2010-10-27 08:00:00 CEST
2010-10-27 08:00:05 CEST
REGULATED INFORMATION
F-Secure Oyj - Interim report (Q1 and Q3)
F-Secure Corporation - Interim Report, January 1 - September 30, 2010
October 27, 2010 at 9.00
F-Secure Corporation - Interim Report
January 1 - September 30, 2010
Steady financial performance, security revenue growth in operator channel
Accelerated, reorganizing of operations to drive growth initiated
Highlights in Q3
- Total revenues grew by 3% to 32.0 million (Q32009: 31.1 m)
- Revenues from the operator channel (ISPs, mobile operators and cable
operators) grew by 9%, reaching revenues of 16.7 million (15.4m). Security
revenue growth in the operator channel accelerated from Q2. Storage business
related revenues were still low and did not contribute to growth.
- Storage business related commercial negotiations have progressed well with
new operator customers and the company has successfully completed major
delivery milestones with existing operator partners.
- EBIT was 5.9 million; representing 18% of revenues (6.6m, 21%)
- Earnings per share was EUR 0.03 (EUR 0.03)
- Cash flow from operations was 3.5 million positive (0.6m)
- Investments in the storage business's project deliveries continued, which
raised the cost level in the quarter, contribution to growth expected as of
2011.
- Reorganizing of operations, as announced on October 4, currently ongoing in
the company to drive growth.
- Outlook for Q4/2010: Revenues are estimated to be between 32 and 35 million.
Costs are estimated to be around 27 million and in addition restructuring
related costs up to 3 million.
(This report is unaudited. Unless otherwise stated the comparisons refer to the
corresponding period a year ago. The currency is euro. Storage and Digital
Content business unit is included in the operator channel figures.)
Key figures 2010 2009 2009 2010
Eur million 7-9 7-9 12m 4-6
Revenues 32,0 31,1 125,1 32,3
Operating profit 5,9 6,6 24,0 4,9
% of revenues 18 % 21 % 19 % 15 %
Profit before taxes 5,5 6,7 25,2 5,2
Earnings per share (EUR) 0,03 0,03 0,12 0,02
At the end of period:
Deferred revenue 35,1 33,7 35,6 37,2
Equity ratio, % 71% 70% 70% 67%
Debt-to-equity ratio, % -58% -67% -68% -64%
Personnel 855 818 826 847
President and CEO Kimmo Alkio: "Our operator security business continued to
perform well showing accelerating growth in revenues. Despite prolonged
deliveries we continued to see increase in operator demand for storage related
services. During the past quarter we have made substantial progress in the
storage business both in terms of new commercial negotiations and in project
deliveries.
The recent developments in our businesses provide a good foundation for future
growth. To drive significantly higher growth and to improve profitability we
have announced in October our plans to reorganize the company. The growth
opportunity for value added services with over 200 operator partners in over 40
countries with an addressable market of over 70 million broadband customers is
remarkable in the mid and long term."
F-Secure business at the Group level during January-September 2010
For the first nine months of 2010, the total revenues were 95.7 million
(Jan.-Sep. 2009: 93.4m), growth of 3%. Revenue growth continued through the
operator channel, up 10% from the corresponding period in 2009 and totaled
48.7million (44.3m). Revenue through the traditional channels was down by 4%,
totaling 47.0 million (49.1m), as anticipated. EBIT was 16.3 million (19.8m),
representing 17% of revenues. Earnings per share were EUR 0.08 (EUR 0.10). Cash
flow from operations was 16.0 million positive (11.8m positive). F-Secure's
deferred revenues were 35.1m at the end of September (33.7m).
F-Secure's total fixed costs for Jan.-Sep. 2010 were 74.1 million (66.7m), 11%
higher than in the corresponding period of 2009. The costs increased mainly in
the storage and digital content business unit and in R&D. F-Secure capitalized
some of its R&D expenses according to accounting rules, totaling 1.8 million
(0.9m) for Jan.-Sep. 2010.
F-Secure security business and Security as a Service business particularly
(excluding the acquired Storage business) has continued to perform well with
good scale and enhanced profitability.
The financial performance for the third quarter of 2010 was within the given
guidance (revenues 31-33 million, cost level around 25 million); revenues for
the third quarter were 32.0 million. The costs were 24.2 million. EBIT was 5.9
million; 18% of revenues. P&L was impacted by the seasonal effect as in
previous third quarters; increasing revenues due to deferred revenues and
decreasing costs due to the vacation period. As anticipated, the targeted cost
increases in the storage business continued and were mainly non-permanent in
nature (e.g. subcontracting) and related to the unit's transformation program
and customer deliveries.
For the first nine months of 2010 the geographical breakdown of the revenues
split as follows: Finland and Scandinavia 33% (35%), Rest of Europe 46% (46%),
North America 9% (9%) and Rest of the World 12% (10%).
Operator channel in Q3
F-Secure's offering in the Software as a Service business includes PC and
mobile security and a broad range of storage based services. F-Secure's
operator channel (including ISPs, mobile operators and cable operators)
continued to perform well. In the third quarter of 2010, revenues through the
operator business partners totaled 16.7 million (Q309:15.4m), representing 52%
of F-Secure's total revenues (49%). Revenue growth was 9% compared to the
corresponding quarter in 2009 and 2% to the previous quarter. The revenue
growth of operator security business (excluding storage) further accelerated
from Q2. The impact of contractual changes with some operators at the beginning
of the year (as informed in the previous releases) has approximately 6%
negative impact on YoY growth.
F-Secure's position in the operator channel has remained strong in the
traditional Internet security business. The competitiveness of Security as a
Services business continues to gain market share to the benefit of both
operators and end customers.
During the quarter the number of internet security subscribers in the operator
business has continued to show healthy growth. The growth was mainly driven by
the increase in subscriber take-up rates within the existing operator base both
in western and emerging markets. F-Secure has also been successful in its
activities with mobile broadband operators to support the operator business
growth in the future.
As stated in the previous interim releases, the Storage and Digital Content
(SDC) market entry has further strengthened F-Secure's attractiveness as a long
term strategic partner, as already experienced with several major operators
globally. The SDC business extends F-Secure's value added service portfolio and
strengthens the Security as a Service business. Integration of the SDC
operations to the high F-Secure quality standards has been more challenging
than originally anticipated. Currently the storage business incurs investments
both for the transformation and increasing number of customer projects.
However, the transformation related costs are temporary in nature and return on
the investments is expected to be seen gradually as of 2011.
During the third quarter storage related revenues have remained at a low level
and this has slowed down the growth of operator channel when compared to the
previous year. During Q3 the storage related commercial negotiations have
progressed well with a few new large operator customers. The company has also
successfully completed major delivery milestones with existing operator
partners, which are expected to contribute to growth as of 2011.
The company currently has more than 200 partners in over 40 countries with an
addressable market of over 70 million broadband consumer customers. F-Secure
has not lost any of its existing partnerships; however, the number of partners
may vary subject to merger activity in the operator market.
During the quarter, F-Secure signed new operator partnerships with 3 (Sweden),
VF Portugal, VF Spain and iiNet (Australia).
The total number of F-Secure's operator partners is significantly larger than
that of any other security service vendor. At the end of 2009 F-Secure's
operator partners held approximately 39% (39%) market share of total broadband
consumer connections in Europe, approximately 10% (10%) in North America and in
the APAC region F-Secure has quickly become one of the leading vendors with
more than 11m potential addressable subscribers (Source: estimates by Dataxis
and F-Secure).
Other channels in Q3
During the third quarter, revenues through traditional channels were 15.3
million (15.7m), showing a decline of 3% from the corresponding period in 2009.
These traditional channels represented 48% of F-Secure's total revenues (51%).
The sales in traditional channels continued as expected. The license renewal
rates during the third quarter have remained healthy and the decrease in
deferred revenues follows the annual pattern.
Mobile security in Q3
Co-operation with major handset manufacturers, including Nokia and
SonyEricsson, and operators such as Vodafone Group, TeliaSonera Group, T-Mobile
International, Swisscom and Elisa continued well. Currently, there are mobile
operator partnerships with more than 20 operators worldwide.
The Anti-Theft freemium offering through Nokia Ovi-store has been widely
popular with over 1.4m downloads during Q3.
In October, F-Secure announced that its Mobile Security and Anti-Theft for
Mobile solutions are now available for mobile devices on the Symbian3 platform.
F-Secure Anti-Theft for mobile has been selected by Nokia as a pre-installed
3rd party app for its new Symbian3 models, such as the Nokia N8. F-Secure
Anti-Theft for Mobile is available as a free stand-alone product, and as part
of F-Secure Mobile Security 6 which offers a complete security package. The
anti-virus, firewall and anti-spyware features included in the solution protect
against all mobile viruses, spying tools, worms and trojans. Browsing
Protection, the latest feature in F-Secure Mobile Security, identifies which
websites are safe to enter and blocks harmful sites that try to spread malware
or steal confidential information, such as banking details.
During the quarter mobile security services were made available for the tablet
market on Android operating system in addition to Android smart phones.
The revenues from the Mobile Security business have remained at same level as
before and are included in the above mentioned channels.
Products, Services and Technologies
F-Secure has been a pioneer in both Software as a Service and cloud computing.
Nearly ten years ago, F-Secure innovated and launched to the market a new
business model by offering security as a subscription service via operators
(SaaS). Cloud computing has been in the center of the company's technology
strategy and choices for the past few years. An example of cloud computing at
F-Secure is the real-time protection network which provides reputations of
files, sites and URLs to F-Secure's solutions. It is implemented as an
in-the-cloud reputation service, capable of supporting several types of
solutions now and in the future.
The real-time protection network moves the PC processing and memory intensive
functions to the cloud making the client software one of the fastest in the
industry. Furthermore, by harnessing the collective intelligence of client
systems, the real-time protection network is able to detect and react to new
emerging threats a magnitude faster. This is important in today's dramatically
changed threat situation where the Internet is facing a deluge of new malware
and variants that make traditional heuristics or signature-based solutions
inefficient and slow. This technology has been utilized for e.g. in F-Secure
Internet Security 2010, and in F-Secure Client Security 9, in their anti-virus,
browsing protection and parental control features.
During January-September 2010 the key product announcements were the following:
In October, F-Secure announced that its Mobile Security and Anti-Theft for
Mobile solutions are now available for mobile devices on the Symbian3 platform.
F-Secure Anti-Theft for mobile has been selected by Nokia as a pre-installed
3rd party app for its new Symbian3 models, such as the Nokia N8. F-Secure
Anti-Theft for Mobile is available as a free stand-alone product, and as part
of F-Secure Mobile Security 6, which offers a complete security package.
In September, F-Secure announced a new version of its flagship internet
security service, F-Secure Internet Security™ 2011. F-Secure Internet
SecurityTM 2011 offers extraordinary ease-of-use, with multi-layered protection
and fast performance for computers. The main features of the F-Secure Internet
Security™ 2011 include protection against viruses and spyware, firewall to
prevent hacker attacks, browsing protection that identifies unsafe web sites,
protection against identity theft, blocking of spam and phishing e-mails as
well as parental control to protect children online. The intensive research
into computer users' needs has produced security software that is easy to use
and sophisticated in its technological capabilities to fight malware. The
service is cloud-based and has minimal system impact.
In August, F-Secure published a new version of the F-Secure Online Backup. With
F-Secure Online Backup your backed-up files can be easily accessed over the
Internet. In addition to the sharing feature, the new version of F-Secure
Online Backup includes modified default settings to enable faster backup, as
well as an enhanced web interface for ease of use.
In June, F-Secure offered enhanced mobile protection for Android platforms.
F-Secure Mobile Security 6 is available for consumers and businesses for mobile
phones on the Android, Symbian and Windows platforms.
In May, F-Secure introduced F-Secure Share available for operators globally.
F-Secure Share is a fully hosted and secure service solution available to
Internet operators. It provides an easy to use online storage and sharing
solution for the operators' end customers, ideal for sharing for example
personal photos, videos and office documents. F-Secure Share works as a virtual
drive for all the end user's digital content, which can be easily accessed from
the web interface of their home PC, office computer or mobile.
In February, F-Secure launched F-Secure Mobile Security 6, a new version of its
leading smartphone security solution, introducing Premium Anti-theft with
Locator features and Browsing Protection, the company's first in-the-cloud
service for mobile devices, which make smartphone Internet use and financial
transactions safer than ever. F-Secure Mobile Security 6 provides smartphone
security, safeguarding personal and confidential data in the event the phone is
lost, stolen, infected by mobile malware or even spied on.
In January 2010, F-Secure launched the availability of its new smartphone
solution, F-Secure Anti-Theft for Mobile. The solution provides three useful
security features to protect your phone: remote lock, remote wipe and theft
control and is available for Symbian and Windows Phone platforms.
Market situation
There were no significant changes in the competitive landscape or in the
pricing levels during the quarter. However, there are usual signs of price
competition in some countries. F-Secure's competitive position in the operator
channel has remained strong. At the same time the broadband market is
experiencing a shift from fixed to mobile broadband access. The combined
broadband business is anticipated to continue as a healthy growth driver for
Security as a Service in the operator channel.
Reorganization of operations to drive growth
F-Secure's first priority is to drive growth and market expansion. The core
growth driver has been Software as a Service (SaaS) sales through the
operators. However, to drive faster growth F-Secure has started the
reorganization of its operations to further emphasize and increase activities
in the operator channel to take advantage of the market opportunity for value
added services. F-Secure seeks to streamline its organization to a functional
structure and to eliminate overlapping roles. The objective is to drive
growth, speed and innovation. The planned structural changes and related
efficiency gains are intended to also fund future growth investments for the
Software as a Service business globally.
As announced on October 4, 2010 F-Secure has initiated employee negotiations
with the employee representatives in Finland to plan the organizational
changes. The management estimates that the employee negotiations may lead to
reduction of 80 employees out of which up to 50 in Finland. The scope of the
employee negotiations cover all employee groups and functions in F-Secure.The
negotiations are expected to be concluded by mid-November.
Personnel and organization
F-Secure's personnel totaled 855 at the end of September (Q22010: 847, Q309:
818). F-Secure's number of personnel has continued to increase slightly during
January-September especially in the storage business, support, and sales
functions.
The current Executive Team consists of the following persons : Kimmo Alkio
(President and CEO), Ari Alakiuttu (Vice President, Human Resources), Tuomas
Hyyryläinen (Vice President, Strategy and M&A), Samu Konttinen (Vice President,
Sales and Geographical Operations), Maria Nordgren (Vice President, Corporate
Business), Pirkka Palomäki, (Chief Technology Officer), Kari Penttilä (Vice
President, R&D), Patrik Sallner (Vice President, Mobile business unit and Vice
President, Storage and Digital Content business unit), Antti Reijonen (Vice
President, Consumer Business and Marketing) and Taneli Virtanen (Chief
Financial Officer).
Financing and capital structure
F-Secure's financial position continued strong. F-Secure's equity ratio at the
end of September was 71% (70%) and gearing ratio was 58% negative (68%
negative).
Cash flow from the operations for the first nine months of 2010 was 16.0
million positive (11.8m positive). Total cash flow including investments, share
buy-backs and dividend payment was 5.6 million negative (30.3m negative
including acquisition cost). The net financial income for the first nine months
was 0.2 million negative impacted by low interest income and changes of
exchange rates losses (0.9m positive).
The company's cash position has developed according to the longer term
efficient capital management objectives. The market value of the liquid assets
of F-Secure on September 30, 2010 was 28.8 million (31m).
Changes in exchange rates, EUR against USD, JPY, GBP, SEK and MYR, have
slightly increased revenues and costs for the first nine months of 2010.
Capital expenditure
F-Secure's capital expenditure in the first nine months was 8 million (35.3m),
consisting mainly of the acquisition cost and additionally of IT hardware and
software as well as capitalization of some research and development expenses.
Capital management and repurchase of own shares
The objective of F-Secure's capital management is to aim at an efficient
capital structure that ensures the functioning of business operations and
promotes the increase of shareholder value.
In the third quarter, F-Secure has continued its share buy back program based
on the authorization by the Annual General Meeting 2010. During the quarter,
F-Secure has bought altogether 308,857 own shares. During the first nine
months, F-Secure has bought in total 1,261,252 own shares. Including all shares
bought, the total number of own shares held at the end of September 2010 was
2,810,698 shares, corresponding to approximately 1.8% of the company's shares
and voting rights. The shares were purchased through public trading on the
NASDAQ OMX Helsinki Ltd. in accordance with its rules and at market price.
The own shares are purchased to be used to improve the Company's financial
structure, to be used as part of the incentive compensation plan, for making
acquisitions or implementing other arrangements related to the Company's
business or for the purpose of otherwise assigning or cancelling the shares.
Shares, shareholders' equity and option programs
During the quarter, there were no share subscriptions based on F-Secure's
warrant plans.
In May, a total of 20,000 F-Secure shares were subscribed for with the 2005C
warrants attached to the F-Secure 2005 Warrant Plan. The issue of the 2005
Warrant Plan was approved by the Annual General Meeting on March 23, 2005. In
aggregate the number of shares was increased by 20,000. The corresponding
increase in the share capital was registered in the Finnish Trade Register on
May 26, 2010. F-Secure received as subscription price a total amount of EUR
30,800.00, which will be recorded in the fund for company's distributable
equity. The subscription period for the 2005 C warrants began on March 1, 2010.
In March, the trading of 2005 B- and C-warrants of F-Secure Corporation
commenced on the Nasdaq OMX Helsinki Ltd. Each 2005 B-warrant entitles holders
to subscribe for one F-Secure share at a price of EUR 2,72. Each 2005 C-warrant
entitles holders to subscribe for one F-Secure share at a price of EUR 1,54.
The subscription price of the stock options shall, as per the dividend record
date, be reduced by the amount of dividend per share. The subscription time for
2005 B-warrants began on March 2, 2009 and will end on November 30, 2010. The
subscription time for 2005 C-warrants will begin on March 1, 2010 and will end
on November 30, 2011. In aggregate the 2005 B- and C-warrants entitle holders
to subscribe for 1,613,760 shares. The terms of the option program were
published in a stock exchange release on February 26, 2010.
The total number of company's shares is currently 157,489,243. The
corresponding number of shares diluted would be 161.269.612 including all stock
option programs. The company's registered shareholders' equity is EUR
1.551.311,18.
Corporate Governance
F-Secure complies with the Corporate Governance recommendations for public
listed companies published in October 2008 by the Securities Market
Association, a body established by the Confederation of Finnish Industries EK,
the Central Chamber of Commerce, and NASDAQ OMX Helsinki Ltd., as explained on
F-Secure's web pages. F-Secure published a corporate governance statement for
2009 in the annual report and on the company website in March. The remuneration
statement is published on the company website corporate governance pages as of
October 1, 2010.
Risks and uncertainties
F-Secure has not seen material changes in the risks and uncertainties during
the reporting period. However, the current situation in the global economy may
have an impact on the traditional license sales. This could be seen as a
slowdown in new license sales. The slower growth in sales of fixed broadband
connections by operators may also have an impact on security service sales. As
the uncertainty in the economic environment has continued, F-Secure continues
to monitor closely the development in the economic and financial markets.
F-Secure's risks and uncertainties are related to, among other things, the
competitiveness of F-Secure's product portfolio, competitive dynamics in the
industry, pricing models (e.g. free services), impact of changes in technology,
timely and successful commercialization of complex technologies as new products
and solutions, the ability to protect own intellectual property (IPR) in
F-Secure's solutions as well as the use of third party technologies on
reasonable commercial terms, subcontracting relationships, regional development
in new growth markets, sustainability of partner relationships, service quality
level requirements and the overall development of value added security
solutions in the Internet Service Provider and mobile operator market.
Due to the longevity and complexity of project deliveries in the storage and
digital content business, the project completion timelines are more
unpredictable, by nature, than in the traditional security services business.
This may cause risks for delivery delay penalties and may cause more
variability in revenue forecasts.
Long-term objectives
The market opportunities for Internet security and other related services are
driven by the expansion of the Internet. The global Internet penetration is
around 26%; in Asia it is below 20%, in Europe over 50%, and in North America
over 70% (Source: Internet World Stats, U.S. Census Bureau). The growing number
of smart phones, which have an Internet browser increases the number of mobile
internet users (number of smart phones 2010: 200m and 2012 more than 500m;
Source: Gartner).
This will lead to an increasing number of internet users globally requiring
security services. The Security software market as a total is attractive
globally. The market is an over $13 billion industry (Source: Gartner, 2010).
The updated analyst forecasts imply the total security market growth to
accelerate to around 10% annually. Consumer security software growth is
expected to show CAGR of 6.5% 2007-2014 (source: Gartner). However, publicly
listed security companies have announced recent (Q2) growth rates of below 5%,
which reflect slower market momentum than the analyst forecasts. The volume of
user generated digital content is expected to increase rapidly during coming
years driven by digital photos and music. The market for emerging online
storage is expected to show strong growth and to reach $715m by 2011 showing a
CAGR of 33% 2006-2011 (Source: IDC/Networkworld).
The Security as a Service (SaaS) business has been a strong growth driver for
F-Secure since the year 2000. Based on the company's pioneering role in
offering Software as a Service, F-Secure continues to expand its offering to
augment traditional security services. The Software as a Service business model
continues to gain further market share in the software industry at large
(Source: IDC Nov. 2008). Based on experience of the Software as a Service
business model, F-Secure anticipates that both the customer benefits (e.g.
lower total cost of ownership) and attractive partner business benefits (e.g.
lifetime revenue share) will accelerate the adoption of the Software as a
Service business model compared to traditional software acquisition as a
product.
F-Secure's first priority is to drive growth and market expansion. The core
growth driver has been Security as a Service (SaaS) sales through the
operators. In addition, F-Secure offers Online Backup as a Service and other
storage related services that are expected to drive growth. The combined
portfolio of storage and security services enables F-Secure to develop more
comprehensive and innovative Value Added Services to consumers to be sold
through its large operator network of over 200 operator partners in over 40
countries with an addressable market of over 70 million broadband customers.
F-Secure is focusing on increasing the penetration within the current operator
base with security and storage related services and continues to selectively
seek partner expansion globally. In addition, F-Secure is developing its
operations in other channels, such as electronic sales, to offer value-added
services to consumers and other segments.
F-Secure's close co-operation with major mobile phone vendors and mobile phone
operators provides good opportunities to benefit from the growth of the mobile
Internet. Over time, F-Secure anticipates synergies across the value added
Services being developed and offered both for PC's and mobile phones.
F-Secure's target is to be the leader in providing security and other related
value added services to consumers through operators. F-Secure pursues
investments in new value added services for both PC and mobile users to augment
the existing security services. F-Secure continues to drive innovation also in
traditional IT security, enabling the secure use of internet.
F-Secure aims to continue to exceed the average market growth rates in revenues
and seeks to improve its profitability sustainably towards an EBIT level of 25%
over time. F-Secure's longer term profitability level continues to be driven
extensively by revenue growth and through systematic cost controls. F-Secure
targets its investments in strategic growth businesses, specifically the
operator channel with security and storage as a service.
Short-term outlook
Markets for Security Services are expected to continue to grow. F-Secure has
earlier stated to seek to exceed in 2H2010 the average antivirus market growth,
which has been forecasted to grow around 5%.
The operator security business has experienced accelerating growth during the
year and current pace is anticipated to continue. The traditional license
business related revenues are estimated not to contribute to Q4 revenue growth.
Storage related services are anticipated to contribute to company level
accelerating revenue growth during 2011.
F-Secure revenues for the fourth quarter of 2010 are estimated to be between 32
million and 35 million. Costs are estimated to be around 27 million and in
addition restructuring related costs up to 3 million.
The majority of operational cost increases compared to the previous year are
targeted to support the long term scalability of the storage services business
and key security related R&D programs.
The revenue estimate is based on the sales pipeline at the time of publishing,
existing subscriptions and support contracts as well as current exchange rates.
News conference today at 11 am
A news conference for analysts and press is arranged today, on October 27, at
11 am Finnish time at the Group's Headquarters, address: Tammasaarenkatu 7
(Ruoholahti), Helsinki. A conference call for international investors and
analysts is arranged at 14.00 Finnish time (13.00 CET, 12.00 pm UK time).
Instructions on how to attend the conference call are available on the investor
pages of F-Secure's web site at
http://www.f-secure.com/en_EMEA/about-us/investor-relations/.
Financial calendar for 2011
F-Secure will publish the interim report for the fourth quarter on February 2,
2011. During 2011, the quarterly interim reports will be published on April 27
(Q1), July 27 (Q2) and October 26 (Q3). On the publication date a stock
exchange release will be sent at 9 am Finnish time to the NASDAQ OMX Helsinki
Ltd., a press and analyst conference will be arranged at 11 am Finnish time in
Helsinki, and an international conference call will be arranged in the
afternoon. Full details how to attend conference call will be provided on
F-Secure's website prior to the publishing of each interim report. The Annual
General Meeting is scheduled to be held on March 30, 2011 and the annual report
will be published on week 10.
F-Secure Corporation
Additional information
F-Secure Corporation
Kimmo Alkio, President and CEO
tel. +358 9 2520 0700
Taneli Virtanen, CFO
tel. +358 9 2520 5655
Mervi Pohjoisaho, IR
tel. +358 40 535 8989
This interim report is prepared in accordance with IAS 34 standard Interim
Financial Reporting and with accounting principles stated in the annual report
2009.
Key figures (unaudited):
Euro million
INCOME STATEMENT 2010 2009 2010 2009 Chge 2009
7-9 7-9 1-9 1-9 %
Revenues 32.0 31.1 95.7 93.4 3 125.1
Cost of revenues 2.2 2.7 6.1 7.8 -22 9.9
Gross margin 29.9 28.4 89.7 85.5 5 115.2
Other operating income 0.2 0.3 0.7 1.0 -26 1.1
Sales and marketing 13.9 13.6 43.7 41.0 7 56.9
Research and development 8.2 6.9 24.3 20.4 19 28.0
Administration 2.1 1.6 6.1 5.3 16 7.5
Operating result 5.9 6.6 16.3 19.8 -18 24.0
Financial net -0.4 0.1 -0.2 0.9 1.2
Result before taxes 5.5 6.7 16.1 20.8 25.2
Income taxes -1.4 -1.7 -4.2 -5.4 -6.5
Result for the period 4.2 5.0 12.0 15.4 18.7
Other comprehensive income:
Exchange diff. on translating
foreign operations -0.1 -0.1 0.1 -0.1 0.1
Available-for-sale fin.assets 0.2 -0.1 0.2 0.4 0.1
Income tax rel. to components
of other comprehensive income-0.1 0.0 -0.1 -0.1 0.0
Total comprehensive
Income (owners) 4.2 4.8 12.2 15.6 18.9
Earnings per share, e 0.03 0.03 0.08 0.10 0.12
EPS, diluted, e 0.03 0.03 0.07 0.10 0.12
BALANCE SHEET
ASSETS 30/9/2010 30/9/2009 31/12/2009
Intangible assets 15.4 13.1 13.5
Tangible assets 7.1 4.4 4.6
Goodwill 19.4 19.4 19.4
Other financial assets 4.9 2.3 2.8
Non-current assets total 46.8 39.2 40.4
Inventories 0.4 0.3 0.4
Other receivables 28.1 28.6 31.3
Available-for-sale
financial assets 16.8 15.0 17.6
Cash and bank accounts 12.1 16.1 16.1
Current asset total 57.5 60.0 65.5
Total 104.3 99.2 105.9
SHAREHOLDERS' EQUITY
AND LIABILITIES 30/9/2010 30/9/2009 31/12/2009
Equity 49.0 45.4 48.8
Other non-current 2.3 2.6 2.5
Deferred revenues 7.3 6.2 6.7
Non-current liabilities total 9.6 8.9 9.2
Other current 17.8 17.4 19.0
Deferred revenues 27.9 27.5 28.9
Current liabilities total 45.6 44.9 47.9
Total 104.3 99.2 105.9
Cash flow statement 30/9/2010 30/9/2009 31/12/2009
Cash flow from operations 16.0 11.8 16.4
Cash flow from investments 1) -9.3 -30.2 -31.8
Cash flow from financing
activities 2) -12.3 -11.9 -12.0
Change in cash -5.6 -30.3 -27.4
Cash and bank at 1 Jan 34.1 60.9 60.9
Change in net fair value of
Available-for-sale 0.2 0.4 0.1
Cash and bank at end of period 28.8 31.0 33.6
Statement of changes in shareholders' equity
share unstricted assets
share premium equity- treasury ret. avail. Trans. Total
Equity on: capital fund reserve shares earnings f.sale diff.
31.12.2009 1.6 0.2 3.1 -3.5 47.8 0.0 -0.3 48.8
Total
comprehensive
income
for the year 12.0 0.1 0.0 12.2
Dividend -9.3 -9.3
Other change -0.1 -0.1
Exercise of options 0.0 0.0
Treasury shares -3.0 -3.0
Cost of
share based payments 0.4 0.4
Equity on
30.9.2010 1.6 0.2 3.1 -6.5 50.7 0.1 -0.2 49.0
Note
1) Cash flow from investments
The final working capital regarding the acquisition of Steek S.A. was defined
and the amount was 1.1 million euros.
2) Cash flow from financing
The company has bought own shares by 2,983,307 euro. Dividend for year 2009
0.06 euro per share totaling 9,310,086.12 euro was paid on 8th April 2010. In
2009, paid dividend totaled 10,903,928.26 euro.
Key ratios 2010 2009 2009
9 m 9 m 12 m
Operating result,
% of revenues 17.0 21.3 19.2
ROI, % 47.3 50.9 45.0
ROE, % 32.5 36.3 32.2
Equity ratio, % 71.2 69.8 69.8
Debt-to-equity ratio, % -58.0 -67.4 -68.1
Earnings per share (EUR) 0.08 0.10 0.12
Earnings per share diluted 0.07 0.10 0.12
Shareholders' equity
per share, e 0.31 0.29 0.31
P/E ratio 22.1 22.1 22.8
Capitalized expenditures (Me) 8.0 35.3 37.2
Contingent liabilities 19.1 19.9 19.4
Personnel, average 841 756 770
Personnel, end of period 855 818 826
Segment information
The Group has only one segment; data security.
Quarterly development
1/09 2/09 3/09 4/09 1/10 2/10 3/10
Revenues 30.6 31.7 31.1 31.8 31.4 32.3 32.0
Cost of revenues 2.6 2.5 2.7 2.1 2.0 1.9 2.2
Gross margin 28.0 29.2 28.4 29.7 29.4 30.4 29.9
Other operating income 0.3 0.4 0.3 0.1 0.3 0.2 0.2
Sales and marketing 13.5 13.9 13.6 15.9 14.4 15.4 13.9
Research and
development 6.8 6.7 6.9 7.5 7.8 8.3 8.2
Administration 2.0 1.7 1.6 2.2 1.9 2.1 2.1
Operating result 6.1 7.2 6.6 4.1 5.5 4.9 5.9
Financial net 0.5 0.4 0.1 0.3 -0.1 0.2 -0.4
Result before taxes 6.5 7.6 6.7 4.4 5.5 5.2 5.5
Geographical information
7-9/2010 7-9/2009 1-9/2010 1-9/2009
Revenue Revenue Revenue Revenue
Nordic countries 10.5 10.7 31.7 32.7
Rest of Europe 14.6 14.7 44.2 42.6
North America 2.8 2.6 8.3 8.3
Rest of the world 4.1 3.1 11.5 9.8
Total 32.0 31.1 95.7 93.4
9/2010 9/2009
Assets Assets
Nordic countries 53.6 48.5
Rest of Europe 35.2 40.4
North America 4.0 3.2
Rest of the world 7.0 6.3
Total 99.8 98.4
© 2024 Nasdaq, Inc. All Rights Reserved |