2011-05-26 08:00:00 CEST
2011-05-26 08:00:05 CEST
REGULATED INFORMATION
Efore - Interim report (Q1 and Q3)
EFORE GROUP INTERIM REPORT NOVEMBER 2010 - APRIL 2011: OVER 40% YEAR-OVER-YEAR GROWTH IN NET SALES
Espoo, Finland, 2011-05-26 08:00 CEST (GLOBE NEWSWIRE) -- EFORE PLC Interim
Report May 26, 2011 9 a.m.
EFORE GROUP INTERIM REPORT NOVEMBER 2010 - APRIL 2011: OVER 40% YEAR-OVER-YEAR
GROWTH IN NET SALES
Period under the review in brief (November 1, 2010 — April 30, 2011)
- Net sales totaled EUR 42.7 million (EUR 30.1 million)
- Results from operating activities was EUR 1.9 million (EUR -1.4 million)
- Profit before taxes was EUR 1.7 million (EUR -1.1 million)
- Profit for the period was EUR 1.0 million (EUR -1.0 million)
- Earnings per share was EUR 0.03 (EUR -0.02)
Second quarter in brief (February 1, 2011 — April 30, 2011)
- Net sales totaled EUR 20.8 million (EUR 15.8 million)
- Results from operating activities was EUR 0.7 million (EUR -0.9 million)
- Profit before taxes was EUR 0.7 million (EUR -0.8 million)
- Profit for the period was EUR 0.5 million (EUR -0.7 million)
- Earnings per share was EUR 0.01 (EUR -0.02)
FINANCIAL ESTIMATE FOR THE FISCAL YEAR 2011
Efore adjusted its financial estimate for fiscal year 2011 on May 17, 2011 as
follows: The company estimates at least 20% year-over-year net sales growth and
result of operating activities to grow to at least 4%.
Vesa Vähämöttönen, Efore's President and CEO:
“Strong demand for mobile broadband was driving Efore's deliveries during the
second quarter. Our net sales increased by 30% year-over-year although there
was a decrease in deliveries in the beginning of the quarter due to Chinese New
Year's holidays in February. We are prepared to increase our Suzhou factory
capacity by 40% with new production equipment investments during this year.
Building the foundation for Electric Vehicles power products business is
progressing as planned.”
NOVEMBER - APRIL NET SALES AND FINANCIAL DEVELOPMENT
Net sales for the period under the review totaled EUR 42.7 million (EUR 30.1
million). Net sales by customer group was as follows: Telecommunication 79.2 %
(72,0 %) and industrial electronics 20.8 % (28,0 %). Geographically Efore's
deliveries were to the following areas: EMEA EUR 20.0 million (EUR 15.5
million), APAC EUR 21.4 million (EUR 13.9 million) and the Americas EUR 1.3
million (EUR 0.7 million) which totaled EUR 42.7 million (EUR 30.1 million).
Final geographical distribution of Efore's products deviates from the before
mentioned as Efore's customers distribute further the products from the
logistics centers to other markets.
The results from operating activities was EUR 1.9 million (EUR -1.4 million).
NET SALES AND FINANCIAL DEVELOPMENT FOR THE SECOND QUARTER
Net sales for the second quarter totaled EUR 20.8 million (EUR 15.8 million).
Net sales by customer group was as follows: Telecommunication 79.5 % (73,9 %)
and industrial electronics 20.5 % (26.1 %). Geographically Efore's deliveries
were to the following areas: EMEA EUR 10.4 million (EUR 8.4 million), APAC EUR
10.0 million (EUR 7.1 million) and the Americas EUR 0.4 million (EUR 0.4
million) which totaled EUR 20.8 million (EUR 15.8 million).
The results from operating activities was EUR 0.7 million (EUR -0.9 million).
BUSINESS DEVELOPMENT
Investment on product and technology development during the period under review
was EUR 3.5 million (EUR 3.5 million) representing 8.1 % (11.5 %) of net sales.
Strong demand in telecom sector continued and was more evenly balanced between
customers. Chinese New Year's holidays in February caused a decrease in
deliveries in the beginning of the quarter.
Efore and the Finnish Defence Forces agreed that Efore will deliver EMP
protected power supply system cabinets to government's security network project
(TUVE). Deliveries start during the summer 2011. The value of the contract for
Efore is about EUR 3 million in 2011.
Efore announced in January 2011 that it will establish a new company for
electric vehicle (EV) power electronic products in China. Efore (Suzhou)
Automotive Technology has now been established in Suzhou International Science
Park and the business license has been granted. New premises have been chosen
for product development purposes. Also new key persons have been recruited.
Efore has several development projects with customers ongoing in this business
area.
In order to maintain the delivery flexibility under increased demand conditions
the company prepares to invest EUR 3,5 million to production equipment in its
Suzhou factory during 2011. Total capacity increase is 40% and first phase will
be in use during the summer 2011.
INVESTMENTS
Group investments in fixed assets during the period under review amounted to
EUR 1.5 million (EUR 0.8 million).
At the end of the period under review capitalized product development costs
amounted to EUR 0.8 million (EUR 1.3 million).
FINANCIAL POSITION
The Group's financial position during the period under review was good.
The consolidated interest-bearing cash reserves exceeded interest-bearing
liabilities by EUR 4.0 million (EUR 7.3 million). The consolidated net
financial income was EUR -0.2 million (EUR 0.4 million). The cash flow from
business operations was EUR 2.9 million (EUR 3.0 million). The cash flow after
investment was EUR 1.4 million (EUR 2.2 million).
The Group's solvency ratio was 46.4 % (50.9 %) and the gearing was -19.4 %
(-38.4 %).
Liquid assets excluding undrawn credit facilities totaled EUR 6.9 million (EUR
7.7 million) at the end of the period under review. The balance sheet total was
EUR 44.4 million (EUR 37.6 million).
PERSONNEL
The number of the Group's own personnel including temporary personnel averaged
912 (773) during the period under review and at the end of the period under
review it was 954 (807). At the end of April 2011 more than 92% of the
personnel worked outside of Finland.
SHARES, SHARE CAPITAL AND SHAREHOLDERS
The total number of Efore Plc shares at the end of the period under review was
42.529.648 and the registered share capital was EUR 15.000.000.
At the end of the fiscal year the number of the Group's own shares was 922.149.
In addition to this Efore Management Oy, a company belonging to Efore group
owned 2.084.400 pcs of Efore shares.
The highest share price during the period under review was EUR 1.08 and the
lowest price was EUR 0.69. The average price during the period under review was
EUR 0.90 and the closing price was EUR 0.92. The market capitalization
calculated at the final trading price during the period under review was EUR
36.4 million.
The total number of Efore shares traded on the Nasdaq OMX Helsinki during the
period under review was 9.7 million and their turnover value was EUR 8.7
million. This accounted for 22,8 % of the total number of shares. The number of
shareholders totaled 3269 at the end of the period under review.
ACCOUNTING POLICIES
The financial statement has been drawn up in accordance with IAS 34 Standard on
Interim Financial Reporting and the Group's accounting principles presented in
the 2010 annual report. The information in this release is unaudited.
All the figures in the report have been rounded up/down, for which
reason the total of the individual figures when added together may be different
from the total shown.
The comparable information for year 2010 has been changed for net sales and
other operating income. Product development income, totaling EUR 0.2 million
has been transferred from other operating income to net sales during the second
quarter.
SHORT-TERM RISKS AND FACTORS OF UNCERTAINTY
The market typical fluctuation in demand can cause rapid changes in Efore's
business. The most significant business risks are related to the success of key
customers in their markets and to Efore's delivery capability for the key
customers.
Progress of the EV power electronics projects depends on the customers' own
project schedules and the establishment of the whole market.
A more comprehensive report on risk management is presented on the company's
web-sites.
OUTLOOK
Strong demand for Efore's main market, telecom power products is expected to
continue over whole fiscal year. WCDMA/HSPA (3G) continues as the main
technology but LTE (4G) deliveries will increase. Efore's main telecom sector
products are used in these configurations.
FINANCIAL ESTIMATE FOR THE FISCAL YEAR 2011
Efore adjusted its financial estimate for fiscal year 2011 on May 17, 2011. As
announced in the stock exchange release favorable financial development is
based on the increased demand for Efore's telecom and industrial power products
and on Efore's capability to respond to it. Strong demand is estimated to
continue and it reflects positively to the whole fiscal year.
Estimate was adjusted as follows: The company estimates at least 20%
year-over-year net sales growth and result of operating activities to grow to
at least 4%.
TABLES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million Feb./11- Feb./10- Nov./10- Nov./09- Nov./09-
Apr./11 Apr./10 Apr./11 Apr./10 Oct./10
3 months 3 months 6 months 6 months 12 months
Net sales 20,8 15,8 42,7 30,1 69,7
Change in inventories of
finished goods and work in 1,0 0,0 2,8 0,5 0,9
progress
Other operating income 0,0 0,1 0,1 0,1 0,2
Materials and services -15,1 -10,8 -31,6 -20,7 -48,1
Employee benefits expenses -3,7 -3,3 -7,2 -6,2 -12,6
Depreciation -0,6 -0,8 -1,3 -1,6 -3,1
Impairments 0,0 0,0 0,0 0,0 0,0
Other operating expenses -1,8 -1,9 -3,5 -3,5 -6,9
RESULTS FROM OPERATING 0,7 -0,9 1,9 -1,4 0,0
ACTIVITIES
% net sales 3,5 -5,7 4,4 -4,7 0,0
Financing income 0,1 0,2 0,1 0,5 0,5
Financing expenses -0,2 0,0 -0,4 -0,1 -0,5
Share of profit of associated
companies 0,1 0,0 0,1 0,0 0,0
PROFIT (-LOSS) BEFORE TAX 0,7 -0,8 1,7 -1,1 0,1
% net sales 3,4 -4,9 4,0 -3,6 0,1
Tax on income from operations -0,2 0,1 -0,7 0,1 0,1
PROFIT (-LOSS) FOR THE PERIOD 0,5 -0,7 1,0 -1,0 0,1
OTHER COMPREHENSIVE INCOME:
Translation differences -0,8 0,3 -0,6 0,6 0,3
Total comprehensive income -0,3 -0,5 0,4 -0,4 0,5
NET PROFIT/LOSS ATTRIBUTABLE
To equity holders of the 0,5 -0,7 1,0 -1,0 0,1
parent
To non-controlling interests 0,0 0,0 0,0 0,0 0,0
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
Equity holders of the parent -0,3 -0,5 0,4 -0,4 0,5
Non-controlling interests 0,0 0,0 0,0 0,0 0,0
EARNINGS PER SHARE CALCULATED
ON PROFIT ATTRIBUTABLE TO
EQUITY HOLDERS OF THE
PARENT:
Earnings per share, basic,eur 0,01 -0,02 0,03 -0,02 0,00
Earnings per share, diluted, 0,01 -0,02 0,03 -0,02 0,00
eur
INFORMATION ABOUT Feb./11- Feb./10- Nov./10- Nov./09- Nov./09-
GEOGRAPHICAL
AREAS, EUR million Apr./11 Apr./10 Apr./11 Apr./10 Oct./10
3 months 3 months 6 months 6 months 12 months
Americas 0,4 0,4 1,3 0,7 2,2
EMEA 10,4 8,4 20,0 15,5 32,5
APAC 10,0 7,1 21,4 13,9 35,1
Total 20,8 15,8 42,7 30,1 69,7
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
EUR million Apr. Apr. 30, change Oct.
30, 31,
2011 2010 % 2010
ASSETS
NON-CURRENT ASSETS
Intangible assets 1,3 1,8 1,5
Tangible assets 4,8 5,2 4,6
Investments in associates 0,7 0,6 0,6
Other long-term investments 0,0 0,0 0,0
NON-CURRENT ASSETS 6,8 7,6 -10,4 6,7
CURRENT ASSETS
Inventories 13,4 9,6 10,5
Trade receivables and other receivables 17,0 12,6 17,5
Tax receivable, income tax 0,3 0,1 0,1
Cash and cash equivalents 6,9 7,7 5,9
CURRENT ASSETS 37,6 30,0 25,3 34,0
ASSETS 44,4 37,6 18,1 40,6
EQUITY AND LIABILITIES
EQUITY
Share capital 15,0 34,5 15,0
Treasury shares -2,1 -0,6 -2,1
Other reserves 21,9 1,0 21,9
Translation differences -0,4 0,4 0,1
Retained earnings -14,0 -16,1 -15,0
Equity attributable to equity holders of 20,3 19,1 19,9
the parent
Equity attributable to non-controlling 0,3 0,0 0,3
interests
EQUITY 20,6 19,1 7,8 20,2
NON-CURRENT LIABILITIES
Interest-bearing liabilities 2,3 0,1 2,6
NON-CURRENT LIABILITIES 2,3 0,1 2,6
CURRENT LIABILITIES
Interest-bearing liabilities 0,6 0,2 0,6
Trade payables and other liabilities 20,2 17,6 16,7
Tax liabilities 0,4 0,0 0,2
Provisions 0,4 0,5 0,3
CURRENT LIABILITIES 21,5 18,4 17,9
LIABILITIES 23,8 18,5 20,5
TOTAL EQUITY AND LIABILITIES 44,4 37,6 18,1 40,6
GROUP KEY FIGURES, EUR Feb./11- Feb./1 Nov./1 Nov./09- Nov./09-
million 0- 0-
Apr./11 Apr./1 Apr./1 Apr./10 Oct./10
0 1
3 months 3 6 6 months 12 months
months months
Earnings per share, 0,01 -0,02 0,03 -0,02 0,00
basic,eur
Earnings per share, 0,01 -0,02 0,03 -0,02 0,00 diluted, eur
Equity per share, eur 0,51 0,48 0,51 0,48 0,50
Solvency ratio,% 46,4 50,9 46,4 50,9 49,7
Return on equity-%(ROE) 8,9 -15,1 9,7 -10,0 0,6
Return on 12,8 -15,7 15,6 -10,7 1,1
investment-%(ROI)
Gearing, % -19,4 -38,4 -19,4 -38,4 -13,3
Net interest-bearing -4,0 -7,3 -4,0 -7,3 -2,7
liabilities
Investments (intangible 0,5 0,5 1,5 0,8 1,6
and tangible assets)
as percentage of net 2,5 3,2 3,5 2,7 2,3
sales
Average personnel 936 783 912 773 821
CONSOLIDATED STATEMENT OF CASH FLOWS Nov./10 Nov./09 change Nov./09
- - -
EUR million Apr./11 Apr./10 % Oct./10
Cash flows from operating activities
Cash receipts from customers 45,6 30,3 64,0
Cash paid to suppliers and employees -42,0 -27,4 -65,4
Cash generated from operations 3,6 2,9 -1,4
Interest paid 0,0 0,0 0,0
Interest received 0,0 0,0 0,0
Other financial items -0,2 0,2 0,1
Income taxes paid -0,5 0,0 0,3
Net cash from operating activities (A) 2,9 3,0 -2,1 -1,0
Cash flows from investing activities
Purchase of tangible and intangible assets -1,5 -0,8 -1,6
Proceeds from sale of tangible and intangible 0,0 0,0 0,1
assets
Proceeds from repayments of loans 0,0 0,0 0,0
Proceeds from sales of investments 0,0 0,0 0,0
Dividend received 0,0 0,0 0,0
Net cash used in investing activities (B) -1,5 -0,8 86,8 -1,5
Cash flows from financing activities
Capital investment by the minority 0,0 0,0 0,3
Purchase of treasury shares 0,0 0,0 -0,1
Proceeds from short term borrowings 0,0 0,0 0,5
Repayment of short-term borrowings -0,3 0,0 0,0
Proceeds from long term borrowings 0,0 0,0 2,5
Repayment of long-term borrowings 0,0 0,0 0,0
Financial leasing repayment -0,1 -0,1 -0,3
Dividends paid 0,0 0,0 0,0
Net cash used in financing activities (C) -0,3 -0,1 3,0
Net increase/decrease in cash and cash
equivalents (A+B+C) 1,1 2,1 0,4
GROUP CONTINGENT LIABILITIES Apr. Apr. Oct.
30, 30, 31,
EUR million 2011 2010 2010
Security and contingent liabilities
For others
Other contingent liabilities 0,1 0,1 0,1
Operating lease commitments
Group as lessee
Non-cancellable minimum operating lease
payments:
Less than 1 year 1,5 1,4 1,5
1-5 years 1,2 2,2 1,7
Fair values of derivative financial
instruments
Currency derivatives, not hedge
Option contract
Nominal amount 1,4 3,0 2,9
Positive fair value 0,0 0,0 0,0
Negative fair value 0,0 0,0 0,0
THE FOLLOWING TRANSACTIONS WERE Apr. Apr. Oct.
30, 30, 31,
CARRIED OUT WITH RELATED PARTIES: 2011 2010 2010
EUR million
Associated companies
Purchases 0,0 0,0 0,1
Liabilities 0,0 0,0 0,0
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR Share Treasu Unrestr Other Transla Retain Equity Non-co Total
milli capita ry icted reserv tion ed holders ntroll
on l shares equity es differe earnin of the ing
reserve nces gs parent intere
sts
Equity 34,5 -0,6 0,0 1,0 -0,2 -15,2 19,5 0,0 19,5
Nov.1,
2009
Compre 0,0 0,0 0,0 0,0 0,6 -1,0 -0,4 0,0 -0,4
hensiv
e
incom
e
Equity 34,5 -0,6 0,0 1,0 0,4 -16,1 19,1 0,0 19,1
Apr.
30,
2010
EUR Share Treasu Unrestr Other Transla Retain Equity Non-co Total
milli capita ry icted reserv tion ed holders ntroll
on l shares equity es differe earnin of the ing
reserve nces gs parent intere
sts
Equity 15,0 -2,1 20,9 1,0 0,1 -15,0 19,9 0,3 20,2
Nov.1,
2010
Compre 0,0 0,0 0,0 0,0 -0,6 1,0 0,4 0,0 0,4
hensiv
e
incom
e
Equity 15,0 -2,1 20,9 1,0 -0,4 -14,0 20,3 0,3 20,6
Apr.
30,
2011
CALCULATION OF
KEY
FIGURES AND
RATIOS 30.4.2011
Return on = Profit before taxes + interest and other financing x 100
investment expenses /
(ROI), % (Equity + interest-bearing liabilities, average )
Return on Equity = Profit/loss for the period / Equity (average ) x 100
(ROE), %
Current ratio = Current assets / Current liabilities
Solvency ratio, % = Equity / (Total assets - advance payments received x 100
- own shares*)
Net = Interest-bearing liabilities - financial assets at
interest-bearing fair value through profit or loss - cash and cash
liabilities equivalents
Gearing, % = Net interest-bearing liabilities / Equity x 100
Earnings per = Profit or loss attributable to ordinary equity
share holders of the parent entity/ The weighted
aAverage number of ordinary shares outstanding
Dividend per = Dividend for the financial year / (Number of shares - own
share shares*)
Dividend payout = Dividend per share / Earnings per share x 100
ratio, %
Effective = Dividend per share /Adjusted share price at x 100
dividend yield, balance sheet date
%
Equity per share = Equity - own shares* /Number of shares at
balance sheet date
P/E-ratio = Adjusted share price at balance sheet date /
Earnings per share
Market = Adjusted share price at balance sheet date x
capitalization = outstanding number of shares at balance sheet
date
Average personnel = The average number of employees at the end of
each calendar month during the accounting
period
All share-specific figures are based on the issue-adjusted number of
shares.
Equity is the equity owned by the holders of the parent company's
shares.
Profit for the period is the fiscal period profit attributable to
equity holders of the parent.
* There were own shares held by company April 30, 2011.
EFORE PLC
Board of Directors
For further information please contact Mr.Vesa Vähämöttönen, President and CEO,
on May 26, 2011 at 9 - 11 a.m., tel. +358 9 4784 6312
Efore Plc will hold a news conference regarding the financial statement report
for analysts and media on May 26, 2011 at 11 a.m. in Helsinki World Trade
Center, address Aleksanterinkatu 17.
DISTRIBUTION
Nasdaq OMX Helsinki Oy
Principal media
Efore Group
Efore Group is an international company which develops and produces demanding
power products. Efore's head office is based in Finland and its production
units are located in China and in Estonia. Efore is present also in Sweden. In
the fiscal year ending in October 2010, consolidated net sales totaled EUR 69.7
million and the Group's personnel averaged 821. The company's share is quoted
on the Nasdaq OMX Helsinki Ltd. www.efore.com
Vesa Vähämöttönen, President and CEO, tel. +358 9 4784 6312
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