2013-10-29 08:30:01 CET
2013-10-29 08:30:04 CET
REGULATED INFORMATION
QPR Software - Interim report (Q1 and Q3)
THIRD QUARTER NET SALES EUR 2.0 MILLION, OPERATING PROFIT INCREASED 4%, LOWER ESTIMATE FOR FULL YEAR NET SALES
QPR SOFTWARE PLC STOCK EXCHANGE RELEASE OCTOBER 29, 2013 AT 9.30 AM
INTERIM REPORT JANUARY-SEPTEMBER 2013
THIRD QUARTER NET SALES EUR 2.0 MILLION, OPERATING PROFIT INCREASED 4%, LOWER
ESTIMATE FOR FULL YEAR NET SALES
Summary third quarter 2013
-- Net sales EUR 1,961 thousand (2012: 2,011).
-- Net sales decreased 2% due to a significant decrease in software license
net sales. Net sales from software rentals increased 37%.
-- Recurring revenues (software rentals and maintenance services) increased 2%
and were 60% of total net sales (58). The growth in recurring revenues was
slowed down by exchange rate changes in maintenance service revenues.
-- Net sales from consulting services increased 2% and were 32% of total net
sales (30).
-- Operating profit EUR 171 thousand (165), growth 4%.
-- Profit before taxes EUR 167 thousand (169).
-- Profit for the quarter EUR 142 thousand (152).
-- Earnings per share EUR 0.012 (0.012).
-- Estimate for full year net sales has been lowered. Estimate for operating
profit is unchanged.
Summary January-September 2013
-- Net sales EUR 6,377 thousand (2012: 6,628).
-- Net sales decreased 4% due to a significant decrease in software license
net sales. Net sales from software rentals increased 42%.
-- Recurring revenues (software rentals and maintenance services) increased 6%
and were 55% of total net sales (50). The growth in recurring revenues was
slowed down by exchange rate changes in maintenance service revenues.
-- Net sales from consulting services increased 5% and were 34% of total net
sales (31).
-- Operating profit EUR 361 thousand (594).
-- Cash flow from operating activities EUR 1,249 thousand (1,862).
-- Profit before taxes EUR 347 thousand (562).
-- Profit for the period EUR 295 thousand (425).
-- Earnings per share EUR 0.024 (0.035).
Revised outlook 2013
The Company estimates its net sales in 2013 to be slightly lower (3 - 7%) than
the level in previous year (2012: EUR 9.3 million). Earlier, net sales were
estimated to remain on the same level or to grow slightly compared to previous
year. Especially net sales from software rentals and enterprise architecture
consulting are expected to grow, but software license net sales to decrease.
Outlook for operating profit remains unchanged, but the Company details its
estimate. In the January-June 2013 interim report, full year operating profit
was estimated to remain lower than in previous year (2012: EUR 0.9 million),
but to improve significantly from the level in January-June 2013 (EUR 0.2
million). To detail this with additional information, the Company estimates the
full year operating profit margin to be 5 - 8% of net sales.
KEY FIGURES
EUR in thousands, Jul-Sep Jul-Sep Change Jan-Sep Jan-Se Change Jan-Dec
unless otherwise 2013 2012 , % 2013 p 2012 , % 2012
indicated
--------------------------------------------------------------------------------
Net sales 1,961 2,011 -2.5 6,377 6,628 -3.8 9,321
EBITDA 353 339 4.1 891 1,104 -19.3 1,555
% of net sales 18.0 16.9 14.0 16.7 16.7
Operating profit 171 165 3.6 361 594 -39.2 874
% of net sales 8.7 8.2 5.7 9.0 9.4
Profit before tax 167 169 -1.2 347 562 -38.3 833
Profit for the 142 152 -6.6 295 425 -30.6 662
period
% of net sales 7.2 7.6 4.6 6.4 7.1
Earnings per share, 0.012 0.012 0.0 0.024 0.035 -31.4 0.054
EUR
Equity per share, 0.217 0.229 -5.2 0.217 0.229 -5.2 0.240
EUR
Cash flow from 53 230 -77.0 1,251 1,862 -32.8 1,777
operating
activities
Cash and cash 1,248 1,797 -30.6 1,248 1,797 -30.6 1,404
equivalents
Free cash flow -132 142 -193.0 645 1,464 -55.9 1,165
Net liabilities -1,135 -1,457 -22.1 -1,135 -1,457 -22.1 -1,065
Gearing, % -42.0 -51.2 -42.0 -51.2 -35.7
Equity ratio, % 52.8 53.9 52.8 53.9 51.3
Return on equity, % 21.5 21.7 13.9 19.5 22.2
Return on 24.2 20.7 16.1 23.5 25.5
investment, %
--------------------------------------------------------------------------------
REPORTING
This report complies with requirements of IAS 34 ”Interim Financial Reporting”.
Starting from the beginning of 2013, the Company has applied certain new or
revised IFRS standards and IFRIC interpretations as described in the
Consolidated Financial Statements 2012. The implementation of these new and
revised requirements have not materially impacted the reported figures. For all
other parts, the accounting and valuation principles are the same as they were
in the 2012 financial statements. This report is unaudited.
QPR Software's business operations consist of software and consulting services
sales. The Company reports income for products and services as follows:
software license sales, software maintenance services, software rentals, and
consulting services.
QPR reports the following business segments: Direct and OEM business (software
license and rental sales, maintenance and consulting services sales to direct
customers and OEM customers) and Resellers (software license and rental sales,
maintenance and consulting services sales through resellers and the Russian
subsidiary).
REVIEW BY THE CEO
”After fast and profitable growth in 2012, the development of QPR Software's
business operations has been twofold during the current year. Our new
businesses have continued their fast growth, but we have declining net sales in
our traditional reseller business that is offering software for performance
management. The decline is especially due to lower software license sales than
in the previous year. Higher net sales from software rentals have not fully
compensated for the decline in license net sales.
Our new businesses are software and consulting businesses based on enterprise
architecture, and the process analysis business. The combined organic growth
for these businesses has been over 20% during this year, and they have grown to
represent approximately half of QPR's net sales. The unsatisfactory development
in our traditional business and in the demand for technical consulting has,
however, led to a slight 4% decline in QPR's total net sales in
January-September.
The development of our expenses has been moderate in January-September, despite
outlays in our growth businesses, which is why our profitability estimate for
2013 remains unchanged in spite of lower estimate for net sales. To detail our
estimate with additional information, we expect the full year operating profit
margin to be 5 - 8% of net sales.
Based on the rapid growth of our new businesses, we estimate that net sales
will return to a growth path already next year. Our target is to reach a 15%
annual organic and profitable growth in 2014 - 2016, on the average. The
Company's strategy has been updated during this fall, according to which we
will concentrate on four strategic targets in 2014 - 2016:
-- We will expand the international reseller channel for our new software
products (QPR EnterpriseArchitect ja QPR ProcessAnalyzer). The customer
benefits from these software and related services correspond well to the
essential needs of the European organizations, which is our main market. In
the current tight economic situation, these needs include especially the
capability to streamline business operations, the flexibility to change
structures and to manage operations in accordance with developing
strategies.
-- In Finland, we will continue to grow our enterprise architecture business,
especially by focusing on consulting our customer organizations in their
operational development. Our expanding customer base in consulting also
creates a solid foundation for increasing the sales of our QPR
EnterpriseArchitect software.
-- In our software offering, we will concentrate on the operational
development needs of our customers. We will further integrate our software
offering and increase its scalability. We will deepen and widen our service
offering especially in enterprise architecture and process analysis
consulting. We aim to differentiate ourselves from our competitors
especially through our know-how in metrics, process analysis and SAP.
-- In the traditional performance management business, we will focus our
efforts on developing replicable solutions based on the strengths of our
software products. These solutions are offered to our reseller partners to
boost the sales of our software.”
Jari Jaakkola
CEO
NET SALES
Net sales in the third quarter were EUR 1,961 thousand (2,011) and decreased 2%
from the corresponding period of the previous year. Net sales decreased due to
a clear decline in software license sales and maintenance services, which was
not fully compensated by the continued strong growth in software rental net
sales. Approximately one third of the 11% decline in net sales from software
maintenance services was due to strengthening of the euro against main export
currencies (U.S. dollar, South African rand, and Japanese yen).
Net sales in January-September were EUR 6,377 thousand (6,628) and decreased 4%
from the corresponding period of the previous year.
Net sales by product group
EUR in thousands Jul-Sep Jul-Sep Change Jan-Sep Jan-Sep Change Jan-Dec
2013 2012 , % 2013 2012 , % 2012
--------------------------------------------------------------------------------
Software 163 247 -34 702 1,241 -43 1,797
licenses
Software 748 844 -11 2,280 2,447 -7 3,223
maintenance
services
Software rentals 431 315 37 1,226 866 42 1,221
Consulting 619 605 2 2,170 2,074 5 3,080
--------------------------------------------------------------------------------
Total 1,961 2,011 -2 6,377 6,628 -4 9,321
--------------------------------------------------------------------------------
New software sales by QPR are increasingly made through software rentals rather
than perpetual license sales, which is reflected as decline in software license
net sales and increase in software rental net sales. In Finland, clear majority
of new sales are made on a rental basis. Internationally, however, the
transition is still ongoing.
In the third quarter, software license net sales decreased 34%. Net sales from
software maintenance services declined 11%, partly due to exchange rate
changes. Net sales from consulting services increased 2%. Net sales from
enterprise architecture consulting grew strongly, whereas net sales from
technical consulting decreased.
Total recurring revenue (net sales from software maintenance services and
software rentals) grew 2% in the third quarter. The growth in recurring
revenues was slowed down by exchange rate changes in maintenance service
revenues. The share of recurring revenue of total net sales was 60% (58) in the
third quarter.
Net sales by product group in January-September developed similarly as in the
third quarter.
Net sales by business segment
EUR in Jul-Sep Jul-Sep Change Jan-Sep Jan-Sep Change Jan-Dec
thousands 2013 2012 , % 2013 2012 , % 2012
--------------------------------------------------------------------------------
Direct and OEM 1,249 1,207 3 4,066 3,850 6 5,491
business
Resellers 712 804 -11 2,311 2,778 -17 3,830
--------------------------------------------------------------------------------
Total 1,961 2,011 -2 6,377 6,628 -4 9,321
--------------------------------------------------------------------------------
In the third quarter, net sales in the Direct and OEM business grew 3% from the
corresponding period last year. The growth was especially strong in net sales
from software and services aiming at developing enterprise architecture. Net
sales from technical consulting decreased.
Net sales in the Resellers business decreased 11% in the third quarter,
primarily due to decline in software license net sales and exchange rate
changes in maintenance service revenues.
Net sales in January-September developed similarly as in the third quarter.
FINANCIAL PERFORMANCE
Operating profit by business segment:
EUR in Jul-Sep Jul-Sep Change Jan-Sep Jan-Sep Change Jan-Dec
thousands 2013 2012 , % 2013 2012 , % 2012
--------------------------------------------------------------------------------
Direct and OEM 133 147 -10 321 557 -42 848
business
Resellers 115 103 12 298 324 -8 402
Unallocated -77 -85 -9 -257 -287 -10 -376
--------------------------------------------------------------------------------
Total 171 165 4 361 594 -39 874
--------------------------------------------------------------------------------
The Group's operating profit in the third quarter increased slightly from the
previous year, although net sales were slightly lower than in the previous
year.
Operating profit in the Direct and OEM business declined in the third quarter
compared to the previous year, due to continued outlays in the growth
businesses. Operating profit in the Resellers business increased, as credit
losses of EUR 15 thousand (53) included in the results were lower than in the
previous year.
The Group's expenses in the third quarter declined 4%, mainly due to lower
credit losses. Personnel expenses in the third quarter were on the previous
year's level and were 68% of total expenses (65).
Net financial expenses in the third quarter were EUR 3 thousand (net financial
income EUR 4 thousand). Net financial expenses included foreign exchange losses
of EUR 1 thousand (gains of EUR 7 thousand). Profit before taxes in the third
quarter was EUR 167 thousand (169). Income taxes in the third quarter were EUR
25 thousand (17). Profit for the quarter was EUR 142 thousand (152). Earnings
per share for the third quarter were EUR 0.012 (0.012).
In January-September, operating profit in the Direct and OEM business declined
due to increased outlays in the growth businesses. Operating profit in the
Resellers business declined due to lower net sales. Operating profit for the
Resellers business in January-September includes credit losses of EUR 36
thousand (202). The Group's profit before taxes in January-September was EUR
347 thousand (562). Income taxes were EUR 52 thousand (137). The Group's
effective tax rate is lower than in the previous year, since the Company
expects to be able to utilize an additional tax deduction on research and
development activities, valid for years 2013 - 2014 in Finland. Earnings per
share were EUR 0.024 (0.035).
FINANCE AND INVESTMENTS
Cash flow from operating activities was EUR 1,251 thousand (1,862) in
January-September and EUR 53 thousand (230) in the third quarter. Cash and cash
equivalents at the end of the third quarter were EUR 1,248 thousand (1,797).
Investments in January-September totaled EUR 609 thousand (398). Slightly more
than half of the investments were made in product development.
Interest-bearing liabilities decreased and were EUR 113 thousand (340) at the
end of the reporting period. The gearing ratio was -42% (-51). Current
liabilities include deferred revenue in total of EUR 1,428 thousand (1,536).
Return on investment was 16% (24) in January-September and 24% (21) in the
third quarter.
At the end of the reporting period, equity ratio was 53% (54) and the
consolidated shareholders' equity was EUR 2,700 thousand (2,854). Return on
equity was 14% (20) in January-September and 21% (22) in the third quarter.
The Annual General Meeting on March 14, 2013 authorized the Board of Directors
to decide on issuing a maximum of 4,000,000 new shares, to decide on conveyance
of a maximum of 550,000 own shares held by the Company, and to decide on
acquiring a maximum of 250,000 own shares. The authorizations are in force
until the next Annual General Meeting. On March 20, 2013, the Company issued a
stock exchange release on a decision to start acquiring own shares through
public trading in NASDAQ OMX Helsinki Ltd.
PRODUCT AND SERVICE DEVELOPMENT
Product development expenses in January-September were EUR 1,261 thousand
(1,217), representing 20% (18) of net sales. Product development expenses do
not include amortization of capitalized product development expenses.
In January-September, product development expenses were capitalized for a total
amount of EUR 343 thousand (296). The amortization period for capitalized
product development expenses is four years. The amortization of capitalized
product development expenses in January-September was EUR 211 thousand (207).
Product development employed 26 persons at the end of the quarter, which
corresponds to 32% of the total personnel.
In January-September, software product development activities were especially
focused on the QPR EnterpriseArchitect and QPR ProcessAnalyzer products.
By developing its consulting service products, the Company aims to grow its
local business in Finland, and to accelerate its international software sales
by offering complementary service concepts and solutions to its reseller
partners.
PERSONNEL
At the end of the quarter, the Group employed a total of 80 persons (80).
Average number of personnel in January-September was 83 (78) and personnel
expenses totaled EUR 4,221 thousand (3,865).
For incentive purposes, the Company has a bonus program that covers all
employees. Short-term remuneration of the top management consists of salary,
fringe benefits and a possible annual bonus based on net sales and operating
profit performance. The maximum annual bonus of executive management team,
including the CEO, is 40% of the annual base salary. Long-term remuneration of
the executive management team consists of a share-based incentive plan.
Information on incentive plans in the Annual Report 2012: www.qpr.com -->
“Investors” section.
SHARES AND SHAREHOLDERS
Trading of shares Jan-Sep Jan-Sep Change Jan-Dec
2013 2012 , 2012
%
--------------------------------------------------------------------------------
Shares traded, pcs 415,159 432,002 -4 501,186
Volume, EUR 393,213 375,094 5 437,890
% of shares 3.3 3.5 4.0
Average trading price, EUR 0.95 0.87 9 0.87
Treasury shares acquired during the 87,022 95,470 -9 106,482
period, pcs
--------------------------------------------------------------------------------
Shares and market capitalization Sep 30, Sep 30, Change Dec 31,
2013 2012 , 2012
%
--------------------------------------------------------------------------------
Total number of shares, pcs 12,444,863 12,444,863 - 12,444,863
Treasury shares, pcs 372,909 274,875 36 285,887
Book counter value, EUR 0.11 0.11 - 0.11
Outstanding shares, pcs 12,071,954 12,169,988 -1 12,158,976
Number of shareholders 617 593 4 597
Closing price, EUR 0.93 0.88 6 0.95
Market capitalization, EUR 11,226,917 10,709,589 5 11,551,027
Book counter value of all treasury 41,020 30,236 36 31,448
shares, EUR
Total purchase value of all treasury 343,684 251,083 37 260,906
shares, EUR
Treasury shares, % of all shares 3.0 2.2 2.3
--------------------------------------------------------------------------------
The Annual General Meeting held on March 14, 2013 approved the Board's proposal
that a per-share dividend of EUR 0.04 (0.03), a total of EUR 486 thousand
(367), is paid for the financial year 2012. The dividend was paid to
shareholders entered in the Company's shareholder register, maintained by
Euroclear Finland Oy, on the record date of March 19, 2013. The dividend
payment date was April 3, 2013.
OTHER EVENTS IN JANUARY-SEPTEMBER
In March, QPR Software and the German software company JobRouter AG announced a
new process analysis service based on QPR ProcessAnalyzer software. The
companies have agreed on cooperation, where JobRouter will use QPR
ProcessAnalyzer software in fact-based visualizing and analysis of their
customers' processes in the JobRouter workflow solution.
In April, QPR Software published an agreement with CGI, the leading IT and
business process services company, for a new process analysis service based on
QPR ProcessAnalyzer software product. With the service, CGI will be able to
show their customers the real state of their processes and help support them in
reaching operational efficiency. For QPR, the partnership gives the opportunity
to bring QPR ProcessAnalyzer to a larger clientele.
In April, after a tender competition, Hansel Oy, the central procurement unit
of the Finnish Government, elected QPR Software as one of the frame agreement
providers of management consulting services for years 2013-2017. The frame
agreement enables QPR to offer its professional services in simplified tender
competitions by government entities in their operational development and
enterprise architecture projects.
SUBSEQUENT EVENTS
On October 1, 2013, QPR Software released version 4.5 of its QPR
ProcessAnalyzer software. The latest version enables continuous process
analytics by providing automated ETL (Extract, Transform, Load)
functionalities. This supports the transition from one-off analyses to
real-time monitoring of process performance that can be used, for example, to
optimize order-to-delivery process. Through continuous automated process
analysis, companies have good visibility over their process efficiency and
operations.
On October 8, 2013, QPR Software announced the signing with the Finnish Tax
Administration of a frame agreement on management consulting services until the
end of 2017.
GOVERNANCE
The Annual General Meeting on March 14, 2013 resolved that the Board of
Directors consists of four (4) ordinary members. The AGM elected the following
members to the Board of Directors: Kirsi Eräkangas, Jyrki Kontio, Vesa-Pekka
Leskinen and Topi Piela. In its first meeting following the Annual General
Meeting, the Board of Directors elected Vesa-Pekka Leskinen as Chairman of the
Board.
The AGM elected KPMG Oy Ab, Authorized Public Accountants, as QPR Software
Plc's auditors, with Kirsi Jantunen, Authorized Public Accountant, acting as
principal auditor.
The AGM authorized the Board to decide on issuing new shares and repurchasing
the Company's own shares.
The conditions of all authorizations of the Board and other decisions made by
the Annual General Meeting are available in their entirety on the stock
exchange release published by the Company on March 14, 2013 and available on
the investors section of the Company's web site, www.qpr.com.
SHORT-TERM RISKS AND UNCERTAINTIES
Internal control and risk management in QPR Software aims to ensure that the
Company operates efficiently and effectively, distributes reliable information,
complies with regulations and operational principles, reaches its strategic
goals, reacts to changes in the market and operational environment, and ensures
the continuity of its business.
QPR has identified the following four groups of risks related to its
operations: risks related to business operations (country, customer, service
delivery, personnel, legal and financial risks as well as risks related to the
Company's resellers), risks related to information and products (QPR products,
IPR, data security), risks related to financing (foreign currency, bad debt),
and risks related to new businesses (growth of new business, product
development investments in new business). The Company has an insurance policy
for property, operational and liability risks. The Company monitors country,
customer, personnel and finance risks also in the Russian subsidiary OOO QPR
Software.
Financial risks include reasonable credit risk concerning individual business
partners, which is characteristic to any international business. QPR seeks to
limit this credit risk by continuous monitoring of standard payment terms,
receivables and credit limits. The escalated economic crisis in the euro area
has, according to management's estimate, to some extent increased the credit
risk that has earlier remained on a moderate level, and has resulted in
increased credit losses. During the current year, however, the amount of credit
losses and overdue receivables has been clearly lower than in the previous
year. In January-September, EUR 36 thousand (202) of credit losses were
recorded. The amount of trade receivables over 60 days past due was 9% (11) of
total trade receivables at the end of the quarter.
Approximately 65% of Group's trade receivables were in euro at the end of the
quarter. At the end of the quarter, the Company had not hedged its foreign
currency (non-euro) trade receivables.
No significant changes have taken place in the Company's short-term risks and
uncertainties during January-September. Risks and risk management related to
the Company's business are further described in the Annual Report 2012, pages
14-15 (www.qpr.com/investors/key-figures-and-reports.htm).
QPR SOFTWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0) 40 5026 397
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Main Media
Neither this press release nor any copy of it may be taken, transmitted or
distributed, directly or indirectly, in or into the United States of America or
its territories or possessions.
CONSOLIDATED INCOME STATEMENT
EUR in thousands, Jul-Sep Jul-Sep Change Jan-Sep Jan-Se Change Jan-Dec
unless otherwise 2013 2012 , % 2013 p 2012 , % 2012
indicated
--------------------------------------------------------------------------------
Net sales 1,961 2,011 -2 6,377 6,628 -4 9,321
Other operating 0 18 -100 32 54 -41 158
income
Materials and 72 100 -28 206 302 -32 402
services
Employee benefit 1,209 1,211 0 4,221 3,865 9 5,491
expenses
Other operating 327 379 -14 1,091 1,411 -23 2,031
expenses
--------------------------------------------------------------------------------
EBITDA 353 339 4 891 1,104 -19 1,555
Depreciation and 183 174 5 530 510 4 681
amortization
--------------------------------------------------------------------------------
Operating profit 171 165 4 361 594 -39 874
Financial income and -3 4 -175 -14 -32 -56 -41
expenses
--------------------------------------------------------------------------------
Profit before tax 167 169 -1 347 562 -38 833
Income taxes -25 -17 47 -52 -137 -62 -171
--------------------------------------------------------------------------------
Profit for the 142 152 -7 295 425 -31 662
period
Profit for the
period attributable
to:
Shareholders of the 142 140 295 459 662
parent company
Non-controlling - 12 - -34 -
interests
--------------------------------------------------------------------------------
Total 142 152 295 425 662
Earnings per share, 0.012 0.012 0 0.024 0.035 -31 0.054
EUR (basic and
diluted)
Consolidated
statement of
comprehensive
income:
Profit for the 142 152 295 425 662
period
Other items that may
be reclassified
subsequently to
profit or loss:
Exchange rate
differences from
translating foreign -5 1 -8 -84 -103
operations
Income tax related - - - - -
to other items
--------------------------------------------------------------------------------
Total comprehensive 137 153 287 341 559
income
Total comprehensive
income attributable
to:
Shareholders of the 137 141 287 375 559
parent company
Non-controlling - 12 - -34 -
interests
--------------------------------------------------------------------------------
Total 137 153 287 341 559
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
EUR in thousands Sep Sep Dec Change
30, 30, 31, ,
2013 2012 2012 %
--------------------------------------------------------------------------------
Assets
Non-current assets:
Intangible assets 1,592 1,629 1,557 2
Goodwill 513 513 513 0
Tangible assets 181 128 140 29
Other non-current assets 144 129 120 20
--------------------------------------------------------------------------------
Total non-current assets 2,430 2,399 2,330 4
Current assets:
Trade and other receivables 2,865 2,644 3,111 -8
Cash and cash equivalents 1,248 1,797 1,404 -11
--------------------------------------------------------------------------------
Total current assets 4,113 4,441 4,515 -9
Total assets 6,543 6,840 6,845 -4
================================================================================
Equity and liabilities
Equity:
Share capital 1,359 1,359 1,359 0
Other funds 21 21 21 0
Treasury shares -344 -251 -261 32
Translation differences -177 -150 -169 5
Invested non-restricted equity fund 5 5 5 0
Retained earnings 1,835 1,912 2,026 -9
--------------------------------------------------------------------------------
Equity attributable to shareholders of the 2,700 2,896 2,981 -9
parent company
Non-controlling interests - -42 - -
--------------------------------------------------------------------------------
Total equity 2,700 2,854 2,981 -9
Non-current liabilities:
Interest-bearing liabilities - 113 113 -100
Non-interest-bearing liabilities - - 71 -100
--------------------------------------------------------------------------------
Total non-current liabilities - 113 184 -100
Current liabilities:
Trade and other payables 3,730 3,647 3,452 8
Interest-bearing liabilities 113 226 226 -50
--------------------------------------------------------------------------------
Total current liabilities 3,843 3,873 3,678 4
Total liabilities 3,843 3,986 3,862 0
Total equity and liabilities 6,543 6,840 6,845 -4
================================================================================
CONSOLIDATED CASH FLOW STATEMENT
EUR in thousands Jul-Se Jul-Se Change Jan-Se Jan-Se Change Jan-De
p 2013 p 2012 , % p 2013 p 2012 , % c 2012
--------------------------------------------------------------------------------
Cash flow from operating
activities:
Profit for the period 142 152 -7 295 425 -31 662
Adjustments to the 211 117 80 540 423 28 548
profit
Working capital changes -229 31 -839 595 1,137 -48 744
Interest and other -13 -13 0 -26 -31 -16 -39
financial expenses paid
Interest and other 3 2 50 7 6 17 21
financial income
received
Income taxes paid -62 -59 5 -161 -98 64 -159
--------------------------------------------------------------------------------
Net cash from operating 53 230 -77 1,251 1,862 -33 1,777
activities
Cash flow from investing
activities:
Acquired subsidiaries - - -3 - -81
Purchases of tangible -185 -88 110 -606 -398 52 -612
and intangible assets
--------------------------------------------------------------------------------
Net cash used in -185 -88 110 -609 -398 53 -693
investing activities
Cash flow from financing
activities:
Repayments of long-term -113 -113 0 -226 -226 0 -226
borrowings
Repurchase of shares -39 -48 -19 -83 -93 -11 -103
Dividends paid - - -486 -367 32 -367
--------------------------------------------------------------------------------
Net cash used in -152 -161 -6 -795 -686 16 -696
financing activities
Net change in cash and -284 -19 1395 -153 778 -120 388
cash equivalents
Cash and cash 1,534 1,817 -16 1,404 1,020 38 1,020
equivalents at the
beginning of the period
Effects of exchange rate -2 -1 -3 -1 -4
changes on cash and
cash equivalents
--------------------------------------------------------------------------------
Cash and cash 1,248 1,797 -31 1,248 1,797 -31 1,404
equivalents at the end
of the period
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR in Share Other Transla Treasu Invested Retain Non-con Total
thousands capita funds tion ry non-rest ed trollin
l differe shares ricted earnin g
nces equity gs interes
fund ts
--------------------------------------------------------------------------------
Equity Jan 1, 1,359 21 -66 -158 5 1,820 -8 2,973
2012
Dividends -367 -367
paid
Repurchase of -93 -93
shares
Comprehensive -84 459 -34 341
income
--------------------------------------------------------------------------------
Equity Sep 1,359 21 -150 -251 5 1,912 -42 2,854
30, 2012
--------------------------------------------------------------------------------
Acquisition -89 8 -81
of the
remaining
20% share in
QPR CIS Oy
Repurchase of -10 -10
shares
Comprehensive -19 203 34 218
income
--------------------------------------------------------------------------------
Equity Dec 1,359 21 -169 -261 5 2,026 - 2,981
31, 2012
--------------------------------------------------------------------------------
Dividends -486 -486
paid
Repurchase of -83 -83
shares
Comprehensive -8 295 287
income
--------------------------------------------------------------------------------
Equity Sep 1,359 21 -177 -344 5 1,835 - 2,700
30, 2013
--------------------------------------------------------------------------------
NOTES TO INTERIM FINANCIAL STATEMENTS
ACCOUNTING PRICIPLES
This report complies with requirements of IAS 34 ”Interim Financial Reporting”.
Starting from the beginning of 2013, the Company has applied certain new or
revised IFRS standards and IFRIC interpretations as described in the
Consolidated Financial Statements 2012. The implementation of these new and
revised requirements have not materially impacted the reported figures. For all
other parts, the accounting and valuation principles are the same as they were
in the 2012 financial statements.
When preparing the consolidated financial statements, management is required to
make estimates and assumptions regarding the future and to consider the
appropriate application of accounting principles, which means that actual
results may differ from those estimated.
All amounts presented in this report are consolidated figures, unless otherwise
noted. The amounts presented in the report are rounded, so the sum of
individual figures may differ from the sum reported. This report is unaudited.
During the reporting period, the Group did not have any financial instruments
measured at fair value.
GROUP INTANGIBLE AND TANGIBLE ASSETS
EUR in thousands Jan-Sep 2013 Jan-Sep 2012 Jan-Dec 2012
--------------------------------------------------------------------------------
Increase in intangible assets:
Acquisition cost Jan 1 5,428 5,004 5,004
Increase 498 336 427
Increase in tangible assets:
Acquisition cost Jan 1 1,234 1,159 1,159
Increase 108 62 117
--------------------------------------------------------------------------------
Increase in intangible assets in January-September 2013 includes a purchase of
certain intangible assets used in the Company's business operations from a
member of the Company's Executive Management Team, for a purchase price of EUR
39 thousand. Management estimates that the purchase price corresponds to fair
value of the acquired assets to the Company.
CHANGE IN GROUP INTEREST-BEARING LIABILITIES
EUR in thousands Jan-Sep 2013 Jan-Sep 2012 Jan-Dec 2012
-----------------------------------------------------------------------------
Interest-bearing liabilities Jan 1 339 566 566
Repayments -226 -226 -226
-----------------------------------------------------------------------------
Interest-bearing liabilities Sep 30 113 340 339
-----------------------------------------------------------------------------
GROUP COMMITMENTS AND CONTINGENT LIABILITIES
EUR in thousands Sep 30, Sep 30, Dec 31, Change,
2013 2012 2012 %
--------------------------------------------------------------------------------
Business mortgage 1,337 1,337 1,337 0
Lease liabilities
Liabilities maturing in one year 251 176 397 -37
Liabilities maturing in 2-5 years 72 43 91 -21
--------------------------------------------------------------------------------
Lease liabilities total 323 219 488 -34
Total commitments and contingent 1,660 1,556 1,825 -9
liabilities
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT BY QUARTER
EUR in thousands Q3 2013 Q2 2013 Q1 2013 Q4 Q3 Q2 2012 Q1 2012
2012 2012
--------------------------------------------------------------------------------
Net sales 1,961 2,335 2,082 2,693 2,011 2,404 2,212
Other operating 0 - 32 104 18 21 15
income
Materials and 72 73 61 100 100 115 87
services
Employee benefit 1,209 1,484 1,528 1,626 1,211 1,360 1,294
expenses
Other operating 327 382 383 620 379 552 480
expenses
--------------------------------------------------------------------------------
EBITDA 353 396 142 451 339 398 366
Depreciation and 183 174 173 171 174 168 167
amortization
--------------------------------------------------------------------------------
Operating profit 171 222 -31 281 165 230 199
Financial income and
expenses -3 0 -11 -9 4 -34 -2
--------------------------------------------------------------------------------
Profit before tax 167 222 -42 271 169 196 197
Income taxes -25 -33 6 -34 -17 -72 -48
--------------------------------------------------------------------------------
Profit for the 142 189 -36 237 152 124 149
period
--------------------------------------------------------------------------------
SEGMENT INFORMATION
EUR in thousands Jul-Sep Jul-Sep Change Jan-Sep Jan-Sep Change Jan-Dec
2013 2012 , % 2013 2012 , % 2012
--------------------------------------------------------------------------------
Net sales
Direct and 1,249 1,207 3 4,066 3,850 6 5,491
OEM business
Resellers 712 804 -11 2,311 2,778 -17 3,830
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total 1,961 2,011 -2 6,377 6,628 -4 9,321
EBITDA
Direct and 232 250 -7 607 859 -29 1,251
OEM business
Resellers 198 174 14 541 532 2 680
Unallocated -77 -85 -9 -257 -287 -10 -376
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total 353 339 4 891 1,104 -19 1,555
Operating profit
Direct and 133 147 -10 321 557 -42 848
OEM business
Resellers 115 103 12 298 324 -8 402
Unallocated -77 -85 -9 -257 -287 -10 -376
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total 171 165 4 361 594 -39 874
Financial income -3 4 -175 -14 -32 -56 -41
and expenses
Income taxes -25 -17 47 -52 -137 -62 -171
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit for the 142 152 -7 295 425 -31 662
period
Other
information:
Depreciation and
amortization
Direct and 99 103 -4 286 302 -5 403
OEM business
Resellers 83 71 17 243 208 17 278
------------------------------------------------------------------------------
Total 183 174 5 530 510 4 681
--------------------------------------------------------------------------------
Names of the segments have been changed in 2013. Earlier, these segments were
called Finland operations and International operations.
GROUP KEY FIGURES
EUR in thousands, Jan-Sep or Sep Jan-Sep or Sep Jan-Dec or Dec
unless otherwise 30, 2013 30, 2012 31, 2012
indicated
--------------------------------------------------------------------------------
Net sales 6,377 6,628 9,321
Net sales growth, % -3.8 24.5 23.6
EBITDA 891 1,104 1,555
% of net sales 14.0 16.7 16.7
Operating profit 361 594 874
% of net sales 5.7 9.0 9.4
Profit before tax 347 562 833
% of net sales 5.4 8.5 8.9
Profit for the period 295 425 662
% of net sales 4.6 6.4 7.1
Return on equity, % 13.9 19.5 22.2
Return on investment ,% 16.1 23.5 25.5
Interest-bearing 113 340 339
liabilities
Cash and cash 1,248 1,797 1,404
equivalents
Free cash flow 645 1,464 1,165
Net liabilities -1,135 -1,457 -1,065
Equity 2,700 2,854 2,981
Gearing, % -42.0 -51.2 -35.7
Equity ratio, % 52.8 53.9 51.3
Total balance sheet 6,543 6,840 6,845
Investments in 607 398 518
non-current assets
% of net sales 9.5 6.0 5.6
Product development 1,261 1,217 1,619
expenses
% of net sales 19.8 18.4 17.4
Average number of 83 78 78
personnel
Personnel at the 81 73 73
beginning of period
Personnel at the end of 80 80 81
period
Earnings per share, EUR 0.024 0.035 0.054
Equity per share, EUR 0.217 0.229 0.240
--------------------------------------------------------------------------------
© 2024 Nasdaq, Inc. All Rights Reserved |