|
|||
2012-04-13 07:56:07 CEST 2012-04-13 07:56:48 CEST BIRTINGARSKYLDAR UPPLÝSNINGAR BasWare - Interim report (Q1 and Q3)Basware : Basware Interim Report January 1-March 31, 2012Basware Corporation stock exchange release, April 13, 2012 at 09:00 BASWARE INTERIM REPORT JANUARY 1 - MARCH 31, 2012 (IFRS) SUMMARY January-March Q1: Demand for services grew stronger * Net sales EUR 27 435 thousand (EUR 26 058 thousand) - growth 5.3 percent * Operating profit EUR 1 822 thousand (EUR 2 957 thousand) - decrease of 38.4 percent * Operating profit 6.6 percent of net sales (11.3%) * Growth of Automation Services (SaaS and e-Invoicing) 46.5 percent * The estimated revenue to be recognized for current Automation Services agreements in production in the next twelve months is EUR 21.8 million, growth from previous quarter 19.4 percent * Recurring revenue (including Maintenance and Automation Services) 55.5% (48.3%) of net sales * Cash flow from operating activities EUR 10 634 thousand (EUR 14 623 thousand) * Earnings per share (diluted) EUR 0.11 (0.19) - decrease of 38.2 percent Basware expects, as earlier estimated, its net sales for 2012 to grow from the previous year. Operating profit (EBIT) for 2012 is expected to be between EUR 8-18 million. The interim report is unaudited. GROUP KEY FIGURES 1-3/ 1-3/ Change, 1-12/ EUR thousand 2012 2011 % 2011 ------------------------------------------------------------------------ Net sales 27 435 26 058 5.3 107 750 EBITDA 3 188 4 169 -24.0 17 284 Operating profit before IFRS3 amortization 2 455 3 458 -29.0 14 290 Operating profit 1 822 2 957 -38.4 12 280 % of net sales 6.6% 11.3% 11.4% Profit before tax 1 918 2 930 -34.5 12 332 Profit for the period 1 476 2 268 -34.9 9 671 Return on equity, % 6.0% 11.4% 11.6% Return on investment, % 8.0% 14.7% 14.9% Liquid assets *) 34 450 48 295 -28.7 42 977 Gearing, % -35.2% -50.7% -42.3% Equity ratio, % 70.5% 71.0% 81.9% Earnings per share, EUR 0.11 0.19 -38.3 0.76 Earnings per share (diluted), EUR 0.11 0.19 -38.2 0.76 Parent company's shareholder's equity per share, EUR 7.47 7.16 4.3 7.76 *) Includes cash, cash equivalents and financial assets at fair value through profit or loss REPORTING As of the first quarter in 2012 Basware Corporation reports one operating segment: Purchase to Pay, P2P. Basware reports income for products and services as follows: License sales, Professional Services, Maintenance and Automation Services. License sales consists of Purchase to Pay product family together with payment, financial planning and reporting solutions sold only in Finland. Automation Services include e-Invoicing, scanning services, printing services, catalogue management, purchase message exchange, activation services and SaaS services. Basware reports the estimated revenue to be recognized for current Automation Services agreements in production in the next twelve months. Automation Services agreements typically expand several years or are valid until further notice. As geographic information Basware reports geographical areas Finland, Scandinavia, rest of the Europe and Other. In the geographical information net sales is split by customer's location. Net sales and operating profit are also reported by the location of the assets. In annual financial statements the geographical information of non-current assets is reported by the location of the assets. Basware issued a stock exchange release of changes in external reporting in 2012 on March 19, 2012. CEO Esa Tihilä comments in conjunction with the Interim Report:"I am satisfied with our performance in the first quarter and in particular the strong growth in Automation Services as well as the fact that recurring revenue accounted for as much as 55.5% of the company's net sales. The company is undergoing a transformation from a software company into a service company, which requires additional investments and changes our operating methods, solutions, and services. We are aiming at completely new customer groups through segmented customer management and portfolio of products and services. Our strategic goal is to become the world's leading e-Invoice operator. During the first quarter, we concluded several significant deals in all of our geographic segments. With regard to the service business, the demand increased on the whole, and demand shifted from license sales towards Software as a Service (SaaS) solutions. The deals made also included virtual operator agreements as new distribution channel models. Automation Services have already increased their share to 19.8% of net sales. Recurring revenue (Maintenance and Automation Services) continued to account for an increasing share of net sales, totaling 55.5% of net sales. The transaction volume processed by Automation Services continued to grow favorably during the first quarter, increasing by 77.1%. Increasing transaction volumes are essential to the continuous development of Automation Services. During the first quarter, our net sales increased by 5.3% to EUR 27.4 million, with our operating profit amounting to 6.6% of net sales, or EUR 1.8 million. License sales' share of net sales decreased compared to the previous year, with the majority of deals being based on SaaS solutions. The realization of the investments required for the company's growth as planned contributed to the decrease in net sales. These include increasing the Volume Sales function and Volume Delivery implementation consultation, investments in the growth of Automation Services and launch of the Basware Alusta platform technology. Basware launched the Alusta platform technology during the first quarter of 2012. The Alusta technology combines Basware's financial process competence and cloud services with usage-based pricing, guaranteeing organizations of all sizes easy connectivity through an open network. The company's next-generation product suite is also offered as a service. The Alusta technology supports Basware's strategic growth and will improve the company's competitiveness. The company will continue to follow its strategy of focusing increasingly on the service business, selling software as a service instead of licenses." Market outlook and operating environment Market estimates released in April 2012 expect the software market to grow 6.2 percent globally (forecast unchanged) and 8.0 percent in the U.S. in 2011 (forecast unchanged). The entire IT services market is expected to grow by 4.7 percent globally (forecast unchanged) and by 7.3 percent in the U.S. (previous estimate 6.8%) in 2012. According to research companies, the software market is expected to grow at a rate of 7.0 percent globally, IT services by 5.6% and the IT market as a whole by 7.3 percent. The number of acquisitions and partnerships has increased in the market. Companies active in the market are trying to strengthen their supplier networks and expand geographically. Consolidation is expected to continue in the business environment, with the role of services growing in companies' portfolios. Basware continues active analyzing of acquisition targets especially in European e- Invoicing market according to Basware's strategy. The launch of Basware's next generation solutions during the first quarter in 2012 will further improve the competitiveness of Basware's solutions and services. Through the acquisition of German e-Invoicing operator we gained innovative technology, which will improve the competitiveness of the company. Also Automation Services will have a positive impact on the competitiveness, improving the predictability and transparency of the company's net sales and profitability in the long term. Basware aims to become a leading company in e-invoicing worldwide. E-Invoicing and the supporting services are targeted to connect suppliers and buyers also outside of Basware's existing software customer base, leading into a higher potential. The penetration rate of e-Invoicing is low, between 5-30 percent depending on the country, which creates a solid foundation for the future growth of Basware Automation Services. The role of offshoring operations will continue to grow in the company's strategy. R&D and Automation Services operations at Basware's Indian office have already succeeded in gaining a significant role. The company is surveying the development of offshoring in order to improve profitability also with regard to new service business operations and internal support functions. The company is also investigating the possibility of new geographical regions in expanding offshoring. Espoo, Finland, April 13, 2012 BASWARE CORPORATION Board of Directors For more information, please contact CEO Esa Tihilä, Basware Corporation Tel. +358 40 480 7098 Analyst and Press Briefing Basware arranges today, April 13, 2012 a briefing on the Interim Report for the press and analysts at 11:00 a.m. in Hotel Kämp, Pohjoisesplanadi 29, Helsinki, Finland. During this briefing CEO Esa Tihilä and CFO Mika Harjuaho will comment on the events and financial performance of the quarter. Welcome. A conference call for analysts will take place on April 13 at 3 p.m. EEST: Preregistration is required to listen to the conference call: https://emea.directeventreg.com/registration/event/70450316 Preregistration is required to see the presentation during the conference call: http://webeventservices.reg.meeting-stream.com/62160_basware/ Distribution: NASDAQ OMX Helsinki Ltd Key media www.basware.com Enclosure: Basware_interim_report_Q1_2012 [HUG#1602194] |
|||
|