2012-10-10 16:16:14 CEST
2012-10-10 16:16:42 CEST
REGULATED INFORMATION
BasWare - Interim report (Q1 and Q3)
CORRECTION: Basware : Basware Interim Report January 1-September 30, 2012 (IFRS)
This is a correction of the announcement from 09:00 10.10.2012 EEST. Reason for
the correction:
Page 22 table Operating profit, rows Rest of Europe 1-9/2012 and Operating
profit between areas 1-9/2012 were not correct in the report. The correction
does not have an impact on Group figures or key indicators. The corrected table
is below:
+------------------------------------------------------------------------------+
|Operating profit (EUR 7-9/ 7-9/ Change, 1-9/ 1-9/ 1-12/|
|thousand) 2012 2011 % 2012 2011 Change, % 2011|
+------------------------------------------------------------------------------+
|Finland 1 499 1 632 -8.1 3 812 5 165 -26.2 6 812|
| |
|Scandinavia 95 990 -90.4 559 3 185 -82.5 4 533|
| |
|Rest of Europe 549 424 29.5 1 295 1 230 5.3 1 629|
| |
|Other 262 408 -35.8 278 489 -43.1 963|
| |
|Operating profit between |
|areas -144 -415 -65.4 -563 -1 242 -54.6 -1 657|
+------------------------------------------------------------------------------+
|Group total 2 261 3 038 -25.6 5 381 8 826 -39.0 12 280|
+------------------------------------------------------------------------------+
Basware Corporation, stock exchange release, October 10, 2012 at 09:00
BASWARE INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2012 (IFRS)
SUMMARY
January-September 2012: Growth in Q3 net sales through service business
* Net sales EUR 83 272 thousand (EUR 77 523 thousand) - growth 7.4 percent
* Operating profit EUR 5 381 thousand (EUR 8 826 thousand) - decrease of 39.0
percent
* Operating profit 6.5 percent of net sales (11.4%)
* Growth of Automation Services (SaaS and e-Invoicing) 46.6 percent
* Recurring revenue (including Maintenance and Automation Services) 56.1
percent (49.7%) of net sales
* Cash flow from operating activities EUR 7 334 thousand (EUR 15 941 thousand)
* Earnings per share (diluted) EUR 0.31 (EUR 0.53) - decrease of 42.7 percent
July-September Q3/2012:
* Net sales EUR 27 119 thousand (EUR 24 185 thousand) - growth 12.1 percent
* Operating profit EUR 2 261 thousand (EUR 3 038 thousand) - decrease 25.6
percent
* Operating profit 8.3 percent of net sales (12.6%)
* Growth of Automation Services (SaaS and e-invoicing) 47.6 percent
* The estimated revenue to be recognized for current Automation Services
agreements that are in production as well as for new, signed agreements in
the next twelve months is EUR 25.2 million
* Recurring revenue (including Maintenance and Automation Services) 58.1
percent (53.5%) of net sales
* Earnings per share (diluted) EUR 0.12 (EUR 0.18) - decrease of 35.0 percent
Basware expects its net sales for 2012 to grow from the previous year, and
operating profit (EBIT) is expected to be EUR 8-11 million. The company
estimates that its net sales for the last quarter of the year will grow compared
to the previous year.
Previously, the company expected its net sales for 2012 to grow from the
previous year, and operating profit (EBIT) to be EUR 8-13 million. Previously,
the company estimated also that its net sales for the latter half of the year
will see a stronger growth than for the first half of the year.
The interim report is unaudited.
GROUP KEY FIGURES
7-9/ 7-9/ Change, 1-9/ 1-9/ Change, 1-12/
EUR thousand 2012 2011 % 2012 2011 % 2011
-------------------------------------------------------------------------------
Net sales 27 119 24 185 12.1% 83 272 77 523 7.4% 107 750
EBITDA 4 070 4 308 -5.5% 10 051 12 613 -20.3% 17 284
Operating profit before
IFRS3 amortization 2 793 3 542 -21.1% 7 095 10 333 -31.3% 14 290
Operating profit 2 261 3 038 -25.6% 5 381 8 826 -39.0% 12 280
% of net sales 8.3% 12.6% 6.5% 11.4% 11.4%
Profit before tax 2 300 3 024 -24.0% 5 514 8 858 -37.8% 12 332
Profit for the period 1 493 2 301 -35.1% 3 918 6 731 -41.8% 9 671
Return on equity, % 6.1% 9.7% 5.3% 11.0% 11.6%
Return on investment, % 9.6% 13.0% 7.6% 14.5% 14.9%
Liquid assets *) 27 739 44 988 -38.3% 27 739 44 988 -38.3% 42 977
Gearing, % -27.5% -45.9% -27.5% -45.9% -42.3%
Equity ratio, % 80.2% 79.7% 80.2% 79.7% 81.9%
Earnings per share, EUR 0.12 0.18 -35.0% 0.31 0.53 -42.8% 0.76
Earnings per share
(diluted), EUR 0.12 0.18 -35.0% 0.31 0.53 -42.7% 0.76
Parent company's
shareholders'
equity per share, EUR 7.71 7.52 2.6% 7.71 7.52 2.6% 7.76
*) Includes cash, cash equivalents and financial assets at fair value through
profit or loss
Reporting
Basware Corporation reports one operating segment: Purchase to Pay, P2P.
Basware reports income for products and services as follows: License sales,
Professional Services, Maintenance, and Automation Services. License sales
consist of Purchase to Pay product family together with payment, financial
planning and reporting solutions sold only in Finland. Automation Services
include e-Invoicing, scanning services, printing services, catalogue management,
purchase message exchange, activation services and Software as a Service (SaaS)
services.
Basware reports the estimated revenue to be recognized for current Automation
Services agreements that are in production as well as for new, signed agreements
in the next twelve months. Automation Services agreements typically expand
several years or are valid until further notice.
As geographic information Basware reports geographical areas Finland,
Scandinavia, rest of Europe and Other. In the geographical information, net
sales are split by the customer's location. Net sales and operating profit are
also reported by the location of the assets. In annual financial statements, the
geographical information of non-current assets is reported by the location of
the assets.
CEO Esa Tihilä comments in conjunction with the Interim Report:"The company's transition process from a software company to a service company
has proceeded as planned during the third quarter as well.
The targeted double-digit growth in net sales was realized in the third quarter:
our net sales increased by 12.1% to EUR 27.1 million, with our operating profit
amounting to EUR 2.3 million. Since the beginning of the year, we have achieved
net sales of EUR 83.3 million, up 7.4%, with our operating profit amounting to
EUR 5.4 million.
Strong growth in Automation Services continued, while the decrease in license
sales slowed down considerably during the third quarter. The company's
operational performance in the third quarter met our expectations as the
transition process from license sales-based operations to the service business
is still underway and the planned investments required for the company's growth
and transition can be seen in the company's financial performance.
Automation Services (SaaS and e-invoicing services) growth amounted to 47.6%,
accounting for 21.2% of net sales. Recurring revenue (Maintenance and Automation
Services) again accounted for an increasing share of net sales compared to the
previous year, totaling 58.1% of net sales. The demand for SaaS services is
increasing at the expense of license demand. We have secured new multi-year SaaS
and e-invoicing service agreements with a total value of EUR 23.1 million during
the year. The growth in services is increasingly generated in our international
markets.
The transaction volume has continued to increase in line with our objectives,
and we have connected an even higher number of suppliers and buyers in our open
network with new products and delivery methods. The transaction volume processed
by Automation Services amounted to 8.5 million during the quarter, up 64.3%.
Alusta, the unified cloud-based platform for Purchase-to-Pay that was launched
at the beginning of the year, has been received well by our customers. By the
end of the third quarter, we have sold the Alusta solution to several new and
existing customers.
At the beginning of September, we published our updated strategy until 2015,
emphasizing our key strategic aim of accelerated global growth. According to the
updated strategy, our key objectives include accelerated growth in the
transaction volume, strengthening our market position in selected key markets,
more accurate segmenting of our services and products to companies of all sizes,
with particular attention on small and medium-sized enterprises, developing
customer loyalty, and improving the company's profitability.
We have strongly invested in committing our personnel to implement the updated
strategy. In addition, the customer service models for our existing customers
have been developed, the service portfolio has been extended, and we have
prepared a plan for transition to Alusta and presented it to our customers. The
development of profitability is particularly based on the adoption of a
replicable sales and delivery model and developing a global efficient service
production network.
The company intends to continue to support organic growth in our key markets
through acquisitions as well. The most recent example is our agreement signed on
October 5, 2012, to acquire the network and e-invoicing business of Certipost, a
bpost company and the leading e-Invoice operator in the Benelux. With the
acquisition, Basware will become the market leader in e-Invoicing in the Nordic
countries, Germany, and the Benelux market.
Our performance during the third quarter gives a strong foundation for reaching
the targets of the entire year. We expect the need for recurring services to
continue in our customer base regardless of economic cycles and the global
challenging economic situation."
Market outlook and operating environment
According to the most recent market estimates the software market is expected to
grow 6.0 percent globally (previous estimate 6.2%) and 7.4 percent in the U.S.
(previous estimate 8.0%). The entire IT services market is expected to grow by
4.7 percent globally (forecast unchanged) and by 7.3 percent in the U.S.
(forecast unchanged) in 2012. According to research companies, the software
market is expected to grow globally in 2013 at a rate of 7.0 percent, IT
services by 5.6% and the IT market as a whole by 6.7 percent.
The number of acquisitions and partnerships has increased in the market.
Companies active in the market are trying to strengthen their supplier networks
and expand geographically. Consolidation is expected to continue in the business
environment, with the role of services growing in companies' portfolios. Basware
continues active analyzing of acquisition targets especially in European e-
Invoicing market according to Basware's strategy.
The launch of Basware's next generation Alusta software suite during the first
quarter of 2012 has improved the competitiveness of Basware's solutions and
services further. Through the acquisition of German e-Invoicing operator in
January 2012 we gained innovative technology, which will improve the
competitiveness of the company. Also Automation Services will have a positive
impact on the competitiveness, improving the predictability and transparency of
the company's net sales and profitability in the long term.
By the end of 2015, Basware aims to become the largest business commerce network
for buyers and suppliers. E-Invoicing and the supporting services are targeted
to connect suppliers and buyers also outside of Basware's existing software
customer base, leading to a higher potential. The penetration rate of e-
Invoicing is low, between 5-30 percent depending on the country, which creates
a solid foundation for the future growth of Basware Automation Services.
Offshoring operations hold a significant role in the company's strategy. R&D and
Automation Services operations at Basware's Indian office have already succeeded
in gaining a significant role. The company has developed its offshoring
operations in order to improve profitability also with regard to new service
business operations and internal support functions.
Espoo, Finland, October 10, 2012
BASWARE CORPORATION
Board of Directors
For more information, please contact:
CEO Esa Tihilä, Basware Corporation
Tel. +358 40 480 7098
Interim Report briefing & conference call
Basware arranges a briefing on the Interim Report for the press and analysts on
October 10, 2012 at 11:00 a.m. in Hotel Kämp (Kluuvikatu 2, 2nd floor),
Helsinki, Finland. During this briefing CEO Esa Tihilä and CFO Mika Harjuaho
will comment on the events and financial performance of the quarter. More
information and registration: Sirje Ahvenlampi, Manager, Investor Relations,
tel. +358 (0)50 557 3822, sirje.ahvenlampi (at) basware.com.
A conference call for analysts who are not able to attend the briefing will take
place on October 10, 2012 at 3 p.m. EET. More information about the
preregistration and details how to join is are available at the company's
Investor pages: http://www.basware.com/about-us/investors.
Distribution:
NASDAQ OMX Helsinki Ltd
Key media
www.basware.com
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