2011-02-02 08:00:00 CET
2011-02-02 08:00:06 CET
REGULATED INFORMATION
Tectia Oyj - Financial Statement Release
TECTIA FINANCIAL STATEMENT RELEASE, JANUARY 1 - DECEMBER 31, 2010
Helsinki, Finland, 2011-02-02 08:00 CET (GLOBE NEWSWIRE) -- TECTIA CORPORATION
FINANCIAL STATEMENT RELEASE FEBRUARY 2, 2011 AT 9:00 A.M
TECTIA FINANCIAL STATEMENT RELEASE, JANUARY 1 - DECEMBER 31, 2010
SUMMARY
October-December
- Net sales totaled EUR 2.5 million, down by -14.3 % percent year on year (EUR
2.9 million in 10-12/2010).
- Operating loss amounted to EUR -0.5 million (an operating profit of EUR 0.4
million in 10-12/2010), loss EUR -0.5 million (EUR 0.4 million).
- Earnings per share EUR -0.02 (EUR 0.01).
January-December
- Net sales totaled EUR 9.1 million, up by 3.3 % percent year on year (EUR 8.8
million in 1-9/2009).
- Operating loss amounted to EUR -0.7 million (an operating loss of EUR -1.5
million in 1-12/2009), loss EUR -0.5 million (EUR -1.2 million).
- Earnings per share EUR -0.02 (EUR -0.04).
The company's financial position remained healthy, with equity ratio 69.1 %
(71.4%) and liquid assets at the end of the period EUR 4.0 million (EUR 6.4
million). Tectia's Board of Directors will propose to the Annual General
Meeting 3rd of March 2011 that no dividend or return of capital be distributed.
KEY FIGURES
------------------------------------------------------------------------------
10-12/ 10-12/ 1-12/ 1-12/ Change %
2010 2009 2010 2009
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Net sales (MEUR) 2.5 2.9 9.1 8.8 3.3
------------------------------------------------------------------------------
Operating profit/loss (MEUR) -0.5 0.4 -0.7 -1.5 51.7
------------------------------------------------------------------------------
% of net sales -18.3 13.9 -7.9 -17.1
------------------------------------------------------------------------------
Profit/loss before taxes (MEUR) -0.5 0.4 -0.5 -1.2 61.5
------------------------------------------------------------------------------
Profit/loss (MEUR) -0.5 0.4 -0.5 -1.2 60.0
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Return on equity, % -12.8 -12.4
------------------------------------------------------------------------------
Return on investment, % -10.5 -10.8
------------------------------------------------------------------------------
Liquid assets 4.0 6.4 -37.6
------------------------------------------------------------------------------
Gearing (%) -121.0 -144.2
------------------------------------------------------------------------------
Equity ratio (%) 69.1 71.4
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Earnings per share (EUR) -0.02 0.01 -0.02 -0.04 61.5
------------------------------------------------------------------------------
Shareholders' equity per share (EUR) 0.10 0.15 0.10 0.15 -33.9
------------------------------------------------------------------------------
CEO's BUSINESS REVIEW
Tectia Corporation is the market maker in real-time information security for
modern, networked organizations. Tectia's objective is to move into sales
channel model and invest into high-quality technical sales, customer service
and partner network support.
In fourth quarter 2010 net sales amounted to EUR 2.5 million with decrease of
-14.3 percent compared to the previous year. Operative loss was EUR -0.5
million. The company's financial position remained healthy with an equity ratio
of 69.1 percent and EUR 4.0 million in liquid assets.
Net sales for the reporting period of 2010 amounted to EUR 9.1 million with an
increase of 3.3 percent compared to the previous year.The operating loss was
EUR -0.7 compared to the previous year 2009 loss of EUR -1.5 million including
one-time costs totaling EUR -1.0 million. Loss for the reporting period
amounted to EUR -0.5 million. Loss for the corresponding period was EUR -1.2
million.
In the fourth quarter, Tectia executed a lead generation program, including
awareness campaigns for Tectia SAMS (Secure, Automate, Manage, Share) market
message in the key markets.
The global channel program continued with the aim to increase channel sales.
The largest deals in 2010 were closed by Tectia channel partners. As well the
sales pipeline for new products, i.e. Tectia Mobile ID and Tectia Guardian
fourth quarter sales grew significantly compared to previous quarters in 2010.
Tectia announced the release of a new version of Tectia Guardian, which
provides the fastest track to enforcing security controls, meeting security
standards, and ensuring business continuity. Tectia Guardian is part of Tectia
Manage Solutions, which allow organizations to ensure that their critical
business infrastructure is secure, reliable, and compliant with relevant
industry regulations and standards.
After closing the first deal for Tectia Guardian in the United Arab Emirates,
Tectia announced the appointment of M.E. Solutions, an innovative provider of
business technology services, to deploy Tectia information security solutions
in Dubai, United Arab Emirates. The agreement authorizes M.E. Solutions to
distribute Tectia data security and managed file transfer software as part of
its professional technology offering.
In December 2010, Tectia announced the acquisition of mobile authentication
business from Siltanet Corporation. Operators, financial institutions,
governmental organizations and enterprises are facing an increased need for
strong mobile user authentication.
The acquired business involves mobile authentication and signing solution that
provides enterprises and software and cloud service providers the fastest
enablement of strong authentication of users combining enterprise class
scalability with ease of deployment and use.
Jari Mielonen
CEO
REPORTING
This financial statement release follows IFRS accounting standards and
assessments. This report is prepared according to IFRS standards and
interpretations which are valid 31st December 2010. This financial statement
release is prepared according to IAS 34. The figures are non-audited. This
interim report also complies with the year 2010 renewed IFRS 3 and IAS 27
standards, which do not have any substantial effect on company's financial
reporting.
FUTURE OUTLOOK
Tectia's key strategic objectives are to turn into sales and marketing
oriented, channel sales based software house and become the fastest track for
our customers to securing, automating, managing and sharing data-in-transit in
cross platform environments. The company objectives are to turn the company
into channel sales model, and invest into high-quality channel marketing,
pre-sales, customer service and partner network support. At the same time the
company will focus its own R&D into strengthening the managed security offering
and mobile authentication technologies. In order to increase focus and speed of
strategy execution, Tectia will establish two separate business units. The
business units are Managed Security business and Mobile Authentication
business. The Managed Security business is serving global F1000 companies with
their managed security challenges in cross-platform environment by being the
first and only managed security vendor for SSH related technologies. The sales
strategy is based on channel sales model through System Integrators, Value
Added Resellers and regionally certified channel partners with the support of
Tectia's regional sales and support centers of excellence located in the
Americas, EMEA and APAC. The Mobile Authentication business is based on
acquired Mobile authentication technologies and it is serving global
enterprises, SMEs and operators with the fastest and most reliable, enterprise
level mobile authentication software. The sales strategy is based on channel
sales model with System Integrators, Value Added Resellers, OEM vendors and
regional distributors. The sales focus in the first phase will be in Europe.
The extraordinary cost related to the change in company structure are estimated
to be EUR -0.5 millionand the estimated annual savings target is EUR 1.5
million.
Outside the established new business units the company is evaluating its patent
portfolio and strategic alternatives to create shareholder value from it. Based
on a preliminary evaluation by the company some of the patents and patent
applications may be essential (necessary for implementing the standard) for
upcoming IP-based mobile phone systems, such as 3G IMS and LTE/LTE Advanced (so
called 3.9G and 4G), at least some of their terminals, and internet call
systems (VoIP). The company hasn't received any royalty or other revenue from
these patents or patent applications so far, and they have not been booked as
assets in the balance sheet.
For the fiscal year 2011, Tectia estimates its net sales to grow from 2010 and
expects the net result to be positive.
NET SALES
Consolidated net sales for October-December totaled EUR 2.5 million (EUR 2.9
million), down by -14.3 %, year on year.
Consolidated net sales for January-December totaled EUR 9.1 million (EUR 8.8
million), up by 3.3 %, year on year.
The Americas, the Europe, Middle East and Africa market area and the Asia
Pacific region accounted for 65.9 percent (62.8 percent), 23.6 percent (28.1
percent) and 10.5 percent (9.1 percent) of reported net sales, respectively.
TECTIA NET SALES
----------------------------------------------------------
EUR Million 10-12/ 10-12/ 1-12/ 1-12/ Change %
2010 2009 2010 2009
----------------------------------------------------------
----------------------------------------------------------
BY SEGMENT
----------------------------------------------------------
AMERICAS 1.5 1.4 6.0 5.5 8.4
----------------------------------------------------------
APAC 0.4 0.2 1.0 0.8 19.8
----------------------------------------------------------
EMEA 0.6 1.3 2.1 2.5 -14.1
----------------------------------------------------------
Tectia Group Total 2.5 2.9 9.1 8.8 3.3
----------------------------------------------------------
----------------------------------------------------------
BY OPERATION
----------------------------------------------------------
License sales 1.2 1.7 3.7 4.1 -8.5
----------------------------------------------------------
Maintenance 1.3 1.2 5.4 4.7 13.4
----------------------------------------------------------
Total 2.5 2.9 9.1 8.8 3.3
----------------------------------------------------------
The majority of Tectia's invoicing is U.S. dollar based. During the report
period, the U.S. dollar's average exchange rate to euro strengthened
approximately 5.0 percent compared to the same period a year ago. With
comparable exchange rates 2010 net sales increase would have been 0.6 percent
compared 2009 corresponding period.
RESULTS AND EXPENSES
Operating loss for October-December amounted to EUR -0.5 million (an operating
profit of EUR 0.4 million), with net loss totaling EUR -0.5 million (a profit
of EUR 0.4 million).
Operating loss for January-December amounted to EUR -0.7 million (an operating
loss of EUR -1.5 million), with net loss totaling EUR -0.5 million (a loss of
EUR -1.2 million). There are no relevant transactions after reporting period
that would affect on company's results and profitability.
Sales, marketing and customer support expenses for the October-December
reporting period amounted EUR -1.6 million (EUR -1.0 million), while research
and development expenses totaled EUR -0.7 million (EUR -1.0 million) and
administrative expenses EUR -0.6 million (EUR -0.6 million).
Sales, marketing and customer support expenses for the January-December
reporting period amounted EUR -5.1 million (EUR -4.3 million), while research
and development expenses totaled EUR -2.3 million (EUR -3.8 million) and
administrative expenses EUR -2.2 million (EUR -2.3 million).
Organizational change took in place starting from 2010 where customer support
-unit from research and development was transferred to management of sales and
marketing as part of Customer Market Operations (CMO) organization. Previous
corresponding figures are according to old organizational structure. Costs of
transferred functions are EUR -0.2 million for fourth quarter 2010 and EUR -1.1
million for reporting period 2010. Effect on corresponding figures are EUR -0.2
million for fourth quarter 2009, and EUR -1.0 million for total 2009.
BALANCE SHEET AND FINANCIAL POSITION
The financial position of Tectia remained at a healthy level during the
reporting period, despite the capital returned to shareholders in March 2010.
The consolidated balance sheet total on December 31, 2010 stood at EUR 8.3
million (EUR 9.4 million), of which liquid assets accounted for EUR 4.0 million
(EUR 6.4 million), or 48.6 percent of the balance sheet total. On December 31,
2010, gearing, or the ratio of net liabilities to shareholders' equity, was
-121.0 percent (-144.2) and the equity ratio stood at 69.1 percent (71.4).
The reported gross capital expenditure for the period totalled EUR 0.1 million
(EUR 0.1 million). The reported financial income consisted mainly of interest
on fixed-term deposits and exchange rate gains. Financial income and expenses
totalled EUR 0.3 million (EUR 0.3 million).
During January-December, Tectia reported a negative cash flow of EUR -0.9
million (EUR -2.4 million) from business operations, and investments showed a
negative cash flow of EUR -0.1 million (EUR 12.0 million). Cash flow from
financing totaled EUR -1.4 million (EUR -7.7 million), mainly consisting of
capital returned to shareholders and investments to short-term financial
assets. Total cash flow from operations, investments and financing was negative
EUR -2.3 million (EUR 1.9 million) during the period.
RESEARCH AND DEVELOPMENT
Research and development expenses for October-December totaled EUR -0.7 million
(EUR -1.0 million), the equivalent of 26.1 percent of net sales (40.3 percent).
Research and development expenses for January-December totaled EUR -2.3 million
(EUR -3.8 million), the equivalent of 25.4 percent of net sales (43.0 percent).
During the financial period Tectia did not capitalize any research and
development expenses.
HUMAN RESOURCES AND ORGANIZATION
At the end of December, the Group had 70 employees on its payroll, up by 6
persons from the previous year, an increase of 9 percent.
At the end of the period, 43 percent in sales and marketing, 39 percent of the
employees worked in R&D, and 19 percent in corporate administration.
SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE
The reported trading volume of Tectia Corporation shares totaled 4 512 942
(valued at EUR 4 111 060). The highest quotation was EUR 1.15 and the lowest
EUR 0.76 The trade-weighted average share price for the period was EUR 0.91 and
the share closed at EUR 0.83(December 30, 2010).
Company's principal owner Tatu Ylönen holdings directly and through his
company, Tatu Ylönen Oy, holds now 45.5 percent of the company's shares,
Assetman Oy holds 13.1 percent and SSH Management Investment Corp 4.7 percent.
More information about the shareholding can be obtained from the company´s web
site.
SSH Management Investment Corp is part of the Tectia Group consolidated
financial statements due to shareholder agreement.
During reporting period was established a subsidiary Tectia Limited in Hong
Kong owned by 100% by Tectia Corporation. No other changes occurred in Tectia
group structure.
SHARE CAPITAL AND BOARD AUTHORIZATIONS
The company's registered share capital on December 31, 2010 was EUR 916,446.24
consisting of 30,548,208 shares. During the reporting period option rights were
exercised in I/1999 and II/2003 option programs. According to the I/1999 option
program, 100 shares were subscribed for using class C option certificates, 100
shares using class D option certificates, 500 shares using class E option
certificates, 650 shares using class F certificates and 350 shares using class
H option certificates. According to the II/2003 option program, 500 shares were
subscribed for using class C option certificates and 500 shares using class D
option certificates. Exercise of options rights increased share capital 81.00
EUR.
The Annual General Meeting approved the Board of Directors' proposal to
authorize the Board of Directors to decide upon the issuing of in total
5,500,000 shares, in one or more tranches, as share issues against payment or
by giving stock options or other special rights entitling to shares, as defined
in Chapter 10 Section 1 of the Finnish Companies Act, either in accordance with
the shareholders' pre-emptive right to share subscription or deviating from
this right. The authorization will be valid until the next Annual General
Meeting, but will expire on June 30th 2011 at the latest. During the reporting
period Board of Directors exercised this authorization December 14th, 2010
while deciding to pay part of Siltanet Corp Mobile ID business transaction with
directed share issue.
The Annual General Meeting approved the Board of Directors' proposal to
authorize the Board of Directors to decide upon the acquiring of a maximum of
2,000,000 of the company's own shares, in one or more tranches, with assets
belonging to the company's free equity. This amount corresponds approximately
to 6.69 per cent of all shares of the company. The compensation to be paid for
the acquired shares shall be determined on the date of acquisition on the basis
of the trading rate determined for the company's share in a public trading
arranged by NASDAQ OMX Helsinki Ltd. Furthermore, the Annual General Meeting
decided to authorize the Board of Directors to decide upon a distress
concerning a maximum of 1,500,000 own shares, in one or more tranches. The
amount corresponds approximately to 5.02 per cent of all shares of the company.
The authorization to acquire the shares and the authorization concerning the
distress shall be valid at most for eighteen (18) months after the decision of
the Annual General Meeting.
The Annual General Meeting decided upon the distribution of assets from the
invested non-restricted equity fund to the shareholders in such a way that
assets would be distributed 0.05 euro per share. The amount distributed was in
total 1,494,922.45 euro. The return of equity was paid to the shareholders who
on the record date on March 8th 2010 were registered in the shareholders'
register of the company held by Euroclear Finland Oy. The payment date was
March 15th 2010.
Furthermore, the Annual General Meeting decided to lower the subscription price
of the shares, which can be subscribed on the basis of the option plans
released by the company between years 2000-2002, with an amount corresponding
to the distribution of assets, i.e. 0.05 euro per each option right. The
subscription price of the shares shall, however, always have at least the same
value as the par value.
DIVIDEND AND OTHER DISTRIBUTION OF ASSETS
Tectia's Board of Directors will propose to the Annual General Meeting 3rd of
March 2011 that no dividend or return of capital be distributed. It is proposed
that the loss of the financial year shall be entered to the shareholders equity
in the profit/loss account.
RISKS AND UNCERTAINTIES
Risk management is a part of Tectia's internal administration. It aims to
ensure that major risks affecting the company's business and operating
environment are identified and monitored. Tectia operates in fast chancing
security software markets, thus the changes in IT-business and particularly in
security software business development affects directly to company's business
risk. Since the United States is the main market area, any risks including
currency risks associated with that country are considered to be significant.
Other major risks are related to product technology, competitor activities and
profitability.
Sales operations are supported by the company's own legal unit, which, through
continuous management of contracts, seeks to reduce the risks related to the
company's business operations. Tectia protects its copyrights and trademarks
through sales agreements. The company has also an active patent policy to
protect its technology. Tectia encourages its employees to make and protect
inventions. Tectia actively uses its own products to protect the information
system architecture. Encryption and strong authentication protect the company's
confidential data communications.
Tectia has a process in place whereby any network security risks found in the
company's products are promptly reported to senior management. Corrections are
made immediately and updates are supplied to customers without delay. The
company's critical information systems are secured. Tectia actively uses its
own products to protect the information system architecture. Encryption and
strong authentication protect the company's confidential data communications.
Tectia provides no financing for its customers other than by granting normal
payment terms. The company has a strong balance sheet and no significant
long-term liabilities. Asset managers invest the company's cash reserves in
accordance with a policy approved by the Board of Directors. Significant of the
Tectia's invoicing is taking place in US dollars. Company does not have hedges
related to currency fluctuations at 31st of December.
During financial period there have not been any significant changes in
company's business risks or uncertainties.
EVENTS AFTER THE BALANCE SHEET DATE
The Tectia management is not aware of any transactions that happened after the
reporting period that would have impacted the presented financial statement.
RELATED PARTY TRANSACTIONS
During reporting period there have not been any significant changes in
company's business risks or uncertainties. More details to risks and
uncertainties will be disclosed in 2010 financial statement and annual report.
SILTANET BUSINESS ACQUISITION
Tectia acquired 31st of December 2010 mobile authentication business from
Siltanet Corporation and technology rights related to this business. The
business transaction strengthens Tectia's position in mobile security business.
Siltanet Corp worked as technology partner for Tectia and Tectia prospects
technology ownership for company future and strategy as significant factor.
Mobile authentication is fast growing business as strong two-factor
authentication is growing rapidly. Tectia Mobile ID product has also business
prospect in replacing physical tokens due to the facts that it is
cost-effective and easy enterprise deployment and use.
Purchase price was covered by directed share issue and cash. With Cash bought
technology patent owned Siltanet Corp related to mobile authentication
technology. Directed share issue consists 647 059 shares. In addition Siltanet
Oy transferred a TEKES capital loan liability to Tectia Corp capital 112 468
euros. Siltanet Corp also has a right to an additional purchase price of
100,000 new Tectia Corporation shares provided that certain business growth
conditions have been realized in the future.
TABLES
COMPREHENSIVE INCOME STATEMENT
----------------------------------------------------------------------------
EUR million
----------------------------------------------------------------------------
10-12/ 10-12/ 1-12/ 1-12/
2010 2009 2010 2009
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net sales 2.5 2.9 9.1 8.8
----------------------------------------------------------------------------
Cost of goods sold -0.2 0.0 -0.2 -0.1
----------------------------------------------------------------------------
Gross profit 2.4 2.9 8.9 8.7
----------------------------------------------------------------------------
Other operating income 0.0 0.0 0.0 0.1
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Sales. marketing and customer support costs -1.6 -1.0 -5.1 -4.3
----------------------------------------------------------------------------
Product development expenses -0.7 -1.0 -2.3 -3.8
----------------------------------------------------------------------------
Administrative expenses -0.6 -0.6 -2.2 -2.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating profit/loss -0.5 0.4 -0.7 -1.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Financial income and expenses 0.0 0.0 0.3 0.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Profit/loss before taxes -0.5 0.4 -0.5 -1.2
----------------------------------------------------------------------------
Taxes 0.0 0.0 0.0 0.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net profit/loss for the financial period -0.5 0.4 -0.5 -1.2
----------------------------------------------------------------------------
Minority Interest -0.0 -0.0
----------------------------------------------------------------------------
Other profit and loss account items:
----------------------------------------------------------------------------
Foreign subsidiary translation differences -0.1 0.0 -0.2 -0.1
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total comprehensive income -0.6 0.4 -0.7 -1.3
----------------------------------------------------------------------------
Net profit/loss attributable to:
-------------------------------------------------------
Minority Interest -0.0 -0.0
-------------------------------------------------------
Owners of the Company -0.5 0.4 -0.5 -1.2
-------------------------------------------------------
EARNINGS PER SHARE
---------------------------------------------------------------
10-12/ 10-12/ 1-12/ 1-12/
2010 2009 2010 2009
---------------------------------------------------------------
---------------------------------------------------------------
Earnings per share (EUR) -0.02 -0.04 -0.02 -0.04
---------------------------------------------------------------
Earnings per share. diluted (EUR) -0.02 -0.04 -0.02 -0.04
---------------------------------------------------------------
BALANCE SHEET
---------------------------------------------------------------
EUR million
---------------------------------------------------------------
31/12/2010 31/12/2009
---------------------------------------------------------------
ASSETS
---------------------------------------------------------------
---------------------------------------------------------------
Non-current assets
---------------------------------------------------------------
Tangible assets 0.2 0.2
---------------------------------------------------------------
Intangible assets 0.8 0.0
---------------------------------------------------------------
Investments 0.0 0.0
---------------------------------------------------------------
Total non-current assets 1.0 0.3
---------------------------------------------------------------
---------------------------------------------------------------
Current assets
---------------------------------------------------------------
Trade and other receivables 3.3 2.7
---------------------------------------------------------------
Short-term financial assets 2.5 2.5
---------------------------------------------------------------
Cash and cash equivalents 1.5 3.9
---------------------------------------------------------------
Total current assets 7.2 9.1
---------------------------------------------------------------
---------------------------------------------------------------
Total assets 8.3 9.4
---------------------------------------------------------------
---------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
---------------------------------------------------------------
---------------------------------------------------------------
Shareholders' equity 3.2 4.4
---------------------------------------------------------------
Non-current liabilities
---------------------------------------------------------------
Provisions 0.1 0.1
---------------------------------------------------------------
Non-current interest-bearing 0.0 0.0
liabilities
---------------------------------------------------------------
Total long-term liabilities 0.1 0.0
---------------------------------------------------------------
---------------------------------------------------------------
Current liabilities 5.0 4.8
---------------------------------------------------------------
---------------------------------------------------------------
Total equity and liabilities 8.3 9.4
---------------------------------------------------------------
---------------------------------------------------------------
CASH FLOW STATEMENT
------------------------------------------------------------
EUR million 1-12/2010 1-12/2009
------------------------------------------------------------
------------------------------------------------------------
Cash flow from business operations -0.9 -2.4
------------------------------------------------------------
Cash flow from investments -0.1 12.0
------------------------------------------------------------
Cash flow from financing -1.4 -7.7
------------------------------------------------------------
------------------------------------------------------------
Increase(+) / decrease (--) in cash -2.3 1.9
------------------------------------------------------------
------------------------------------------------------------
Cash at period start 3.9 2.0
------------------------------------------------------------
Effect of exchange rate 0.0 0.0
------------------------------------------------------------
Cash at period end 1.6 3.9
------------------------------------------------------------
STATEMENT ON CHANGES
IN SHAREHOLDERS'
EQUITY
--------------------------------------------------------------------------------
EUR million Share Fair Other Trans- Fund Minori Unrestricte Total
Capi-t value Equity lation for ty d equity
al reser- Fund diff own share funds and
ves shares retained
earnings
--------------------------------------------------------------------------------
Shareholders 0.9 0.1 -0.9 14.4 14.5
' equity
Jan. 1. 2009
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change 0.0 0.0 -0.1 -7.8 -7.8
--------------------------------------------------------------------------------
Net profit -1.2 -1.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Management 0.0 0.0 0.0 -1.1 0.0 -1.1
Incentive
plan
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders 0.9 0.1 -1.0 -1.1 5.5 4.4
' equity
Dec. 31.
2009
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change 0.0 0.0 -0.3 -0.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Return of 0.1 -1.5 -1.4
Capital
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transactions 0.1 0.5 0.6
related to
Siltanet
Corp
Purchase
--------------------------------------------------------------------------------
Net profit -0.5 -0.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Management 0,0 0.3 0.3
Incentive
plan
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders 0.9 0.1 0.1 -1.3 -1.0 0.3 4.0 3.2
' equity
Dec. 31.
2010
--------------------------------------------------------------------------------
NET SALES BY SEGMENT
--------------------------------------------------
EUR million 10-12/ 10-12/ 1-12/ 1-12/
2010 2009 2010 2009
--------------------------------------------------
--------------------------------------------------
AMER 1.5 1.4 6.0 5.5
--------------------------------------------------
APAC 0.4 0.2 1.0 0.8
--------------------------------------------------
EMEA 0.6 1.3 2.1 2.5
--------------------------------------------------
Tectia Group total 2.5 2.9 9.1 8.8
--------------------------------------------------
OPERATING PROFIT/LOSS BY SEGMENT
--------------------------------------------------------------
EUR million 10-12/ 10-12/ 1-12/ 1-12/
2010 2009 2010 2009
--------------------------------------------------------------
--------------------------------------------------------------
AMER 0.6 0.9 3.4 2.5
--------------------------------------------------------------
APAC 0.1 0.0 0.4 0.5
--------------------------------------------------------------
EMEA 0.3 0.9 0.5 1.1
--------------------------------------------------------------
Common Group -1.5 -1.4 -5.1 -5.5
expenses*
--------------------------------------------------------------
Tectia Group total -0.5 0.4 -0.7 -1.5
--------------------------------------------------------------
* Common Group expenses include Group administration expenses (e.g. management
and finance) and product management and R&D expenses for corporate
headquarters.
MERGERS & 2010
ACQUISITIONS
----------------------------------
----------------------------------
Purchase price (EUR):
----------------------------------
----------------------------------
Cash 50 000
----------------------------------
Directed share issue 550 000
----------------------------------
Capital loan liability 112 468
----------------------------------
Additional purchase price 85 000
----------------------------------
Total 797 469
----------------------------------
----------------------------------
Acquired Assets:
----------------------------------
----------------------------------
Technology rights 50 000
----------------------------------
Customers 298 720
----------------------------------
Technology 448 748
----------------------------------
Total 797 469
----------------------------------
----------------------------------
Total Purchase Price 797 469
----------------------------------
Goodwill 0
----------------------------------
During reporting period 2010 no merger & acquisitions were exercised.
KEY FIGURES AND RATIOS
--------------------------------------------------------------------------------
EUR million 1-12/2010 1-12/2009
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 9.1 8.8
--------------------------------------------------------------------------------
Operating profit/loss -0.7 -1.5
--------------------------------------------------------------------------------
Operating profit/loss. as % of net sales -7.9 -16.9
--------------------------------------------------------------------------------
Profit/loss before extraordinary items and taxes -0.5 -0.3
--------------------------------------------------------------------------------
Profit/loss before extraordinary items and taxes. as % of -5.0 -2.9
net sales
--------------------------------------------------------------------------------
Profit/loss before taxes -0.5 -1.2
--------------------------------------------------------------------------------
Profit/loss before taxes. as -5.0 -13.3
% of net sales
--------------------------------------------------------------------------------
Return on equity (%) -12.8 -12.4
--------------------------------------------------------------------------------
Return on investment (%) -10.5 -10.8
--------------------------------------------------------------------------------
Interest-bearing net liabilities -4.0 -6.4
--------------------------------------------------------------------------------
Equity ratio (%) 69.1 71.4
--------------------------------------------------------------------------------
Gearing (%) -121.0 -144.2
--------------------------------------------------------------------------------
Gross capital expenditure 0.1 0.1
--------------------------------------------------------------------------------
% of net sales 1.2 1.3
--------------------------------------------------------------------------------
R&D expenses 2.3 3.8
--------------------------------------------------------------------------------
% of net sales 25.2 43.0
--------------------------------------------------------------------------------
Personnel. period average 68 66
--------------------------------------------------------------------------------
Personnel. period end 70 64
--------------------------------------------------------------------------------
Calculation for key figures and ratios are presented in 2009 financial
statement and annual report. There have not been changes in calculation rules
after that.
PER-SHARE DATA
---------------------------------------------------------------------
EUR 1-12/2010 1-12/2009
---------------------------------------------------------------------
---------------------------------------------------------------------
Earnings per share. Undiluted -0.02 -0.04
---------------------------------------------------------------------
Earnings per share. diluted -0.02 -0.04
---------------------------------------------------------------------
Equity per share 0.10 0.15
---------------------------------------------------------------------
No. of shares at period end (thousand) 29 901* 29 898
---------------------------------------------------------------------
Share performance
---------------------------------------------------------------------
Average price 0.91 0.79
---------------------------------------------------------------------
Low 0.76 0.65
---------------------------------------------------------------------
High 1.15 1.24
---------------------------------------------------------------------
Share price. period end 0.83 0.77
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Market capitalization. period end (EUR million) 24.8 23.0
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Volume of shares traded (million) 4.5 5.1
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Volume of shares traded. As 15.1 17.0
% of total
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Value of shares traded (EUR million) 4.1 4.0
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* This figure does not include directed share issue to Siltanet Corp as the
shares became under exercise not until January 2011.
CONTINGENT LIABILITIES
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EUR million 31.12.2010 31.12.2009
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Rent security deposits 0.1 0.1
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Leasing commitments outside
the balance sheet
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Maturing within 1 year 0.5 0.6
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Maturing between 1 and 5 years 1.3 1.1
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DISCLAIMER
The content in this report is provided by Tectia Corporation ("Tectia") and its
third party content providers for your personal information only. And does not
constitute an offer or invitation to purchase any securities. Nor does it
provide any form of advice (investment. tax. legal) amounting to investment
advice. Or make any recommendations regarding particular investments or
products. Tectia does not provide investment advice or recommendations to buy
or sell its shares or the shares of others. If you are interested in investing
in Tectia, please contact your financial adviser for further details and
information. Past performance of Tectia shares is not indicative of future
results. EXCEPT AS PROVIDED BY APPLICABLE COMPULSORY LAW TECTIA EXPRESSLY
DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED. AS TO THE AVAILABILITY,
ACCURACY OR RELIABILITY OF ANY OF THE CONTENT PROVIDED, OR AS TO THE FITNESS OF
THE INFORMATION FOR ANY PURPOSE.
Tectia Corporation will release its next interim report and financial
statements for January 1-March 31, 2011 in April 20th.
Helsinki, February 2nd 2011
TECTIA CORPORATION
Board of Directors
Jari Mielonen
CEO
For further information, please contact:
Jari Mielonen, CEO. tel. +358 20 500 7000
Mikko Karvinen, CFO. tel. +358 20 500 7000
Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.tectia.com
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