Tecnotree Oyj - Financial Statement Release

Tecnotree Corporation Financial Report 1 January – 31 December 2011 (unaudited)

Financial Statement Report
1 February at 8.30 am EET

Record order book

  -- Net sales for the whole year were EUR 62.3 (60.7) million and the adjusted
     operating result was EUR -1.7 (-2.5) million. The operating result was EUR
     -11.1 (-8.1) million and the result for the period EUR -15.6 (-11.0)
     million
  -- The order book at the end of the year stood at a record level of EUR 40.4
     million (31 December 2010: EUR 14.3 million). The high order book was due
     to the USD 30.5 million sale in Latin America announced by the company on
     20 December 2011.
  -- Tecnotree has succeeded in taking advantage of the synergies in sales and
     products created through the company acquisition in India through its new
     strategy. This has taken longer than expected.



KEY FIGURES                          10-12/2011  10-12/201  1-12/2010  1-12/2010
                                                         1                      
Net sales, MEUR                            16.1       14.0       62.3       60.7
Adjusted operating result, MEUR*           -2.0       -3.2       -1.7       -2.5
Operating result, MEUR                     -3.5       -4.9      -11.1       -8.1
Result before taxes, MEUR                  -3.3       -5.2       -9.9       -9.4
Result for the period, MEUR                -7.5       -5.3      -15.6      -11.0
Earnings per share, basic, EUR            -0.10      -0.07      -0.21      -0.15
Order book, MEUR                                                 40.4       14.3
Cash flow after investments, MEUR          -3.5        0.5      -18.1      -10.6
Change in cash and cash                    -1.0        2.5       -9.8       -9.8
 equivalents, MEUR                                                              
Cash and cash equivalents, MEUR                                   6.7       16.7
Equity ratio %                                                   50.7       66.4
Net gearing %                                                    43.1        3.3
Personnel at end of period                                        926        858



* Adjusted operating result = operating result before R & D capitalisation,
amortization of this and one-time costs. Details of these are given in the
section “Result analysis”. Unless otherwise stated, all figures presented below
are for the review period 1-12/2011 and the figures for comparison are for the
corresponding period 1-12/2010. 

President and CEO Kaj Hagros:

Net sales in 2011 totalled EUR 62.3 million, slightly better than in the
previous year (EUR 60.7 million). Fourth quarter net sales increased 15% in
2011 from the corresponding period in the previous year. At the end of the year
the company received the biggest order in its history. Thanks to this and other
orders received, the order book at the end of the year virtually tripled from
the previous year's figure to EUR 40.4 million. 

After a weak first quarter in 2011, the second and third quarters were better
periods and the adjusted operating result was positive. In terms of on-going
operations the fourth quarter would also have been positive, but an impairment
of EUR 2.8 million on receivables from a customer owned by the government of
Libya turned the adjusted operating result for the quarter into a loss of EUR
2.0 million. 

Sales in all geographical regions were at a similar level to the figures for
2010. During 2011 the company has renewed its strategy and its organization,
aiming at growth in its business operations, higher profitability and higher
quality customer service in 2012. Deliveries of information systems for
managing the business of teleoperators, in line with the new strategy, will tie
up more working capital. For this reason the company intends to strengthen its
capital with additional financing. A major part of our sales is in the emerging
markets which are not exposed to the same kind finance crisis as the European
and the North American economies. 

Prospects in 2012

Tecnotree estimates that net sales and the operating result in 2012 will be
better than in 2011. The adjusted operating result is estimated to be positive.
Variations in the quarterly figures will be considerable. The cash flow after
investments is also expected to improve compared to 2011. The adjusted
operating result is the operating result before R&D capitalization,
amortization of this and one-time costs 

Proposal concerning the result

The Board of Directors proposes to the Annual General Meeting to be held on 28
March 2012 that no dividend be paid for the financial year ended 31 December
2011, and that the parent company's loss for the financial year, EUR
-13,872,371.72, be covered by non-restricted equity reserves. 

Financial information

Tecnotree is holding a conference for analysts and the media to announce its
results for the 2011 fiscal year at 10.00 am on 1 February 2012 in the
Bulsa-Freda conference room at the Scandic Hotel Simonkenttä, Simonkatu 9,
Helsinki. The interim review will be presented by CEO Kaj Hagros and the
conference will be held in Finnish. The material to be presented at the press
conference will be available at www.tecnotree.com 

TECNOTREE CORPORATION

Board of Directors

FURTHER INFORMATION
Kaj Hagros, President and CEO, tel. +358 40 849 1749
Tuomas Wegelius, CFO, tel. +358 400 433 228

DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main media
www.tecnotree.com

About Tecnotree
Tecnotree is a global provider of a broad range of telecom IT solutions focused
on charging, billing, customer care, messaging and content services. Tecnotree
empowers communication service providers to create and monetize a broad
marketplace of digital services, and augment value across the customer
lifecycle. Acknowledged for agility and commitment, Tecnotree has more than 900
employees serving over 120 operators globally. Tecnotree is listed on the main
list of NASDAQ OMX Helsinki Ltd. with the trading code TEM1V. For more
information on Tecnotree visit www.tecnotree.com

Attachments:

Tecnotree 1-12 2011 Financial Report presentation.pdf

Tecnotree 1-12 2011 Financial Report.pdf