2012-10-19 08:15:00 CEST
2012-10-19 08:16:09 CEST
REGULATED INFORMATION
Stonesoft - Interim report (Q1 and Q3)
Stonesoft Oyj :STONESOFT CORPORATION INTERIM REPORT FOR JANUARY-SEPTEMBER 2012
Stonesoft Corporation Stock Exchange Release 19 October 2012 at 9:15 a.m.
STONESOFT CORPORATION INTERIM REPORT FOR JANUARY-SEPTEMBER 2012
Growth of product sales and net sales continues
In the third quarter, Stonesoft Corporation's product sales grew by 20% and net
sales by 16% compared to the corresponding period in the previous year. The
growth has continued for already two years. Operating result was MEUR +0.1. The
company still continued to invest in accelerating future growth.
The comparable figures from the corresponding period in the previous year are in
brackets and refer to the figures of continuing operations.
July-September 2012
- Net sales MEUR 9.3 (8.0), growth 16%
- Product sales MEUR 5.6 (4.7), growth 20%
- Operating result MEUR 0.1 (0.2)
- Operating result as percentage of net sales 1 (2)%
- Earnings per share -0.00 (0.00) EUR
- Operative cash flow MEUR -1.8 (-2.2)
- Liquid cash funds at the end of the fiscal period MEUR 7.2 (7.1). The
corporate has no interest-bearing debt.
January-September 2012
- Net sales MEUR 26.7 (21.1), growth 27%
- Product sales MEUR 16.0 (11.6), growth 38%
- Operating result MEUR -1.0 (-1.4)
- Operating result as percentage of net sales -4 (-7)%
- Earnings per share EUR -0.02 (-0.02)
- Operative cash flow MEUR -0.5 (-0.9)
CEO ILKKA HIIDENHEIMO
During the third quarter of the year 2012 Stonesoft's product sales grew by 20%
and net sales by 16%. The growth of net sales was lower than expected due to the
postponement of some customers' purchase decisions. This was normal variation
between quarters.
We published the Evader and Evasion Prevention System (EPS) products in July at
the Black Hat event in the United States. Evader is an evasion technique testing
tool and Evasion Prevention System is the world's first evasion prevention
product. EPS is an easily implemented and efficient solution for the detection
and protection against advanced evasion techniques. Evader is a software-based
tool that empowers organizations to test for themselves, whether advanced
evasion techniques can bypass their security systems. Even though the testing
tool is a limited version, it allows the customer to verify by himself that most
competing solutions currently in use are incapable of providing protection
against evasions. So far Evader has been downloaded by already thousands of
organizations.
Stonesoft's intrusion prevention system (IPS) received excellent results in the
NSS Labs tests and the market research company Gartner positioned Stonesoft in
the Visionaries Quadrant of its latest "Magic Quadrant for Intrusion Prevention
Systems (IPS)" report.
We have continued the cyber security discussion by bringing up facts about cyber
threats and security issues that our customers around the world encounter every
day. The threat scenario of the digital world is worrying and as a criminal
enterprise it is one of the fastest growing. In addition, the national arms race
is currently very powerful. Along the cyber threats, also the demand for
efficient, dynamic security products is constantly growing.
NET SALES AND RESULT
July-September 2012 (hereinafter 'reporting period')
The Group's net sales in the reporting period were MEUR 9.3 (8.0). Increase
compared to the corresponding period in the previous year was MEUR 1.3, or 16%.
The operating result (EBIT) was MEUR 0.1 (0.2) and the result after taxes was
MEUR -0.0 (0.2).
Product sales were MEUR 5.6 (4.7), growth 20% compared to the corresponding
quarter in the previous year.
The geographical distribution of net sales was as follows: Europe 76 (60)%,
Emerging Markets (North Africa, Middle East and Latin America) 11 (15)%, North
America 10 (22)% and APAC (Asia-Pacific) 3 (3)%.
January-September 2012 (hereinafter 'fiscal period')
The Group's net sales in the fiscal period were MEUR 26.7 (21.1). Increase
compared to the corresponding period in the previous year was MEUR 5.6, or 27%.
The operating result (EBIT) was MEUR -1.0 (-1.4) and the result after taxes was
MEUR -1.0 (-1.3).
Product sales were MEUR 16.0 (11.6), growth 38% compared to the corresponding
quarter in the previous year.
The geographical distribution of net sales was as follows: Europe 73 (67)%,
Emerging Markets (North Africa, Middle East and Latin America) 13 (14)%, North
America 11 (16)% and APAC (Asia-Pacific) 3 (3)%.
FINANCE AND INVESTMENTS
At the end of the fiscal period, the Group's total assets were MEUR 21.0 (18.5).
The equity ratio was 36 (41)% and gearing (the ratio of net debt to
shareholders' equity) was -2.39 (-2.08).
The operative cash flow during the fiscal period was MEUR -0.5 (-0.9). The Group
has no interest-bearing debt. The consolidated liquid assets at the end of the
fiscal period totalled MEUR 7.2 (7.1).
Investments in tangible and intangible assets totalled MEUR 0.8 (0.5).
DEVELOPMENT OF BUSINESS OPERATIONS
Main business events in the reporting period
In July Stonesoft released the new Evasion Prevention System (EPS) and Evader,
the world's first software-based testing tool that empowers organizations to
test their network security solutions' ability to withstand advanced evasion
techniques (AETs).
In August Stonesoft announced its IPS-1302 had received excellent results in the
NSS Labs 2012 Intrusion Prevention Systems (IPS) Test.
In August Mr. Mika Yletyinen was appointed Vice President, Europe and Global
Channel and a member of the Executive Management Team at Stonesoft Corporation.
In August Stonesoft announced the market research firm Gartner, Inc. had placed
it in the Visionaries Quadrant of its report, "Magic Quadrant for Intrusion
Prevention Systems (IPS)".
In September Stonesoft introduced the new software (version 5.4). The company's
flagship product, the Stonesoft Security Engine 5.4, now offers improved
security against Advanced Evasion Techniques (AETs).
Main business events after the fiscal period
In October, Stonesoft announced the growth of its net in the third quarter were
lower than expected because of postponed purchase decisions by some clients. The
company changed its estimate and announced it expects the net sales to grow by
25 - 32 % in 2012 and the full year operating result (EBIT) to be close to zero.
RESEARCH AND DEVELOPMENT
Stonesoft continued its strong investments in R&D. Direct investments during the
fiscal period totalled MEUR 5.5 (4.4). This represented 23 (22)% of operating
expenses.
R&D employed 97 (79) persons at the end of the fiscal period.
SHARE CAPITAL AND STOCK OPTION PROGRAMS
Stonesoft has one class of shares and all shares have equal rights. At the end
of the fiscal period, the share capital recorded in the Trade Register was
1 150 574.64 Euros. The number of shares was 63 681 732. Stonesoft or its
daughter companies do not own its shares. There were no changes in the share
capital during the fiscal period.
Stock Option Programs
The company has two valid stock option programs, Stock Option Program 2008,
under which the subscription price is EUR 0.30 and the total number of stock
options to be granted based on this program is 3 000 000 at the maximum and
Stock Option Program 2012, the total number of stock options to be granted based
of which is 4 500 000 at the maximum. The subscription price for the 2012A
option rights based on the Option Program 2012 is 1.42 euros per share. The
subscription price for the stock options 2012B and 2012C will be determined
based on the conditions of the Option Program 2012 later. The subscription
period of the shares is graded and will end for all 2008 stock options on
December 31, 2014 and for 2012 stock options in 2017-2019.
Additional information about both option programs is provided by the company's
stock exchange releases and web pages.
During the fiscal period 189 250 shares were registered on the basis of the
stock option program 2008.
DEVELOPMENT OF SHARE PRICES AND TURNOVER
In the beginning of the fiscal period on January 1, 2012, the price of Stonesoft
share was EUR 0.86 (0.58). At the end of the fiscal period on 30 September 2012
the price was EUR 1.56 (0.52). The highest price was EUR 1.78 (0.65) and the
lowest EUR 0.87 (0.41). During the fiscal period the total turnover of Stonesoft
shares amounted to MEUR 23.8 (5.2) and 17.6 (9.3) million shares, which is 27.7
(14.6)% of the total amount of the shares. Based on the share price at the end
of the fiscal period, Stonesoft's market value was MEUR 99.3 (32.9).
The company gave no notices in change of ownership during the fiscal period.
ACQUISITIONS AND CHANGES IN GROUP STRUCTURE
No acquisitions were made during the fiscal period and there were no changes in
the Group structure.
PERSONNEL
At the end of the reporting period, the Group's personnel totalled 240 (212).
AUTHORIZATIONS OF THE BOARD OF DIRECTORS
The AGM decided on 25.4.2012 to authorize the Board of Directors to decide on
the issuance of shares, options and other special rights, in one or several
issues, so that the total number of new shares may be 12,600,000 at the maximum.
Based on the authorization the Board of Directors may decide on issuance of
shares to the shareholders according to the shareholders' pre-emptive
subscription rights as well as in a directed issuance of shares or stock options
or other special rights in deviation from the shareholders' pre-emptive
subscription rights in case the deviation is justified by a weighty financial
reason for the company, such as financing of an acquisition, other arrangement
concerning the business of the company or development of its capital structure,
or incentive to the company's personnel.
The Board of Directors was authorized to decide on other terms and conditions
related to the share issues and to the issuance of option or other special
rights.
The authorization is in force until the end of the 2013 AGM.
The Board of Directors is not authorized to purchase the company's own shares.
SHORT-TERM RISKS AND BUSINESS UNCERTAINTIES
There have been no significant changes in the risk scenario with respect to
Stonesoft. The need of companies and authorities to protect themselves against
network attacks and cyber threats will increase significantly. The global
economical crisis has negative impact on the total demand. With regard to the
year 2013, the risk scenario will become more accurate at the end of the year
2012.
During the fiscal year 2012, Stonesoft's main risks and business uncertainties
relate to the realization timetable of the sales projects and possible
production disruption of our subcontractors and suppliers.
Risks and uncertainties as well as the principles of Stonesoft's risk management
are discussed more extensively at the company website and in the Annual Report
2011.
FUTURE OUTLOOK
In 2011, a development started whereby Stonesoft and other companies specialized
in network security grew strongly. Stonesoft assumes security threats to become
increasingly worrying, which will create new business opportunities for the
company.
Stonesoft's comprehensive product offering meets the rapidly developing and
changing security challenges, including the demands brought by cloud services,
virtualization and outsourcing of security.
Advanced Evasion Techniques
Stonesoft continued the research and commercial utilization of Advanced Evasion
Techniques (AETs).
Due to their own technology choices, many competitors still seem to have great
difficulties in amending their solutions to provide protection against AETs.
Leading research institutes such as Gartner have confirmed that the best
protection against new, advanced evasion techniques is provided by flexible,
software based systems. The threat posed by advanced evasion techniques does not
concern only intrusion prevention system (IPS) appliances, but also UTM (Unified
Threat Management) and next generation firewall appliances.
The above mentioned issues have opened new business opportunities for Stonesoft
and had a strong impact on the growth of the company's product sales. The
improved awareness of the threat posed by advanced evasion techniques has
brought the company new customers and made contacting target customers
significantly easier. In addition, the average size of both the customer
companies and the projects in the sales pipeline has grown compared to previous.
In July Stonesoft introduced the new Advanced Evasion Testing tool Evader as
well as the world's first Evasion Prevention System (EPS). With the testing
tool, organizations can test the level of their protection and with the evasion
prevention system they can protect themselves against advanced evasion
techniques.
Based on Stonesoft's view, these issues will continue to have a positive impact
on the company's net sales and profitability and will strengthen its
competitiveness and market position as the general understanding and knowledge
about advanced evasions techniques grow.
Earlier the company has announced that Stonesoft aims net sales to grow by at
least 30% and to achieve a positive result for the year 2012.
Based on the current outlook the company expects the net sales to grow by 25 -
32 % in 2012 and the full year operating result (EBIT) to be close to zero.
With regard to the development of the turnover and the operating result,
variation is expected between the quarters in comparison to the corresponding
quarter during the previous year as well as to the previous quarter as a
consequence of, among others, long sales cycles and the relatively big impact of
individual deals on the development of net sales and operating result.
SUMMARY OF FINANCIAL STATEMENTS AND NOTES JANUARY 1 - SEPTEMBER 30, 2012
Basis of preparation
The Interim Report has been prepared in accordance with the IAS 34 Interim
Reports standard.
The company has adopted certain new or revised IFRS standards and IFRIC
interpretations at the beginning of the financial period as described in the
Financial Statements for 2011. However, the adoption of these new and amended
standards has not yet had an effect on the reported figures in practice. In
other respects, the same accounting policies have been followed as in the
Financial Statements for 2011. Key indicator calculations remain unchanged.
The figures presented in this release are unaudited.
+--------------------------------+--------+--------+--------+--------+---------+
|Stonesoft Group | | | | | |
+--------------------------------+--------+--------+--------+--------+---------+
|Income Statement |7-9/2012|7-9/2011|1-9/2012|1-9/2011|1-12/2011|
+--------------------------------+--------+--------+--------+--------+---------+
|(1000 Euros) | | | | | |
+--------------------------------+--------+--------+--------+--------+---------+
| | | | | | |
+--------------------------------+--------+--------+--------+--------+---------+
|Net sales | 9 319| 8 050| 26 668| 21 065| 30 604|
+--------------------------------+--------+--------+--------+--------+---------+
|Other operating income | 219| 226| 719| 624| 904|
+--------------------------------+--------+--------+--------+--------+---------+
|Materials and services | -1 669| -1 353| -4 824| -3 294| -5 240|
+--------------------------------+--------+--------+--------+--------+---------+
| Personnel expenses | -4 708| -4 029| -14 265| -12 067| -16 665|
+--------------------------------+--------+--------+--------+--------+---------+
|Depreciation | -160| -116| -453| -364| -479|
+--------------------------------+--------+--------+--------+--------+---------+
|Other operating expenses | -2 949| -2 589| -8 796| -7 352| -10 262|
+--------------------------------+--------+--------+--------+--------+---------+
|Operating result | 51| 188| -951| -1 388| -1 137|
+--------------------------------+--------+--------+--------+--------+---------+
|Financial income and expenses | -7| 25| 141| 261| 358|
+--------------------------------+--------+--------+--------+--------+---------+
|Result before taxes | 43| 213| -810| -1 127| -779|
+--------------------------------+--------+--------+--------+--------+---------+
|Taxes | -82| -60| -201| -154| -138|
+--------------------------------+--------+--------+--------+--------+---------+
|Result for the accounting period| -39| 152| -1 011| -1 281| -917|
+--------------------------------+--------+--------+--------+--------+---------+
| | | | | | |
+--------------------------------+--------+--------+--------+--------+---------+
|Other comprehensive income | | | | | |
+--------------------------------+--------+--------+--------+--------+---------+
|Exchange differences on | 2| 6| 9| -10| -3|
|translating foreign operations | | | | | |
+--------------------------------+--------+--------+--------+--------+---------+
|Total other comprehensive income| 2| 6| 9| -10| -3|
+--------------------------------+--------+--------+--------+--------+---------+
|Total comprehensive income | -36| 158| -1 003| -1 291| -920|
+--------------------------------+--------+--------+--------+--------+---------+
| | | | | | |
+--------------------------------+--------+--------+--------+--------+---------+
|Basic earnings per share (EUR), | | | | | |
+--------------------------------+--------+--------+--------+--------+---------+
|continuing operations | 0,00| 0,00| -0,02| -0,02| -0,01|
+--------------------------------+--------+--------+--------+--------+---------+
|Diluted earnings per share | | | | | |
|(EUR), | | | | | |
+--------------------------------+--------+--------+--------+--------+---------+
|continuing operations | 0,00| 0,00| -0,02| -0,02| -0,01|
+--------------------------------+--------+--------+--------+--------+---------+
+-----------------------------------------------+---------+---------+----------+
|Stonesoft Group | | | |
+-----------------------------------------------+---------+---------+----------+
|Balance Sheet (1000 Euros) |30.9.2012|30.9.2011|31.12.2011|
+-----------------------------------------------+---------+---------+----------+
| | | | |
+-----------------------------------------------+---------+---------+----------+
|ASSETS | | | |
+-----------------------------------------------+---------+---------+----------+
| | | | |
+-----------------------------------------------+---------+---------+----------+
|Non-Current Assets | | | |
+-----------------------------------------------+---------+---------+----------+
|Tangible assets | 1 033| 725| 700|
+-----------------------------------------------+---------+---------+----------+
|Intangible assets | 138| 184| 162|
+-----------------------------------------------+---------+---------+----------+
|Other investments | 10| 10| 10|
+-----------------------------------------------+---------+---------+----------+
| Total | 1 181| 919| 872|
+-----------------------------------------------+---------+---------+----------+
|Current assets | | | |
+-----------------------------------------------+---------+---------+----------+
|Inventories | 1 918| 1 525| 1 508|
+-----------------------------------------------+---------+---------+----------+
|Trade and other receivables | 10 467| 8 920| 10 847|
+-----------------------------------------------+---------+---------+----------+
|Prepayments | 160| 74| 220|
+-----------------------------------------------+---------+---------+----------+
|Marketable securities | 5 697| 0| 0|
+-----------------------------------------------+---------+---------+----------+
|Cash and cash equivalents | 1 543| 7 075| 7 710|
+-----------------------------------------------+---------+---------+----------+
| Total | 19 784| 17 594| 20 285|
+-----------------------------------------------+---------+---------+----------+
|Total assets | 20 965| 18 513| 21 157|
+-----------------------------------------------+---------+---------+----------+
| | | | |
+-----------------------------------------------+---------+---------+----------+
|EQUITY AND LIABILITIES | | | |
+-----------------------------------------------+---------+---------+----------+
| | | | |
+-----------------------------------------------+---------+---------+----------+
|Equity attributable to equity holders of the | | | |
|parent company | | | |
+-----------------------------------------------+---------+---------+----------+
| Share capital | 1 151| 1 151| 1 151|
+-----------------------------------------------+---------+---------+----------+
| Issue of shares | 0| 0| 0|
+-----------------------------------------------+---------+---------+----------+
| Share premium account | 76 602| 76 602| 76 602|
+-----------------------------------------------+---------+---------+----------+
| Conversion differences | -945| -961| -954|
+-----------------------------------------------+---------+---------+----------+
| Reserve for invested unrestricted equity | 4 718| 4 679| 4 732|
|fund | | | |
+-----------------------------------------------+---------+---------+----------+
| Retained earnings | -78 496| -78 066| -77 659|
+-----------------------------------------------+---------+---------+----------+
| Total | 3 029| 3 405| 3 873|
+-----------------------------------------------+---------+---------+----------+
|Long-term liabilities | | | |
+-----------------------------------------------+---------+---------+----------+
| Prepayments *) | 4 203| 2 979| 3 157|
+-----------------------------------------------+---------+---------+----------+
| Total | 4 203| 2 979| 3 157|
+-----------------------------------------------+---------+---------+----------+
|Short-term liabilities | | | |
+-----------------------------------------------+---------+---------+----------+
| Trade and other payables | 5 133| 4 746| 5 563|
+-----------------------------------------------+---------+---------+----------+
| Prepayments *) | 8 361| 7 195| 8 381|
+-----------------------------------------------+---------+---------+----------+
| Tax liability | 155| 116| 126|
+-----------------------------------------------+---------+---------+----------+
| Provisions | 84| 74| 58|
+-----------------------------------------------+---------+---------+----------+
| Total | 13 733| 12 130| 14 127|
+-----------------------------------------------+---------+---------+----------+
|Total liabilities | 17 935| 15 109| 17 285|
+-----------------------------------------------+---------+---------+----------+
|Total equity and liabilities | 20 965| 18 513| 21 157|
+-----------------------------------------------+---------+---------+----------+
| | | | |
+-----------------------------------------------+---------+---------+----------+
|*) Prepayments contain customers advance | | | |
+-----------------------------------------------+---------+---------+----------+
|payment of support and maintenance contracts | 12 563| 10 173| 11 538|
+-----------------------------------------------+---------+---------+----------+
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Stonesoft | | | | | | | |
|Group | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Statement of | | | | | | | |
|changes in | | | | | | | |
|equity | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|(1000 Euros) | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
| | Share| | Share| | Reserve| |Total|
| |capital| Issue|premium| Conversion|for invested| Retained| |
| | | of| |differences|unrestricted| earnings| |
| | |shares| | | equity fund| | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Shareholders' | 1 151| 0| 76 603| -951| 4 751| -76 986|4 567|
|equity at | | | | | | | |
|1.1.2011 | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Comprehensive | 0| 0| 0| -10| 0| -1 281| -1|
|income | | | | | | | 291|
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Reserve for | 0| 0| 0| 0| -71| 71| 0|
|invested | | | | | | | |
|unrestricted | | | | | | | |
|equity fund | | | | | | | |
|reduction | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Transaction | 0| 0| 0| 0| 0| 0| -1|
|costs from | | | | | | | |
|equity | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Stock options | 0| 0| 0| 0| 0| 0| 0|
|exercised | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Stock option | 0| 0| 0| 0| 0| 129| 129|
|expenses | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Shareholders' | 1 151| 0| 76 602| -961| 4 679| -78 066|3 405|
|equity at | | | | | | | |
|30.9.2011 | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
| | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
| | Share| | Share| | Reserve| |Total|
| |capital| Issue|premium| Conversion|for invested| Retained| |
| | | of| |differences|unrestricted| earnings| |
| | |shares| | | equity fund| | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Shareholders' | 1 151| 0| 76 602| -954| 4 732| -77 659|3 873|
|equity at | | | | | | | |
|1.1.2012 | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Comprehensive | 0| 0| 0| 9| 0| -1 011| -1|
|income | | | | | | | 003|
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Reserve for | 0| 0| 0| 0| -70| 70| 0|
|invested | | | | | | | |
|unrestricted | | | | | | | |
|equity fund | | | | | | | |
|reduction | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Transaction | 0| 0| 0| 0| -2| 0| -2|
|costs from | | | | | | | |
|equity | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Stock options | 0| 0| 0| 0| 57| 0| 57|
|exercised | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Stock option | 0| 0| 0| 0| 0| 104| 104|
|expenses | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
|Shareholders' | 1 151| 0| 76 602| -945| 4 718| -78 496|3 029|
|equity at | | | | | | | |
|30.9.2012 | | | | | | | |
+--------------+-------+------+-------+-----------+------------+---------+-----+
+--------------------------------+--------------+--------------+---------------+
|Stonesoft Group | | | |
+--------------------------------+--------------+--------------+---------------+
|Cash flow statement (1000 Euros)|1.1.-30.9.2012|1.1.-30.9.2011|1.1.-31.12.2011|
+-+------------------------------+--------------+--------------+---------------+
| | | | | |
+-+------------------------------+--------------+--------------+---------------+
|Cash flow from operating | | | |
|activities | | | |
+--------------------------------+--------------+--------------+---------------+
| Operating Result | -951| -1 388| -1 137|
+--------------------------------+--------------+--------------+---------------+
| Adjustments | | | |
+--------------------------------+--------------+--------------+---------------+
| Non-cash transactions | 195| -6| 334|
+--------------------------------+--------------+--------------+---------------+
| Financial expenses | -65| -89| -106|
+--------------------------------+--------------+--------------+---------------+
| Financial incomes | 209| 351| 445|
+--------------------------------+--------------+--------------+---------------+
| Change in net working capital| 897| 841| 904|
+--------------------------------+--------------+--------------+---------------+
| Taxes paid | -47| -135| -218|
+--------------------------------+--------------+--------------+---------------+
|Total cash flow from operating | 239| -427| 221|
|activities | | | |
+--------------------------------+--------------+--------------+---------------+
|Cash flow from investing | | | |
|activities | | | |
+--------------------------------+--------------+--------------+---------------+
| Investments in tangible | -739| -382| -460|
|assets | | | |
+--------------------------------+--------------+--------------+---------------+
| Investments in intangible | -22| -130| -120|
|assets | | | |
+--------------------------------+--------------+--------------+---------------+
|Total cash flow investing | -761| -512| -581|
|activities | | | |
+--------------------------------+--------------+--------------+---------------+
|Cash flow from financing | | | |
|activities | | | |
+--------------------------------+--------------+--------------+---------------+
| Stock options exercised | 55| -1| 53|
+--------------------------------+--------------+--------------+---------------+
|Total cash flow from financing | 55| -1| 53|
|activities | | | |
+--------------------------------+--------------+--------------+---------------+
|Change in cash and cash | | | |
|equivalents | | | |
+--------------------------------+--------------+--------------+---------------+
| Cash and cash equivalents at | 7 710| 8 016| 8 016|
|beginning of period | | | |
+--------------------------------+--------------+--------------+---------------+
| Conversion differences | 0| -1| 1|
+--------------------------------+--------------+--------------+---------------+
| Changes in the market value | -3| 0| 0|
|of investments | | | |
+--------------------------------+--------------+--------------+---------------+
|Total cash and cash equivalents | 7 240| 7 075| 7 710|
|at end of period *) | | | |
+-+------------------------------+--------------+--------------+---------------+
| | | | | |
+-+------------------------------+--------------+--------------+---------------+
|*) Total cash and cash | | | |
|equivalents at end of the period| | | |
| | | | |
+--------------------------------+--------------+--------------+---------------+
|contains pledged securities | 512| 467| 496|
+--------------------------------+--------------+--------------+---------------+
+----------------------+--------------+--------------+---------------+
|Stonesoft Group | | | |
+----------------------+--------------+--------------+---------------+
|Geographical segments |1.1.-30.9.2012|1.1.-30.9.2011|1.1.-31.12.2011|
+----------------------+--------------+--------------+---------------+
|(1000 Euros) | | | |
+----------------------+--------------+--------------+---------------+
| | | | |
+----------------------+--------------+--------------+---------------+
|Net sales | | | |
+----------------------+--------------+--------------+---------------+
| Europe | 19 547| 14 097| 20 979|
+----------------------+--------------+--------------+---------------+
| Emerging Markets | 3 444| 2 925| 3 926|
+----------------------+--------------+--------------+---------------+
| Americas | 2 917| 3 418| 4 656|
+----------------------+--------------+--------------+---------------+
| APAC | 760| 626| 1 043|
+----------------------+--------------+--------------+---------------+
|Total net sales | 26 668| 21 065| 30 604|
+----------------------+--------------+--------------+---------------+
| | | | |
+----------------------+--------------+--------------+---------------+
|Operating profit | | | |
+----------------------+--------------+--------------+---------------+
| Europe | 760| -194| 150|
+----------------------+--------------+--------------+---------------+
| Emerging Markets | -144| -326| -352|
+----------------------+--------------+--------------+---------------+
| Americas | -1 412| -596| -650|
+----------------------+--------------+--------------+---------------+
| APAC | -154| -272| -286|
+----------------------+--------------+--------------+---------------+
|Total operating profit| -951| -1 388| -1 137|
+----------------------+--------------+--------------+---------------+
+--------------------------------+--------------+--------------+---------------+
|Stonesoft Group | | | |
+--------------------------------+--------------+--------------+---------------+
|Contingent liabilities |1.1.-30.9.2012|1.1.-30.9.2011|1.1.-31.12.2011|
+--------------------------------+--------------+--------------+---------------+
|(1000 Euros) | | | |
+--------------------------------+--------------+--------------+---------------+
| | | | |
+--------------------------------+--------------+--------------+---------------+
|Contingent off-balance sheet | | | |
+--------------------------------+--------------+--------------+---------------+
| Non-cancellable other leases | 1 530| 1 795| 1 970|
+--------------------------------+--------------+--------------+---------------+
| Contingent liabilities for | 223| 183| 223|
|the Company | | | |
+--------------------------------+--------------+--------------+---------------+
+-------------------------------+----+----+----+----+----+----+----+----+
|Stonesoft Group | | | | | | | | |
+-------------------------------+----+----+----+----+----+----+----+----+
|Quarterly development |Q3 /|Q2 /|Q1 /|Q4 /|Q3 /|Q2 /|Q1 /| |
+-------------------------------+----+----+----+----+----+----+----+----+
|(Euro Millions) |2012|2012|2012|2011|2011|2011|2011|2011|
+-------------------------------+----+----+----+----+----+----+----+----+
| | | | | | | | | |
+-------------------------------+----+----+----+----+----+----+----+----+
|Software | 0,5| 0,5| 0,6| 0,8| 0,4| 0,4| 0,4| 2,1|
+-------------------------------+----+----+----+----+----+----+----+----+
|Security appliances | 5,1| 4,9| 4,3| 5,3| 4,2| 2,9| 3,2|15,6|
+-------------------------------+----+----+----+----+----+----+----+----+
|Services | 3,7| 3,6| 3,4| 3,4| 3,3| 3,2| 3,0|12,8|
+-------------------------------+----+----+----+----+----+----+----+----+
|Other products | 0,0| 0,1| 0,0| 0,1| 0,1| 0,0|-0,1| 0,1|
+-------------------------------+----+----+----+----+----+----+----+----+
|Net sales continuing operations| 9,3| 9,1| 8,3| 9,5| 8,0| 6,5| 6,5|30,6|
+-------------------------------+----+----+----+----+----+----+----+----+
| Change-% from previous year | 16| 40| 27| 27| 43| 29| 6| 26|
+-------------------------------+----+----+----+----+----+----+----+----+
|Sales margin | 7,6| 7,4| 6,8| 7,6| 6,7| 5,6| 5,4|25,4|
+-------------------------------+----+----+----+----+----+----+----+----+
|Sales margin % | 82| 81| 82| 80| 83| 87| 83| 83|
+-------------------------------+----+----+----+----+----+----+----+----+
|Operative expenses | 7,8| 8,0| 7,6| 7,6| 6,7| 6,7| 6,4|27,3|
+-------------------------------+----+----+----+----+----+----+----+----+
|Operating profit (EBITA) | 0,1|-0,4|-0,6| 0,3| 0,2|-0,7|-0,8|-1,1|
+-------------------------------+----+----+----+----+----+----+----+----+
| % of net sales | 1| -5| -7| 3| 2| -12| -13| -4|
+-------------------------------+----+----+----+----+----+----+----+----+
|Result before taxes | 0,0|-0,4|-0,5| 0,3| 0,2|-0,7|-0,6|-0,8|
+-------------------------------+----+----+----+----+----+----+----+----+
| % of net sales | 0| -6| -6| 4| 3| -11| -10| -3|
+-------------------------------+----+----+----+----+----+----+----+----+
+--------------------------------+--------------+--------------+---------------+
|Stonesoft Group | | | |
+--------------------------------+--------------+--------------+---------------+
|Key ratios |1.1.-30.9.2012|1.1.-30.9.2011|1.1.-31.12.2011|
+--------------------------------+--------------+--------------+---------------+
|(1000 Euros) | | | |
+--------------------------------+--------------+--------------+---------------+
| | | | |
+--------------------------------+--------------+--------------+---------------+
|Net sales | 26 668| 21 065| 30 604|
+--------------------------------+--------------+--------------+---------------+
| Net sales change-% | 27| 25| 26|
+--------------------------------+--------------+--------------+---------------+
|Operating result | -951| -1 388| -1 137|
+--------------------------------+--------------+--------------+---------------+
| % of net sales | -4| -7| -4|
+--------------------------------+--------------+--------------+---------------+
|Operating result before taxes | -810| -1 127| -779|
+--------------------------------+--------------+--------------+---------------+
| % of net sales | -3| -5| -3|
+--------------------------------+--------------+--------------+---------------+
|ROE - %, annualized | -39| -43| -22|
+--------------------------------+--------------+--------------+---------------+
|ROI - %, annualized | -28| -34| -16|
+--------------------------------+--------------+--------------+---------------+
|Equity ratio-% | 36| 41| 40|
+--------------------------------+--------------+--------------+---------------+
|Net gearing | -2,39| -2,08| -1,99|
+--------------------------------+--------------+--------------+---------------+
|Total Assets | 20 965| 18 513| 21 157|
+--------------------------------+--------------+--------------+---------------+
|Capital expenditure | 761| 512| 581|
+--------------------------------+--------------+--------------+---------------+
|Capital disposals | 0| 0| 0|
+--------------------------------+--------------+--------------+---------------+
|R&D costs | 5 520| 4 405| 6 131|
+--------------------------------+--------------+--------------+---------------+
| % of net sales | 21 %| 21 %| 20|
+--------------------------------+--------------+--------------+---------------+
|Number of employees (weighted | 233| 202| 207|
|average) | | | |
+--------------------------------+--------------+--------------+---------------+
|Number of employees (end of the | 240| 212| 222|
|period) | | | |
+--------------------------------+--------------+--------------+---------------+
| | | | |
+--------------------------------+--------------+--------------+---------------+
|Share Specific Ratios | | | |
+--------------------------------+--------------+--------------+---------------+
|Earnings per share | -0,02| -0,02| -0,01|
+--------------------------------+--------------+--------------+---------------+
|Equity per share | 0,05| 0,05| 0,06|
+--------------------------------+--------------+--------------+---------------+
|Dividend | 0,00| 0,00| 0,00|
+--------------------------------+--------------+--------------+---------------+
|Dividend per share (EUR) | 0,00| 0,00| 0,00|
+--------------------------------+--------------+--------------+---------------+
|Dividend / Profit-% | 0| 0| 0|
+--------------------------------+--------------+--------------+---------------+
Calculation of
indicators
Return on equity (Profit before taxes - income
(ROE) % = taxes) x 100 /
Shareholders' equity + minority interest
(average)
Return on invested (Profit before extraordinary items+interest and other
capital (ROI)% = financial expenses) x100 /
Balance sheet total - non-interest
bearing debt (average)
(Equity + minority
Equity ratio % = interest) x 100 /
Balance sheet total -
advances received
Interest bearing net debt - cash in hand and on deposit -
Net gearing = marketable securities /
Equity + minority
interest
Earning per share Profit before taxes - minority interest
(EPS) = - income taxes /
Average number of shares adjusted for dilutive
effect of options
Equity per share = Equity /
Number of shares at end of
period
FORWARD-LOOKING STATEMENTS
This report contains statements concerning, among other things, Stonesoft's
financial condition and the results of operations that are forward-looking in
nature. Such statements are not historical facts, but rather represent
Stonesoft's future expectations. The company believes that the expectations
reflected in these forward-looking statements are based on reasonable
assumptions. However, these forward-looking statements involve inherent risks
and uncertainties, which could cause actual results or outcomes to differ
materially from those anticipated in the statements. These risks and
uncertainties may include, among other things, (1) changes in our market
position or in the Firewall/VPN and Intrusion detection and protection market in
general; (2) the effects of competition; (3) the success, financial condition,
and performance of our collaboration partners, suppliers and customers;(4) our
ability to source quality components without interruption and at acceptable
prices;(5) our ability to recruit, retain and develop appropriately skilled
employees;(6) exchange rate fluctuations, including, in particular, fluctuations
between the Euro, which is our reporting currency, and the US dollar;(7) other
factors related to sale of products, economic situation, business, competition
or legislation affecting the business of Stonesoft or the industry in general
and (8) our ability to control the variety of factors affecting our ability to
reach our targets and give accurate forecasts.
PRESS CONFERENCE
A press conference for analysts and investors will be held on 19 October, 2012
at 10.30 am at the Stonesoft headquarters, street address Itälahdenkatu 22 A,
00210 Helsinki.
For additional information, please contact:
Ilkka Hiidenheimo, CEO, Stonesoft Corporation
Tel. +358 9 476 711
E-mail: ilkka.hiidenheimo@stonesoft.com
Mikael Nyberg, CFO, Stonesoft Corporation
Tel. +358 9 476 711
E-mail: mikael.nyberg@stonesoft.com
Stonesoft Corporation
Ilkka Hiidenheimo
CEO
This stock exchange release and the presentation material related to this report
are also available at the Stonesoft web site www.stonesoft.com.
Distribution:
NASDAQ OMX Helsinki Ltd
www.stonesoft.com
[HUG#1650587]
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