2011-02-18 11:00:00 CET
2011-02-18 11:00:05 CET
REGULATED INFORMATION
QPR Software - Financial Statement Release
QPR SOFTWARE´S NET SALES AND PROFIT IMPROVED FROM PREVIOUS YEAR
Helsinki, 2011-02-18 11:00 CET (GLOBE NEWSWIRE) -- QPR SOFTWARE PLC STOCK
EXCHANGE RELEASE, 18 FEBRUARY, 2011 12.00 AM
FINANCIAL RESULTS 2010
QPR SOFTWARE´S NET SALES AND PROFIT IMPROVED FROM PREVIOUS YEAR
Summary
Year 2010:
- Net sales EUR 6,937 thousand (2009: 6,618), growth 5%
- Net sales in Finland grew 3%.
- Estimated revenue to be recognized for current software subscription
agreements in the next twelve months is slightly over EUR 400 thousand
- International net sales grew 6%.
- Operating profit EUR 752 thousand (705), growth 7%
- Operating margin 10.8% of net sales (10.6)
- Cash flow from operations was EUR 860 thousand (953)
- Earnings per share EUR 0.04 (0.04).
- The Board of Directors proposes to the Shareholders' Meeting that the company
would pay dividend for the financial year 2010, EUR 0.03 per share (0.02).
October - December 2010:
- Net sales EUR 1,920 thousand (10-12/2009: 1,801), growth 7%
- Operating profit EUR 273 thousand (218), growth 25%
- Operating margin 14.2% of net sales (12.2)
- Earnings per share were EUR 0.02 (0.01)
Net sales and operating profit showed a positive development towards the end of
the year. Quarterly net sales were highest in the fourth quarter which led
operating margin to reach 14.2%.
In Finland net sales grew 3%. Sales grew faster than recognized revenue as the
company sold software in its home market mainly through subscription sales.
This year, revenue recognition from subscription agreements sold last year is
significant, which forms a solid foundation for software net sales growth in
Finland.
International net sales in 2010 grew 6%, which was due to positive development
within QPR´s Russian business operations. QPR´s Russian subsidiary started its
operations in early 2010, following acquisition of QPR´s resellers in Russia
and CIS countries in November 2009. Business in Russia and CIS countries in
2010 was profitable and showed a favorable development especially in the latter
half of the year.
The Board of Directors proposes to the Shareholders' Meeting that the company
would pay dividend for the financial year 2010, EUR 0.03 per share. The
dividend shall be paid to a shareholder that has been entered into the
company's shareholders' register on the record date of the dividend payment on
23 March, 2011. The Board of Directors proposes that the dividend shall be paid
on 1 April, 2011.
Outlook 2011:
QPR Software estimates the Group´s net sales in 2011 to grow faster than in the
previous year and operating profit to remain approximately 10% of net sales. In
Finland, growth is expected especially in software subscription net sales and
enterprise architecture services sales. In international markets, growth is
expected especially from Russia and CIS countries.
KEY FIGURES
(EUR 1,000) Oct-Dec Oct-Dec Change Jan- Jan- Change,
, , , Dec, Dec, %
2010 2009 % 2010 2009
Net sales 1,920 1,801 6.6 6,937 6,618 4.8
Operating profit 273 218 25.2 752 705 6.7
% of net sales 14.2 12.2 10.8 10.6
Profit before tax 307 191 60.7 707 668 5.8
Profit for the period 241 134 79.9 527 517 1.9
% of net sales 12.6 7.4 7.6 7.8
Earnings per share, EUR 0.04 0.04
EPS (diluted), EUR 0.04 0.04
Equity per share, EUR 0.22 0.21
Cash flow from operating 860 953
activities
Cash and cash equivalents 1,703 1,929
Net liabilities -910 -831
Gearing, % -33.8 -32.3
Equity ratio, % 42.6 42.5
Return on equity, % 20.0 19.5
Return on investment, % 21.0 21.4
REPORTING
This report complies with accounting and valuation principles of IFRS, but in
preparations not all the requirements of IAS 34-standard have been considered.
The accounting and valuation principles are the same as they were in 2009
financial statements. This report is not audited.
NET SALES
QPR Software Group´s net sales in 2010 were EUR 6,937 thousand (6,618),
representing a growth of 4.8% compared to the previous year.
In October-December, net sales rose 6.6% to EUR 1,920 thousand (1,801),
representing a growth of 6.6%.
Group net sales by geography, (EUR 1,000):
Domestic International Total
Oct-Dec, 2010 807 1,113 1,920
Share, % 42.0 58.0 100.0
Oct-Dec, 2009 680 1,121 1,801
Share, % 37.8 62.2 100.0
Change, % 18.7 -0.7 6.6
Jan-Dec, 2010 2,860 4,077 6,937
Share, % 41.2 58.8 100.0
Jan-Dec, 2009 2,783 3,835 6,618
Share, % 42.1 57.9 100.0
Change, % 2.8 6.3 4.8
Net sales in 2010 from international operations grew 6.3% to EUR 4,077 thousand
(3,835), thanks to net sales growth in Russian business.
In October - December, international net sales declined 0.7% to EUR 1,113
thousand (1,121). Net sales in Russia increased markedly, but international
channel net sales were lower in October-December than in the previous year.
There are still large variances in demand after the recession in various
markets.
2010 net sales in Finland grew 2.8% to EUR 2,860 thousand (2,783), thanks to
better professional services sales than in the previous year.
In October - December, net sales in Finland rose to EUR 807 thousand (680), and
grew 18.7%. Growth was due to improved software and professional service sales.
Group net sales divided into software licenses, maintenance services and
professional services as follows, (EUR 1,000):
Software Maintenance Professional Total
licenses services services
Oct-Dec, 2010 662 929 329 1,920
Share, % 34.5 48.3 17.2 100.0
Oct-Dec, 2009 742 816 243 1,801
Share, % 41.2 45.3 13.5 100.0
Change, % -10.8 13.8 35.4 6.6
Jan-Dec, 2010 2,101 3,622 1,214 6,937
Share, % 30.3 52.2 17.5 100.0
Jan-Dec, 2009 2,394 3,338 886 6,618
Share, % 36.2 50.4 13.4 100.0
Change, % -12.2 8.5 37.0 4.8
License net sales in 2010 decreased 12.2% and were EUR 2,101 thousand (2,394).
The decrease is due to QPR´s transition in Finland from license sales mainly to
software subscription sales. This had a negative impact on revenue recognition
from the new contracts, but on the other hand will provide a steady increase in
net sales in the future. License net sales in October - December decreased
10.8% and were EUR 662 thousand (742).
The largest markets for license sales were Finland, Russia, South Africa,
United Arab Emirates and Belgium.
Maintenance services net sales (including software subscription sales) grew
8.5% and were EUR 3,622 thousand (3,338). In October-December, maintenance
services net sales growth accelerated to 13.8% and was EUR 929 thousand (816).
The increase is attributable to growth in subscription net sales. The estimated
revenue to be recognized for current subscription agreements in the next twelve
months is slightly over EUR 400 thousand, assuming similar churn rate as in
maintenance service contracts.
Professional services net sales in 2010 increased 37.0% and were EUR 1,214
thousand (886). Professional services net sales in October - December grew
35.4% and were EUR 329 thousand (243). Net sales were positively impacted by
the initiation of direct sales in Russia and strong demand for service products
in Finland.
Group net sales by business segments, (EUR 1,000):
Software Sales Software Sales Service and Total
International Finland Solutions
Oct-Dec, 2010 1,111 538 271 1,920
Share, % 57.9 28.0 14.1 100.0
Oct-Dec, 2009 1,064 495 242 1,801
Share, % 59.1 27.5 13.4 100.0
Change, % 4.4 8.7 12.0 6.6
Jan-Dec, 2010 4,039 1,845 1,053 6,937
Share, % 58.2 26.6 15.2 100.0
Jan-Dec, 2009 3,728 2,042 848 6,618
Share, % 56.3 30.9 12.8 100.0
Change, % 8.3 -9.6 24.2 4.8
Software Sales Finland business segment´s net sales in 2010 decreased by 9.6%
and were EUR 1,845 thousand (2,042). The decrease was due to the transition to
software subscription sales, which had a negative impact on license net sales.
However, subscription agreements made during the financial year started to
increase recognized revenue towards the end of the year, which reversed net
sales trend in the latter half of the year. In October - December, Software
Sales Finland´s net sales rose to EUR 538 thousand (495) and grew 8.7%. QPR
delivered software, among others, to Barona Oy, Cargotec Corporation,
Etelä-Savo healthcare district, Kesko Corporation, Mediq Suomi Oy, Outotec Oyj,
Päijät-Häme social and healthcare district, Teollisuuden Voima Oyj, Vacon Plc,
National Audit Office of Finland and to the Council-IT unit of Ministry of
Finance.
Software Sales International business segment´s net sales in 2010 were EUR
4,039 thousand (3,728) and grew 8.3%. The growth is due to net sales increase
in Russia and CIS countries. In the review period, QPR signed a corporate
3-year contract with Vattenfall AB. Vattenfall chose QPR ProcessGuide for their
Group Business Process Modeling tool. The contract is estimated to have a
positive impact on QPR´s license and maintenance service sales for the next
three years. Software Sales International´s net sales in October - December
grew 4.4% to EUR 1,111 thousand (1,064). Net sales in Russia showed strong
growth but channel net sales decreased compared to the same period in the
previous year. In 2010, QPR and its resellers sold software to 60 countries.
Service and Solutions business segment´s net sales in 2010 were EUR 1,053 (848)
and increased 24.2%. The growth was mainly due to good demand for QPR´s service
products. Service products were sold mainly to new software customers, and the
company was clearly more successful in acquiring new customers than in the
previous years. Demand especially for process management framework was strong
during the year. In October - December, the segment´s net sales rose to EUR 271
thousand (242).
PROFIT DEVELOPMENT
Group operating profit in 2010 rose 6.7% and was EUR 752 thousand (705).
Operating profit includes a contribution of EUR 45 thousand from Finnish
Funding Agency for Technology and Innovation for the development of the new QPR
ProcessAnalyzer software. Depreciation grew EUR 66 thousand higher from the
previous year, which was mainly attributable to the acquisition of Russian and
CIS countries´ business operations in the end of 2009.
October - December operating profit rose 25.2% and was EUR 273 thousand (218)
due to increased revenue. Costs were higher than in the previous year, which
was attributable to outlays made in commencing direct sales in the Russian
market and to development of professional service business in Finland.
Group operating profit by business segments, (EUR 1,000):
Software Sales Software Sales Service and Not allocated Total
International Finland Solutions
Oct-Dec, 2010 252 154 -39 -94 273
Oct-Dec, 2009 249 143 -46 -128 218
Change, % 1.2 7.7 15.2 26.6 25.2
Jan-Oct, 2010 740 369 -12 -345 752
Jan-Oct, 2009 503 668 -67 -400 705
Change, % 47.1 -44.8 82.1 13.8 6.7
Software Sales Finland´s operating profit in 2010 decreased to EUR 369 thousand
(668). October - December operating profit, in turn, rose to EUR 154 thousand
(143). The decline in full year operating profit was due to transition to
software subscription sales, which had a negative impact on license net sales.
However, subscription agreements made during the year started to increase
markedly net sales towards the end of the year. This reversed the trend in
operating profit.
Software Sales International business segment´s operating profit in 2010
increased to EUR 740 thousand (503). Operating profit growth was due to higher
net sales and modest cost increases, despite the outlays in the new subsidiary
in Russia. In October - December, operating profit maintained on a good level
and was EUR 252 thousand (249).
Service and Solutions business segment´s operating profit in 2010 improved
year-on-year and was EUR -12 thousand (-67). Operating profit remained negative
despite strong growth in net sales (+24.2), mainly because personnel
recruitments were increased. Recruitments are increased, because service sales
growth plays an important part in the Company´s strategy. Operating profit in
October - December improved slightly year-on-year, but remained negative and
was EUR -39 thousand (-46).
Profit before taxes for the year was EUR 707 thousand (668). Net financial
costs were EUR 45 thousand (37). Profit after taxes was EUR 527 thousand (517)
and earnings per share were EUR 0.04 (0.04).
Profit before taxes in October - December was EUR 307 thousand (191). Net
financial items were EUR 41 thousand positive (-20) due to currency gains. Net
interest costs in October - December were EUR 7 thousand (8). Profit after
taxes was EUR 241 thousand (134) and earnings per share were EUR 0.02 (0.01).
FINANCE AND INVESTMENTS
The value of total assets at the end of December 2010 was EUR 7,250 thousand
(6,874). Increase is mostly attributable to the increase in trade receivables
which was due to changes implemented in the reseller billing practices and
payment terms during 2010.
Cash flow from operations in 2010 was EUR 860 thousand (953). Cash flow from
operations was negatively impacted by increase in operative working capital in
the financial period.
Cash and cash equivalents at the end of the review period were EUR 1,703
thousand (1,929). A dividend of EUR 244 thousand (368) and a distribution of
EUR 122 thousand (244) from the invested non-restricted equity fund were paid
during the reporting period.
The Group´s investments in the review period totaled to EUR 350 thousand
(1,026). Majority of investments are R&D investments. In the previous year, the
higher investments were attributable to the acquisitions of healthcare business
from Mawell Ltd and Russian QPR business from the Company's resellers in 2009.
The Group´s interest-bearing liabilities decreased and were EUR 793 thousand
(1,098) at the end of the reporting period. The gearing ratio was -33.8%
(-32.3). Return on capital employed was 21.0% (21.4).
Short-term liabilities include deferred revenue in total of EUR 918 thousand
(811). At the end of reporting period, quick ratio was 1.87 (2.05).
At the end of the reporting period, the Group equity stood at EUR 2,694
thousand (2,575), and equity to assets ratio was 42.6% (42.5). Return on equity
was 20.0% (19.5).
In the Group´s balance sheet as of 31 December, 2010, the remaining amount of
deferred tax is EUR 233 thousand (413).
PERSONNEL
At the end of the December 2010, the Group employed a total of 65 persons (57).
Out of them 11 were employed by QPR's Russian subsidiary, OOO QPR Software, in
Moscow (0), corresponding to 17% of the total personnel. Average number of
personnel in the review period was 63 (57).
PRODUCT AND SERVICES DEVELOPMENT
The amount of product development expenses in the review period were EUR 1,278
thousand (1,325), representing 18.4% of net sales (20.0%).
During the review period, product development expenses have been activated as
assets for a total amount of EUR 278 thousand (174). The depreciation period of
capitalized product development expenses is 4 years. The depreciation of
activated product development expense was EUR 190 thousand (165).
Product development employed 15 people at the end of the review period,
corresponding to 23 % of the total personnel.
During the review period, product development activities focused on the
development of a new version of the QPR product family planned to be released
in 2011.
Development of QPR ProcessAnalyzer, a software tool for Automated Business
Process Discovery, continued. The software executes automatically visual
process analysis from depository data. During the review period QPR agreed on
delivering process analysis service, based on the software to four Finnish
customers. First international re-selling agreement was signed to Germany in
January 2011. QPR ProcessAnalyzer product version 2 was launched in February
2011.
Professional Services offering to the domestic market was strengthened by
developing vertical applications from the QPR ScoreCard Rapid Implementation
service for public and health care sectors. The Company continued investments
in Process Management Framework launched in Autumn 2009.
Development of QPR Enterprise Architecture offering was started in the first
half of the year. QPR's Enterprise Architecture resources were strengthened by
centralizing all internal expertise in one function at end of the year and by
hiring new specialist resources outside of the company.
SHARES AND TRADING WITH COMPANY'S SHARES
Trading of shares Jan-Dec, 2010 Jan-Dec, 2009
Shares traded, pcs 881,585 716,800
Volume, EUR 805,808 627,522
% of shares 7.1 5.8
Shares and market values December 31, December 31,
2010 2009
Total number of shares, pcs 12,444,863 12,444,863
Treasury shares, pcs 322,212 258,000
Book counter value, EUR 0.11 0.11
Outstanding shares, pcs 12,122,651 12,186,863
Number of Shareholders 600 608
Closing price, EUR 0.91 0.95
Market value, EUR 11,031,612 11,577,520
Acquired treasury shares 64,212 97,850
Jan - Sept 2010, pcs
Book counter value of treasury shares, EUR 35,443 28,380
Total purchase value of treasury shares, EUR 274,701 209,103
Treasury shares % 2.6 2.1
The Company does not have active option
schemes.
OTHER EVENTS IN THE REPORTING PERIOD
Subsidiary OOO QPR Software started its operations in Russian Federation and
CIS countries as of 2 March, 2010. The company is a fully owned subsidiary of
QPR Software's subsidiary QPR CIS Oy. OOO QPR Software is domiciled and located
in Moscow and employed eleven persons at the end of December.
The Executive Management Team (EMT) of QPR Software Plc consisted of the
following persons in 1 January, 2010: Chief Executive Officer Jari Jaakkola
chairman); Vice President, Software Sales International Antti Ainasoja; Vice
President, Software Sales Finland Matti Erkheikki; Vice President, Services and
Solutions Maija Erkheikki; Vice President, Marketing and Business Development
Teemu Lehto; Chief Financial Officer Päivi Martti, and Vice President, Products
and Technology Tony Virtanen.
The distribution of EMT responsibilities were reorganized as of 18 February
2010 when EMT's secretary Jyrki Karasvirta received responsibility for
Company's marketing and communications as an EMT member and Teemu Lehto for
business development.
Matti Erkheikki received as of 1st July responsibility also for Services and
Solutions in addition to Software Sales Finland. He was appointed Vice
President, Business Operations Finland.
STRATEGY
The Board of Directors approved in its meeting on 22 October, 2010, a new
strategy and business targets for years 2010 - 2014 for QPR Software. The Group
targets profitable growth and pursues to double its 2009 net sales by year
2014.
QPR aims to accelerate its growth by expanding its offering to small and medium
sized organizations. For these organizations, QPR and its resellers offer
software subscriptions without any upfront investments, as well as service
products that support software implementations and management methods chosen by
the customers.
QPR expands its domestic service offering to large enterprises especially in
enterprise architecture consulting services. The Company believes that the
demand for these services will show strong increase in public and private
sector.
The Company delivers its resellers, in addition to software, service products
that support software sales. These service products have experienced strong
demand in Finland in the past year. The Company also strengthens its reseller
network for QPR ProcessGuide software.
QPR pursues strong growth in Russia, where it started its operations this year
after acquiring its Russian resellers´ business operations. Russian market is
in a strong growth phase, and offers significant opportunities to QPR´s
technology products and services.
The Company´s product development focuses on further development of existing
products and building innovations aimed at process development. The company
continues its close co-operation with Microsoft.
GOVERNANCE
The Annual Shareholders' Meeting held on 18 March, 2010 resolved that the Board
of Directors consists of five (5) ordinary members. The Annual Shareholders'
Meeting elected the following members to the Board of Directors: Aino-Maija
Gerdt (prev. Fagerlund), Jyrki Kontio, Antti Laine, Vesa-Pekka Leskinen and
Asko Piekkola.
In its first meeting immediately following the Annual Shareholders' Meeting,
the Board of Directors elected Vesa-Pekka Leskinen as Chairman of the Board.
The Board of Directors noted that both new members, Aino-Maija Gerdt and Antti
Laine, are independent from the Company and its main shareholders.
KPMG Oy Ab, Authorized Public Accountants, continued as QPR Software Plc's
Auditors.
The Annual Shareholders' Meeting decided to authorize the Board of Directors to
decide on an issue of new shares and acquisition of its own shares from the
market.
The conditions of all authorizations of the Board and other decisions made by
the Annual Shareholders' Meeting are available in their entirety on the stock
exchange release published by the Company on 18 March, 2010 and available on
the investors section of the company's web site, www.qpr.com.
SHORT-TERM RISKS AND UNCERTAINTIES
Internal control and risk management in QPR Software Plc aims to ensure that
the Company operates efficiently and effectively, distributes reliable
information, complies with regulations and operational principles, reaches its
strategic goals and ensures continuity of its business.
QPR has identified the following three groups of risks related to its
operations: risks related to business operations (country, customer, net sales
forecasting process, personnel, legal and financial), risks related to
information and products (QPR products, IPR, data security) and risks related
to financing (foreign currency, bad debt). Property, operational and liability
risks are covered by insurance. QPR started to monitor country, customer,
personnel and finance risks also in the Russian subsidiary OOO QPR Software as
of January 2011.
Financial risks include reasonable credit risk concerning individual business
partners, which is characteristic to any international business. QPR seeks to
limit this credit risk by continuous monitoring of standard payment terms,
receivables and credit limits. The management of QPR estimates that the
company´s credit loss risk is on a customary and reasonable level.
The Company has hedged 8.3% of its foreign currency (non-Euro) cash flow.
No significant changes have taken place in QPR's short-term risks and
uncertainties during the financial period. Risks related to QPR Software´s
business are further described in the Annual Report 2009, page 25 onwards
(www.qpr.com/annual-reports.html).
EVENTS AFTER THE REPORTING PERIOD
Sami Tähtinen (34) was appointed as Vice President, Products and Technology and
Member of the Executive Management Team at QPR Software Plc as of 24 January,
2011. He moves to QPR from CCC Corporation Ltd. Prior to this, Mr. Tähtinen
worked as Chief Technology Officer in Frends Technology from 2002 to 2009. Sami
Tähtinen holds a Master's degree in Engineering.
As of January 24, 2011 QPR Software´s Executive Management Teams consists of
Chief Executive Officer Jari Jaakkola (chairman); Vice President, Software
Sales International Antti Ainasoja; Vice President, Business Operations Finland
Matti Erkheikki; Vice President, Communications and Marketing Jyrki Karasvirta;
Vice President, Business Development Teemu Lehto; Chief Financial Officer Päivi
Martti; and Vice President, Products and Technology Sami Tähtinen.
QPR Software Plc's Management System received ISO9001:2008 quality
certification covering Company's all actions on 27 January, 2011. Scope of the
certificate is design, marketing and delivery of software, services and
solutions for Process Excellence. (Operations of the Russian Subsidiary, OOO
QPR Software, were not included in the audit.)
FUTURE OUTLOOK
Market forecasts published in the beginning of 2011 estimate that value of
global software sales will increase approximately 7.5% and global professional
services sales will increase 5-8% in 2011 compared to 2010.
QPR Software estimates the Group´s net sales in 2011 to grow faster than in the
previous year and operating profit to remain approximately 10% of net sales. In
Finland, growth is expected especially in software subscription net sales and
enterprise architecture services sales. In international markets, growth is
expected especially from Russia and CIS countries. Seasonality of large
software deals can affect significantly net sales and profit of one individual
quarter.
QPR SOFTWARE PLC'S FINANCIAL INFORMATION IN 2011
In 2011, QPR Software Plc will publish its financial information as follows:
- Annual Report 2010, in Finnish and English: Friday, February 25, 2011
- Interim Report 1-3/2011: Wednesday, April 27, 2011
- Interim Report 1-6/2011: Thursday, July 28, 2011
- Interim Report 1-9/2011: Thursday, October 20, 2011
The Annual General Meeting will be held on Friday, March 18, 2011
QPR SOFTWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0)40 5026 397
www.qpr.com
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Main Media
Neither this press release nor any copy of it may be taken, transmitted into or
distributed in the United States of America or its territories or possessions.
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) Oct Oct -Dec Jan - Jan - Dec,
-Dec 2009 Dec, 2009
2010 2010
Net sales 1,920 1,801 6,937 6,618
Other operating income 44 0 94 35
Material and services 67 88 227 451
Employee benefits expenses 1,120 991 4,094 3,524
Depreciation 101 131 532 466
Other operating expenses 403 373 1,426 1,508
Operating profit 273 218 752 705
Financial income and expenses 34 -28 -45 -37
Profit before tax 307 191 707 668
Income tax expense -66 -56 -180 -150
Profit for the period
241 134 527 517
Profit for the period attributable to:
Equity holders of the
parent company 240 134 527 517
Non-controlling interests 1 0 0 0
241 134 527 517
Earnings per share (diluted), EUR 0.02 0.01 0.04 0.04
Earnings per share, EUR 0.02 0.01 0.04 0.04
Consolidated Statement of comprehensive income
Profit for the period 241 134 527 517
Exchange differences on translating foreign -49 1 23 11
operations
Income tax relating to components of other -- -- -- --
comprehensive income
Total comprehensive income 192 135 550 528
Total comprehensive income attributable to:
Equity holders of the parent company 191 135 550 528
Non-controlling interests 1 0 0 0
192 135 550 528
CONSOLIDATED BALANCE SHEET
(EUR 1,000) December 31, Decemb
2010 er 31,
2009
Assets
Non-current assets
Tangible assets 85 145
Other intangible assets 1,400 1,720
Other investments 5 5
Other long-term receivables 43 0
Deferred tax assets 233 413
Total non-current assets 1,766 2,283
Current assets
Trade and other receivables 3,781 2,662
Cash and cash equivalents 1,703 1,929
Total current assets 5,484 4,591
Total assets 7,250 6,874
Equity and liabilities December 31, Decemb
2010 er 31,
2009
Equity
Share capital 1,359 1,359
Reserve fund 21 21
Invested non-restricted equity fund 5 127
Translation differences -70 -94
Treasure shares -275 -209
Retained earnings 1,653 1,371
Equity attributable to shareholders of the 2,693 2,575
parent company
Non-controlling interest 1 0
Total equity 2,694 2,575
Non-current liabilities
Interest-bearing liabilities 566 793
Non-Interest-bearing liabilities 0 460
Total non-current liabilities 566 1,253
Current liabilities
Accounts payables and other payables 3,763 2,741
Interest-bearing liabilities 227 305
Total current liabilities 3,990 3,046
Total liabilities 4,556 4,299
Total equity and liabilities 7,250 6,874
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) Jan-Dec, 2010 Jan-Dec, 2009
Cash flow from operating activities
Profit for the period 527 517
Adjustments for the profit
Depreciation 532 466
Non-cash transactions 24 11
Changes in working capital
Changes in trade and other receivables -908 -53
Changes in accounts payable and other 759 61
liabilities
Interest expense and other financial expenses -42 -31
Interest income and other financial income 8 20
Income taxes paid -40 -38
Net cash from operating activities 860 953
Cash flow from investing activities
Purchases of tangible assets -39 -38
Purchases of intangible assets -311 -932
Net cash used in investing activities -350 -970
Cash flow from financing activities
Proceeds from issuance of share capital 0 11
Proceeds from long-term loans 0 1,132
Repayments of long term loans -305 -217
Purchases of own shares -66 -84
Invested non-restricted equity fund -122 -244
distribution
Dividends paid -244 -368
Net cash used in financing activities -736 230
Net change in cash and cash equivalents -226 213
Cash and cash equivalents in the beginning of 1,929 1,716
period
Cash and cash equivalents in the end of period 1,703 1,929
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
1 JANUARY - 31 DECEMBER, 2010
(EUR 1,000) Jan 1, Shares Dividend Invested Purchas Comprehens Dec 31,
2010 issued s paid non-re-s e ive income 2010
tricted of own
equity shares
fund
distribu
tion
Share capital 1,359 1,359
Reserve fund 21 21
Translation -94 24 -70
differences
Treasure -209 -66 -275
shares
Invested 127 -122 5
non-restricte
d
equity fund
Retained 1,371 -244 526 1,653
earnings
Non-controlli 0 1 1
ng
interest
Total 2,575 0 -244 -122 -66 550 2,694
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
1 JANUARY - 31 DECEMBER, 2009
(EUR 1,000) Jan 1, Shares Dividend Invested Purchas Comprehens Dec 31,
2009 issued s paid non-re-s e ive income 2009
tricted of own
equity shares
fund
distribu
tion
Share capital 1,359 1,359
Reserve fund 21 21
Translation -105 11 -94
differences
Treasure -125 -84 -209
shares
Invested 360 11 -244 127
non-restricte
d equity fund
Retained 1,222 -368 517 1,371
earnings
Total 2,732 11 -368 -244 -84 528 2,575
APPENDIX:
ACCOUNTING PRINCIPLES
This interim report complies with accounting and valuation principles of IFRS,
but in preparations not all the requirements of IAS 34-standard have been
considered. Apart from the changes in accounting principles stated below, the
accounting principles applied in the interim report are the same as in the
financial statements at December 31, 2009.
Changes in the accounting principles
The Group adopted the following standards, amendments to standard
interpretations from 1 January, 2010 onwards:
-- Revised IFRS 3 Business Combinations
-- Revised IAS 27 Consolidated and Separate Financial Statements.
Following newly adopted standards and interpretations have not had any effect
on interim financial statements:
-- Revised IFRS 2 Share-based Payment
-- Revised IAS 39 Financial Instruments: recognition and measurement
-- IFRIC 17 Distributions of Non-cash Assets to Owners
-- IFRIC 18 Transfer of Assets from customers
QPR Software´s business consists of software license sales, software
subscription sales, software maintenance sales and professional services sales.
Software subscription net sales are reported as part of maintenance services
net sales.
In 2010, QPR Software Plc had three business segments: Software Sales
International (software license and maintenance sales outside of Finland),
Software Sales Finland (software license and maintenance sales in Finland) and
Service and Solutions (global professional service sales).
The geographical segments used by the Company are Domestic (Finland) and
International markets.
The Company introduced hedging for its foreign currency cash flows in June
2010. The company does not apply hedge accounting, but the changes in fair
value are recognized in income.
In 2011, the Company started to report two business segments, which are
Business Operations Finland (software license, maintenance and professional
services sales in Finland) and International Business Operations (software
license, maintenance and professional services sales outside of Finland).
GROUP COMMITMENTS AND CONTINGENT LIABILITIES
(EUR 1,000) Dec 31, 2010 Dec 31, 2009
Business mortgage 1,337 1,337
Current lease liabilities
Liabilities maturing during one year 235 222
Liabilities maturing 2-5 years 53 261
Total 289 483
Total commitments and contingent liabilities 1,626 1,820
Currency Hedging (EUR 1,000) Dec 31, 2010 Dec 31, 2009
Nominal value 260 0
Current value -2 0
GROUP INTANGIBLE AND TANGIBLE ASSETS
Change in intangible assets
(EUR 1,000) Dec 31, 2010 Dec 31, 2009
Acquisition cost Jan 1 3,494 2,506
Increase 311 988
Change in tangible assets
(EUR 1 000) Dec 31, 2010 Dec 31, 2009
Acquisition cost Jan 1 983 945
Increase 38 38
CHANGE IN GROUP INTEREST BEARING LOANS
(EUR 1,000) Dec 31, 2010 Dec 31, 2009
Interest bearing loans Jan 1 1,098 182
Withdrawals 0 1,132
Repayments -305 -217
Interest bearing loans 793 1,098
30 September /31 December
INCOME STATEMENT INFORMATION BY SEGMENT
(EUR Oct-Dec, 2010 Oct-Dec, 2009 Jan-Dec Jan-Dec 2009
1,000) , 2010
Net Sales
Software 1,111 1,064 4,039 3,728
Sales
Internati
onal
Software 538 495 1,845 2,042
Sales
Finland
Service 271 242 1,053 848 &
Solutions
Not 0 0 0 0
allocated
Total Net 1,920 1,801 6,937 6,618
Sales
Operating
Profit
Software 252 249 740 503
Sales
Internati
onal
Software 154 143 369 668
Sales
Finland
Service -39 -46 -12 -67 &
Solutions
Not -94 -128 -345 -400
allocated
Total 273 218 752 705
Operating
Profit
Financial 34 -28 -45 -37
income and
expenses
Income tax -66 -56 -180 -150
expense
Profit for 241 134 527 517
the period
Other
information
Depreciation
Software 36 64 267 239
Sales
Internati
onal
Software 56 56 228 185
Sales
Finland
Service 9 11 37 42 &
Solutions
Not 0 0 0 0
allocated
Total 101 131 532 466
depreciation
CONSOLIDATED INCOME STATEMENT PER QUARTER
(EUR 1,000) Jan- Jan- April- April- July- July- Oct- Oct-
March, March June, June, Sept, Sept, Dec, Dec,
2010 , 2010 2009 2010 2009 2010 2009
2009
Net sales 1,671 1,628 1,773 1,688 1,574 1,501 1,920 1,801
Other operating 34 7 3 25 13 3 44 0
income
Material and 47 112 63 117 50 134 67 88
services
Employee 1,009 895 1,040 890 925 748 1,120 991
benefits
expenses
Depreciation 129 114 151 95 151 126 101 131
Other operating 375 371 351 427 297 337 403 373
expenses
Operating 145 143 171 184 164 159 273 218
profit
Financial -25 6 -45 -5 -11 -10 34 -28
income and
expenses
Profit before 120 149 126 179 153 149 307 191
tax
Income tax -25 -27 -33 -34 -55 -33 -66 -56
expenses
Profit for the 95 122 93 145 98 116 241 134
period
GROUP KEY FIGURES
EUR (1,000) Jan-Dec, 2010 Jan-Dec, 2009
Net sales 6,937 6,618
Net sales growth, % 4.8 -11.9
Operating profit 752 705
% of net sales 10.8 10.6
Profit or loss before tax 707 668
% of net sales 10.2 10.1
Profit for the period 527 517
% of net sales 7.6 7.8
Return on equity,% 20.0 19.5
Return on investment,% 21.0 21.4
Interest bearing liabilities 793 1,098
Cash and cash equivalents 1,703 1,929
Net liabilities -910 -831
Equity 2,694 2,575
Gearing,% -33.8 -32.3
Equity ratio,% 42.6 42.5
Total balance sheet 7,250 6,874
Investments in non-current assets 350 1,026
% of net sales 5.0 15.5
Research and development expenses 1,278 1,325
% of net sales 18.4 20.0
Average number of personnel 63 57
Personnel at the beginning of period 57 55
Personnel at the end of period 65 57
Earnings per share,€ 0.04 0.04
Earnings per share (diluted), € 0.04 0.04
Equity per share, € 0.22 0.21
CALCULATION OF KEY INDICATORS:
Return on equity (ROE), % (counted on yearly level):
Profit for the period x 100
_____________________________________________
Shareholders' equity + non-controlling interest (average)
Return on capital employed (ROCE), % (counted on yearly level):
Profit before taxes + interest and other financial expenses x 100
____________________________________________________
Balance sheet total - non-interest bearing liabilities (average)
Equity ratio, %:
Shareholders' equity x 100
_______________________________
Balance sheet total - deferred revenue
Gearing, %:
Interest bearing liabilities - cash and cash equivalents x 100
_________________________________________________
Shareholders' equity
Earnings per share, Euro:
Profit for the period attributable to parent company shareholders
___________________________________________________
Adjusted number of shares over the financial year (average)
Equity per share, Euro:
Profit for the period attributable to parent company shareholders
_____________________________________________________
Adjusted number of shares at the end of the financial period
Dividend per share, Euro:
Total dividend paid
________________________________________________
Adjusted number of shares at the end of the financial period
Market value of share capital:
(Number of shares - own shares) x share price at the end of the financial period
Turnover of shares, % of share capital:
Turnover (number of shares) x 100
_____________________________
Number of shares issued (average)
Quick ratio:
Current assets - inventories
_____________________________
Current liabilities - deferred revenue
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