIAL STATEMENT BULLETIN
Accounting principles for the Interim Report:
The same accounting policies and methods of computation are followed in the
interim report as compared with annual financial statements.
Explanatory comments about the seasonality or cyclicality of reporting period
operations:
The Company operates in business areas which are subject to seasonal
fluctuations.
The nature and amount of items affecting assets, liabilities, equity, net
income, or cash flows which are unusual because of their nature, size or
incidence:
Distribution of funds from the share premium fund:
The General Meeting held on March 25, 2010 decided in accordance with the
proposal of the Board of Directors that the shareholders will be distributed EUR
0.20 per share from the parent company's share premium fund, corresponding at
the date of the General Meeting an aggregate amount of EUR 25,882,538 based on
the number of shares, provided that the company will receive consent for this
from the Finnish National Board of Patents and Registration. The resolution was
booked in group in March 2010.
Transfer of the funds from the share premium fund to the invested non-restricted
equity fund:
The General Meeting decided in accordance with the proposal of the Board of
Directors that the share premium fund in the parent company's balance sheet as
at 31 December 2009 will be decreased by transferring to the company's invested
non-restricted equity fund all the funds remaining in the share premium fund
after the distribution of the share premium fund, provided that the company will
receive consent for the decrease from the Finnish National Board of Patents and
Registration. The resolution was booked in group in March 2010.
Payment of dividend:
The General Meeting held on March 25, 2010 decided in accordance with the
proposal of the Board of Directors that no dividend shall be distributed.
SEGMENT INFORMATION (MEUR)
OPERATING SEGMENTS 1-6/2010 1-6/2009 1-12/2009
6 months 6 months 12 months
Automotive
Net sales to external customers 37.1 29.9 61.5
Net sales to other segments 0.0 0.0
Net sales total 37.1 29.9 61.5
Operating profit (loss) 0.7 -3.1 -3.8
Wireless
Net sales to external customers 48.7 50.0 91.6
Net sales to other segments 0.0 0.2 0.2
Net sales total 48.7 50.2 91.8
Operating profit (loss) 1.3 1.4 1.0
OTHER ITEMS
Other items
Net sales to external customers 0.4 0.3 0.6
Operating profit (loss) -0.1 0.6 1.3
Eliminations
Net sales to other segments -0.0 -0.2 -0.2
Operating profit (loss) 0.0 0.0 0.0
Group total
Net sales to external customers 86.2 80.2 153.8
Operating profit (loss) 1.8 -1.1 -1.4
Net sales of geographical areas (MEUR) 1-6/2010 1-6/2009 1-12/2009
3 months 6 months 12 months
Net sales
Europe 47.6 48.9 91.4
Americas 33.2 24.4 49.2
Asia 5.3 6.9 13.2
Net sales total 86.2 80.2 153.8
Material events subsequent to the end of the interim period not reflected in the
financial statements for the interim period:
There are no such material events subsequent to the end of the interim report
period that have not been reflected in this report.
Related party transactions: 1-6/2010 1-6/2009 1-12/2009
Employee benefits for key management and stock
option expenses total 1.0 1.4 2.2
CONSOLIDATED STATEMENT OF 4-6/ 1-3/ 10-12/ 7-9/ 4-6/
COMPREHENSIVE INCOME 2010 2010 2009 2009 2009
BY QUARTER (MEUR) 3 months 3 months 3 months 3 months 3 months
NET SALES 44.7 41.5 40.1 33.5 37.4
Other operating income 0.8 0.6 1.2 0.9 1.3
Change in work in progress and
finished goods -0.1 0.1 -0.1 0.4 -0.9
Work performed by the undertaking
for its own purpose and
capitalized 0.1 0.0 0.0 0.0 0.3
Raw materials -3.2 -3.3 -2.5 -2.1 -1.5
Personnel expenses -24.9 -24.2 -23.3 -20.3 -22.7
Depreciation -2.2 -2.0 -2.2 -2.4 -2.4
Other operating expenses -15.0 -11.1 -12.7 -10.8 -12.6
OPERATING PROFIT (LOSS) 0.1 1.7 0.5 -0.8 -1.1
Financial income and expenses -0.8 -1.0 -0.3 0.2 0.5
RESULT BEFORE TAXES -0.7 0.7 0.1 -0.6 -0.7
Income taxes -0.2 -1.1 -0.4 0.1 -0.9
RESULT FOR THE PERIOD FROM
CONTINUING OPERATIONS -0.9 -0.3 -0.3 -0.5 -1.6
Result after taxes for the period
from discontinued operations 1.0 0.3
RESULT FOR THE PERIOD -0.9 -0.3 0.7 -0.1 -1.6
Other comprehensive income
for the period total 1.2 0.7 0.3 -0.4 -0.5
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 0.3 0.3 1.0 -0.5 -2.1
Result for the period
attributable to:
Equity holders of the parent -0.9 -0.6 0.6 -0.2 -1.6
Minority interest 0.0 0.3 0.1 0.0
Total comprehensive income
for the period attributable to:
Equity holders of the parent 0.3 0.0 0.9 -0.6 -2.1
Minority interest 0.0 0.3 0.1 0.0
CONSOLIDATED STATEMENT OF June 30, March 31, Dec. 31, Sept. 30, June 30,
FINANCIAL POSITION (MEUR) 2010 2010 2009 2009 2009
ASSETS
Non-current assets
Property, plant and equipment 10.8 10.4 11.4 12.2 13.9
Goodwill 18.5 18.5 18.5 18.5 18.5
Intangible assets 9.1 8.8 8.7 8.8 9.2
Other financial assets 0.1 0.3 0.3 0.3 0.4
Receivables 0.4 0.4 0.4 0.8 0.8
Deferred tax assets 0.1 0.1 0.1 0.0
Non-current assets total 39.1 38.5 39.4 40.7 42.7
Current assets
Inventories 2.5 2.4 2.4 2.6 2.2
Trade and other receivables 65.6 57.3 59.3 55.6 60.4
Financial assets at fair value
through profit or loss 45.5 50.4 40.2 0.3 0.2
Cash and short term deposits 14.4 16.7 18.8 62.2 60.3
Current assets total 128.0 126.8 120.8 120.7 123.2
TOTAL ASSETS 167.1 165.3 160.2 161.4 165.9
EQUITY AND LIABILITIES
Equity attributable to equity
holders
of the parent
Share capital 12.9 12.9 12.9 12.9 12.9
Share premium 64.6 64.6 64.6
Invested non-restricted equity
fund 38.7 38.7
Translation difference 1.7 0.5 -0.1 -0.4 -0.0
Retained earnings 33.3 34.5 35.0 35.1 35.2
Minority interest 1.1 0.7 0.4 0.0
Total equity 87.8 87.4 112.8 112.2 112.7
Non-current liabilities
Deferred tax liabilities 1.7 2.3 2.3 2.2 2.3
Provisions 0.6 0.8 0.9 1.3 1.7
Interest-bearing liabilities 10.5 10.4 11.8 12.5 13.6
Other liabilities 0.0 0.1 0.1
Non-current liabilities total 12.8 13.5 15.0 16.2 17.6
Current liabilities
Trade and other payables 59.3 56.9 24.4 24.5 26.3
Financial liabilities at fair
value
through profit or loss 0.0 0.4 0.4
Pension obligations 1.1 1.2 1.2 1.2 1.2
Provisions 1.1 1.2 1.5 1.9 1.9
Interest-bearing loans and
Borrowings (non-current) 5.0 4.6 4.9 5.2 6.3
Current liabilities total 66.5 64.4 32.4 32.9 35.7
Total liabilities 79.3 77.9 47.3 49.1 53.3
TOTAL EQUITY AND LIABILITIES 167.1 165.3 160.2 161.4 165.9
4-6/ 1-3/ 10-12/ 7-9/ 4-6/
CONSOLIDATED STATEMENT
OF CASH FLOWS BY QUARTER 2010 2010 2009 2009 2009
3 months 3 months 3 months 3 months 3 months
Net cash from operating
activities -4.5 10.6 -0.5 4.6 -1.0
Net cash from investing
activities -1.4 -0.9 -0.7 -0.7 -0.7
Net cash from financing
activities -1.1 -1.7 -1.9 -2.1 -0.7
Net change in cash and cash
equivalents -7.1 8.0 -3.1 1.8 -2.5
FINANCIAL PERFORMANCE RELATED RATIOS 1-6/2010 1-6/2009 1-12/2009
6 months 6 months 12 months
STATEMENT OF COMPREHENSIVE INCOME (MEUR)
Net sales 86.2 80.2 153.8
Operating profit (loss) 1.8 -1.1 -1.4
Operating profit (loss), % of net sales 2.1 -1.4 -0.9
Result before taxes 0.0 -1.6 -2.0
Result before taxes, % of net sales 0.0 -2.0 -1.3
Result for the period -1.2 -2.6 -3.3
PROFITABILITY AND OTHER KEY FIGURES
Interest-bearing net liabilities, (MEUR) -44.5 -40.5 -42.4
Net gearing, -% -50.7 -35.9 -37.6
Equity ratio, % 55.4 69.2 71.5
Gross investments, (MEUR) 4.2 1.7 4.0
Average personnel during the period 1548 1636 1589
Personnel at the period end 1572 1606 1528
AMOUNT OF SHARE ISSUE ADJUSTMENT June 30, June 30, Dec. 31,
(1,000 pcs) 2010 2009 2009
At the end of period 129 413 129 413 129 413
Average for the period 129 413 129 413 129 413
Average for the period diluted with stock options 130 382 129 413 129 580
1-6/2010 1-6/2009 1-12/2009
STOCK-RELATED FINANCIAL RATIOS (EUR)
6 months 6 months 12 months
Basic earnings per share -0.01 -0.02 -0.03
Diluted earnings per share -0.01 -0.02 -0.03
Equity *) per share 0.67 0.87 0.87
*) Equity attributable to equity holders of the
parent
MARKET VALUES OF SHARES (EUR) 1-6/2010 1-6/2009 1-12/2009
Highest 1.25 0.65 1.40
Lowest 0.93 0.33 0.33
Average 1.09 0.48 0.62
At the end of period 0.96 0.59 0.94
Market value of the stock, (MEUR) 124.2 76.4 121.6
Trading value of shares, (MEUR) 8.2 5.2 11.1
Number of shares traded, (1,000 pcs) 7 575 10 711 17 822
Related to average number of shares % 5.9 8.3 13.8
SECURITIES AND CONTINGENT LIABILITIES June 30, June 30, Dec. 31,
(MEUR) 2010 2009 2009
AGAINST OWN LIABILITIES
Floating charges 3.1 3.1 3.1
Pledges 0.8 0.2 1.0
Mortgages are pledged for liabilities totaled 7.5 9.3 8.6
AGAINST OTHER LIABILITIES
Guarantees 2.4 2.8 3.8
Other liabilities
OTHER DIRECT AND CONTINGENT LIABILITIES
Rental liabilities
Falling due in the next year 5.4 5.2 5.9
Falling due after one year 16.1 15.6 17.9
Other contractual liabilities
Falling due in the next year 3.4 3.8 4.3
Falling due after one year 0.5 1.1 0.7
NOMINAL VALUE OF CURRENCY DERIVATIVES June 30, June 30, Dec. 31,
(MEUR) 2010 2009 2009
Foreign exchange forward contracts
Market value -0.0 0.1 -0.3
Nominal value 7.0 2.0 11.0
Purchased currency options
Market value 0.4 0.3 0.1
Nominal value 13.0 8.5 11.5
Sold currency options
Market value -0.4 -0.2 -0.1
Nominal value 21.0 17.0 23.0
[HUG#1436249]
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