2010-04-15 08:09:03 CEST
2010-04-15 08:09:45 CEST
REGULATED INFORMATION
BasWare - Interim report (Q1 and Q3)
Basware Interim Report January 1 - March 31, 2010 (IFRS)
BASWARE INTERIM REPORT JANUARY 1 - MARCH 31, 2010 (IFRS)
SUMMARY
January-March
* Net sales EUR 23 132 thousand (EUR 21 717 thousand) - growth 6.5 percent
* Operating profit EUR 2 136 thousand (EUR 1 592 thousand) - growth 34.2
percent
* Operating profit 9.2 percent of net sales (7.3%)
* International operations accounted for 53.8 percent of net sales (52.5%) -
growth 9.2 percent
* Automation Services increased by 77.8 percent
* Cash flows from operating activities were EUR 11 115 thousand (EUR 8 423
thousand)
* Earnings per share EUR 0.14 (0.06) - growth 144.4 percent
Basware expects its net sales for 2010 to develop positively on the level of
2009. Operating profit (EBIT) for 2010 is expected to be from 10 to 15 percent
of net sales.
The interim report is unaudited.
GROUP KEY FIGURES
1-3/ 1-3/ Change, 1-12/
EUR thousand 2010 2009 % 2009
-----------------------------------------------------------------------
Net sales 23 132 21 717 6.5% 92 654
EBITDA 3 373 2 596 29.9% 16 280
Operating profit before IFRS3 amortization 2 692 2 033 32.4% 13 788
Operating profit 2 136 1 592 34.2% 11 824
% of net sales 9.2% 7.3% 12.8 %
Profit before tax 2 142 1 484 44.3% 11 590
Profit for the period 1 582 666 137.6% 9 074
Return on equity, % 11.2% 5.5% 17.2 %
Return on investment, % 14.1% 11.3% 18.8 %
Liquid assets *) 16 351 11 460 42.7% 12 210
Gearing, % -19.4% -0.7% -5.3%
Equity ratio, % 59.1% 55.6% 64.8%
Earnings per share, EUR 0.14 0.06 146.9% 0.80
Earnings per share (diluted), EUR 0.14 0.06 144.4% 0.80
Equity per share, EUR 4.92 4.18 17.9% 4.93
*) Includes cash, cash equivalents and financial assets at fair value through
profit or loss
Basware's business operations consist of License Sales, Maintenance,
Professional Services and Automation Services. The core of Basware's license
sales consists of the Basware Enterprise Purchase to Pay product suite and the
Basware Financial Management (FIMA) suite. The Group's reported market areas are
Finland, Scandinavia, Europe and Other areas.
Steady growth continued
Basware's CEO Ilkka Sihvo: "The first quarter of the year was a success despite
the continued challenging market conditions. Our net sales increased by 6.5% and
our profitability by as much as 34.2%. Automation Services and License Sales in
particular performed well. The performance in the first quarter provides a good
starting point for the rest of the year."
Automation Services have been greeted favorably by the customers, and the
business continued its strong growth in terms of both net sales and transaction
volumes. Automation Services net sales increased by 77.8%. Basware Automation
Services, launched at the beginning of 2009, have been complemented, and the
services include comprehensive solutions for senders and recipients of
e-invoices, as well as a supplier activation service. In the future, the growth
of Automation Services will also be supported by a mid-market SaaS solution to
be launched in North America during the second quarter and thereafter in select
markets.
Basware's license sales increased by 12.7%. Regionally, the fastest growth was
seen in the North American business, with net sales increasing by more than 50%
in local currencies.
REPORTING
Basware's reporting segment is based upon geography as follows: Finland,
Scandinavia, Europe and Other. Following the acquisition of former reseller TAG
Services on July 1, 2009, Basware has assets in Australia. Taking into account
the nature and extent of the business operations in North America and Australia,
these areas were merged into the Other segment as of Q3/2009. The Finland
segment includes the Finnish, Russian, Asia-Pacific (excluding Australia)
business operations and corporate services.
In addition, the company reports revenue from products and services as follows:
License Sales, Professional Services, Maintenance and Automation Services.
Automation Services include SaaS revenue and transaction-based services, which
include digitalization of paper invoices and exchange of e-invoices and purchase
transactions.
The company also reports an estimate of revenue to be recognized for current
Automation Services agreements in the next twelve months. Automation Services
agreements are typically in force for a fixed period of several years or until
further notice.
NET SALES
The geographical division of net sales by the location of assets:
+--------------------------------------------------------------+
|Net sales (EUR thousand) 1-3/2010 1-3/2009 Change, % 1-12/2009|
+--------------------------------------------------------------+
|Finland 12 191 11 331 7.6 50 486|
| |
|Scandinavia 5 253 5 317 -1.2 22 236|
| |
|Europe 5 069 4 666 8.6 18 717|
| |
|Other 2 373 1 195 98.6 9 201|
| |
|Sales between segments -1 754 -791 121.6 -7 985|
+--------------------------------------------------------------+
|Group total 23 132 21 717 6.5 92 654|
+--------------------------------------------------------------+
The geographical division of net sales by the location of customers:
+--------------------------------------------------------------+
|Net sales (EUR thousand) 1-3/2010 1-3/2009 Change, % 1-12/2009|
+--------------------------------------------------------------+
|Finland 10 695 10 323 3.6 42 449|
| |
|Scandinavia 4 995 5 209 -4.1 21 719|
| |
|Europe 4 915 4 681 5.0 18 065|
| |
|Other 2 527 1 503 68.2 10 421|
+--------------------------------------------------------------+
|Group total 23 132 21 717 6.5 92 654|
+--------------------------------------------------------------+
Basware Group's net sales for the period increased by 6.5 percent to EUR 23 132
thousand (EUR 21 717 thousand).
The Company's license sales decreased by 0.6 percent during the period,
amounting to 20.1 percent (21.5%) of net sales. License sales of Basware
products increased by 12.7 percent and sales of third-party scanning software
decreased considerably while sales of outsourced scanning services increased.
Maintenance revenue increased by 13.7 percent and accounted for 35.1 percent
(32.9%) of net sales. Professional Services revenue decreased by 7.4 percent and
accounted for 34.0 percent (39.1%) of net sales.
During the period, Automation Services increased by 77.8 percent and accounted
for 10.8 percent (6.5%) of net sales. The estimated revenue to be recognized for
current Automation Services agreements in the next twelve months is EUR 10.5
million. The transaction volume processed by the Automation Services business
was 2.9 million during the reporting period.
The international share of Basware's net sales was 53.8 percent (52.5%) in the
period. International operations grew by 9.2 percent.
FINANCIAL PERFORMANCE
Basware's operating profit for the period increased by 34.2 percent to EUR
2 136 thousand (EUR 1 592 thousand). Operating profit represented 9.2 percent
(7.3%) of net sales.
The geographical division of operating profit by the location of assets:
+-----------------------------------------------------------------------+
|Operating profit (EUR thousand) 1-3/2010 1-3/2009 Change, % 1-12/2009|
+-----------------------------------------------------------------------+
|Finland 1 092 849 28.7 7 714|
| |
|Scandinavia 762 666 14.4 3 169|
| |
|Europe 509 231 120.1 1 566|
| |
|Other 179 137 30.2 741|
| |
|Operating profit between segments -406 -292 39.2 -1 365|
+-----------------------------------------------------------------------+
|Group total 2 136 1 592 34.2 11 824|
+-----------------------------------------------------------------------+
The Company's fixed costs were EUR 18 520 thousand (EUR 17 599 thousand) in the
period, up 5.2 percent on the corresponding period the previous year. Personnel
costs made up 74.0 percent (73.3%) or EUR 13 703 thousand (EUR 12 896 thousand)
of the fixed costs.
Research and development costs totaled EUR 3 748 thousand (EUR 3 694 thousand),
of which EUR 324 thousand (EUR 493 thousand) or 8.7 percent (14.4%) was
capitalized during the period. The costs increased by 1.5 percent compared with
the same reporting period in 2009. Amortization of capitalized research and
development costs totaled EUR 422 thousand (EUR 368 thousand).
The Company's finance income and finance expenses were EUR 5 thousand (EUR -108
thousand). Profit before tax was EUR 2 142 thousand (EUR 1 484 thousand) and
profit for the period was EUR 1 582 thousand (EUR 666 thousand). Undiluted
earnings per share were EUR 0.14 (EUR 0.06).
FINANCE AND INVESTMENTS
Basware Group's total assets on the balance sheet at the end of the period were
EUR 95 606 thousand (EUR 86 512 thousand). The Company's cash and liquid assets
were EUR 16 351 thousand (EUR 11 460 thousand), of which cash and cash
equivalents were EUR 16 318 thousand (EUR 11 429 thousand) and financial assets
at fair value through profit or loss were EUR 34 thousand (EUR 31 thousand).
Equity ratio was 59.1 percent (55.6%) and gearing was -19.4 percent (-0.7%). The
Company's interest-bearing liabilities totaled EUR 5 388 thousand (EUR 11 114
thousand), of which current liabilities accounted for EUR 3 551 thousand (EUR
5 563 thousand). Return on investment was 14.1 percent (11.3%) and return on
equity 11.2 percent (5.5%).
Cash flows from operating activities were EUR 11 115 thousand (EUR 8 423
thousand). Cash flows from investments were EUR -1 438 thousand (EUR -1 339
thousand).
The Company's capital expenditure, resulting from regular additional and
replacement investments required for growth, was EUR 263 thousand (EUR 126
thousand) in the period. Gross investments which include - in addition to those
mentioned above - capitalized research and development costs totaled EUR 845
thousand (EUR 619 thousand).
Amortization of intangible assets totaled EUR 1 093 thousand (EUR 873 thousand).
There are no indications of impairments of assets.
Basware increased its shareholding in Basware Einvoices Oy to 100 percent on
January 30, 2009, by acquiring 12.55 percent of the company's shares and control
from the company's management. The purchase price paid on the date of the
transaction was approximately EUR 720 thousand, and in February 2010 EUR 293 was
paid as an additional purchase price based on the business volume for 2009.
Basware AS purchased the Norwegian invoice automation solution business of
Itella Information AS. The purchase price was NOK 6.38 million (approximately
EUR 0.72 million) and it was paid in cash on the day the acquisition was
completed, April 1, 2009. In addition, in February 2010 Basware paid an
additional purchase price of NOK 4 434 thousand (approximately EUR 559 thousand)
determined on the basis of the volume of the purchased operations' service sales
in 2009.
RESEARCH, DEVELOPMENT AND NEW PRODUCTS
Basware's research and development costs were EUR 3 748 thousand (EUR 3 694
thousand) in the period, corresponding to 16.2 percent (17.0%) of net sales.
Research and development costs increased by 1.5 percent compared with the same
period last year.
A total of 192 (176) people worked in Producs at the end of March 2010. The
Products unit is expanding at the fastest rate in India.
PERSONNEL
Basware employed 797 (731) people on average during the first quarter and 808
(730) at the end of the period. The number of personnel increased by 78 persons
and by 10.7 percent compared with the same period the previous year. The
increase in the number of personnel is due to acquisitions and an increase in
the number of employees in the Indian unit.
The share of personnel working in foreign units has increased compared with the
previous year. At the end of the period, 49.6 percent (45.5%) of Basware
personnel worked outside of Finland and 50.4 percent (54.5 %) in Finland. 15.5
percent of the personnel work in sales and marketing, 51.9 percent in consulting
and services, 23.9 percent in Products, and 8.7 percent in administration.
The average age of employees is 36.1 (35.8) years. Of the employees, 32.1
percent have a Master's degree and 37.3 percent have a Bachelor's degree. Women
account for 30.4 percent of employees, men for 69.6 percent.
Geographical distribution of personnel:
+--------------------------------------------------------------+
|Personnel |
|(employed, on average) 1-3/2010 1-3/ 2008 Change, % 1-12/ 2009|
+--------------------------------------------------------------+
|Finland 501 439 14.0 454|
| |
|Scandinavia 127 138 -8.4 135|
| |
|Europe 122 122 -0.0 119|
| |
|Other 48 31 55.4 39|
+--------------------------------------------------------------+
|Group total 797 731 9,1 747|
+--------------------------------------------------------------+
BUSINESS OPERATIONS
Finland
The Finland segment includes operations in Finland, Russia, Asia (excluding
Australia) and the Financial Management business. Net sales for the period
increased by 7.6 percent to EUR 12 191 thousand (EUR 11 331 thousand).
Net sales of the Finnish and Russian business operations increased by 4.2
percent to EUR 10 853 thousand (EUR 10 413 thousand).
Basware entered into a partnership agreement with the IT company TerraLink
whereby TerraLink will become a reseller of Basware software. Founded in 1989,
Canada-based TerraLink is among the leading providers of systems integration and
document management solutions in Russia.
There are currently 8 resellers in all in the area and the number of personnel
averaged 501 (439) during the period.
Scandinavia
Basware's Nordic organization consists of a centrally directed Scandinavian
(Sweden, Denmark and Norway) unit.
Net sales in Scandinavia decreased by 1.2 percent to EUR 5 253 thousand (EUR
5 317 thousand). The profitability of the operations has improved by 14.4
percent and operating profit was EUR 762 thousand (EUR 666 thousand).
Business operations are mainly handled by the own organization and there were
127 (138) employees on average in the area.
Europe
Basware's European business operations consist of the units in Germany, France,
the Netherlands and the United Kingdom. Additionally, the reseller network
covers the eastern part of Central Europe.
Net sales in the Europe segment increased by 8.6 percent to EUR 5 069 thousand
(EUR 4 666 thousand). The profitability of the operations improved by 120.1
percent and operating profit was EUR 509 thousand
(EUR 231 thousand).
There are 35 resellers in Europe, and Basware personnel averaged 122 (122)
during the period.
Other
Business operations in North America and Australia are reported in this segment.
Following the acquisition of former reseller TAG Services on July 1, 2009,
Basware has assets in Australia. Taking into account the nature and extent of
the business operations in North America and Australia, these areas were merged
into the Other segment as of Q3/2009.
Net sales of the area increased by 98.6 percent to EUR 2 373 thousand (EUR
1 195 thousand). The profitability of the operations has improved by 30.2
percent and operating profit was EUR 179 thousand (EUR 137 thousand).
At the end of the period, there were 9 resellers in the Other segment. On
average, there were 48 (31) employees in the area.
OTHER EVENTS OF THE PERIOD
Strategy
Basware has updated its strategy for 2010-2012. The Basware Responsive Strategy
framework allows the company to act with agility and sensitivity based on the
company's situation, market trends and other changes. The Responsive Strategy
framework includes follow-up and analysis of internal and external trends as
well as the company's vision, mission and operating principles. Basware's
operating principles comprise of the company's values, corporate governance and
responsibility.
The company aims at maintaining its position as a leading global supplier of
invoice automation and procurement solutions. In order to support the sales of
invoice automation solutions, Basware will launch a mid-market SaaS (Software as
a Service) solution. The solution will be launched in North America during the
second quarter and thereafter in select markets.
Basware also aims to become a leading company in e-invoicing worldwide.
E-invoicing and supporting Connectivity Services are targeted to connect
suppliers and buyers also outside of Basware's existing software customer base,
leading into a higher potential.
The company's long-term target is to grow annually more than 50% in Automation
Services. SaaS, Connectivity Services and e-invoicing are scalable models and
offer an increasing profit potential in the long run. The company's long-term
target is to grow annually more than 10% in License Sales, Maintenance and
Professional Services. The target for operating profit margin is 10%-20%.
SHARE AND SHAREHOLDERS
Basware Corporation's share capital totaled EUR 3 443 887.20 at the end of the
period and the number of shares was 11 479 624.
A separate stock exchange release has been issued on the Board authorizations
and other resolutions of the Annual General Meeting of Shareholders on February
18, 2010.
Share price and trade
During the reporting period, the highest price of the share was EUR 18.58 (EUR
7.75), the lowest was EUR 15.00 (EUR 6.60) and the closing price was EUR 16.86
(EUR 7.50). The average price of the share was EUR 16.99 (EUR 7.37) during the
period.
A total of 400 317 (431 908) shares were traded during the period which is the
equivalent of 3.5 percent (3.8%) of the average number of shares. Market
capitalization with the period's closing price on March 31, 2010 was
EUR 192 024 003 (EUR 85 340 355).
Shareholders
Basware had 16 416 (17 016) shareholders on March 31, 2010 including
nominee-registered holdings (7). Nominee-registered holdings accounted for 8.7
(7.9) percent of the total number of shares.
The company holds 90 300 Basware Corporation shares, corresponding to
approximately 0.79% of all shares in the company.
During the period, Basware announced two notifications of change in ownership
when the total number of shares held by Nordea Rahastoyhtiö Suomi Oy fell below
5% of Basware Corporation's share capital on February 2, 2010, and when Nordea
Rahastoyhtiö Suomi Oy's was above 5% of Basware Corporation's shares on March
12, 2010.
GOVERNANCE
The Annual General Meeting of Shareholders on February 18, 2010, confirmed the
number of Board members as six. The Annual General Meeting resolved to agree on
the proposal and elected Matti Copeland, Sakari Perttunen, Pentti Heikkinen,
Eeva Sipilä, Ilkka Toivola and Hannu Vaajoensuu members of the Board of
Directors. In its first meeting held after the Annual General Meeting, the Board
of Directors elected Hannu Vaajoensuu as chairman and Sakari Perttunen as vice
chairman of the Board.
The Annual General Meeting further resolved to elect Ernst & Young Oy,
Authorized Public Accountants as the auditor, with APA Heikki Ilkka in charge
and APA Terhi Mäkinen as the deputy auditor.
The Board was authorized to resolve on share issue and share repurchase.
A separate stock exchange release has been issued on the Board authorizations
and other resolutions of the Annual General Meeting of Shareholders on February
18, 2010.
The subscription period of shares subscribed for on the basis of Basware
Corporation's option programs 2006 Series B and 2007 Series D ended on March
31, 2010. Each option right entitled the holder to subscribe for one Basware
share. 141 600 shares were subscribed for with the options.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
In accordance with Basware's risk management policy, risks are divided into six
categories: risks related to business operations, products, personnel as well as
legal, financial and data security risks. Basware takes risks that are a natural
part of its strategy and objectives. These risks are managed and decreased in
various ways. Short-term risks are considered to be risks in the current
reporting year.
Market forecasts updated in March-April 2010 expect the software purchases to
increase by 7.2 percent globally and 8.3 percent in US in 2010. The entire IT
services market is expected to grow by 5.6 percent globally and by 5.4 percent
in US in 2010.
The global economic uncertainty continues, which might decrease companies'
investment willingness to invest also in the future. This might have an
unfavorable impact on the development of the company's net sales and
profitability.
Previously in times of economic uncertainty, the demand for the company's
products and services has remained more positive than the general market, as the
company's software solutions generate cost savings.
The depression has generally increased companies' delinquency entries and the
number of bankruptcies. Typically, companies may also prolong the times of
payments in order to free up working capital. Basware has intensified its
management of sales receivables, and business management regularly monitors the
payment of sales receivables as part of the management of customer accounts.
The Group's main currency is Euro, accounting for approximately 61 percent of
net sales in 2009 (approximately 67% in 2008). The significance of exchange rate
fluctuations between the euro and other currencies will increase hand in hand
with the share of international operations. The company did not realize hedging
for exchange rate fluctuations during the financial period as the
foreign-currency-denominated cash flow in the subsidiaries did not exceed the
set annual foreign-currency-specific limit for hedging measures.
Basware's objective is to become the world's leading company in e-invoicing.
E-invoicing and the supporting Connectivity also target suppliers and buyers
outside Basware's existing customer base, which increases the customer
potential. The company's long-term objective is annual growth of more than 50
percent in SaaS, Basware Connectivity and e-invoicing business. SaaS, Basware
Connectivity and e-invoicing are scalable business models with a high business
potential. The realization of this growth potential requires a new operating
model as well as active and continuous development of competencies because of
the strong growth of the number of customers and transaction volumes. These
include sales and commissioning as well as customer support and product
development.
In other respects, no significant changes have taken place in Basware's
short-term risks and uncertainties during the financial period.
EVENTS AFTER THE REPORTING PERIOD
Basware Board of Directors approved in its meeting on April 13 subscription of
total of 130 100 shares subscribed with Basware Warrant Programs. The share
subscriptions were based on the Warrant Program 2006 series B warrants (56 400
shares) and Warrant Program 2007 series D warrants (73 700 shares).
FUTURE OUTLOOK
Market forecasts updated in March-April 2010 expect the software purchases to
increase by 7.2 percent globally and 8.3 percent in US in 2010. The entire IT
services market is expected to grow by 5.6 percent globally and by 5.4 percent
in US in 2010.
Basware's direct competitors are primarily locally operating and often smaller
companies. In North America in particular, the company has also larger
competitors, especially in the field of procurement management. Developers of
document management, scanning and recycling systems compete with Basware,
particularly with regard to purchase invoice management solutions. Competing
solutions also include customized solutions integrated into ERP (Enterprise
Resource Planning) systems.
The software still offers a competitive edge, thanks to the integrated offering
consisting of new added value products and the products. Automation services, a
new concept in the portfolio, will have a positive impact on the
competitiveness.
Automation services increase the predictability and transparency of a company's
net sales and profitability. In 2009, revenue from continuous services
(including maintenance) accounted for more than 40 percent of the company's
total revenue. In order to support the sales of invoice automation solutions,
Basware will launch a mid-market SaaS (Software as a Service) solution. The
solution will be launched during the second quarter in North America and
thereafter in select markets.
Basware also aims to become a leading company in e-invoicing worldwide.
E-invoicing and supporting Connectivity Services are targeted to connect
suppliers and buyers also outside of Basware's existing software customer base,
leading into a higher potential.
The company's long-term target is to grow annually more than 50% in Automation
Services. SaaS, Connectivity Services and e-invoicing are scalable models and
offer an increasing profit potential in the long run. A growth investment
program of Basware Automation Services (SaaS, Connectivity and e-invoicing) has
been launched at the beginning of 2010, and it is expected to promote the
positive development of operations and order backlog.
The Company's international growth is based on efforts of its own sales and
marketing activity as well as the reseller channel. Development of the indirect
distribution channel continues in Europe, Russia and Asia. In North America, the
focus will be on developing the Company's own sales channel. In Scandinavia, the
focus is on profitability, and moderate growth is supported by the Company's
expanded product portfolio and the development of the service business. In
Finland, the focus is on profitability, and moderate growth will primarily be
achieved from the fields of procurement management and services.
Basware has complemented its organic growth with acquisitions. The Company will
continue to review possible acquisition targets during 2010. In particular,
possible acquisitions will aim at supporting Automation Services and expanding
the Company's distribution channel in international markets.
The Group's number of personnel will increase the most in Automation Services
and product development during the year. The number of personnel will increase
the most in India, which facilitates growth with a more moderate increase in
costs.
Additional growth related investments will be made moderately during the year,
provided that the operating profit and net sales develop as expected.
Basware expects its net sales for 2010 to develop positively on the level of
2009. Operating profit (EBIT) for 2010 is expected to be from 10 to 15 percent
of net sales.
Espoo, Finland, April 15, 2010
BASWARE CORPORATION
Board of Directors
For more information, please contact
CEO Ilkka Sihvo, Basware Corp.,
Tel. +358 9 8791 7251 or +358 40 501 8251
Analyst and Press Briefing
Basware arranges today, April 15, 2010 a briefing on the Interim Report for the
press and analysts at 11:00 a.m. in Hotel Kämp, Pohjoisesplanadi 29, Helsinki,
Finland. During this briefing CEO Ilkka Sihvo and CFO Mika Harjuaho will comment
the events and financial performance of the quarter. Welcome. Conference call to
analysts who are not able to attend the briefing will take place on Thursday,
April 15 at 13:00 EET. Please register through IR@basware.com<mailto:IR@basware.com> for appropriate information.
Distribution:
NASDAQ OMX Helsinki Ltd
Key media
www.basware.com <http://www.basware.com/>
The Interim Report has been prepared in accordance with the International
Financial Reporting Standards (IFRS), applying the same accounting principles as
in the 2009 Financial Statements. Key indicator calculations remain unchanged
and have been presented in the 2009 Financial Statements.
GROUP INCOME STATEMENT
EUR thousand 1.1.-31.3.2010 1.1.-31.3.2009 Change, % 1.1.-31.12.2009
--------------------------------------------------------------------------------
NET SALES 23 132 21 717 6.5 92 654
Other operating income 50 30 67.3 162
Materials and services -1 288 -1 552 -17.0 -6 193
Employee benefit
expenses -13 703 -12 896 6.3 -52 294
Depreciation and
amortization -1 236 -1 004 23.2 -4 456
Other operating expenses -4 818 -4 703 2.4 -18 048
--------------------------------------------------------------------------------
Operating profit 2 136 1 592 34.2 11 824
Finance income 116 124 -6.7 172
Finance expenses -111 -232 -52.4 -406
--------------------------------------------------------------------------------
Profit before tax 2 142 1 484 44.3 11 590
Income tax expense -560 -818 -31.6 -2 517
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 1 582 666 137.6 9 074
Other comprehensive
income:
Exchange differences on
translating
foreign operations 364 803 -54.7 1 326
Income tax relating to
components of
other comprehensive
income 201 -52 486.5 549
--------------------------------------------------------------------------------
Other comprehensive
income, net of tax 565 751 -24.8 777
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE
INCOME 2 147 1 417 51.5 9 850
Profit attributable to:
Owners of the parent 1 582 641 146.7 9 074
Minority interest 0 25 -100.0 0
--------------------------------------------------------------------------------
1 582 666 137.6 9 074
Total comprehensive
income attributable to:
Owners of the parent 2 147 1 392 54.2 9 850
Minority interest 0 25 -100.0 0
--------------------------------------------------------------------------------
2 147 1 417 51.5 9 850
Earnings per share
(undiluted), EUR 0.14 0.06 146.9 0.80
Earnings per share
(diluted), EUR 0.14 0.06 144.4 0.80
Average number of
shares:
- undiluted 11 383 312 11 394 147 11 381 905
- diluted 11 501 810 11 394 147 11 381 905
GROUP BALANCE SHEET
EUR thousand 31.3.2010 31.3.2008 Change, % 31.12.2009
--------------------------------------------------------------------------------
ASSETS
NON-CURRENT ASSETS
Intangible assets 19 722 17 267 14.2 20 291
Goodwill 31 705 30 170 5.1 31 119
Tangible assets 910 975 -6.7 823
Available-for-sale investments 38 38 38
Long-term trade and other receivables 40 235 -83.1 124
Deferred tax assets 2 091 2 165 -3.4 2 199
--------------------------------------------------------------------------------
Non-current assets 54 505 50 850 7.2 54 593
CURRENT ASSETS
Inventories 50 29 75.5 33
Trade and other receivables 24 066 21 691 11.0 19 684
Income tax receivables 633 2 483 -74.5 767
Financial assets at fair value through
profit or loss 34 31 8.0 34
Cash and cash equivalents 16 318 11 429 42.8 12 176
--------------------------------------------------------------------------------
Current assets 41 101 35 662 15.2 32 694
--------------------------------------------------------------------------------
TOTAL ASSETS 95 606 86 512 10.5 87 287
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 3 444 3 440 0.1 3 440
Issue of shares 1 573 100.0 140
Share premium account 69 69 69
Own shares -629 -622 -1.1 -629
Fair value reserve and other reserves 33 735 33 598 0.4 33 598
Translation differences -2 650 -3 241 18.2 -3 214
Retained earnings 20 978 14 664 43.1 23 176
Minority interest 0 163 -100.0 0
--------------------------------------------------------------------------------
Shareholders' equity 56 519 48 071 17.6 56 580
NON-CURRENT LIABILITIES
Deferred tax liability 3 669 2 367 55.0 3 997
Interest-bearing liabilities 1 837 5 551 -66.9 3 674
Non-interest-bearing liabilities 269 4 7 134.2 110
--------------------------------------------------------------------------------
Non-current liabilities 5 775 7 922 -27.1 7 782
CURRENT LIABILITIES
Interest-bearing liabilities 3 551 5 563 -36.2 5 555
Trade payables and other liabilities 29 348 23 812 23.2 17 039
Tax liability from income tax 413 1 144 -63.9 331
--------------------------------------------------------------------------------
Current liabilities 33 312 30 519 9.2 22 926
--------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 95 606 86 512 10.5 87 287
--------------------------------------------------------------------------------
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Inv.
Share- non- Retain Mino-
Holder Share Own restr Tran ed rity
s' Share premium Shar- equity Other sl. earnin inter-
capital issue account es res. res. diff gs est Total
EUR
thousand . .
SHARE-
HOLDERS'
EQUITY -3
1.1.09 3 440 0 69 -271 33 058 540 991 15 648 224 48 717
Compre-
hensive
income 751 641 25 1 417
Dividend
distribution -2 623 -2 623
Granted
warrants 308 308
Changes
in
reporting
period -351 689 -86 252
SHARE-
HOLDERS'
EQUITY -3
31.3.09 3 440 0 69 -622 33 058 540 241 14 664 163 48 071
Mino-
Tran rity
Share- Share Share Own Inv. sl. Retain Inter-
holders' issue premium shar non- Other diff. ed est
capital account es restr. res
EUR equity Total
thousand res.
SHARE-
HOLDERS'
EQUITY -3
1.1.10 3 440 140 69 -629 33 058 540 214 23 176 0 56 580
Compre-
hensive
income 565 1 582 2 147
Dividend
distribution -4 100 -4 100
Granted
warrants 69 69
Changes
in
reporting
period 3 1 432 137 251 1 824
SHARE-
HOLDERS'
EQUITY -2
31.3.10 3 444 1 573 69 -629 33 058 677 650 20 978 0 56 519
GROUP CASH FLOW STATEMENT
EUR thousand 1.1.-31.3.2010 1.1.-31.3.2009 1.1.-31.12.2009
--------------------------------------------------------------------------------
Net cash from operating activities
Profit for the period 1 582 666 9 074
Adjustments for profit 1 791 2 238 7 832
Working capital changes 8 315 6 400 -136
Interest paid -22 -96 -192
Interest received 18 16 104
Other financial items in operating
activities 48 -27 -30
Income taxes paid -616 -775 -1 920
--------------------------------------------------------------------------------
Net cash from operating activities 11 115 8 423 14 732
--------------------------------------------------------------------------------
Cash flows from investing
activities
Purchase of tangible and
intangible assets -586 -614 -3 135
Proceeds from sale of tangible and
intangible assets 0 1
Acquired subsidiaries -852 -724 -1 875
--------------------------------------------------------------------------------
Net cash used in investing
activities -1 438 -1 339 -5 009
--------------------------------------------------------------------------------
Cash flows from financing
activities
Minority's capital investment 1 573 140
Repayments of short-term loans -2 000 -3 558
Repayments of long-term borrowings -1 775 -1 783 0
Share repurchase -351 -358
Repayments of financial lease
liabilities 0
Dividends paid -3 633 -2 623 -2 623
--------------------------------------------------------------------------------
Net cash used in financing
activities -5 835 -4 757 -6 398
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in cash and cash
equivalents according to cash flow
statement 3 842 2 328 3 324
--------------------------------------------------------------------------------
Cash and cash equivalents at
beginning of period 12 210 8 777 8 777
Effects of exchange rate changes
on cash and cash equivalents 300 355 109
Cash and cash equivalents at end
of period 16 351 11 460 12 210
GROUP QUARTERLY INCOME STATEMENT
EUR thousand 1-3/2010 1-3/2009 4-6/2009 7-9/2009 10-12/2009
----------------------------------------------------------------------------
NET SALES 23 132 21 717 22 729 21 609 26 600
Other operating income 50 30 52 47 34
Materials and services -1 288 -1 552 -1 611 -1 395 -1 636
Employee benefit expenses -13 703 -12 896 -13 444 -11 113 -14 841
Depreciation and amortization -1 236 -1 004 -1 067 -1 106 -1 280
Other operating expenses -4 818 -4 703 -4 513 -4 014 -4 819
----------------------------------------------------------------------------
Operating profit 2 136 1 592 2 146 4 028 4 058
% 9.2% 7.3% 9.4% 18.6% 15.3%
Finance income 116 124 30 32 -15
Finance expenses -111 -232 -54 -115 -5
----------------------------------------------------------------------------
Profit before tax 2 142 1 484 2 122 3 946 4 038
% 9.3% 6.8% 9.3% 18.3% 15.2%
Income tax expense -560 -818 -727 -941 -30
----------------------------------------------------------------------------
PROFIT FOR THE PERIOD 1 582 666 1 396 3 005 4 007
% 6.8% 3.1% 6.1% 13.9% 15.1%
Changes of ownership
Basware increased its shareholding in Basware Einvoices Oy to 100 percent on
January 30, 2009, by acquiring 12.55 percent of the company's shares and control
from the company's management. The purchase price paid on the date of the
transaction was approximately EUR 720 thousand, and EUR 293 was paid in February
2010 as an additional purchase price based on the business volume for 2009.
Basware AS purchased the Norwegian invoice automation solution business of
Itella Information AS. The purchase price was NOK 6.38 million (approximately
EUR 0.72 million) and it was paid in cash on the day the acquisition was
completed, April 1, 2009. In addition, in February 2010 Basware paid an
additional purchase price of NOK 4 434 thousand (approximately EUR 559 thousand)
determined on the basis of the volume of the purchased operations' service sales
in 2009.
COMMITMENTS AND CONTINGENT LIABILITIES
EUR thousand 31.3.2010 31.3.2009 31.12.2009
--------------------------------------------------------------------------------
Own guarantees
Business mortgages of own debts 1 200 1 200 1 200
Commitments on behalf of subsidiaries and group
companies
Guarantees 1 122 1 098 1 075
Other own guarantees
Lease liabilities
Current lease liabilities 923 799 970
Lease liabilities maturing in 1-5 years 772 823 895
--------------------------------------------------------------------------------
Total 1 695 1 623 1 865
Other rental liabilities
Current rental liabilities 2 146 2 481 2 333
Rental liabilities maturing in 1-5 years 3 152 4 330 2 924
Rental liabilities maturing later 1 042 1 259 1 071
--------------------------------------------------------------------------------
Total 6 339 8 070 6 328
--------------------------------------------------------------------------------
Other own contingent liabilities, total 8 035 9 693 8 193
--------------------------------------------------------------------------------
SEGMENT REPORTING
Net sales by market area
+--------------------------------------------------------------+
|Net sales (EUR thousand) 1-3/2010 1-3/2009 Change, % 1-12/2009|
+--------------------------------------------------------------+
|Finland 12 191 11 331 7.6 50 486|
| |
|Scandinavia 5 253 5 317 -1.2 22 236|
| |
|Europe 5 069 4 666 8.6 18 717|
| |
|Other 2 373 1 195 98.6 9 201|
| |
|Sales between segments -1 754 -791 121.6 -7 985|
+--------------------------------------------------------------+
|Group total 23 132 21 717 6.5 92 654|
+--------------------------------------------------------------+
+-----------------------------------------------------------------------+
|Operating profit (EUR thousand) 1-3/2010 1-3/2009 Change, % 1-12/2009|
+-----------------------------------------------------------------------+
|Finland 1 092 849 28.7 7 714|
| |
|Scandinavia 762 666 14.4 3 169|
| |
|Europe 509 231 120.1 1 566|
| |
|Other 179 137 30.2 741|
| |
|Operating profit between segments -406 -292 39.2 -1 365|
+-----------------------------------------------------------------------+
|Group total 2 136 1 592 34.2 11 824|
+-----------------------------------------------------------------------+
+-------------------------------------------------------------+
|Personnel |
|(employed, on average) 1-3/2010 1-3/2009 Change, % 1-12/ 2009|
+-------------------------------------------------------------+
|Finland 501 439 14.0 454|
| |
|Scandinavia 127 138 -8.4 135|
| |
|Europe 122 122 -0.0 119|
| |
|Other 48 31 55.4 39|
+-------------------------------------------------------------+
|Group total 797 731 9.1 747|
+-------------------------------------------------------------+
Net sales by business
+--------------------------------------------------------------+
|Net sales (EUR thousand) 1-3/2010 1-3/2009 Change, % 1-12/2009|
+--------------------------------------------------------------+
|License Sales 4 648 4 677 -0.6 23 755|
| |
|Maintenance 8 113 7 138 13.7 29 757|
| |
|Professional Services 7 871 8 496 -7.4 31 174|
| |
|Automation services 2 500 1 406 77.8 7 967|
+--------------------------------------------------------------+
|Group total 23 132 21 717 6.5 92 654|
+--------------------------------------------------------------+
Net sales by the location of customer
+--------------------------------------------------------------+
|Net sales (EUR thousand) 1-3/2010 1-3/2009 Change, % 1-12/2009|
+--------------------------------------------------------------+
|Finland 10 695 10 323 3.6 42 449|
| |
|Scandinavia 4 995 5 209 -4.1 21 719|
| ||Europe 4 915 4 681 5.0 18 065|
| |
|Other 2 527 1 503 68.2 10 421|
+--------------------------------------------------------------+
|Group total 23 132 21 717 6.5 92 654|
+--------------------------------------------------------------+
GROUP KEY INDICATORS
EUR thousand 1-3/10 1-3/09 1-3/08 1-12/09
--------------------------------------------------------------------------------
Net sales 23 132 21 717 18 233 92 654
Growth of net sales, % 6.5% 19.1% 7.4% 7.6%
EBITDA 3 373 2 596 417 16 280
% of net sales 14.6% 12.0% 2.3% 17.6%
Operating profit before IFRS3
amortization 2 692 2 033 -58 13 788
% of net sales 11.6% 9.4% -0.3% 14.9%
Operating profit 2 136 1 592 -254 11 824
Growth of operating profit, % 34.2% 725.8% -118.1% 36.2%
% of net sales 9.2% 7.3% -1.4% 12.8%
Profit before tax 2 142 1 484 -250 11 590
% of net sales 9.3% 6.8% -1.4% 12.5%
Profit for the period 1 582 666 -550 9 074
% of net sales 6.8% 3.1% -3.0% 9.8%
Return on equity, % 11.2% 5.5% -4.8% 17.2%
Return on investment, % 14.1% 11.3% -1.8% 18.8%
Interest-bearing liabilities 5 388 11 114 232 9 230
Cash and liquid assets *) 16 351 11 460 7 254 12 210
Gearing, % -19.4% -0.7% -15.7% -5.3%
Equity ratio, % 59.1% 55.6% 66.4% 64.8%
Total assets 95 606 86 512 67 496 87 287
Gross investments **) 845 619 822 7 448
% of net sales 3.7% 2.9% 4.5% 8.0%
Capital expenditure 263 126 193 2 047
% of net sales 1.1% 0.6% 1.1% 2.2%
Research and development costs 3 748 3 694 3 793 14 781
% of net sales 16.2% 17.0% 20.8% 16.0%
R&D personnel at end of period 192 176 160 195
Personnel on average during the
period 797 731 666 747
Personnel at end of period 808 730 665 761
Increase in personnel, % 10.7% 9.8% 24.8% 4.1%
Earnings per share, EUR 0.14 0.06 -0.05 0,80
Earnings per share (diluted), EUR 0.14 0.06 -0.05 0,80
Equity per share, EUR 4.92 4.18 3.89 4,93
P/E ratio 121.37 133.26 -160.90 18.21
Share price performance
lowest share price 15.00 6.60 7.50 6.60
highest share price 18.58 7.75 10.45 14.66
average share price 16.99 7.37 8.27 10.79
closing share price 16.86 7.50 7.90 14.52
Market capitalization at end of
period 192 024 003 85 340 355 90 598 180 165 206 004
Number of traded shares 400 317 431 908 482 102 2 038 565
% of average number of shares 3.5% 3.8% 4.2% 17.9%
Average number of shares
- undiluted 11 383 312 11 394 147 11 468 124 11 381 905
- diluted 11 501 810 11 394 147 11 468 124 11 381 905
*) Includes cash, cash equivalents and financial assets at fair value through
profit or loss
**) Includes capitalized R&D costs and acquisitions
Major Shareholders, March 31, 2010
Name Number of shares Votes, %
1 Sihvo, Ilkka 1 065 800 9.3
2 Eräkangas, Kirsi 1 021 800 8.9
Eräkangas, Kirsi 711 400 6.2
Eräkangas, Lotta 310 400 2.7
3 Vaajoensuu, Hannu 962 100 8.4
Vaajoensuu, Hannu 528 000 4.6
Havacment Oy 266 500 2.3
Vaajoensuu, Henri 83 800 0.7
Vaajoensuu, Petra 83 800 0.7
4 Perttunen, Sakari 830 400 7.2
5 Pöllänen, Antti 516 615 4.5
Launimo, Essi 100 208 0.9
6 Nordea Nordic Small Cap Fund 574 713 5.0
7 Mandatum Life Insurance Company 550 000 4.8
8 Ilmarinen Mutual Pension Insurance Company 544 850 4.7
9 Fondita Nordic Micro Cap Fund 296 376 2.6
10 Ahonen, Asko 288 736 2.5
11 Royal Skandia Life Assurance EIB 17527-6 250 000 2.2
12 Kaleva Mutual Insurance Company 242 690 2.1
13 Veritas Pension Insurance Company 226 000 2.0
14 Perttunen, Meimi 215 400 1.9
15 Aktia Capital 180 863 1.6
16 Basware Corporation 90 300 0.8
17 Vaajoensuu, Sara 83 700 0.7
18 Tietoklusteri Oy 77 000 0.7
19 Pavor Oy 75 052 0.7
20 Sinkkonen, Raija 70 000 0.6
20 largest shareholders total 8 262 603 72.0
Total of nominee-registered 999 279 8.7
Others 2 217 742 19.3
Total 11 479 624 100.00
[HUG#1403864]
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