2017-05-04 08:01:01 CEST
2017-05-04 08:01:01 CEST
REGULATED INFORMATION
F-Secure Oyj - Interim report (Q1 and Q3)
F-Secure Interim Report 1 January – 31 March 2017
F-Secure Corporation, Interim Report, 4 May 2017 at 09.01 EEST
A STRONG QUARTER FOR BOTH CORPORATE AND CONSUMER SECURITY
- Investments continue as planned
This is a summary of F-Secure’s Q1/2017 Interim Report. The full Interim Report
is a PDF file attachment to this stock exchange release and is also available
on the company's website at the address: www.f-secure.com/ir.
Highlights of January–March (Q1)
-- Revenue increased by 9% year-on-year to EUR 41.0 million (37.8m)
-- Revenue from corporate security increased by 14% to EUR 16.7 million
(14.6m), representing 41% (39%) of all revenue
-- Revenue from consumer security increased by 5% to EUR 24.3 million (23.2m),
representing 59% (61%) of all revenue
-- EBIT was EUR 1.6 million, representing 4% of revenue (3.2m, 8%)
-- Earnings per share (EPS) was EUR 0.01 (EUR 0.01, EUR 0.02 including
discontinued operations)
-- Deferred revenue increased by 13% to EUR 56.3 million (49.7m) at the end of
the quarter, reflecting strong order intake in corporate security
-- Cash flow from operations was EUR 5.5 million (-1.1m)
-- F-Secure has today concluded cooperation negotiations announced on 20 March
2017
Figures in this Interim Report are unaudited. All income statement figures
refer to continuing operations, and figures in brackets refer to the
corresponding period in the previous year, unless otherwise stated. F-Secure’s
personal cloud storage business (younited) was sold to Synchronoss Technologies
in February 2015 and is reported as discontinued operations 2015–2016.
Outlook for 2017
The Company’s outlook for 2017 is unchanged:
-- Revenue is anticipated to grow from the previous year’s level (2016: EUR
158.3 million )
-- Operating profit is anticipated to be EUR 8–12 million (2016: EUR 19.2
million); profitability in the first quarter of 2017 is foreseen to be
lowest during the year following typical seasonality, and clearly better
towards the year-end
CEO SAMU KONTTINEN
A strong first quarter confirmed the progress F-Secure has made with both
corporate and consumer security. Our business continued to develop as planned,
with all businesses growing in the first quarter, outpacing the market. Revenue
from corporate security showed clear double-digit growth and our consumer
security business also grew well. F-Secure’s total revenue increased by 9%
compared to the previous year, amounting to EUR 41.0 million. Revenue from
corporate security increased by 14%, and revenue from consumer security by 5%.
Our corporate security offering – both products and services in cyber security
– clearly resonates well with our customers. This combined with our partner-led
sales model allows us to win market share. Our portfolio has more depth than
ever. It provides comprehensive cyber defense coverage to our customers,
allowing us to target a broader market than in the past. I am particularly
pleased with the fact that all of our corporate product areas – endpoint
protection, vulnerability management and managed detection services – performed
very well during the quarter. Cyber security services showed strong
double-digit growth, and we continued to win significant deals with large
international enterprises. The services business is clearly supporting our
product sales as well as product development.
In consumer security, we also continued to outpace the market in growth, with
both the operator channel business and our direct sales growing. We see a
trend of increasing demand for VPN and privacy solutions, which has resulted in
strong demand for F-Secure Freedome. I look forward to the upcoming launch of
our first-ever hardware product, F-Secure Sense, which will protect all the
internet-connected devices in people’s homes. As everything is increasingly
connected, the potential attack surface is expanding. The emerging home
security market is clearly an interesting business opportunity for F-Secure.
Our total operating profit was EUR 1.6 million and 4% of revenue, which was in
accordance with our plans. The decline in profitability reflects increasing
expenditures in sales, marketing and product development, as well as costs
during the quarter related to restructuring. We have now finalized the employee
co-operation negotiations to re-balance our investment mix to better address
our strategic growth driving investment areas. Overall, we continue to invest
significantly in growth.
Key figures
Key figures are for continuing operations unless otherwise stated.
EUR m 1–3/2017 1–3/2016 Change 1–12/201
6
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Revenue 41.0 37.8 9 % 158.3
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Operating profit (EBIT) 1.6 3.2 -50 % 19.2
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% of revenue 4 % 8 % 12 %
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Profit before taxes 1.5 2.9 -48 % 20.8
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Earnings per share, continuing operations 0.01 0.01 0.10
(EUR) 1)
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Earnings per share (EUR) 1) 2) 0.01 0.02 0.10
--------------------------------------------------------------------------------
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Deferred revenue 56.3 49.7 13 % 54.3
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Cash and available-for-sale financial 96.4 93.1 4 % 92.7
assets
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ROI, % 2) 8.8 % 18.6 % 28.6 %
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Equity ratio, % 2) 68.8 % 68.9 % 66.7 %
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Gearing, % 2) -124.5 % -116.2 % -122.1 %
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Personnel, end of period 2) 1,055 950 11 % 1,026
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1) Based on the weighted average number of outstanding shares during the period
156,258,200 (1–3/2017)
2) Includes both continuing and discontinued operations
News conference and webcast
A news conference for analysts and media will be held (in Finnish) at the
Company's headquarters (address: Tammasaarenkatu 7, 00180 Helsinki) today at
11.00–12.00 a.m. (EEST).
A webcast for international investors and analysts will be held (in English) at
14.00 p.m. (EEST ).
-- Link to the webcast: https://meet.f-secure.com/tapio.pesola/CW0MMZ4L
-- To listen via phone, please dial in to +358 9 751 10 100. The conference ID
is 3095794.
The material will be available at the company's website before the call begins:
www.f-secure.com/investors.
F-Secure Corporation
Additional information
This is a summary of F-Secure’s Q1/2017 Interim Report. The full Interim Report
is a PDF file attachment to this stock exchange release and is also available
on the company's website at the address: www.f-secure.com/ir.
Contact information
Samu Konttinen, CEO, F-Secure
+358 9 2520 0700
Eriikka Söderström, CFO, F-Secure
+358 40 669 1844
Tapio Pesola, IR Manager, F-Secure
+358 44 373 4693
Financial calendar
F-Secure Corporation will publish its interim reports during 2017 as follows:
-- Q2/2017: 10 August 2017
-- Q3/2017: 9 November 2017
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