2013-10-23 08:00:03 CEST
2013-10-23 08:00:08 CEST
REGULATED INFORMATION
SSH Communications Security Oyj - Interim report (Q1 and Q3)
SSH COMMUNICATIONS SECURITY CORPORATION INTERIM REPORT, JANUARY 1 – SEPTEMBER 30, 2013
Helsinki, Finland, 2013-10-23 08:00 CEST (GLOBE NEWSWIRE) -- SSH COMMUNICATIONS
SECURITY CORPORATION INTERIM REPORT OCTOBER 23, 2013 AT 9:00 A.M.
SUMMARY Q3
Net sales continued to grow moderately (+8%), results negative due to strong
investments on future growth and timing of new deals.
July-September
- Net sales totaled EUR 3.1 million, up by 8.4% year on year (EUR 2.8 million
in 7-9/2012).
- Operating loss amounted to EUR -0.4 million (profit EUR 0.4 million in
7-9/2012). Net loss EUR -0.4 million (profit EUR 0.4 million)
- Earnings per share EUR -0.01 (EUR 0.01).
January-September
- Net sales totaled EUR 9.2 million, up by +11.4% year on year (EUR 8.3 million
in 1-9/2012).
- Operating loss amounted to EUR- 0.4 million (profit EUR 0.8 million in
1-9/2012) including EUR 0.0 of non-recurring costs (EUR -0.4 million). Net loss
EUR -0.4 million (profit EUR 0.8 million)
- Earnings per share EUR -0.02 (EUR 0.03).
- Operative cash flow positive EUR 0.4 million (EUR 0.1 million). Total Cash
Flow was EUR -2.2 million negative (EUR - 0,7 million) largely due to EUR 2.0
million investment made on fixed income fund, which are shown in investments.
The company's financial position is very good, with equity ratio 77.2% (50.9%)
and liquid assets at the end of period EUR 6.5 million (EUR 1.8 million).
7-9/ 7-9/ 1-9/ 1-9/ Change % 1-12/
2013 2012 2013 2012 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales (MEUR) 3.1 2.8 9.2 8.3 11.4 11.9
--------------------------------------------------------------------------------
Operating profit/loss (MEUR) -0.4 0.4 -0.4 0.8 -151.0 1.1
--------------------------------------------------------------------------------
% of net sales -12.9 13.9 -4.5 9.7 9.1
--------------------------------------------------------------------------------
Profit/loss before taxes (MEUR) -0.4 0.4 -0.4 0.9 -148.8 1.1
--------------------------------------------------------------------------------
Profit/loss (MEUR) -0.4 0.4 -0.4 0.8 -151.2 1.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Return on equity, % - 12.7 60.4 30.9
--------------------------------------------------------------------------------
Return on investment, % -12.4 50.1 28.1
--------------------------------------------------------------------------------
Liquid assets 6.5 1.8 256.9 6.6
--------------------------------------------------------------------------------
Gearing (%) -90.4 -94.6 -105.2
--------------------------------------------------------------------------------
Equity ratio (%) 76.8 50.9 70.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings Per Share (EUR) -0.01 0.01 -0.02 0.03 -168.4 0.04
--------------------------------------------------------------------------------
Shareholders' equity per share 0.23 0.06 0.23 0.06 266.9 0.20
(EUR)
--------------------------------------------------------------------------------
CEO's BUSINESS REVIEW
Several major customers are in the process of evaluating and purchasing
Universal SSH Key Manager(TM) and/or CryptoAuditor(TM) products. However, no
major deal was closed in the third quarter and a number of customers have
postponed their purchases to 2014, often for budget reasons. The US government
shutdown has further impacted certain sales cases and awareness creation
activities. Consequently, the company has lowered its 2013 growth estimate but
remains optimistic about growth going forward.
The company signed important deals in the identity and access management area
with a major telecommunications vendor and a major integrator for a European
government during the quarter.
Secure access and management of large IT environments are clear growth areas
for the company. The Universal SSH Key Manager product manages
machine-to-machine access in large IT environments. The CryptoAuditor product
for monitoring encrypted connections and privileged access within an
organization continues to impress customers by its unique functionality.
The company is also working towards capitalizing on its patent portfolio, which
appears to include several essential patents on technologies used in leading
smartphones, tablets, state-of-the-art telephony and video conferencing
systems, game consoles, and operating systems. The total sales of products
using technologies patented by the company may exceed USD 100 billion annually.
The patent portfolio may generate significant revenue in the future either in
the form of revenue from sale of the patents or royalties.
Sami Ahvenniemi started as President of SSH Communications Security, Inc., with
responsibility for the group's US operations. He has most recently been a
Founding Partner at Conor Venture Partners. In 1998, he started SSH's US
operations and grew SSH's US sales to about USD 10 million by 2001.
Mika Lauhde started as VP Government Relations and Business Development. Prior
to joining SSH Communications Security, he headed Business Security and
Continuity at Nokia, where he was accountable of Government Relations in the
Cybersecurity area, Criminal compliancy and Forensics, Nokia crisis management
and terminal and manufacturing related security tool manufacturing. He is a
member of ENISA (European Network and Information Security Agency) Permanent
Stakeholder Group, member of European Cyber Security Research Center, and
Member of Finnish Government Cyber Security Working Group.
The PCI Council has released PCI DSS 3.0 requirements draft for securing credit
card information processing. SSH and automated access between servers is
highly relevant for compliance with the requirements, and the company believes
the new requirements will help grow its sales. IDC recently highlighted the
SSH key management problem in its research report.
The SSH protocol is ubiquitous in datacenters and used for managing routers,
hardware management ports, virtualized instances, hypervisors, Unix/Linux
operating systems, and for file transfers and point-to-point tunneling on all
operating systems. As the inventors of the protocol, the company is uniquely
positioned to provide solutions in this space.
Tatu Ylönen
CEO
FUTURE OUTLOOK
SSH Communications Security estimates its revenue in 2013 to grow 10% to 20%
from the previous year. The lower revenue growth will impact profitability in
2013, but the full year still seems more likely to be profitable than not.
Upside possibilities for 2013 include faster than expected closing of new
deals. Downside risks include delays in closing new business, product
development delays, and macroeconomic challenges. Particularly US government
sales may be impacted by the recent government shutdown.
NET SALES
Consolidated net sales for July-September totaled EUR 3.1 million (EUR 2.8
million), up by 8.4%, year on year.
Consolidated net sales for January-September totaled EUR 9.2 million (EUR 8.3
million), up by 11.4%, year on year.
The Americas, Europe, Middle East and Africa market area and the Asia Pacific
region accounted for 42.9% (50.8%), 45.9% (34.4%) and 11.3% (14.8%) of reported
net sales, respectively.
SSH NET SALES
--------------------------------------------------------
EUR million 7-9/ 7-9/ 1-9/ 1-9/ Change % 1-12/
2013 2012 2013 2012 2012
--------------------------------------------------------
--------------------------------------------------------
BY SEGMENT
--------------------------------------------------------
AMERICAS 1.3 1.6 4.0 4.2 -6.0 6.0
--------------------------------------------------------
APAC 0.3 0.5 1.0 1.2 -15.0 1.6
--------------------------------------------------------
EMEA 1.4 0.8 4.2 2.9 48.4 4.3
--------------------------------------------------------
SSH Group Total 3.1 2.8 9.2 8.3 11.4 11.9
--------------------------------------------------------
--------------------------------------------------------
BY OPERATION
--------------------------------------------------------
License sales 0.7 1.2 2.7 3.8 -26.8 5.0
--------------------------------------------------------
Consulting 0.9 2.3 0.6
--------------------------------------------------------
Maintenance 1.4 1.7 4.2 4.5 -6.6 6.3
--------------------------------------------------------
Total 3.1 2.8 9.2 8.3 11.4 11.9
--------------------------------------------------------
The majority of SSH Communications Security's invoicing is U.S. dollar based.
During the report period, the U.S. dollar's average exchange rate to euro
weakened approximately -2.3% compared to the same period a year ago. With
comparable exchange rates 2013 net sales growth would have been +12.0% compared
with 2012 corresponding period.
RESULTS AND EXPENSES
Operating loss for July-September amounted to EUR -0.4 million (profit EUR 0.4
million), with net loss totaling EUR -0.4 million (profit EUR 0.4 million).
Operating loss for January-September amounted to EUR- 0.4 million (profit EUR
0.8 million), with net loss totaling EUR -0.4 million (profit EUR 0.8 million).
Non-recurring items during January-September were EUR 0.0 million (EUR -0.4
million).
Sales, marketing and customer support expenses for the July-September reporting
period amounted EUR -1.9 million (EUR -1.5 million), while research and
development expenses totaled EUR -0.7 million (EUR -0.6 million) and
administrative expenses EUR -0.4 million (EUR -0.3 million).
Sales, marketing and customer support expenses for the January-September
reporting period amounted EUR -5.1 million (EUR -4.1 million), while research
and development expenses totaled EUR -2.1 million (EUR -2.0 million) and
administrative expenses EUR -1.1 million (EUR -1.0 million).
BALANCE SHEET AND FINANCIAL POSITION
The financial position of SSH Communications Security remained good during the
reporting period. The consolidated balance sheet total on September 30, 2013
stood at EUR 13.6 million (September 30, 2012 EUR 7.5 million; December 31,
2012 EUR 12.5 million), of which liquid assets accounted for EUR 6.5 million
(September 30, 2012 EUR 1.8 million; December 31, 2012 EUR 6.6 million), or
48.1% of the balance sheet total. On September 30, 2013, gearing, or the ratio
of net liabilities to shareholders' equity, was -90.4% (September 30, 2012
-94.6%; December 31, 2012 -105,2%) and the equity ratio stood at 76.8%
(September 30, 2012 50.9%; December 31, 2012 70.0%). Equity is impacted by
assets of SSH Management Investments (EUR 0.5 million) which will be removed
when SSH Management Investment will be liquidated during 2013.
The reported gross capital expenditure for the period totaled EUR 1.4 million
(EUR 0.7 million). The reported financial income and expenses consisted mainly
of interest on deposits and exchange rate gains or losses. Financial income and
expenses totaled EUR -0.0 million (EUR +0.0 million).
During January-September, SSH Communications Security reported a positive cash
flow of EUR 0.4 million (EUR 0.1 million) from business operations, and
investments showed a negative cash flow of EUR -1.4 million (EUR -0.8 million).
Cash flow from financing totaled EUR -1.2 million (EUR -0.1 million). Total
cash flow was EUR -2.2 million largely due to EUR 2.0 million investment made
on fixed income fund, which are shown in investments.
Fair value of short term investment is determined from quoted prices available
from markets. Financial investment belongs to level 1 according to IFRS 7.
Market value of financial investment was EUR 2.0 million and nominal value EUR
2.0 million.
RESEARCH AND DEVELOPMENT
Research and development expenses for July-September totaled EUR -0.7 million
(EUR -0.6 million), the equivalent of 22.0% of net sales (21.0 %). During
July-September company has capitalized R&D costs EUR 0.3 million (EUR 0.2
million).
Research and development expenses for January-September totaled EUR -2.1
million (EUR -2.0 million), the equivalent of 22.3% of net sales (24.1%).
The company has continued R&D capitalizations during the reporting period
related to Universal SSH Key Manager and Crypto Auditor according to IAS 38
standard. In reporting period R&D cost capitalizations amount to EUR 1.1
million (EUR 0.7 million). Depreciation from R&D capitalization assets was EUR
-0.4 million.
HUMAN RESOURCES AND ORGANIZATION
At the end of September, the Group had 94 employees on its payroll, up by 35
persons from the previous year, an increase of +59%. Compared with previous
quarter personnel increased by 8.
At the end of the period, 45% of the employees worked in sales and marketing,
44% in R&D, and 11% in corporate administration.
BOARD AND AUDITORS
The Annual General Meeting (AGM) on March 20, 2013 elected Päivi Hautamäki,
Sami Ahvenniemi and Tatu Ylönen as the directors of the company. Sami
Ahvenniemi was elected the Chairman of the Board of Directors in the board's
organizing meeting. As announced on July 5, 2013 SSH Communications Security
has appointed MSc (Eng.) Sami Ahvenniemi to a member of the Group Management
Team responsible for operations in the North and South America from August 12,
2013. Ahvenniemi will continue as a member of the Board. The Chairman of the
Board of Directors of SSH Communications Security Oyj is Päivi Hautamäki from
August 1, 2013 onwards.
The Authorized Public Accountants KPMG Oy Ab was re-elected as the auditor of
the company, with Kirsi Jantunen, KHT as the accountant with the main
responsibility.
SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE
The reported trading volume of SSH Communications Security Corporation shares
totaled 8 193 905 (valued at EUR 15 826 135). The highest quotation was EUR
4.12 and the lowest EUR 0.75. The trade-weighted average share price for the
period was EUR 1.93 and the share closed at EUR 3.63 (September 30, 2013).
The company's principal owner Tatu Ylönen holds directly and through his
company, Clausal Computing Oy, now 57.7% of the company's shares, Assetman Oy
holds 11.3% and Gaselli Capital 4.1%. SSH Management Investment sold all shares
(4.7%) of the company during reporting period. Due to the transaction, SSH
communications Security has recorded EUR 0.1 million gain during the second
quarter of 2013. More information about the shareholding can be obtained from
the company´s web site.
During reporting period no dividend or return of capital were distributed.
SHARE CAPITAL AND BOARD AUTHORIZATIONS
The company's registered share capital on September 30, 2013 was EUR 922 416.99
consisting of 30 750 983 shares.
The Annual General Meeting approved the Board of Directors' proposal to
authorize the Board of Directors to decide upon the issuing of a maximum of 6
000 000 shares as a share issue against payment or by giving stock options or
other special rights entitling to shares, in accordance with Chapter 10 Section
1 of the Finnish Companies Act, either according to the shareholders'
pre-emptive right to share subscription or deviating from this right, in one or
more tranches. The authorization will be valid until the next Annual General
Meeting, but will however expire at the latest on June 30, 2014. As announced
on June 5, 2013, the Board of Directors decided upon an option plan of maximum1
700 000 options.
The Annual General Meeting approved the Board of Directors' proposal to
authorize the Board of Directors to decide upon the acquiring of a maximum of 2
000 000 own shares of the company with assets belonging to the company's
non-restricted equity. This amount corresponds approximately to 6.50% of all
the shares of the company. The shares can also be acquired otherwise than in
proportion to the holdings of the existing shareholders (targeted repurchase).
The maximum compensation to be paid for the acquired shares shall be the market
price at the time of purchase, which is determined in the public trading. The
authorization will be valid until the next Annual General Meeting, but will
however expire at the latest on June 30, 2014.
RISKS AND UNCERTAINTIES
Largest risks that might impact the profitability of the company have remained
by and large the same than in previous reporting period and are listed below.
Other risks, which are currently either unknown or considered immaterial to SSH
Communications Security may, however, become material in the future.
Largest risks:
- continuing uncertainty of the macroeconomic environment
- delays on product development and closing new business
- competitiveness of the product portfolio including intellectual property
- litigation, especially in the U.S. market
- competitive dynamics in the industry
- ability of the organization to scale up operations with the growth
- large portion of the company revenue is invoiced in USD currency so possible
large fluctuation in USD currency rates during 2013 could have unpredictable
effects for profitability that are at the time difficult to estimate. Currently
USD currency position is not hedged, and company decides hedging of USD based
contracts case by case.
Principles and organization of risk management of SSH Communications Security
can be read from company´s webpage: www.ssh.com.
RELATED PARTY TRANSACTIONS
Clausal Computing Oy, a fully owned company of SSH Communications Security
Corporation's CEO Tatu Ylönen, has delivered the company mainly R&D services
valued in total EUR 0.3 million during January-September 2013. During the
reporting period there have not been any other significant transactions with
related parties. Hybrid capital securities (EUR 4.0 million) of the company was
subscribed by CEO Tatu Ylönen.
EVENTS AFTER THE BALANCE SHEET DATE
The SSH Communications Security management is not aware of any significant
transactions after the reporting period.
REPORTING
This financial statement release is prepared according to IAS 34. Financial
statement release follows the same principles and standards as the previous
financial statement release. Additionally the effective changes in IAS/IFRS
standards during reporting period have been adopted. These changes have no
material impact on the interim report. The information presented in this
interim report has not been audited.
TABLES
SHORT COMPREHENSIVE INCOME STATEMENT
--------------------------------------------------------------------------------
EUR million
--------------------------------------------------------------------------------
7-9 7-9 1-9/ 1-9/ 1-12/
/2014 /2012 2013 2012 2011
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 3.1 2.8 9.2 8.3 11.9
--------------------------------------------------------------------------------
Cost of goods sold -0.5 -0.1 -1.4 -0.4 -0.9
--------------------------------------------------------------------------------
Gross profit 2.6 2.8 7.9 7.9 11.0
--------------------------------------------------------------------------------
Other operating income 0.0 0.0 0.1 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sales. marketing and customer support costs -1.9 -1.5 -5.1 -4.1 -5.9
--------------------------------------------------------------------------------
Product development expenses -0.7 -0.6 -2.1 -2.0 -2.7
--------------------------------------------------------------------------------
Administrative expenses -0.4 -0.3 -1.1 -1.0 -1.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss -0.4 0.4 -0.4 0.8 1.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income and expenses 0.0 0.1 -0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss before taxes -0.4 0.4 -0.4 0.9 1.1
--------------------------------------------------------------------------------
Taxes 0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net profit/loss for the financial period -0.4 0.4 -0.4 0.8 1.1
--------------------------------------------------------------------------------
Minority Interest 0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Other profit and loss account items:
--------------------------------------------------------------------------------
Foreign subsidiary translation differences -0.0 0.0 -0.0 0.0 -0.1
--------------------------------------------------------------------------------
Net change in fair value of 0.0 0.0
available-for-sale
financial assets
--------------------------------------------------------------------------------
Total comprehensive income -0.4 0.4 -0.4 0.8 1.0
--------------------------------------------------------------------------------
Net profit/loss attributable to:
-----------------------------------------------------------------
Owners of the Company -0.4 0.4 -0.4 0.8 1.0
-----------------------------------------------------------------
Non-Controlling interest 0.0 0.0 0.0 0.0 0.0
-----------------------------------------------------------------
-----------------------------------------------------------------
EARNINGS PER SHARE
-----------------------------------------------------------------
Earnings per share (EUR) -0.01 0.01 -0.02 0.03 0.04
-----------------------------------------------------------------
Earnings per share, diluted (EUR) -0.01 0.00 -0.02 0.03 0.04
-----------------------------------------------------------------
BALANCE SHEET
---------------------------------------------------------------------------
EUR million
---------------------------------------------------------------------------
30/09/2013 30/09/2012 31/12/2012
---------------------------------------------------------------------------
ASSETS
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Non-current assets
---------------------------------------------------------------------------
Tangible assets 0.2 0.1 0.1
---------------------------------------------------------------------------
Intangible assets 2.8 1.7 2.1
---------------------------------------------------------------------------
Investments 0.0 0.0 0.0
---------------------------------------------------------------------------
Total non-current assets 3.0 1.9 2.2
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Current assets
---------------------------------------------------------------------------
Trade and other receivables 4.0 3.8 3.7
---------------------------------------------------------------------------
Short-term financial assets 2.0 0.0 0.0
---------------------------------------------------------------------------
Cash and cash equivalents 4.5 1.8 6.6
---------------------------------------------------------------------------
Total current assets 10.6 5.7 10.3
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total assets 13.6 7.5 12.5
---------------------------------------------------------------------------
---------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Shareholders' equity
---------------------------------------------------------------------------
Equity attributable to the 6.7 1.7 6.0
parent company shareholders
total
---------------------------------------------------------------------------
Non-controlling interest 0.5 0.2 0.2
---------------------------------------------------------------------------
Shareholders' equity total 7.2 1.9 6.3
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Non-current liabilities
---------------------------------------------------------------------------
Provisions 0.1 0.1 0.1
---------------------------------------------------------------------------
Non-current interest-bearing 0.0 0.0 0.0
liabilities
---------------------------------------------------------------------------
Total long-term liabilities 0.1 0.1 0.1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Current liabilities 6.3 5.6 6.1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Liabilities total 6.4 5.7 6.3
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total equity and liabilities 13.6 7.5 12.5
---------------------------------------------------------------------------
---------------------------------------------------------------------------
CASH FLOW STATEMENT
--------------------------------------------------------------------
EUR million 1-9/2013 1-9/2012 1-12/2012
--------------------------------------------------------------------
--------------------------------------------------------------------
Cash flow from business operations 0.4 0.1 1.3
--------------------------------------------------------------------
Cash flow from investments -1.4 -0.8 -1.2
--------------------------------------------------------------------
Cash flow from financing -1,2 -0.1 4.1
--------------------------------------------------------------------
--------------------------------------------------------------------
Increase(+) / decrease(-) in cash -2.2 -0.7 4.2
--------------------------------------------------------------------
--------------------------------------------------------------------
Cash at period start 6.6 2.4 2.4
--------------------------------------------------------------------
Effect of exchange rate 0.0 0.0 0.0
--------------------------------------------------------------------
Cash at period end 4.4 1.7 6.6
--------------------------------------------------------------------
STATEMENT ON
CHANGES IN
SHAREHOLDERS'
EQUITY
--------------------------------------------------------------------------------
EUR Share Fair Other Transla Fund Non-con Unrestricted Total
milli capit value fund + tion for trollin equity funds
on al reser other differ own g and retained
ves equity ence share intere earnings
fund s st
--------------------------------------------------------------------------------
hareho 0.9 0.2 0.1 -1.2 -1.0 0.2 1.9 1.1
lders'
equit
y
Jan,
2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change 0.0 -0.0
--------------------------------------------------------------------------------
Net 0.8 0.8
profi
t
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareh 0.9 0.2 0.1 -1.2 -1.0 0.2 2.7 1.9
olders
'
equit
y
sep
30,
2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change 0.0 4.0 -0.1 0.0 4.0
--------------------------------------------------------------------------------
Net 0.4 0.4
profi
t
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareh 0.9 0.2 4.1 -1.3 -1.0 0.2 3.1 6.3
olders
'
equit
y
Jan
01,
2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change 0.2 -0.1 1.0 0.3 1.4
--------------------------------------------------------------------------------
Net -0.4 -0.4
profi
t
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareh 0.9 0.4 4.1 -1.4 0.0 0.5 2.7 7.2
olders
'
equit
y
Sep
30,
2013
--------------------------------------------------------------------------------
NET SALES BY SEGMENT
---------------------------------------------------
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2013 2012 2013 2012 2012
---------------------------------------------------
---------------------------------------------------
AMER 1.3 1.6 4.0 4.2 6.0
---------------------------------------------------
APAC 0.3 0.5 1.0 1.2 1.6
---------------------------------------------------
EMEA 1.4 0.8 4.2 2.9 4.3
---------------------------------------------------
SSH Group Total 3.1 2.8 9.2 8.3 11.9
---------------------------------------------------
GROSS MARGIN BY SEGMENT
------------------------------------------------------
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2013 2012 2013 2012 2012
------------------------------------------------------
------------------------------------------------------
AMER 1.3 1.6 4.0 4.2 5.9
------------------------------------------------------
APAC 0.3 0.5 1.0 1.2 1.6
------------------------------------------------------
EMEA 0.9 0.6 2.9 2.4 3.5
------------------------------------------------------
SSH Group Total 2.6 2.8 7.9 7.8 11.0
------------------------------------------------------
OPERATING PROFIT AND LOSS BY SEGMENT
-------------------------------------------------------------------
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2013 2012 2013 2012 2012
-------------------------------------------------------------------
-------------------------------------------------------------------
AMER 0.1 0.8 0.6 1.9 2.4
-------------------------------------------------------------------
APAC 0.2 0.3 0.6 0.7 0.8
-------------------------------------------------------------------
EMEA 0.5 0.5 2.2 2.2 3.3
-------------------------------------------------------------------
Common Group expenses -1.2 -1.3 -3.9 -4.1 -5.4
-------------------------------------------------------------------
SSH Group Total -0.4 0.4 -0.4 0.8 1.1
-------------------------------------------------------------------
* Common Group expenses include Group administration expenses (e.g. management
and finance) and product management and R&D expenses for corporate
headquarters.
KEY FIGURES AND RATIOS
--------------------------------------------------------------------------------
EUR million 1-9/201 1-9/201 1-12/201
3 2 2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 9.2 8.3 11.9
--------------------------------------------------------------------------------
Operating profit/loss -0.4 0.8 1.1
--------------------------------------------------------------------------------
Operating profit/loss. as % of net sales -4.5 9.7 9.1
--------------------------------------------------------------------------------
Profit/loss before extraordinary items and taxes -0.4 1.2 1.5
--------------------------------------------------------------------------------
Profit/loss before extraordinary items and taxes. as -4.2 14.5 12.8
% of net sales
--------------------------------------------------------------------------------
Profit/loss before taxes -0.4 0.9 1.1
--------------------------------------------------------------------------------
Profit/loss before taxes. as -4.5 10.3 9.4
% of net sales
--------------------------------------------------------------------------------
Return on equity (%) -12.7 60.4 30.9
--------------------------------------------------------------------------------
Return on investment (%) -12.4 50.1 28.1
--------------------------------------------------------------------------------
Interest-bearing net liabilities -6.5 -1.8 -6.6
--------------------------------------------------------------------------------
Equity ratio (%) 76.8 50.9 70.0
--------------------------------------------------------------------------------
Gearing (%) -90.4 -94.6 -105.2
--------------------------------------------------------------------------------
Gross capital expenditure 1.4 0.7 1.2
--------------------------------------------------------------------------------
% of net sales 15.1 8.4 10.0
--------------------------------------------------------------------------------
R&D expenses 2.1 2.0 2.7
--------------------------------------------------------------------------------
% of net sales 22.3 24.1 22.7
--------------------------------------------------------------------------------
Personnel. period average 82 54 61
--------------------------------------------------------------------------------
Personnel. period end 94 59 70
--------------------------------------------------------------------------------
Calculation for key figures and ratios are presented in 2012 financial
statement and annual report. There have not been changes in calculation rules
after that.
PER-SHARE DATA
------------------------------------------------------------------------------
EUR 1-9/2013 1-9/2012 1-12/2012
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Earnings per share. Undiluted -0.02 0.03 0.04
------------------------------------------------------------------------------
Earnings per share. diluted -0.02 0.03 0.04
------------------------------------------------------------------------------
Equity per share 0.23 0.06 0.20
------------------------------------------------------------------------------
No. of shares at period average (thousand) 30 751 30 553 30 553
------------------------------------------------------------------------------
No. of shares at period end (thousand) 30 751 30 553 30 751
------------------------------------------------------------------------------
Share performance
------------------------------------------------------------------------------
Average price 1.93 0.51 0.50
------------------------------------------------------------------------------
Low 0.75 0.30 0.30
------------------------------------------------------------------------------
High 4.50 0.90 0.90
------------------------------------------------------------------------------
Share price. period end 3.63 0.85 0.76
------------------------------------------------------------------------------
Market capitalization. period end (EUR million) 111.6 26.0 23.4
------------------------------------------------------------------------------
Volume of shares traded (million) 8.2 6.2 6.6
------------------------------------------------------------------------------
Volume of shares traded. As 39.7 24.1 20.8
% of total
------------------------------------------------------------------------------
Value of shares traded (EUR million) 15.8 3.1 3.2
------------------------------------------------------------------------------
Price per earnings ratio (P/E) - - 20.9
------------------------------------------------------------------------------
Dividend per share 0.0 0.0 0.0
------------------------------------------------------------------------------
Dividend per earnings, % 0.0 0.0 0.0
------------------------------------------------------------------------------
Effective return on dividend, % 0.0 0.0 0.0
------------------------------------------------------------------------------
CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
EUR million 30.9.2013 30.9.2012 31.12.2012
--------------------------------------------------------------------------------
Rent security deposits 0.1 0.1 0.1
--------------------------------------------------------------------------------
Interest commitments of hybrid capital loan 0.2 0.0 0.0
outside balance sheet
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Leasing commitments outside
the balance sheet
--------------------------------------------------------------------------------
Maturing within 1 year 0.5 0.5 0.5
--------------------------------------------------------------------------------
Maturing between 1 and 5 years 0.1 0.6 0.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DISCLAIMER
The content in this report is provided by SSH Communications Security
Corporation ("SSH") and its third party content providers for your personal
information only. And does not constitute an offer or invitation to purchase
any securities. Nor does it provide any form of advice (investment. tax. legal)
amounting to investment advice. Or make any recommendations regarding
particular investments or products. SSH does not provide investment advice or
recommendations to buy or sell its shares or the shares of others. If you are
interested in investing in SSH, please contact your financial adviser for
further details and information. Past performance of SSH shares is not
indicative of future results. EXCEPT AS PROVIDED BY APPLICABLE COMPULSORY LAW
SSH EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED. AS TO THE
AVAILABILITY, ACCURACY OR RELIABILITY OF ANY OF THE CONTENT PROVIDED, OR AS TO
THE FITNESS OF THE INFORMATION FOR ANY PURPOSE.
SSH Communications Security Corporation will release its annual report for 2013
in February 6th 2014.
Helsinki, October 23rd 2013
SSH COMMUNICATIONS SECURITY CORPORATION
Board of Directors
Tatu Ylönen
CEO
For further information, please contact:
Tatu Ylönen, CEO. tel. +358 20 500 7000
Jyrki Lalla, CFO, tel. +358 45 340 4641
Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.ssh.com
Founded in 1995, SSH Communications Security is the company that invented the
Secure Shell protocol - the gold standard protocol for data-in-transit security
solutions. Today, over 3,000 customers across the globe - including seven of
the Fortune 10 - trust our Information Assurance Platform to secure the path to
their information assets. We enable and enhance business for thousands of
customers in multiple industries in the private and public sectors around the
world. SSH Communications Security operates in the Americas, Europe, and APAC
regions, with headquarters located in Helsinki, Finland. The company shares
(SSH1V) are quoted on the NASDAQ OMX Helsinki.
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