2016-04-21 07:00:01 CEST
2016-04-21 07:00:01 CEST
REGLERAD INFORMATION
Comptel - Interim report (Q1 and Q3)
INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 31 MARCH 2016
Stock exchange release, 21 April 2016 at 8.00 AM
INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 31 MARCH 2016
Revenue grew and profitability improved.
-- Net sales EUR 22.4 (January - March 2015: 21.0), growth 6.8%
-- Operating result EUR 1.8 million (1.5), growth 17.6%
-- Net profit EUR 0.8 million (0.3), growth 183.5%
-- Earnings per share EUR 0.01 (0.00)
-- Order backlog EUR 60.0 million (55.8), growth 7.5%
Outlook (unchanged):
Comptel expects the 2016 net sales to continue to grow and operating profit to
be in the range of 8–14% of revenue.
Characteristically a significant part of Comptel’s operating profit and net
sales is generated in the second half of the year.
Juhani Hintikka, President and CEO:
“Our revenue continued to grow in the first quarter and our order intake was
close to 40 per cent higher than in first quarter last year. Our profitability
improved on both the operating result and the net profit level.
The Intelligent Data unit grew by 14.6 per cent in the first quarter compared
to the previous year. The growth in our Intelligent Data business unit that
started in second half of last year is continuing. The Intelligent Data unit’s
growth was due to the growth in our Data Refinery solution. In the first
quarter, the growth rate of the Service Orchestration unit was lower, mainly
due to the timing of certain customer deals.
In Asia-Pacific business development continued particularly well and the region
grew 22.6 per cent year on year. We see strong demand continuing in the
Asia-Pacific region.
In the first quarter, we also posted our first revenue from our new FWD
solution. The revenue was still small, but the progress with targeted customers
is very good, and we are on track with our plans for wider launch of the
product. We are currently working with pilot customers in Africa and elsewhere.
The progress with the FWD solution has been encouraging so far, and its future
potential is significant.
We also had a strong cash flow in first quarter with EUR 10.7 million operating
cash flow in the first quarter.
During the first quarter we secured 7 significant orders (Q1 2015:3), valued
over EUR 0.5 million.”
Business Review of the First Quarter 2016
Comptel’s net sales increased in the first quarter by 6.8 per cent from the
previous year, to 22.4 million (21.0). The net sales increase was due to the
strong backlog at the end of the year and growth in the Asia-Pacific region.
European sales continued to grow as in the second half of last year.
The operating result for the period was EUR 1.8 million (1.5), which
corresponds to 7.8 per cent of net sales (7.1). The growth resulted from
increased sales and profitability in the Intelligent Data unit.
The result before taxes was EUR 1.4 million (0.8), and the net result was EUR
0.83 million (0.29). Net profit improved by 183.5 per cent. Earnings per share
for the period under review were EUR 0.01 (0.00).
The tax expense for the period was EUR 0.6 million (0.5), of which EUR 0.3
million were withholding taxes, related to double taxation (0.3).
In January - March Comptel received seven significant orders (Q1 2015: 3),
Service Orchestration received four (two FlowOne Fulfillment and two FlowOne
Provisioning and Activation) and Intelligent Data received one (Data Refinery).
Two orders were multi solution orders across business units. As significant
orders Comptel reports sold projects and licenses with a minimum value of EUR
500,000.
The Group’s order backlog increased from the previous year and was EUR 60.0
million (55.8) at the end of the period.
Business areas
Net sales, 1-3 1-3 Change, 1-12
EUR million 2016 2015 % 2015
------------------------------------------------
Intelligent Data 10.4 9.1 14.6 42.5
------------------------------------------------
Service Orchestration 11.9 11.8 0.9 55.2
------------------------------------------------
Other 0.0 0.0 0.0 0.0
------------------------------------------------
Total 22.4 21.0 6.8 97.7
------------------------------------------------
Operating result,
EUR million
------------------------------------------------
Intelligent Data 1.7 0.9 91.9 5.8
------------------------------------------------
Service Orchestration 0.7 1.1 -33.2 5.1
------------------------------------------------
Other -0.7 -0.5 -38.2 -2.5
------------------------------------------------
Total 1.8 1.5 17.6 8.5
------------------------------------------------
Operating result,
% of net sales
------------------------------------------------
Intelligent Data 16.5 9.8 - 13.7
------------------------------------------------
Service Orchestration 6.2 9.3 - 9.3
------------------------------------------------
Other 0.0 0.0 - 0.0
------------------------------------------------
Total 7.8 7.1 - 8.7
------------------------------------------------
Intelligent Data revenue continued to grow in first quarter, which impacted
also favourably the profitability of the business unit. The growth rate of
Service Orchestration was lower due to timing of certain deals that were
delayed to the second quarter. This impacted also the profitability of Service
Orchestration.
Net sales breakdown, 1-3 1-3 Change, % 1-12
EUR million 2016 2015 2015
-----------------------------------------------------------
Project & License business 14.2 12.1 17.2 63.3
-----------------------------------------------------------
Recurring business 8.2 8.9 -7.3 34.4
-----------------------------------------------------------
Total 22.4 21.0 6.8 97.7
-----------------------------------------------------------
The growth in the quarter was driven by the project and license business.
Net sales Regional breakdown, 1-3 1-3 Change, % 1-12
EUR million 2016 2015 2015
----------------------------------------------------------
APAC 7.4 6.0 22.6 29.6
----------------------------------------------------------
EMEA 13.3 12.5 6.0 56.9
----------------------------------------------------------
AMERICAS 1.7 2.4 -28.4 11.2
----------------------------------------------------------
Total 22.4 21.0 6.8 97.7
----------------------------------------------------------
Asia-Pacific showed strong growth of 22.6 per cent year on year. The EMEA
region grew by six per cent. Revenue in the Americas region decreased year on
year, mainly due to the seasonality in the timing of deal flows in the region.
Financial Position
EUR million 31 Mar 31 Mar Change 31 Dec Change
2016 2015 , 2015 ,
% %
--------------------------------------------------------------------------------
Statement of financial position 79.6 70.4 13.1 86.4 -7.8
total
--------------------------------------------------------------------------------
Liquid assets 12.7 7.8 62.4 3.0 319.8
--------------------------------------------------------------------------------
Trade receivables, gross 29.3 28.9 1.4 42.1 -30.4
--------------------------------------------------------------------------------
Bad debt provision -1.8 -1.4 28.7 -1.6 10.6
--------------------------------------------------------------------------------
Trade receivables, net 27.5 27.5 0.0 40.5 -32.1
--------------------------------------------------------------------------------
Accrued income 11.4 9.6 19.2 10.0 14.5
--------------------------------------------------------------------------------
Deferred income related to 3.9 3.6 9.1 3.3 18.5
partial debiting
--------------------------------------------------------------------------------
Interest-bearing debt 8.1 7.5 8.5 7.2 13.5
--------------------------------------------------------------------------------
Equity ratio, per cent 61.0 60.5 0.8 52.4 16.4
--------------------------------------------------------------------------------
The statement of the financial position on 31 March 2016 was EUR 79.6 million
(70.4), of which liquid assets amounted to EUR 12.7 million (7.8). The
operating cash flow was EUR 10.7 million (-0.6) in the first quarter. The
strong cash flow was a result of efficient receivable management.
Trade receivables were EUR 27.5 million (27.5) at the end of the period. The
accrued income was EUR 11.4 million (9.6). The deferred income related to
partial debiting was EUR 3.9 million (3.6).
Comptel has a EUR 25 million credit facility arrangement consisting of a EUR 20
million revolving credit facility and a EUR 5 million overdraft capacity on
current bank account. Out of this arrangement, Comptel had EUR 8 million of the
revolving credit facility outstanding at the end of the period. The credit
facility is valid until July 2018.
The equity ratio was 61.0 per cent (60.5) and the gearing ratio was -12.1 per
cent (-1.0).
Research and Development (R&D)
EUR million 1-3 1-3 Change, % 1-12
2016 2015 2015
-------------------------------------------------------------------------------
Direct R&D expenditure 4.6 4.3 7.7 20.3
-------------------------------------------------------------------------------
Capitalisation of R&D expenditure according to -1.3 -1.1 27.2 5.2
IAS 38
-------------------------------------------------------------------------------
R&D depreciation and impairment charges 1.4 1.3 7.1 5.5
-------------------------------------------------------------------------------
R&D expenditure, net 4.7 4.5 3.0 20.6
-------------------------------------------------------------------------------
Direct R&D expenditure, % of net sales 20.7 20.6 - 20.8
-------------------------------------------------------------------------------
Direct R&D expenditure represented 20.7 per cent (20.6) of net sales.
The key focus of Comptel’s R&D expenditure was in the further development of
our existing solutions (Service Orchestration and Intelligent Data) and release
of the new FWD time-based mobile data marketing solution.
Development work has focused on securing recurring revenue with competitive
products, winning new markets by giving customers unique value, and improving
margins with better deployment and scalability of our products.
The FlowOne Fulfillment solution has been developed as a suite of orchestration
elements that manage the life-cycle of digital services and business flows from
ground to cloud. Data Refinery captures data-in-motion and uses Softblade(TM)
technology with embedded intelligence to refine it for automated real-time
decision making. Monetizer is the business policy and charging solution that
sets the speed to money and allows the innovation and designing of rich
communication and data. Data Fastermind embeds artificial intelligence,
predictive analytics and machine learning capabilities into all solutions. In
all of these areas, Comptel seeks global thought leadership in solving the
business challenges of operators and digital communications service providers.
During 2016 the company will further continue to develop its current offering.
Three major software releases were launched in these respective product areas
during the review period.
Investments
EUR million 1-3 1-3 Change, 1-12
2016 2015 % 2015
--------------------------------------------------------------------------------
Gross investments in property, plant and equipment 0.1 0.1 4.3 0.6
and intangible assets
--------------------------------------------------------------------------------
The investments comprised of devices, software and furnishings. The investments
were funded through cash flow from operations.
Personnel
31 Mar 31 Mar Change, 31 Dec Change,
2016 2015 % 2015 %
--------------------------------------------------------------------------------
Number of employees at the end 749 689 8.7 742 0.94
of period
--------------------------------------------------------------------------------
1-3 1-3 Change, % 1-12 Change, %
2016 2015 2015
--------------------------------------------------------------------------------
Average number of personnel during the 741 676 9.6 723 2.5
period
--------------------------------------------------------------------------------
The number of employees increased compared to the previous year due to growth
investments during 2015. In the first quarter, the personnel expenses were 45.5
per cent of net sales (45.7).
At the end of the period, 28.8 per cent (29.8) of the personnel were located in
Finland, 24.4 per cent (28.2) in Malaysia, 11.5 per cent (11.2) in Bulgaria,
12.1 per cent (8.0) in India, and 23.2 per cent (23.8) in other countries where
Comptel operates.
Comptel share
The closing share price of the period was EUR 1.54 (0.98). Comptel’s market
value at the end of the period was EUR 166.7 million (104.8).
Comptel share 1-3 1-3 Change, % 1-12
2016 2015 2015
-------------------------------------------------------
Shares traded, million 14.7 6.2 137.1 41.2
-------------------------------------------------------
Shares traded, EUR million 21.7 5.8 274.1 52.9
-------------------------------------------------------
Highest price, EUR 1.80 1.00 80.0 1.93
-------------------------------------------------------
Lowest price, EUR 1.19 0.84 41.7 0.84
-------------------------------------------------------
Of Comptel’s outstanding shares, 6.0 per cent (6.2) were nominee registered or
held by foreign shareholders at the end of the period.
The company held 418,507 of its own shares at the end of the period, which is
0.39 per cent of the total number of its shares. The total counter-book value
of the shares held by the company was EUR 8,244.
300,000 new shares were issued to the company itself during the review period.
Corporate Governance
Comptel Corporation’s Annual General Meeting (AGM) was held on 6 April 2016.
The AGM resolved the number of Board members to be five. Mr Pertti Ervi, Mr
Hannu Vaajoensuu, Ms Eriikka Söderström, and Mr Antti Vasara were re-elected as
members of the Board of Directors. Thomas Berlemann was elected as a new member
of the Board of Directors.
The AGM appointed Ernst & Young Oy as the company’s auditor. Mr. Mikko
Järventausta is acting as the principal auditor.
The AGM resolved that a dividend of 0.03 EUR per share will be paid for the
year 2015.
In its meeting held after the Annual General Meeting, the Board of Directors
elected Mr Pertti Ervi as chairman and Mr Hannu Vaajoensuu as vice chairman.
The Board of Directors decided to establish an audit committee to deal with the
preparation of matters relating to the company’s financial reporting and
control. The Board of Directors elected Ms Eriikka Söderström as the chairman
of the audit committee, and Mr Pertti Ervi and Mr Antti Vasara as the members
of the audit committee. All the members of the audit committee are independent
from the company and its significant shareholders.
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 or conveying of the
company’s own shares up to a maximum number of 10,700,000 shares. The
authorisations are valid until 30 June 2017. However, the authorisation to
implement the company’s share-based incentive programs is valid five years from
the AGM resolution.
A separate stock exchange release about the authorisations given and other
decisions made by the Annual General Meeting was published on 6 April 2016.
Events after the Reporting Period
Comptel has received a favourable ruling in Delhi judicial court regarding
withholding tax for Indian tax years 2007-2008 and 2008-2009. A separate stock
exchange release have been issued on 15th of April regarding this.
The company AGM was held on the 6th of April and a separate stock exchange has
been published on that.
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 of 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 systems, and
the value of a single project may be several million euros. Therefore, the
credit risk associated with a single project or an individual customer may be
significant. Furthermore, some of Comptel’s customers operate in countries
where the political or financial climate can be unstable 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 question. This could mean that the double taxation will prevail.
Comptel has also applications for return of withholding taxes in other
countries but they are subject to local legal processes, which take time to get
completed.
The risks and uncertainties of Comptel are described in more detail in the
company’s financial statements and the Board of Directors’ report for 2015.
Outlook (unchanged)
Comptel expects the 2016 net sales to continue to grow and operating profit to
be in the range of 8-14% of revenue.
Characteristically a significant part of Comptel’s operating profit and net
sales is generated in the second half of the year.
Schedule for Comptel’s interim reports in 2016:
January-June 9 August 2016
January-September 20 October 2016
COMPTEL CORPORATION
Board of Directors
Additional information:
Mr Juhani Hintikka, President and CEO, tel. +358 9 700 1131
Mr Tom Jansson, CFO, tel. +358 40 700 1849
TABLE PART
The interim financial statements have been prepared in accordance with IAS 34,
Interim Financial Reporting, as adopted by the EU. The accounting policies and
methods of computation adopted in the financial statements are consistent with
those of the annual financial statements for the year ended 2015.
All figures in the financial report have been rounded and consequently the sum
of the individual figures can deviate from the sum figure. The interim report
is unaudited.
Consolidated Statement of Comprehensive Income 1 Jan – 1 Jan –
(EUR 1,000) 31 Mar 31 Mar
2016 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 22,392 20,957
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other operating income 3 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Materials and services -1,118 -1,104
--------------------------------------------------------------------------------
Employee benefits -10,194 -9,576
--------------------------------------------------------------------------------
Depreciation, amortisation and impairment charges -1,621 -1,610
--------------------------------------------------------------------------------
Other operating expenses -7,707 -7,177
--------------------------------------------------------------------------------
-20,640 -19,467
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss 1,755 1,493
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 905 852
--------------------------------------------------------------------------------
Financial expenses -1,238 -1,550
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss before income taxes 1,421 795
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -593 -503
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period 827 292
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income to be reclassified to profit or
loss in subsequent periods
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash Flow hedges 637 47
--------------------------------------------------------------------------------
Translation differences -464 721
--------------------------------------------------------------------------------
Income tax relating to components of other comprehensive -134 -9
income
--------------------------------------------------------------------------------
Total other comprehensive income 39 758
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income for the period 866 1,050
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 827 292
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 866 1,050
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders of the parent company:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.01 0.00
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR 0.01 0.00
--------------------------------------------------------------------------------
Consolidated Statement of Financial Position (EUR 1,000) 31 Mar 31 Dec
2016 2015
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Non-current assets
---------------------------------------------------------------------------
Goodwill 2,646 2,646
---------------------------------------------------------------------------
Other intangible assets 12,750 12,837
---------------------------------------------------------------------------
Tangible assets 1,101 1,152
---------------------------------------------------------------------------
Investments in associates 960 960
---------------------------------------------------------------------------
Available-for-sale financial assets 87 87
---------------------------------------------------------------------------
Deferred tax assets 8,005 7,685
---------------------------------------------------------------------------
Other non-current receivables 716 646
---------------------------------------------------------------------------
26,265 26,013
---------------------------------------------------------------------------
Current assets
---------------------------------------------------------------------------
Trade and other current receivables 39,949 56,930
---------------------------------------------------------------------------
Current tax asset 710 403
---------------------------------------------------------------------------
Cash and cash equivalents 12,721 3,030
---------------------------------------------------------------------------
53,381 60,363
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total assets 79,645 86,376
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Equity and liabilities
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Equity attributable to equity holders of the parent company
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Share capital 2,141 2,141
---------------------------------------------------------------------------
Fund of invested non-restricted equity 1,698 1,698
---------------------------------------------------------------------------
Translation differences -973 -510
---------------------------------------------------------------------------
Fair value reserve 365 -171
---------------------------------------------------------------------------
Retained earnings 34,789 34,165
---------------------------------------------------------------------------
Total equity 38,019 37,324
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Non-current liabilities
---------------------------------------------------------------------------
Deferred tax liabilities 2,682 2,572
---------------------------------------------------------------------------
Non-current financial liabilities 58 92
---------------------------------------------------------------------------
2,741 2,664
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Current liabilities
---------------------------------------------------------------------------
Provisions 1,021 1,090
---------------------------------------------------------------------------
Current financial liabilities 8,079 7,075
---------------------------------------------------------------------------
Trade and other current liabilities 29,786 38,223
---------------------------------------------------------------------------
38,886 46,388
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total liabilities 41,626 49,052
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Total equity and liabilities 79,645 86,376
---------------------------------------------------------------------------
Consolidated Statement of Cash Flows 1 Jan – 31 1 Jan – 31
(EUR 1,000) Mar Mar
2016 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from operating activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period 827 292
--------------------------------------------------------------------------------
Adjustments:
--------------------------------------------------------------------------------
Non-cash transactions or items that are not part of cash 1,982 2,347
flows from operating activities
--------------------------------------------------------------------------------
Interest and other financial expenses 49 78
--------------------------------------------------------------------------------
Interest income 3 -28
--------------------------------------------------------------------------------
Income taxes 593 505
--------------------------------------------------------------------------------
Change in working capital:
--------------------------------------------------------------------------------
Change in trade and other current receivables 16,536 6,094
--------------------------------------------------------------------------------
Change in trade and other current liabilities -8,952 -8,702
--------------------------------------------------------------------------------
Change in provisions 671 -110
--------------------------------------------------------------------------------
Interest and other financial expenses paid -49 -78
--------------------------------------------------------------------------------
Interest received -3 26
--------------------------------------------------------------------------------
Income taxes paid and tax returns received -957 -984
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash from operating activities 10,700 -561
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from investing activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in tangible assets -123 -118
--------------------------------------------------------------------------------
Investments in development projects -1,348 -1,060
--------------------------------------------------------------------------------
Proceeds from sale of intangible assets 1 5
--------------------------------------------------------------------------------
Change in other non-current receivables -99 16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash used in investing activities -1,570 -1,157
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from financing activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shares issued - 6
--------------------------------------------------------------------------------
Proceeds from borrowings 10,000 3,989
--------------------------------------------------------------------------------
Repayment of borrowings -8,990 -4,000
--------------------------------------------------------------------------------
Lease payments -45 -68
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash used in financing activities 965 -75
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in cash and cash equivalents 10,095 -1,793
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the period 3,030 9,352
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 12,721 7,833
--------------------------------------------------------------------------------
Change 9,691 -1,519
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Effects of changes in foreign exchange rates -404 274
--------------------------------------------------------------------------------
Consolidated Statement of Changes in Equity
-------------------------------------------------------------------------
Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
EUR 1,000 Share Other Translation Fair Retained Total
capital reserve differences value earnings
s reserve
--------------------------------------------------------------------------------
Equity at 2,141 401 -698 -182 31,684 33,346
31 Dec 2014
--------------------------------------------------------------------------------
Shares issued 6 6
--------------------------------------------------------------------------------
Share-based -91 -91
compensation
--------------------------------------------------------------------------------
Other changes 25 25
--------------------------------------------------------------------------------
Total comprehensive 721 37 292 1,050
income for the
period
--------------------------------------------------------------------------------
Equity at 2,141 407 24 -144 31,909 34,337
31 Mar 2015
--------------------------------------------------------------------------------
Consolidated Statement of Changes in Equity
-------------------------------------------------------------------------
Equity attributable to equity holders of the parent company
-------------------------------------------------------------------------
EUR 1,000 Share Other Translation Fair value Retain Total
capital reserves differences reserve ed
earnin
gs
--------------------------------------------------------------------------------
Equity at 2,141 1,698 -510 -170 34,165 37,324
31 Dec 2015
--------------------------------------------------------------------------------
Share-based 79 79
compensation
--------------------------------------------------------------------------------
Prior year -283 -283
correction *
--------------------------------------------------------------------------------
Total comprehensive -463 535 827 899
income for the
period
--------------------------------------------------------------------------------
Equity at 2,141 1,698 -973 365 34,788 38,019
31 Mar 2016
--------------------------------------------------------------------------------
*Prior year expenses were corrected directly to Retained Earnings during the
quarter.
Notes
1. Application of new or amended standards and interpretations
Comptel has adopted the new or amended standards and interpretations, effective
for the financial years beginning on or after 1 January 2016. However those
have not had an impact on the consolidated financial statements.
2. Segment information
Net sales by segment
EUR 1,000 1 Jan – 1 Jan –
31 Mar 2016 31 Mar 2015
-----------------------------------------------
-----------------------------------------------
Intelligent Data 10,439 9,113
-----------------------------------------------
Service Orchestration 11,946 11,844
-----------------------------------------------
Other 6 -
-----------------------------------------------
Group total 22,392 20,957
-----------------------------------------------
Operating profit/loss by segment
EUR 1,000 1 Jan – 1 Jan –
31 Mar 2016 31 Mar 2015
------------------------------------------------------------
------------------------------------------------------------
Intelligent Data 1,717 895
------------------------------------------------------------
Service Orchestration 739 1,105
------------------------------------------------------------
Other -701 -507
------------------------------------------------------------
Group operating profit/loss total 1,755 1,493
------------------------------------------------------------
3. Income tax
Income tax expense according to the statement of comprehensive income for the
period was EUR 593 thousand (EUR 503 thousand).
In 2006, the Board of 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 question. 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 300 thousand
in January - March (EUR 253 thousand).
4. Tangible assets
EUR 1,000 1 Jan – 1 Jan –
31 Mar 2016 31 Mar 2015
-----------------------------------
-----------------------------------
Additions 123 118
-----------------------------------
5. 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 – 1 Jan –
31 Mar 2016 31 Mar 2015
-----------------------------------------
-----------------------------------------
Associate
-----------------------------------------
Interest income 2 2
-----------------------------------------
EUR 1,000 31 Mar 2016 31 Dec 2015
-------------------------------------------------
-------------------------------------------------
Associate
-------------------------------------------------
Non-current receivables 123 121
-------------------------------------------------
Remuneration to key management
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 Mar 1 Jan – 31 Mar
2016 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Salaries and other short-term employee 344 351
benefits
--------------------------------------------------------------------------------
Share-based payments -72 36
--------------------------------------------------------------------------------
Total 272 387
--------------------------------------------------------------------------------
Guarantees and other commitments
EUR 1,000 31 Mar 2016 31 Dec 2015
------------------------------------
------------------------------------
Guarantees 10 29
------------------------------------
6. Commitments
Minimum lease payments on non-cancellable office facilities and other operating
leases are payable as follows:
EUR 1,000 31 Mar 2016 31 Dec 2015
----------------------------------------------------
----------------------------------------------------
Less than one year 2,004 2,161
----------------------------------------------------
Between one and five years 6,779 1,218
----------------------------------------------------
Total 8,784 3,379
----------------------------------------------------
The group had no material capital commitments for the purchase of tangible
assets at 31 March 2016 and 31 March 2015.
7. Contingent liabilities
EUR 1,000 31 Mar 2016 31 Dec 2015
---------------------------------------------
---------------------------------------------
Bank guarantees 2,421 2,727
---------------------------------------------
Corporate mortgages 200 200
---------------------------------------------
EUR 1,000 31 Mar 2016 31 Dec 2015
--------------------------------------------------------------------
--------------------------------------------------------------------
Contingent liabilities on behalf of others
--------------------------------------------------------------------
Guarantees 28 29
--------------------------------------------------------------------
8. Fair values of financial assets and liabilities
EUR 1,000 Book Fair Book Fair Book Fair
value value value value value value
31.3.2 31.3.2 31.3.2 31.3.2 31.12. 31.12.
016 016 015 015 2015 2015
--------------------------------------------------------------------------------
Financial assets
--------------------------------------------------------------------------------
Financial assets at fair value
through profit or loss
--------------------------------------------------------------------------------
Forward contracts (level 2) 442 442 36 36 - -
--------------------------------------------------------------------------------
Available-for-sale financial 87 87 87 87 87 87
assets (level 3))
--------------------------------------------------------------------------------
Non-current trade receivables 2,237 2,237 1,693 1,693 1,872 1,872
--------------------------------------------------------------------------------
Current trade receivables 27,050 27,050 27,177 27,177 40,232 40,232
--------------------------------------------------------------------------------
Other current receivables 965 965 680 680 7,133 7,133
--------------------------------------------------------------------------------
Cash and cash equivalents 12,721 12,721 7,833 7,833 3,030 3,030
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial liabilities
--------------------------------------------------------------------------------
Financial liabilities at fair
value through profit or loss
--------------------------------------------------------------------------------
Forward contracts (level 2) 48 48 1,226 1,226 138 138
--------------------------------------------------------------------------------
Trade payables and other 29,786 29,786 24,727 24,727 38,020 38,020
liabilities
--------------------------------------------------------------------------------
Non-current loans from financial 22 22 67 67 33 33
institutions
--------------------------------------------------------------------------------
Non-current finance lease 36 36 137 137 58 58
liabilities
--------------------------------------------------------------------------------
Current loans from financial 7,984 7,995 6,984 7,028 5,044 5,056
institutions
--------------------------------------------------------------------------------
Current bank overdraft facility - - - - 1,918 1,918
--------------------------------------------------------------------------------
Current finance lease - - - - 112 112
liabilities
--------------------------------------------------------------------------------
Other current liabilities - - 63 63 - -
--------------------------------------------------------------------------------
9. Key figures
Financial summary 1 Jan – 1 Jan –
31 Mar 31 Mar
2016 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales, EUR 1,000 22,392 20,957
--------------------------------------------------------------------------------
Net sales, change % 6.8 16.3
--------------------------------------------------------------------------------
Operating profit/loss, EUR 1,000 1,755 1,493
--------------------------------------------------------------------------------
Operating profit/loss, change % 17.5 55.7
--------------------------------------------------------------------------------
Operating profit/loss, as % of net sales 7.8 7.1
--------------------------------------------------------------------------------
Profit/loss before taxes, EUR 1,000 1,421 795
--------------------------------------------------------------------------------
Profit/loss before taxes, as % of net sales 6.3 3.8
--------------------------------------------------------------------------------
Return on equity, % - -
--------------------------------------------------------------------------------
Return on investment, % - -
--------------------------------------------------------------------------------
Equity ratio, % 61.0 60.5
--------------------------------------------------------------------------------
Gross investments in tangible and intangible assets, EUR 123 118
1,0001)
--------------------------------------------------------------------------------
Gross investments in tangible and intangible assets, as 0.6 0.6
% of net sales
--------------------------------------------------------------------------------
Capitalisations according to IAS 38 to intangible 1,348 1,060
assets, EUR 1,000
--------------------------------------------------------------------------------
Research and development expenditure, EUR 1,000 4,640 4,307
--------------------------------------------------------------------------------
Research and development expenditure, 20.7 20.6
as % of net sales
--------------------------------------------------------------------------------
Order backlog, EUR 1,000 60,011 55,798
--------------------------------------------------------------------------------
Average number of employees during the period 741 676
--------------------------------------------------------------------------------
Interest-bearing net liabilities, EUR 1,000 -4,584 -332
--------------------------------------------------------------------------------
Gearing ratio, % -12.1 -1.0
--------------------------------------------------------------------------------
1) The figure does not include investments in development projects.
Per share data 1 Jan – 1 Jan –
31 Mar 2016 31 Mar 2015
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Earnings per share (EPS), EUR 0.01 0.00
-----------------------------------------------------------------------------
EPS diluted, EUR 0.01 0.00
-----------------------------------------------------------------------------
Equity per share, EUR 0.34 0.32
-----------------------------------------------------------------------------
Dividend per share, EUR - -
-----------------------------------------------------------------------------
Dividend per earnings, % - -
-----------------------------------------------------------------------------
Effective dividend yield, % - -
-----------------------------------------------------------------------------
P/E ratio - -
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Adjusted number of shares at the end of the period 108,395,409 107,432,270
-----------------------------------------------------------------------------
of which the number of treasury shares 418,507 464,739
-----------------------------------------------------------------------------
Outstanding shares 107,976,902 106,967,531
-----------------------------------------------------------------------------
Adjusted average number of shares during the period 107,370,551 106,966,567
-----------------------------------------------------------------------------
Average number of shares, dilution included 110,119,850 107,758,737
-----------------------------------------------------------------------------
10. 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)
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