2011-04-28 08:30:00 CEST
2011-04-28 08:30:06 CEST
REGULATED INFORMATION
Ixonos - Interim report (Q1 and Q3)
Interim report for the period 1 January - 31 March 2011
Helsinki, Finland, 2011-04-28 08:30 CEST (GLOBE NEWSWIRE) -- Ixonos Plc
Interim report 28 April 2011 at 9.30
Interim report for the period 1 January - 31 March 2011
IXONOS' FIRST QUARTER WAS ON PAR WITH THE PREVIOUS YEAR
The review period in brief
-- Turnover for the review period was EUR 21.1 million (2010: EUR 20.5
million), a change of +3.0 per cent.
-- Operating profit was EUR 0.4 million (2010: EUR 0.6 million), 1.7 per cent
of turnover.
-- Net profit was EUR 0.2 million (2010: EUR 0.3 million), 1.0 per cent of
turnover.
-- Earnings per share were EUR 0.01 (2010: EUR 0.02).
-- Net cash flow from operating activities was EUR 0.4 million (2010: EUR -2.0
million).
Future prospects in brief
-- The company's turnover and operating profit for the first half-year are
expected to be at the same level as in 2010.
-- The company's turnover and operating profit for the entire year 2011 are
predicted to be lower than in the previous year, but operating profit is
forecast to be positive.
Kari Happonen, President and CEO:
Ixonos' operating environment has become more volatile during the beginning of
the year. The uncertainty is due to open questions surrounding the schedule and
practical implementation of the new smartphone strategy Nokia, Ixonos' largest
customer, announced in February 2011. So far, the change in Nokia's strategy
has not significantly affected demand for the R&D services Ixonos provides to
Nokia. Nevertheless, Nokia's new technology choices do destabilise our
business, and we must increase our efforts to seek growth in new customer
relationships on the international market.
Our strategy has focused on providing R&D services to globally operating
companies that lead the way in the utilization of wireless communication by
launching new wireless technologies, devices and services on high-growth
markets. Such present and potential customers include technology and chipset
suppliers, mobile device manufacturers, telecommunications companies and other
service providers as well as consumer electronics manufacturers.
In accordance with our strategy, we have strongly focused our sales activities
on the acquisition of new customers. We are confident that we will expand our
clientele substantially during this year and that turnover from new customers
will compensate for the reduction in Nokia revenue. At the same time, we have
continued to grow the added value of our solution offering by investing in the
productisation of our services. Examples of our achievements in this field
include the success of our Device Creation Centre, which focuses on turnkey
development of wireless devices, and the increasing interest in the solutions
our User Experience Design Centre provides for mobile devices and services.
These productised solutions are important spearheads as we pursue new
customers, an effort that focuses particularly on the R&D market for MeeGo- and
Android-based mobile devices and services.
On 19 April 2011, we commenced co-operation negotiations with our personnel in
Finland. The purpose of the negotiations is to maintain the best possible
profitability, keep up our ability to invest in the development of our business
and reorganise our operations to match the current business needs and volume.
Similar measures will also be taken in our foreign subsidiaries as our
clientele grows and its needs evolve.
OPERATIONS
Ixonos develops wireless technologies, software, devices and services. Together
with our corporate customers, we create products and services that allow
consumers to enjoy inspiring digital experiences regardless of time and place.
We improve the competitiveness of our client organisations by enabling superior
user experiences for their devices and services and by shortening the time to
market. We aim to position ourselves as a strategic partner to the industry's
leading innovators and pioneers. We provide solutions and services for R&D of
mobile software, for R&D of complete wireless devices, for the design,
development and maintenance of mobile applications and mobile web services and
for user experience design that encompasses devices as well as services.
Our Finnish subsidiary Ixonos Business Solutions Ltd. provides development
solutions and services for e-business and e-government.
Ixonos has offices in Finland, China, Denmark, Estonia, Germany, Great Britain,
Slovakia and the U.S.
SEGMENTS
From the beginning of 2011, Ixonos reports its consolidated business operations
in two segments: Mobile Solutions and Business Solutions.
Mobile Solutions
The Mobile Solutions business area comprises solutions and services for
developing wireless technologies, devices and services. The area's clientele
includes wireless technology suppliers, mobile device manufacturers,
telecommunications companies and consumer electronics manufacturers operating
on the international market as well as other companies taking advantage of the
new business opportunities that wireless communication enables.
The offering of the Mobile Solutions area consists of customised expert
services as well as productised solutions for Device Creation, for User
Experience Design and for Managed Services.
Ixonos' Device Creation Centre provides solutions and services for the design
and development of mobile devices. In addition to software development, these
services also cover mechanical engineering and electronics design. The centre
provides international device-manufacturer and operator customers with
comprehensive R&D services for next-generation wireless devices. The unit
develops smartphones and other wireless devices based on new, powerful chipsets
from the world's leading technology suppliers and on several different
operating systems.
The User Experience Design Centre is Ixonos' unit for globally provided user
experience design and consulting services. The unit concentrates on the
creation of enticing user experiences and helps Ixonos provide productised
services and customised solutions to its international clientele. The centre
offers services ranging from user experience design strategy and concept
development to concrete design work and solution creation.
Ixonos' Managed Services Centre provides solutions and services that span the
entire life cycle of business-critical web services, from requirements analysis
to design, development, maintenance and further development. The unit develops
and maintains e.g. solutions for media and content services, for information
management and for mobile advertising and e-commerce, as well as social network
services. In addition to flexible development and deployment of web and mobile
services, the unit offers a maintenance package that includes application
support, maintenance and data centre services.
During the review period, the turnover of the Mobile Solutions business area
increased by 6.7 per cent to EUR 17.6 million (2010: EUR 16.5 million).
Operating profit decreased by 19.3 per cent to EUR 1.3 million (2010: EUR 1.6
million), 7.3 per cent of turnover.
The operating environment of the Mobile Solutions business area became more
volatile in the beginning of the year, after Nokia Corporation, our key
customer, announced its new smartphone strategy. Nokia's new strategy has only
had a minor influence on Ixonos' turnover and operating profit for the first
quarter of the year. However, the Mobile Solutions segment's projects based on
Nokia's MeeGo and Symbian platforms are estimated to decrease in the second
half of this year. Due to this, the business volume and profitability of the
segment are expected to decline at least temporarily.
In accordance with strategy, Ixonos continues to expand the clientele of its
Mobile Solutions business area by boosting sales of services and solutions
related to mobile Linux platforms such as Android and MeeGo. The target groups
consist of mobile technology suppliers, mobile device manufacturers, consumer
electronics manufacturers and other global and Finnish and customers. At the
same time the segment strives to maintain the best possible profitability.
Business Solutions
The Business Solutions area provides development solutions and services for
e-business and e-government. The area's clientele consists of Finnish companies
in telecommunication and finance as well as in public administration
organizations.
Ixonos' Business Solutions area provides innovative e-business solutions to
meet the challenges of tomorrow's service operations.
The business area offers e-business and e-government services that focus on
business process development, architecture services, portal solutions, content
and document management solutions and business intelligence solutions. The unit
also provides R&D services that help client organisations use agile development
methods to create innovative new web services. With these services, Business
Solutions aims to improve the internal and external customer service of its
clients.
The solutions developed by the unit utilise product platforms of technology
partners as well as open source solutions. By collaborating with Ixonos' other
units, Business Solutions offers comprehensive solutions to meet the e-business
and e-government needs of its customers.
The turnover of the Business Solutions segment decreased by 19.8 per cent to
EUR 3.7 million (2010: EUR 4.6 million) during the review period. Operating
profit was negative after Group allocations, EUR −0.2 million, although the
losses were somewhat lower than in the previous year (2010: EUR −0.3 million).
The decline ended in late 2010 and the segment's business volume has increased
since early 2011, which will change the business area's operating profit to
positive.
TURNOVER
Consolidated turnover in the first quarter was EUR 21.1 million (2010: EUR 20.5
million), which is 3.0 per cent more than in the previous year. Of the total
turnover of all segments, before elimination of inter-segment revenue, the
Mobile Solutions segment accrued 82.7 per cent (2010: 78.7 per cent) and the
Business Solutions segment accrued 17.3 per cent (2010: 21.3 per cent).
Turnover by segment:
EUR 1,000 1-3 2011 1-3 2010 1-12 2010
-------------------------------------------------
Mobile Solutions 17,598 16,486 71,160
-------------------------------------------------
Business Solutions 3,684 4,592 15,475
-------------------------------------------------
Eliminations -144 -547 -1,691
-------------------------------------------------
Group total 21,138 20,531 84,944
-------------------------------------------------
FINANCIAL RESULT
Consolidated operating profit was EUR 0.4 million (2010: EUR 0.6 million).
Consolidated profit before taxes was EUR 0.3 million (2010: EUR 0.3 million).
Profit for the review period was EUR 0.2 million (2010: EUR 0.3 million).
Earnings per share were EUR 0.01 (2010: EUR 0.02). Cash flow from operating
activities was EUR 0.02 per share (2010: EUR -0.17).
Operating profit by segment:
EUR 1,000 1-3 2011 1-3 2010 1-12 2010
-------------------------------------------------
Mobile Solutions 1,287 1,595 8,891
-------------------------------------------------
Business Solutions -186 -310 -838
-------------------------------------------------
Administration -732 -729 -2,722
-------------------------------------------------
Group total 369 556 5,331
-------------------------------------------------
RETURN ON CAPITAL
Group's return on equity (ROE) was 3.0 per cent (2010: 5.5 per cent). Return on
investment (ROI) was 4.4 per cent (2010: 6.4 per cent).
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 56.5 million (2010: EUR 55.4 million).
Shareholders' equity was at EUR 28.6 million (2010: EUR 19.5 million). The
equity ratio was 50.6 per cent (2010: 35.2 per cent). The Group's liquid funds
at the end of the review period amounted to EUR 1.0 million (2010: EUR 1.3
million).
At the end of the review period, the company's balance sheet consist of bank
loans EUR 8.4 million (2010: EUR 17.2 million). This amount includes overdraft
in use. The bank loans have covenants attached to them. The covenants are based
on the company's equity ratio and on the proportion of interest-bearing bank
loans (partly interest-bearing net liabilities) to the twelve-month rolling
operating profit.
GOODWILL
On 31 March 2011, the consolidated balance sheet included EUR 23.6 million in
goodwill. At the end of 2010, the company performed impairment testing of
goodwill in all cash generating units and concluded that no goodwill impairment
is required in connection with the units. The company sees that the risk of
volatility in the estimated future cash flows has grown, but holds no
information on such future cash flows that would have an effect on the need for
goodwill impairment.
CASH FLOW
During the review period, consolidated cash flow from operating activities was
EUR 0.4 million (2010: EUR -2.0 million). The turnaround time of accounts
receivable became longer in 2010, and this change had a particular influence on
cash flow from operating activities. At 31 March 2011, the company had sold a
total of EUR 3.2 million in accounts receivable to reduce the turnaround time.
The company does not have any significant amount of high-risk trade
receivables.
PERSONNEL
The number of personnel averaged 1,154 (2010: 1,092) during the review period
and was 1,149 (2010: 1,105) at the end of the period. The staff increase
occurred mainly in companies outside Finland. At the end of the review period,
the Group had 719 employees (2010: 757) in Finnish companies, while Group
companies in other countries employed 430 (2010: 348).
SHARES AND SHARE CAPITAL
Share turnover and price
During the review period, the highest price of the company's share was EUR 2.79
(2010: EUR 3.10) and the lowest price was EUR 1.50 (2010: EUR 2.71). The
closing price on 31 March 2011 was EUR 1.58 (2010: EUR 3.03). The average price
over the review period was EUR 1.95 (2010: EUR 2.89). The number of shares
traded during the review period was 2,497,799 (2010: 414,481), which
corresponds to 16.5 per cent (2010: 4.5 per cent) of the shares at the end of
the review period. According to the closing price on 31 March 2011, the market
value of the company's shares was EUR 23,861,295 (2010: EUR 28,218,660).
Share capital
In the beginning of the review period, the company's registered share capital
was EUR 585,394.16 and the number of shares 15,102,484. After a directed share
issue during the review period the total number of shares is 15,122,974.
Option plan 2006
Under the 2006 stock option plan, 140,000 series AI options, 140,000 series AII
options, 60,000 series BI options and 60,000 series BII options have been
granted. Of the series A options, 15,000 AI options and 25,000 AII options have
been returned to the company pursuant to the terms of the option plan. A total
of 30,000 returned series A options have been converted to series B options, in
accordance with the terms of the option plan, and redistributed. Of the series
B options, 5,000 BI options and 10,000 BII options have been returned to the
company pursuant to the terms of the option plan. The maximum number of shares
that can be subscribed for with outstanding options under the option plan of
2006 is 366,500, which is equivalent to 3.9 per cent of all the company's
shares. The subscription period for series 2006 AI options began on 1 October
2007, for series AII and BI options on 1 October 2008 and for series BII
options on 1 October 2009. At 30 June 2010, the exercise price is EUR 4.13 with
series AI and AII options and EUR 4.92 with series BI and BII options. The
subscription period for the options that were granted in 2006 will end on 31
December 2011.
Because of the rights issue, the company's Board of Directors decided on 1 June
2010 to modify the subscription ratio and exercise price associated with the
option rights. The change is intended to ensure equal treatment of option
holders and shareholders. Under the new subscription ratio, each series 2006A
and 2006B option right entitles its holder to subscribe for 1.57 shares. The
exercise price is based on the market price of the company's share at NASDAQ
OMX Helsinki Ltd from January to March 2006 and 2007. However, the exercise
price per share is at least EUR 3.0464 with series 2006A options and at least
EUR 3.5491 with series 2006B options. On exercise, the total number of shares
for which the option holder subscribes is rounded down to the nearest integer.
The total exercise price is calculated using the rounded number of shares and
is rounded to the nearest cent. After the change, a maximum of 575,405 shares
can be subscribed for with option rights. This equals 3.8 per cent of the
shares at the end of the review period.
Ixonos Plc's Annual General Meeting, 29 March 2011
Ixonos Plc held its Annual General Meeting on 29 March 2011. The meeting
adopted the company's financial statements, including the consolidated
financial statements, for the financial period 1 January - 31 December 2010 and
granted discharge from liability to the members of the Board of Directors as
well as to the President and CEO.
The Annual General Meeting decided that no dividend would be paid for the
financial period. The meeting also decided that six ordinary members, rather
than eight as previously, would be elected to the Board of Directors. Paul
Ehrnrooth, Pertti Ervi, Matti Järvinen and Kirsi-Marja Kuivalainen were
re-elected as Board members, and Matti Heikkonen and Samu Konttinen were
elected as new Board members.
At its own meeting following the Annual General Meeting, the Board of Directors
elected Pertti Ervi as Chairman of the Board and Paul Ehrnrooth as Vice
Chairman of the Board. The meeting also appointed the members of the Board's
committees: Pertti Ervi was elected as Chairman of the Audit Committee; Paul
Ehrnrooth and Matti Järvinen were elected as Audit Committee members; Pertti
Ervi was elected as Chairman of the Compensation Committee; Paul Ehrnrooth and
Kirsi-Marja Kuivalainen were elected as Compensation Committee members; and
Paul Ehrnrooth and Pertti Ervi were elected as Nomination Committee members.
The Annual General Meeting decided to keep unchanged the fees to be paid to the
members of the Board of Directors: the Chairman of the Board will be paid EUR
40,000 per year and EUR 500 per meeting, the Vice Chairman of the Board EUR
30,000 per year and EUR 250 per meeting and other Board members EUR 20,000 per
year and EUR 250 per meeting. The meeting also decided to pay a fee of EUR 500
per meeting to the chairpersons of the Board's committees and EUR 250 per
meeting to committee members.
Authorized Public Accountant firm PricewaterhouseCoopers Oy continues as
auditor. The new principal auditor is Authorized Public Accountant Markku
Katajisto. The Annual General Meeting decided to pay a reasonable auditor's fee
according to the auditor's invoice.
The Annual General Meeting also approved the Board's proposal to repeal section
9 (on the obligation to redeem shares) of the company's Articles of
Association.
Shareholders
The company had 3,077 shareholders on 31 March 2011 (2010: 2,979). Private
persons owned 51.6 per cent (2010: 56.5 per cent) and institutions 48.4 per
cent (2010: 43.5 per cent) of the shares. Foreign ownership was 9.1 per cent
(2010: 7.4 per cent) of all shares.
Board of directors' authorisations
Ixonos Plc's Annual General Meeting of 29 March 2011 authorised the Board of
Directors to decide on a rights issue, as well as on issuing stock options and
other special rights entitling to shares pursuant to chapter 10, section 1 of
the Limited Liability Companies Act (624/2006), under the following terms:
The number of shares to be issued under the authorisation may not exceed
1,500,000, which equals approximately 10 per cent of all company shares at the
time of convening the Annual General Meeting.
The Board of Directors was granted authority to decide, within the limits of
the authorisation, on all terms of the share issue as well as on those of the
issue of special rights entitling to shares.
The Board of Directors was also granted authority to decide on crediting the
subscription price to the share capital or, in whole or in part, to the
invested non-restricted equity fund.
Shares as well as special rights entitling to shares may also be issued in a
way that deviates from the pre-emptive rights of shareholders, if a weighty
financial reason for this exists as laid out in the Limited Liability Companies
Act. In such a case, the authorisation may be used to finance corporate
acquisitions or other investments related to the company's operations, to
maintain and improve the Group's solvency or as part of the company's incentive
plan.
The authorisation is effective until the Annual General Meeting in 2012.
EVENTS AFTER THE REVIEW PERIOD
Ixonos commenced co-operation negotiations
On 19 April 2011, the company commenced co-operation negotiations for reasons
relating to finances, production and reorganisation. The goal of the
negotiations is to adjust the company's cost structure to the decelerated
growth as well as to improve the company's ability to maintain the best
possible profitability.
The co-operation negotiations apply to all Ixonos Group employees in Finland
except for those employed by Ixonos Business Solutions Ltd. The changes are
estimated to affect no more than 100 employees in the Group's administration,
support functions, sales and service production. As part of the reorganisation,
the company plans to close down its mobile device R&D services in Salo and
Turku.
Similar reorganisations and rationalisation measures are also planned for the
Group's foreign subsidiaries.
New reporting segments
From the beginning of 2011, Ixonos reports its consolidated business operations
in two segments: Mobile Solutions and Business Solutions. The new reporting
segments were announced on 21 April 2011. The new segments represent more
accurately the nature of the company's business operations and match the
company's operational organization.
RISK MANAGEMENT AND NEAR-FUTURE UNCERTAINTY FACTORS
Ixonos Plc's risk management aims to ensure undisturbed continuity and
development of the company's operations, to support attainment of the
commercial targets set by the company and to promote increasing company value.
Details on the risk management organisation and process as well as on
recognised risks are presented on the company's website, at www.ixonos.com.
Changes in key customer relationships may have an adverse effect on Ixonos'
operations, earning power and financial status. Should a major customer switch
its purchases from Ixonos to its competitors or make forceful changes to its
own operating model, Ixonos would have limited ability to acquire, in the short
term, new customer volume to compensate for such a change.
Ixonos' corporate acquisitions in 2006-2008, its rapid growth in 2010 and the
prolonged turnaround time of accounts receivable have increased the company's
need for working capital. The company manages this need by creating, together
with financiers, adequate buffers to ensure sufficient funds as well as by
facilitating the circulation of working capital. The company's balance sheet
also includes a significant amount of goodwill, which may be impaired should
either internal or external factors reduce the profit expectations of the
company or any of its cash generating units. Goodwill is tested during the last
quarter of each year and, if necessary, at other time of the year.
The company's financial agreements have covenants attached to them. A covenant
violation may cause an increase in the company's financial expenses or a call
for swift partial or full repayment of non-equity loans. The main risks related
to covenant violations are associated with operating profit fluctuation due to
the market situation and with a potential need to increase the company's
working capital through non-equity funding. The company manages these risks by
negotiating with financiers and by maintaining readiness for various financing
methods. Ixonos has in use the cash funds its normal operations require.
FUTURE PROSPECTS
According to Gartner research, the global market for smartphones and for
services used in smartphones is expected to continue its intense growth in
2011. Wireless data transfer is also anticipated to continue its expansion into
new areas of consumer electronics. Market-Visio indicates that the Finnish ICT
market will grow some 4 per cent in 2011. This growth rate is near the
long-term average.
Nokia's new strategy will only have a minor influence on Ixonos' turnover and
operating profit for the first half of this year. However, Ixonos' sales of
software development services to R&D projects based on Nokia's MeeGo and
Symbian platforms are estimated to decrease in the second half of this year.
Because of this, the business volume of Ixonos' Mobile Solutions area is
expected to decline, at least temporarily.
In accordance with strategy, Ixonos continues its activities to expand its
clientele by boosting sales of services and solutions to mobile technology
suppliers, mobile device manufacturers, consumer electronics manufacturers and
other customers in Finland as well as internationally while striving to
maintain the best possible profitability.
The company's turnover and operating profit for the first half-year are
expected to be at the same level as in 2010. The company's turnover and
operating profit for the entire year 2011 are predicted to be lower than in the
previous year, but operating profit is forecast to be positive.
The company aims to continue rationalising its operations, developing its
services, expanding its service operations in lower-cost countries and
maintaining its cash flow and profitability.
NEXT REPORTS
The interim report for the period 1 January - 30 June 2011 will be published on
Thursday, 4 August 2011. The interim report for the period 1 January - 30
September 2011 will be published on Tuesday, 25 October 2011.
IXONOS PLC
Board of Directors
For more information, please contact:
Ixonos Plc
Kari Happonen, President and CEO, tel. +358 400 700 761,
kari.happonen@ixonos.com
Timo Leinonen, CFO, tel. +358 400 793 073, timo.leinonen@ixonos.com
Distribution
NASDAQ OMX Helsinki
Main media
THE IXONOS GROUP
ABBREVIATED FINANCIAL STATEMENTS 1 January - 31 March 2011
Accounting policies
This interim report has been prepared in accordance with IAS 34 (Interim
Financial Reporting), the accounting policies for the financial statements of
31 December 2010 and the new and revised standards that came into effect on 1
January 2011, as described in the financial statements 2010.
Preparing the interim report in accordance with IFRS requires Ixonos'
management to make estimates and assumptions that affect the amounts of assets
and liabilities on the balance sheet date as well as the amounts of income and
expenses for the financial period. In addition, judgment must be used in
applying the accounting policies. As the estimates and assumptions are based on
views prevailing at the time of releasing the interim report, they involve
risks and uncertainty factors. Actual results may differ from estimates and
assumptions.
The figures in the income statement and balance sheet are consolidated. The
consolidated balance sheet includes all Group companies as well as Ixonos
Management Invest Oy, a company owned by members of Ixonos' management. The
original interim report is in Finnish. The interim report in English is a
translation of the original report.
As the figures in the report have been rounded, sums of individual figures may
differ from the sums presented. The interim report is unaudited.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
1.1.-31.3.20 1.1.-31.3.20 Change, 1.1.-31.12.20
11 10 per 10
cent
--------------------------------------------------------------------------------
Turnover 21,138 20,531 3.0 84,944
--------------------------------------------------------------------------------
Operating expenses -20,768 -19,974 4.0 -79,613
--------------------------------------------------------------------------------
OPERATING PROFIT 369 556 -33.6 5,331
--------------------------------------------------------------------------------
Financial income and -52 -218 -76.4 -781
expenses
--------------------------------------------------------------------------------
Profit before tax 318 338 -6.0 4,550
--------------------------------------------------------------------------------
Income tax -107 -71 51.2 -1,292
--------------------------------------------------------------------------------
PROFIT FOR THE REVIEW PERIOD 211 268 -21.1 3,258
--------------------------------------------------------------------------------
Attributable to
--------------------------------------------------------------------------------
Shareholders of the parent 217 268 -18.9 3,262
company
--------------------------------------------------------------------------------
Non-controlling interests -6 0 -4
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, EUR 1,000
Profit for the review period 211 268 -21.1 3,258
-----------------------------------------------------------------
Other comprehensive income
-----------------------------------------------------------------
Change in translation difference -54 30 40
-----------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 157 298 -47.4 3,298
-----------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, EUR 1,000
ASSETS 31.3.201 31.3.201 31.12.201
1 0 0
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Goodwill 23,647 22,826 23,647
--------------------------------------------------------------------------------
Other intangible assets 5,425 5,014 5,580
--------------------------------------------------------------------------------
Property, plant and equipment 4,192 4,079 4,210
--------------------------------------------------------------------------------
Deferred tax assets 211 207 108
--------------------------------------------------------------------------------
Available-for-sale investments 110 110 110
--------------------------------------------------------------------------------
TOTAL NON-CURRENT ASSETS 33,595 32,237 33,655
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Trade and other receivables 21,900 21,885 21,811
--------------------------------------------------------------------------------
Cash and cash equivalents 1,040 1,282 1,226
--------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 22,941 23,167 23,037
--------------------------------------------------------------------------------
TOTAL ASSETS 56,535 55,404 56,693
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES 31.3.201 31.3.201 31.12.201
1 0 0
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
Share capital 585 373 585
--------------------------------------------------------------------------------
Share premium reserve 219 219 219
--------------------------------------------------------------------------------
Invested non-restricted equity fund 20,343 14,808 20,343
--------------------------------------------------------------------------------
Retained earnings 7,039 3,808 3,824
--------------------------------------------------------------------------------
Profit for the period 217 268 3,262
--------------------------------------------------------------------------------
Equity attributable to shareholders of the parent 28,403 19,475 28,234
company
--------------------------------------------------------------------------------
Non-controlling interests 228 0 224
--------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 28,631 19,475 28,457
--------------------------------------------------------------------------------
LIABILITIES
--------------------------------------------------------------------------------
Non-current liabilities 7,414 10,498 7,934
--------------------------------------------------------------------------------
Current liabilities 20,490 25,431 20,301
--------------------------------------------------------------------------------
TOTAL LIABILITIES 27,904 35,929 28,235
--------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 56,535 55,404 56,693
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY, EUR 1,000
A: Share capital
B: Share premium reserve
C: Share issue
D: Invested non-restricted equity fund
E: Treasury shares
F: Translation difference
G: Retained earnings
H: Equity attributable to shareholders of the parent company, total
J: Non-controlling interests
I: Total equity
Equity attributable to share holders of the parent company
--------------------------------------------------------------------------------
A B C D E F G H I J
--------------------------------------------------------------------------------
Shareholders' equity 373 219 0 14,808 0 -11 3,789 19,177 19,177
at 1 January 2010
--------------------------------------------------------------------------------
Profit for the period 268 268 268
--------------------------------------------------------------------------------
Other comprehensive
income:
--------------------------------------------------------------------------------
Change in translation 30 30 30
difference
--------------------------------------------------------------------------------
Transactions with
shareholders:
--------------------------------------------------------------------------------
Shareholders' equity 373 219 0 14,808 0 19 4,057 19,475 0 19,475
at 31 March 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity 585 219 0 20,343 0 29 7,058 28,234 224 28,457
at 1 January 2011
--------------------------------------------------------------------------------
Profit for the review 217 217 -6 211
period
--------------------------------------------------------------------------------
Other comprehensive
income:
--------------------------------------------------------------------------------
Change in translation -54 -54 -54
difference
--------------------------------------------------------------------------------
Transactions with
shareholders:
--------------------------------------------------------------------------------
Rights issue 50 50 50
--------------------------------------------------------------------------------
Share-based 7 7 7
remuneration
--------------------------------------------------------------------------------
Management incentive -50 -50 10 -40
plan
--------------------------------------------------------------------------------
Shareholders' equity 585 219 0 20,343 0 -25 7,282 28,403 228 28,631
at 31 March 2011
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
1.1.-31.3. 1.1.-31.3. 1.1.-31.12
2011 2010 .2010
--------------------------------------------------------------------------------
Cash flow from operating activities
--------------------------------------------------------------------------------
Profit for the period 211 268 3,258
--------------------------------------------------------------------------------
Adjustments to cash flow from operating
activities
--------------------------------------------------------------------------------
Tax 107 71 1,292
--------------------------------------------------------------------------------
Depreciation and impairment 976 758 3,407
--------------------------------------------------------------------------------
Financial income and expenses 52 218 781
--------------------------------------------------------------------------------
Other adjustments -46 -166 -14
--------------------------------------------------------------------------------
Cash flow from operating activities before 1,299 1,148 8,724
change in working capital
--------------------------------------------------------------------------------
Change in working capital -615 -2,726 -2,077
--------------------------------------------------------------------------------
Interest received 1 1 4
--------------------------------------------------------------------------------
Interest paid -120 -124 -875
--------------------------------------------------------------------------------
Tax paid -193 -296 -1,076
--------------------------------------------------------------------------------
Net cash flow from operating activities 373 -1,997 4,700
--------------------------------------------------------------------------------
Cash flow from investing activities
--------------------------------------------------------------------------------
Investments in tangible and intangible -744 -755 -2,545
assets
--------------------------------------------------------------------------------
Dividends received 0 0 4
--------------------------------------------------------------------------------
Acquisition of subsidiaries 0 0 -1,052
--------------------------------------------------------------------------------
Net cash flow from investment activities -744 -755 -3,594
--------------------------------------------------------------------------------
Net cash flow before financing -371 -2,752 1,106
--------------------------------------------------------------------------------
Cash flow from financing activities
--------------------------------------------------------------------------------
Increase in long-term borrowings 0 0 0
--------------------------------------------------------------------------------
Repayment of long-term borrowings -371 -506 -2,872
--------------------------------------------------------------------------------
Increase in short-term borrowings 913 2,500 223
--------------------------------------------------------------------------------
Repayment of short-term borrowings -368 -237 -5,353
--------------------------------------------------------------------------------
Proceeds from share issues 10 0 5,845
--------------------------------------------------------------------------------
Net cash flow from financing activities 185 1,756 -2,158
--------------------------------------------------------------------------------
Change in cash and cash equivalents -186 -996 -1,052
--------------------------------------------------------------------------------
Liquid assets at the beginning of the period 1,226 2,278 2,278
--------------------------------------------------------------------------------
Liquid assets at the end of the period 1,040 1,282 1,226
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT, QUARTERLY, EUR 1,000
Q1/2011 Q4/2010 Q3/2010 Q2/2010 Q1/2011
1.1.-31.3. 1.10.-31.1 1.7.-30.9. 1.4.-30.6 1.1.-31.3.
11 2.10 10 .10 10
--------------------------------------------------------------------------------
Turnover 21,138 23,157 19,360 21,897 20,531
--------------------------------------------------------------------------------
Operating expenses 20,768 -21,288 -17,706 -20,644 -19,974
--------------------------------------------------------------------------------
OPERATING PROFIT 369 1,869 1,653 1,252 556
--------------------------------------------------------------------------------
Financial income and -52 -153 -103 -307 -218
expenses
--------------------------------------------------------------------------------
Profit before tax 318 1,716 1,551 945 338
--------------------------------------------------------------------------------
Income tax -107 -498 -435 -288 -71
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 211 1,223 1,115 657 268
--------------------------------------------------------------------------------
SEGMENT REPORTING
1.1.- 1.1.- 1.1.-
31.3.2011 31.3.2010 31.12.2010
------------------------------------------------------------------------
Turnover by segment
------------------------------------------------------------------------
Mobile Solutions 17,598 16,486 71,160
------------------------------------------------------------------------
Business Solutions 3,684 4,592 15,475
------------------------------------------------------------------------
Eliminations -144 -547 -1,691
------------------------------------------------------------------------
Total turnover 21,138 20,531 84,944
------------------------------------------------------------------------
------------------------------------------------------------------------
Operating profit by segment
------------------------------------------------------------------------
Mobile Solutions 1,287 1,595 8,891
------------------------------------------------------------------------
Business Solutions -186 -310 -838
------------------------------------------------------------------------ Administration -732 -729 -2,722
------------------------------------------------------------------------
Total operating profit 369 556 5,331
------------------------------------------------------------------------
Operating profit, per cent of turnover 1.7 2.7 6.3
------------------------------------------------------------------------
Financial income and expenses -52 -218 -781
------------------------------------------------------------------------
Profit before tax 318 338 4,550
------------------------------------------------------------------------
Income tax -107 -71 -1,292
------------------------------------------------------------------------
PROFIT FOR THE PERIOD 211 268 3,258
------------------------------------------------------------------------
CHANGES IN FIXED ASSETS, EUR 1,000
Goodwi Intangible Property, plant Available-for-sal Total
ll assets and equipment e investments
--------------------------------------------------------------------------------
Book value at 1 22,826 5,061 3,942 110 31,939
January 2010
--------------------------------------------------------------------------------
Additions 400 461 861
--------------------------------------------------------------------------------
Disposals -11 -11
--------------------------------------------------------------------------------
Depreciation -446 -312 -758
for the period
--------------------------------------------------------------------------------
Book value at 23,826 5,014 4,079 110 32,030
31 March 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Book value at 1 23,647 5,580 4,210 110 33,547
January 2011
--------------------------------------------------------------------------------
Additions 430 373 803
--------------------------------------------------------------------------------
Disposals 0
--------------------------------------------------------------------------------
Depreciation -585 -391 -976
for the period
--------------------------------------------------------------------------------
Book value at 23,647 5,425 4,192 110 33,374
31 Match 2011
--------------------------------------------------------------------------------
FINANCIAL RATIOS
1.1.- 1.1.- 1.1.-
31.12.2011 31.3.2010 31.12.2010
------------------------------------------------------------------------------
Earnings per share, diluted, EUR 0.01 0.02 0.25
------------------------------------------------------------------------------
Earnings per share, EUR 0.01 0.02 0.25
------------------------------------------------------------------------------
Equity per share, EUR 1.88 1.65 1.88
------------------------------------------------------------------------------
Operating cash flow per share, diluted, EUR 0.02 -0.17 0.36
------------------------------------------------------------------------------
Return on investment, per cent 4.4 6.4 14.1
------------------------------------------------------------------------------
Return on equity, per cent 3.0 5.5 13.7
------------------------------------------------------------------------------
Operating profit / turnover, per cent 1.7 2.7 6.3
------------------------------------------------------------------------------
Net gearing, per cent 39.7 98.7 36.6
------------------------------------------------------------------------------
Equity ratio, per cent 50.6 35.2 50.2
------------------------------------------------------------------------------
OTHER INFORMATION
1.1.- 1.1.- 1.1.-
31.3.2011 31.3.2010 31.12.2010
-------------------------------------------------------------------------------
PERSONNEL 1,154 1,092 1,120
Number of employees, average
-------------------------------------------------------------------------------
Number of employees, at the end of the period 1,149 1,105 1,138
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
COMMITMENTS, EUR 1,000 31.3.2011 31.3.2010 31.12.2010
-------------------------------------------------------------------------------
Collateral for own commitments
-------------------------------------------------------------------------------
Corporate mortgages 9,900 9,900 9,900
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Leasing and other rental commitments
-------------------------------------------------------------------------------
Falling due within 1 year 4,744 3,938 4,620
-------------------------------------------------------------------------------
Falling due within 1-5 years 4,840 6,856 5,690
-------------------------------------------------------------------------------
Falling due after 5 years 0 0 0
-------------------------------------------------------------------------------
Total 9,584 10,794 10,310
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Nominal value of interest rate swap agreement
-------------------------------------------------------------------------------
Falling due within 1 year 0 2,443 0
-------------------------------------------------------------------------------
Falling due within 1-5 years 4,601 3,321 4,893
-------------------------------------------------------------------------------
Falling due after 5 years 0 0 0
-------------------------------------------------------------------------------
Total 4,601 5,764 4,893
-------------------------------------------------------------------------------
Fair value -22 -164 -54
-------------------------------------------------------------------------------
CALCULATION OF KEY FIGURES
Diluted earnings per share = profit for the period / number of shares, adjusted
for issues and dilution, average
Earnings per share = profit for the period / number of shares, adjusted for
issues, average
Shareholders' equity per share = shareholders' equity / number of shares,
undiluted, on the closing date
Cash flow from operating activities, per share, diluted = net cash flow from
operating activities / number of shares, adjusted for issues and dilution,
average
Return on investment (ROI) =
(profit before tax + interest expenses + other financial expenses) /
balance sheet total − non-interest-bearing liabilities, average x 100
Return on equity (ROE) = net profit / shareholders' equity, average x 100
Gearing = interest-bearing liabilities - liquid assets / shareholders' equity x
100
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