2007-04-25 09:15:45 CEST
2007-04-25 09:15:45 CEST
REGULATED INFORMATION
Ixonos - Quarterly report
Ixonos, Quarterly report
IXONOS PLC STOCK EXCHANGE RELEASE 25.4.2007
IXONOS PLC INTERIM REPORT 1 JANUARY - 31 March 2007
IXONOS' TURNOVER GREW STRONGLY, OPERATING PROFIT MEETS FORECASTS
- Turnover for the review period was EUR 13.2 million (2006: EUR
9,0 million), an increase of 46.7 percent.
- Operating profit was EUR 1.0 million (2006: 1,0 MEUR), 7.3
percent of turnover, a -1.4 increase in operating profit.
- Operating profit excluding one-off expenses was EUR 1.5
million (2006: EUR 1.0 million), 11.5 percent of turnover,
operating profit growth excluding one-off expenses was 55.2
percent.
- Net profit was EUR 0.7 million (2006: EUR 0.7 million), 5.1
per cent of turnover, net profit growth was -5.0 percent.
- Net profit excluding one-off expenses was EUR 1.2 million
(2006: EUR 0.7 million), 9.2 percent of turnover, net profit
growth excluding one-off expenses was 73.4 percent.
- Earnings per share were EUR 0.09 (2006: EUR 0.10).
- Earnings per share excluding one-off expenses were EUR 0.16
(2006: EUR 0.10).
- Diluted earnings per share were EUR 0.09 (2006: EUR 0.09).
- Diluted earnings per share excluding one-off expenses were EUR
0.16 (2006: EUR 0.09).
- Turnover of the Systems Services Business Unit for the review
period was EUR 5.0 million (2006: EUR 3,3 million), an increase
of 53.2 percent.
- The operating profit of the Business Unit was EUR 0.5 million
(2006: EUR 0.5 million), 10.3 percent of turnover, operating
profit growth was -0.8 percent.
- Turnover of the Telecommunications Business Unit for the
review period was EUR 8.4 million (2006: EUR 5,8 million), an
increase of 44.6 percent.
- The operating profit of the Business Unit was EUR 1.4 million
(2006: EUR 0.9 million), 16.7 percent of turnover, operating
profit growth was 63.2 percent.
- The company's turnover in the second quarter of 2007 is
expected to significantly exceed the second-quarter turnover of
2006, amounting to approximately EUR 13.5 million, and the
turnover for the whole year is expected to grow to EUR 48-50
million.
- The company's operating profit percentage in the second
quarter is expected to be on the same level as in the first
quarter (excluding one-off expenses), and the operating profit
is thus expected to clearly exceed the operating profit of the
previous year. The operating profit percentage for the whole
year is expected to be on the same level as in 2006, at least,
and the operating profit is expected to clearly exceed that of
the previous year.
President and CEO, Kari Happonen:
Our turnover continued to grow strongly in the first quarter of
2007, and it exceeded the turnover of the first quarter of the
previous year by almost 50 percent. Compared to the year 2006,
the Group's pro forma organic growth in the review period was as
high as 35.8 percent.
Both of our Business Units performed strongly, and their growth
significantly outpaced market growth. Thus, we have continued to
win market share from our competitors.
Due to the EUR 0.55 million one-off expenses related to the
change of the company name and the revamping of the corporate
image, our operating profit remained on the level of the same
period in 2006. However, excluding the one-off expenses,
operating profit grew strongly, approximately 55 percent.
The ongoing year has started out in an excellent way, and we
believe that both of our Business Units will continue to grow
strongly. Despite strong growth, we have been able to maintain
high business profitability, and we expect that our operating
profit percentage will return to normal level after the one-off
expenses in the first quarter.
FUTURE PROSPECTS
Market analysts estimate that the growth of the Finnish ICT
service market will be 4-6 percent in 2007. If private
companies and public administration organizations even
moderately increase their investments to upgrade and develop
their information systems and software, Ixonos Systems Services
Unit has potential to boost its business. Accelerated by the new
large-scale services with extensive responsibility, the Unit's
turnover is expected to continue to grow in the second quarter
and throughout the financial period. The profitability of the
Unit is expected to improve in the second quarter.
The growth expectations for the Telecommunications Unit are
based one the increasing demand for comprehensive-responsibility
software development, integration and testing services across a
wider customer base, as well as the growing smartphone markets.
The turnover of the Telecommunications Unit is expected to
continue to grow strongly in the second quarter and throughout
the financial year. The profitability of the Unit is expected to
stay almost on the same level as in the first quarter.
Judging from the Business Units' order backlogs and tender
prospects, the turnover of Ixonos Group in the second quarter is
expected to clearly exceed the turnover of the same period in
2006, amounting to approximately EUR 13.5 million, and the 12-
month turnover is expected to amount to EUR 48-50 million.
The company's operating profit percentage in the second quarter
is expected to be on the same level as in the first quarter
(excluding one-off expenses), and the operating profit is thus
expected to clearly exceed the operating profit of the previous
year. The operating profit percentage for the whole year is
expected to be on the same level as in 2006, at least, and the
operating profit is expected to clearly exceed that of the
previous year.
BUSINESS OPERATIONS
Ixonos operates in the ICT service markets, offering its
customers flexible software development, maintenance and project
management solutions that support their competitiveness and risk
management. Ixonos' services range from expert work and
consultation to software project deliveries and software
maintenance services with comprehensive responsibility.
Ixonos' operational business is organized into two Business
Units, Systems Services and Telecommunications. The Systems
Services Unit develops and maintains software that is part of
the customer companies' information systems, and it also
produces project management services. The Unit's most
significant customers operate in the telecommunications, finance
and public administration sectors.
The Telecommunication Unit produces software development,
integration and testing services for the telecommunications
sector. The Unit's clientele comprises leading mobile and
smartphone manufacturers operating on the global markets, as
well as mobile network suppliers and telecom carriers.
The Ixonos Group comprises Ixonos Project Management Services, a
company specializing in expert services related to project
management, Ixonos Slovakia s.r.o. based in Kosice, Slovakia, a
company supporting both Business Units, and Ixonos Testhouse Oy
(including Estonia-based subsidiary Testhouse Estonia OÜ)
producing smartphone software testing services.
Systems Services
During the period under review, the turnover of the Ixonos
Systems Services Unit turnover grew by 53.2 percent, amounting
to EUR 5.0 million (2006: EUR 3.3 million). The Unit's strong
growth during the review period was a result of new customer
projects launched, as well as of the strong growth of Service 4
Mobile Oy (now Ixonos Project Management Services Ltd), a
company producing project management services. Ixonos acquired
Service 4 Mobile in June 2006.
Upfront recruitment, which is a prerequisite for strong growth,
temporarily weakened the Unit's profitability in the first
quarter, keeping the Unit's operating profit at EUR 0.5 million
(2006: EUR 0.5 million). The Unit's operating profit is expected
to improve in the second quarter.
The Unit is preparing to integrate the software production
services of the Slovakian subsidiary to become a part of the
Unit's software production services with comprehensive
responsibility.
In the first quarter, market competition remained fierce in the
Systems Services Unit's business segment.
Telecommunications
During the period under review, the turnover of Ixonos
Telecommunications Unit grew by 44.6 percent, amounting to EUR
8.4 million (2006: EUR 5.8 million). Turnover increased as the
number of software projects with comprehensive responsibility
increased, and the as cooperation with all key customers
deepened. The Unit succeeded in further increasing its markets
share among its most significant customers.
Relative profitability of the Telecommunications Unit clearly
improved compared to the previous year, and operating profit
grew by 63.2 percent to EUR 1.4 million (2006: EUR 0.9 million).
The Unit's strong smartphone expertice as well as the lower-cost
services support the Unit's competitiveness when competing for
large-scale customer projects with comprehensive responsibility,
and when expanding to new customerships on the international
smartphone markets.
During the review period, Ixonos Testhouse Ltd, the subsidiary
producing smartphone software testing services, and Tallinn-
based Ixonos Testhouse Estonia OÜ grew into an entity employing
more than 50 people.
The operations of the Telecommunications Unit were launched
in the Ixonos Slovakian subsidiary in Kosice according to plan
during the review period. The unit in Kosice produces software
development services for all stages of software project production
and implements part-projects in software ventures for the
Telecommunications Unit's key customers.
The global competition for the software ventures of the leading
international mobile and smartphone manufacturers remained
fierce.
TURNOVER
Consolidated turnover was EUR 13.2 million (2006: EUR 9.0
million), up 46.7 percent from the previous year. Of turnover
total, 62 percent was accrued by the Telecommunications Unit and
percent 38 percent by the Systems Services Unit.
TURNOVER BY SEGMENT
K EURO 1-3 2007 1-3 2006 1-12 2006
Telecommunications 8,411 5,815 24,879
Systems Services 5,000 3,265 14,604
Eliminations - 187 - 65 - 299
Group total 13,224 9,015 39,184
FINANCIAL RESULT
Consolidated operating profit was EUR 1.0 million (2006: EUR 1.0
million), and profit before taxes was EUR 0.9 million (2006: EUR
0.9 million). Profit for the review period was EUR 0.7 million
(2006: EUR 0.7 million), which is 5.1 per cent of turnover.
Diluted earnings per share were EUR 0.09 (2006: EUR 0.09). Cash
flow from business operations was EUR 0.24 per share (2006: EUR
0.10).
The Group's result was burdened by a EUR 0.55 million one-off
expense related to the change of the company name and the
revamping of the corporate image. Excluding the aforementioned
one-off expenses, the Group's operating profit was EUR 1.5
million (11.5 percent of turnover) and profit before taxes was
EUR 1.5 million (11.1 percent of turnover). The profit
excluding one-off expenses was EUR 1.2 million (9,2 percent of
turnover). Diluted earnings per share, excluding one-off items,
were EUR 0.16 (2006: 0.09), and operating cash flow per share
was EUR 0.31 (2006: 0.10).
OPERATING PROFIT BY SEGMENT
K EURO 1-3 2007 1-3 2006 1-12 2006
Telecommunications 1,404 860 3,583
Systems Services 515 519 1,629
Administration* - 956 - 403 - 1,271
Group total 963 977 3,941
* The administrative costs include one-off expenses of EUR 0.55
million.
RETURN ON CAPITAL INVESTMENT
Consolidated return on equity (ROE) was 26.1 per cent (2006:
33.7) and return on investment (ROI) was 24.9 per cent (2006:
30.3).
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 26,2 million (2006: EUR 20.0
million). Shareholders' equity was EUR 9.6 million (2006: EUR
8.1 million). Equity ratio was 36.7 percent (2006: 40.3
percent). The Group's liquid assets stood at EUR 4.5 million at
the end of the review period (2006: EUR 3.3 million). The
Group's liquidity remained good.
CASH FLOW
Consolidated cash flow from business operations was EUR 1.9
million (2006: EUR 0.8 million).
PERSONNEL
The number of personnel averaged 596 (2006: 458) during the
period under review and was 613 (2006: 460) at the end of the
period.
SHARES AND SHARE CAPITAL
The highest share price quoted during the first quarter was EUR
5.70 (2006: EUR 4.54), the lowest EUR 4.55 (2006: EUR 3.75) and
the last share price quoted on 31 March 2007 was EUR 5.26 (2006:
EUR 4.25). The average quotation for the review period was EUR
5.06 (2006: EUR 4.39).
The number of shares traded during the review period was
1,855,792 (2006: 1,187,331), which corresponds to 25 percent
(2006: 16 percent) of the total number of shares. The market
value of the share capital at the final quotation on 31 March
2007 was EUR 39,048,622 (2006: EUR 31,074,725).
Ixonos' share capital is EUR 296,948.00, and the total number of
shares is 7,423,700. The accounting countervalue of the share is
EUR 0.04.
SHAREHOLDERS
There were 2,556 shareholders on 31 March 2007. Private persons
owned 65 percent and institutions 35 per cent of the company's
shares. Foreign ownership was 5 per cent.
TIETO-X PLC EXTRAORDINARY GENERAL MEETING
The extraordinary General Meeting of Tieto-X Plc on 25 January
2007 approved the proposal by the Board of Directors to change
the company name and the company's Articles of Association. The
decision to change the company name to Ixonos Oyj was made upon
conditions and provided that the Trade Register registers the
change of name.
The Trade Register registered the change of name on 9 February
2007.
ANNUAL GENERAL MEETING OF IXONOS PLC
The Annual General Meeting of Ixonos Plc held on 22 March 2007
adopted the company's and Ixonos Group's financial statement for
the financial period 1 January-31 December 2006 and granted
discharge from liability to the Members of the Board of
Directors and the CEO.
Payment of dividend
The Annual General Meeting decided to distribute as dividend EUR
0,27 per share. The dividend was paid on 4 April 2007 to the
shares that were registered on the balance day 27 March 2007 on
the company's shareholders list maintained by Finnish Central
Securities Depositary Ltd.
The composition of the Board of Directors
The Annual General Meeting confirmed the number of Board members
to be 6. The Annual General Meeting re-elected Eero Hurme, Seppo
Jaatinen, Matti Järvinen, Tero Laaksonen, Matti Makkonen and
Esko Siik as members of the Board.
At its meeting right after the Annual General Meeting, the Board
of Directors elected Tero Laaksonen Chairman of the Board and
Eero Hurme Deputy Chairman of the Board.
Representatives of the shareholders in the Nomination Committee
The Annual General Meeting elected Peter Ramsay and Jari
Kivihuhta as the shareholders' members of the Nomination
Committee.
The Annual General Meeting unanimously approved the following
proposals by the Board of Directors:
- The authorization of the Board of Directors to decide on a
share issue
The General Meeting authorized the Board to decide on the issue
of no more than 1,500,000 shares through a share issue on one or
more occasions. The Board may decide to issue new shares or own
shares held by the company. The maximum number of shares
included in the authorization accounts for approximately 20.2
per cent of the company's registered shares.
The authorization can be used to finance or implement any
corporate acquisitions or other arrangements, or for other
purposes decided by the Board. The authorization includes the
right of the Board to decide on all terms and conditions on the
share issue, including the recipients of shares and the
compensation to be paid. Thus, the authorization includes the
right to issue shares through private offering, i.e. to deviate
from the shareholders' pre-emptive right as determined by the
law.
The authorization is effective until the next Annual General
Meeting, expiring on 30 June 2008 at the latest.
- The authorization of the Board of Directors to acquire the
company's own shares
The Annual General Meeting authorized the Board to decide on the
acquisition of no more than 742.370 of the company's own shares,
provided that the company and its subsidiaries at no time hold
more than 10 per cent of the company's registered shares.
Own shares can be acquired to develop the company's capital
structure, to finance acquisition or other corporate structuring
or to be conveyed or cancelled.
The minimum purchasing price of the shares to be acquired is the
lowest market price noted in the public trading during the
authorization period, and the maximum purchasing price is the
highest price noted in the public trading during the
authorization period.
The Board of Directors will decide on the means of acquisition
and other terms and conditions. The acquisition may deviate from
the shareholders' pre-emptive rights to acquire the Company's
shares (directed acquisition), provided that weighty financial
grounds exist.
Under this authorization, own shares may only be acquired using
non-tied equity. Thus, the share acquisition reduces the
company's distributable non-tied equity.
The authorization is effective until the next Annual General
Meeting, expiring on 30 June 2008 at the latest.
NEXT REPORTS
The Interim Report for the period 1 January - 30 June 2007 will
be published on 1 August 2007.
IXONOS PLC
The Board of Directors
ADDITIONAL INFORMATION:
IXONOS PLC
President and CEO, Kari Happonen
phone +358 424 2231, GSM +358 400 700 761,
kari.happonen@ixonos.com
DISTRIBUTION:
Helsinki Stock Exchange
Main media
Neither this press release nor any copy of it may be taken,
transmitted into or distributed in the United States of America
or its territories or possessions.
IXONOS GROUP
The Interim Report has been prepared in accordance with the
recognition and valuation principles of the International
Financial Reporting Standards (IFRS).
The figures in the income statement and balance sheet have been
consolidated. All group companies are included in the
consolidated balance sheet. The original Interim Report is in
Finnish. The English version is a translation. The figures are
unaudited.
CONSOLIDATED PROFIT AND 1.1.- 1.1.- 1.1.-
LOSS ACCOUNT, K EURO 31.3.2007 31.3.2006 Change 31.12.2006
Turnover 13,224 9,015 46.7 % 39,184
Operating costs - 12,260 - 8,038 52.5 % - 35,243
OPERATING PROFIT 963 977 - 1.4 % 3,941
Financial income and - 52 - 49 6.4 % - 174
expenses
Profit before extraordinary 911 928 - 1.8 % 3,766
items
Extraordinary income and 0 0 0
expenses
Profit before provisions 911 928 - 1,8 % 3,766
and taxes
Taxes - 242 - 223 8.4 % - 855
NET PROFIT FOR THE PERIOD 669 705 - 5,0 % 2,911
CONSOLIDATED BALANCE SHEET, K
EURO
ASSETS 31.3.2007 31.3.2006 31.12.2006
FIXED ASSETS
Property, plant and equipment 512 315 399
Goodwill 11,190 8,621 11,190
Intangible assets 388 399 450
Deferred tax claim 49 14 49
Long-term receivables 8 24 12
Other financial assets 19 30 19
FIXED ASSETS TOTAL 12,166 9,404 12,120
CURRENT ASSETS
Accounts receivable and other 9,507 7,335 9,945
receivables
Financial assets 1,317 932 695
Liquid assets 3,181 2,321 2,689
CURRENT ASSETS TOTAL 14,004 10,588 13,330
TOTAL ASSETS 26,170 19,992 25,449
SHAREHOLDERS' EQUITY AND 31.3.2007 31.3.2006 31.12.2006
LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 297 292 297
Premium fund 4,176 3,746 4,176
Share issue 16 0 0
Fair value and other reserves 359 135 315
Retained earnings 4,086 3,180 3,180
Net profit for the period 669 705 2,911
SHAREHOLDERS' EQUITY TOTAL 9,604 8,058 10,879
LIABILITIES
Long-term liabilities 4,504 5,613 4,733
Current liabilities 12,062 6,320 9,837
TOTAL LIABILITIES 16,566 11,933 14,570
SHAREHOLDERS' EQUITY AND
LIABILITIES TOTAL 26,170 19,992 25,449
CHANGE IN Share Pre Share Fair Retai Total
EQUITY capi mium issue value ned
K EURO tal fund and ear
other nings
reser-
ves
Shareholders' 292 3,746 0 108 4,496 8,643
equity on 1
January 2006
Transfer to 27 27
reserves
Share issue
Dividend - 1,316 - 1,316
Profit for the
period 705 705
Shareholders' 292 3,746 0 135 3,884 8,058
equity
31.3.2006
Shareholders' 297 4,176 0 315 6,091 10,879
equity on 1
January 2007
Transfer to 44 44
reserves
Share issue 16 16
Dividend* - 2,004 - 2,004
Profit for the 669 669
period
Shareholders' 297 4,176 16 359 4,756 9,604
equity on 31
March 2007
* The dividend was paid on 4 April 2007.
SOURCES AND APPLICATION OF 1.1.- 1.1.- 1.1.-
FUNDS, K EURO 31.3.2007 31.3.2006 31.12.2006
Business operations
Profit before extraordinary 911 928 3,766
items
Total adjustments 225 165 593
Change in net working 807 - 318 - 785
capital
Interest income - 18 - 12 - 61
Intererst charges 70 61 235
Taxes - 144 - 62 - 1,049
Cash flow from business 1,851 763 2,700
operations
Investments
Investments in tangible and - 246 - 134 - 315
intangible assets
Change in financial assets - 622 1,061 1,298
Transfer income from fixed 0 0 248
assets
Acquisition of subsidiaries -231 - 3,973 - 5,186
Total cash flow from - 1,099 - 3,046 - 3,954
investments
Cash flow before financing 751 - 2,283 - 1,254
Financing
Dividend paid 0 - 1,316 - 1,316
Increase of long-term loans 0 3,000 3,000
Repayment of long-term loans - 230 - 2 - 658
Share issue 16 0 117
Interest income 18 12 61
Interest charges - 70 - 61 - 235
Short-term loan receivables 5 3 7
decrease
Financing total - 260 1,636 976
Change in liquid assets 491 - 647 - 279
Liquid assets at the 2,689 2,968 2,968
beginning of the period
Liquid assets at the end of 3 181 2 321 2 689
the period
CONSOLIDATED PROFIT AND LOSS ACCOUNT, QUARTERLY, K EURO
Q1/2007 Q4/2006 Q3/2006 Q2/2006 Q1/2006
1.1.07- 1.10.06- 1.7.06- 1.4.06- 1.1.06-
31.3.07 31.12.06 30.9.06 30.6.06 31.3.06
Turnover 13,224 12,141 8,862 9,166 9,015
Operating costs - 12,260 - 10,964 - 7,764 - 8,477 - 8,038
OPERATING PROFIT 963 1,178 1,098 689 977
Financial income and - 52 0 - 94 - 32 - 49
expenses
Profit before 911 1,178 1,004 656 928
provisions and taxes
Extraordinary income 0 0 0 0 0
and expenses
Profit before 911 1,178 1,004 656 928
provisions and taxes
Taxes - 242 - 179 - 310 - 144 - 223
PROFIT FOR THE 669 999 695 513 705
PERIOD
SEGMENT REPORTING 1.1.- 1.1.- 1.1.-
31.3.2007 31.3.2006 31.12.2006
Turnover by segment
Telecommunications 8,411 5,815 24,879
Systems Services 5,000 3,265 14,604
Eliminations - 187 - 65 -299
Turnover total 13,224 9,015 39,184
Operating profit by segment
Telecommunications 1,404 860 3,583
Systems Services 515 519 1,629
Administration - 956 -403 - 1,271
Total operating profit 963 977 3,941
Operating profit of 7,3 10,8 10,1
turnover %
- 52 - 49 - 174
Interest and financial
income
Profit before taxes 911 928 3,766
Taxes - 242 - 223 - 855
PROFIT FOR THE PERIOD 669 705 2,911
FINANCIAL RATIOS 1.1.- 1.1.- 1.1.-
31.3.2007 31.3.2006 31.12.2006
Earnings per share, EUR 0.09 0.09 0.38
Equity per share, EUR 1.26 1.08 1.43
Operating cash flow per share, 0.24 0.10 0.36
EUR
Return on investment, % 24.9 30.3 28.2
Return on equity, % 26.1 33.7 29.8
Operating profit/turnover, % 7.3 10.8 10.1
OTHER INFORMATION 1.1.- 1.1.- 1.1.-
31.3.2007 31.3.2006 31.12.2006
Average number of personnel 596 458 503
Personnel at the end of the 613 460 579
period
COMMITMENTS 31.3.2007 31.3.2006 31.12.2006
Commitments for group
Rental security 146 183 148
(bank deposits), k Euro
Amounts payable for leasing 1,277 703 1,398
contracts, k Euro
Non cancellable leasing 1,544 1,359 1,369
commitments, K Euro
© 2024 Nasdaq, Inc. All Rights Reserved |