2009-10-29 07:00:00 CET
2009-10-29 07:01:41 CET
REGULATED INFORMATION
Elektrobit Oyj - Interim report (Q1 and Q3)
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY TO SEPTEMBER 2009
STOCK EXCHANGE RELEASE
Free for publication on October 29, 2009 at 8.00 am. (CET+1)
EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY TO SEPTEMBER 2009
EB'S OPERATING CASH FLOW POSITIVE AND 3Q FINANCIAL PERFORMANCE
ACCORDING TO THE EXPECTATIONS
SUMMARY 3Q 2009
- Net sales amounted to EUR 33.5 million (EUR 34.5 million, 3Q
2008), representing a -2.7 per cent decrease year-on-year.
- Operating loss improved to EUR -0.8 million (EUR -12.9 million, 3Q
2008).
- Operating cash flow amounted to EUR 4.6 million (EUR -7.7 million,
3Q 2008). The net cash flow increased to EUR 1.8 million (EUR -7.6
million, 3Q 2008).
- Cash and other liquid assets totaled to EUR 62.2 million (EUR 67.2
million, 3Q 2008)
- Equity ratio remained at a high level of 71.1% (69.5%, 3Q 2008)
- Earnings per share were EUR -0.00 (EUR -0.11, 3Q 2008)
Decrease of -10.3 per cent in the net sales (EUR 37.4 million, 2Q
2009) is mainly due to the typical seasonality effect in R&D services
business as stated in the outlook given for the second half of 2009.
EB'S CEO JUKKA HARJU:"EB's net sales and consequently the operating result were at the
expected level and generated clearly positive cash flow, despite the
market environment prevailed challenging. However, the operating
result is by no means satisfactory and profitability improvement
maintains to be our most important short term target."
FINANCIAL PERFORMANCE DURING JANUARY - SEPTEMBER 2009
(Comparisons are given to January-September 2008, unless otherwise
indicated)
EB's net sales during January - September 2009 decreased -7.4 per
cent to EUR 113.7 million (EUR 122.8 million). Operating loss from
business operations amounted to EUR -0.3 million and the
non-recurring costs totaled to EUR -1.6 million, resulting to the
operating loss of EUR -1.9 million (EUR -34.2 million).
The Automotive Business Segment's net sales during January -
September 2009 amounted to EUR 44.7 million (EUR 44.6 million)
representing a slight growth of 0.3 per cent. The operating loss
reduced to EUR -4.0 million (EUR -9.8 million). The significant
improvement of operating result with flat turnover reflects the
profitability improvement measures taken.
The Wireless Business Segment's net sales during January - September
2009 amounted to EUR 68.6 million (EUR 77.9 million), representing a
decline of -11.9 per cent. Operating result from business operations
amounted to EUR 2.5 million and the non-recurring costs totaled to
EUR -1.2 million, resulting to the operating profit of EUR 1.3
million (EUR -23.6 million). The significant improvement of operating
result with lower turnover year-on-year was mainly due to the
execution of the earlier announced profitability improvement program.
The total R&D investments during the reporting period were EUR 10.5
million (EUR 30.5 million), equaling 9.2 per cent of the net sales
(24.8 per cent in 2008). The significant reduction of the R&D
investments was mostly due to the change of the business model (and
consequent exit from developing own products) in Mobile WiMAX in
October 2008 and exit from RFID technology business in February 2009.
CONSOLIDATED INCOME STATEMENT (MEUR) 1-9 2009 1-9 2008
9 months 9 months
NET SALES 113.7 122.8
OPERATING PROFIT (LOSS) -1.9 -34.2
Financial income and expenses -0.3 -1.4
RESULT BEFORE TAX -2.2 -35.6
RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS -3.1 -35.8
Profit after tax for the year from discontinued 0.3
operations 0.1
RESULT FOR THE PERIOD -2.8 -35.6
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -3.4 -35.1
Result for the period attributable to:
Equity holders of the parent -2.7 -35.6
Minority interest -0.0
Total comprehensive income for the period
attributable to:
Equity holder of the parent -3.4 -35.1
Minority interest -0.0
Earnings per share EUR continuing operations -0.02 -0.28
Earnings per share EUR discontinued operations 0.00 0.00
Earnings per share EUR continuing and discontinued
operations -0.02 -0.28
- Cash flow from Business Operations amounted to EUR 0.9 million
(EUR -24.1 million).
- Equity ratio was 71.1% (69.5%).
- Net gearing was -39.5% (-32.2%).
QUARTERLY FIGURES
The distribution of the Group's overall net sales and profit, MEUR:
+-------------------------------------------------------------------+
| | 3Q 09 | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 |
|---------------------------+-------+-------+-------+-------+-------|
| Net sales | 33.5 | 37.4 | 42.8 | 49.5 | 34.5 |
|---------------------------+-------+-------+-------+-------+-------|
| Operating profit (loss) | -0.8 | -1.1 | 0.0 | -8.5 | -12.9 |
|---------------------------+-------+-------+-------+-------+-------|
| Operating profit (loss) | -0.8 | -0.4 | 0.9 | -2.8 | -11.3 |
| without non-recurring | | | | | |
| costs | | | | | |
|---------------------------+-------+-------+-------+-------+-------|
| Result before taxes | -0.6 | -0.7 | -0.9 | -11.8 | -14.4 |
|---------------------------+-------+-------+-------+-------+-------|
| Result for the period | -0.5 | -1.6 | -1.1 | -14.0 | -14.6 |
+-------------------------------------------------------------------+
The distribution of the net sales by Business Segment, MEUR:
+-----------------------------------------------------------+
| | 3Q 09 | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 |
|-------------------+-------+-------+-------+-------+-------|
| Automotive | 14.8 | 13.5 | 16.4 | 18.7 | 15.9 |
|-------------------+-------+-------+-------+-------+-------|
| Wireless | 18.6 | 23.7 | 26.3 | 30.7 | 18.5 |
|-------------------+-------+-------+-------+-------+-------|
| Corporation total | 33.5 | 37.4 | 42.8 | 49.5 | 34.5 |
+-----------------------------------------------------------+
The distribution of the net sales by market area, MEUR and %:
+--------------------------------------------------+
| | 3Q 09 | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 |
|----------+-------+-------+-------+-------+-------|
| Asia | 1.8 | 2.5 | 4.4 | 3.1 | 0.9 |
| | 5.5% | 6.8% | 10.3% | 6.2% | 2.6% |
|----------+-------+-------+-------+-------+-------|
| Americas | 11.1 | 12.5 | 11.9 | 10.9 | 7.1 |
| | 33.1% | 33.5% | 27.7% | 22.0% | 20.7% |
|----------+-------+-------+-------+-------+-------|
| Europe | 20.6 | 22.3 | 26.6 | 35.5 | 26.4 |
| | 61.4% | 59.7% | 62.1% | 71.8% | 76.7% |
+--------------------------------------------------+
Net sales (external) and operating profit development by Business
Segments and Other businesses, MEUR:
+-----------------------------------------------------------------+
| | 3Q 09 | 2Q 09 | 1Q 09 | 4Q 08 | 3Q 08 |
|-------------------------+-------+-------+-------+-------+-------|
| Automotive | | | | | |
| Net sales | 14.8 | 13.5 | 16.4 | 18.7 | 15.9 |
| Operating profit (loss) | -0.9 | -2.5 | -0.7 | -2.3 | -4.1 |
|-------------------------+-------+-------+-------+-------+-------|
| Wireless | | | | | |
| Net sales | 18.6 | 23.7 | 26.3 | 30.7 | 18.5 |
| Operating profit (loss) | -0.1 | 0.9 | 0.5 | -4.9 | -8.1 |
|-------------------------+-------+-------+-------+-------+-------|
| Other businesses | | | | | |
| Net sales | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 |
| Operating profit (loss) | 0.2 | 0.4 | 0.2 | -1.3 | -0.7 |
|-------------------------+-------+-------+-------+-------+-------|
| Total | | | | | |
| Net sales | 33.5 | 37.4 | 42.8 | 49.5 | 34.5 |
| Operating profit (loss) | -0.8 | -1.1 | 0.0 | -8.5 | -12.9 |
+-----------------------------------------------------------------+
BUSINESS SEGMENTS' MAIN EVENTS DURING 3Q 2009
EB's reporting is based on the Automotive and Wireless Business
Segments.
AUTOMOTIVE
The Automotive Business Segment consists of in-car software products,
navigation software for after market devices (PND, personal
navigation devices) and R&D services for the automotive industry with
leading car manufacturers, car electronics suppliers (Tier 1) and
automotive chipset suppliers as customers. By combining its software
products and engineering services EB is creating unique, customized
solutions for its automotive customers.
During the third quarter of 2009, the net sales of the Automotive
Business Segment amounted to EUR 14.8 million (EUR 15.9 million, 3Q
2008), representing a year-on-year decline of -6.6 per cent. The
decline in net sales reflects the challenging automotive market
conditions in which customers constrained their R&D investments.
Despite of the slight decline in net sales, the operating result
improved significantly to EUR -0.9 million (EUR -4.1 million, 3Q
2008) due to the taken profitability improvement measures.
Automotive Business Segment continued the execution of its announced
strategy including investments into EB's automotive software products
and global solution services to its customers.
The joint venture between EB and AEV (Audi Electronics Venture GmbH)
named e.solutions GmbH started its operations in July. It
concentrates on the development of a software framework and control
system for in-vehicle infotainment systems.
In September EB and NEC Electronics announced their collaboration for
AUTOSAR solutions including availability of an AUTOSAR 3.0 compatible
software package with basic software and comprehensive tool chain for
various hardware platforms. This enables easy design of application
software without the need for new developments.
WIRELESS
The Wireless Business Segment comprises the following businesses:
- Wireless Solutions provides customized solutions and R&D services
for wireless industry and other industries utilizing wireless
technologies.
- Wireless Communications Tools provides test tools for measuring,
modeling and emulating radio channel environments.
During the third quarter of 2009, the net sales of the Wireless
Business Segment amounted to EUR 18.6 million (EUR 18.5 million, 3Q
2008), representing a slight increase of 0.2 per cent. The operating
loss was EUR -0.1 million (EUR -8.1 million, 3Q 2008). The
significant improvement of operating result with flat turnover
year-on-year was mainly due to the execution of the earlier announced
profitability improvement program.
EB continued to further develop its offering towards customized
solutions by integrating own and 3rd party technologies and providing
own R&D services. Even though the challenging economic situation
prevailed in the mobile communication R&D services market, Wireless
Solutions business managed to keep the volumes of R&D services at
expected level. The demand for satellite-terrestrial network device
solutions continued to be strong during the quarter.
The sales of wireless communications emulation and design tools
continued to be driven mainly by development of LTE systems and
devices.
In July EB announced that the EB-designed satellite-terrestrial
smartphone, used by TerreStar Networks, successfully completed a
first ever handset-to-handset VoIP call over satellite network,
highlighting EB's strength in device development.
In August EB announced it has joined the Symbian Foundation. EB holds
a seat on the Release Council, which coordinates the integration of
contributions to the Symbian source code into stable and timely
platform and tools releases.
In September the EB MID Reference Device was recognized as a finalist
at the annual 4G World Awards for Best Mobile Internet Device.
Further in September EB introduced multimedia improvements to its MID
reference design.
The earlier announced closing of the EB Turku site was finalized by
the end of September.
MARKET OUTLOOK
As a consequence of the general economic environment, both automotive
and wireless communication market growth is unlikely before the
global economic environment starts to improve.
The share of electronics and software in cars has grown significantly
during the past years and it is expected that the trend of increased
use of software in automotive continues to prevail in the market. The
majority of the innovation and differentiation in the automotive
industry is brought about by software and electronics. In order to
enable faster innovation, to improve quality and development
efficiency and to reduce complexity related to software, the use of
standard software solutions is expected to increase. The estimated
automotive software general market growth rate of some 15 per cent
(Frost & Sullivan) is negatively affected by the current downturn of
the automotive industry. According to Strategy Analytics the global
market for automotive electronic systems fell by 3 per cent in 2008
and is forecasted to fall by a further 15 per cent in 2009, due to
the global recession. However, the underlying growth of the
automotive software market is expected to continue past the crisis
and the cost pressures of the automotive industry are expected to
accelerate the need of productized, efficient software solutions EB
is offering. EB's net sales cumulating from the automotive industry
is currently driven by the development of new cars and platforms and
is not directly dependent on production volumes of the car industry.
While customers remain very cost conscious there are early signs that
the demand starts to slowly recover.
The global mobile infrastructure market is decreasing and the
consolidation of the industry is expected to continue. LTE standard
is gaining strength while the momentum of Mobile WiMAX standard has
been decreasing. Going forward, EB's business driven by LTE is
increasing while EB's future sales revenues are not materially
dependent on Mobile WiMAX technology. The global mobile phone market
is leveling off and it is expected to decrease in volume in
short-term. The value share is expected to move towards higher-end
due to the increased demand for new features and services. New open
software architectures and platforms are creating opportunities for
companies such as EB with strong integration capabilities.
The mobile satellite communication service industry is introducing
new data and mobile communication services with new operators being
formed and traditional ones upgrading their solutions and offerings.
Mastering of multi-radio technologies and end-to-end system
architectures covering both terminal and network technologies, has
gained importance in the complex wireless technology industry. The
demand for EB's satellite-terrestrial device solutions is expected to
continue. The satellite-terrestrial and Mobile Satellite Services
(MSS) market demand is expected to start moving from the current
reference design phase towards the launch of commercial products and
services. This can create new service and product related business
opportunities for companies such as EB.
The mobile communication R&D services market continues to be
challenging and the continuing price pressure drives increasing
off-shoring in the industry. However, attractive niches continue to
exist (OVUM). Because of the economical slowdown, companies will
review their R&D costs and project portfolios resulting in reduction
of the overall R&D expenditures and activities during the next couple
of years, resulting in less demand for external R&D services.
However, continuing OEMs need to reduce their fixed costs and
increase flexibility that can create new opportunities for partnering
for companies such as EB.
The overall wireless communications tools market was weak following
the current economic downturn. However, there is a need for advanced
development tools for 3GPP LTE technology and that is expected to
remain as a driver for the demand in the medium and long term. EB
provides world leading channel emulation tools for the development of
MIMO based 3GPP LTE and other advanced radio technologies.
RESEARCH AND DEVELOPMENT DURING 3Q 2009
EB continued to invest in R&D in the automotive software products and
tools and radio channel emulation products.
The total R&D investments during the third quarter of 2009 were EUR
3.5 million (EUR 8.9 million, 3Q 2008), equaling 10.5 per cent of the
net sales (25.7 % in 2008). The reduction was mostly due to the
change of the business model (and consequent exit from developing own
products) in Mobile WiMAX in October 2008 and exit from RFID
technology business in February 2009.
OUTLOOK FOR THE SECOND HALF OF 2009
The more general market outlook by the businesses is presented under
the Market Outlook section.
Improving the profitability further continues to be the main focus of
EB during the second half of 2009.
EB expects the net sales during the second half of 2009 to be lower
than during the first half of 2009 (EUR 80.2 million). The operating
result in the second half of 2009 is expected to be at the level of
or lower than the operating profit from business operations without
non-recurring items in the first half of 2009 (EUR 0.5 million).
As earlier announced in the Interim Report January - June 2009, the
third quarter of 2009 is estimated to be weaker than the latter part
of the half due to the holiday period and the nature of R&D services
business.
RISKS AND UNCERTAINTIES
EB has identified a number of business, market and finance related
factors that can affect the level of sales and profits. Those of the
greatest significance on a short term are those affecting the
utilization and chargeability levels and average hourly prices of R&D
services. On the ongoing financial period the global economic
slowdown may affect the demand for the EB's services, solutions and
products and provide pressure on e.g. volumes and pricing. It may
also increase the risk for credit losses. As the EB's customer base
consists mainly of companies operating in the fields of automotive
and telecommunications, the company is exposed to market changes in
these industries. EB believes that expanding the customer base will
reduce dependence on individual companies and that the company will
thereby be mainly affected by the general business climate in
automotive and telecommunication industries. However, some parts of
EB's business are more sensitive to customer dependency than others.
The more general market outlook by the businesses is presented under
the Market Outlook section.
EB's operative business risks are mainly related to following items:
uncertainties and short visibility on customers' product program
decisions, their make or buy decisions and on the other hand, their
decisions to continue, downsize or terminate current product
programs, ramping up and down project resources, timing and on the
other hand successful utilization of the most important technologies
and components, competitive situation and potential delays in the
markets, timely closing of customer and supplier contracts with
reasonable commercial terms, delays in R&D projects, activations
based on customer contracts, obsolescence of inventories and
technology risks in product development causing higher than planned
R&D costs. In addition there are typical industry warranty and
liability risks involved in selling EB's services, solutions and
products. Revenues expected to come from new products for existing
and new customers include normal timing risks.
More information on the risks and uncertainties affecting EB can be
found on the Company website at www.elektrobit.com
STATEMENT OF FINANCIAL POSITION AND FINANCING
The figures presented in the statement of financial position of
September 30, 2009, are compared with the statement of financial
position of December 31, 2008 (EUR 1,000).
9/2009 12/2008
Non-current assets 40,680 46,724
Current assets 120,673 133,797
Total assets 161,353 180,520
Share capital 12,941 12,941
Other equity 99,250 102,181
Minority interest 47
Total shareholders' equity 112,239 115,123
Non-current liabilities 16,188 19,690
Current liabilities 32,926 45,708
Total shareholders' equity and liabilities 161,353 180,520
Net cash flow from operations during the period under review:
+ net profit +/- adjustment of accrual basis items EUR +3,7 million
+ increase in net working capital EUR -1,6 million
+ interest, taxes and dividends EUR -1,2 million
= cash generated from operations EUR 0,9 million
- net cash used in investment activities EUR -2,8 million
- net cash used in financing EUR -4,6 million
= net change in cash and cash equivalents EUR -6,4 million
The amount of accounts and other receivables, booked in current
receivables, was EUR 55.6 million (EUR 61.9 million on December 31,
2008). Accounts and other payables, booked in interest-free current
liabilities, were EUR 27.7 million (EUR 38.7 million on December 31,
2008).
The amount of non-depreciated consolidation goodwill at the end of
the period under review was EUR 18.5 million (EUR 18.3 million on
December 31, 2008).
The amount of gross investments in the period under review was EUR
2.4 million, consisting of replacement investments. Net investments
for the reporting period totaled EUR 1.5 million. The total amount of
depreciation during the period under review was EUR 7.5 million,
including EUR 1.6 million of depreciation owing to business
acquisitions.
The amount of interest-bearing debt at the end of the reporting
period was EUR 17.8 million. The distribution of net financing
expenses on the income statement was as follows:
interest, dividend and other financial income EUR 0.7 million
interest expenses and other financial expenses EUR -0.7 million
foreign exchange gains and losses EUR -0.3 million
EB's equity ratio at the end of the period was 71.1 per cent (64.9
per cent at the end of 2008).
The figures from the period under review includes the statutory
reserves EUR 3.2 million.
EB follows a hedging strategy, the objective of which is to ensure
the margins of business operations in changing market circumstances
by minimizing the influence of exchange rates. In accordance with the
hedging strategy, the agreed customer commitments net cash flow of
the currency in question is hedged. The net cash flow is determined
on the basis of sales receivables, payables, the order book and the
budgeted net currency cash flow. The hedged foreign currency exposure
at the end of the review period was equivalent to EUR 10.5 million.
PERSONNEL
EB employed an average of 1610 people between January and September
2009. At the end of September, EB had 1556 employees (1735 at the end
of 2008). A significant part of EB's personnel are product
development engineers.
CHANGES IN COMPANY'S MANAGEMENT
EB appointed M.Sc (Eng.), M.Sc (Econ.) Jukka Harju as CEO of the
Company as of June 4, 2009. Along with the appointment Harju resigned
from the membership of the EB's Board of Directors and from the
Chairmanship of the Board's committee for Automotive Segment. Jorma
Halonen, member of EB's Board of Directors, was elected as the new
Chairman of the Automotive committee. In addition to Halonen, Seppo
Laine, Staffan Simberg and Erkki Veikkolainen continued to serve as
EB Board members and Juha Hulkko continued as the Chairman of the
Board.
CEO Pertti Korhonen resigned from EB as of June 3, 2009.
EB's Board of Directors and Corporate Executive Board can be found
from the Company's Internet pages at:
www.elektrobit.com/corporate_governance.
FLAGGING NOTIFICATIONS
There were no changes in ownership during the period under review
that would have caused flagging notifications which are obligations
for disclosure in accordance with Chapter 2, section 9 of the
Securities Market Act.
Oulu, October 29, 2009
EB, Elektrobit Corporation
The Board of Directors
Further Information:
Jukka Harju
CEO
Tel. +358 40 344 5501
Panu Miettinen
CFO
Tel. +358 40 344 5338
Distribution:
NASDAQ OMX Helsinki
Principal media
INVITATION TO PRESS CONFERENCE ON EB'S 3Q 2009 RESULT
EB, Elektrobit Corporation's Interim Report January - September 2009
will be published on Thursday, October 29, 2009 at 8.00 am (CET+1).
The release will be available at EB's website immediately after that.
EB will hold a conference call for media, analysts and institutional
investors on the same day at 12.00 am (CET+1). The presentation will
be shown simultaneously in the Internet through WebEx. The conference
will be held in English.
To join the conference call please dial +358 20 699 101. The access
code is 757344#
To follow the presentation online through WebEx, please go to
www.elektrobit.com/investors. In technical problems, please go to
www.elektrobit.com/webcast/instructions or call number +358 40 344
5148.
The recording of the conference call and the presentation will be
available after the conference on EB's website
www.elektrobit.com/investors.
October 22, 2009
EB, Elektrobit Corporation
Corporate Communications
EB, ELEKTROBIT CORPORATION, INTERIM REPORT JANUARY - SEPTEMBER 2009
(unaudited)
The Interim Report has been prepared in accordance with IAS 34
Interim Financial Reporting.
CONSOLIDATED STATEMENT OF 1-9/2009 1-9/2008 1-12/2008
COMPREHENSIVE INCOME (MEUR)
9 months 9 months 12 months
NET SALES 113.7 122.8 172.3
Other operating income 2.8 4.7 6.2
Change in work in progress and
finished goods -0.8 -1.5 -2.8
Work performed by the undertaking
for its own purpose
and capitalized 0.4 0.1 0.1
Raw materials -5.8 -11.4 -18.0
Personnel expenses -67.6 -76.3 -104.0
Depreciation -7.5 -12.6 -16.4
Other operating expenses -37.1 -60.0 -80.1
OPERATING PROFIT (LOSS) -1.9 -34.2 -42.7
Financial income and expenses -0.3 -1.4 -4.7
RESULT BEFORE TAXES -2.2 -35.6 -47.4
Income taxes -0.9 -0.1 -2.4
RESULT FOR THE PERIOD FROM
CONTINUING
OPERATIONS -3.1 -35.8 -49.8
Result after taxes for the period
from discontinued
Operations 0.3 0.1 0.3
RESULT FOR THE PERIOD -2.8 -35.6 -49.5
Other comprehensive income:
Exchange differences on
translating foreign operations -0.6 0.5 0.6
Other comprehensive income for the
period total -0.6 0.5 0.6
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD -3.4 -35.1 -48.9
Result for the period attributable
to
Equity holders of the parent -2.7 -35.6 -49.5
Minority interest 0.0
Total comprehensive income
attributable to
Equity holders of the parent -3.4 -35.1 -48.9
Minority interest 0.0
Earnings per share EUR continuing
operations
Basic earnings per share -0.02 -0.28 -0.38
Diluted earnings per share -0.02 -0.28 -0.38
Earnings per share EUR discontinued
operations
Basic earnings per share 0.00 0.00 0.00
Diluted earnings per share 0.00 0.00 0.00
Earnings per share EUR continuing
and discontinued
Operations
Basic earnings per share -0.02 -0.28 -0.38
Diluted earnings per share -0.02 -0.28 -0.38
Average number of shares, 1000 pcs 129 413 129 413 129 413
CONSOLIDATED STATEMENT OF FINANCIAL Sept. 30, Sept. 30, Dec. 31, 2008
POSITION (MEUR) 2009 2008
ASSETS
Non-current assets
Property, plant and equipment 12.2 17.4 16.2
Goodwill 18.5 18.2 18.3
Intangible assets 8.8 15.8 11.0
Other financial assets 0.3 0.3 0.4
Receivables 0.8 0.9 0.8
Deferred tax assets 0.0 2.6 0.1
Non-current assets total 40.7 55.3 46.7
Current assets
Inventories 2.6 5.8 3.3
Trade and other receivables 55.6 60.2 61.9
Financial assets at fair value
through profit or loss 0.3
Cash and short term deposits 62.2 67.2 68.6
Current assets total 120.7 133.2 133.8
TOTAL ASSETS 161.4 188.5 180.5
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent
Share capital 12.9 12.9 12.9
Share premium 64.6 64.6 64.6
Translation difference -0.4 0.1 0.2
Retained earnings 35.1 51.0 37.4
Minority interest 0.0
Total equity 112.2 128.6 115.1
Non-current liabilities
Deferred tax liabilities 2.2 3.2 2.6
Provisions 1.3 1.2 1.0
Interest-bearing liabilities 12.5 15.9 15.4
Other liabilities 0.1 0.6 0.7
Non-current liabilities total 16.2 20.8 19.7
Current liabilities
Trade and other payables 24.5 26.2 35.1
Financial liabilities at fair
value through profit or loss 1.1 0.1
Pension obligations 1.2 1.1 1.0
Provisions 1.9 0.7 2.5
Interest-bearing loans and
borrowings 5.2 9.9 7.0
Current liabilities total 32.9 39.1 45.7
Total liabilities 49.1 59.9 65.4
TOTAL EQUITY AND LIABILITIES 161.4 188.5 180.5
CONSOLIDATED STATEMENT OF CASH FLOWS 1-9/2009 1-9/2008 1-12/2008
(MEUR)
9 months 9 months 12 months
CASH FLOW FROM OPERATING ACTIVITIES
Result for the period -2.8 -35.6 -49.5
Adjustment of accrual basis items 6.6 15.9 27.0
Change in net working capital -1.6 -3.6 2.4
Interest paid on operating activities -1.8 -1.9 -7.3
Interest received from operating
activities 1.4 3.0 4.4
Other financial income and expenses, net
received 0.0 0.0 0.0
Income taxes paid -0.8 -2.0 -1.7
NET CASH FROM OPERATING ACTIVITIES 0.9 -24.1 -24.7
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of business unit, net of cash
acquired -0.9 -0.9
Disposal of business unit, net of cash
acquired -0.6 20.4 26.8
Purchase of property, plant and equipment -1.5 -1.2 -1.8
Purchase of intangible assets -0.9 -2.3 -2.6
Purchase of other investments 0.0 -0.5 -0.5
Sale of property, plant and equipment 0.1 0.2 0.2
Sale of intangible assets 0.0
Proceeds from sale of investments 0.1 10.5 10.6
NET CASH FROM INVESTING ACTIVITIES -2.8 26.1 31.8
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from borrowing 1.1 2.1 0.1
Repayment of borrowing -2.6 -1.6 -1.9
Payment of finance liabilities -3.0 -4.6 -6.0
Dividends paid -2.6 -2.6
NET CASH FROM FINANCING ACTIVITIES -4.6 -6.7 -10.5
NET CHANGE IN CASH AND CASH EQUIVALENTS -6.4 -4.7 -3.3
Cash and cash equivalents at beginning of
period 68.6 71.9 71.9
Cash and cash equivalents at end of
period 62.2 67.2 68.6
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (MEUR)
A = Share capital
B = Share premium
C = Retained earnings
D = Total equity
A B C D
Equity on January 1, 2008 12.9 64.6 88.1 165.7
Dividend distribution -2.6 -2.6
Share-related compensation 0.7 0.7
Total comprehensive income for the period -35.1 -35.1
Other items 0.0 0.0
Equity on September 30, 2008 12.9 64.6 51.1 128.6
Equity on January 1, 2009 12.9 64.6 37.6 115.1
Share-related compensation 0.2 0.2
Total comprehensive income for the period -3.4 -3.4
Other items 0.3 0.3
Equity on September 30, 2009 12.9 64.6 34.7 112.2
NOTES TO THE INTERIM REPORT
Accounting principles for the Interim Report:
The Interim Report has been prepared in accordance with IAS 34
Interim Financial Reporting. The same accounting policies and methods
of computation are followed in the interim report as compared with
annual financial statements.
The Group has adopted following standards:
IAS 1 (Revised) Presentation of Financial Statements. The revision
mainly addresses the presentation in the income statement and the
statement of changes in equity.
IFRS 8 Operating Segments. The new standard replaces IAS 14 Segment
Reporting. Under IFRS 8, the reporting is based on the management's
internal reporting system and measurement principles. The new
standard doesn't have any impact on the comparative information. From
January 1, 2009 the reporting segments have been the same, Automotive
and Wireless, as they are according to the IAS 14 standard. Items not
allocated to segments are included under Other items.
Explanatory comments about the seasonality or cyclicality of
reporting period operations:
The Company operates in business areas which are subject to seasonal
fluctuations.
The nature and amount of items affecting assets, liabilities, equity,
net income, or cash flows which are unusual because of their nature,
size or incidence:
The result of the reporting period comprises non-recurring
restructuring costs of EUR -1.6 million.
Dividends paid:
The General Meeting held on March 19, 2009 decided in accordance with
the proposal of the Board of Directors that no dividend shall be
distributed.
SEGMENT INFORMATION (MEUR)
OPERATING SEGMENTS 1-9/2009 1-9/2008 1-12/2008
9 months 9 months 12 months
Automotive
Net sales to external customers 44.7 44.6 63.3
Net sales to other segments 0.0 0.1 0.1
Net sales total 44.7 44.7 63.4
Operating profit (loss) -4.0 -9.8 -12.1
Wireless
Net sales to external customers 68.6 77.9 108.6
Net sales to other segments 0.2 0.1 0.1
Net sales total 68.7 78.0 108.6
Operating profit (loss) 1.3 -23.6 -28.5
OTHER ITEMS
Other items
Net sales to external customers 0.4 0.3 0.4
Operating profit (loss) 0.9 -0.8 -2.1
Eliminations
Net sales to other segments -0.2 -0.2 -0.2
Operating profit (loss) 0.0 0.0 0.0
Group total
Net sales to external customers 113.7 122.8 172.3
Operating profit (loss) -1.9 -34.2 -42.7
Net sales of geographical areas (MEUR) 1-9/2009 1-9/2008 1-12/2008
9 months 9 months 12 months
Net sales
Europe 69.5 79.4 114.9
Americas 35.5 38.4 49.2
Asia 8.8 5.1 8.1
Net sales total 113.7 122.8 172.3
Material events subsequent to the end of the interim period not
reflected in the financial statements for the interim period:
There are no such material events subsequent to the end of the
interim report period that have not been reflected in this report.
The effect of changes in the composition of the group structure
during the interim period:
On February 2, 2009 EB exited from RFID technology business by
selling 7iD Technologies GmbH to the acting management of the said
company in Austria. On June 22, 2009 EB and AEV (Audi Electronics
Venture GmbH) established a joint venture named e.solutions GmbH. EB
holds a 51% stake of the new company, and thus it will be recorded as
EB's subsidiary in the consolidated financial statement. AEV holds
the remaining 49% stake.
Related party transactions: 1-9/2009 1-9/2008 1-12/2008
Employee benefits for key management and
stock
option expenses total 1.8 2.1 2.7
CONSOLIDATED STATEMENT 7-9/ 4-6/ 1-3/ 10-12/ 7-9/
OF
COMPREHENSIVE INCOME 2009 2009 2009 2008 2008
BY QUARTER (MEUR) 3 months 3 months 3 months 3 months 3 months
NET SALES 33.5 37.4 42.8 49.5 34.5
Other operating income 0.9 1.3 0.6 1.5 2.6
Change in work in
progress and
finished goods 0.4 -0.9 -0.3 -1.2 -0.8
Work performed by the
undertaking
for its own purpose
and capitalized 0.0 0.3 0.1 0.0 -0.0
Raw materials -2.1 -1.5 -2.2 -6.6 -2.3
Personnel expenses -20.3 -22.7 -24.6 -27.8 -24.3
Depreciation -2.4 -2.4 -2.7 -3.8 -2.9
Other operating
expenses -10.8 -12.6 -13.7 -20.1 -19.7
OPERATING PROFIT
(LOSS) -0.8 -1.1 0.0 -8.5 -12.9
Financial income and
expenses 0.2 0.5 -0.9 -3.3 -1.6
RESULT BEFORE TAXES -0.6 -0.7 -0.9 -11.8 -14.4
Income taxes 0.1 -0.9 -0.2 -2.3 -0.1
RESULT FOR THE PERIOD
FROM
CONTINUING OPERATIONS -0.5 -1.6 -1.1 -14.0 -14.6
Result after taxes for
the period
from discontinued
operations 0.3 0.1 0.0
RESULT FOR THE PERIOD -0.1 -1.6 -1.1 -13.9 -14.6
Other comprehensive
income
for the period total -0.4 -0.5 0.3 0.1 0.8
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD -0.5 -2.1 -0.8 -13.8 -13.7
Result for the period
attributable to:
Equity holders of
the parent -0.1 -1.6 -1.1 -13.9 -14.6
Minority interest 0.0
Total comprehensive
income
for the period
attributable to:
Equity holders of
the parent -0.5 -2.1 -0.8 -13.8 -13.7
Minority interest 0.0
CONSOLIDATED STATEMENT Sept. 30, June 30, March 31, Dec. 31, Sept.
OF 30,
FINANCIAL POSITION 2009 2009 2009 2008 2008
(MEUR)
ASSETS
Non-current assets
Property, plant and
equipment 12.2 13.9 14.9 16.2 17.4
Goodwill 18.5 18.5 18.3 18.3 18.2
Intangible assets 8.8 9.2 10.0 11.0 15.8
Other financial
assets 0.3 0.4 0.4 0.4 0.3
Receivables 0.8 0.8 0.8 0.8 0.9
Deferred tax assets 0.0 0.1 2.6
Non-current assets
total 40.7 42.7 44.4 46.7 55.3
Current assets
Inventories 2.6 2.2 2.6 3.3 5.8
Trade and other
receivables 55.6 60.4 62.9 61.9 60.2
Financial assets at
fair value
through profit or
loss 0.3 0.2 0.2
Cash and short term
deposits 62.2 60.3 62.8 68.6 67.2
Current assets total 120.7 123.2 128.5 133.8 133.2
TOTAL ASSETS 161.4 165.9 172.9 180.5 188.5
EQUITY AND LIABILITIES
Equity attributable to
equity holders
of the parent
Share capital 12.9 12.9 12.9 12.9 12.9
Share premium 64.6 64.6 64.6 64.6 64.6
Translation
difference -0.4 -0.0 0.5 0.2 0.1
Retained earnings 35.1 35.2 36.8 37.4 51.0
Minority interest 0.0
Total equity 112.2 112.7 114.8 115.1 128.6
Non-current
liabilities
Deferred tax
liabilities 2.2 2.3 2.5 2.6 3.2
Provisions 1.3 1.7 0.8 1.0 1.2
Interest-bearing
liabilities 12.5 13.6 14.2 15.4 15.9
Other liabilities 0.1 0.1 0.2 0.7 0.6
Non-current
liabilities total 16.2 17.6 17.7 19.7 20.8
Current liabilities
Trade and other
payables 24.5 26.3 30.8 35.1 26.2
Financial
liabilities at fair
value
through profit or
loss 0.1 1.1
Pension obligations 1.2 1.2 1.2 1.0 1.1
Provisions 1.9 1.9 2.3 2.5 0.7
Interest-bearing
loans and
Borrowings
(non-current) 5.2 6.3 6.2 7.0 9.9
Current liabilities
total 32.9 35.7 40.4 45.7 39.1
Total liabilities 49.1 53.3 58.1 65.4 59.9
TOTAL EQUITY AND
LIABILITIES 161.4 165.9 172.9 180.5 188.5
CONSOLIDATED STATEMENT 7-9/ 4-6/ 1-3/ 10-12/ 7-9/
OF CASH FLOWS BY QUARTER 2009 2009 2009 2008 2008
3 months 3 months 3 months 3 months 3 months
Net cash from
operating activities 4.6 -1.0 -2.7 -0.5 -7.7
Net cash from
investing activities -0.7 -0.7 -1.4 5.7 0.5
Net cash from
financing activities -2.1 -0.7 -1.7 -3.8 -0.4
Net change in cash and
cash
equivalents 1.8 -2.5 -5.8 1.4 -7.6
FINANCIAL PERFORMANCE RELATED RATIOS 1-9/2009 1-9/2008 1-12/2008
9 months 9 months 12 months
STATEMENT OF COMPREHENSIVE INCOME
(MEUR)
Net sales 113.7 122.8 172.3
Operating profit (loss) -1.9 -34.2 -42.7
Operating profit (loss), % of net
sales -1.7 -27.9 -24.8
Result before taxes -2.2 -35.6 -47.4
Result before taxes, % of net sales -1.9 -29.0 -27.5
Result for the period -3.1 -35.8 -49.8
PROFITABILITY AND OTHER KEY FIGURES
Interest-bearing net liabilities,
(MEUR) -44.4 -41.4 -46.2
Net gearing, -% -39.5 -32.2 -40.2
Equity ratio, % 71.1 69.5 64.9
Gross investments, (MEUR) 2.4 8.5 9.8
Average personnel during the period 1610 1772 1768
Personnel at the period end 1556 1780 1735
AMOUNT OF SHARE ISSUE ADJUSTMENT Sept. 30, Sept. 30, Dec. 31,
(1,000 pcs) 2009 2008 2008
At the end of period 129 413 129 413 129 413
Average for the period 129 413 129 413 129 413
Average for the period diluted with
stock options 129 413 129 413 129 413
STOCK-RELATED FINANCIAL RATIOS (EUR) 1-9/2009 1-9/2008 1-12/2008
9 months 9 months 12 months
Basic earnings per share -0.02 -0.28 -0.38
Diluted earnings per share -0.02 -0.28 -0.38
Equity *) per share 0.87 0.99 0.89
*) Equity attributable to equity
holders of the parent
MARKET VALUES OF SHARES (EUR) 1-9/2009 1-9/2008 1-12/2008
Highest 0.80 1.79 1.79
Lowest 0.33 0.63 0.29
Average 0.52 1.34 0.82
At the end of period 0.75 0.70 0.33
Market value of the stock, (MEUR) 97.1 90.6 42.7
Trading value of shares, (MEUR) 7.0 7.0 9.6
Number of shares traded, (1,000 pcs) 13 360 5 230 11 770
Related to average number of shares % 10.3 4.0 9.1
SECURITIES AND CONTINGENT LIABILITIES Sept. 30, Sept. 30, Dec. 31,
(MEUR) 2009 2008 2008
AGAINST OWN LIABILITIES
Floating charges 3.3 3.1 3.1
Mortgages
Pledges 0.9 2.0 1.1
Guarantees 2.8 4.1 4.1
Mortgages are pledged for liabilities
totaled 8.8 12.1 9.9
OTHER DIRECT AND CONTINGENT LIABILITIES
Rental liabilities
Falling due in the next year 3.6 4.4 4.2
Falling due after one year 4.4 4.9 5.1
NOMINAL VALUE OF CURRENCY DERIVATIVES Sept. 30, Sept. 30, Dec. 31,
(MEUR) 2009 2008 2008
Foreign exchange forward contracts
Market value 0.1 -1.1 -0.1
Nominal value 2.0 34.9 11.9
Purchased currency options
Market value 0.4
Nominal value 8.5
Sold currency options
Market value -0.1
Nominal value 17.0
© 2024 Nasdaq, Inc. All Rights Reserved |