2007-10-24 10:50:21 CEST
2007-10-24 10:50:21 CEST
REGULATED INFORMATION
Ixonos - Quarterly report
IXONOS PLC INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2007
IXONOS PLC STOCK EXCHANGE RELEASE 24 OCTOBER, 2007
IXONOS PLC INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2007
IXONOS TURNOVER AND OPERATING PROFIT GREW STRONGLY
- Turnover for the review period was EUR 41.2 million (2006: EUR 27.0 million),
turnover growth was 52.4 per cent. Organic turnover growth was 38,5 per cent.
- Operating profit was EUR 3.6 million (2006: EUR 2.8 million), 8.7 per cent of
turnover, operating profit growth was 30.2 per cent.
- Operating profit without non-recurring expenses was EUR 4.2 million (2006:
EUR 2.9 million), 10.1 per cent of turnover, operating profit growth without
non-recurring expenses was 41.8 per cent.
- Net profit was EUR 2.5 million (2006: EUR 1.9 million), 6.1 per cent of
turnover, net profit growth was 32.5 per cent.
- Net profit without non-recurring expenses was EUR 2.9 million (2006: EUR 2.0
million), 7.1 per cent of turnover, net profit growth without non-recurring
expenses was 44.7 per cent.
- Earnings per share were EUR 0.33 (2006: EUR 0.26).
- Earnings per share without non-recurring expenses were EUR 0.39 (2006: EUR
0.28).
- Diluted earnings per share were EUR 0.32 (2006: EUR 0.25).
- Diluted earnings per share without non-recurring expenses were EUR 0.37
(2006: EUR 0.28).
- Turnover of the Systems Services Business Unit for the review period was EUR
16.8 million (2006: EUR 9.9 million), turnover increase was 68.8 per cent.
Operating profit of the Business Unit was EUR 1.6 million (2006: EUR 1.3
million), 9.6 per cent
of turnover, operating profit growth was 26.5 per cent.
- Turnover of the Telecommunications Business Unit for the review period was
EUR 24.7 million (2006: EUR 17.3 million), an increase of 43.1 per cent.
Operating profit of the Business Unit was EUR 3.8 million (2006: EUR 2.5
million), 15.3 per cent of
turnover, operating profit growth was 53.8 per cent.
- The turnover for the last quarter is expected to be significantly higher than
in the previous year, and the figure for the whole of 2006 is estimated to
exceed EUR 58 million.
- The Group's operating profit percentage without depreciation of intangible
rights in connection with the corporate acquisitions is expected to be at the
previous year's level in the last quarter. The operating profit for the full
year is expected to increase substantially on the previous year. The operating
profit percentage for the full financial year without the non-recurring expenses
of the first quarter and depreciation of intangible rights in connection with
the corporate acquisitions is expected to be at the same level as in 2006.
President and CEO Kari Happonen:
The company's turnover continued its strong growth throughout the third quarter
and exceeded that of the first nine months of the previous year by more than 50
per cent. Strong organic growth was further boosted by the acquisition of Mermit
Business Applications Oy and Cidercone Life Cycle Solutions Oy.
As in the early months of the year, both Business Units grew significantly
faster than the market in the third quarter. This means that throughout the
year, we have continued to win market share from our competitors and strengthen
customerships that are important to us.
Due to the EUR 0.55 million non-recurring expenses in the first quarter, related
to the change in the company name and the revamping of the corporate image and
the growth in depreciation during the third quarter of intangible rights in
connection with the corporate acquisitions, our operating profit percentage was
slightly below the figure for the corresponding period in 2006. However,
excluding the non-recurring expenses and depreciation of intangible rights, our
relative profitability was slightly better than in the previous year.
We believe that both of our Business Units will continue to grow strongly in the
last quarter. Despite fast growth, we expect to keep our business operations at
a relatively good level of profitability. Our operating profit is, however,
adversely affected by the increasing depreciation of intangible rights, which
resulted from corporate acquisitions. During the last quarter, this will amount
to more than EUR 0.4 million.
In the second quarter, to support our strategy, we acquired Mermit Business
Applications Oy in May. Founded in 1999, Mermit is a highly regarded specialist
company producing business-critical information system solutions and services.
The acquisition will significantly strengthen our capability to deliver
information systems services projects and will boost our capacity to deliver
demanding specification, design, architecture and integration services.
Mermit has a staff of 65 highly educated specialists in Espoo, Tampere and
Turku. All the employees continued at the Ixonos Group with their existing
status and benefits. Mermit's services cover systems and technology consulting,
architecture consulting, and systems design and specification.
In September, we acquired the entire share capital of Cidercone Life Cycle
Solutions Oy (LCS), a company producing business-critical mobile and Internet
services. The acquisition will strengthen Ixonos's readiness and capacity to
deliver and maintain software and system projects and complement Ixonos's
service provision with hosting services.
The services provided by LCS cover the entire life-cycle of software and
information systems, from process modelling to customer-specific software
development, hosting services, and systems maintenance and support. In its
software production, LCS makes extensive use of Open Source software components.
The company's customer-specific software solutions are a comprehensive service:
the customer uses the solution on the LCS servers over the Internet. LCS is
responsible for the maintenance of the servers and software and further software
development. The company has a staff of 30 software development and maintenance
experts in Helsinki who all continued at Ixonos with their existing status and
benefits.
According to our annual customer satisfaction survey published in June, our
customers value Ixonos's reliability and ability to take on agreed
responsibilities, business segment competence, and customer-specific
flexibility. The overall satisfaction with the service we offer is high and
exceeds the maximum value of the reference data of Market-Visio, the research
company that carried out the survey. Our customers also expressed stronger
interest in more extensive cooperation with Ixonos.
According to the survey, the customers have welcomed the change of the company
name, made in February. Feedback we have received from other stakeholders has
also been very positive. The company's new name and identity have already had a
favourable impact on the corporate image, helped to boost recruitment and made
the personnel more committed, which can be seen, for example, in the form of
lower personnel turnover.
I can only congratulate and thank all Ixonos personnel members for their
splendid performance during the first nine months of the year
FUTURE PROSPECTS
Market analysts estimate that the Finnish ICT service market will grow by 4-6
per cent in 2007. Even if private companies and public administration
organizations make only moderate inputs in the maintenance, further development
and upgrading of their information systems and software, Ixonos Systems has good
chances of expanding its Systems Services business. Boosted by the success of
new large-scale services with extensive responsibility, project management
services and acquired businesses, the Unit's turnover is expected to continue on
a growth path in the last quarter. The profitability of the Unit in the second
half of the year is expected to improve slightly compared with the first half of
the year.
For the latter part of the year, too, he growth expectations for the
Telecommunications Unit are based on the increasing demand for
comprehensive-responsibility software development, integration and testing
services, and the growing smart phone market. The last quarter business
operations of the Telecommunications Unit are expected to continue their strong
growth and the profitability is expected to stay at a good level.
Judging from the Business Units' order backlogs and tender prospects, the
turnover of the Ixonos Group in the last quarter is expected to be significantly
above the figure for the same period in 2006. The turnover for the whole of 2007
is expected to exceed EUR 58 million.
The Group's operating profit percentage in the last quarter without depreciation
of intangible rights in connection with the corporate acquisitions is expected
to be at the previous year's level. The operating profit for the full year is
expected to increase substantially on the previous year. The operating profit
percentage for the full financial year without the non-recurring expenses of the
first quarter and depreciation of intangible rights in connection with the
corporate acquisitions is expected to be at the same level as in 2006.
BUSINESS OPERATIONS
Ixonos operates in the ICT service markets, offering its customers flexible
technology consulting, software development, maintenance and project management
solutions that support their competitiveness and risk management. Ixonos's
services cover consulting and project-management expert services, as well as
software project deliveries and maintenance services with comprehensive
responsibility.
Ixonos's business is organized into two Business Units: Systems Services and
Telecommunications. The Systems Services Unit develops and maintains software
that is part of its customer companies' information systems, and produces
technology consulting and project management services. The Unit's most
significant customers operate in the telecommunications, finance and public
administration sectors.
The Telecommunications Unit produces hardware and software development, software
integration and testing services for the telecommunications sector. The Unit's
clientele comprises leading international mobile and smart phone manufacturers,
mobile network suppliers and telecom carriers.
The Ixonos Group comprises the following subsidiaries: Vega Technologies Oy,
Ixonos Project Management Services Ltd; Ixonos Technology Consulting Ltd
(formerly Mermit Business Applications Oy); Ixonos Ulkoistuspalvelut Oy
(formerly Cidercone Life Cycle Solutions Oy); Ixonos Slovakia s.r.o, which is
located in Kosice, Slovakia; and Ixonos Testhouse Oy, and its subsidiary, Ixonos
Testhouse Estonia OÜ, which is located in Tallinn, Estonia.
Systems Services
During the review period, the turnover of the Ixonos Systems Services Unit grew
by 68.8 per cent to EUR 16.8 million (2006: EUR 9.9 million). The Unit's
turnover was boosted by the launch of new customer projects, the strong growth
of Service 4 Mobile Oy (now Ixonos Project Management Services Ltd.), which was
acquired in June 2006 and produces project management services, and also by the
turnover of Mermit Business Applications Oy (now Ixonos Technology Consulting
Ltd), which was incorporated into the Unit's turnover from 1 June, 2007. The
turnover of Cidercone Life Cycle Solutions Oy (now Ixonos Ulkoistuspalvelut Oy),
which was acquired in September, was incorporated into the Unit's turnover as of
1 September.
The Unit's operating profit for the review period increased by 26.5 per cent, to
EUR 1.6 million (2006: EUR 1.3 million).
During the review period, the Unit invested heavily in improved project delivery
capabilities, open architecture solutions, data security services for Open
Source applicationsand streamlined software development methods. The acquisition
of Mermit Business Applications Oy will further strengthen the Unit's expertise
and delivery capabilities, especially in data system specification, design and
architecture services. This will make Ixonos more competitive in such areas as
the upgrading of public administration information systems. The acquisition of
Cidercone Life Cycle Solutions Oy will strengthen Ixonos's readiness and
capacity to deliver and maintain software and system projects and complement
Ixonos's service provision with hosting services.
The integration of the software production capacity of our Slovakian subsidiary
into the Unit's comprehensive-responsibility software production services, which
began in the first quarter, continued in the second and third quarters. The
resources of the Slovakian subsidiary are also utilized in the Unit's internal
software and methods development.
Competition on the market of the Systems Services Unit remained fierce
throughout the review period.
Telecommunications
During the period under review, the turnover of the Ixonos Telecommunications
Unit grew by 43.1 per cent, to EUR 24.7. million (2006: EUR 17.3 million). The
Unit managed to increase its market share with its key customerships. The Unit
continued the design work of several extensive customer projects as
comprehensive-responsibility deliveries and launched a big new
comprehensive-responsibility project, in which an entire wireless
telecommunications device is being developed for a key customer.
During the review period, the Telecommunications Unit improved its relative
profitability, compared with the previous year, and its operating profit grew by
53.8 per cent, to EUR 3.8 million (2006: EUR 2.5 million).
The Unit's strong smart phone competence as well as the lower-cost services in
Estonia and Slovakia will help to keep the Unit competitive when it is competing
for large-scale comprehensive-responsibility projects and aspiring to gain
market share on the international smart phone markets.
During the review period, Ixonos Testhouse Ltd, the subsidiary producing smart
phone software-testing and quality-assurance services, and its Tallinn-based
subsidiary Ixonos Testhouse Estonia OÜ grew into an entity employing more than
60 people.
The operations of the Telecommunications Unit's subsidiary in Kosice, Slovakia,
were launched according to plan during the review period. The Kosice unit
produces software development services for all stages of software project
production, and implements part-projects in software ventures for the
Telecommunications Unit's key customers. At the end of the review period, the
Kosice unit employed 40 telecommunications software experts, most of whom worked
in the Unit's customer projects.
In spring 2007, the Telecommunications Unit launched a large-scale internal
development project aiming to expand and deepen the Unit's Linux skills, and to
develop Open Source software and components for Linux-based mobile
communication. The expertise generated through the project has already helped
the Unit in winning new Linux-based customer projects.The global competition for
the software ventures of the leading international mobile and smart phone
manufacturers remained fierce.
UNCERTAINTY FACTORS IN THE NEAR FUTURE
The aim of Ixonos Plc's risk management is to ensure undisturbed and continuous
business operations and development, and to support the implementation of the
company's operational targets and to increase the company's value. For more
information about our risk management organization, process and identified
risks, go to www.ixonos.com/en/company/risk_management
At the moment, the biggest uncertainty factors relate to the growing
international competition and the reorganization of a significant customer.
Proliferating international competition, especially Indian, may tighten the
price competition of the business still further and thus cut the profit margins
of Finnish companies. Ixonos has prepared for the tightening price competition
by establishing offices in lower-cost regions. The reorganization of a
significant customer may temporarily postpone the launch of new projects at the
turn of the year and move some of the forecasted turnover for 2007 over to 2008.
TURNOVER
Consolidated turnover was EUR 41.2 million (2006: EUR 27.0 million), or 52.4 per
cent more than in the previous year. Of the turnover, 60 per cent was accrued by
the Telecommunications Unit and 40 per cent by the Systems Services Unit.
Turnover by segment
--------------------------------------------------------------------------------
| EUR 1,000 | 1-9 2007 | 1-9 2006 | 1-12 2006 |
--------------------------------------------------------------------------------
| Telecommunications | 24,705 | 17,262 | 24,879 |
--------------------------------------------------------------------------------
| Systems Services | 16,793 | 9,948 | 14,604 |
--------------------------------------------------------------------------------
| Eliminations | - 281 | - 168 | - 299 |
--------------------------------------------------------------------------------
| Group total | 41,217 | 27,042 | 39,184 |
--------------------------------------------------------------------------------
FINANCIAL RESULT
Consolidated operating profit was EUR 3.6 million (2006: EUR 2.8 million), and
profit before taxes was EUR 3,5 million (2006: EUR 2.6 million). Profit for the
review period was EUR 2.5 million (2006: EUR 1.9 million), which is 6.1 per cent
of turnover. Diluted earnings per share were EUR 0.32 (2006: EUR 0.25). Diluted
cash flow from business operations was EUR 0.12 per share (2006: EUR 0.04).
The consolidated result was burdened by a EUR 0.55 million non-recurring expense
item relating to the change of the company name and the new corporate image.
Without the above non-recurring expenses, the consolidated operating profit came
to EUR 4.2 million (10.1 per cent of the turnover) and the profit before taxes
to EUR 4.0 million (9.8 per cent of turnover). The profit for the review period
excluding non-recurring items was EUR 2.9 million (7.1 per cent of turnover).
Diluted earnings per share, excluding non-recurring items, were EUR 0.37 (2006:
0.28), and diluted cash flow from business operations per share was EUR 0.17
(2006: 0.05).
Operating profit by segment
--------------------------------------------------------------------------------
| EUR 1,000 | 1-9 2007 | 1-9 2006 | 1-12 2006 |
--------------------------------------------------------------------------------
| Telecommunications | 3,771 | 2,452 | 3,583 |
--------------------------------------------------------------------------------
| Systems Services | 1,604 | 1,267 | 1,629 |
--------------------------------------------------------------------------------
| Administration* | - 1,777 | - 956 | - 1,271 |
--------------------------------------------------------------------------------
| Group total | 3,599 | 2,763 | 3,941 |
--------------------------------------------------------------------------------
* The administrative costs include EUR 0.55 million of non-recurring expenses.
RETURN ON CAPITAL INVESTMENT
Consolidated return on equity (ROE) was 25.8 (2006: 27.8) per cent and return on
investment (ROI) was 23.2 (2006: 27.2) per cent.
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 46.8 million (2006: EUR 23.0 million).
Shareholders' equity was EUR 15.3 million (2006: EUR 9.7 million). Equity ratio
was 32.7 per cent (2006: 42.2 per cent). The Group's liquid assets stood at EUR
0.9 million at the end of the review period (2006: EUR 0.9 million). The Group's
liquidity remained good.
CASH FLOW
Consolidated cash flow from business operations was EUR 0.9 million (2006: EUR
0.3 million).
PERSONNEL
The number of personnel averaged 684 (2006: 476) during the review period and
was 812 (2006: 528) at the end of the period.
SHARES AND SHARE CAPITAL
Share turnover and price
The highest share price quoted during the review period was EUR 8.08 (2006: EUR
5.07), the lowest EUR 4.55 (2006: EUR 3.75) and the last price of the period
quoted on 28 September 2007 was EUR 6.42 (2006: EUR 4.02). The average price
over the review period was EUR 5.85 (2006: EUR 4.06). The number of shares
traded during the review period was 4,969,692 (2006: 2,630,839), which
corresponds to 62 per cent (2006: 36 per cent) of the total number of shares at
the end of the review period. The market value of the share capital at the final
quotation on 30 September 2007 was EUR 51,595,165 (2006: EUR 29,742,774).
Share capital
At the beginning of the year 2007 the company's registered share capital was EUR
296,948.00, and the number of shares was 7,423,700. During 2007, 10,000 shares
have been subscribed with option rights of the 2003 stock options plan BI,
11,000 shares with option rights of CI, 18,000 shares with option rights of CII,
54,500 with option rights of DI, and 15,500 shares with option rights of DII.
With the authorization granted by the Annual General Meeting held on 22 March
2007, the Board of Directors of Ixonos Plc decided on 7 May 2007 on a targeted
share issue in which 112,300 new Ixonos Plc shares were issued for subscription
by the previous principal owner and present Chief Executive Officer of Ixonos
Project Management Services Ltd as payment for the additional acquisition price
of the share capital of Ixonos Project Management Services Ltd. With the
authorization granted by the Annual General Meeting held on 22 March 2007, the
Board of Directors of Ixonos Plc decided on 20 June 2007 on a targeted share
issue in which 391,630 new Ixonos Plc shares were issued for subscription by the
owners of Mermit Business Applications Oy as payment for the acquisition price
of the share capital of Mermit Business Applications Oy. At the end of the
review period Ixonos's share capital was EUR 321,465.20 and the total number of
shares was 8,036,630.
Stock options plans 2003 and 2006
Under the 2003 stock options plan, 10,000 options have been released under AI,
10,000 options under AII, 82,500 options under BI, 22,500 options under BII,
100,000 options under CI, 35,000 options under CII, 127,500 options under DI,
and 112,500 options under DII. Under the 2003 options plan, 45,000 shares have
been subscribed with options BI, 5,000 shares with options BII, 23,500 shares
with options CI, 25,500 shares with options CII, 64,500 shares with options DI,
and 15,500 shares with options DII. The maximum number of shares that can be
subscribed with outstanding options under options plan 2003 is 321,000, which is
equivalent to 4.0 per cent of the company's total shares. The subscription price
is EUR 1.88 for AI and AII options, EUR 1.56 for BI and BII options, EUR 3.32
for CI and CII options, and EUR 3.22 for DI and DII options. The subscription
period for the 2003 options ends on 31 December 2008.
Under the 2005 stock options plan, 140,000 options have been released under AI,
140,000 options have been released under AII, 75,000 options have been released
under BI, and 75,000 options have been released under BII. Of the options of
series A, 15,000 AI options and 15,000 AII options have been returned to the
company based on the terms of the options. These options have been converted to
options of series B in accordance with the terms of options, and they have been
redistributed. The share subscription period for 2005 options AI started on 1
October 2007. The subscription period for options AII and BI will begin on 1
October 2008, and for options BII on 1 October 2009. The subscription price is
EUR 4.13 for options AI and AII and EUR 5.10 for options BI and BII. The
subscription period for the 2005 options ends on 31 December 2011.
Shareholders
There were 2,973 shareholders on 28 September 2007. Private persons owned 57 per
cent and corporations 43 per cent of the company's shares. Foreign ownership was
6 per cent of the total.
Board authorizations
The Annual General Meeting authorized the Board to decide on issuing up to
1,500,000 shares in one or more issues. The Board's decision may concern either
new shares or existing shares possibly held by the company. The maximum of the
authorization is equivalent to approximately 20.2 per cent of all company
shares. The authorization may be used to finance or implement corporate
acquisitions or other arrangements or for other purposes decided by the Board.
The authorization includes the right of the Board to decide on all share issue
terms and conditions, including the recipients of shares and the compensation to
be paid. Thus the authorization also includes the right to targeted issues, i.e.
the right to derogate from the shareholders' pre-emptive right, under conditions
laid down by law. The authorization will be effective until the next Annual
General Meeting but not later than 30 June 2008.
The Board of Directors has used the above authorization and decided, by two
separate decisions, to issue a total of 503,930 shares to finance corporate
acquisitions.
The Annual General Meeting authorized the Board to decide on the acquisition of
up to 742,370 of the company's own shares, provided that the company and its
subsidiaries at no time hold more than 10 per cent of the company's registered
shares altogether. The company may acquire its own shares to develop the capital
structure, to finance corporate acquisitions or other structural arrangements or
to be otherwise conveyed or cancelled. The minimum purchasing price for such
shares is the lowest market price quoted in publications during the
authorization period and the maximum purchasing price is the highest price
quoted in public trading during the authorization period. The Board of Directors
will decide on the means of acquisition of such shares and on the other terms
and conditions. The acquisition may derogate from the shareholders' pre-emptive
rights to acquire the company's shares (targeted acquisition), provided that
weighty financial grounds exist. Under this authorization, the company may
acquire its own shares only by using non-restricted equity. Thus such share
acquisitions will reduce the company's distributable non-restricted equity. The
authorization is effective until the next Annual General Meeting, but not later
than 30 June 2008.
The Board of Directors has not utilized the authorization to acquire the
company's own shares.
EXTRAORDINARY SHAREHOLDERS' MEETING
An Extraordinary Shareholders' Meeting of Tieto-X Plc on 25 January 2007
approved the proposal by the Board of Directors to change the company name and
the company's Articles of Association. The decision to change the company name
to Ixonos Plc was conditional on registration of the change by the Trade
Register. The Trade Register registered the change on 9 February 2007.
ANNUAL GENERAL MEETING DECISIONS
The AGM of Ixonos Plc held on 22 March 2007 adopted the company's and Ixonos
Group's financial statements for the financial period 1 January-31 December 2006
and granted discharge from liability to the Members of the Board of Directors
and the CEO.
The AGM decided to distribute EUR 0.27 per share as dividend. The dividend was
paid on 4 April 2007 on the shares that were registered on the balance date 27
March 2007 on the list of company shareholders maintained by the Finnish Central
Securities Depository Ltd.
The AGM confirmed six as the number of Board members. Members of the Board Eero
Hurme, Seppo Jaatinen, Matti Järvinen, Tero Laaksonen, Matti Makkonen and Esko
Siik were re-elected.
At its meeting following the AGM, the Board of Directors elected Tero Laaksonen
Chairman of the Board and Eero Hurme Deputy Chairman of the Board.
The AGM elected Peter Ramsey and Jari Kivihuhta to represent shareholders on the
Nomination Committee.
SUMMARY OF STOCK EXCHANGE RELEASES UNDER CHAPTER 2, SECTION 7 OF THE SECURITIES
MARKETS ACT
On 6 March 2007 the company published a release stating the company had set up a
subsidiary in Slovakia and opened a new office for it in Kosice. The
Slovakia-based subsidiary would produce testing services and software
development and maintenance services for customer projects run by the Group's
two business units and for the company's internal software development. The
purpose of the establishment of a new office was to secure the availability of
skilled software development and testing personnel in order to meet the needs of
strong expansion and ever-larger individual customer projects, and to boost the
volume of lower-price services in the Group's overall service range.
On 12 March 2007 the company published a release stating that the company's
turnover for the first quarter would exceed the turnover for the same period in
2006 by more than 40 per cent, amounting to approximately EUR 13.5 million.
Excluding approximately EUR 0.55 in million non-recurring costs relating to the
change of company name and the new corporate image, the first quarter operating
profit percentage was expected to be about 11.5 per cent. Including the
non-recurring costs, the operating profit percentage was estimated at 7.5 per
cent. The turnover for the entire year was expected to increase by approximately
25 per cent compared with 2006 and to reach EUR 48-50 million. The operating
profit percentage was expected to reach at least its 2006 level.
On 9 May 2007 the company published a release stating that the company had
acquired the entire share capital of Mermit Business Applications Oy, a company
producing business-critical information systems solutions and services. The
acquisition strengthened Ixonos' capability to deliver information systems
projects significantly and enhanced its capacity to deliver demanding
specification, design, architecture and integration services.
On 23 August 2007 the company published a release stating that it was setting up
a subsidiary in Germany and would open a new office for it in Bochum. The
German-based subsidiary would produce software development services for Ixonos
Telecommunications customer projects. The Bochum office would focus on
developing multimedia features for smart phones. The new office is geared to
advance the expanding close cooperation between Ixonos and the product
development teams of its clients in Germany. The Bochum unit will act in
cooperation with both Ixonos Telecommunications units in Finland and the
subsidiary set up in Kosice, Slovakia, in March.
On 4 September 2007 the company published a release stating that it had
purchased the entire share capital of Cidercone Life Cycle Solutions Oy (LCS), a
company producing business-critical mobile and Internet services. The
acquisition will strengthen Ixonos' readiness and capacity to deliver and
maintain software and information systems projects and complement Ixonos'
service provision with hosting services. Services provided by LCS cover the
entire life-cycle of software and information systems from process modelling to
customer-specific software development, hosting services and systems maintenance
and support. In its software production, LCS makes extensive use of Open Source
software components. The company's customer-specific software solutions are a
comprehensive service: the customer uses the solution on the LCS servers over
the Internet, and LCS is responsible for the maintenance of servers and software
and further software development.
NEXT REPORTS
The financial statements information release for the period 1 January - 31
December 2007 will be published on 13 February 2008.
IXONOS PLC
Board of Directors
FURTHER INFORMATION:
Ixonos Plc
President and CEO Kari Happonen
Phone: +358 424 2231, mobile +358 400 700 761, kari.happonen@ixonos.com
DISTRIBUTION:
OMX Nordic Exchange Helsinki
Main media
IXONOS GROUP
ABBREVIATED FINANCIAL STATEMENTS 1 JANUARY - 30 SEPTEMBER 2007
Accounting principles
This interim report has been prepared in accordance with the Interim Report
standard of IAS 34, following the accounting principles for the financial
reports for 31 December 2006. The interim report has been prepared in accordance
with the IFRS standards and interpretations in force on 30 September 2007. The
new IFRIC interpretations (7-10) that became effective in 2007 have not had any
effect on the consolidated financial statements. IFRS 7 (effective from 1
January 2007) does not have any effect on the data of this interim report,
because this is an abbreviated financial statement. The entered tax is based on
the estimated average income tax rate that is expected to be realized for the
entire financial period.
The consolidated financial statements include the information of Mermit Business
Applications (acquired on 20 June 2007) starting from 1 June 2007, as well as
the information of Cidercone Life-Cycle Solutions Oy (acquired on 4 September
2007) starting from 1 September 2007.
The preparation of the financial statements in accordance with the IFRS
standards compels that the Ixonos management, when the balance sheet is
prepared, utilizes such estimates and assumptions that influence the amount of
assets and liabilities as well as income and expenses of the financial period.
In addition, when preparing the financial statements, the financial reporting
principles have to be applied with consideration. The actual figures may deviate
from the estimates and assumptions.
The interim report is unaudited.
The figures in the income statement and balance sheet have been consolidated.
All group companies are included in the consolidated balance sheet. The original
Interim Report is in Finnish. The English version is a translation.
CONSOLIDATED PROFIT AND LOSS ACCOUNT, K EURO
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | Change | 1.1.- |
| | 30.9.2007 | 30.9.2006 | | 31.12.2006 |
--------------------------------------------------------------------------------
| Turnover | 41,217 | 27,042 | 52.4 % | 39,184 |
--------------------------------------------------------------------------------
| Operating costs | - 37,619 | - 24,279 | 54.9 % | - 35,243 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 3,599 | 2,763 | 30.2 % | 3,941 |
--------------------------------------------------------------------------------
| Financial income and | - 130 | - 175 | - 25.5 % | - 174 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | 3,468 | 2,589 | 30.4 % | 3,766 |
--------------------------------------------------------------------------------
| Taxes | - 936 | - 676 | 38.3 % | - 855 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE | 2,533 | 1,912 | 32.5 % | 2,911 |
| PERIOD | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET, K EURO
--------------------------------------------------------------------------------
| ASSETS | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| FIXED ASSETS | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 1,336 | 330 | 399 |
--------------------------------------------------------------------------------
| Goodwill | 22,848 | 10,674 | 11,190 |
--------------------------------------------------------------------------------
| Intangible assets | 6,258 | 633 | 450 |
--------------------------------------------------------------------------------
| Deferred tax claim | 40 | 74 | 49 |
--------------------------------------------------------------------------------
| Long-term receivables | 0 | 16 | 12 |
--------------------------------------------------------------------------------
| Other financial assets | 19 | 19 | 19 |
--------------------------------------------------------------------------------
| FIXED ASSETS TOTAL | 30,501 | 11,746 | 12,120 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Accounts receivable and other | 15,164 | 10,057 | 9,945 |
| receivables | | | |
--------------------------------------------------------------------------------
| Financial assets | 150 | 222 | 695 |
--------------------------------------------------------------------------------
| Liquid assets | 940 | 939 | 2,689 |
--------------------------------------------------------------------------------
| CURRENT ASSETS TOTAL | 16,253 | 11,218 | 13,330 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 46,754 | 22,964 | 25,449 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | 30.9.2007 | 30.9.2006 | 31.12.2006 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | 321 | 296 | 297 |
--------------------------------------------------------------------------------
| Premium fund | 4,510 | 4,095 | 4,176 |
--------------------------------------------------------------------------------
| Share issue | 2 | 0 | 0 |
--------------------------------------------------------------------------------
| Fair value and other reserves | 469 | 214 | 315 |
--------------------------------------------------------------------------------
| Reserves of invested | 3,345 | 0 | 0 |
| non-restricted equity | | | |
--------------------------------------------------------------------------------
| Retained earnings | 4,086 | 3,180 | 3,180 |
--------------------------------------------------------------------------------
| Net profit for the period | 2,533 | 1,912 | 2,911 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY TOTAL | 15,266 | 9,698 | 10,879 |
--------------------------------------------------------------------------------
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Long-term liabilities | 12,732 | 5,000 | 4,733 |
--------------------------------------------------------------------------------
| Current liabilities | 18,756 | 8,266 | 9,837 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 31,488 | 13,267 | 14,570 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | 46,754 | 22,964 | 25 449 |
| LIABILITIES TOTAL | | | |
--------------------------------------------------------------------------------
CHANGES IN EQUITY, K EURO
--------------------------------------------------------------------------------
| | Share | Pre | Shar | Fair | Reser | Retained | Total |
| | capi | mium | e | value | ves of | earnings | |
| | tal | fund | issu | and | invest | | |
| | | | e | other | ted | | |
| | | | | reser | non-rest | | |
| | | | | ves | ricted | | |
| | | | | | equity | | |
--------------------------------------------------------------------------------
| Shareholders | 292 | 3,746 | 0 | 108 | 0 | 4,496 | 8,643 |
| ' equity | | | | | | | |
| 1.1.2006 | | | | | | | |
--------------------------------------------------------------------------------
| Transfer to | | | | 106 | | | 106 |
| reserves | | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 3 | 349 | | | | | 352 |
--------------------------------------------------------------------------------
| Dividend | | | | | | - 1,316 | - 1,316 |
--------------------------------------------------------------------------------
| Profit for | | | | | | 1,912 | 1,912 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 296 | 4,095 | 0 | 214 | 0 | 5,092 | 9,698 |
| ' equity | | | | | | | |
| 30.9.2006 | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 297 | 4,176 | 0 | 315 | 0 | 6,091 | 10,879 |
| ' equity | | | | | | | |
| 1.1.2007 | | | | | | | |
--------------------------------------------------------------------------------
| Transfer to | | | | 154 | | | 154 |
| reserves | | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 25 | 334 | 2 | | 3,345 | | 3,705 |
--------------------------------------------------------------------------------
| Dividend | | | | | | - 2,004 | - 2,004 |
--------------------------------------------------------------------------------
| Profit for | | | | | | 2,533 | 2,533 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 321 | 4,510 | 2 | 469 | 3,345 | 6,619 | 15,266 |
| ' equity | | | | | | | |
| 30.9.2007 | | | | | | | |
--------------------------------------------------------------------------------
SOURCES AND APPLICATION OF FUNDS, K EURO
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | 1.1.- |
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Business operations | | | |
--------------------------------------------------------------------------------
| Net profit for the period | 2,533 | 1,912 | 2,911 |
--------------------------------------------------------------------------------
| Taxes | 936 | 676 | 855 |
--------------------------------------------------------------------------------
| Depreciation and | 600 | 324 | 416 |
| amortisation | | | |
--------------------------------------------------------------------------------
| Interest yields and charges | 130 | 175 | 174 |
--------------------------------------------------------------------------------
| Other adjustments | 105 | 74 | 176 |
--------------------------------------------------------------------------------
| Change in net working | - 2,637 | - 2,257 | - 800 |
| capital | | | |
--------------------------------------------------------------------------------
| Interest received | 36 | 35 | 61 |
--------------------------------------------------------------------------------
| Interest paid | - 192 | - 162 | - 221 |
--------------------------------------------------------------------------------
| Taxes paid | - 565 | - 490 | - 1,049 |
--------------------------------------------------------------------------------
| Cash flow from business | 946 | 287 | 2,526 |
| operations | | | |
--------------------------------------------------------------------------------
| Investments | | | |
--------------------------------------------------------------------------------
| Investments in tangible and | - 612 | - 228 | - 315 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Change in financial assets | 545 | 1,771 | 1,298 |
--------------------------------------------------------------------------------
| Transfer income from fixed | 0 | 11 | 248 |
| assets | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | - 4,136 | - 5,160 | - 5,186 |
--------------------------------------------------------------------------------
| Total cash flow from | - 4,202 | - 3,607 | - 3,954 |
| investments | | | |
--------------------------------------------------------------------------------
| Cash flow before financing | - 3,256 | - 3,320 | - 1,429 |
--------------------------------------------------------------------------------
| Financing | | | |
--------------------------------------------------------------------------------
| Dividend paid | - 2,004 | - 1,316 | - 1,316 |
--------------------------------------------------------------------------------
| Increase of long-term loans | 3,800 | 3,000 | 3,000 |
--------------------------------------------------------------------------------
| Repayment of long-term loans | - 643 | - 431 | - 658 |
--------------------------------------------------------------------------------
| Share issue | 340 | 35 | 117 |
--------------------------------------------------------------------------------
| Short-term loan receivables | 14 | 2 | 7 |
| decrease | | | |
--------------------------------------------------------------------------------
| Financing total | 1,507 | 1,291 | 1,150 |
--------------------------------------------------------------------------------
| Change in liquid assets | - 1,750 | - 2,029 | - 279 |
--------------------------------------------------------------------------------
| Liquid assets at the | 2,689 | 2,968 | 2,968 |
| beginning of the period | | | |
--------------------------------------------------------------------------------
| Liquid assets at the end of | 940 | 939 | 2,689 |
| the period | | | |
--------------------------------------------------------------------------------
CONSOLIDATED PROFIT AND LOSS ACCOUNT, QUARTERLY, K EURO
--------------------------------------------------------------------------------
| | Q3/2007 | Q2/2007 | Q1/2007 | Q4/2006 | Q3/2006 |
| | 1.7.07- | 1.4.07- | 1.1.07- | 1.10.06- | 1.7.06- |
| | 30.9.07 | 30.6.07 | 31.3.07 | 31.12.06 | 30.9.06 |
--------------------------------------------------------------------------------
| Turnover | 13,868 | 14,125 | 13,224 | 12,141 | 8,862 |
--------------------------------------------------------------------------------
| Operating costs | - 12,589 | - 12,770 | - 12,260 | - 10,964 | - 7,764 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 1,280 | 1,356 | 963 | 1,178 | 1,098 |
--------------------------------------------------------------------------------
| Financial income | - 28 | - 50 | - 52 | 0 | - 94 |
| and -expenses | | | | | |
|
--------------------------------------------------------------------------------
| Profit taxes | 1,252 | 1,305 | 911 | 1,178 | 1,004 |
--------------------------------------------------------------------------------
| Taxes | - 345 | -348 | - 242 | - 179 | - 310 |
--------------------------------------------------------------------------------
| PROFIT FOR THE | 906 | 957 | 669 | 999 | 695 |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
SEGMENT REPORTING
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | 1.1.- |
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Turnover by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 24,705 | 17,262 | 24,879 |
--------------------------------------------------------------------------------
| Systems Services | 16,793 | 9,948 | 14,604 |
--------------------------------------------------------------------------------
| Eliminations | - 281 | - 168 | -299 |
--------------------------------------------------------------------------------
| Turnover total | 41,217 | 27,042 | 39,184 |
--------------------------------------------------------------------------------
| Operating profit by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 3,771 | 2,452 | 3,583 |
--------------------------------------------------------------------------------
| Systems Services | 1,604 | 1,267 | 1,629 |
--------------------------------------------------------------------------------
| Administration | - 1,777 | - 956 | - 1,271 |
--------------------------------------------------------------------------------
| Total operating profit | 3,599 | 2,763 | 3,941 |
--------------------------------------------------------------------------------
| Operating profit of turnover % | 8,7 | 10,2 | 10.1 |
--------------------------------------------------------------------------------
| Interest and financial income | - 130 | - 175 | - 174 |
--------------------------------------------------------------------------------
| Profit before taxes | 3,468 | 2,589 | 3,766 |
--------------------------------------------------------------------------------
| Taxes | - 936 | - 676 | - 855 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 2,533 | 1,912 | 2,911 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 18,844 | 16,035 | 18,094 |
--------------------------------------------------------------------------------
| Systems Services | 23,489 | 6,086 | 6,984 |
--------------------------------------------------------------------------------
| Other | 4,422 | 844 | 371 |
--------------------------------------------------------------------------------
| Total assets | 46,754 | 22,964 | 25,449 |
--------------------------------------------------------------------------------
| Liabilities by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 8,263 | 7,980 | 8,592 |
--------------------------------------------------------------------------------
| Systems Services | 19,154 | 3,315 | 3,822 |
--------------------------------------------------------------------------------
| Other | 4,071 | 1,972 | 2,156 |
--------------------------------------------------------------------------------
| Total liabilities | 31,488 | 13,267 | 14,570 |
--------------------------------------------------------------------------------
| Depreciation by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 43 | 164 | 211 |
--------------------------------------------------------------------------------
| Systems Services | 394 | 78 | 97 |
--------------------------------------------------------------------------------
| Other | 163 | 82 | 109 |
--------------------------------------------------------------------------------
| Total depreciation | 600 | 324 | 416 |
--------------------------------------------------------------------------------
| Investments by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 231 | 81 | 130 |
--------------------------------------------------------------------------------
| Systems Services | 16,287 | 3,282 | 3,707 |
--------------------------------------------------------------------------------
| Administration | 302 | 140 | 210 |
--------------------------------------------------------------------------------
| Total investments | 16,821 | 3,503 | 4,048 |
--------------------------------------------------------------------------------
CHANGES IN FIXED ASSETS, K EURO
--------------------------------------------------------------------------------
| | Intan | Good | Real | Machi | Other | Total |
| | gible | will | estate | nery and | tangible | |
| | assets | | | equip | assets | |
| | | | | ment | | |
--------------------------------------------------------------------------------
| Carrying | 473 | 8,621 | 91 | 149 | 5 | 9,339 |
| amount | | | | | | |
| 1.1.2006 | | | | | | |
--------------------------------------------------------------------------------
| Additions | 105 | | | 112 | 7 | 223 |
--------------------------------------------------------------------------------
| Additions from | 334 | 2,053 | | 12 | | 2,399 |
| corporate | | | | | | |
| acquisitions | | | | | | |
--------------------------------------------------------------------------------
| Disposals | 0 | | | | | 0 |
--------------------------------------------------------------------------------
| Depreciation | - 279 | | | - 45 | | - 324 |
| during the | | | | | | |
| financial | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Carrying | 633 | 10,674 | 91 | 228 | 11 | 11,637 |
| amount | | | | | | |
| 30.9.2006 | | | | | | |
--------------------------------------------------------------------------------
| Carrying | 450 | 11,190 | 91 | 297 | 11 | 12,039 |
| amount | | | | | | |
| 1.1.2007 | | | | | | |
--------------------------------------------------------------------------------
| Additions | 346 | | | 274 | | 620 |
--------------------------------------------------------------------------------
| Additions from | 5,935 | 11,658 | | 789 | | 18,382 |
| corporate | | | | | | |
| acquisitions | | | | | | |
--------------------------------------------------------------------------------
| Disposals | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | - 474 | | | - 126 | | - 600 |
| during the | | | | | | |
| financial | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Carrying | 6,258 | 22,848 | 91 | 1,234 | 11 | 30,441 |
| amount | | | | | | |
| 30.9.2007 | | | | | | |
--------------------------------------------------------------------------------
ACQUIRED BUSINESS OPERATIONS
When business operations are merged, tangible assets are measured at fair value
based on the market price of equivalent assets, taking their age, wear and other
similar factors into account. Tangible assets are depreciated based on the
management's estimation of their economic lifespan, taking the Groups'
depreciation principles into account.
Intangible assets acquired through business combinations are recognized separate
from goodwill based on their fair value at the time of acquisition, provided
that the fair value of the assets can be determined reliably. The business
operations that the Group has acquired comprise primarily customerships,
customer contracts, tender prospects and covenants in restraint of competition.
The fair value of customer contracts and the accompanying customerships, tender
prospects and covenants in restraint of competition have been defined using the
MEEM model (Multi-Earning-Excess model). Other intangible asset items are
depreciated based on the management's evaluation of their economic lifespan.
In addition to the skills of the personnel, the goodwill arising from business
combinations in 2007 comprises other intangible assets that cannot be identified
in accordance with IAS 38. Such items include the potential within an acquired
company for acquiring new customers, the development prospects of new services
and the strong geographical position of the acquired business operations. These
items do not fulfil the IAS 38 criteria in any respect: they are not
identifiable, they are not based on a contract or legal right, and it is not
possible to determine their value reliably. In addition, all business
combinations create synergy benefits that primarily consist of the cross-selling
of existing services and savings in fixed costs.
The goodwill/acquisition cost of acquired business operations may change based
on the contract terms relating to the acquisition price. Part of the acquisition
price is tied to short-term (under 12 months) future events and part to
long-term (over 12 months) future events. Changes in the acquisition price,
including legal and consultancy fees relating to the merger, are recognized as
goodwill within 12 months of the acquisition. Apart from this, the allocation
calculations are final.
The consolidated turnover for the period 1 January - 30 September 2007 would
have been EUR 45.9 million and the profit for the period EUR 2.3 million if the
companies acquired during the review period had been acquired on 1 January 2007.
The above consolidated turnover includes the actual turnovers of the acquired
companies, and the consolidated financial result includes the actual profits of
the acquired companies based on the interim financial statements at the time of
the acquisition. The intangible and tangible asset items in the merger have been
measured at fair value, and the depreciation on these items has been deducted
from the profit for the financial period. Synergy benefits have not been taken
into account.
EFFECT OF ACQUIRED BUSINESS OPERATIONS ON BALANCE SHEET ASSETS AND LIABILITIES,
K EURO
--------------------------------------------------------------------------------
| Mermit Business Applications Oy | Carrying | Change | Fair value |
| (nowadays Ixonos Technology | amount | | |
| Consulting Ltd) | before | | |
| | merger | | |
--------------------------------------------------------------------------------
| Intangible fixed assets | 14 | 737 | 751 |
--------------------------------------------------------------------------------
| Tangible assets | 94 | 0 | 94 |
--------------------------------------------------------------------------------
| Receivables | 910 | 0 | 910 |
--------------------------------------------------------------------------------
| Liquid assets | 45 | 0 | 45 |
--------------------------------------------------------------------------------
| Total assets | 1,064 | 737 | 1,800 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 1,019 | 0 | 1,019 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 0 | 191 | 191 |
--------------------------------------------------------------------------------
| Total liabilities | 1,019 | 191 | 1,210 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquired net assets | 45 | 545 | 590 |
--------------------------------------------------------------------------------
| Total payments | | | 3,045 |
--------------------------------------------------------------------------------
| Goodwill | | | 2,455 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effect on cash flow: | | | |
--------------------------------------------------------------------------------
| Cash payments | | | - 107 |
--------------------------------------------------------------------------------
| Funds of acquired company | | | 45 |
--------------------------------------------------------------------------------
| Cash flow of acquisitions | | | - 62 |
--------------------------------------------------------------------------------
EUR 2,713,996 of the entire compensation was paid in Ixonos shares. The
estimated additional acquisition price payable, to be determined on the basis of
the future performance of the acquired company, is taken into account under
current liabilities.
--------------------------------------------------------------------------------
| Cidercone Life Cycle | Carrying | Change | Fair value |
| Solutions | amount | | |
| (nowadays Ixonos | before | | |
| Outsourcing Services Ltd) | merger | | |
--------------------------------------------------------------------------------
| Intangible fixed assets | 19 | 5,165 | 5,184 |
--------------------------------------------------------------------------------
| Tangible assets | 188 | 507 | 695 |
--------------------------------------------------------------------------------
| Receivables | 614 | 4 | 618 |
--------------------------------------------------------------------------------
| Liquid assets | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total assets | 821 | 5,675 | 6,497 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 555 | 521 | 1,077 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 0 | 1,343 | 1,343 |
--------------------------------------------------------------------------------
| Total liabilities | 555 | 1,864 | 2,419 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquired net assets | 266 | 3,811 | 4,077 |
--------------------------------------------------------------------------------
| Total payments | | | 13,164 |
--------------------------------------------------------------------------------
| Goodwill | | | 9,087 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effect on cash flow: | | | |
--------------------------------------------------------------------------------
| Cash payments | | | - 3,842 |
--------------------------------------------------------------------------------
| Funds of acquired company | | | 0 |
--------------------------------------------------------------------------------
| Cash flow of acquisitions | | | - 3,842 |
--------------------------------------------------------------------------------
EUR 5,635,500 of the entire compensation will be paid in Ixonos shares in an
issue of 850,000 shares during the last quarter. The estimated additional
acquisition price payable, to be determined on the basis of the future
performance of the acquired company, is taken into account under long-term
liabilities.
FINANCIAL RATIOS
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | 1.1.- |
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Earnings per share, EUR diluted | 0.32 | 0.25 | 0.38 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.33 | 0.26 | 0.39 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 2.02 | 1.29 | 1.43 |
--------------------------------------------------------------------------------
| Operating cash flow per share, | 0.12 | 0.04 | 0.36 |
| EUR diluted | | | |
--------------------------------------------------------------------------------
| Return on investment, % | 23.2 | 27.2 | 28.2 |
--------------------------------------------------------------------------------
| Return on equity, % | 25.8 | 27.8 | 29.8 |
--------------------------------------------------------------------------------
| Operating profit/turnover, % | 8.7 | 10.2 | 10.1 |
--------------------------------------------------------------------------------
| Net gearing | 48.8 | 45.5 | 18.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION | 1.1.- | 1.1.- | 1.1.- |
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Average number of personnel | 684 | 476 | 503 |
--------------------------------------------------------------------------------
| Personnel at the end of the | 812 | 528 | 579 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| COMMITMENTS | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Securities to guarantee own | | | |
| commitments | | | |
--------------------------------------------------------------------------------
| Corporate mortgages | 9,800 | 6,000 | 6,000 |
--------------------------------------------------------------------------------
| Other securities | 280 | 127 | 148 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing- and other rental | | | |
| commitments | | | |
--------------------------------------------------------------------------------
| Falling due within 1 year* | 3,339 | 578 | 1,605 |
--------------------------------------------------------------------------------
| Falling due within 1-5 years* | 8,132 | 718 | 1,640 |
--------------------------------------------------------------------------------
| Falling due after 5 years | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total | 11,471 | 1,296 | 3,245 |
--------------------------------------------------------------------------------
| *most of the increase in | | | |
| contingent liabilities relates to | | | |
| the fixed-term lease of new | | | |
| operating facilities | | | |
--------------------------------------------------------------------------------
| Nominal value of interest rate | | | |
| swap agreement | | | |
--------------------------------------------------------------------------------
| Falling due within 1 year | 1,400 | 857 | 857 |
--------------------------------------------------------------------------------
| Falling due within 1-5 years | 2,800 | 2,571 | 2,357 |
--------------------------------------------------------------------------------
| Falling due after 5 years | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total | 4,200 | 3,428 | 3,214 |
--------------------------------------------------------------------------------
| Fair value | 5 | -51 | -14 |
--------------------------------------------------------------------------------
CALCULATION OF FINANCIAL RATIOS
--------------------------------------------------------------------------------
| Return on equity (ROE) = | 100 x Net profit / Shareholders' |
| | equity(average) |
--------------------------------------------------------------------------------
| | |
--------------------------------------------------------------------------------
| Return on investment (ROI) = | 100 x (profit before taxes + interest + |
| | other financial expenses)/ |
--------------------------------------------------------------------------------
| | Balance sheet total - non-interest |
| | bearing liabilities (average) |
--------------------------------------------------------------------------------
| | |
--------------------------------------------------------------------------------
| Diluted result per share = | Net profit / Diluted number of shares |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity per share = | Shareholders' equity / Adjusted number |
| | of shares at the end of the period |
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