2013-02-13 07:00:07 CET
2013-02-13 07:01:18 CET
REGULATED INFORMATION
Comptel - Interim report (Q1 and Q3)
Comptel Corporation's Financial Statements Bulletin for 2012
Stock exchange release 13 February 2013 at 8.00 am
Net sales increased 7.4 per cent from the previous year. Goodwill impairment
loss and investments in business operations weakened profitability especially
during the first half of the year. Order backlog grew slightly from previous
year.
Key Figures for Fourth Quarter
-- Net sales EUR 21.9 million (Q4 2011: 23.3)
-- Operating profit EUR 1.8 million (2.7)
-- Earnings per share EUR 0.02 (0.00)
-- Order backlog EUR 48.4 million (47.2)
Key Figures for Full Year
-- Net sales EUR 82.4 million (2011: 76.8)
-- Operating result EUR -13.5 million (11.9)
-- Operating result excluding one-off items EUR -0.8 million (3.1)
-- Earnings per share EUR -0.12 (0.07)
-- Number of employees at the year-end 679 (639)
Board of Directors proposes to the Annual General Meeting that no dividend
payment will be made for 2012.
Comptel's net sales are estimated to grow from the previous year in 2013.
Operating profit is estimated to increase to 5 - 10 per cent of net sales.
Characteristically a significant part of Comptel's operating profit and net
sales is generated in the second half of the year.
The full year financial information in this stock exchange release is based on
the company's audited financial statements. The auditor's report was issued on
12 February 2013.
Juhani Hintikka, President and CEO:
”The fourth quarter was the best for 2012 in terms of net sales and operating
profit. We secured two orders of utmost importance. One was a fulfillment deal
and the other an advanced analytics sale. Robi Axiata, a communications service
provider in Bangladesh, automates its customer interaction and boosts the
efficiency of its business operations by deploying Comptel Social Links
analytics solution. The order was the largest analytics sale in Comptel's
history. Comptel has currently 15 Social Links customers.We continued our
strategy execution according to our plans in 2012. Our net sales growth was
stronger than the market's. During the latter part of the year we centralised
our sales in a global organisation with the aim at increasing the efficiency of
our sales. Fulfillment and advanced analytics were the key investment areas in
our R&D. The cost saving program initiated in June aiming at savings of
approximately EUR 10 million annually proceeded according to our targets. We
improved our profitability significantly during the second half of the year.
The performance metrics of our services organisation have improved
significantly as a result of the program. The savings measures taken and the
positive development in the services organisation give us a good starting point
to increase our profitability in 2013. Consequently, improving our
profitability is the most important target of 2013.
During the year we got 13 new customers. We secured 15 significant orders,
valued over EUR 500,000.”
Business Review
In the fourth quarter, Comptel's net sales decreased from the previous year and
were EUR 21.9 million (23.3). Net sales decreased as a result of lower than
expected license sales in December. Full year net sales increased by 7.4 per
cent compared to the previous year and were EUR 82.4 million (76.8). High
services sales contributed to increase in net sales.
In the fourth quarter, operating profit decreased to EUR 1.8 million (2.7),
representing 8.2 per cent (11.5) of net sales. Profitability was impacted by
lower license sales. Full year operating result was EUR -13.5 million (11.9),
which amounts to -16.4 per cent (15.5) of net sales. The negative operating
result was mainly due to the goodwill impairment loss of EUR 10.2 million
booked during the first quarter. Additionally, measures taken to improve
efficiency as well as restructuring of business operations affected the
operating result by EUR 2.5 million. Full year operating result excluding these
one-off items was EUR -0.8 million (3.1), equalling to -1.0 per cent (4.0) of
net sales. The operating result excluding one-off items was weakened by
increased personnel expenses, costs relating to project delivery and marketing
as well as low licenses sales. However, profitability improved significantly
during the second half of the year as a result of the costs savings program
initiated. The aim is to achieve savings of approximately EUR 10 million
annually.
In 2012, net financial items were EUR -0.7 million (-0.8). Result before taxes
was EUR -14.0 million (11.0), which corresponds to -16.9 per cent (14.3) of net
sales. Net profit was EUR -12.8 million (7.6). Earnings per share for the
financial year were EUR -0.12 (0.07).
Tax expense for the financial year was EUR -1.2 million (3.4). Comptel booked a
deferred tax asset of EUR 3.5 million due to the losses incurred in 2012. The
tax expense included EUR 1.7 million (1.2) of withholding taxes due to double
taxation. The cumulative amount of outstanding, non-credited and expensed
double withholding taxes payment since 2004 is EUR 9.2 million.
The Group's order backlog grew slightly from the previous year and was EUR 48.4
million (47.2) at the end of the financial year. Maintenance agreements
represented EUR 27.2 million (24.9) and other order backlog EUR 21.2 million
(22.3) of the total.
Comptel has restated retrospectivelythe cost figures for 2010 and 2011. The
correction lowered the option costs EUR 0.2 million in 2010 and EUR 0.3 million
in 2011. Prior period reported financials have been corrected accordingly. The
changes are described in detail in note 12 in the table part.
During the period under review, Comptel Corporation acquired Xtract Oy, a
software company specialising in analytics, for a total consideration of EUR
3.1 million (enterprise value). By combining the leading analytics capabilities
with its existing software, Comptel will create an offering which will enable
operators to react quickly to events from the network and transform them
automatically into relevant and timely actions that improve customer
experience. Xtract Group was consolidated into Comptel Group financials as of
10 February 2012. The acquisition was financed through Comptel Corporation's
liquid assets. The 20 Xtract employees working in Finland have moved to the
Comptel office in Helsinki and globally as part of the Comptel organisation.
Business Areas
Net sales, 10-12 2012 10-12 2011 Change% 1-12 2012 1-12 2011 Change
EUR million %
--------------------------------------------------------------------------------
Europe East 4.3 3.6 18.8 16.3 12.9 26.4
--------------------------------------------------------------------------------
Europe West 5.7 6.1 -6.7 21.0 19.1 10.0
--------------------------------------------------------------------------------
Asia-Pacific 5.0 5.2 -4.0 21.7 21.1 2.6
--------------------------------------------------------------------------------
Middle East and 4.4 3.9 11.9 14.5 13.7 6.0
Africa
--------------------------------------------------------------------------------
Americas 2.5 4.4 -42.8 8.9 9.9 -10.1
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Total 21.9 23.3 -5.9 82.4 76.8 7.4
--------------------------------------------------------------------------------
Operating profit
by area, EUR
million
--------------------------------------------------------------------------------
Europe East 1.8 0.0 5,270.4 6.3 2.2 189.2
--------------------------------------------------------------------------------
Europe West 2.8 4.8 -41.2 9.7 11.4 -15.1
--------------------------------------------------------------------------------
Asia-Pacific 1.9 2.7 -29.3 9.5 11.9 -20.3
--------------------------------------------------------------------------------
Middle East and 1.4 1.5 -6.6 3.0 5.5 -45.6
Africa
--------------------------------------------------------------------------------
Americas 1.2 3.0 -60.6 3.8 5.7 -33.1
--------------------------------------------------------------------------------
Unallocated costs -7.3 -9.3 -21.0 -45.8 -24.8 85.0
--------------------------------------------------------------------------------
Total 1.8 2.7 -33.4 -13.5 11.9 -213.6
--------------------------------------------------------------------------------
Operating profit,
% of net sales
--------------------------------------------------------------------------------
Europe East 42.4 -1.0 - 38.6 16.9 -
--------------------------------------------------------------------------------
Europe West 49.5 78.6 - 46.3 60.0 -
--------------------------------------------------------------------------------
Asia-Pacific 37.6 51.1 - 43.9 56.5 -
--------------------------------------------------------------------------------
Middle East and 32.0 38.4 - 20.4 39.8 -
Africa
--------------------------------------------------------------------------------
Americas 46.7 67.7 - 42.3 56.9 -
--------------------------------------------------------------------------------
Total 8.2 11.5 - -16.4 15.5 -
--------------------------------------------------------------------------------
Net sales increased significantly from the previous year in Europe East. The
main contribution came from Eurasia. Net sales increased as a result of more
project deliveries in Europe West. Net sales in Asia-Pacific and Middle East
and Africa increased slightly from the previous year. Decrease in Americas net
sales was a result of lower sales in North America.
Increased net sales contributed to the higher operating profit margins in
Europe East. Other business areas were affected by sales mix geared towards
services as well as investments to sales organisation which resulted in lower
operating profit compared to 2011.
In October - December, Comptel received two significant orders.During the
financial year, Comptel received 15 significant orders (23). Out of these 15
orders, 3 were fulfillment, 9 policy control & charge, 2 managed services
and one was analytics order. As significant orders Comptel reports sold
projects and licenses with a value of EUR 500,000 at the minimum.
Net sales 10-12 2012 10-12 2011 Change 1-12 2012 1-12 2011 Change
breakdown, % %
EUR million
--------------------------------------------------------------------------------
Licenses 3.2 7.3 -55.6 16.6 21.1 -21.4
--------------------------------------------------------------------------------
Services 10.6 6.9 53.4 33.2 22.9 45.1
--------------------------------------------------------------------------------
Maintenance 8.0 9.1 -11.5 32.6 32.7 -0.4
agreements
--------------------------------------------------------------------------------
Total 21.9 23.3 -5.9 82.4 76.8 7.4
--------------------------------------------------------------------------------
License sales decreased from the previous year. Service sales experienced
strong growth as a result of more project deliveries as well as sales from new
services. Maintenance revenue consists of maintenance and support of the
delivered systems.
Net sales by sales 10-12 2012 10-12 2011 Change 1-12 2012 1-12 2011 Change
channel, EUR % %
million
--------------------------------------------------------------------------------
Direct sales 17.2 15.8 8.6 62.1 57.1 8.7
--------------------------------------------------------------------------------
Partner sales 4.7 7.4 -37.0 20.3 19.6 3.6
--------------------------------------------------------------------------------
Total 21.9 23.3 -5.9 82.4 76.8 7.4
--------------------------------------------------------------------------------
Direct sales increased from the previous year. Partner sales remained at the
same level compared to 2011.
Financial Position
EUR million 31 Dec 2012 31 Dec 2011 Change %
-------------------------------------------------------------------------------
Statement of financial position total 68.5 71.8 -4.6
-------------------------------------------------------------------------------
Liquid assets 4.8 9.4 -48.8
-------------------------------------------------------------------------------
Trade receivables, gross 24.1 26.7 -9.8
-------------------------------------------------------------------------------
Bad debt provision -1.3 -0.7 84.4
-------------------------------------------------------------------------------
Trade receivables, net 22.8 26.0 -12.3
-------------------------------------------------------------------------------
Accrued income 12.6 10.2 23.1
-------------------------------------------------------------------------------
Deferred income related to partial debiting 2.8 2.1 36.5
-------------------------------------------------------------------------------
Interest-bearing debt 8.4 0.1 12,402.2
-------------------------------------------------------------------------------
Equity ratio, per cent 46.8 66.5 -29.7
-------------------------------------------------------------------------------
Statement of financial position total on 31 December 2012 was EUR 68.5 million
(71.8), of which liquid assets amounted to EUR 4.8 million (9.4). A dividend of
EUR 3.2 million (7.2) was paid during the financial year.
Operating cash flow was EUR -0.6 million (-3.5) in the last quarter and EUR 1.1
million
(-0.0) during the financial year.
The trade receivables were EUR 22.8 million (26.0) at the end of the period.
The accrued income was EUR 12.6 million (10.2). The deferred income related to
partial debiting was EUR 2.8 million (2.1).
Comptel entered into a new loan facility arrangement during the review period.
The facility contains two parts. It includes a term-loan of EUR 7.0 million and
a revolving credit facility of EUR 13.0 million. The term-loan of EUR 7.0 was
withdrawn in full and EUR 1.0 million had been utilised from the revolving
credit facility. The loan facilities are valid until January 2016. The equity
ratio was 46.8 per cent (66.5) and the gearing ratio was 13.1 per cent
(-22.3).
Research and Development (R&D)
EUR million 10-12 10-12 Change 1-12 1-12 Change
2012 2011 % 2012 2011 %
--------------------------------------------------------------------------------
Direct R&D expenditure 4.5 4.6 -1.2 18.6 15.4 20.5
--------------------------------------------------------------------------------
Capitalisation of R&D expenditure -1.3 -0.9 46.2 -6.2 -4.0 55.6
according to IAS 38
--------------------------------------------------------------------------------
R&D depreciation and impairment 0.8 0.7 12.7 2.8 3.4 -16.0
charges
--------------------------------------------------------------------------------
R&D expenditure, net 4.0 4.4 -8.7 15.3 14.8 2.8
--------------------------------------------------------------------------------
Direct R&D expenditure, % of net 20.6 19.6 - 22.5 20.1 -
sales
--------------------------------------------------------------------------------
R&D expenditure increased from the previous year as Comptel actively developed
new products to the market. Direct R&D expenditure represented 22.5 per cent
(20.1) of net sales in the period under review.
Comptel's R&D expenditure was mainly targeted at the service fulfillment
automation of telecom operators and to the management and real-time analysis of
rapidly increasing data traffic. Comptel seeks global market leadership in
these areas where key business challenges of operators and service providers
will be solved. In addition, the company is developing an integrated software
platform which will enable a cost-efficient and solution-based R&D.
In 2012, the company focused on developing its offering within the Fulfillment,
Policy Control & Charging and Social Links product areas. In terms of Social
Links, integrating the acquired Xtract advanced analytics into the Comptel
software platform is a priority. With a combined offering including real-time
analytics, Comptel can help operators to improve customer loyalty as well as
enable individually targeted marketing. Four major software releases were
launched in these respective product areas during 2012.
Investments
EUR million 10-12 2012 10-12 2011 Change 1-12 2012 1-12 2011 Change
% %
--------------------------------------------------------------------------------
Gross investments 0.6 0.4 52.4 4.5 1.0 332.2
in property,
plant and
equipment and
intangible assets
--------------------------------------------------------------------------------
During 2012 gross investments in intangible and tangible assets amounted to EUR
4.5 million (1.0) and comprised of investments in devices, software and
furnishings as well as the acquisition of Xtract corporation. Gross investments
excluding Xtract acquisition were EUR 1.7 million (1.0). The investments were
funded through cash flow from operations.
Personnel
31 Dec 2012 31 Dec 2011 Change %
----------------------------------------------------------------------------
Number of employees at the end of period 679 639 6.3
----------------------------------------------------------------------------
1-12 2012 1-12 2011 Change %
-----------------------------------------------------------------------------
Average number of personnel during the period 700 623 12.4
-----------------------------------------------------------------------------
The number of employees increased as Comptel invested in its R&D and services
organisation. As a result of Xtract acquisition 27 Xtract employees transferred
to Comptel during the review period.
In the last quarter, the personnel expenses were 46.8 per cent of net sales
(40.7). In the financial year, the personnel expenses were 53.5 per cent of net
sales (47.5).
At the end of the year, 31.7 per cent (32.2) of the personnel were located in
Finland, 26.1 per cent (24.1) in Malaysia, 9.7 per cent (8.9) in Bulgaria, 7.7
per cent (6.4) in the United Arab Emirates, 6.8 per cent (7.8) in the United
Kingdom, 3.2 per cent (5.8) in Norway, and 14.8 per cent (14.8) in other
countries where Comptel operates.
Comptel Share
The closing share price of the financial year was EUR 0.40 (0.49). Comptel's
market capitalisation at the end of the year was EUR 42.8 million (52.3).
Comptel share 10-12 2012 10-12 2011 Change 1-12 2012 1-12 2011 Change
% %
--------------------------------------------------------------------------------
Shares traded, 7.6 7.2 5.6 26.7 32.8 -18.6
million
--------------------------------------------------------------------------------
Shares traded, EUR 3.0 4.4 -31.8 13.4 21.0 -36.2
million
--------------------------------------------------------------------------------
Highest price, EUR 0.45 0.72 -37.5 0.63 0.79 -20.3
--------------------------------------------------------------------------------
Lowest price, EUR 0.37 0.48 -22.9 0.37 0.48 -22.9
--------------------------------------------------------------------------------
Of Comptel's outstanding shares, 6.4 per cent (8.4) were nominee registered or
held by foreign shareholders at the end of the financial year.
During the year, Comptel Corporation allotted 111,186 shares to the members of
the Board of Directors as part of their annual compensation and 25,000 shares
to the President and CEO as per the 2011 share-based incentive scheme.
Elisa Corporation notified on 17 January 2012 that its direct ownership in
Comptel Corporation had increased to over the 10% threshold following the
merger of Saunalahti Group Oyj into Elisa Corporation. Elisa Group's ownership
remained unchanged.
Comptel has currently two option schemes.
The share subscription period of 2006 share options A expired on 30 November
2010, share options B on 30 November 2011 and share options C on 30 November
2012. During the subscription period no shares were subscribed.
The Annual General Meeting decided on 16 March 2009 to issue share options to
the key personnel of the Comptel Group as a part of the incentive and
commitment program.
The total number of share options issued is 4,200,000. Of the share options,
1,400,000 are marked with the symbol A, 1,400,000 are marked with the symbol B
and 1,400,000 are marked with the symbol C. The share options may be exercised
to subscribe to a maximum of 4,200,000 new shares in the company or existing
shares held by the company. The issued share options can be exchanged for
shares constituting a maximum total of 3.8 per cent of the company's shares and
votes of the shares, after the potential share subscription, if new shares are
issued in the share subscription.
The share subscription price will be based on the prevailing market price of
the Comptel share on the NASDAQ OMX Helsinki Ltd in April 2009, April 2010 and
April 2011. The current share subscription price for Comptel share option 2009A
is EUR 0.43 per share, which corresponds to the trade volume weighted average
quotation of the share on the NASDAQ OMX Helsinki during 1 April - 30 April
2009 deducted by the dividends and capital repayment paid. The current share
subscription price for Comptel share option 2009B is EUR 0.70 per share, which
corresponds to the trade volume weighted average quotation of the share on the
NASDAQ OMX Helsinki during 1 April - 30 April 2010 deducted by the dividends
and capital repayment paid. The current share subscription price for Comptel
share option 2009C is EUR 0.54 per share, which corresponds to the trade volume
weighted average quotation of the share on the NASDAQ OMX Helsinki during 1
April - 30 April 2011 deducted by the dividends and capital repayment paid.
The share subscription period for share options 2009A is1 November 2011 - 30
November 2013, for share options 2009B 1 November 2012 - 30 November 2014, and
for share options 2009C it will be 1 November 2013 - 30 November 2015.
Comptel's 2009A share options were listed on NASDAQ OMX Helsinki commencing
from 1 November 2011. The trading code is CTL1VEW109 and ISIN code is
FI4000031489. In 2012, a number of 38,500 options A were traded and the closing
price was EUR 0.18.
Comptel's 2009B share options were listed on NASDAQ OMX Helsinki commencing
from 1 November 2012. The trading code is CTL1VEW209 and ISIN code is
FI4000048767. In 2012, no options were traded.
During the financial year 2012, a total of 100,000 share options 2009B and
100,000 share options 2009C have been distributed. During the financial year
2012, a total of number of 100,000 share options 2009B and a number of 150,000
share options 2009C were returned to the company. The rest of the 2009 share
options have been granted to Comptel Communications Oy to be further
distributed. The company has in its possession 540,000 share options 2009A,
275,000 share options 2009B and 155,000 share options 2009C.
The Annual General Meeting of Shareholders has on 26 March 2012 decided on the
issue of share options to the Comptel Group key personnel as a part of the
incentive and commitment program. The Share Options 2012 are part of the
share-based incentive plan approved by the Board of Directors in February 2012.
The option program 2012 differs from the previous option programs introduced by
Comptel. The shareholding of the recipient of the options has impact on the
share options being granted. The commencement of the subscription period for
the share options depends on the fact whether the commercial or financial
targets of Comptel set by the Board of Directors have been achieved. The
targets are net sales growth and increase in earnings per share or the market
capitalisation of Comptel.
The total number of share options issued is 5,100,000. 2,550,000 of the share
options are marked with the symbol A and 2,550,000 are marked with the symbol
B. The share options may be exercised to subscribe to a maximum of 5,100,000
new shares in the company or existing shares held by the company. The issued
share options can be exchanged for shares constituting a maximum total of 4.5
per cent of the company's shares and votes of the shares, after the potential
share subscription, if new shares are issued in the share subscription.
The share subscription price for share options 2012A and 2012B is based on the
trade volume weighted average quotation of the share on NASDAQ OMX Helsinki
Ltd. during 27 February - 23 March 2012. Each year dividends and repayments of
equity will be deducted from the share subscription price. The current share
subscription price is EUR 0.57 per share. The share subscription period for
share options 2012A will be 2 May 2015 - 30 November 2017, and for share
options 2012B, 2 May 2016 - 30 November 2017.
During 2012 a total of 1,914,759 share options 2012A and 1,914,759 share
options 2012B were distributed to the key personnel of Comptel Group. A number
of 50,688 share options 2012A and a number of 50,688 share options 2012B were
returned to the company during 2012. The rest of the 2012 share options have
been granted to Comptel Communications Oy to be further distributed. The
company holds a number of 685,929 share options 2012A and a number of 685,929
share options 2012B.
The President and CEO has a share-based incentive plan. The aim of the plan is
to combine the objectives of the shareholders and the CEO of Comptel
Corporation in order to increase the value of the company and to commit the CEO
to the company. The prerequisite for participation in the plan and receipt of
reward from the performance periods is that the CEO owns company's shares or
acquires them up to the number predetermined by the Board of Directors which is
230,000 shares. The ownership requirement is valid until 31 December 2015.
Furthermore, the potential reward from the plan is tied to the validity of the
CEO's employment contract.
The Board of Directors of Comptel Corporation approved in February 2012 a new
share-based incentive plan for the Group key personnel.
The aim of the new plan is to combine the objectives of the shareholders and
the target people in order to increase the value of the company, to commit the
target people to the company, and to offer them a competitive reward plan based
on long-term shareholding in the company.
The new plan includes a Matching Share Plan 2012 and Stock Options 2012,
approved by the Annual General Meeting of Shareholders of the company in March
2012.
The Matching Share Plan includes two performance periods, both beginning on 2
May 2012. The performance periods will end on 2 May 2015 and on 2 May 2016. The
prerequisite for participation in the plan and receipt of reward for the
performance periods provides that a target person owns the company's shares or
acquires them up to the number predetermined by the Board of Directors.
Furthermore, the potential reward from the plan is tied to the validity of the
target person's employment or service or contractual relation. No reward will
generally be paid if a target person's employment or service ends before the
reward payment.
Rewards from the Plan will be paid partly in the company's shares and partly in
cash in 2015 and in 2016. The cash proportion is intended to cover taxes and
tax-related costs arising from the reward to a target person. The total amount
of rewards to be paid on the basis of the Plan is an approximate maximum of
1,050,000 Comptel Corporation shares and a cash payment corresponding to the
value of the shares, multiplied by 1.5, in the maximum.
There were 35 persons in the plan at the end of 2012.
The company held 161,219 of its own shares at the end of the financial year,
which is 0.15 per cent of the total number of its shares. The total
counter-book value of the shares held by the company was EUR 3,224.
The Annual General Meeting (AGM), held on 26 March 2012, approved the proposal
of Board of Directors that a dividend of EUR 0.03 per share be paid for 2011.
The AGM authorised the Board of Directors to decide on share issues amounting
to a maximum of 21,400,000 new shares and on repurchase of the company's own
shares up to a maximum number of 10,700,000 shares. The authorisations are
valid until 30 June 2013. However, the authorisations pertaining to the
share-based incentive schemes are valid five years from the date of AGM.
Corporate Governance
The Annual General Meeting, held on 26 March 2012, elected the following
members to the Board of Directors: Mr Pertti Ervi, Mr Hannu Vaajoensuu, Mr
Petteri Walldén, Mrs Eriikka Söderström and Mr Antti Vasara. In its meeting
held after the AGM, the Board of Directors elected Mr Pertti Ervi as chairman
and Mr Hannu Vaajoensuu as vice chairman. The Board did not set up any
committees in its first meeting.
The Annual General Meeting appointed Ernst & Young Oy as the company's auditor.
Mr Heikki Ilkka is acting as the principal auditor.
After the organisation changes implemented in October 2012 the members of the
Executive Board included, in addition to President and CEO Mr Juhani Hintikka,
Mr Mauro Carobene (CMO), Mr Antti Koskela (CTO), Mr Kari Onniselkä (Services),
Mr Mikko Hytönen (CFO), Mrs Niina Pesonen (HR) and Mrs Ulla Koivukoski
(Marketing and Communications).
In April, Comptel Corporation and Cisco Systems Inc. settled the dispute under
arbitration concerning Comptel's use of a certain sub-set of Axioss software
that was sold to Cisco and simultaneously licensed back to Comptel for use in
the current release of Comptel Fulfillment. Cisco brought the matter to the
London Court of International Arbitration in December 2011. In accordance with
the settlement, the parties have agreed to withdraw all their claims against
each other and the arbitration process has thereby been terminated. It has been
agreed that no financial compensation will be paid between the parties. Comptel
will continue in the fulfillment business and will, consistent with the terms
of Cisco's license back to Comptel, support its existing Axioss and Comptel
Fulfillment customers.
Near-term Risks and Uncertainties
Comptel develops dynamic end-to-end solutions for leading operators globally in
the telecom field. This requires Comptel to understand correctly the trends
taking place in its business environment and the needs of its customers and
resellers by each region. Failure to identify market conditions, address
customers' needs and develop its products in a timely way may significantly
undermine the growth of Comptel's business and its profitability.
Characteristics to Comptel's field of industry are significant quarterly
variations of net sales and profit, which are related to customers' purchasing
behaviour and the timing of major single deals.
Comptel's business consists of deliveries of large productised IT system and
the value of a single project may be several million euros. Therefore, the risk
or credit risk associated with a single project or an individual customer may
be significant. Furthermore, some of Comptel's customers operate in countries
that are or have been war zone which in part may increase credit risk.
Comptel operates globally so it is exposed to risks arising from different
currency positions. Exchange rate changes between the Euro, which is the
company's reporting currency, and the US Dollar, UK Pound Sterling and
Malaysian Ringgit affect the company's net sales, expenses and net profit.
The application process to prevent Comptel's double taxation is still pending
with the Ministry of Finance in Finland. However, the process between the
states is very slow and the timing of a change is hard to forecast. The
interpretation of tax treaties may result in different views between the
countries in questions. This could mean that the double taxation will prevail.
The risks and uncertainties of Comptel are described more in detail in the
company's financial statements and the Board of Directors' report for 2012.
Events after the Reporting Period
There were no significant events after the reporting period.
Outlook
Comptel's net sales are estimated to grow from the previous year in 2013.
Operating profit is estimated to increase to 5 - 10 per cent of net sales.
Characteristically a significant part of Comptel's operating profit and net
sales is generated in the second half of the year.
Board of Directors' Proposal for the Disposal of Profits
The Group parent company's distributable equity on 31 December 2012 was EUR
1,840,001.68 (15,026,574.95).
The Board of Directors proposes to the Annual General Meeting that no dividend
payment will be made for 2012.
TABLE PART
The full year financial information in this stock exchange release is based on
the company's audited financial statements. The auditor's report was issued on
12 February 2013. The release has been prepared in accordance with IAS 34,
Interim Financial Reporting, as adopted by the EU.
In fourth quarter of 2012 Comptel decided to discontinue applying hedge
accounting as defined in IAS 39. Other changes in accounting principles and
methods of calculation are described in note 1.
Comptel has adopted IAS 8 to correct errors discovered in the figures for the
reporting periods 2010, 2011 and Q1/2012. The nature of the error is described
in note 12.
All figures in the financial report have been rounded and consequently the sum
of the individual figures can deviate from the sum figure.
Consolidated Statement of Comprehensive 1 Jan - 1 Jan - 1 Oct - 1 Oct -
Income 31 Dec 31 Dec 31 Dec 31 Dec
(EUR 1,000) 2012 2012* 2012 2011*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 82,428 76,751 21,889 23,269
--------------------------------------------------------------------------------
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Other operating income 9 19,802 6 87
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Materials and services -5,477 -5,285 -1,121 -1,997
--------------------------------------------------------------------------------
Employee benefits -44,108 -36,454 -10,244 -9,475
--------------------------------------------------------------------------------
Depreciation, amortisation and -14,619 -13,635 -1,320 -1,005
impairment charges
--------------------------------------------------------------------------------
Other operating expenses -31,749 -29,277 -7,423 -8,194
--------------------------------------------------------------------------------
-95,954 -84,651 -20,108 -20,672
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss -13,517 11,902 1,787 2,684
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 1,042 536 65 -482
--------------------------------------------------------------------------------
Financial expenses -1,739 -1,289 -137 -61
--------------------------------------------------------------------------------
Share of result of associated companies 259 -187 259 -187
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss before income taxes -13,955 10,963 1,975 1,955
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes 1,152 -3,373 228 -1,584
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period -12,804 7,590 2,203 371
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
Cash flow hedges 781 -727 -118 -314
--------------------------------------------------------------------------------
Translation differences 46 175 -104 288
--------------------------------------------------------------------------------
Income tax relating to components of -191 177 31 70
other comprehensive income
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income for the -12,168 7,216 2,011 415
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company -12,804 7,590 2,203 371
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income attributable
to:
--------------------------------------------------------------------------------
Equity holders of the parent company -12,168 7,216 2,011 415
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders of the parent company:
--------------------------------------------------------------------------------
---------------------------------------------------------
Earnings per share, EUR -0.12 0.07 0.02 0.00
---------------------------------------------------------
Earnings per share, diluted, EUR -0.12 0.07 0.02 0.00
---------------------------------------------------------
*Year 2011 error has been corrected.
Consolidated Statement of Financial Position (EUR 31 Dec 2012 31 Dec 2011
1,000)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Assets
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Goodwill 2,646 10,832
--------------------------------------------------------------------------------
Other intangible assets 13,350 9,255
--------------------------------------------------------------------------------
Tangible assets 1,518 1,381
--------------------------------------------------------------------------------
Investments in associates 1,076 817
--------------------------------------------------------------------------------
Available-for sale financial assets 87 87
--------------------------------------------------------------------------------
Deferred tax assets 3,804 636
--------------------------------------------------------------------------------
Other non-current receivables 493 409
--------------------------------------------------------------------------------
22,974 23,418
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Trade and other current receivables 40,617 38,919
--------------------------------------------------------------------------------
Current tax assets 43 22
--------------------------------------------------------------------------------
Cash and cash equivalents 4,817 9,401
--------------------------------------------------------------------------------
45,476 48,343
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 68,451 71,761
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity and liabilities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity attributable to equity holders of the parent
company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Share capital 2,141 2,141
--------------------------------------------------------------------------------
Fund of invested non-restricted equity 243 178
--------------------------------------------------------------------------------
Translation differences -636 -682
--------------------------------------------------------------------------------
Retained earnings 25,208 40,169
--------------------------------------------------------------------------------
Total equity 26,956 41,805
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------------------------
Deferred tax liabilities 3,302 4,798
--------------------------------------------------------------------------------
Provisions 787 1,529
--------------------------------------------------------------------------------
Non-current financial liabilities 5,275 29
--------------------------------------------------------------------------------
9,364 6,355
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current liabilities
--------------------------------------------------------------------------------
Provisions 1,511 1,221
--------------------------------------------------------------------------------
Current financial liabilities 3,082 38
--------------------------------------------------------------------------------
Trade and other current liabilities 27,230 21,615
--------------------------------------------------------------------------------
Current tax liabilities 307 726
--------------------------------------------------------------------------------
32,130 23,600
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total liabilities 41,494 29,956
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity and liabilities 68,451 71,761
--------------------------------------------------------------------------------
Consolidated Statement of Cash Flows 1 Jan - 31 1 Jan - 31
(EUR 1,000) Dec 2012 Dec 2011*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from operating activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period -12,804 7,590
--------------------------------------------------------------------------------
Adjustments:
--------------------------------------------------------------------------------
Non-cash transactions or items that are not part of 15,815 -4,756
cash flows from operating activities
--------------------------------------------------------------------------------
Interest and other financial expenses 228 63
--------------------------------------------------------------------------------
Interest income -412 -56
--------------------------------------------------------------------------------
Income taxes -1,152 3,373
--------------------------------------------------------------------------------
Change in working capital:
--------------------------------------------------------------------------------
Change in trade and other current receivables -592 -4,903
--------------------------------------------------------------------------------
Change in trade and other current liabilities 4,307 1,211
--------------------------------------------------------------------------------
Change in provisions -452 796
--------------------------------------------------------------------------------
Interest paid -312 -63
--------------------------------------------------------------------------------
Interest received 17 48
--------------------------------------------------------------------------------
Income taxes paid and tax returns received -3,551 -3,350
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash from operating activities 1,092 -47
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from investing activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Acquisition of subsidiaries, net of cash acquired -1,812 -
--------------------------------------------------------------------------------
Investments in tangible assets -1,044 -434
--------------------------------------------------------------------------------
Investments in intangible assets -417 -558
--------------------------------------------------------------------------------
Investments in development projects -6,101 -3,965
--------------------------------------------------------------------------------
Proceeds from sale of intangible assets - 21,903
--------------------------------------------------------------------------------
Change in other non-current receivables -32 -58
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash used in investing activities -9,406 16,888
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from financing activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Dividends paid -3,207 -7,242
--------------------------------------------------------------------------------
Capital repayment - -7,473
--------------------------------------------------------------------------------
Proceeds from borrowings 29,000 -
--------------------------------------------------------------------------------
Repayment of borrowings -22,020 -
--------------------------------------------------------------------------------
Lease payments -38 -38
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash used in financing activities 3,735 -14,753
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in cash and cash equivalents -4,579 2,088
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the 9,401 7,028
period
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 4,817 9,401
--------------------------------------------------------------------------------
Change -4,585 2,373
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Effects of changes in foreign exchange rates -5 286
--------------------------------------------------------------------------------
*Year 2011 error has been corrected.
Consolidated Statement of Changes in Equity
--------------------------------------------------------------------------------
-
Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
-
EUR 1,000 Share Other Translati Fair Treasur Retained Total
capita reserv on value y earnings
l es differenc reserve shares
es
--------------------------------------------------------------------------------
Equity at 2,141 7,575 -858 -40 -600 40,927 49,146
31 Dec 2010
--------------------------------------------------------------------------------
Dividends -7,473 -7,473
--------------------------------------------------------------------------------
Capital -7,473 -7,473
repayment
--------------------------------------------------------------------------------
Transfer of 76 225 -225 76
treasury shares
--------------------------------------------------------------------------------
Share-based 314 314
compensation*
--------------------------------------------------------------------------------
Total 175 -550 7,590 7,216
comprehensive
income for the
period*
--------------------------------------------------------------------------------
Equity at 2,141 178 -682 -589 -375 41,133 41,805
31 Dec 2011
--------------------------------------------------------------------------------
*Year 2011 error has been corrected.
Consolidated Statement of Changes in Equity
--------------------------------------------------------------------------------
-
Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
-
EUR 1,000 Share Other Translati Fair Treasur Retained Total
capita reserv on value y earnings
l es differenc reserve shares
es
--------------------------------------------------------------------------------
Equity at 2,141 178 -682 -589 -375 41,133 41,805
31 Dec 2011
--------------------------------------------------------------------------------
Dividends -3,207 -3,207
--------------------------------------------------------------------------------
Transfer of 66 14 -14 66
treasury
shares
--------------------------------------------------------------------------------
Share-based 460 460
compensation
--------------------------------------------------------------------------------
Total 46 590 -12,804 -12,168
comprehensive
income for the
period
--------------------------------------------------------------------------------
Equity at 2,141 243 -636 0 -361 25,568 29,956
31 Dec 2012
--------------------------------------------------------------------------------
Notes
1. Application of new or amended standards and interpretations
On 1 January 2012 the Group adopted the following new and amended standards and
interpretations endorsed by the EU and that are applicable to Comptel:
Amendments to IFRS 7 Financial Instruments: Disclosures (effective for
financial years beginning on or after 1 July 2011). The amendments will promote
transparency in the reporting of transfer transactions and improve users'
understanding of the risk exposures relating to transfers of financial
instruments and the effect of those risks on an entity's financial position,
particularly those involving securitisation of financial assets.
2. Segment information
Net sales by segment
EUR 1,000 1 Jan - 1 Jan - 1 Oct - 1 Oct -
31 Dec 2012 31 Dec 2011 31 Dec 2012 31 Dec 2011
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Europe East 16,312 12,910 4,258 3,585
---------------------------------------------------------------------------
Europe West 20,975 19,074 5,715 6,125
---------------------------------------------------------------------------
Asia-Pacific 21,665 21,109 5,012 5,219
---------------------------------------------------------------------------
Middle East and Africa 14,541 13,716 4,362 3,900
---------------------------------------------------------------------------
Americas 8,934 9,942 2,542 4,441
---------------------------------------------------------------------------
Group total 82,428 76,751 21,889 23,269
---------------------------------------------------------------------------
Operating profit/loss by segment
EUR 1,000 1 Jan - 1 Jan - 1 Oct - 1 Oct -
31 Dec 31 Dec 31 Dec 31 Dec
2012 2011* 2012 2011*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Europe East 6,304 2,180 1,805 -35
--------------------------------------------------------------------------------
Europe West 9,712 11,442 2,828 4,813
--------------------------------------------------------------------------------
Asia-Pacific 9,504 11,919 1,886 2,667
--------------------------------------------------------------------------------
Middle East and Africa 2,967 5,458 1,398 1,496
--------------------------------------------------------------------------------
Americas 3,782 5,657 1,186 3,007
--------------------------------------------------------------------------------
Group unallocated expenses -45,786 -24,753 -7,316 -9,264
--------------------------------------------------------------------------------
Group operating profit/loss -13,517 11,902 1,787 2,684
total
--------------------------------------------------------------------------------
Financial income and expenses -697 -753 -72 -543
--------------------------------------------------------------------------------
Share of result of associated 259 -187 259 -187
companies
--------------------------------------------------------------------------------
Group profit/loss before income -13,955 10,963 1,975 1,955
taxes
--------------------------------------------------------------------------------
*Year 2011 error has been corrected.
3. Business combinations
On 9 February 2012, Comptel Corporation acquired all shares of Xtract Oy, a
Finnish software company specialising in analytics.
By acquiring Xtract the company creates a unique offering by combining world
class analytics capabilities with its existing assets. This offering enables
operators to react quickly to events from the network and transform them
automatically into relevant and timely actions that improve the customer
experience.
The total consideration (enterprise value) was EUR 3,100 thousand. The actual
purchase price EUR 2,075 thousand was paid in cash.
The goodwill according to IFRS 3 is EUR 1,993 thousand after the fair value
allocations reflected in net assets. EUR 215 thousand was recognised in
intangible assets which are amortised over five years.
The goodwill is attributable to the skilled workforce of Xtract and the
utilisation potential of Comptel's existing sales channel to promote Xtract
products.
The values of the assets and liabilities arising from the acquisition were as
follows:
EUR 1,000 Recognised fair values on
acquisition
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Technology (incl. in other intangible 840
assets)
--------------------------------------------------------------------------------
Other intangible assets 1
--------------------------------------------------------------------------------
Machinery and equipment 6
--------------------------------------------------------------------------------
Trade receivables and other receivables 842
--------------------------------------------------------------------------------
Cash and cash equivalents 263
--------------------------------------------------------------------------------
Total assets 1,952
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Deferred tax liabilities 53
--------------------------------------------------------------------------------
Other non-interest bearing liabilities 597
--------------------------------------------------------------------------------
Interest bearing liabilities 1,220
--------------------------------------------------------------------------------
Total liabilities 1,870
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net assets 82
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Acquisition cost 2,075
--------------------------------------------------------------------------------
Goodwill 1,993
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Purchase price paid in cash 2,075
--------------------------------------------------------------------------------
Cash and cash equivalents in acquired -263
subsidiary
--------------------------------------------------------------------------------
Total net cash outflow on the acquisition 1,812
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Comptel has expensed acquisition-related consultation fees of EUR 145 thousand.
The fees are included in other operating expenses.
Xtract's net sales EUR 1,145 thousand and loss EUR 1,523 thousand for the
period 10 February to 31 December 2012 are included in the comprehensive
statement of income. Comptel Group net sales for 1 January - 31 December 2012
would have been EUR 82,793 thousand and loss EUR 13,457 thousand if Xtract had
been consolidated from the beginning of the year 2012.
4. Impairment loss on goodwill
Comptel changed the allocation method of goodwill during the first quarter of
the year. Due to the change, an impairment testing was carried out on new cash
generating unit level. Previously, it had not been possible to allocate
goodwill specifically to any segment or cash generating unit. As a result of
impairment testing Comptel recorded an impairment loss of EUR 10,179 thousand
in the first quarter result.
In the test, the recoverable amount of goodwill is determined based on value in
use calculation. The value in use is computed based on discounted forecast cash
flows. The cash flow forecasts rely on the plans approved by the Board of
Directors and management concerning in particular profitability and the growth
rate of net sales. The plans cover a five-year period taking into account the
recent development of business. The used pre-tax discount rate is 16.4%.
The cash flows after the five-year period have been forecast by estimating the
future growth rate of net sales to be 0%.
The use of the testing model requires making estimates and assumptions
concerning investments, market growth and general interest rate level.
5. Income tax
Income tax according to the statement of comprehensive income for the period
was EUR 1,152 thousand positive (EUR 3,373 thousand negative in 2011) as a
change of EUR 2,494 thousand in deferred tax liabilities was booked in
connection with the impairment of goodwill. Comptel booked a deferred tax asset
of EUR 3,487 million due to the losses incurred in 2012.
In 2006, Adjustment of the Tax Office for Major Corporations refused to accept
the crediting of taxes withheld at source in taxation of 2004 and 2005.
The application process to prevent Comptel's double taxation is still pending
with the Ministry of Finance in Finland. However, the process between the
states is very slow and the timing of a change is hard to forecast. The
interpretation of tax treaties may result in different views between the
countries in questions. This could mean that the double taxation will prevail.
According to the Board of Adjustment's decision currently in force, Comptel
Corporation has expensed taxes withheld at source amounting to EUR 1,680
thousand in January - December (EUR 1,189 thousand).
6. Tangible assets
EUR 1,000 1 Jan - 31 Dec 2012 1 Jan - 31 Dec 2011
---------------------------------------------------
---------------------------------------------------
Additions 1,044 479
---------------------------------------------------
Disposals -1 -2
---------------------------------------------------
7. Related party transactions
The Comptel Group have a related party relationship with its associate, the
Board of Directors, the Executive Board and also with people and companies
under Comptel management's influence.
Transactions, which have been entered into with related parties are as follows:
EUR 1,000 1 Jan - 31 Dec 2012 1 Jan - 31 Dec 2011
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Associate
-------------------------------------------------------------------------
Other operating income 2 -
-------------------------------------------------------------------------
Purchases of goods and services - 156
-------------------------------------------------------------------------
Interest income 8 8
-------------------------------------------------------------------------
-------------------------------------------------------------------------
EUR 1,000 31 Dec 2012 31 Dec 2011
-------------------------------------------------
-------------------------------------------------
Associate
-------------------------------------------------
Non-current receivables 98 91
-------------------------------------------------
Trade receivables 1 -
-------------------------------------------------
-------------------------------------------------
Remuneration to key management
The key management personnel compensation includes the employee benefits of the
members of the Board of Directors and the Executive Board.
EUR 1,000 1 Jan - 31 Dec 1 Jan - 31 Dec
2012 2011
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Salaries and other short-term employee 2,033 2,942
benefits
--------------------------------------------------------------------------------
Share-based payments 233 207
--------------------------------------------------------------------------------
Total 2,267 3,148
--------------------------------------------------------------------------------
Guarantees and other commitments
EUR 1,000 31 Dec 2012 31 Dec 2011
------------------------------------
------------------------------------
Guarantees 70 -
------------------------------------
8. Commitments
Minimum lease payments on non-cancellable office facilities and other operating
leases are payable as follows:
EUR 1,000 31 Dec 2012 31 Dec 2011
----------------------------------------------------
----------------------------------------------------
Less than one year 2,934 3,377
----------------------------------------------------
Between one and five years 6,087 7,909
----------------------------------------------------
Total 9,021 11,286
----------------------------------------------------
The group had no material capital commitments for the purchase of tangible
assets at 31 December 2012 and 31 December 2011.
9. Contingent liabilities
EUR 1,000 31 Dec 2012 31 Dec 2011
---------------------------------------------
---------------------------------------------
Bank guarantees 2,969 1,847
---------------------------------------------
Corporate mortgages 200 -
---------------------------------------------
EUR 1,000 31 Dec 2012 31 Dec 2011
--------------------------------------------------------------------
--------------------------------------------------------------------
Contingent liabilities on behalf of others
--------------------------------------------------------------------
Guarantees 123 -
--------------------------------------------------------------------
10. Key figures
Financial summary 1 Jan 31 Dec 1 Jan - 31 Dec
2012 2011*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales, EUR 1,000 82,428 76,751
--------------------------------------------------------------------------------
Net sales, change % 7.4 -1.5
--------------------------------------------------------------------------------
Operating profit/loss, EUR 1,000 -13,517 11,902
--------------------------------------------------------------------------------
Operating profit/loss, change % -213.6 31.3
--------------------------------------------------------------------------------
Operating profit/loss, as % of net sales -16.4 15.5
--------------------------------------------------------------------------------
Profit/loss before taxes, EUR 1,000 -13,955 10,963
--------------------------------------------------------------------------------
Profit/loss before taxes, as % of net sales -16.9 14.3
--------------------------------------------------------------------------------
Return on equity, % -37.2 16.7
--------------------------------------------------------------------------------
Return on investment, % -36.3 23.6
--------------------------------------------------------------------------------
Equity ratio, % 46.8 66.5
--------------------------------------------------------------------------------
Gross investments in tangible and intangible 4,484 1,037
assets, EUR 1,0001)
--------------------------------------------------------------------------------
Gross investments in tangible and intangible 5.4 1.4
assets, as % of net sales
--------------------------------------------------------------------------------
Capitalisations according to IAS 38 to 6,170 3,965
intangible assets
--------------------------------------------------------------------------------
Research and development expenditure, EUR 1,000 18,581 15,419
--------------------------------------------------------------------------------
Research and development expenditure, 22.5 20.1
as % of net sales
--------------------------------------------------------------------------------
Order backlog, EUR 1,000 48,368 47,217
--------------------------------------------------------------------------------
Average number of employees during the period 700 623
--------------------------------------------------------------------------------
Interest-bearing net liabilities, EUR 1,000 3,541 -9,334
--------------------------------------------------------------------------------
Gearing ratio, % 13.1 -22.3
--------------------------------------------------------------------------------
*Year 2011 error has been corrected.
Per share data 1 Jan - 1 Jan -
31 Dec 2012 31 Dec 2011*
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Earnings per share (EPS), EUR -0.12 0.07
------------------------------------------------------------------------------
EPS diluted, EUR -0.12 0.07
------------------------------------------------------------------------------
Equity per share, EUR 0.25 0.39
------------------------------------------------------------------------------
Dividend per share, EUR2) 0.00 0.03
------------------------------------------------------------------------------
Dividend per earnings, % - 42.2
------------------------------------------------------------------------------
Effective dividend yield, % - 6.1
------------------------------------------------------------------------------
P/E ratio -3.3 6.9
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Adjusted number of shares at the end of the period 107,054,810 107,054,810
------------------------------------------------------------------------------
of which the number of treasury shares 161,219 292,685
------------------------------------------------------------------------------
Outstanding shares 106,893,591 106,762,125
------------------------------------------------------------------------------
Adjusted average number of shares during the period 106,863,518 106,775,223
------------------------------------------------------------------------------
Average number of shares, dilution included 107,650,327 106,775,223
------------------------------------------------------------------------------
*Year 2011 error has been corrected.
1) The figure does not include investments in development projects.
2) The Board's proposal
11. Definition of key figures
--------------------------------------------------------------------------------
Operating margin % = Operating profit/loss x100
------------------------------------ -----------------------------------------
------------------------------------
Net sales
------------------------------------ -----
------------------------------------ -----
Profit margin (before income taxes) = Profit/loss before taxes x100
%
------------------------------------ -----------------------------------------
------------------------------------
Net sales
------------------------------------ -----
------------------------------------ -----
Return on equity % (ROE) = Profit/loss x100
------------------------------------ -----------------------------------------
------------------------------------
Total equity (average during year)
------------------------------------ -----
------------------------------------ -----
Return on investment % (ROI) = Profit/loss before taxes + x100
financial expenses
------------------------------------ -----------------------------------------
------------------------------------ Total equity + interest bearing
liabilities (average during the
year)
------------------------------------ -----
------------------------------------ -----
Equity ratio % = Total equity x100
------------------------------------ -----------------------------------------
------------------------------------
Statement of financial position
total - advances received
------------------------------------ -----
------------------------------------ -----
Gross investments in tangible and = Gross investments in tangible and x100
intangible assets, as % of net intangible assets
sales
------------------------------------ -----------------------------------------
------------------------------------
Net sales
------------------------------------ -----
------------------------------------ -----
Research and development = Research and development x100
expenditure, as % of net sales expenditure
------------------------------------ -----------------------------------------
------------------------------------
Net sales
------------------------------------ -----
------------------------------------ -----
Gearing ratio % = Interest-bearing liabilities - x100
cash and cash equivalents
------------------------------------ -----------------------------------------
------------------------------------
Total equity
------------------------------------ -----
------------------------------------ -----
Earnings per share (EPS) = Profit/loss for the financial year
attributable to equity
shareholders
------------------------------------ -----------------------------------------
------------------------------------
Average number of outstanding
shares for the financial year
------------------------------------ -----
------------------------------------ -----
Equity per share = Equity attributable to the equity
holders of the parent company
------------------------------------ -----------------------------------------
------------------------------------
Adjusted number of shares at the
end of period
------------------------------------ -----
------------------------------------ -----
Dividend per share = Dividend
------------------------------------ -----------------------------------------
------------------------------------
Adjusted number of shares at the
end of period
------------------------------------ -----
------------------------------------ -----
Dividend per earnings % = Dividend per share x100
------------------------------------ -----------------------------------------
------------------------------------
Earnings per share (EPS)
------------------------------------ -----
------------------------------------ -----
Effective dividend yield % = Dividend per share x100
------------------------------------ -----------------------------------------
------------------------------------
Share closing price at end of
period
------------------------------------ -----
------------------------------------ -----
P/E ratio = Share closing price at end of
period
------------------------------------ -----------------------------------------
------------------------------------
Earnings per share (EPS)
------------------------------------ -----
--------------------------------------------------------------------------------
12. Corrections to figures reported in 2010, 2011 and Q1/2012
An error was discovered in the line item Employee benefits for the periods
2010, 2011 and Q1/2012. The errors have been corrected retrospectively
according to IAS 8. The errors were related to the calculation of option costs.
The correction of the error in 2010 did not have an impact on the amount of
equity and no restated opening balances are presented. The key figures for the
financial year 2010 have been restated and are presented in the financial
statements for 2012. The statement of comprehensive income for 2011 was changed
as follows:
Reported Corrected
--------------------------------------------------------------------------------
Consolidated Statement of Comprehensive Income 1 Jan - 31 Dec 1 Jan - 31 Dec
(EUR 1,000) 2011 2011
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 76,751 76,751
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other operating income 19,802 19,802
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Materials and services -5,285 -5,285
--------------------------------------------------------------------------------
Employee benefits -36,747 -36,454
--------------------------------------------------------------------------------
Depreciation, amortisation and impairment -13,635 -13,635
charges
--------------------------------------------------------------------------------
Other operating expenses -29,277 -29,277
--------------------------------------------------------------------------------
-84,944 -84,651
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss 11,609 11,902
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 536 536
--------------------------------------------------------------------------------
Financial expenses -1,289 -1,289
--------------------------------------------------------------------------------
Share of result of associated companies -187 -187
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss before income taxes 10,669 10,963
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -3,373 -3,373
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period 7,297 7,590
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
Cash flow hedges -727 -727
--------------------------------------------------------------------------------
Translation differences 175 175
--------------------------------------------------------------------------------
Income tax relating to components of other 177 177
comprehensive income
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income for the period 6,922 7,216
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 7,297 7,590
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 6,922 7,216
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders of the parent company:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.07 0.07
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR 0.07 0.07
--------------------------------------------------------------------------------
The earnings per share figure has also been restated. Due to the rounding it
did not have impact on the key figure. The correction did not impact the amount
of equity.
The restated quarterly figures for 2011 and Q1/2012 are as follows:
Consolidated Statement of 1-3/201 4-6/201 7-9/201 10-12/2 2011 1-3/201
Comprehensive Income 1 1 1 011 2
(EUR 1,000)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 16,825 20,016 16,640 23,269 76,751 19,926
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other operating income 4 12 19,700 87 19,802 1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Materials and services -773 -1,244 -1,271 -1,997 -5,285 -1,622
--------------------------------------------------------------------------------
Employee benefits -8,783 -8,986 -9,210 -9,475 -36,454 -10,541
--------------------------------------------------------------------------------
Depreciation, amortisation -1,359 -1,243 -10,027 -1,005 -13,635 -11,128
and impairment charges
--------------------------------------------------------------------------------
Other operating expenses -6,006 -7,279 -7,796 -8,194 -29,277 -8,538
--------------------------------------------------------------------------------
-16,921 -18,753 -28,305 -20,672 -84,651 -31,829
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss -92 1,275 8,035 2,684 11,902 -11,901
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 249 153 617 -482 536 437
--------------------------------------------------------------------------------
Financial expenses -415 -253 -560 -61 -1,289 -914
--------------------------------------------------------------------------------
Share of result of - - - -187 -187 -
associated companies
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss before income -258 1,175 8,092 1,955 10,963 -12,379
taxes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -1,329 -946 486 -1,584 -3,373 2,094
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period -1,587 229 8,577 371 7,590 -10,285
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
Cash flow hedges 453 -101 -764 -314 -727 742
--------------------------------------------------------------------------------
Translation differences -63 46 -96 288 175 3
--------------------------------------------------------------------------------
Income tax relating to -118 26 199 70 177 -182
components of other
comprehensive income
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income -1,315 200 7,916 415 7,216 -9,721
for the period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss attributable
to:
--------------------------------------------------------------------------------
Equity holders of the -1,587 229 8,577 371 7,590 -10,285
parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income
attributable to:
--------------------------------------------------------------------------------
Equity holders of the -1,315 200 7,916 415 7,216 -9,721
parent company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders of the parent
company:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR -0.01 0.00 0.08 0.00 0.07 -0.10
--------------------------------------------------------------------------------
Earnings per share, -0.01 0.00 0.08 0.00 0.07 -0.10
diluted, EUR
--------------------------------------------------------------------------------
Comptel Corporation´s Annual General Meeting will be held on 20 March 2013 at 3
pm in Helsinki.
The annual report for 2012 can be obtained from Comptel´s website
www.comptel.com in week 9.
Schedule for Comptel's interim reports in 2013:
January-March 17 April 2013
January-June 16 July 2013
January-September 16 October 2013
COMPTEL CORPORATION
Board of Directors
Additional information:
Mr Juhani Hintikka, President and CEO, tel. +358 9 700 1131
Mr Mikko Hytönen, CFO, tel. +358 40 758 5801
Ms Ulla Koivukoski, SVP Marketing and Communications, tel. +358 400 481 870
Distribution:
NASDAQ OMX Helsinki
Major media
www.comptel.com
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