2010-08-06 08:15:00 CEST
2010-08-06 08:15:02 CEST
REGULATED INFORMATION
QPR Software - Interim report (Q1 and Q3)
QPR SOFTWARE'S NET SALES ROSE TO EUR 3,443 THOUSAND, OPERATING MARGIN WAS 9.2%, EARNINGS PER SHARE EUR 0.02
QPR SOFTWARE PLC STOCK EXCHANGE RELEASE 6 AUGUST, 2010 9.15 AM
INTERIM REPORT 1 JANUARY - 30 JUNE, 2010
QPR SOFTWARE'S NET SALES ROSE TO EUR 3,443 THOUSAND,
OPERATING MARGIN WAS 9.2%, EARNINGS PER SHARE EUR 0.02
Summary
April-June 2010:
- Net sales EUR 1,773 thousand (April-June 2009: 1,688)
- Operating profit EUR 171 thousand (184)
- Operating margin 9.6% of net sales (10.9)
- Cash flow from operations rose to EUR 139 thousand (-8)
- Earnings per share EUR 0.01 (0.01).
January-June 2010:
- Net sales EUR 3,443 thousand (January-June 2009: 3,316)
- Operating profit EUR 316 thousand (327)
- Operating margin 9.2% of net sales (9.9)
- Cash flow from operations rose to EUR 488 thousand (243)
- Earnings per share EUR 0.02 (0.02).
QPR Software's net sales increased by 5.0% in April-June 2010 compared to the
same period in the previous year and were EUR 1,773 thousand (4-6/2009: 1,688).
Professional services net sales increased substantially (+64.7%) from the last
year thanks to new packaged service products and improved general economic
situation in Finland. However, software net sales decreased 3.9% from the
previous year. This was due to the transition to software subscription sales in
the Finnish home market. As a result, the net sales from domestic software
sales decreased markedly (-26.0%). The company estimates that the transition to
subscription sales will, however, have a positive impact on net sales in
Finland in the longer term.
Operating profit in April-June remained somewhat lower compared to the previous
year and was EUR 171 thousand (184). This was attributable to outlays made in
commencing direct sales in the Russian market and higher personnel expenses than
last year.
The outlook remains unchanged. QPR Software estimates the Group´s net sales and
operating profit to grow in 2010 compared to the previous year (net sales in
2009: EUR 6,618 thousand; operating profit: EUR 705 thousand). Maintenance,
subscription and professional services net sales are expected to show clear
improvement in the second half of 2010 compared to the same period in 2009.
The interim report has been prepared in accordance with the IAS 34 standard,
“Interim reports”. The information presented in this interim report is
unaudited.
KEY FIGURES
--------------------------------------------------------------------------------
| (EUR 1,000) | Apr- | Apr- |Change,| Jan- | Jan- | Change,| Jan- |
| | June, | June,| % | June, | June, | % | Dec, |
| | 2010 | 2009 | | 2010 | 2009 | | 2009 |
--------------------------------------------------------------------------------
| Net sales | 1,773 |1,688 | 5.0 | 3,443 | 3,316 | 3.8 | 6,618 |
--------------------------------------------------------------------------------
| Operating profit | 171 | 184 | -7.1 | 316 | 327 | -3.4 | 705 |
--------------------------------------------------------------------------------
| % of net sales | 9.6 | 10.9 | | 9.2 | 9.9 | | 10.6 |
--------------------------------------------------------------------------------
| Profit before tax | 126 | 179 | -29.6 | 246 | 328 | -25.0 | 668 |
--------------------------------------------------------------------------------
| Profit for the | 93 | 145 | -35.9 | 188 | 267 | -29.6 | 517 |
| period | | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 5.2 | 8.6 | | 5.5 | 8.1 | | 7.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | | | | 0.02 | 0.02 | | 0.04 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
| EPS (diluted), | | | | 0.02 | 0.02 | | 0.04 |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Equity per share, | | | | 0.20 | 0.21 | | 0.21 |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from | | | | 488 | 243 | | 953 |
| operating | | | | | | | |
| activities | | | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | | | | 1,742 | 2,105 | | 1,929 |
| equivalents | | | | | | | |
--------------------------------------------------------------------------------
| Net liabilities | | | | -758 | -792 | | -831 |
--------------------------------------------------------------------------------
| Gearing, % | | | | -30.7 | -30.8 | | -32.3 |
--------------------------------------------------------------------------------
| Equity ratio, % | | | | 42.2 | 51.1 | | 42.5 |
--------------------------------------------------------------------------------
| Return on equity,%| | | | 14.9 | 20.2 | | 19.5 |
-------------------------------------------------------------------------------
| Return on | | | | 15.2 | 19.8 | | 21.4 |
| investment, % | | | | | | | |
--------------------------------------------------------------------------------
APRIL-JUNE 2010 COMPARED WITH APRIL-JUNE 2009
THE GROUP
Group net sales by geography, (EUR 1,000):
--------------------------------------------------------------------------------
| | Apr- | Share, | Apr- | Share, | Change, | |
| | June, | % | June, | % | % | |
| | 2010 | | 2009 | | | |
--------------------------------------------------------------------------------
| Domestic | 730 | 41.2 | 768 | 45.5 | -4.9 | |
--------------------------------------------------------------------------------
| International | 1,043 | 58.8 | 920 | 54.5 | 13.4 | |
--------------------------------------------------------------------------------
| Total | 1,773 | 100.0 | 1,688 | 100.0 | 5.0 | |
--------------------------------------------------------------------------------
QPR Software Group´s net sales in the second quarter of 2010 were EUR 1,773
thousand (1,688), representing a growth of 5.0% compared to the same period in
2009. International net sales increased 13.4%, but the domestic net sales
decreased 4.9%. The rapid growth of professional services net sales had a
positive impact on domestic net sales, but the transition to software
subscription sales in the home market had a clearly lowering effect to it. The
company estimates that the transition to subscription sales will, however, have
a positive impact on net sales in Finland in the longer term.
The estimated revenue to be recognized for current subscription agreements in
the next twelve months is EUR 267 thousand, assuming similar churn rate as in
maintenance service contracts. QPR reports software subscription net sales as
part of maintenance services. In subscription based model, net sales are
accumulated in a slower manner than in license sales, but the share of recurring
revenue is significantly larger.
International net sales improved 13.4%, which was mainly attributable to
increase in maintenance services net sales and professional services net sales
linked to software implementations.
Group net sales divided into software licenses, maintenance services and
professional services as follows, (EUR 1,000):
--------------------------------------------------------------------------------
| | Apr- | Share, | Apr- | Share, | Change, | |
| | June, | % | June, | % | % | |
| | 2010 | | 2009 | | | |
--------------------------------------------------------------------------------
| Software | 484 | 27.3 | 628 | 37.2 | -22.9 | |
| licenses | | | | | | |
--------------------------------------------------------------------------------
| Maintenance | 930 | 52.5 | 842 | 49.9 | 10.5 | |
| services | | | | | | |
--------------------------------------------------------------------------------
| Professional | 359 | 20.2 | 218 | 12.9 | 64.7 | |
| services | | | | | | |
--------------------------------------------------------------------------------
| Total | 1,773 | 100.0 | 1,688 | 100.0 | 5.0 | |
--------------------------------------------------------------------------------
Software license sales decreased compared to last year and were EUR 484
thousand (628).The decrease was mainly due to transition to subscription sales
in Finland. In addition, software sales development in Russia was not
satisfactory as customers postponed their software acquisition decisions.
Maintenance services net sales (including software subscription sales) were EUR
930 thousand (842). The increase is mainly attributable to the introduction of
software subscription sales in the second half of 2009.
Professional services net sales rose 64.7% to EUR 359 thousand (218). Net sales
growth was accelerated by the new packaged service products offered by the
company and the improved economic situation. Also the launch of direct sales in
Russia had a positive impact on professional services sales.
Operating profit in April-June was EUR 171 thousand (184). Costs increased from
previous year by 5.4%, which was mainly due to outlays made in launching direct
sales operations in Russia and increase in personnel costs. Operating margin was
9.6% (10.9) of net sales.
Depreciation and amortization grew to EUR 151 thousand (95). This was mainly
attributable to the acquisition of the Russian businesses in the end of 2009 and
amortization of R&D expenses. Net profit before tax was EUR 126 thousand (179),
and after tax EUR 93 thousand (145).
Earnings per share (diluted) were EUR 0.01 (0.01).
BUSINESS SEGMENTS
Group net sales by business segments, (EUR 1,000):
--------------------------------------------------------------------------------
| | Apr- | Share, | Apr- | Share, | Change, | |
| | June, | % | June, | % | % | |
| | 2010 | | 2009 | | | |
--------------------------------------------------------------------------------
| Software Sales | 1,017 | 57.4 | 901 | 53.4 | 12.9 | |
| International | | | | | | |
--------------------------------------------------------------------------------
| Software Sales Finland | 427 | 24.1 | 577 | 34.2 | -26.0 | |
--------------------------------------------------------------------------------
| Service and Solutions | 329 | 18.5 | 210 | 12.4 | 56.7 | |
--------------------------------------------------------------------------------
| Total | 1,773 | 100.0 | 1,688 | 100.0 | 5.0 | |
--------------------------------------------------------------------------------
Group operating profit by business segments, (EUR 1,000):
--------------------------------------------------------------------------------
| | Apr- | Share,| Apr- | Share, | Change, | |
| | June,| % | June, | % | % | |
| | 2010 | | 2009 | | | |
--------------------------------------------------------------------------------
| Software Sales | 163 | 95.3 | 66 | 35.9 | 147.0 | |
| International | | | | | | |
--------------------------------------------------------------------------------
| Software Sales Finland | 49 | 28.7 | 218 | 118.5 | -77.5 | |
--------------------------------------------------------------------------------
| Service and Solutions | 41 | 24.0 | -13 | -7.1 | 415.4 | |
--------------------------------------------------------------------------------
| Not allocated | -82 | -48.0 | -87 | -47.3 | 5.7 | |
--------------------------------------------------------------------------------
| Total | 171 | 100.0 | 184 | 100.0 | -7.1 | |
--------------------------------------------------------------------------------
Software Sales International
Software Sales International business segment´s net sales in April - June
rose 12.9% and were EUR 1,017 thousand (901). The growth is attributable to
higher international professional and maintenance services sales. Professional
services sales to Russia increased, but software sales development was
unsatisfactory as customers postponed their software acquisition decisions. QPR
resellers' software net sales increased somewhat. The segment's operating profit
increased markedly to EUR 163 thousand (66).
QPR delivered software, among others, in Abu Dhabi to Ernst & Young, in Belgium
to Umicore, in Denmark to Danish Railways (DSB), in Estonia to Elisa Eesti AS,
in France to Renault Dacia Automobile, in Kazakhstan to Kazzinc, in Russia to
TNK-Nyagan, in South Africa to PetroSA and in the USA to Aramark.
Software Sales Finland
Software Sales Finland business segment´s net sales in April - June
decreased 26% due to decline in software license sales and were EUR 427 thousand
(577). The decline is attributable to the Company´s transition to subscription
software sales in Finland. Software Sales Finland, however, acquired clearly
more new customers than in previous year, and the Company sees good potential
for add-on sales to these new customers. Furthermore, the Company believes that
the subscription based business model enables significant expansion in its
potential customer base. Operating profit declined, due to decreased net sales,
to EUR 49 thousand (218).
In Finland QPR delivered software, among others, to Aalto University, Cargotec
Corporation, Enfo Oyj, The Finnish Medicines Agency Fimea, Fira Oy, Lindorff Oy,
HAMK University of Applied Sciences, Laurea University of Applied Sciences, Oy
Transmeri Ab, Peab Oy, SRV Asunnot Oy and to the KuntaIT unit of the Finnish
ministry of Finance.
Service and Solutions
Service and Solutions business segment´s net sales and operating profit in
April - June 2010 increased significantly due to good demand for service
products and improved economic situation. Especially demand for Process
management framework -service product increased markedly during the period.
Segment's net sales rose 56.7% and were EUR 329 thousand (210). Operating profit
improved to EUR 41 thousand (-13) due to improved net sales.
JANUARY-JUNE 2010 COMPARED WITH JANUARY-JUNE 2009
THE GROUP
QPR Software Group´s net sales in the January - June 2010 were EUR 3,443
thousand (3,316)
The growth was attributable to good demand for service products in the domestic
market and increased professional services and maintenance services sales in the
international market. International net sales in January - June were EUR 2,003
thousand (1,790)
Domestic net sales decreased and were EUR 1,440 thousand (1,526). Change from
the previous year is attributable to transition to subscription based software
pricing.
Group net sales by geography, (EUR 1,000):
--------------------------------------------------------------------------------
| | Jan- | Share, | Jan- | Share, | Change, | Jan- |
| | June, | % | June, | % | % | Dec, |
| | 2010 | | 2009 | | | 2009 |
--------------------------------------------------------------------------------
| Domestic | 1,440 | 41.8 | 1,526 | 46.0 | -5.6 | 2,783 |
--------------------------------------------------------------------------------
| International | 2,003 | 58.2 | 1,790 | 54.0 | 11.9 | 3,835 |
--------------------------------------------------------------------------------
| Total | 3,443 | 100.0 | 3,316 | 100.0 | 3.8 | 6,618 |
--------------------------------------------------------------------------------
Group net sales divided into software licenses, maintenance services and
professional services as follows, (EUR 1,000):
--------------------------------------------------------------------------------
| | Jan- | Share, | Jan- | Share, | Change, | Jan- |
| | June, | % | June, | % | % | Dec, |
| | 2010 | | 2009 | | | 2009 |
--------------------------------------------------------------------------------
| Software | 969 | 28.1 | 1,157 | 34.9 | -16.2 | 2,394 |
| licenses | | | | | | |
--------------------------------------------------------------------------------
| Maintenance | 1,808 | 52.5 | 1,710 | 51.6 | 5.7 | 3,338 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Professional | 666 | 19.4 | 449 | 13.5 | 48.3 | 886 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Total | 3,443 | 100.0 | 3,316 | 100.0 | 3.8 | 6,618 |
--------------------------------------------------------------------------------
Maintenance net sales increased mainly due to improved subscription software
sales to EUR 1,808 thousand (1,710).
Professional services net sales were EUR 666 thousand (499). Its share
of Group's net sales increased and was 19.4% (13.5).
Operating profit in January - June decreased somewhat due to increased
operational costs and was EUR 316 thousand (327). Accordingly, the share of
operating profit decreased to 9.2% from net sales (9.9). Depreciation and
amortization grew to EUR 280 thousand (209) mainly due to the acquisition of
Russian business operations in the end of 2009 and amortization of R&D
expenses.
Net profit after tax in January-June was EUR 188 thousand (267), which
corresponded to 5.5% of net sales (8.1).
Earnings per share (diluted) were EUR 0.02 (0.02).
BUSINESS SEGMENTS
Group net sales by business segments, (EUR 1,000):
--------------------------------------------------------------------------------
| | Jan- | Share,| Jan- | Share, | Change, | Jan- |
| | June, | % | June, | % | % | Dec, |
| | 2010 | | 2009 | | | 2009 |
--------------------------------------------------------------------------------
| Software Sales | 1,972 | 57.3 | 1,747 | 52.7 | 12.9 | 3,728 |
| International | | | | | | |
--------------------------------------------------------------------------------
| Software Sales Finland | 851 | 24.7 | 1,137 | 34.3 | -25.2 | 2,042 |
--------------------------------------------------------------------------------
| Service and Solutions | 620 | 18.0 | 432 | 13.0 | 43.5 | 848 |
--------------------------------------------------------------------------------
| Total | 3,443 | 100.0 | 3,316 | 100.0 | 3.8 | 6,618 |
--------------------------------------------------------------------------------
Group operating profit by business segments, (EUR 1,000):
--------------------------------------------------------------------------------
| | Jan- | Share, | Jan-| Share, | Change, | Jan-
|
| | June, | % | June, | % | % | Dec, |
| | 2010 | | 2009 | | | 2009 |
--------------------------------------------------------------------------------
| Software Sales | 312 | 98.7 | 88 | 26.9 | 254.5 | 503 |
| International | | | | | | |
--------------------------------------------------------------------------------
| Software Sales Finland | 83 | 26.3 | 416 | 127.2 | -80.0 | 668 |
--------------------------------------------------------------------------------
| Service and Solutions | 82 | 25.9 | 4 | 1.2 | 1,950.0 | -67 |
--------------------------------------------------------------------------------
| Not allocated | -161 | -50.9 | -181 | -55.3 | 11.0 | -400 |
--------------------------------------------------------------------------------
| Total | 316 | 100.0 | 327 | 100.0 | -3.4 | 705 |
--------------------------------------------------------------------------------
Software Sales International
Software Sales International business segment´s net sales in January - June
increased due to improved software sales and implementation related professional
services sales to EUR 1,972 thousand (1,747). Accordingly, operating profit
increased to EUR 312 thousand (88).
Software Sales Finland
Software Sales Finland -business segment´s net sales in January - June decreased
to EUR 851 thousand (1,137) due to the Company´s transition to subscription
software sales. Operating profit decreased, due to lower net sales, to EUR 83
thousand (416).
Service and Solutions
Service and Solutions business segment´s net sales and operating profit in
January - June 2010 increased markedly due to good demand for packaged service
products and improved economic situation. Segment's net sales improved to EUR
620 thousand (432) and operating profit to EUR 82 thousand (4).
FINANCE AND INVESTMENTS
The value of total assets at the end of June 2010 was EUR 6,917 thousand
(6,599).
Cash flow from operating activities was EUR 488 thousand (243). The main reason
for increase in cash flow is change in working capital compared to respective
period in 2009. Cash and cash equivalents at the end of the review period were
EUR 1,742 thousand (2,105). A dividend of EUR 244 thousand (368) and a
distribution of EUR 122 thousand from the invested non-restricted equity fund
(0) were paid during the reporting period.
The Group´s investments in the review period totaled to EUR 169 thousand (397),
which is mainly attributable to R&D investments. No business acquisitions took
place during the reporting period.
The Group´s interest bearing liabilities decreased and were EUR 984 thousand
(1,313) at the end of the reporting period. The gearing ratio was -30.7%
(-30.8). Return on capital employed was 15.2% (19.8).
Short-term liabilities include deferred revenue in total of EUR 1,080 thousand
(1,049). At the end of reporting period, quick ratio was 2.14 (3.69).
At the end of the reporting period, the Group equity stood at EUR 2,457 thousand
(2,568), and equity to assets ratio was 42.2% (51.1). The decrease in equity to
assets ratio is attributable to the Russian business acquisition in the end of
2009 and acquisition of own shares. Return on equity was 14.9% (20.2).
In the Group´s balance sheet as of 30 June, 2010, the remaining amount of
deferred tax is EUR 353 thousand (494). The full amount is in the books of the
parent company.
PERSONNEL
At the end of the June 2010, the Group employed a total of 66 persons (56). Out
of them nine were employed by QPR's Russian subsidiary, OOO QPR Software, in
Moscow. Average number of personnel in the review period was 63 (56).
PRODUCT DEVELOPMENT
The amount of R&D expenses in the review period were EUR 697 thousand (575),
representing 20.2% of net sales (17.3%).
During the review period, R&D expenses have been activated as assets for a total
amount of EUR 97 thousand (48). The depreciation period of capitalized R&D
expenses is 4 years. The depreciation of activated R&D expense was EUR 82
thousand (77).
Product development employed 17 people (17) at the end of the review period,
corresponding to 26% of the total personnel (30%).
The core know-how of product development remains centralized within the own
organization. Long-term co-operation continued with established subcontractors.
A pilot project with new a subcontractor was also carried out during the review
period. QPR Software is a Microsoft Gold Certified Partner since 2007.
During the review period, Research & Development activities focused on the
development of a new version of the QPR product family, QPR 8.2, planned to be
released in the first half of 2011 as well as developing concepts and prototypes
for new software products broadening the QPR offering. In addition development
of a new tool for automatic process analysis, QPR ProcessAnalyzer, was started.
QPR offers an, easy-to-use, ready-to-run software that combines enterprise
architecture, process modeling and analysis (QPR ProcessGuide), performance
management and measurement (QPR ScoreCard), and business intelligence (QPR
FactView) into one complete solution for process management, quality management,
risk management and compliance.
With the help of QPR software solutions, organizations optimize business
processes, take control of risk and compliance issues, improve operational
performance and drive strategy throughout their organization in order to comply
with rules and regulation as well as manage transition caused by strategic or
regulatory demands.
The software products developed by QPR are fast to implement and adapt to
customers' evolving requirements and their chosen management methodology. QPR
software applications are especially designed to be compatible with Microsoft
software products and are scalable from a single-user to an organization-wide
management system.
The QPR product family has been localized into 26 languages (26).
COMPANY SHARES AND TRADING IN COMPANY SHARES
The Company's share capital on 30 June, 2010 was EUR 1,359,089.93 divided into
12,444,863 shares. QPR Software Plc has one share class. The book counter value
is EUR 0.11. Each share has one vote and equal right to dividend. The shares are
incorporated to the book-entry system maintained by Euroclear Finland Oy.
At the end of review period, the Company had a total of 621 shareholders (562).
In January — June 2010 trading in company shares amounted to EUR 471 thousand
(400), i.e. an average of EUR 3,829 per trading day (3,365). Trading in share
was in total 507,051 shares (487,196), giving an average of 4,122 shares per
trading day (3,961). Turnover in shares corresponds to 4.1% of the total shares
(3.9) and the average price was EUR 0.93 per share (0.85). The highest closing
price during the period was EUR 0.99 (0.98) and the lowest EUR 0.89 (0.76).
The total market value of the company shares was EUR 10,828 thousand (11,106)
with closing price of EUR 0.89 (0.91) at 30 June, 2010.
OWN SHARES
The Company acquired 20,249 own shares in January - June 2010. At the end of
June the Company held 278,249 of its own shares with a total book counter value
of EUR 30,607.39 and a total purchase price of EUR 236,391.48. Own shares held
by the company represented 2.24% of the Company´s capital stock (1.93).
The Board of Directors has been granted by the Annual Shareholders Meeting of
March 18, 2010 a share repurchases authorization, valid until next Annual
Shareholders Meeting, to repurchase company shares in total of 250,000 shares at
maximum. According to the authorization the company may acquire own shares in
order to strengthen the company's capital structure, to be used as payment in
corporate acquisitions or when the company acquires assets related to its
business or as part of the company's incentive programs in a manner and to the
extent decided by the Board of Directors, or to be transferred for other
purposes or to be cancelled.
OTHER EVENTS IN THE REPORTING PERIOD
Subsidiary OOO QPR Software started its operations in Russian Federation and CIS
countries as of 2 March, 2010. The company is a fully owned subsidiary of QPR
Software's subsidiary QPR CIS Oy. OOO QPR Software is domiciled and located in
Moscow and employed nine persons at the end of June.
The distribution of EMT responsibilities were reorganized as of 18 February
2010 when EMT's secretary Jyrki Karasvirta received responsibility for
Company's marketing and communications as an EMT member and Teemu Lehto for
business development.
EVENTS AFTER THE REPORTING PERIOD
The Executive Management Team of QPR Software Plc consists of the following
persons as of 1 July, 2010: Chief Executive Officer Jari Jaakkola (chairman),
Vice President Software Sales International Antti Ainasoja, Vice President
Business Operations Finland Matti Erkheikki, Vice President Marketing and
Communications Jyrki Karasvirta, Vice President Business Development Teemu
Lehto, Chief Financial Officer Päivi Martti (previously Vahvelainen) and Vice
President Products and Technology Tony Virtanen.
STRATEGY
According to the strategic guidelines of the Company, QPR aims to substantially
increase the number of QPR software users both in new and existing customer
organizations. The Company believes that this will have a positive effect also
on the sales of professional services. Pricing will be further simplified, and
affordable solutions are offered also to organizations with large number of
users.
The company aims to accelerate its software sales process and deployment of its
customer solutions by creating service concepts around QPR software, and
offering replicable frameworks that are based on target group specific needs.
In international markets QPR focuses on further diversifying and strengthening
its sales channel. In the near regions QPR will invest especially in sales to
Russia.
Product development is focused on supporting the chosen service offering, by
utilizing both the existing QPR products and their strong Microsoft
compatibility.
The Company continues to follow the structural developments in the software industry, and aims actively to participate in it.
DECISIONS MADE BY THE ANNUAL SHAREHOLDERS' MEETING AND GOVERNANCE
The Annual Shareholders' Meeting held on 18 March, 2010 made the following
decisions:
The Annual Shareholders' Meeting confirmed the company's financial statements
and the Group's financial statements for the financial period of 1 January - 31
December, 2009 and released the Board of Directors and the Managing Director
from liability.
The Annual Shareholders' Meeting approved the Board's proposals that a per-share
dividend of EUR 0.02, a total of EUR 243,737.26 is paid and a distribution of
EUR 0.01 per share, totaling in EUR 121,868.63 is made to the shareholders from
the invested non-restricted equity fund. The payments were made to shareholders
who were entered in the company's shareholder register, maintained by Euroclear
Finland Oy, on the record date of 23 March, 2010. The date of both payments was
6 April, 2010.
The Annual Shareholders' Meeting resolved that the Board of Directors consists
of five (5) ordinary members. The Annual Shareholders' Meeting elected the
following members to the Board of Directors: Aino-Maija Fagerlund, Jyrki Kontio,
Antti Laine, Vesa-Pekka Leskinen and Asko Piekkola.
In its first meeting immediately following the Annual Shareholders' Meeting, the
Board of Directors elected Vesa-Pekka Leskinen as Chairman of the Board. The
Board of Directors noted that both new members, Aino-Maija Fagerlund and Antti
Laine, are independent from the Company and its main shareholders.
KPMG Oy Ab, Authorized Public Accountants, continues as QPR Software Plc's
Auditors.
The Annual Shareholders' Meeting decided to keep the Board of Directors'
emolument the same as in 2009. A yearly emolument of EUR 25,230 will be paid to
the Chairman of the Board and EUR 16,820 to the other Members of the Board.
The Annual Shareholders' Meeting decided to authorize the Board of Directors to
decide on an issue of new shares and conveyance of the own shares held by the
company (share issue) either in one or in several occasions. The share issue can
be carried out as a share issue against payment or without consideration on
terms to be determined by the Board of Directors.
The authorization also includes the right to issue special rights, in the
meaning of Chapter 10 Section 1 of the Companies Act, which entitle to the
company's new shares or the company's own shares held by the company against
consideration.
In the share issue and/or based on the special rights a maximum of 4,000,000 new
shares can be issued and a maximum of 550,000 own shares held by the company can
be conveyed. The authorization is in force until the next Annual Shareholders'
Meeting.
The Annual Shareholders' Meeting decided to authorize the Board of Directors to
decide on an acquisition of own shares on the following conditions. Based on the
authorization own shares may be acquired, either in one or in several occasions,
the aggregate maximum amount of 250,000 shares. The authorization is in force
until the next Annual Shareholders' Meeting.
The conditions of all authorizations of the Board are available in their
entirety on the investors section of the company's web site, www.qpr.com, and on
the stock exchange release, published by the company on 18 March, 2010.
CORPORATE GOVERNANCE
QPR Software Plc complies with the NASDAQ OMX Helsinki Ltd's Guidelines for
Insiders issued on 9 October, 2009 and the Corporate Governance Code effective
as of 1 January, 2009.
The Company's Corporate Governance Statement is available in the Investor
section of the Company's website, www.qpr.com. Also available in the investor
section is further information, such as, administration of insiders register,
public insiders register, list of major shareholders, articles of association,
charter of the Board, description of how internal control and internal audit is
organized, introductions of the members of the Board and Executive Management
Team, and the information published by the company in the review period.
SHORT-TERM RISKS AND UNCERTAINTIES
Internal control and risk management in QPR Software Plc aims to ensure that the
Company operates efficiently and effectively, distributes reliable information,
complies with regulations and operational principles, reaches its strategic
goals and ensures continuity of its business.
It is the duty of the Board of Directors to monitor the appropriateness,
effectiveness and efficiency of risk management and internal control in QPR
Software Group. The Board of Directors also monitors that the Company has
defined operational principles for internal control and that the Company
monitors the effectiveness of internal control. Risk management report is
presented to the Board in connection with quarterly financial reporting.
Coordination of risk management and internal control and related reporting is
the responsibility of the Chief Financial Officer. QPR Software identifies the
risks by their essentiality: if actualized, the risks selected for monitoring
would have a material impact on the Company's business operations.
QPR has identified the following four groups of risks related to its operations:
risks related to business operations (country, customer, net sales forecasting
process, personnel, legal, financial), risks related to company's general
operational environment (economic fluctuations), risks related to information
and products (QPR products, IPR, data security) and risks related to financing
(foreign currency, bad debt). Property, operational and liability risks are
covered by insurance.
Financial risks include reasonable credit risk concerning individual business
partners, which is characteristic to any international business. QPR seeks to
limit this credit risk by continuous monitoring of standard payment terms,
receivables and credit limits. The management of QPR estimates that the
company´s credit loss risk is on a customary and reasonable level.
External business environment changes, such as economic fluctuations, are
included in the Company´s market and customer risks. The general economic
uncertainty or continuation of negative financial development may have a
negative impact on software market and thus, also to QPR´s business operations.
QPR´s market and customer risks are mitigated by the following factors: the
Company conducted business in several countries (in 53 during January-June
2010), both in public and private sector as well as in several different
business verticals. In addition, the customer benefits produced by QPR´s
products and solutions are related to optimization and streamlining of
operations, strategy implementation as well as risk management and compliance.
QPR believes, based on its earlier experiences from cyclical fluctuations that
demand for these customer benefits remains relatively strong even in recession.
No significant changes have taken place in QPR's short-term risks and
uncertainties during the financial period.
Risks related to QPR Software´s business are further described in the Annual
Report 2009, page 25 onwards (www.qpr.com/annual-reports.html).
FUTURE OUTLOOK
Market forecasts published in the beginning of 2010 estimate that value of
global software sales will increase 5-7% and global professional services sales
will increase 4-5% in 2010 compared to 2009.
Based on current software market growth forecasts, QPR´s own forecasts and
resellers' forecasts, QPR Software estimates net sales and operating profit to
grow in 2010 compared to 2009 (net sales in 2009: EUR 6,618 thousand; operating
profit: EUR 705 thousand). The nature of the software license business of the
QPR Group is seasonal. Seasonality of large software deals can affect
significantly net sales and profit of one individual quarter.
QPR SOFTWARE PLC'S FINANCIAL INFORMATION IN 2010
The Interim Report from January-September 2010 is published on Friday, 22
October, 2010.
QPR SOFTWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0)40 5026 397
www.qpr.com
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Main Media
Neither this press release nor any copy of it may be taken, transmitted into or
distributed in the United States of America or its territories or possessions.
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1,000) | Apr- | Apr- | Jan- | Jan- | Jan- |
| | June, | June, | June, | June, | Dec, |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales | 1,773 | 1,688 | 3,443 | 3,316 | 6,618 |
--------------------------------------------------------------------------------
| Other operating income | 3 | 25 | 37 | 32 | 35 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Material and services | 63 | 117 | 110 | 229 | 451 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Employee benefits | 1,040 | 890 | 2,049 | 1,785 | 3,524 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Depreciation | 151 | 95 | 280 | 209 | 466 |
--------------------------------------------------------------------------------
| Other operating expenses | 351 | 427 | 726 | 798 | 1,508 |
--------------------------------------------------------------------------------
| Operating profit | 171 | 184 | 316 | 327 | 705 |
--------------------------------------------------------------------------------
| Financial income and | -45 | -5 | -69 | 1 | -37 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 126 | 179 | 246 | 328 | 668 |
--------------------------------------------------------------------------------
| Income tax expense | -33 | -34 | -58 | -61 | -150 |
--------------------------------------------------------------------------------
| Profit for the period | 93 | 145 | 188 | 267 | 517 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period attributable to: |
--------------------------------------------------------------------------------
| Equity holders of the | | | | | |
| parent company | 100 | 145 | 195 | 267 | 517 |
--------------------------------------------------------------------------------
| Non-controlling interest | -7 | 0 | -7 | 0 | 0 |
--------------------------------------------------------------------------------
| | 93 | 145 | 188 | 267 | 517 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | 0.01 | 0.01 | 0.02 | 0.02 | 0.04 |
| (diluted), EUR | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.01 | 0.01 | 0.02 | 0.02 | 0.04 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated Statement of comprehensive income |
--------------------------------------------------------------------------------
| Profit for the period | 93 | 145 | 188 | 267 | 517 |
--------------------------------------------------------------------------------
| Exchange differences on | 45 | -10 | 93 | -5 | 11 |
| translating foreign | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Income tax relating to | - | - | - | - | - |
| components of other | | | | | |
| comprehensive income | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | 138 | 135 | 281 | 262 | 528 |
| income | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income attributable to: |
--------------------------------------------------------------------------------
| Equity holders of the | | | | | |
| parent company | 145 | 135 | 288 | 262 | 528 |
--------------------------------------------------------------------------------
| Non-controlling interest | -7 | 0 | -7 | 0 | 0 |
--------------------------------------------------------------------------------
| | 138 | 135 | 281 | 262 | 528 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET |
--------------------------------------------------------------------------------
| (EUR 1,000) | June 30, | June 30, | Dec 31, | |
| | 2010 | 2009 | 2009 | |
--------------------------------------------------------------------------------
| Assets | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Tangible assets | 117 | 188 | 145 | |
--------------------------------------------------------------------------------
| Other intangible assets | 1,637 | 1,305 | 1,720 | |
--------------------------------------------------------------------------------
| Other investments | 5 | 5 | 5 | |
--------------------------------------------------------------------------------
| Deferred tax assets | 353 | 494 | 413 | |
--------------------------------------------------------------------------------
| Total non-current assets | 2,112 | 1,992 | 2,283 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Trade and other | 3,063 | 2,502 | 2,662 | |
| receivables | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 1,742 | 2,105 | 1,929 | |
| equivalents | | | | |
--------------------------------------------------------------------------------
| Total current assets | 4,805 | 4,607 | 4,591 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 6,917 | 6,599 | 6,874 | |
--------------------------------------------------------------------------------
| Equity and liabilities | June 30, | June 30, | Dec 31, | |
| | 2010 | 2009 | 2009 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | |
--------------------------------------------------------------------------------
| Share capital | 1,359 | 1,359 | 1,359 | |
--------------------------------------------------------------------------------
| Reserve fund | 21 | 21 | 21 | |
--------------------------------------------------------------------------------
| Invested non-restricted | 5 | 371 | 127 | |
| equity fund | | | | |
--------------------------------------------------------------------------------
| Translation differences | -1 | -110 | -94 | |
--------------------------------------------------------------------------------
| Treasure shares | -236 | -194 | -209 | |
--------------------------------------------------------------------------------
| Retained earnings | 1,315 | 1,121 | 1,371 | |
--------------------------------------------------------------------------------
| Equity attributable to | 2,463 | 2,568 | 2,575 | |
| shareholders of the | | | | |
| parent company | | | | |
--------------------------------------------------------------------------------
| Non-controlling interest | -6 | 0 | 0 | |
--------------------------------------------------------------------------------
| Total equity | 2,457 | 2,568 | 2,575 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 679 | 984 | 793 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Non-Interest-bearing | 460 | 0 | 460 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Total non-current | 1,139 | 984 | 1,253 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Accounts payables and | 3,016 | 2,718 | 2,741 | |
| other payables | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 305 | 329 | 305 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Total current | 3,321 | 3,047 | 3,046 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 4,460 | 4,031 | 4,299 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | 6,917 | 6,599 | 6,874 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | | | |
--------------------------------------------------------------------------------
| (EUR 1,000) | Jan - June, | Jan - June, | Jan - Dec, |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Profit for the period | 188 | 267 | 517 |
--------------------------------------------------------------------------------
| Adjustments for the profit | | | |
--------------------------------------------------------------------------------
| Depreciation | 280 | 209 | 466 |
--------------------------------------------------------------------------------
| Non-cash transactions | 85 | -2 | 11 |
--------------------------------------------------------------------------------
| Changes in working capital | | | |
--------------------------------------------------------------------------------
| Changes in trade and other | -341 | 19 | -53 |
| receivables | | | |
--------------------------------------------------------------------------------
| Changes in accounts payable and | 306 | -253 | 61 |
| other liabilities | | | |
--------------------------------------------------------------------------------
| Interest expense and other | -21 | -5 | -31 |
| financial expenses | | | |
--------------------------------------------------------------------------------
| Interest income and other | 4 | 8 | 20 |
| financial income | | | |
--------------------------------------------------------------------------------
| Income taxes paid | -13 | 0 | -38 |
--------------------------------------------------------------------------------
| Net cash from operating | 488 | 243 | 953 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing | | | |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchases of tangible assets | -22 | -24 | -38 |
--------------------------------------------------------------------------------
| Purchases of intangible assets | -147 | -535 | -932 |
--------------------------------------------------------------------------------
| Net cash used in investing | -169 | -559 | -970 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Proceeds from issuance of share | 0 | 11 | 11 |
| capital | | | |
--------------------------------------------------------------------------------
| Proceeds from long-term loans | 0 | 1,131 | 1,132 |
--------------------------------------------------------------------------------
| Repayments of long term loans | -113 | 0 | -217 |
--------------------------------------------------------------------------------
| Purchases of own shares | -27 | -69 | -84 |
--------------------------------------------------------------------------------
| Invested non-restricted equity | -122 | 0 | -244 |
| fund distribution | | | |
--------------------------------------------------------------------------------
| Dividends paid | -244 | -368 | -368 |
--------------------------------------------------------------------------------
| Net cash used in financing | -506 | 705 | 230 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net change in cash and cash | -187 | 389 | 213 |
| equivalents | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents in the | 1,929 | 1,716 | 1,716 |
| beginning of period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents in the | 1,742 | 2,105 | 1,929 |
| end of period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY |
| 1 JANUARY - 30 JUNE, 2010 |
--------------------------------------------------------------------------------
| (EUR | Share |Reserve| Trans-| Trea- | In- | Retai- | Non- | Total |
| 1,000) |capital| fund |lation | sury |vested | ned | cont-| |
| | | |differ.| shares| non- | earn- |rolling | |
| | | | | | restr.| ings |interest| |
| | | | | | equity| | | |
| | | | | | fund | | | |
--------------------------------------------------------------------------------
| Share- | 1,359 | 21 | -94 | -209 | 127 | 1,371 | 0 | 2,575 |
| holders' | | | | | | | | |
| equity | | | | | | | | |
| Jan 1, 2010| | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -244 | | -244 |
| paid | | | | | | | | |
--------------------------------------------------------------------------------
| Invested | | | | | -122 | | | -122 |
| non-res- | | | | | | | | |
| triccted | | | | | | | | |
| equity | | | | | | | | |
| fund | | | | | | | | |
| distribu- | | | | | | | | |
| tion | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase | | | | -27 | | | | -27 |
| of own | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Comprehen- | | | 93 | | | 188 | | 281 |
| sive income| | | | | | | | |
--------------------------------------------------------------------------------
| Non-controlling | | | | | | -6 | -6 |
| Interest | | | | | | | |
--------------------------------------------------------------------------------
| Change in | 0 | 0 | 93 | -27 | -122 | -56 | -6 | -118 |
| share-
holders' | | | | | | | | |
| equity | | | | | | | | |
| Jan - June | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share- | 1,359 | 21 | -1 | -236 | 5 | 1,315 | -6 | 2,457 |
| holders'
equity | | | | | | | | |
| June 30, | | | | | | | | |
| 2010 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY |
| 1 JANUARY - 30 JUNE, 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1,000) | Share |Reserve| Trans- | Treasury| Invested | Retained| Total |
| |capital| fund | lation | shares |non-restr.| earnings| |
| | | | differ.| | equity | | |
| | | | | | fund | | |
--------------------------------------------------------------------------------
| Share- | 1,359 | 21 | -105 | -125 | 360 | 1,222 | 2,732 |
| holders' | | | | | | | |
| equity | | | | | | | |
| 1 Jan, 2009 | | | | | | | |
--------------------------------------------------------------------------------
| Shares | | | | | 11 | | 11 |
| issued | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -368 | -368 |
| paid | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | -69 | | | -69 |
| own shares | | | | | | | |
--------------------------------------------------------------------------------
| Comprehen- | | | -5 | | | 267 | 262 |
| sive income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | 0 | 0 | -5 | -69 | 11 | -101 | -164 |
| share- | | | | | | | |
| holders'
equity
| Jan - June | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share- | 1,359 | 21 | -110 | -194 | 371 | 1,121 | 2,568 |
| holders' | | | | | | | |
| equity June | | | | | | | |
| 30,2009 | | | | | | | |
--------------------------------------------------------------------------------
APPENDIX:
ACCOUNTING PRINCIPLES
The Interim consolidated financial statements are in compliance with IAS 34
“Interim Financial Reporting”. Apart from the changes in accounting principles
stated below, the accounting principles applied in the interim report are the
same as in the financial statements at December 31, 2009.
Changes in the accounting principles
The Group adopted the following standards, amendments to standard
interpretations from 1 January 2010 onwards:
- Revised IFRS 3 Business Combinations
- Revised IAS 27 Consolidated and Separate Financial Statements.
Following newly adopted standards and interpretations have not had any effect on
interim financial statements:
- Revised IFRS 2 Share-based Payment
- Revised IAS 39 Financial Instruments: recognition and measurement
- IFRIC 17 Distributions of Non-cash Assets to Owners
- IFRIC 18 transfer of Assets from customers
QPR Software´s business consists of software license sales, software
subscription sales, software maintenance sales and professional services.
Software subscription net sales are reported as part of maintenance services net
sales.
QPR Software Plc has three business segments: Software Sales International
(software license, subscription and maintenance sales outside of Finland),
Software Sales Finland (software license, subscription and maintenance sales in
Finland) and Service and Solutions (global professional service sales).
The geographical segments used by the Company are Domestic (Finland) and
International markets. The Company introduced hedging for its foreign currency
cash flows in June.
--------------------------------------------------------------------------------
| GROUP COMMITMENTS AND CONTINGENT LIABILITIES |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1,000) | June 30,| June 30,| Dec 31, |
| 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Business | 1,337 | 1,337 | 1,337 | |
| mortgage | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current lease liabilities |
--------------------------------------------------------------------------------
| Liabilities | 231 | 166 | 222 | |
| maturing | | | | |
| during one | | | | |
| year | | | | |
--------------------------------------------------------------------------------
| Liabilities | 168 | 12 | 261 | |
| maturing 2-5 | | | | |
| years | | | | |
--------------------------------------------------------------------------------
| Total | 399 | 178 | 483 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 1,736 | 1,515 | 1,820 | |
| commitments | | | | |
| and contingent | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency | June 30,| June 30,| Dec 31,| |
| Hedging | 2010 | 2009 | 2009 | |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal value | 510 | 0 | 0 | |
--------------------------------------------------------------------------------
| Current value | -11 | 0 | 0 | |
--------------------------------------------------------------------------------
GROUP INTANGIBLE AND TANGIBLE ASSETS (EUR 1,000)
--------------------------------------------------------------------------------
| CHANGE IN INTANGIBLE ASSETS
--------------------------------------------------------------------------------
| June 30,| June 30,| Dec 31, |
| 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition | 3,494 | 2,528 | 2,506 |
| cost Jan 1 | | | |
--------------------------------------------------------------------------------
| Increase | 147 | 374 | 988 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN TANGIBLE ASSETS |
--------------------------------------------------------------------------------
| | June 30,| June 30,| Dec 31, |
| 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition | 983 | 1,099 | 945 |
| cost Jan 1 | | | |
--------------------------------------------------------------------------------
| Increase | 22 | 23 | 38 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN GROUP INTEREST BEARING LOANS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | June 30,| June 30,| Dec 31, |
| 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest | 1,098 | 182 | 182 | |
| bearing | | | | |
| loans | | | | |
| Jan 1 | | | | |
--------------------------------------------------------------------------------
| Withdrawals | 0 | 1,131 | 1,132| |
--------------------------------------------------------------------------------
| Repayments | -113 | 0 | -217| |
--------------------------------------------------------------------------------
| Interest | 984 | 1,313 | 1,098 | |
| bearing | | | | |
| loans | | | | |
| 30 June / | | | | |
| 31 December | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY BUSINESS SEGMENT | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 April - 30 June 2010 | | | |
--------------------------------------------------------------------------------
| (1,000 EUR) | Software | Service | Software | Not | Group |
| | Sales | & | Sales | allo- | Total|
| | Inter-| Solutions| Finland | cated | |
| | national | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME STATEMENT INFORMATION | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 1,017 | 329 | 427 | 0 | 1,773 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 163 | 41 | 49 | -82 | 171 |
|-------------------------------------------------------------------------------
-
--------------------------------------------------------------------------------
| Finance income and | | | | -45 | -45 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Income tax expense | | | | -33 | -33 |
--------------------------------------------------------------------------------
| Profit for the period | 163 | 41 | 49 | -160 | 93 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION | | | | | |
--------------------------------------------------------------------------------
| Depreciation | 84 | 9 | 58 | 0 | 151 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 April- 30 June, 2009 |
--------------------------------------------------------------------------------
| (1,000 EUR) | Software | Service | Software | Not | Group |
| | Sales | & | Sales | allo- | Total|
| | Inter-| Solutions| Finland | cated | |
| | national | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME STATEMENT INFORMATION | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 901 | 210 | 577 | 0 | 1,688 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 66 | -13 | 218 | -87 | 184 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance income and | | | | -5 | -5 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Income tax expense | | | | -34 | -34 |
--------------------------------------------------------------------------------
| Profit for the period | 66 | -13 | 218 | -126 | 145 |
--------------------------------------------------------------------------------
|-------------------------------------------------------------------------------
-
| OTHER INFORMATION | | | | | |
--------------------------------------------------------------------------------
| Depreciation | 56 | 9 | 30 | 0 | 95 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 January - 30 June, 2010 |
--------------------------------------------------------------------------------
| (1,000 EUR) | Software | Service | Software | Not | Group |
| | Sales | & | Sales | allo- | Total|
| | Inter-| Solutions| Finland | cated | |
| | national | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME STATEMENT INFORMATION | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 1,972 | 620 | 851 | 0 | 3,443 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 312 | 82 | 83 | -161 | 316 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance income and | | | | -69 | -69 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Income tax expense | | | | -58 | -58 |
--------------------------------------------------------------------------------
| Profit for the period | 312 | 82 | 83 | -288 | 188 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION | | | | | |
--------------------------------------------------------------------------------
| Depreciation | 146 | 19 | 115 | 0 | 280 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 January - 30 June, 2009 |
--------------------------------------------------------------------------------
| (1,000 EUR) | Software | Service | Software | Not | Group |
| | Sales | & | Sales | allo- | Total|
| | Inter-| Solutions| Finland | cated | |
| | national | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME STATEMENT INFORMATION | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 1,747 | 432 | 1,137 | 0 | 3,316 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 88 | 4 | 416 | -181 | 327 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance income and | | | | 1 | 1 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Income tax expense | | | | -61 | -61 |
--------------------------------------------------------------------------------
| Profit for the period | 88 | 4 | 416 | -241 | 267 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION | | | | | |
--------------------------------------------------------------------------------
| Depreciation | 114 | 20 | 75 | 0 | 209 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT PER QUARTER | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1,000) | Jan- | Jan- | Apr- | Apr- | Jul- | Oct- |
| | March, | March,| June, | June, | Sept, | Dec, |
| | 2010 | 2009 | 2010 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 1,671 | 1,628 | 1,773 | 1,688 | 1,501 | 1,801 |
--------------------------------------------------------------------------------
| Other operating | 34 | 7 | 3 | 25 | 3 | 0 |
| income | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Material and services | 47 | 112 | 63 | 117 | 134 | 88 |
--------------------------------------------------------------------------------
| Employee benefits | 1,009 | 895 | 1,040 | 890 | 748 | 991 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | 129 | 114 | 151 | 95 | 126 | 131 |
--------------------------------------------------------------------------------
| Other operating | 375 | 371 | 351 | 427 | 337 | 373 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 145 | 143 | 171 | 184 | 159 | 218 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and | -25 | 6 | -45 | -5 | -10 | -28 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 120 | 149 | 126 | 179 | 149 | 190 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax expenses | -25 | -27 | -33 | -34 | -33 | -56 |
--------------------------------------------------------------------------------
| Profit for the period | 95 | 122 | 93 | 145 | 116 | 134 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP KEY FIGURES | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR (1,000) | Jan- | Jan- | Jan- | Jan- | Jan- |
| | June, | June, | March, | March, | Dec, |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales | 3,443 | 3,316 | 1,671 | 1,628 | 6,618 |
--------------------------------------------------------------------------------
| Net sales growth, % | 3.8 | -16.5 | 2.6 | -7.2 | -11.9 |
--------------------------------------------------------------------------------
| Operating profit | 316 | 327 | 145 | 143 | 705 |
--------------------------------------------------------------------------------
| % of net sales | 9.2 | 9.9 | 8.7 | 8.8 | 10.6 |
--------------------------------------------------------------------------------
| Profit or loss before tax | 246 | 328 | 120 | 149 | 668 |
--------------------------------------------------------------------------------
| % of net sales | 7.1 | 9.9 | 7.2 | 9.2 | 10.1 |
--------------------------------------------------------------------------------
| Profit for the period | 188 | 267 | 95 | 122 | 517 |
--------------------------------------------------------------------------------
| % of net sales | 5.5 | 8.1 | 5.7 | 7.5 | 7.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity,% | 14.9 | 20.2 | 14.4 | 18.6 | 19.5 |
--------------------------------------------------------------------------------
| Return on investment,% | 15.2 | 19.8 | 14.2 | 21.4 | 21.4 |
--------------------------------------------------------------------------------
| Interest bearing | 984 | 1,313 | 984 | 182 | 1,098 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 1,742 | 2,105 | 2,091 | 1,163 | 1,929 |
--------------------------------------------------------------------------------
| Net liabilities | -758 | -792 | -1,107 | -981 | -831 |
--------------------------------------------------------------------------------
| Equity | 2,457 | 2,568 | 2,709 | 2,495 | 2,575 |
--------------------------------------------------------------------------------
| Gearing,% | -30.7 | -30.8 | -40.8 | -39.3 | -32.3 |
--------------------------------------------------------------------------------
| Equity ratio,% | 42.2 | 51.1 | 43.5 | 66.2 | 42.5 |
--------------------------------------------------------------------------------
| Total balance sheet | 6,917 | 6,599 | 7,285 | 5,501 | 6,874 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments in | 169 | 397 | 65 | 96 | 1,026 |
| non-current assets | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 4.9 | 12.0 | 3.9 | 5.9 | 15.5 |
--------------------------------------------------------------------------------
| Research and development | 697 | 575 | 353 | 308 | 1,325 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 20.2 | 17.3 | 21.1 | 18.9 | 20.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of | 63 | 56 | 59 | 57 | 57 |
| personnel | | | | | |
--------------------------------------------------------------------------------
| Personnel at the | 57 | 55 | 57 | 55 | 55 |
| beginning of period | | | | | |
--------------------------------------------------------------------------------
| Personnel at the end of | 66 | 56 | 60 | 57 | 57 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share,€ | 0.02 | 0.02 | 0.01 | 0.01 | 0.04 |
--------------------------------------------------------------------------------
| Earnings per share | 0.02 | 0.02 | 0.01 | 0.01 | 0.04 |
| (diluted), € | | | | | |
--------------------------------------------------------------------------------
| Equity per share, € | 0.20 | 0.21 | 0.22 | 0.20 | 0.21 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Company has redefined the booking principles of received advance payments as |
| of July 1, 2009. Equity ratio figures for previous periods have been revised |
| accordingly. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MAJOR SHAREHOLDERS 30 JUNE, 2010 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Number of | Percentage of |
| | shares | shares and |
| | | votes |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Ulkomarkkinat Oy | 1,600,000 | 12.86 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Jouko Pelkonen | 462,000 | 3.71 % |
--------------------------------------------------------------------------------
| Pohjolan Rahoitus Oy | 868,000 | 6.97 % |
--------------------------------------------------------------------------------
| Electrosale Oy | 22,300 | 0.18 % |
--------------------------------------------------------------------------------
| Total | 1,352,300 | 10.87 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Vesa-Pekka Leskinen | 851,400 | 6.84 % |
--------------------------------------------------------------------------------
| Kauppamainos Oy | 475,170 | 3.82 % |
--------------------------------------------------------------------------------
| Total | 1,326,570 | 10.66 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Alesco S.A | 1,300,000 | 10.45 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Autocarrera Oy Ab | 1,245,817 | 10.01 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Kari Junkkonen | 512,016 | 4.11 % |
--------------------------------------------------------------------------------
| Fortel Invest Oy | 422,321 | 3.39 % |
--------------------------------------------------------------------------------
| SR Eq Technology | 330,850 | 2.66 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Päivi Marttila | 292,972 | 2.35 % |
--------------------------------------------------------------------------------
| Edina Oy | 33,900 | 0.27 % |
--------------------------------------------------------------------------------
| Total | 326,872 | 2.63 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Asko Piekkola | 316,438 | 2.54 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Jari Jaakkola | 230,000 | 1.85 % |
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| Value FM Oy | 20,000 | 0.16 % |
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| Total | 250,000 | 2.01 % |
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| Esa Pääkkönen | 246,054 | 1.98 % |
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| Veli-Mikko Leskinen | 232,530 | 1.87 % |
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| Matti Kanninen | 195,826 | 1.57 % |
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| Tony Virtanen | 172,112 | 1.38 % |
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| Janne Laakso | 140,287 | 1.13 % |
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| Kai-Erik Becker | 140,000 | 1.12 % |
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| Teemu Lehto | 136,468 | 1.10 % |
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| Other shareholders | 2,198,402 | 17.67 % |
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| Total | 12,444,863 | 100.0 % |
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CALCULATION OF KEY INDICATORS:
Return on equity (ROE), % (counted on yearly level):
Profit for the period x 100
________________________________________________
Shareholders' equity + minority interest (average)
Return on capital employed (ROCE), % (counted on yearly level):
Profit before taxes + interest and other financial expenses x 100
__________________________________________________________________
Balance sheet total - non-interest bearing liabilities (average)
Equity ratio, %:
Shareholders' equity x 100
______________________________________
Balance sheet total - deferred revenue
Gearing, %:
Interest bearing liabilities - cash and cash equivalents x 100
______________________________________________________________
Shareholders' equity
Earnings per share, Euro:
Profit for the period attributable to parent company shareholders
_________________________________________________________________
Adjusted number of shares over the financial year (average)
Equity per share, Euro:
Profit for the period attributable to parent company shareholders
_________________________________________________________________
Adjusted number of shares at the end of the financial period
Dividend per share, Euro:
Total dividend paid
___________________________________________________________
Adjusted number of shares at the end of the financial period
Market value of share capital:
(Number of shares - own shares) x share price at the end of the financial
period
Turnover of shares, % of share capital:
Turnover (number of shares) x 100
_________________________________
Number of shares issued (average)
Quick ratio:
Current assets - inventories
______________________________________
Current liabilities - deferred revenue
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