2007-08-15 07:30:00 CEST
2007-08-15 07:30:00 CEST
REGULATED INFORMATION
Tecnomen - Quarterly report
TECNOMEN'S INTERIM REPORT 1 JANUARY - 30 JUNE 2007 (unaudited)
Net sales in the second quarter of the year increased 6.2 per cent to EUR 20.8 (19.6) million, and the result for the quarter increased 52.2 per cent to EUR 3.6 (2.4) million. The operating cash flow was EUR -1.0 (0.3) million. Net sales for the first half of the year decreased 8.4 per cent to EUR 31.9 (34.8) million and the result for the period was EUR 2.1 (2.2) million. The operating cash flow was EUR -8.1 (-5.0) million. The order book at the close of the period stood at EUR 20.5 (16.0) million. -------------------------------------------------------------------------------- | KEY FIGURES | 4-6/07 | 4-6/06 | 1-6/07 | 1-6/06 | 2006 | -------------------------------------------------------------------------------- | Net sales, MEUR | 20.8 | 19.6 | 31.9 | 34.8 | 71.8 | -------------------------------------------------------------------------------- | Net sales, change % | 6.2 | 2.9 | -8.4 | 10.1 | 4.1 | -------------------------------------------------------------------------------- | Operating result, MEUR | 3.9 | 3.0 | 1.9 | 3.4 | 4.9 | -------------------------------------------------------------------------------- | % of net sales | 18.6 | 15.2 | 6.0 | 9.7 | 6.8 | -------------------------------------------------------------------------------- | Profit before taxes, | 4.2 | 2.8 | 2.5 | 3.0 | 5.2 | | MEUR | | | | | | -------------------------------------------------------------------------------- | % of net sales | 20.0 | 14.0 | 7.8 | 8.7 | 7.3 | -------------------------------------------------------------------------------- | Result for the period | 3.6 | 2.4 | 2.1 | 2.2 | 3.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, | 0.06 | 0.04 | 0.03 | 0.04 | 0.06 | | basic, EUR | | | | | | -------------------------------------------------------------------------------- | Earnings per share, | 0.06 | 0.04 | 0.03 | 0.04 | 0.05 | | diluted, EUR | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order book, MEUR | | | 20.5 | 16.0 | 15.0 | -------------------------------------------------------------------------------- | Cash flow, MEUR | -1.0 | -0.3 | -14.0 | -5.6 | -12.8 | -------------------------------------------------------------------------------- | Operating cash flow, | -1.0 | 0.3 | -8.1 | -5.0 | -6.6 | | MEUR | | | | | | -------------------------------------------------------------------------------- | Cash funds, MEUR | | | 6.3 | 27.5 | 20.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity ratio, % | | | 81.9 | 87.2 | 84.3 | -------------------------------------------------------------------------------- | Gearing, % | | | -8.9 | -34.8 | -27.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel at end of | 347 | 393 | 347 | 393 | 374 | | period | | | | | | -------------------------------------------------------------------------------- President and CEO Jarmo Niemi: “The orders deferred from the first quarter were delivered, resulting in the highest quarterly net sales in the company's history. New orders came in as anticipated, so the order intake, more than EUR 25 million, was one of the best ever and the order book strong at the end of June. The result for the second quarter showed improvement on the corresponding period in the previous year. Despite the weak first quarter, the result for the whole six month period was similar to that in the previous year. The result for the review period was weakened by the decline of the US dollar against the euro and by an increase of EUR 1 million in the amortization of capitalized development costs, with a positive contribution of EUR 1 million from financial income and expenses providing some compensation for these. The performance of the Messaging business unit continued to be positive. During the review period the unit's net sales grew 41 %, with even stronger growth in the expanding Middle East and African markets. Sales through partners increased on target and the cost savings scheme started towards the end of last year brought good results. The unit recorded an operating profit of more than 20 % of net sales. The Charging business unit had a strong second quarter as expected and was better than the first quarter. An order intake that was about 50 % greater than second quarter net sales and the resulting strong order book at the end of June place the unit in a strong position for the rest of the year. The unit's operating result in the second quarter was about 20 % of net sales. However, this was not sufficient to make up for the weak first quarter, so the unit's operating result for the full review period was a loss. Unless otherwise stated, all figures presented below are for the review period 1-6/2007 and the figures for comparison are for the corresponding period 1-6/2006.” SALES AND NET SALES Tecnomen's net sales in the review period decreased by 8.4 per cent to EUR 31.9 (34.8) million. EUR 22.9 million of the sales in the review period has been recognised in accordance with IAS 11 (Construction contracts) and EUR 8.9 million in accordance with IAS 18 (Revenues). Net sales by geographical area were: Americas 50.2 per cent (60.9 %), EMEA 40.2 per cent (26.7 %) and APAC 9.5 per cent (12.4 %). Net sales by product line were: Messaging 56.4 per cent (36.7 %) and Charging 43.6 per cent (63.3 %). Sales through global partners totalled EUR 10.2 (8.3) million or 32.0 per cent (23.9 %) of net sales. Maintenance and service sales totalled EUR 7.1 million (5.3) or 22.4 per cent (15.1 %) of net sales. The order book stood at EUR 20.5 (16.0) million at the end of the review period. Americas accounted for 46.4 per cent of the order book, EMEA for 46.6 per cent and APAC for 7.0 per cent. OPERATING RESULT The operating result for the review period was EUR 1.9 (3.4) million. The decline of EUR 2.9 million in net sales had an impact on the operating profit. Net sales declined in the Charging business unit in Latin America. During 2007 major new orders have been received later in the year than in 2006. Sales of the Messaging business unit increased in Europe, Middle East and Africa. The decline in net sales occurred in the first quarter, when they were EUR 4.2 million down on the previous year. During the second quarter, however, net sales were EUR 1.2 million higher than in the previous year. Tecnomen's net sales are based on project sales, where the figures for different quarters of the year can vary considerably. During the review period EUR 0.3 million less of product development costs were capitalised than in the previous year and EUR 0.8 million more of development costs were amortised. Together these items had a negative impact on the result of EUR 1.1 million. The result for the period before taxes was EUR 2.5 (3.0) million. Earnings per share were EUR 0.03 (0.04). Equity per share at the end of the period was EUR 1.21 (1.35). FINANCING AND INVESTMENTS Tecnomen's liquid assets totalled EUR 6.3 (27.5) million. The cash flow for the six month review period was EUR -14.0 million, with EUR -13.0 million of this in the first quarter and EUR -1.0 million in the second. The first quarter cash flow included a repayment of capital to shareholders of EUR 5.9 million. Factors contributing to the reduction in liquid assets from the previous year were this EUR 5.9 million repayment of capital in March and a repayment of the same amount of capital in September 2006, so that in total capital of EUR 11.8 has been repaid. The balance sheet total on 30 June 2007 stood at EUR 86.9 (91.0) million. Interest-bearing liabilities amounted to EUR 0.0 (0.0) million. The debt to equity ratio (gearing) was -8.9 per cent (-34.8 %). The balance sheet structure remained strong and the equity ratio on 30 June 2007 was 81.9 per cent (87.2 %). Tecnomen's gross capital expenditure during the review period, excluding the capitalisation of development costs, was EUR 0.9 (1.5) million or 2.7 per cent (4.4 %) of net sales. Financial income and expenses (net) during the review period totalled EUR 0.6 (-0.3) million. The net effect of assessing foreign currency balance sheet items was EUR 0.4 (-0.6) million, the loss from assessing the fair value of funds was EUR -0.2 (0.1) million, and other financial income totalled EUR 0.4 (0.1) million. -------------------------------------------------------------------------------- | CHANGE IN WORKING CAPITAL, MEUR (increase - / | 1-6/07 | 1-6/06 | | decrease +) | | | -------------------------------------------------------------------------------- | Change in accounts receivable | -5.7 | -0.7 | -------------------------------------------------------------------------------- | Change in other short-term receivables | -4.3 | -2.0 | -------------------------------------------------------------------------------- | Change in inventories | -0.9 | -1.1 | -------------------------------------------------------------------------------- | Change in accounts payable | -0.9 | -0.6 | -------------------------------------------------------------------------------- | Change in other current liabilities | 3.9 | -0.9 | -------------------------------------------------------------------------------- | CHANGE IN WORKING CAPITAL, TOTAL | -7.8 | -5.3 | -------------------------------------------------------------------------------- During the review period, considerably more working capital than normal was tied up in accounts receivable and projects in progress, for major projects of the Charging business unit. These were mainly completed during the second quarter, so the working capital tied up in them is expected to be released during the second half of the year. MARKETS Messaging During the second quarter Tecnomen signed major orders for Messaging expansions in Asia, America and Africa. These and the previously agreed projects continue the positive developments in the Messaging business area that began in the final quarter of last year. Charging The growth in subscriber numbers continued in Central and South America and in Africa, and Tecnomen obtained major expansion orders in all these areas. During the second quarter the major delivery projects for Charging customers that had started earlier were mainly completed. RESEARCH AND DEVELOPMENT Research and development costs during the review period were EUR 7.9 (6.5) million, corresponding to 24.6 per cent (18.7 %) of net sales. EUR 3.3 (3.6) million of development costs were capitalised during the review period and will be amortised over 3-5 years from the start of commercial use. R&D costs of EUR 1.0 (0.2) million were amortised during the review period. PERSONNEL At the end of June 2007 Tecnomen employed 347 (393) persons, of whom 87 (120) worked in Finland and 260 (273) elsewhere. The company employed on average 356 (386) people during the review period. Personnel by geographical area were as follows: -------------------------------------------------------------------------------- | | 1-6/2007 | 1-6/2006 | 2006 | -------------------------------------------------------------------------------- | Personnel, at end of period | 347 | 393 | 374 | -------------------------------------------------------------------------------- | Americas | 64 | 66 | 65 | -------------------------------------------------------------------------------- | EMEA | 257 | 300 | 286 | -------------------------------------------------------------------------------- | APAC | 26 | 27 | 23 | -------------------------------------------------------------------------------- | Personnel, average | 356 | 386 | 387 | -------------------------------------------------------------------------------- | Personnel expenses before R&D | 12.4 | 13.5 | 27.5 | | capitalisation (MEUR) | | | | -------------------------------------------------------------------------------- TECNOMEN SHARES AND SHARE CAPITAL At the end of June 2007 the shareholders' equity of Tecnomen Corporation stood at EUR 71.2 (79.2) million and the share capital was EUR 4,720,446.24, divided into 59,072,078 shares. The company held 134,800 of these shares, which represents 0.23 per cent of the company's share capital and votes. Equity per share was EUR 1.21 (1.35). A total of 19,218,638 Tecnomen shares (EUR 28,094,020) were traded on the Helsinki Exchanges during the period 2 January - 30 June 2007, representing 32.53 per cent of the total number of shares. The highest share price quoted in the period was EUR 1.83 and the lowest EUR 1.23. The average quoted price was EUR 1.47 and the closing price on 30 June 2007 was EUR 1.25. The market capitalisation of the share stock at the end of the period was EUR 73,840,098. SEGMENT INFORMATION The Group's new organisation structure as from 1 October 2006 comprises the Messaging and Charging business units and support functions. Based on this change, as from the beginning of this year the primary segments in Tecnomen Group's financial reporting, in accordance with IFRS, are the Messaging and Charging product lines. This is because these are two clearly distinct businesses and they are also being monitored in the company's internal financial reporting as separate business units as from the beginning of this year. ANNUAL GENERAL MEETING The Annual General Meeting of Tecnomen Corporation held on 14 March 2007 approved the 2006 financial statements and discharged the Board of Directors and President from liability for the 2006 financial year. The AGM resolved, in accordance with the Board of Directors' proposal, to distribute EUR 0.10 per share from the unrestricted equity fund to the shareholders in proportion to their holdings. Payment was made to shareholders registered on 19 March 2007 in the company's shareholder register maintained by the Finnish Central Securities Depository Ltd. The capital repayment date was 26 March 2007. The payment was made on altogether 58,833,178 shares, giving an aggregate total payment of EUR 5,883,317.80. The capital repayment was not made on the shares in the company's own possession (134,800 shares). Board of Directors The Annual General Meeting confirmed that Tecnomen's Board of Directors would have six (6) members. The following Board members were re-elected: Lauri Ratia, Carl-Johan Numelin, Keijo Olkkola, Christer Sumelius and Timo Toivila. Johan Hammarén was elected as a new member to the Board. According to the decision taken at the preliminary meeting of the Board, Lauri Ratia continues as Chairman and Carl-Johan Numelin as Vice Chairman of the Board. The period of office for Tecnomen's current Board of Directors will end at the end of the 2008 Annual General Meeting. Auditors KPMG Oy Ab, Authorised Public Accountants, will continue as the company's auditors, with Sixten Nyman, APA, as responsible auditor, until the end of the 2008 Annual General Meeting of Shareholders. Current authorisations The Board of Directors was authorised to decide on acquiring a maximum of 5,800,000 of the Company's own shares. Own shares may be acquired with unrestricted shareholders' equity otherwise than in proportion to the holdings of the shareholders through public trading of the securities on the Helsinki Stock Exchange at the market price of the shares in public trading at the time of the acquisition. The shares can be acquired for the purpose of developing the capital structure of the Company, carrying out corporate acquisitions or other business arrangements to develop the business of the Company, financing capital expenditure, to be used as part of the Company's incentive schemes, or to be otherwise retained in the possession of the Company, disposed of or nullified in the extent and manner decided by the Board of Directors. The Board of Directors has the right to decide on other terms of the share acquisition. This authorisation replaces the authorisation given by the Annual General Meeting on 15 March 2006 and is valid for one year from the decision of the Annual General Meeting. The Board was authorised to decide on issuing a maximum of 17,800,000 new shares and/or conveying the Company's own shares either against payment or for free. The new shares may be issued and the Company's own shares may be conveyed to the Company's shareholders in proportion to their current shareholdings in the Company or waiving the shareholder's pre-emption right through a directed share issue, if the Company has weighty financial grounds for doing so. Such grounds could be to develop the capital structure of the Company, to carry out corporate acquisitions or other business arrangements to develop the business of the Company, to finance capital expenditure, or to use the shares as part of the Company's incentive schemes in the extent and manner decided by the Board of Directors. The Board was authorised to decide on a free share issue to the Company itself. The number of shares to be issued to the Company with the shares acquired by the Company under the authorisation to acquire own shares shall be a maximum of one tenth (1/10) of all the Company's shares. The Board of Directors also has the right to grant the special rights referred to in Chapter 10, Section 1 of the Companies Act, which carry the right to receive, against payment, new shares of the Company or the Company's own shares held by the Company such that the subscription price of the shares is paid in cash or by using the subscriber's receivable to set off the subscription price. The subscription price of the new shares and the consideration payable for the Company's own shares may be recorded partially or fully in the invested non-restricted equity reserve or in the share capital in the extent and manner decided by the Board of Directors. The Board of Directors shall decide on other terms and conditions related to the share issues and granting of the special rights. These authorisations replace the authorisations given by the Annual General Meeting on 15 March 2006 and are valid for two years from the decision of the Annual General Meeting. STOCK OPTION PROGRAMMES The company currently has a 2002 stock option programme and a 2006 stock option programme. The subscription periods for the 2002 stock options are: for the 2002C stock option 1 April 2005 - 30 April 2007 and for the 2002D stock option 1 April 2006 - 30 April 2008. The last exercise date for the 2002B stock option was 30 April 2007. The share subscription price for stock option 2002C is EUR 0.24 and for stock option 2002D EUR 1.11. The amount of the capital repayment per share (EUR 0.10) has been deducted from the subscription prices. During the review period a total of 66,500 new shares were subscribed with the 2002C stock options. The payments received for share subscriptions were recorded in their entirety in the invested non-restricted equity reserve. The 2006 stock option programme is divided into three series: the 2006A, 2006B and 2006C stock options. A maximum of 2,001,000 stock options may be issued, which entitle holders to subscribe for altogether 2,001,000 Tecnomen shares. The subscription period for the 2006A stock option is 1 April 2007 - 30 April 2010, for the 2006B stock option 1 April 2008 - 30 April 2011 and for the 2006C stock option 1 April 2009 - 30 April 2012. The share subscription price for 2006A stock options is EUR 2.61, for 2006B stock options EUR 1.46, and for 2006C stock options the trade-weighted average price of the Company share on the Helsinki Exchanges during 1 January - 31 March 2008. Tecnomen's Board of Directors has issued 436,000 2006A stock options to key personnel of Tecnomen Group. The remaining 2006 stock options have been issued to Tecnomen Japan Oy, a wholly owned Tecnomen subsidiary, for issuing at a later date to current or future key Group personnel. RISK MANAGEMENT AND UNCERTAIN FACTORS The greatest risks in Tecnomen's operations are related to major customer and partner relationships, to agreements made with these, and to the correct timing and success of its product development. Tecnomen's largest customers are much bigger businesses than the company itself and the five largest customers account for more than half of net sales. The relationship between the company and its major customers is one of interdependence, which poses a potential risk but also offers significant new business opportunities. Certain commitments are associated with the project and maintenance agreements made by the company, and unforeseen costs may arise in the future from these agreements. The company aims to limit these liabilities with limitation of liability clauses in customer contracts. In addition the company has a current global liability insurance to cover any liabilities that may materialise in connection with customer projects. Project deliveries result in large accounts receivable. The payment record of customers and the situation concerning receivables are actively monitored and credit rating checks are made on new customers before confirming an offer. Changes in exchange rates create risks especially in sales activities. A significant part of the company's net sales is in US dollars. The company hedges its currency denominated net position for a maximum period of 12 months, using currency forward contracts and currency options. Liquid funds are invested, avoiding credit and liquidity risks, in money-market deposits and short-term interest funds with a good credit rating. Carrying out projects creates risks. They are contained for example in projects that require new product development, where creating new product features may prove more difficult than anticipated. Another problem with project sales arises from variations in net sales and profit during the different quarters of the year. Forecasting these variations is often difficult. Tecnomen operates in a rapidly changing sector. When making R&D decisions there is the risk that the choice made may not bring the expected returns. Tecnomen's risks and uncertainties in the near future relate to major projects that are under negotiation and to their timing. EVENTS AFTER THE END OF THE PERIOD No significant events have occurred after the end of period. PROSPECTS FOR 2007 Net sales and operating result in 2007 are expected to be at the same level as in 2006. The variations between the different quarters of the year are considerable. FINANCIAL INFORMATION Tecnomen will publish its third quarter interim report as follows: 1-9/2007 Wednesday, 24 October. Tecnomen is holding a conference to announce its half year results at 10.00 am on 15 August 2007 in the Tapiola conference room at the Scandic Hotel Simonkenttä, Helsinki. The material presented at the press conference will be available at www.tecnomen.com. TECNOMEN CORPORATION Board of Directors FURTHER INFORMATION Mr Jarmo Niemi, President and CEO, tel. +358 (0)9 8047 8799 Mr Tuomas Wegelius, CFO, tel. +358 (0)9 8047 8650 DISTRIBUTION Helsinki Exchanges Main media -------------------------------------------------------------------------------- | CONSOLIDATED INCOME | Note | 4-6/07 | 4-6/06 | 1-6/07 | 1-6/06 | 2006 | | STATEMENT, MEUR | | | | | | | -------------------------------------------------------------------------------- | NET SALES | 2 | 20.8 | 19.6 | 31.9 | 34.8 | 71.8 | -------------------------------------------------------------------------------- | Other operating | | 0.1 | 0.1 | 0.1 | 0.2 | 0.3 | | income | | | | | | | -------------------------------------------------------------------------------- | Materials and | | -5.4 | -5.1 | -7.0 | -9.5 | -18.8 | | services | | | | | | | -------------------------------------------------------------------------------- | Employee benefit | | -5.4 | -6.4 | -11.5 | -12.2 | -25.6 | | expenses | | | | | | | -------------------------------------------------------------------------------- | Depreciation | | -1.0 | -0.6 | -2.1 | -1.2 | -3.0 | -------------------------------------------------------------------------------- | Other operating | | -5.3 | -4.7 | -9.6 | -8.8 | -19.8 | | expenses | | | | | | | -------------------------------------------------------------------------------- | OPERATING RESULT | | 3.9 | 3.0 | 1.9 | 3.4 | 4.9 | -------------------------------------------------------------------------------- | Financial income | | 0.6 | 0.1 | 1.3 | 0.6 | 2.1 | -------------------------------------------------------------------------------- | Financial expenses | | -0.3 | -0.3 | -0.7 | -1.0 | -1.7 | -------------------------------------------------------------------------------- | RESULT BEFORE TAXES | | 4.2 | 2.8 | 2.5 | 3.0 | 5.2 | -------------------------------------------------------------------------------- | Income taxes | | -0.6 | -0.4 | -0.4 | -0.8 | -2.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | RESULT FOR THE | | 3.6 | 2.4 | 2.1 | 2.2 | 3.2 | | PERIOD | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, | | 0.06 | 0.04 | 0.03 | 0.04 | 0.06 | | basic, EUR | | | | | | | -------------------------------------------------------------------------------- | Earnings per share, | | 0.06 | 0.04 | 0.03 | 0.04 | 0.05 | | diluted, EUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE | Note | 30.6.2007 | 31.12.2006 | 30.06.2006 | | SHEET, | | | | | | MEUR | | | | | -------------------------------------------------------------------------------- | Assets | | | | | -------------------------------------------------------------------------------- | Goodwill | | 0.7 | 0.7 | 0.7 | -------------------------------------------------------------------------------- | Other intangible assets | 3 | 13.0 | 10.6 | 8.8 | -------------------------------------------------------------------------------- | Tangible assets | 4 | 8.5 | 8.8 | 9.1 | -------------------------------------------------------------------------------- | Long-term trade and | | 0.3 | 0.5 | 0.5 | | other receivables | | | | | -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Inventories | 5 | 2.8 | 1.9 | 3.4 | -------------------------------------------------------------------------------- | Trade receivables | | 31.7 | 26.2 | 21.4 | -------------------------------------------------------------------------------- | Other receivables | | 23.6 | 19.7 | 19.6 | -------------------------------------------------------------------------------- | Cash and cash | | 6.3 | 20.5 | 27.5 | | equivalents | | | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | | 86.9 | 88.8 | 91.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | | 71.2 | 74.6 | 79.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | | -------------------------------------------------------------------------------- | Long-term non-interest | | 0.1 | | 0.1 | | bearing liabilities | | | | | -------------------------------------------------------------------------------- | Deferred tax | | 3.0 | 2.6 | 2.3 | | liabilities | | | | | -------------------------------------------------------------------------------- | Current liabilities | | | | | -------------------------------------------------------------------------------- | Short-term non-interest | | 12.7 | 11.5 | 9.4 | | bearing liabilities | | | | | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | 86.9 | 88.8 | 91.0 | -------------------------------------------------------------------------------- CHANGE IN SHAREHOLDERS' EQUITY, MEUR -------------------------------------------------------------------------------- | MEUR | Shar | Share | Other | Own | Translat | Inves- | Retai | Total | | | e | premiu | reser | shar | ion | ted | ned | | | | capi | m fund | ves | es | differen | non-re | ear-n | | | | tal | | | | ce | strict | ings | | | | | | | | | ed | | | | | | | | | | equity | | | | | | | | | | reserv | | | | | | | | | | e | | | -------------------------------------------------------------------------------- | Sharehold | 4.7 | 0.8 | 60.6 | -0.1 | 0.2 | 0.0 | 8.4 | 74.6 | | ers' | | | | | | | | | | equi | | | | | | | | | | ty | | | | | | | | | | 1 Jan. | | | | | | | | | | 2007 | | | | | | | | | -------------------------------------------------------------------------------- | Translati | | | | | 0.0 | | | 0.0 | | on | | | | | | | | | | differenc | | | | | | | | | | e | | | | | | | | | -------------------------------------------------------------------------------- | Net gain | | | | | 0.0 | | | 0.0 | | recognise | | | | | | | | | | d | | | | | | | | | | directly | | | | | | | | | | in | | | | | | | | | | sharehold | | | | | | | | | | ers' | | | | | | | | | | equity | | | | | | | | | -------------------------------------------------------------------------------- | Result | | | | | | | 2.1 | 2.1 | | for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | | | 0.0 | | 2.1 | 2.1 | | profits | | | | | | | | | | and | | | | | | | | | | losses | | | | | | | | | | recognise | | | | | | | | | | d | | | | | | | | | | during | | | | | | | | | | pe | | | | | | | | | | riod | | | | | | | | | -------------------------------------------------------------------------------- | Capital | | | -5.9 | | | | | -5.9 | | repayment | | | | | | | | | -------------------------------------------------------------------------------- | Options | | | | | | 0.0 | | 0.0 | | exercised | | | | | | | | | -------------------------------------------------------------------------------- | Share-bas | | | | | | | 0.1 | 0.1 | | ed | | | | | | | | | | payments | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | 0.2 | 0.2 | | adjustmen | | | | | | | | | | ts | | | | | | | | | -------------------------------------------------------------------------------- | Sharehold | 4.7 | 0.8 | 54.7 | -0.1 | 0.2 | 0.1 | 10.8 | 71.2 | | ers' | | | | | | | | | | equity | | | | | | | | | | 30 Jun. | | | | | | | | | | 2007 | | | | | | | | | -------------------------------------------------------------------------------- In March 2007 a capital repayment of altogether EUR 5,883,317.80, or EUR 0.10 per share, was made on 58,833,178 shares. -------------------------------------------------------------------------------- | MEUR | Share | Share | Other | Own | Translati | Retaine | Total | | | capita | premiu | reserv | shares | on | d | | | | l | m fund | es | | differ | earni | | | | | | | | ence | ngs | | -------------------------------------------------------------------------------- | Shareholde | 4.6 | 66.2 | 0.3 | -0.1 | 0.2 | 6.0 | 77.3 | | rs' equity | | | | | | | | | 1 Jan. | | | | | | | | | 2006 | | | | | | | | -------------------------------------------------------------------------------- | Translatio | | | | | 0.0 | | 0.0 | | n | | | | | | | | | differen | | | | | | | | | ce | | | | | | | | -------------------------------------------------------------------------------- | Net gain | | | | | 0.0 | | 0.0 | | recognised | | | | | | | | | directly | | | | | | | | | in | | | | | | | | | shareholde | | | | | | | | | rs' equity | | | | | | | | -------------------------------------------------------------------------------- | Result for | | | | | | 2.2 | 2.2 | | the period | | | | | | | | -------------------------------------------------------------------------------- | Total | | | | | 0.0 | 2.2 | 2.2 | | profits | | | | | | | | | and losses | | | | | | | | | recognised | | | | | | | | | during | | | | | | | | | period | | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | | -1.2 | -1.2 | | paid | | | | | | | | -------------------------------------------------------------------------------- | Options | 0.1 | 0.8 | | | | | 0.9 | | exercised | | | | | | | | -------------------------------------------------------------------------------- | Share-base | | | | | | 0.1 | 0.1 | | d payments | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | -0.2 | -0.2 | | adjustment | | | | | | | | | s | | | | | | | | -------------------------------------------------------------------------------- | Shareholde | 4.7 | 67.0 | 0.3 | -0.1 | 0.2 | 7.1 | 79.2 | | rs' | | | | | | | | | equity | | | | | | | | | 30 | | | | | | | | | Jun. 2006 | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW STATEMENT, MEUR | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- | Cash flow from operating activities | | | -------------------------------------------------------------------------------- | Result for the period | 2.1 | 2.2 | -------------------------------------------------------------------------------- | Adjustments | 1.4 | 1.3 | -------------------------------------------------------------------------------- | Interest income | -0.6 | -0.4 | -------------------------------------------------------------------------------- | Interest expense | 0.5 | 0.6 | -------------------------------------------------------------------------------- | Income taxes | 0.2 | 0.8 | -------------------------------------------------------------------------------- | Other adjustments | 0.0 | 1.0 | -------------------------------------------------------------------------------- | Changes in working capital | -7.8 | -5.3 | -------------------------------------------------------------------------------- | Interest paid | -0.0 | -0.6 | -------------------------------------------------------------------------------- | Interest received | 0.4 | 0.4 | -------------------------------------------------------------------------------- | Income taxes paid | -0.1 | -0.0 | -------------------------------------------------------------------------------- | Net cash flow from operating activities | -3.9 | 0.0 | -------------------------------------------------------------------------------- | Cash flow from investments | | | -------------------------------------------------------------------------------- | Investments in intangible assets | -3.3 | -3.6 | -------------------------------------------------------------------------------- | Investments in tangible assets | -0.9 | -1.4 | -------------------------------------------------------------------------------- | Net cash flow from investments | -4.2 | -5.0 | -------------------------------------------------------------------------------- | Cash flow from financing activities | | | -------------------------------------------------------------------------------- | Shares subscribed with share options | 0.0 | 0.9 | -------------------------------------------------------------------------------- | Repayment of current loans | | -0.0 | -------------------------------------------------------------------------------- | Repayment of non-current loans | | -0.4 | -------------------------------------------------------------------------------- | Dividend paid | | -1.0 | -------------------------------------------------------------------------------- | Capital repayment | -5.9 | | -------------------------------------------------------------------------------- | Net cash flow from financing | -5.9 | -0.6 | -------------------------------------------------------------------------------- | Increase (+) and decrease (-) in liquid | -14.0 | -5.6 | | funds | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liquid funds on 1 Jan. | 20.4 | 33.2 | -------------------------------------------------------------------------------- | Impact of changes in exchange rates | 0.0 | -0.0 | -------------------------------------------------------------------------------- | Change in fair value of investments | -0.2 | -0.1 | -------------------------------------------------------------------------------- | Liquid funds on 30 June | 6.3 | 27.5 | -------------------------------------------------------------------------------- | Change | -14.0 | -5.6 | -------------------------------------------------------------------------------- 1. ACCOUNTING PRINCIPLES AND BASIS FOR PREPARING CONSOLIDATED FINANCIAL STATEMENTS The Group's interim report has been prepared in accordance with the international financial reporting standard IAS 34 Interim Financial Reporting. The formulas for calculating the key figures presented and the accounting principles for the interim report are the same as the principles published in the 2006 Annual Report, apart from the change mentioned below in the presentation of segment information. 2. SEGMENT INFORMATION Tecnomen Group reports on the Messaging and Charging business units as its primary segments. The geographical areas are reported as secondary segments. Tecnomen Group operates in three geographical areas: Americas (North, Central and South America), EMEA (Europe, the Middle East and Africa) and APAC (Asia Pacific). Unallocated items include taxes, financial items and corporate assets and expenses. Net sales for the geographical segments are presented based on the location of customers. In reporting on the new segments, the figures for comparison for 2006 will not be presented for the new primary segments since the only information available for the new segments is net sales. -------------------------------------------------------------------------------- | BUSINESS SEGMENTS | 1-6/2007 | 1-6/2006 | | (primary segment information) | | | | NET SALES, MEUR | | | -------------------------------------------------------------------------------- | Messaging | 18.0 | 12.8 | -------------------------------------------------------------------------------- | Charging | 13.9 | 22.0 | -------------------------------------------------------------------------------- | TOTAL | 31.9 | 34.8 | -------------------------------------------------------------------------------- | OPERATING PROFIT, MEUR | 1-6/2007 | | -------------------------------------------------------------------------------- | Messaging | 3.8 | | -------------------------------------------------------------------------------- | Charging | -0.7 | | -------------------------------------------------------------------------------- | Unallocated items | -1.2 | | -------------------------------------------------------------------------------- | TOTAL | 1.9 | | -------------------------------------------------------------------------------- | PERSONNEL | 1-6/2007 | | -------------------------------------------------------------------------------- | Messaging | 135 | | -------------------------------------------------------------------------------- | Charging | 202 | | -------------------------------------------------------------------------------- | Group personnel | 10 | | -------------------------------------------------------------------------------- | TOTAL | 347 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GEOGRAPHICAL SEGMENTS | 1-6/2007 | 1-6/2006 | | (secondary segment information) | | | | NET SALES, MEUR | | | -------------------------------------------------------------------------------- | Americas | 16.0 | 21.2 | -------------------------------------------------------------------------------- | EMEA | 12.8 | 9.3 | -------------------------------------------------------------------------------- | APAC | 3.0 | 4.3 | -------------------------------------------------------------------------------- | TOTAL | 31.9 | 34.8 | -------------------------------------------------------------------------------- 3. INTANGIBLE ASSETS During the review period EUR 3.3 million of development costs have been capitalised (EUR 3.6 million during 1 Jan-30 June 2006) and will be amortised over 3-5 years from the start of commercial use. Research and development costs of EUR 1.0 (EUR 0.2 million during 1 Jan-30 June 2006) were amortised during the review period. 4. TANGIBLE ASSETS Acquisitions of tangible assets in the review period totalled EUR 0.9 million (EUR 1.4 million during 1 Jan-30 June 2006). Disposals during the review period were EUR 0.0 million (EUR 0.0 million during 1 Jan-30 Jun 2006). 5. INVENTORIES An expense of EUR 0.2 million was recorded in the review period for writing down the carrying value of inventories to their net realisable value (EUR 0.5 million in 2006). No comparable write-down entry was made in the period for comparison 06/2006. 6.OPERATING LEASES, MEUR -------------------------------------------------------------------------------- | Operating leases | 1-6/2007 | 2006 | -------------------------------------------------------------------------------- | Less than one year | 0.4 | 0.5 | -------------------------------------------------------------------------------- | Between one and five years | 0.8 | 0.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 7. CONSOLIDATED CONTINGENT LIABILITIES, | 1-6/2007 | 2006 | | MEUR | | | -------------------------------------------------------------------------------- | Pledges given | | 0.6 | -------------------------------------------------------------------------------- | For other own commitments | | | -------------------------------------------------------------------------------- | Mortgages | 0.6 | 0.6 | -------------------------------------------------------------------------------- | Pledges | | | -------------------------------------------------------------------------------- | On own behalf | 0.1 | 0.1 | -------------------------------------------------------------------------------- | Other liabilities | | | -------------------------------------------------------------------------------- | Restriction related to real estate in | 0.7 | 1.0 | | Ireland | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 8. CONSOLIDATED KEY FINANCIAL | 1-6/2007 | 1-6/2006 | 2006 | | FIGURES, MEUR | | | | -------------------------------------------------------------------------------- | Return on investment, % | 8.7 | 10.2 | 9.1 | -------------------------------------------------------------------------------- | Return on equity, % | 5.6 | 5.7 | 4.3 | -------------------------------------------------------------------------------- | Equity ratio, % | 81.9 | 87.2 | 84.3 | -------------------------------------------------------------------------------- | Debt/equity ratio (gearing), % | -8.9 | -34.8 | -27.4 | -------------------------------------------------------------------------------- | Investments | 0.9 | 1.5 | 2.4 | -------------------------------------------------------------------------------- | % of net sales | 2.7 | 4.4 | 3.4 | -------------------------------------------------------------------------------- | Research and development | 7.9 | 6.5 | 13.2 | -------------------------------------------------------------------------------- | % of net sales | 24.6 | 18.7 | 18.4 | -------------------------------------------------------------------------------- | Order book | 20.5 | 16.0 | 15.0 | -------------------------------------------------------------------------------- | Personnel, average | 356 | 386 | 387 | -------------------------------------------------------------------------------- | Personnel, at end of period | 347 | 393 | 374 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED KEY FIGURES PER | 1-6/2007 | 1-6/2006 | 2006 | | SHARE, MEUR | | | | -------------------------------------------------------------------------------- | Earnings per share, basic, EUR | 0.03 | 0.04 | 0.06 | -------------------------------------------------------------------------------- | Earnings per share, diluted, | 0.03 | 0.04 | 0.05 | | EUR | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | 1.21 | 1.35 | 1.27 | -------------------------------------------------------------------------------- | Number of shares at end of | 59,072 | 58,971 | 59,006 | | period, x 1,000 | | | | -------------------------------------------------------------------------------- | Number of shares on average, x | 58,904 | 58,642 | 58,673 | | 1,000 | | | | -------------------------------------------------------------------------------- | Share price, EUR | | | | -------------------------------------------------------------------------------- | Average | 1.47 | 2.50 | 2.01 | -------------------------------------------------------------------------------- | Lowest | 1.23 | 1.81 | 1.38 | -------------------------------------------------------------------------------- | Highest | 1.83 | 3.06 | 3.06 | -------------------------------------------------------------------------------- | Share price at end of period | 1.25 | 2.07 | 1.68 | -------------------------------------------------------------------------------- | Market capitalisation of issued | 73.8 | 122.1 | 99.1 | | stock at end of period, MEUR | | | | -------------------------------------------------------------------------------- | Share turnover, million shares | 19.2 | 27.6 | 59.8 | -------------------------------------------------------------------------------- | Share turnover, % of total | 32.5 | 46.9 | 101.4 | -------------------------------------------------------------------------------- | Share turnover, MEUR | 28.1 | 69.6 | 122.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KEY FIGURES PER | 2Q/07 | 1Q/07 | 4Q/06 | 3Q/06 | 2Q/06 | 1Q/06 | | QUARTER, MEUR | | | | | | | -------------------------------------------------------------------------------- | Net sales, MEUR | 20.8 | 11.0 | 20.1 | 16.9 | 19.6 | 15.2 | -------------------------------------------------------------------------------- | Net sales, change % | 6.2 | -27.3 | 12.5 | -13.2 | 2.9 | 20.9 | -------------------------------------------------------------------------------- | Operating result, MEUR | 3.9 | -2.0 | 0.6 | 0.9 | 3.0 | 0.4 | -------------------------------------------------------------------------------- | % of net sales | 18.6 | -17.7 | 3.0 | 5.3 | 15.2 | 2.6 | -------------------------------------------------------------------------------- | Result before taxes, | 4.2 | -1.7 | 0.5 | 1.7 | 2.8 | 0.3 | | MEUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel at end of | 347 | 352 | 374 | 395 | 393 | 387 | | period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, | 0.06 | -0.03 | -0.01 | 0.02 | 0.01 | -0.00 | | basic, EUR | | | | | | | -------------------------------------------------------------------------------- | Earnings per share, | 0.06 | -0.03 | -0.01 | 0.02 | 0.01 | -0.00 | | diluted, EUR | | | | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | 1.21 | 1.15 | 1.27 | 1.27 | 1.35 | 1.30 | -------------------------------------------------------------------------------- | Net interest-bearing | -6.3 | -7.3 | -20.4 | -23.5 | -27.5 | -27.3 | | liabilities, MEUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order book, MEUR | 20.5 | 15.9 | 15.0 | 18.5 | 16.0 | 21.3 | 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