2011-10-19 08:00:00 CEST
2011-10-19 08:00:09 CEST
REGULATED INFORMATION
Tectia Oyj - Interim report (Q1 and Q3)
TECTIA INTERIM REPORT, JANUARY 1 - SEPTEMBER 30, 2011
Helsinki, Finland, 2011-10-19 08:00 CEST (GLOBE NEWSWIRE) -- TECTIA CORPORATION
INTERIM REPORT OCTOBER 19, 2011 AT 9:00 A.M
TECTIA INTERIM REPORT, JANUARY 1 - SEPTEMBER 30, 2011
SUMMARY
July-September
- Net sales totaled EUR 1.9 million, down by -9.5 % percent year on year (EUR
2.1 million in 7-9/2010).
- Operating loss amounted to EUR -0.9 million (an operating loss of EUR -0.2
million in 7-9/2010) including EUR -0.7 million of non-recurring costs (EUR 0.0
million). Loss EUR -1.0 million (loss EUR -0.1 million)
- Earnings per share EUR -0.03 (EUR 0.00).
January-September
- Net sales totaled EUR 6.1 million, down by -7.7 % percent year on year (EUR
6.6 million in 1-9/2010).
- Operating loss amounted to EUR -2.0 million (an operating loss of EUR -0.3
million in 1-9/2010) including EUR -1.1 of non-recurring costs (EUR 0.0
million). Loss EUR -2.1 million (profit EUR 0.0 million)
- Earnings per share EUR -0.07 (EUR 0.00).
The company's financial position weakened mainly because of January-September
non-recurring costs, with equity ratio 38.6 % (70.6%) and liquid assets at the
end of the period EUR 3.0 million (EUR 4.5 million).
KEY FIGURES
--------------------------------------------------------------------------------
7-9/ 7-9/ 1-9/ 1-9/ Change % 1-12/
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales (MEUR) 1.9 2.1 6.1 6.6 -7.7 9.1
--------------------------------------------------------------------------------
Operating profit/loss (MEUR) -0.9 -0.2 -2.0 -0.3 686.0 -0.7
--------------------------------------------------------------------------------
% of net sales -48.4 -7.6 -33.3 -3.9 -7.9
--------------------------------------------------------------------------------
Profit/loss before taxes (MEUR) -1.0 -0.1 -2.1 0.0 -10 567.1 -0.5
--------------------------------------------------------------------------------
Profit/loss (MEUR) -1.0 -0.1 -2.1 0.0 -12 177.1 -0.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Return on equity, % -130.8 0.7 -12.8
--------------------------------------------------------------------------------
Return on investment, % -436.4 1.2 -10.5
--------------------------------------------------------------------------------
Liquid assets 3.0 4.5 -33.2 4.0
--------------------------------------------------------------------------------
Gearing (%) -251.9 -162.1 -121.0
--------------------------------------------------------------------------------
Equity ratio (%) 38.6 70.6 69.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share (EUR) -0.03 0.00 -0.07 0.00 -11 920.9 -0.02
--------------------------------------------------------------------------------
Shareholders' equity per share 0.04 0.09 0.04 0.09 -58.0 0.10
(EUR)
--------------------------------------------------------------------------------
CEO's BUSINESS REVIEW
I set about as the company´s CEO after a several years long break. I created
the original SSH software in 1995 and was the company´s founder, CEO and/or
Chairman of the Board until 2000, when the company had grown to 70 persons
(being profitable and financed by cash flow from operations until 1999). I also
acted as CEO during a period of company restructuring and refocusing in 2002.
As I once more take leadership of the company, it has made losses for four
consecutive quarters. On the other hand, it still has a strong cash balance, a
sizeable relatively stable maintenance income stream, the SSH brand which is
widely known in the industry, competent personnel, interesting patents as well
as several products and product concepts that have growth potential. I plan to
lead the company as a mid-stage entrepreneurial growth company, and day by day
my enthusiasm and belief in the company´s potential has grown.
I plan to focus Tectia around products related to the SSH software and protocol
and services related to them. The company has about 3000 customers, including
e.g. more than half of the largest banks in US, the largest retail chain in the
world, numerous government agencies around the world, and health care and
energy companies.
In this environment and with this focus Tectia can effectively utilize the
credibility of the SSH name, the ssh trademark, the ssh.com domain name, and
its position as the inventor and original developer of the SSH protocol. My
plan is that the company will offer a broader suite of services around the SSH
protocol and technology (possibly also for the open source OpenSSH variant) and
develop its offering in the management of SSH solutions and in management,
control, and auditing of privileged users. Furthermore, the company offers
solutions for easy SMS-based user authentication for SSH or VPN remote access,
Internet banking, and other Internet based services.
I believe we are well positioned to emerge as the leading provider of SSH-based
solutions and related services in the world, and that the market potential
related to them is substantial. It is still possible to develop market changing
concepts in SSH-based file transfer and remote administration solutions,
especially for large enterprises.
Tatu Ylönen
CEO
REPORTING
This interim report follows IFRS accounting standards and assessments. This
report is prepared according to IFRS standards and interpretations which are
valid 31st December 2010. Interim report follows same principles and standards
as the previous financial statement release. This interim report is prepared
according to IAS 34. The figures are non-audited.
FUTURE OUTLOOK
For the fiscal year 2011, Tectia estimates its net sales to decrease from 2010.
Full year 2011 net result is expected to be negative.
Earlier for the fiscal year 2011, Tectia estimated its net sales to grow from
2010 and expected the net result to be negative.
The company´s net sales activity in North America did not progress as expected
by the end of September. Furthermore approvals of investment decisions have
been delayed especially by customers in the North American market. Also, net
sales of the Mobile Authentication business were behind previous estimates due
to delay in the business ramp up. It is assessed that these factors combined
will hinder the development of net sales during the last quarter and the whole
year 2011 compared to previous estimates. The globally poor economic visibility
complicates the estimation of the last quarter.
Global audit firm valuation experts have provided the company with a valuation
estimate for some of its patents and patent applications, according to which
the fair market value of these would be approximately EUR 1 million. These
patents were developed for the company´s IPSec-technology related products and
are not used in current products. New applications have emerged for
technologies described and claimed in the patents, e.g. VoIP (Voice-over-IP)
and 3GPP LTE (Long Term Extension, or 4G) networks and smartphones. It is
possible that the most important of the patent applications will be granted and
that they will be essential for some of the standards in the area. It is also
possible that the actual future sale price or other income from them would be
substantially higher than the estimated value. The potential income will,
however, most likely not be realized for several quarters and no asset from
these patents has been booked in the balance sheet.
NET SALES
Consolidated net sales for July-September totaled EUR 1.9 million (EUR 2.1
million), down by -9.5 %, year on year.
Consolidated net sales for January-June totaled EUR 6.1 million (EUR 6.6
million), down by -7.7 %, year on year.
The Americas, the Europe, Middle East and Africa market area and the Asia
Pacific region accounted for 60.5 percent (68.6 percent), 25.6 percent (22.2
percent) and 13.9 percent (9.2 percent) of reported net sales, respectively.
TECTIA NET SALES
----------------------------------------------------------------
EUR Million 7-9/ 7-9/ 1-9/ 1-9/ 2010 Change % 1-12/
2011 2010 2011 2010
----------------------------------------------------------------
----------------------------------------------------------------
BY SEGMENT
----------------------------------------------------------------
AMERICAS 1.2 1.4 3.7 4.5 -18.5 6.0
----------------------------------------------------------------
APAC 0.3 0.2 0.8 0.6 41.3 1.0
----------------------------------------------------------------
EMEA 0.5 0.4 1.6 1.5 6.3 2.1
----------------------------------------------------------------
Tectia Group Total 1.9 2.1 6.1 6.6 -7.5 9.1
----------------------------------------------------------------
----------------------------------------------------------------
BY OPERATION
----------------------------------------------------------------
License sales 0.6 0.7 2.0 2.6 -19.4 3.7
----------------------------------------------------------------
Maintenance 1.3 1.4 4.1 4.0 0.0 5.4
----------------------------------------------------------------
Total 1.9 2.1 6.1 6.6 -7.9 9.1
----------------------------------------------------------------
The majority of Tectia's invoicing is U.S. dollar based. During the report
period, the U.S. dollar's average exchange rate to euro weakened on average
-7.0 percent compared to the same period a year ago. With comparable exchange
rates 2011 net sales decrease would have been -3.9 percent compared 2010
corresponding period.
CHANGES IN OPERATIONS STRUCTURE
In order to increase speed of strategy execution, Tectia established during the
first quarter of the fiscal year two separate business units and structured its
global sales, presales and customer support accordingly. The business units
were until the end of the reporting period Managed Security business and Mobile
Authentication business. Due to changes in the company focus, the two business
units will be merged during the last quarter of the fiscal year. The merger of
the two separate business units does not have an impact on segment reporting.
RESULTS AND EXPENSES
Operating loss for July-September amounted to EUR -0.9 million (EUR -0.2
million), with net loss totaling EUR -1.0 million (EUR -0.1 million).
Operating loss for January-September amounted to EUR -2.0 million (EUR -0.3
million), with loss totaling EUR -2.1 million (EUR 0.0 million).
Non-recurring items during January-September EUR -1.1 million were mainly due
to organizational change. EUR -0.7 million of the costs were related to
personnel reductions in Finland. Employer/employee negotiations concerning
personnel in Finland concluded 27.9.2011. In addition EUR -0.4 million of
non-recurring costs relate to personnel reductions both in US and Germany as
well as to the closing of the German sales office. In addition to the
non-recurring costs EUR -0.1 million were booked as a credit loss reservation.
Sales, marketing and customer support expenses for the July-September reporting
period amounted to EUR -1.5 million (EUR -1.3 million), while research and
development expenses totaled EUR -0.8 million (EUR -0.6 million) and
administrative expenses EUR -0.6 million (EUR -0.4 million).
Sales, marketing and customer support expenses for the January-June reporting
period amounted EUR -4.3 million (EUR -3.6 million), while research and
development expenses totaled EUR -2.1 million (EUR -1.7 million) and
administrative expenses EUR -1.6 million (EUR -1.6 million).
BALANCE SHEET AND FINANCIAL POSITION
The financial position of Tectia remained at a healthy level during the
reporting period. The consolidated balance sheet total on September 30, 2011
stood at EUR 5.9 million (September 30, 2010 EUR 6.9 million; December 31, 2010
EUR 8.3 million), of which liquid assets accounted for EUR 3.0 million
(September 30, 2010 EUR 4.5 million; December 31, 2010 EUR 4.0 million), or
50.8 percent of the balance sheet total. On September 30, 2011, gearing, or the
ratio of net liabilities to shareholders' equity, was -251.9 percent (September
30, 2010 -162.1%; December 31, 2010 -121,0%) and the equity ratio stood at 38.6
percent (September 30, 2010 70.6; December 31, 2010 69.1).
The reported gross capital expenditure for the period totalled EUR 0.4 million
(EUR 0.0 million). The reported financial income and expenses consisted mainly
of interest on deposits and exchange rate gains or losses. Financial income and
expenses totalled EUR -0.1 million (EUR 0.3 million).
During January-September, Tectia reported a negative cash flow of EUR -0.6
million (EUR -0,4 million) from business operations, and investments showed a
negative cash flow of EUR -0.4 million (EUR 0.0 million). Cash flow from
financing totaled EUR 2.5 million (EUR -1.5 million). Total cash flow from
operations, investments and financing was positive EUR 1.5 million (EUR -1.9
million) during the period.
RESEARCH AND DEVELOPMENT
Research and development expenses for July-September totaled EUR -0.8 million
(EUR -0.6 million), the equivalent of 42.0 percent of net sales (27.8 percent).
During July-September, the company has capitalized R&D costs EUR 0.1 million.
Research and development expenses for January-September totaled EUR -2.1
million (EUR -1.7 million), the equivalent of 34.3 percent of net sales (25.2
percent). During January-September, the company has capitalized R&D costs EUR
0.3 million.
Company has continued R&D capitalizations during the reporting period related
to Mobile Authentication business according to IAS 38 standard. Company has
started R&D capitalizations during the reporting period related to Managed
Security business according to IAS 38 standard. In reporting period R&D cost
capitalizations amount to EUR 0.3 million.
HUMAN RESOURCES AND ORGANIZATION
At the end of September, the Group had 53 employees on its payroll, down by 15
persons from the previous year, a decrease of -22.1 percent.
At the end of the period, 30 percent of the employees worked in sales and
marketing, 51 percent in R&D, and 19 percent in corporate administration.
BOARD AND AUDITORS
At the Annual General Meeting (AGM) on March 3, 2011 re-elected Juhani Harvela,
Pyry Lautsuo, Juho Lipsanen, Tiia Tuovinen and Tatu Ylönen as directors of the
company's Board of Directors. Juho Lipsanen was re-elected as the Chairman of
the Board of Directors.
The Authorized Public Accountants KPMG Oy Ab was re-elected as the auditor of
the company, with Kirsi Jantunen as the accountant with the main
responsibility.
Tatu Ylönen started as company CEO 26.9.2011.
SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE
The reported trading volume of Tectia Corporation shares totaled 1,417,311
shares (valued at EUR 890,595.27). The highest quotation was EUR 0.89 and the
lowest EUR 0.35. The trade-weighted average share price for the period was EUR
0.63 and the share closed at EUR 0.41 (September 30, 2011).
Company's principal owner Tatu Ylönen holdings directly and through his
company, Tatu Ylönen Oy, holds now 45.5 percent of the company's shares,
Assetman Oy holds 13.1 percent and SSH Management Investment Corp 4.7 percent.
More information about the shareholding can be obtained from the company´s web
site.
SSH Management Investment Corp is part of the Tectia Group consolidated
financial statements due to shareholder agreement.
During reporting period no dividend or return of capital are distributed.
SHARE CAPITAL AND BOARD AUTHORIZATIONS
The company's registered share capital on September 30, 2011 was EUR 916,476.24
consisting of 30,549,208 shares.
The Annual General Meeting approved the Board of Directors' proposal to
authorize the Board of Directors to decide upon the issuing of in total
5,500,000 shares, in one or more tranches, as share issues against payment or
by giving stock options or other special rights entitling to shares, as defined
in Chapter 10 Section 1 of the Finnish Companies Act, either in accordance with
the shareholders' pre-emptive right to share subscription or deviating from
this right. The authorization will be valid until the next Annual General
Meeting, but will expire on June 30th 2012 at the latest.
The Annual General Meeting approved the Board of Directors' proposal to
authorize the Board of Directors to decide upon the acquiring of a maximum of
2,000,000 of the company's own shares, in one or more tranches, with assets
belonging to the company's non-restricted equity. This amount corresponds
approximately to 6.55 per cent of all shares of the company. The compensation
to be paid for the acquired shares shall be determined on the date of
acquisition on the basis of the trading rate determined for the company's share
in the public trading arranged by NASDAQ OMX Helsinki Ltd. Furthermore, the
Annual General Meeting decided to authorize the Board of Directors to decide
upon a distress concerning a maximum of 1,500,000 own shares, in one or more
tranches. The amount corresponds approximately to 4.91 per cent of all shares
of the company. The authorization to acquire the shares and the authorization
concerning the distress shall be valid at most for eighteen (18) months after
the decision of the Annual General Meeting.
RISKS AND UNCERTAINTIES
Risk management is a part of Tectia's internal administration. It aims to
ensure that major risks affecting the company's business and operating
environment are identified and monitored. Tectia operates in fast chancing
security software markets, thus the changes in IT-business and particularly in
security software business development affects directly to company's business
risk. Since the United States is the main market area, any risks including
currency risks associated with that country are considered to be significant.
Other major risks are related to product technology, competitor activities and
profitability.
Sales operations are supported by the company's own legal unit, which, through
continuous management of contracts, seeks to reduce the risks related to the
company's business operations. Tectia protects its copyrights and trademarks
through sales agreements. The company has also an active patent policy to
protect its technology. Tectia encourages its employees to make and protect
inventions.
Tectia has a process in place whereby any network security risks found in the
company's products are promptly reported to senior management. Corrections are
made immediately and updates are supplied to customers without delay. The
company's critical information systems are secured. Tectia actively uses its
own products to protect the information system architecture. Encryption and
strong authentication protect the company's confidential data communications.
Tectia provides no financing for its customers other than by granting normal
payment terms. The company has a strong balance sheet and no significant
long-term liabilities. Asset managers invest the company's cash reserves in
accordance with a policy approved by the Board of Directors. Significant of the
Tectia's invoicing is taking place in US dollars. Company has hedged during the
reporting period against US dollar currency fluctuations. Company does not
apply hedge accounting on current hedging position and therefore states hedging
income/expenses in income statement.
During the reporting period there have not been any significant changes in
company's business risks or uncertainties.
RELATED PARTY TRANSACTIONS
During reporting period there have not been any significant changes in
company's business risks or uncertainties. More details to risks and
uncertainties are disclosed in 2010 financial statement and annual report.
TABLES
COMPREHENSIVE INCOME STATEMENT
--------------------------------------------------------------------------------
EUR million
--------------------------------------------------------------------------------
7-9 7-9 1-9 1-9 1-12
/2011 /2010 /2011 /2010 /2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales
--------------------------------------------------------------------------------
Cost of goods sold 1.9 2.1 6.1 6.6 9.1
--------------------------------------------------------------------------------
Gross profit 0.1 0.0 -0.1 -0.1 -0.2
--------------------------------------------------------------------------------
Other operating income 2.0 2.1 6.0 6.5 8.9
--------------------------------------------------------------------------------
0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Sales. marketing and customer support -1.5 -1.3 -4.3 -3.6 -5.1
costs
--------------------------------------------------------------------------------
Product development expenses -0.8 -0.6 -2.1 -1.7 -2.3
--------------------------------------------------------------------------------
Administrative expenses -0.6 -0.4 -1.6 -1.6 -2.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss -0.9 -0.2 -2.0 -0.3 -0.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income and expenses -0.1 0.1 -0.1 0.3 0.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss before taxes -1.0 -0.1 -2.1 0.0 -0.5
--------------------------------------------------------------------------------
Taxes 0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net profit/loss for the financial period -1.0 -0.1 -2.1 0.0 -0.5
--------------------------------------------------------------------------------
Minority Interest
--------------------------------------------------------------------------------
Other profit and loss account items:
--------------------------------------------------------------------------------
Foreign subsidiary translation differences 0.2 0.0 0.1 -0.1 -0.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income -0.8 -0.1 -2.0 -0.1 -0.7
--------------------------------------------------------------------------------
Net profit/loss attributable to:
------------------------------------------------------------------
Owners of the Company -0.8 -0.1 -2.0 -0.1 -0.7
------------------------------------------------------------------
Non-Controlling interest 0.0 0.0 0.0 0.0 0.0
------------------------------------------------------------------
------------------------------------------------------------------
EARNINGS PER SHARE
------------------------------------------------------------------
Earnings per share (EUR) -0.03 0.00 -0.07 0.00 -0.02
------------------------------------------------------------------
Earnings per share. diluted (EUR) -0.03 0.00 -0.07 0.00 -0.02
------------------------------------------------------------------
BALANCE SHEET
---------------------------------------------------------------------------
EUR million
---------------------------------------------------------------------------
30.09.2011 30.09.2010 31.12.2010
---------------------------------------------------------------------------
ASSETS
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Non-current assets
---------------------------------------------------------------------------
Tangible assets 0.1 0.2 0.2
---------------------------------------------------------------------------
Intangible assets 1.1 0.0 0.8
---------------------------------------------------------------------------
Investments 0.0 0.0 0.0
---------------------------------------------------------------------------
Total non-current assets 1.2 0.3 1.0
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Current assets
---------------------------------------------------------------------------
Trade and other receivables 1.7 2.2 3.2
---------------------------------------------------------------------------
Short-term financial assets 0.0 2.5 2.5
---------------------------------------------------------------------------
Cash and cash equivalents 3.0 2.0 1.6
---------------------------------------------------------------------------
Total current assets 4.7 6.7 7.2
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total assets 5.9 6.9 8.3
---------------------------------------------------------------------------
---------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Shareholders' equity
---------------------------------------------------------------------------
Equity attributable to the 0.9 2.8 2.9
parent company shareholders
total
---------------------------------------------------------------------------
Non-controlling interest 0.3 0.0 0.3
---------------------------------------------------------------------------
Shareholders' equity total 1.2 2.8 3.2
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Non-current liabilities
---------------------------------------------------------------------------
Provisions 0.1 0.1 0.1
---------------------------------------------------------------------------
Non-current interest-bearing 0.0 0.0 0.0
liabilities
---------------------------------------------------------------------------
Total long-term liabilities 0.1 0.1 0.1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Current liabilities 4.6 4.0 5.0
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Liabilities total 4.7 4.1 5.1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total equity and liabilities 5.9 6.9 8.3
---------------------------------------------------------------------------
---------------------------------------------------------------------------
CASH FLOW STATEMENT
--------------------------------------------------------------------
EUR million 1-9/2011 1-9/2010 1-12/2010
--------------------------------------------------------------------
--------------------------------------------------------------------
Cash flow from business operations -0.6 -0.4 -0.9
--------------------------------------------------------------------
Cash flow from investments -0.4 -0.1 -0.1
--------------------------------------------------------------------
Cash flow from financing 2.5 -1.5 -1.4
--------------------------------------------------------------------
--------------------------------------------------------------------
Increase(+) / decrease (-) in cash 1.5 -1.9 -2.3
--------------------------------------------------------------------
--------------------------------------------------------------------
Cash at period start 1.6 3.9 3.9
--------------------------------------------------------------------
Effect of exchange rate 0.0 0.0 0.0
--------------------------------------------------------------------
Cash at period end 3.0 2.0 1.6
--------------------------------------------------------------------
--------------------------------------------------------------------
--------------------------------------------------------------------
STATEMENT ON CHANGES
IN SHAREHOLDERS'
EQUITY
--------------------------------------------------------------------------------
EUR million Share Fair Other Trans- Fund Non-Con Unrestrict Total
Capi-t value Equit lation for trollin ed equity
al reser- y Fund diff own g funds and
ves share intere retained
s st earnings
--------------------------------------------------------------------------------
Shareholders 0.9 0.1 -1.0 -1.1 5.5 4.4
' equity
Jan. 1. 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change -0.1 -0.1
--------------------------------------------------------------------------------
Return of 0.1 -1.5 -1.4
Capital
--------------------------------------------------------------------------------
Net profit -0.1 -0.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders 0.9 0.1 -1.1 -1.0 3.9 2.8
' equity
Sept. 30.
2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change -0.2 -0.2
--------------------------------------------------------------------------------
Transactions 0.1 0.5 0.6
related to
Siltanet
Corp
Purchase
--------------------------------------------------------------------------------
Net profit -0.5 -0.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Management 0.3 0.3
Incentive
plan
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders 0.9 0.1 0.1 -1.3 -1.0 0.3 4.0 3.2
' equity
Dec. 31.
2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change 0.1 0.1 0.2
--------------------------------------------------------------------------------
Net Profit -2.1 -2.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders 0.9 0.1 0.2 -1.2 -1.0 0.3 1.9 1.2
' equity
Sept 30.
2011
--------------------------------------------------------------------------------
NET SALES BY SEGMENT
---------------------------------------------------
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2011 2010 2011 2010 2010
---------------------------------------------------
---------------------------------------------------
AMER 1.2 1.4 3.7 4.5 6.0
---------------------------------------------------
APAC 0.3 0.2 0.8 0.6 1.0
---------------------------------------------------
EMEA 0.5 0.4 1.6 1.5 2.1
---------------------------------------------------
Tectia Group total 1.9 2.1 6.1 6.6 9.1
---------------------------------------------------
GROSS MARGIN BY SEGMENT
------------------------------------------------------
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2011 2010 2011 2010 2010
------------------------------------------------------
------------------------------------------------------
AMER 1.2 1.5 3.7 4.5 6.0
------------------------------------------------------
APAC 0.3 0.2 0.9 0.6 1.0
------------------------------------------------------
EMEA 0.5 0.4 1.4 1.4 1.9
------------------------------------------------------
Tectia Group total 2.0 2.1 6.0 6.5 8.9
------------------------------------------------------
OPERATING PROFIT/LOSS BY SEGMENT
---------------------------------------------------------------
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2011 2010 2011 2010 2010
---------------------------------------------------------------
---------------------------------------------------------------
AMER 0.6 0.8 1.7 2.8 3.4
---------------------------------------------------------------
APAC 0.2 0.1 0.6 0.3 0.4
---------------------------------------------------------------
EMEA 0.1 0.1 0.5 0.2 0.5
---------------------------------------------------------------
Common Group -1.8 -1.1 -4.8 -3.6 -5.1
expenses*
---------------------------------------------------------------
Tectia Group total -0.9 -0.2 -2.0 -0.3 -0.7
---------------------------------------------------------------
* Common Group expenses include Group administration expenses (e.g. management
and finance) and product management and R&D expenses for corporate
headquarters.
KEY FIGURES AND RATIOS
--------------------------------------------------------------------------------
EUR million 1-9/201 1-9/201 1-12/201
1 0 0
--------------------------------------------------------------------------------
Net sales 6.1 6.6 9.1
--------------------------------------------------------------------------------
Operating profit/loss -2.0 -0.3 -0.7
--------------------------------------------------------------------------------
Operating profit/loss. as % of net sales -33.3 -3.9 -7.9
--------------------------------------------------------------------------------
Profit/loss before extraordinary items and taxes -1.0 0.0 -0.5
--------------------------------------------------------------------------------
Profit/loss before extraordinary items and taxes. as -16.4 0.3 -5.0
% of net sales
--------------------------------------------------------------------------------
Profit/loss before taxes -2.1 0.0 -0.5
--------------------------------------------------------------------------------
Profit/loss before taxes. as -35.1 0.3 -5.0
% of net sales
--------------------------------------------------------------------------------
Return on equity (%) -130.8 0.7 -13.0
--------------------------------------------------------------------------------
Return on investment (%) -407.7 1.2 -10.5
--------------------------------------------------------------------------------
Interest-bearing net liabilities -3.0 -4.5 -4.0
--------------------------------------------------------------------------------
Equity ratio (%) 38.6 70.6 63.6
--------------------------------------------------------------------------------
Gearing (%) -251.9 -162.1 -136.6
--------------------------------------------------------------------------------
Gross capital expenditure 0.4 0.0 0.1
--------------------------------------------------------------------------------
% of net sales 6.6 0.0 1.1
--------------------------------------------------------------------------------
R&D expenses -2.1 -1.7 -2.3
--------------------------------------------------------------------------------
% of net sales -34.4 -25.8 -25.3
--------------------------------------------------------------------------------
Personnel. period average 62 67 66
--------------------------------------------------------------------------------
Personnel. period end 53 68 64
--------------------------------------------------------------------------------
Calculation for key figures and ratios are presented in 2010 financial
statement and annual report. There have not been changes in calculation rules
after that.
PER-SHARE DATA
------------------------------------------------------------------------------
EUR 1-9/2011 1-9/2010 1-12/2010
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Earnings per share. Undiluted -0.07 0.00 -0.02
------------------------------------------------------------------------------
Earnings per share. diluted -0.07 0.00 -0.02
------------------------------------------------------------------------------
Equity per share 0.03 0.09 0.10
------------------------------------------------------------------------------
No. of shares at period average (thousand) 30 549 29 899 29 900
------------------------------------------------------------------------------
No. of shares at period end (thousand) 30 549 29 901 29 901
------------------------------------------------------------------------------
Share performance
------------------------------------------------------------------------------
Average price 0.63 0.92 0.91
------------------------------------------------------------------------------
Low 0.35 0.76 0.76
------------------------------------------------------------------------------
High 0.89 1.15 1.15
------------------------------------------------------------------------------
Share price. period end 0.41 0.97 0.83
------------------------------------------------------------------------------
Market capitalization. period end (EUR million) 12.5 29.0 24.8
------------------------------------------------------------------------------
Volume of shares traded (million) 1.4 3.9 4.5
------------------------------------------------------------------------------
Volume of shares traded. As 4.6 13.0 15.1
% of total
------------------------------------------------------------------------------
Value of shares traded (EUR million) 0.9 3.6 4.1
------------------------------------------------------------------------------
Price per earnings ratio (P/E) - - -
------------------------------------------------------------------------------
Dividend per share 0.00 0.00 0.00
------------------------------------------------------------------------------
Dividend per earnings, % 0.00 0.00 0.00
------------------------------------------------------------------------------
Effective return on dividend, % 0.00 0.00 0.00
------------------------------------------------------------------------------
* Figure does not include directed share issue to Siltanet Corp as the shares
became under exercise not until January 2011.
CONTINGENT LIABILITIES
----------------------------------------------------------------
EUR million 30.9.2011 30.9.2010 31.12.2010
----------------------------------------------------------------
Rent security deposits 0.1 0.1 0.1
----------------------------------------------------------------
Leasing commitments outside
the balance sheet
----------------------------------------------------------------
Maturing within 1 year 0.4 0.4 0.5
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Maturing between 1 and 5 years 0.4 0.8 1.3
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DISCLAIMER
The content in this report is provided by Tectia Corporation ("Tectia") and its
third party content providers for your personal information only. And does not
constitute an offer or invitation to purchase any securities. Nor does it
provide any form of advice (investment. tax. legal) amounting to investment
advice. Or make any recommendations regarding particular investments or
products. Tectia does not provide investment advice or recommendations to buy
or sell its shares or the shares of others. If you are interested in investing
in Tectia, please contact your financial adviser for further details and
information. Past performance of Tectia shares is not indicative of future
results. EXCEPT AS PROVIDED BY APPLICABLE COMPULSORY LAW TECTIA EXPRESSLY
DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED. AS TO THE AVAILABILITY,
ACCURACY OR RELIABILITY OF ANY OF THE CONTENT PROVIDED, OR AS TO THE FITNESS OF
THE INFORMATION FOR ANY PURPOSE.
Tectia Corporation will release its next interim report and financial
statements for January 1-December 31, 2011 in February 2012. Further
information will be available on the company's web site in due course.
Helsinki, October 19th 2011
TECTIA CORPORATION
Board of Directors
Tatu Ylönen
CEO
For further information, please contact:
Tatu Ylönen, CEO. tel. +358 20 500 7000
Mikko Karvinen, CFO, Deputy Managing Director. tel. +358 50 326 4101
Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.tectia.com
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