2010-04-28 08:00:00 CEST
2010-04-28 08:00:03 CEST
REGULATED INFORMATION
F-Secure Oyj - Interim report (Q1 and Q3)
F-Secure Corporation - Interim Report January 1 - March 31, 2010
F-SECURE CORPORATION April 28, 2010 at 9.00
F-Secure Corporation - Interim Report January 1 - March 31, 2010
Software as a Service business continued as a growth driver, financial
performance as anticipated, solid profitability
Highlights in Q1
- Total revenues grew by 3% reaching revenues of 31.4 million (Q12009: 30.6 m)
- Revenues from the operator business (ISPs, mobile operators and cable
operators) grew by 10% from Q109, reaching revenues of 15.6 million (14.2m)
- EBIT was 5.5 million; representing 18% of revenues (6.1m, 20%)
- Earnings per share was EUR 0.03 (EUR 0.03)
- Cash flow from operations was 6.9 million positive (4.9m positive)
- Software as a Service continues to drive growth
- Outlook: Revenues for Q2/2010 are estimated to be between 30 and 32 million.
Costs are estimated to be around 25m
(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
Key figures 2010 2009 2009 2009
Eur million 1-3 1-3 12m 10-12
Revenues 31.4 30.6 125.1 31.8
Operating profit 5.5 6.1 24.0 4.1
% of revenues 18 % 20 % 19 % 13 %
Profit before taxes 5.5 6.5 25.2 4.4
Earnings per share (EUR) 0.03 0.03 0.12 0.02
At the end of period:
Deferred revenue 37.2 37.8 35.6 35.6
Equity ratio, % 58% 58% 70% 70%
Debt-to-equity ratio, % -85% -184% -67% -67%
Personnel 836 728 826 826
CEO Kimmo Alkio: “We are pleased to deliver a solid financial result that gives
a good start for the year. Our opportunities as the leading Software as a
Service partner for operators globally continues to be attractive; the launches
of Biglobe in Japan, Zon in Portugal and 3Italy (Hutchison) are good examples
of our current competitiveness Our operator centric strategy will be a strong
growth driver for the future though the first half of 2010 revenues are
somewhat lower than anticipated. In Q1 we experienced a healthy security
subscriber growth that will materialize in revenue growth in the latter part of
2010.”
F-Secure business during Q12010 at the Group level
For the first quarter of 2010, the total revenues were 31.4 million (Q12009:
30.6m), growth of 3%. Revenue growth continued through the operator channel, up
10% from Q109 and totaled 15.6m. Revenue through the traditional channels was
down by 4%, totaling 15.8m, while the sales were strong as seen in growth of
deferred revenues. EBIT was 5.5 million (6.1m), representing 18% of revenues;
improving from Q409 (13% of revenues). Earnings per share were EUR 0.03 (EUR
0.03). Cash flow from operations was 6.9 million positive (4.9m positive). The
Group deferred revenue increased to 37.2m at the end of March (35.6m at the end
of 2009) due to healthy renewal sales.
The Group total costs for Q110 were 24.1 million (22.3m), 8% higher than in
Q109. The cost increase was mainly impacted by operating costs of storage and
digital content business (acquired in July 2009). The Group capitalized some of
its R&D expenses according to accounting rules, totaling 0.7 million (0.2m) for
Q12010.
The financial results for the first quarter of 2010 were in line with the
guidance given in January (revenues 30-32 million, cost level around 24
million); revenues for the first quarter were 31.4. The costs were 24.1m. EBIT
was 5.5m; 18% of revenues.
In the first quarter of 2010 the geographical breakdown of the revenues split
as follows: Finland and Scandinavia 33% (34%), Rest of Europe 46% (45%), North
America 9% (10%) and Rest of the World 12% (11%).
Operator channel in Q1
The Group's offering in the Software as a Service business includes PC and
mobile security and a broad range of storage based services. The Group's
operator business (including ISPs, mobile operators and cable operators)
continued to perform well. In the first quarter of 2010, revenues through the
operator business partners totaled 15.6 million (Q109: 14.2m), representing
close to 50% of the Group total revenues (46%). Revenue growth was 10% compared
to the corresponding quarter in 2009. As informed in guidance given in February
2010, the growth rate was negatively impacted by one time contractual changes;
this one time impact was approximately 6% negative on YoY and QoQ growth in Q1.
The Group's position in the operator business 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 operator business's number
of security subscribers demonstrated healthy growth.
The Storage and Digital Content (SDC) market entry has further strengthened
F-Secure's attractiveness as a long term strategic partner for major operators
globally. However, the development in storage related revenues in Q1 was
disappointing due to delays in project delivery; revenues were in similar level
as in Q4. The Storage and Digital content business project pipeline has
developed well and shows good revenue growth opportunity in mid- and longer
term. However, as said before, quarterly revenue forecasting in this business
has more variability than the traditional F-Secure business.
The company currently has more than 200 partners in over 40 countries with an
addressable market of over 70 million broadband consumer customers. The Group
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, the Group has continued to enforce its presence in Asia. In
April, new major partnership was announced in Japan with NEC Biglobe, which is
one of the leading Internet operators in Japan and Zon in Portugal. Internet
Security was launched for 3Italy (Hutchison) in Italy for their mobile
broadband users in Internet dongles. The frame agreement with Vodafone now
covers internet security for smartphones as well as PC protection.
The total number of the Group's operator partners is significantly larger than
that of any other security service vendor. At the end of 2010 the Group'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 Q1
During Q1, the revenues through traditional channels were 15.8 million (16.5m),
showing a decline of 4% from the corresponding period in 2009. These
traditional channels represented 50% of the Group's total revenues (54%).
The sales in traditional channels continued solid. The renewal rates during the
first quarter were strong as seen in the growth of deferred revenues in Q1.
Mobile security in Q1
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.
In February, F-Secure launched Mobile Security 6, a new version of its leading
smartphone security solution, including 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. F-Secure also launched F-Secure Mobile Security product also for
smartphones on Android platform. The solution includes mobile security,
anti-theft and browsing protection.
F-Secure also announced its new standalone 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, Windows, and Android platforms.
The revenues from the Mobile Security business are included in the above
mentioned channels and were about 2% of the Group's total quarterly revenues.
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 the first quarter of 2010 the key announcements were mainly for the
mobile segment.
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 first quarter. However, there have been signs of
increasing price competition in some countries. The Group's competitive
position in the operator channel has remained strong though the slower growth
in sales of fixed broadband connections by operators may have slowed down
growth of the Security as a Service business. The broadband market is at the
same time 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.
Personnel and organization
The Group's personnel totaled 836 at the end of December (Q410: 826, Q109:
728). The Group's number of personnel continued to increase slightly during the
quarter in sales and marketing.
The Executive Team currently consists of the following persons: Kimmo Alkio
(President and CEO), Ari Alakiuttu (Vice President, Human Resources),
Christophe Camborde (Vice President, Storage and Digital Content business
unit), 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), Antti Reijonen (Vice President, Consumer
Business and Marketing) and Taneli Virtanen (Chief Financial Officer).
Financing and capital structure
The Group's financial position continued strong. The Group's equity ratio at
the end of March was 58% (58%) and 67% if the effect of dividend payment in
April was taken into account. Gearing ratio was 85% negative (184% negative).
Cash flow from the operations for the first quarter was 6.9 million positive
(4.9m positive). Total cash flow including investments and share buy backs was
2 million positive (3.1m positive). The net financial income for Q109 was 0.1
million negative due to low interest income and some exchange rate losses (0.5m
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 the Group on March 31, 2010 was 35.9 million (64.3m).
The changes in exchange rate of USD had some negative impact and changes in
JPY, GBP and SEK had some positive impact on revenues and results for the first
quarter of 2010.
Capital expenditure
The Group's capital expenditure in the first quarter was 2.9 million (1.2m),
consisting mainly of the acquisition cost and in 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 the Group'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.
Based on the authorization by the Annual General Meeting of 2009, during
January-March, F-Secure has bought altogether 751.695 shares corresponding to
0.5% of the company's shares and voting rights. Including all shares bought,
the total number of own shares held at the end of March 2010 was 2.301.141
shares, corresponding to approximately 1.5% 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 for making acquisitions or implementing other arrangements
related to the Company's business, to improve the Company's financial
structure, to be used as part of the incentive compensation plan or for the
purpose of otherwise assigning or cancelling the shares.
Shares, shareholders' equity and option programs
The trading of 2005 B- and C-warrants of F-Secure Corporation commenced on the
Nasdaq OMX Helsinki Ltd. on March 1, 2010. Each 2005 B-warrant entitles holders
to subscribe for one F-Secure share at a price of EUR 2,78. Each 2005 C-warrant
entitles holders to subscribe for one F-Secure share at a price of EUR 1,60.
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 157,469,243. 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
The Group 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
the Group's web pages. F-Secure published a corporate governance statement for
2009 in the annual report and on the company website in March.
Risks and uncertainties
The Group has not seen material changes to the risks and uncertainties during
the reporting period. However, the current situation in the global economy has
continued to impact on the traditional license sales. This is seen especially
as a slowdown in new license sales. The slower growth in sales of fixed
broadband connections by operators may also have impact on security service
sales. As the uncertainty in the economic environment has continued, the Group
continues to monitor closely the development in the economic and financial
markets.
The Group's risks and uncertainties are related to, among other things, the
competitiveness of the Group'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 the
Group'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.
Therefore, this causes more variability timing wise in the revenue estimates
for the online storage business,
F-Secure Inc. the U.S. subsidiary of F-Secure Corporation has been dismissed
from a patent infringement lawsuit filed in a state court in the U.S in
December 2008, referred to in the previous interim releases.
Annual General Meeting
The Annual General Meeting of F-Secure Corporation was held on March 24, 2010.
The Meeting confirmed the financial statements for the financial year 2009. The
members of the Board and the President and CEO were granted a discharge from
liability.
The Annual General Meeting decided to distribute a dividend of EUR 0.06 per
share, which was paid to those shareholders that on the record date of March
29, 2010 were registered in the Register of Shareholders held by Euroclear
Finland Ltd. The dividend was paid on April 8, 2010. Further, the Board of
Directors was authorized to grant during year 2010 no more than EUR 100 000 to
support activities of universities and colleges.
It was decided that the annual compensation remain on a previous year's level;
for the chairman is EUR 55,000, for the chairmen of Executive and Audit
Committee EUR 40,000 and for members EUR 30,000. Approximately 40% of the
annual remuneration will be paid as company shares.
It was decided that the number of Board members would be six. The following
members were re-elected: Sari Baldauf, Pertti Ervi, Juho Malmberg and Risto
Siilasmaa. Anu Nissinen and Jussi Arovaara were elected as new members of the
Board. The Board elected in the first meeting Mr. Siilasmaa as the Chairman of
the Board. The Board nominated Ms. Baldauf as the chairman of the Executive
Committee and Mr. Siilasmaa the member of the Executive Committee. Mr. Ervi was
nominated as the chairman of the Audit Committee and Mr. Arovaara, Mr. Malmberg
ja Ms. Nissinen were nominated as members of the Audit Committee.
The auditor's fee will be paid against approved invoice. Ernst & Young Oy was
elected the Group's auditors. APA, Mr. Erkka Talvinko is acting as responsible
partner.
It was decided that the Board of Directors may pass a resolution to purchase a
maximum of 13.000.000 shares of the Company. The amount represents
approximately 8.3% of all the shares issued by the Company. The authorization
is valid for one year. The authorization covers the purchase of shares through
public trading on the NASDAQ OMX Helsinki Ltd. in accordance with its rules or
through a public tender offer made to the shareholders of the Company. The
consideration payable for the shares shall be based on the market price. In
purchasing of the Company's own shares derivative, share lending and other
contracts customary to the capital markets may be concluded pursuant to law and
applicable legal provisions. The authorization entitles the Board of Directors
to pass a resolution to purchase the shares by deviating from the shareholders'
pre-emptive rights (directed purchase) subject to the provisions of the
applicable law. The own shares will be purchased to be used for making
acquisitions or implementing other arrangements related to the Company's
business, to improve the Company's financial structure, to be used as part of
the incentive compensation plan or for the purpose of otherwise assigning or
cancelling the shares. The Board of Directors shall have the right to decide on
other matters related to the purchase of the Company's own shares.
The Annual General Meeting authorized the Board of Directors to decide on a
transfer of a maximum of 15.500.000 own shares of the Company either against
consideration or without payment. The authorization is valid for one year. The
Board of Directors is authorized to transfer the shares in deviation from the
shareholders' pre-emptive rights (directed transfer) subject to the provisions
of the applicable law. The shares may be transferred as a consideration to
finance acquisitions or in other arrangements and used as part of the
equity-based incentive plans of the Company as decided by the Board of
Directors. The Board of Directors shall also have the right to sell the shares
through public trading on the NASDAQ OMX Helsinki Ltd. The Board of Directors
shall have the right to decide on other matters related to a transfer of own
shares.
The Annual General Meeting also authorized the Board of Directors to decide on
the issuance of shares. The amount of shares to be issued based on this
authorization shall not exceed 40.000.000 shares. Board of Directors decides on
all the conditions of the issuance of shares. The authorization concerns both
the issuance of new shares as well as the transfer of treasury shares. The
issuance of shares may be carried out in deviation from the shareholders'
pre-emptive rights (directed issue). The authorization is valid for 18 months.
In connection with registering this authorization, the authorization by the AGM
2009 for a directed share issue was reversed. More information on the Annual
general meeting can be found on the company website under About Us, Investors,
General meetings.
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 longer term security market growth is expected to be around 9% with
antivirus growth at around 4% annually between 2008 and 2013 (Source: Gartner).
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
the Group since the year 2000. Based on the company's pioneering role in
offering Software as a Service, the Group 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, the Group 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.
The Group's first priority is to drive strong growth. The core growth driver
has been Security as a Service (SaaS) sales through the operators. In addition,
the Group offers Online Backup as a Service and other storage related services
that are expected to drive growth. The acquisition of Steek, enables the Group
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.
The Group 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, the Group is developing its
operations in other channels, such as electronic sales, to offer value-added
services to consumers and other segments.
The Group'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, the Group anticipates synergies across the value added
Services being developed and offered both for PC's and mobile phones.
The Group's target is to be the leader in providing security and other related
value added services to consumers through operators. The Group pursues
investments in new value added services for both PC and mobile users to augment
the existing security services. The Group continues to drive innovation also in
traditional IT security, enabling the secure use of internet.
The Group 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. The Group's longer term profitability level continues
to be driven extensively by revenue growth and through systematic cost
controls. The Group targets its investments in strategic growth businesses,
specifically the operator channel with security and storage as a service.
Short-term outlook
Markets for Security as a Service are expected to continue to grow. During the
second half of 2010 the Group seeks to exceed average market growth. For 2010
the antivirus security market growth is anticipated to be around 5% (source:
Gartner 2010).
The competitiveness of Security as a Services business continues to gain market
share to the benefit of both operators and end customers. The Group is
constantly winning new operator partners and increasing its penetration within
its current operator base. The management estimates the growth of security
subscribers to continue at a healthy level. The revenue impact from this
subscriber growth is expected to materialize in the second half of 2010.
The storage related business has received strong interest from the operators
globally. The storage related market entry has further strengthened F-Secure's
attractiveness as a long term strategic partner. The management expects storage
business to be a solid growth opportunity in the mid- and long term. However,
short term revenue contribution is limited and below prior expectations due to
new project delivery timetables.
The management estimates total revenue to grow with accelerating pace towards
year end. This growth is driven by the operator business which is anticipated
to accelerate growth as of Q3 and continue toward the year end. This is
supported by the growth of security subscribers and by the launch of new
operator partnerships.
For the second quarter of 2010 the management estimates total revenue to be at
the same level as in previous year. This low Q2 growth is driven by three
factors: the slowdown in the traditional license business, delayed storage
service project deliveries and one time contractual changes in operator
business in Q1. However, the operator business continues to grow in number of
subscribers and in revenues both annually and quarter over quarter.
F-Secure revenues for the second quarter of 2010 are estimated to be between 30
million and 32 million. Costs are estimated to be around 25 million. The
majority of cost increases are targeted to support the long term scalability of
the storage services business.
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 April 28, at 11
am Finnish time at Group headquarters, address: Tammasaarenkatu 7 (Ruoholahti),
Helsinki. A conference call for international investors and analysts is
arranged at 15.00 Finnish time (14.00 CET, 1.00 pm UK time). Instructions on
how to attend the conference call are available on the investor pages of the
Group's web site at
http://www.f-secure.com/en_EMEA/about-us/investor-relations/.
Financial calendar for 2010
During 2010 F-Secure will publish interim reports on July 29 (Q2) and on
October 27 (Q3). On the publication dates 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
will be provided at a later date on the Group's website.
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 Chge 2009
1-3 1-3 %
Revenues 31.4 30.6 3 125.1
Cost of revenues 2.0 2.6 -22 9.9
Gross margin 29.4 28.0 5 115.2
Other operating income 0.3 0.3 -7 1.1
Sales and marketing 14.4 13.5 7 56.9
Research and development 7.8 6.8 14 28.0
Administration 1.9 2.0 -3 7.5
Operating result 5.5 6.1 -8 24.0
Financial net -0.1 0.5 1.2
Result before taxes 5.5 6.5 25.2
Income taxes -1.4 -1.6 -6.5
Result for the period 4.0 4.9 18.7
Other comprehensive income:
Exchange diff. on translating
foreign operations 0.2 0.0 0.1
Available-for-sale fin.assets 0.0 0.2 0.1
Income tax rel. to components
of other comprehensive income 0.0 0.0 0.0
Total comprehensive
Income (owners) 4.2 5.1 18.9
Earnings per share, e 0.03 0.03 0.12
EPS, diluted, e 0.03 0.03 0.12
BALANCE SHEET
ASSETS 31/3/2010 31/3/2009 31/12/2009
Intangible assets 14.7 3.9 13.5
Tangible assets 5.4 3.5 4.6
Goodwill 19.4 0.0 19.4
Other financial assets 3.5 1.1 2.8
Non-current assets total 43.0 8.5 40.4
Inventories 0.4 0.1 0.4
Other receivables 30.2 25.0 31.3
Available-for-sale
financial assets 15.6 42.0 17.6
Cash and bank accounts 20.4 22.4 16.1
Current asset total 66.6 89.5 65.5
Total 109.6 98.0 105.9
SHAREHOLDERS' EQUITY
AND LIABILITIES 31/3/2010 31/3/2009 31/12/2009
Equity 42.0 34.9 48.8
Other non-current 2.4 0.0 2.5
Deferred revenues 7.1 7.1 6.7
Non-current liabilities total 9.5 7.2 9.2
Other current 28.0 25.3 19.0
Deferred revenues 30.1 30.7 28.9
Current liabilities total 58.1 55.9 47.9
Total 109.6 98.0 105.9
Cash flow statement 31/3/2010 31/3/2009 31/12/2009
Cash flow from operations 6.9 4.9 16.4
Cash flow from investments -3.0 -1.2 -31.8
Cash flow from financing
activities 1) -1.9 -0.5 -12.0
Change in cash 2.0 3.1 -27.4
Cash and bank at 1 Jan 33.9 61.0 60.9
Change in net fair value of
Available-for-sale 0.0 0.2 0.1
Cash and bank at end of period 35.9 64.3 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 4.0 0.0 0.2 4.2
Dividend -9.3 -9.3
Treasury shares -1.9 -1.9
Cost of
share based payments 0.1 0.1
Equity on
31.3.2010 1.6 0.2 3.1 -5.4 42.6 0.0 -0.1 41.9
.
Note 1) Cash flow from financing
The company has bought own shares by 1,893,831 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
3 m 3 m 12 m
Operating result,
% of revenues 17.7 19.8 19.2
ROI, % 51.3 53.1 45.0
ROE, % 35.4 38.6 32.2
Equity ratio, % 58.2 58.0 69.8
Debt-to-equity ratio, % -84.7 -184.2 -68.1
Earnings per share (EUR) 0.03 0.03 0.12
Earnings per share diluted 0.03 0.03 0.12
Shareholders' equity
per share, e 0.27 0.22 0.31
P/E ratio 24.2 16.2 22.8
Capitalized expenditures (Me) 2.9 1.2 37.2
Contingent liabilities 19.4 7.1 19.4
Personnel, average 832 723 770
Personnel, end of period 836 728 826
Segment information
The Group has only one segment; data security.
Quarterly development
1/09 2/09 3/09 4/09 1/10
Revenues 30.6 31.7 31.1 31.8 31.4
Cost of revenues 2.6 2.5 2.7 2.1 2.0
Gross margin 28.0 29.2 28.4 29.7 29.4
Other operating income 0.3 0.4 0.3 0.1 0.3
Sales and marketing 13.5 13.9 13.6 15.9 14.4
Research and
development 6.8 6.7 6.9 7.5 7.8
Administration 2.0 1.7 1.6 2.2 1.9
Operating result 6.1 7.2 6.6 4.1 5.5
Financial net 0.5 0.4 0.1 0.3 -0.1
Result before taxes 6.5 7.6 6.7 4.4 5.5
Geographical information
1-3/2010 1-3/2009
Revenue Revenue
Nordic countries 10.4 10.5
Rest of Europe 14.5 13.7
North America 2.8 3.0
Rest of the world 3.7 3.4
Total 31.4 30.6
3/2010 3/2009
Assets Assets
Nordic countries 58.8 86.9
Rest of Europe 37.5 1.4
North America 3.9 3.8
Rest of the world 6.4 5.1
Total 106.6 97.2
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