2013-07-30 08:30:00 CEST
2013-07-30 08:30:03 CEST
REGULATED INFORMATION
QPR Software - Interim report (Q1 and Q3)
SECOND QUARTER NET SALES EUR 2.3 MILLION, EARNINGS PER SHARE INCREASED 60%
QPR SOFTWARE PLC STOCK EXCHANGE RELEASE JULY 30, 2013 AT 9.30 AM
INTERIM REPORT JANUARY-JUNE 2013
SECOND QUARTER NET SALES EUR 2.3 MILLION, EARNINGS PER SHARE INCREASED 60%
Summary second quarter 2013
-- Net sales EUR 2,335 thousand (2012: 2,404).
-- Net sales decreased 3% due to a significant decrease in software license
net sales. Net sales from software rentals increased 44%.
-- Recurring revenues (software rentals and maintenance services) increased 5%
and were 50% of total net sales (46). The growth in recurring revenues was
slowed down by exchange rate changes in maintenance service revenues.
-- Operating profit EUR 222 thousand (230). Operating result returned positive
after the first quarter operating loss.
-- Profit before taxes EUR 222 thousand (196), growth 13%.
-- Profit for the quarter EUR 189 thousand (124), growth 52%.
-- Earnings per share EUR 0.016 (0.010), growth 60%.
Summary January-June 2013
-- Net sales EUR 4,416 thousand (2012: 4,616).
-- Net sales decreased 4% due to a significant decrease in software license
net sales. Net sales from software rentals increased 44%.
-- Recurring revenues (software rentals and maintenance services) increased 8%
and were 53% of total net sales (47). The growth in recurring revenues was
slowed down by exchange rate changes in maintenance service revenues.
-- Operating profit EUR 191 thousand (429).
-- Cash flow from operating activities EUR 1,198 thousand (1,632).
-- Profit before taxes EUR 180 thousand (393).
-- Profit for the period EUR 153 thousand (273).
-- Earnings per share EUR 0.013 (0.022).
Outlook 2013
QPR estimates its net sales in 2013 to remain on the same level or to grow
slightly compared to previous year (2012: EUR 9.3 million). Especially net
sales from software rentals and enterprise architecture services are expected
to grow, but software license net sales to decrease. Operating profit is
estimated to be lower than in previous year (2012: EUR 0.9 million), but to
improve significantly from the level in January-June 2013.
In 2013, the Company aims to continue investments in the development of its new
software products. In recent years, QPR has launched two new software products
that have excellent growth prospects. The strong growth of QPR
EnterpriseArchitect business in Finland is estimated to continue, and in 2013
the Company is building a new international reseller network for the product.
QPR EnterpriseArchitect is software for agile management of all dimensions in
the enterprise architecture. The Company also continues investing into the
growth of its new QPR ProcessAnalyzer software product that offers a fast way
to automatically discover processes by using data stored in the IT systems of
an organization.
The Company is also developing its professional service offering, with the aim
to grow its local business in Finland and to accelerate its international
software sales. Internationally, this happens by offering complementary service
concepts and solutions to the Company's reseller partners.
KEY FIGURES
EUR in thousands, Apr-Jun Apr-Jun Change Jan-Jun Jan-Ju Change Jan-Dec
unless otherwise 2013 2012 , % 2013 n 2012 , % 2012
indicated
--------------------------------------------------------------------------------
Net sales 2,335 2,404 -2.9 4,416 4,616 -4.3 9,321
EBITDA 396 398 -0.5 538 764 -29.6 1,555
% of net sales 17.0 16.6 12.2 16.6 16.7
Operating profit 222 230 -3.5 191 429 -55.5 874
% of net sales 9.5 9.6 4.3 9.3 9.4
Profit before tax 222 196 13.3 180 393 -54.2 833
Profit for the 189 124 52.4 153 273 -44.0 662
period
% of net sales 8.1 5.2 3.5 5.9 7.1
Earnings per share, 0.016 0.010 60.0 0.013 0.022 -40.9 0.054
EUR
Equity per share, 0.209 0.221 -5.4 0.209 0.221 -5.4 0.240
EUR
Cash flow from -71 52 -236.5 1,198 1,632 -26.6 1,777
operating
activities
Cash and cash 1,534 1,817 -15.6 1,534 1,817 -15.6 1,404
equivalents
Free cash flow -277 -83 233.7 777 1,322 -41.2 1,165
Net liabilities -1,308 -1,365 -4.2 -1,308 -1,365 -4.2 -1,065
Gearing, % -50.3 -49.8 -50.3 -49.8 -35.7
Equity ratio, % 47.6 47.1 47.6 47.1 51.3
Return on equity, % 27.3 17.2 11.0 19.1 22.2
Return on 29.9 27.4 13.0 25.4 25.5
investment, %
--------------------------------------------------------------------------------
REPORTING
This report complies with requirements of IAS 34 ”Interim Financial Reporting”.
Starting from the beginning of 2013, the Company has applied certain new or
revised IFRS standards and IFRIC interpretations as described in the
Consolidated Financial Statements 2012. The implementation of these new and
revised requirements have not materially impacted the reported figures. For all
other parts, the accounting and valuation principles are the same as they were
in the 2012 financial statements. This report is unaudited.
QPR Software's business operations consist of software and professional
services sales. The Company reports income for products and services as
follows: software license sales, software maintenance services, software
rentals, and professional services.
QPR reports the following business segments: Direct and OEM business (software
license and rental sales, maintenance and professional services sales to direct
customers and OEM customers) and Resellers (software license and rental sales,
maintenance and professional services sales through resellers and the Russian
subsidiary).
NET SALES
Net sales in the second quarter were EUR 2,335 thousand (2,404) and decreased
3% from the corresponding period of the previous year. Net sales decreased due
to a clear decline in software license sales, which was not fully compensated
by the continued strong growth in software rental net sales.
Net sales in January-June were EUR 4,416 thousand (4,616) and decreased 4% from
the corresponding period of the previous year.
Net sales by product group
EUR in thousands Apr-Jun Apr-Jun Change Jan-Jun Jan-Jun Change Jan-Dec
2013 2012 , % 2013 2012 , % 2012
--------------------------------------------------------------------------------
Software 341 541 -37 539 993 -46 1,797
licenses
Software 760 826 -8 1,531 1,603 -4 3,223
maintenance
services
Software rentals 405 282 44 795 551 44 1,221
Professional 829 755 10 1,551 1,469 6 3,080
services
--------------------------------------------------------------------------------
Total 2,335 2,404 -3 4,416 4,616 -4 9,321
--------------------------------------------------------------------------------
New software sales by QPR are increasingly made through software rentals rather
than perpetual license sales, which is reflected as decline in software license
net sales and increase in software rental net sales. In Finland, clear majority
of new sales are made on a rental basis. Internationally, the transition is
still ongoing.
In the second quarter, software license net sales decreased 37%, which the
growth of 44% in software rental net sales was not able to fully compensate.
Net sales from software maintenance services declined 8%, mainly due to
exchange rate changes. Net sales from professional services increased 10%, as
especially net sales from enterprise architecture services grew strongly.
Total recurring revenue (net sales from software maintenance services and
software rentals) grew 5% in the second quarter. The growth in recurring
revenues was slowed down by exchange rate changes in maintenance service
revenues. The share of recurring revenue of total net sales increased to 50%
(46).
Net sales by product group in January-June also developed similarly as in the
second quarter. QPR expects net sales from professional services to grow during
the rest of the year, compared to the level in the first half of the year,
especially in the enterprise architecture services.
Net sales by business segment
EUR in Apr-Jun Apr-Jun Change Jan-Jun Jan-Jun Change Jan-Dec
thousands 2013 2012 , % 2013 2012 , % 2012
--------------------------------------------------------------------------------
Direct and OEM 1,468 1,380 6 2,818 2,643 7 5,491
business
Resellers 866 1,024 -15 1,599 1,973 -19 3,830
--------------------------------------------------------------------------------
Total 2,335 2,404 -3 4,416 4,616 -4 9,321
--------------------------------------------------------------------------------
In the second quarter, net sales in the Direct and OEM business grew 6% from
the corresponding period last year. The growth was especially strong in net
sales from software and services aiming at developing enterprise architecture.
Net sales in the Resellers unit decreased 15% in the second quarter, mainly due
to decline in software license net sales.
Net sales in January-June also developed similarly as in the second quarter.
FINANCIAL PERFORMANCE
Operating profit by business segment:
EUR in Apr-Jun Apr-Jun Change Jan-Jun Jan-Jun Change Jan-Dec
thousands 2013 2012 , % 2013 2012 , % 2012
--------------------------------------------------------------------------------
Direct and OEM 170 186 -9 188 409 -54 848
business
Resellers 143 141 1 183 222 -18 402
Unallocated -91 -97 -6 -180 -202 -11 -376
--------------------------------------------------------------------------------
Total 222 230 -3 191 429 -55 874
--------------------------------------------------------------------------------
The Group's operating loss for the first quarter turned into profit for the
second quarter, even though net sales continued to be slightly lower than in
the previous year. In the second quarter, operating profit in the Direct and
OEM business declined slightly due to continued outlays in the growth
businesses. Operating profit in the Resellers unit was on the level of previous
year, since the result for the corresponding quarter of the previous year was
reduced by credit losses of EUR 119 thousand.
The Group's expenses in the second quarter declined 4%, mainly due to lower
credit losses. Personnel expenses grew 9% and were 70% of total expenses (62).
Net financial expenses in the second quarter were EUR 0 thousand (34). Net
financial expenses included foreign exchange gains of EUR 3 thousand (losses of
EUR 32 thousand). Income taxes in the second quarter were EUR 33 thousand (72).
For new development projects started in 2013, the Company expects to be able to
utilize an additional tax deduction on research and development activities,
valid for years 2013 - 2014 in Finland, which lowered the Group's effective tax
rate to 15%. Profit before taxes in the second quarter was EUR 222 thousand
(196) and profit for the period was EUR 189 thousand (124). Earnings per share
for the second quarter increased 60% to EUR 0.016 (positive 0.010).
In January-June, operating profit in the Direct and OEM business declined due
to continued outlays in the growth businesses especially in the first quarter.
Operating profit in the Resellers unit declined due to lower net sales.
Operating profit for the Resellers unit in January-June includes credit losses
of EUR 21 thousand (149). Profit before taxes in January-June was EUR 180
thousand (393) earnings per share were EUR 0.013 (0.022).
FINANCE AND INVESTMENTS
Cash flow from operating activities was EUR 1,198 thousand (1,632) in
January-June and EUR ‑71 thousand (52) in the second quarter. Cash and cash
equivalents at the end of the second quarter were EUR 1,534 thousand (1,817).
Investments in January-June totaled EUR 424 thousand (310). Slightly more than
half of the investments were made in product development.
Interest-bearing liabilities decreased and were EUR 226 thousand (452) at the
end of the reporting period. The gearing ratio was -50% (-50). Current
liabilities include deferred revenue in total of EUR 1,688 thousand (1,600).
Return on investment was 13% (25) in January-June and 30% (27) in the second
quarter.
At the end of the reporting period, equity ratio was 48% (47) and the
consolidated shareholders' equity was EUR 2,601 thousand (2,748). Return on
equity was 11% (19) in January-June and 27% (17) in the second quarter.
The Annual General Meeting on March 14, 2013 authorized the Board of Directors
to decide on issuing a maximum of 4,000,000 new shares, to decide on conveyance
of a maximum of 550,000 own shares held by the Company, and to decide on
acquiring a maximum of 250,000 own shares. The authorizations are in force
until the next Annual General Meeting. On March 20, 2013, the Company issued a
stock exchange release on a decision to start acquiring own shares through
public trading in NASDAQ OMX Helsinki Ltd.
PRODUCT AND SERVICE DEVELOPMENT
Product development expenses in January-June were EUR 918 thousand (846),
representing 21% (18) of net sales. Product development expenses do not include
amortization of capitalized product development expenses.
In January-June, product development expenses were capitalized for a total
amount of EUR 250 thousand (211). The amortization period for capitalized
product development expenses is four years. The amortization of capitalized
product development expenses in January-June was EUR 137 thousand (111).
Product development employed 27 persons at the end of the quarter, which
corresponds to 32% of the total personnel.
In January-June, software product development activities were especially
focused on the QPR EnterpriseArchitect and QPR ProcessAnalyzer products.
By developing its service products, the Company aims to grow its local business
in Finland, and to accelerate its international software sales by offering
complementary service concepts and solutions to its reseller partners.
PERSONNEL
At the end of the quarter, the Group employed a total of 84 persons (79).
Average number of personnel in January-June was 84 (76) and personnel expenses
totaled EUR 3,013 thousand (2,654).
For incentive purposes, the Company has a bonus program that covers all
employees. Short-term remuneration of the top management consists of salary,
fringe benefits and a possible annual bonus based on net sales and operating
profit performance. The maximum annual bonus of executive management team,
including the CEO, is 40% of the annual base salary. Long-term remuneration of
the executive management team consists of a share-based incentive plan.
Information on incentive plans in the Annual Report 2012: www.qpr.com -->
“Investors” section.
SHARES AND SHAREHOLDERS
Trading of shares Jan-Jun Jan-Jun Change, Jan-Dec
2013 2012 % 2012
--------------------------------------------------------------------------------
Shares traded, pcs 282,186 218,495 29 501,186
Volume, EUR 267,802 189,266 41 437,890
% of shares 2.3 1.8 4.0
Average trading price, EUR 0.95 0.87 10 0.87
Treasury shares acquired during the 47,052 41,630 13 106,482
period, pcs
--------------------------------------------------------------------------------
Shares and market capitalization Jun 30, Jun 30, Change, Dec 31,
2013 2012 % 2012
--------------------------------------------------------------------------------
Total number of shares, pcs 12,444,863 12,444,863 0 12,444,863
Treasury shares, pcs 332,939 221,035 51 285,887
Book counter value, EUR 0.11 0.11 0.11
Outstanding shares, pcs 12,111,924 12,223,828 -1 12,158,976
Number of shareholders 609 586 4 597
Closing price, EUR 0.92 0.92 0 0.95
Market capitalization, EUR 11,142,970 11,245,922 -1 11,551,027
Book counter value of all treasury 36,623 24,314 51 31,448
shares, EUR
Total purchase value of all 304,990 203,797 50 260,906
treasury shares, EUR
Treasury shares, % of all shares 2.7 1.8 2.3
--------------------------------------------------------------------------------
The Annual General Meeting held on March 14, 2013 approved the Board's proposal
that a per-share dividend of EUR 0.04 (0.03), a total of EUR 486 thousand
(367), is paid for the financial year 2012. The dividend was paid to
shareholders entered in the Company's shareholder register, maintained by
Euroclear Finland Oy, on the record date of March 19, 2013. The dividend
payment date was April 3, 2013.
OTHER EVENTS IN JANUARY-JUNE
In March, QPR Software and the German software company JobRouter AG announced a
new process analysis service based on QPR ProcessAnalyzer software. The
companies have agreed on cooperation, where JobRouter will use QPR
ProcessAnalyzer software in fact-based visualizing and analysis of their
customers' processes in the JobRouter workflow solution.
In April, QPR Software published an agreement with CGI, the leading IT and
business process services company, for a new process analysis service based on
QPR ProcessAnalyzer software product. With the service, CGI will be able to
show their customers the real state of their processes and help support them in
reaching operational efficiency. For QPR, the partnership gives the opportunity
to bring QPR ProcessAnalyzer to a larger audience.
In April, after a tender competition, Hansel Oy, the central procurement unit
of the Finnish Government, elected QPR Software as one of the frame agreement
providers of management consulting services for years 2013-2017. The frame
agreement enables QPR to offer its professional services in simplified tender
competitions by government entities in their operational development and
enterprise architecture projects.
GOVERNANCE
The Annual General Meeting on March 14, 2013 resolved that the Board of
Directors consists of four (4) ordinary members. The AGM elected the following
members to the Board of Directors: Kirsi Eräkangas, Jyrki Kontio, Vesa-Pekka
Leskinen and Topi Piela. In its first meeting following the Annual General
Meeting, the Board of Directors elected Vesa-Pekka Leskinen as Chairman of the
Board.
The AGM elected KPMG Oy Ab, Authorized Public Accountants, as QPR Software
Plc's auditors, with Kirsi Jantunen, Authorized Public Accountant, acting as
principal auditor.
The AGM authorized the Board to decide on issuing new shares and repurchasing
the Company's own shares.
The conditions of all authorizations of the Board and other decisions made by
the Annual General Meeting are available in their entirety on the stock
exchange release published by the Company on March 14, 2013 and available on
the investors section of the Company's web site, www.qpr.com.
SHORT-TERM RISKS AND UNCERTAINTIES
Internal control and risk management in QPR Software aims to ensure that the
Company operates efficiently and effectively, distributes reliable information,
complies with regulations and operational principles, reaches its strategic
goals, reacts to changes in the market and operational environment, and ensures
the continuity of its business.
QPR has identified the following four groups of risks related to its
operations: risks related to business operations (country, customer, service
delivery, personnel, legal and financial risks as well as risks related to the
Company's resellers), risks related to information and products (QPR products,
IPR, data security), risks related to financing (foreign currency, bad debt),
and risks related to new businesses (growth of new business, product
development investments in new business). The Company has an insurance policy
for property, operational and liability risks. The Company monitors country,
customer, personnel and finance risks also in the Russian subsidiary OOO QPR
Software.
Financial risks include reasonable credit risk concerning individual business
partners, which is characteristic to any international business. QPR seeks to
limit this credit risk by continuous monitoring of standard payment terms,
receivables and credit limits. The escalated economic crisis in the euro area
has, according to management's estimate, to some extent increased the credit
risk that has earlier remained on a moderate level, and has resulted in
increased credit losses. During the current year, however, the amount of credit
losses and overdue receivables has been clearly lower than in the previous
year. In January-June, EUR 21 thousand (149) of credit losses were recorded.
The amount of trade receivables over 60 days past due was 7% (10) of total
trade receivables at the end of the quarter.
Approximately 65% of Group's trade receivables were in euro at the end of the
quarter. At the end of the quarter, the Company had not hedged its foreign
currency (non-euro) trade receivables.
No significant changes have taken place in the Company's short-term risks and
uncertainties during January-June. Risks and risk management related to the
Company's business are further described in the Annual Report 2012, pages 14-15
(www.qpr.com/investors/key-figures-and-reports.htm).
OUTLOOK 2013
QPR estimates its net sales in 2013 to remain on the same level or to grow
slightly compared to previous year (2012: EUR 9.3 million). Especially net
sales from software rentals and enterprise architecture services are expected
to grow, but software license net sales to decrease. Operating profit is
estimated to be lower than in previous year (2012: EUR 0.9 million), but to
improve significantly from the level in January-June 2013.
In 2013, the Company aims to continue investments in the development of its new
software products. In recent years, QPR has launched two new software products
that have excellent growth prospects. The strong growth of QPR
EnterpriseArchitect business in Finland is estimated to continue, and in 2013
the Company is building a new international reseller network for the product.
QPR EnterpriseArchitect is software for agile management of all dimensions in
the enterprise architecture. The Company also continues investing into the
growth of its new QPR ProcessAnalyzer software product that offers a fast way
to automatically discover processes by using data stored in the IT systems of
an organization.
The Company is also developing its professional service offering, with the aim
to grow its local business in Finland and to accelerate its international
software sales. Internationally, this happens by offering complementary service
concepts and solutions to the Company's reseller partners.
FINANCIAL INFORMATION
Interim Report Q3/2013 will be published on Tuesday, October 29, 2013.
QPR SOFTWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0) 40 5026 397
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Main Media
Neither this press release nor any copy of it may be taken, transmitted or
distributed, directly or indirectly, in or into the United States of America or
its territories or possessions.
CONSOLIDATED INCOME STATEMENT
EUR in thousands, Apr-Jun Apr-Jun Change Jan-Jun Jan-Ju Change Jan-Dec
unless otherwise 2013 2012 , % 2013 n 2012 , % 2012
indicated
--------------------------------------------------------------------------------
Net sales 2,335 2,404 -3 4,416 4,616 -4 9,321
Other operating - 21 n/a 32 36 -11 158
income
Materials and 73 115 -37 134 202 -34 402
services
Employee benefit 1,484 1,360 9 3,013 2,654 14 5,491
expenses
Other operating 382 552 -31 763 1,032 -26 2,031
expenses
--------------------------------------------------------------------------------
EBITDA 396 398 -1 538 764 -30 1,555
Depreciation and 174 168 4 347 335 4 681
amortization
--------------------------------------------------------------------------------
Operating profit 222 230 -3 191 429 -55 874
Financial income and 0 -34 -100 -11 -36 -69 -41
expenses
--------------------------------------------------------------------------------
Profit before tax 222 196 13 180 393 -54 833
Income taxes -33 -72 -54 -27 -120 -78 -171
--------------------------------------------------------------------------------
Profit for the 189 124 52 153 273 -44 662
period
Profit for the
period attributable
to:
Shareholders of the 189 146 153 319 662
parent company
Non-controlling - -22 - -46 -
interests
--------------------------------------------------------------------------------
Total 189 124 153 273 662
Earnings per share, 0.016 0.010 60 0.013 0.022 -41 0.054
EUR (basic and
diluted)
Consolidated
statement of
comprehensive
income:
Profit for the 189 124 153 273 662
period
Other items that may
be reclassified
subsequently to
profit or loss:
Exchange rate
differences from
translating foreign -5 -37 -3 -85 -103
operations
Income tax related - - - - -
to other items
--------------------------------------------------------------------------------
Total comprehensive 184 87 150 188 559
income
Total comprehensive
income attributable
to:
Shareholders of the 184 109 150 234 559
parent company
Non-controlling - -22 - -46 -
interests
--------------------------------------------------------------------------------
Total 184 87 150 188 559
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
EUR in thousands Jun 30, Jun 30, Dec 31, Change,
2013 2012 2012 %
--------------------------------------------------------------------------------
Assets
Non-current assets:
Intangible assets 1,571 1,706 1,557 1
Goodwill 513 513 513 0
Tangible assets 198 141 140 41
Other non-current assets 133 95 120 11
--------------------------------------------------------------------------------
Total non-current assets 2,415 2,455 2,330 4
Current assets:
Trade and other receivables 3,207 3,141 3,111 3
Cash and cash equivalents 1,534 1,817 1,404 9
--------------------------------------------------------------------------------
Total current assets 4,741 4,958 4,515 5
Total assets 7,156 7,413 6,845 5
================================================================================
Equity and liabilities
Equity:
Share capital 1,359 1,359 1,359 0
Other funds 21 21 21 0
Treasury shares -305 -204 -261 17
Translation differences -172 -152 -169 2
Invested non-restricted equity fund 5 5 5 0
Retained earnings 1,693 1,773 2,026 -16
--------------------------------------------------------------------------------
Equity attributable to shareholders of 2,601 2,802 2,981 -13
the parent company
Non-controlling interests - -54 - n/a
--------------------------------------------------------------------------------
Total equity 2,601 2,748 2,981 -13
Non-current liabilities:
Interest-bearing liabilities - 226 113 n/a
Non-interest-bearing liabilities - - 71 n/a
--------------------------------------------------------------------------------
Total non-current liabilities - 226 184 n/a
Current liabilities:
Trade and other payables 4,329 4,213 3,452 25
Interest-bearing liabilities 226 226 226 0
--------------------------------------------------------------------------------
Total current liabilities 4,555 4,439 3,678 24
Total liabilities 4,555 4,665 3,862 18
Total equity and liabilities 7,156 7,413 6,845 5
================================================================================
CONSOLIDATED CASH FLOW STATEMENT
EUR in thousands Apr-Ju Apr-Ju Change Jan-Ju Jan-Ju Change Jan-De
n 2013 n 2012 , % n 2013 n 2012 , % c 2012
--------------------------------------------------------------------------------
Cash flow from operating
activities:
Profit for the period 189 124 52 153 273 -44 662
Adjustments to the 162 164 -1 329 306 8 548
profit
Working capital changes -364 -191 91 824 1,106 -25 744
Interest and other -8 -7 14 -13 -18 -28 -39
financial expenses paid
Interest and other 2 1 100 4 4 0 21
financial income
received
Income taxes paid -52 -39 33 -99 -39 154 -159
--------------------------------------------------------------------------------
Net cash from operating -71 52 -237 1,198 1,632 -27 1,777
activities
Cash flow from investing
activities:
Acquired subsidiaries - - -3 - -81
Purchases of tangible -206 -135 53 -421 -310 36 -612
and intangible assets
--------------------------------------------------------------------------------
Net cash used in -206 -135 53 -424 -310 37 -693
investing activities
Cash flow from financing
activities:
Repayments of long-term -113 - -113 -113 0 -226
borrowings
Repurchase of shares -32 -17 88 -44 -45 -2 -103
Dividends paid -486 -367 32 -486 -367 32 -367
--------------------------------------------------------------------------------
Net cash used in -631 -384 64 -643 -525 22 -696
financing activities
Net change in cash and -909 -467 95 131 797 -84 388
cash equivalents
Cash and cash 2,443 2,283 7 1,404 1,020 38 1,020
equivalents at the
beginning of the period
Effects of exchange rate 0 1 -1 0 -4
changes on cash and
cash equivalents
--------------------------------------------------------------------------------
Cash and cash 1,534 1,817 -16 1,534 1,817 -16 1,404
equivalents at the end
of the period
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR in Share Other Transla Treasu Invested Retain Non-con Total
thousands capita funds tion ry non-rest ed trollin
l differe shares ricted earnin g
nces equity gs interes
fund ts
--------------------------------------------------------------------------------
Equity Jan 1, 1,359 21 -66 -158 5 1,820 -8 2,973
2012
Dividends -367 -367
paid
Repurchase of -45 -45
shares
Comprehensive -85 320 -46 188
income
--------------------------------------------------------------------------------
Equity Jun 1,359 21 -151 -204 5 1,773 -54 2,748
30, 2012
--------------------------------------------------------------------------------
Acquisition -89 8 -81
of the
remaining
20% share in
QPR CIS Oy
Repurchase of -58 -58
shares
Comprehensive -18 342 46 371
income
--------------------------------------------------------------------------------
Equity Dec 1,359 21 -169 -261 5 2,026 - 2,981
31, 2012
--------------------------------------------------------------------------------
Dividends -486 -486
paid
Repurchase of -44 -44
shares
Comprehensive -3 153 150
income
--------------------------------------------------------------------------------
Equity Jun 1,359 21 -172 -305 5 1,693 - 2,601
30, 2013
--------------------------------------------------------------------------------
NOTES TO INTERIM FINANCIAL STATEMENTS
ACCOUNTING PRICIPLES
This report complies with requirements of IAS 34 ”Interim Financial Reporting”.
Starting from the beginning of 2013, the Company has applied certain new or
revised IFRS standards and IFRIC interpretations as described in the
Consolidated Financial Statements 2012. The implementation of these new and
revised requirements have not materially impacted the reported figures. For all
other parts, the accounting and valuation principles are the same as they were
in the 2012 financial statements.
When preparing the consolidated financial statements, management is required to
make estimates and assumptions regarding the future and to consider the
appropriate application of accounting principles, which means that actual
results may differ from those estimated.
All amounts presented in this report are consolidated figures, unless otherwise
noted. The amounts presented in the report are rounded, so the sum of
individual figures may differ from the sum reported. This report is unaudited.
During the reporting period, the Group did not have any financial instruments
measured at fair value.
GROUP INTANGIBLE AND TANGIBLE ASSETS
EUR in thousands Jan-Jun 2013 Jan-Jun 2012 Jan-Dec 2012
------------------------------------------------------------------------
Increase in intangible assets:
Acquisition cost Jan 1 5,428 5,004 5,004
Increase 318 249 427
Increase in tangible assets:
Acquisition cost Jan 1 1,234 1,159 1,159
Increase 101 61 117
------------------------------------------------------------------------
CHANGE IN GROUP INTEREST-BEARING LIABILITIES
EUR in thousands Jan-Jun 2013 Jan-Jun 2012 Jan-Dec 2012
-----------------------------------------------------------------------------
Interest-bearing liabilities Jan 1 339 566 566
Repayments -113 -113 -226
-----------------------------------------------------------------------------
Interest-bearing liabilities Jun 30 226 452 339
-----------------------------------------------------------------------------
GROUP COMMITMENTS AND CONTINGENT LIABILITIES
EUR in thousands Jun 30, Jun 30, Dec 31, Change 2013 2012 2012 ,
%
--------------------------------------------------------------------------------
Business mortgage 1,337 1,337 1,337 0
Lease liabilities
Liabilities maturing in one year 353 176 397 -11
Liabilities maturing in 2-5 years 26 64 91 -71
--------------------------------------------------------------------------------
Lease liabilities total 379 240 488 -22
Total commitments and contingent 1,716 1,577 1,825 -6
liabilities
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT BY QUARTER
EUR in thousands Q2 2013 Q1 2013 Q4 Q3 2012 Q2 2012 Q1 2012
2012
--------------------------------------------------------------------------------
Net sales 2,335 2,082 2,693 2,011 2,404 2,212
Other operating income - 32 104 18 21 15
Materials and services 73 61 100 100 115 87
Employee benefit expenses 1,484 1,528 1,626 1,211 1,360 1,294
Other operating expenses 382 383 620 379 552 480
--------------------------------------------------------------------------------
EBITDA 396 142 451 339 398 366
Depreciation and 174 173 171 174 168 167
amortization
--------------------------------------------------------------------------------
Operating profit 222 -31 281 165 230 199
Financial income and
expenses 0 -11 -9 4 -34 -2
--------------------------------------------------------------------------------
Profit before tax 222 -42 271 169 196 197
Income taxes -33 6 -34 -17 -72 -48
--------------------------------------------------------------------------------
Profit for the period 189 -36 237 152 124 149
--------------------------------------------------------------------------------
SEGMENT INFORMATION
EUR in thousands Apr-Jun Apr-Jun Change Jan-Jun Jan-Jun Change Jan-Dec
2013 2012 , % 2013 2012 , % 2012
--------------------------------------------------------------------------------
Net sales
Direct and 1,468 1,380 6 2,818 2,643 7 5,491
OEM business
Resellers 866 1,024 -15 1,599 1,973 -19 3,830
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total 2,335 2,404 -3 4,416 4,616 -4 9,321
EBITDA
Direct and 257 284 -10 375 608 -38 1,251
OEM business
Resellers 230 211 9 343 358 -4 680
Unallocated -91 -97 -6 -180 -202 -11 -376
------------------------------------------------------------------------------
Total 396 398 -1 538 764 -30 1,555
Operating profit
Direct and 170 186 -9 188 409 -54 848
OEM business
Resellers 143 141 1 183 222 -18 402
Unallocated -91 -97 -6 -180 -202 -11 -376
------------------------------------------------------------------------------
Total 222 230 -3 191 429 -55 874
Financial income 0 -34 -100 -11 -36 -69 -41
and expenses
Income taxes -33 -72 -54 -27 -120 -78 -171
--------------------------------------------------------------------------------
Profit for the 189 124 52 153 273 -44 662
period
Other
information:
Depreciation and
amortization
Direct and 87 98 -11 187 199 -6 403
OEM business
Resellers 87 70 24 160 136 18 278
------------------------------------------------------------------------------
Total 174 168 4 347 335 4 681
------------------------------------------------------------------------------
Names of the segments have been changed in 2013. Earlier, these segments were
called Finland operations and International operations.
GROUP KEY FIGURES
EUR in thousands, unless otherwise Jan-Jun or Jan-Jun or Jan-Dec or
indicated Jun 30, 2013 Jun 30, 2012 Dec 31, 2012
--------------------------------------------------------------------------------
Net sales 4,416 4,616 9,321
Net sales growth, % -4.3 30.0 23.6
EBITDA 538 764 1,555
% of net sales 12.2 16.6 16.7
Operating profit 191 429 874
% of net sales 4.3 9.3 9.4
Profit before tax 180 393 833
% of net sales 4.1 8.5 8.9
Profit for the period 153 273 662
% of net sales 3.5 5.9 7.1
Return on equity, % 11.0 19.1 22.2
Return on investment ,% 13.0 25.4 25.5
Interest-bearing liabilities 226 452 339
Cash and cash equivalents 1,534 1,817 1,404
Free cash flow 777 1,322 1,165
Net liabilities -1,308 -1,365 -1,065
Equity 2,601 2,748 2,981
Gearing, % -50.3 -49.8 -35.7
Equity ratio, % 47.6 46.6 51.3
Total balance sheet 7,156 7,413 6,845
Investments in non-current assets 420 304 518
% of net sales 9.5 6.6 5.6
Product development expenses 918 846 1,619
% of net sales 20.8 18.3 17.4
Average number of personnel 84 76 78
Personnel at the beginning of period 81 73 73
Personnel at the end of period 84 79 81
Earnings per share, EUR 0.013 0.022 0.054
Equity per share, EUR 0.209 0.221 0.240
--------------------------------------------------------------------------------
© 2024 Nasdaq, Inc. All Rights Reserved |