2013-04-17 07:00:11 CEST
2013-04-17 07:01:15 CEST
REGULATED INFORMATION
Comptel - Interim report (Q1 and Q3)
Interim Report of Comptel Corporation 1 January - 31 March 2013
Stock exchange release 17 April 2013 at 8.00 am
Net sales grew 6.2 per cent from the previous year. Profitability improved
significantly and operating result was positive. Order backlog growth was
strong.
-- Net sales EUR 21.2 million (January - March 2012: 19.9), growth 6.2%
-- Operating result EUR 1.0 million (-11.9)
-- Earnings per share EUR -0.01 (-0.10)
-- Order backlog EUR 50.1 million (41.1), growth 21.8%
As stated earlier, Comptel's net sales are estimated to grow from the previous
year in 2013. Operating profit is estimated to increase to 5 - 10 per cent of
net sales. 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:
”In the first quarter Comptel's business developed as per our expectations. Net
sales grew and we improved our profitability significantly. We closed a major
license deal in Argentina. Market situation in Europe remained challenging.
We updated our strategy and objectives for the next three years during the
beginning of the year. The strategy for 2013 - 2015 focuses on accelerating the
execution of the Event-Analysis-Action strategic framework launched in 2011.
This includes scaling up the sales with partners. Together these focus areas
constitute the basis for Comptel's growth strategy. According to our strategy
we continued investments in R&D, especially focusing in fulfillment solutions
and advanced analytics. We centralised sales, delivery and R&D functions
relating to analytics to enable us to react faster to customer needs in the
field of analytics solutions.
The outcome of the costs savings program initiated last year was reflected in
our first quarter operating result. Improving profitability is our key target
for 2013 and we proceeded in achieving this objective as planned.
During the first quarter we secured 6 significant orders, valued over EUR
500,000.”
Business Review of the First Quarter 2013
Comptel's net sales grew in the first quarter by 6.2 per cent from the previous
year, to EUR 21.2 million (19.9). Especially license sales increased the
Group's net sales.
Operating result for the period was EUR 1.0 million (-11.9), which corresponds
to 4.9 per cent of net sales (-59.7). The operating result for the first
quarter of 2012 includes an impairment loss of EUR 10.2 million. The costs
savings measures initiated last year lowered the cost levels of the review
period compared to the previous year.
Result before taxes was EUR 0.1 million (-12.4) and net result was EUR -0.6
million (-10.3). Earnings per share for the period under review were EUR -0.01
(-0.10).
Tax expense for the period was EUR 0.7 million (-2.1), of which EUR 0.4 million
were withholding taxes. The cumulative amount of outstanding, non-credited
double withholding taxes payments since 2004 is EUR 9.7 million.
The Group's order backlog grew from the previous year and was EUR 50.1 million
(41.1) at the end of the period. Maintenance agreements represent EUR 26.7
million (24.3) and other order backlog EUR 23.4 million (16.8) of the total.
Business areas
Net sales, 1-3 2013 1-3 2012 Change, 2012
EUR million %
----------------------------------------------------------
Europe East 3.9 3.9 0.4 16.3
----------------------------------------------------------
Europe West 4.5 5.0 -10.5 21.0
----------------------------------------------------------
Asia Pacific 5.7 4.5 25.2 21.7
----------------------------------------------------------
Middle East and Africa 3.5 3.8 -8.2 14.5
----------------------------------------------------------
Americas 3.6 2.7 34.4 8.9
----------------------------------------------------------
Total 21.2 19.9 6.2 82.4
----------------------------------------------------------
Operating result,
EUR million
----------------------------------------------------------
Europe East 1.8 1.3 31.3 6.3
----------------------------------------------------------
Europe West 1.4 2.2 -36.9 9.7
----------------------------------------------------------
Asia Pacific 2.8 2.0 40.7 9.5
----------------------------------------------------------
Middle East and Africa 1.1 1.1 -0.6 3.0
----------------------------------------------------------
Americas 2.3 1.5 56.9 3.8
----------------------------------------------------------
Unallocated costs -8.3 -20.0 -58.5 -45.8
----------------------------------------------------------
Total 1.0 -11.9 108.8 -13.5
----------------------------------------------------------
Operating result,
% of net sales
----------------------------------------------------------
Europe East 45.5 34.8 - 38.6
----------------------------------------------------------
Europe West 31.0 44.0 - 46.3
----------------------------------------------------------
Asia Pacific 49.0 43.6 - 43.9
----------------------------------------------------------
Middle East and Africa 30.5 28.2 - 20.4
----------------------------------------------------------
Americas 63.9 54.8 - 42.3
----------------------------------------------------------
Total 4.9 -59.7 - -16.4
----------------------------------------------------------
Net sales grew significantly in Asia Pacific and Americas and declined in
Europe West and Middle East and Africa. Proportional profitability improved in
all other business areas except for Europe West.
In January - March, Comptel received 6 significant orders (Q1 2012: 3): 3
policy control & charging, 2 fulfillment and 1 managed services order. As
significant orders Comptel reports sold projects and licenses with a value of
EUR 500,000 at the minimum.
Net sales breakdown, 1-3 2013 1-3 2012 Change, % 2012
EUR million
-----------------------------------------------------------
Licenses 4.7 3.0 57.0 16.6
-----------------------------------------------------------
Services 7.5 8.8 -14.8 33.2
-----------------------------------------------------------
Maintenance agreements 8.9 8.1 10.3 32.6
-----------------------------------------------------------
Total 21.2 19.9 6.2 82.4
-----------------------------------------------------------
License sales grew from the previous year which improved profitability.
Maintenance revenue consists of maintenance and support of the delivered
systems.
Net sales by sales channel, 1-3 2013 1-3 2012 Change, % 2012
EUR million
----------------------------------------------------------------
Direct sales 15.8 15.8 0.0 62.1
----------------------------------------------------------------
Partner sales 5.4 4.1 30.1 20.3
----------------------------------------------------------------
Total 21.2 19.9 6.2 82.4
----------------------------------------------------------------
The share of partner sales increased from the previous year according to our
strategy.
Financial Position
EUR million 31 March 31 Dec Change 31 March Change
2013 2012 , 2012 ,
% %
--------------------------------------------------------------------------------
Statement of financial 65.9 68.5 -3.8 62.8 4.9
position total
--------------------------------------------------------------------------------
Liquid assets 4.5 4.8 -6.3 6.8 -33.8
--------------------------------------------------------------------------------
Trade receivables, gross 25.8 24.1 7.1 25.8 0.1
--------------------------------------------------------------------------------
Bad debt provision -1.2 -1.3 -7.4 -0.8 40.5
--------------------------------------------------------------------------------
Trade receivables, net 24.6 22.8 7.9 24.9 -1.3
--------------------------------------------------------------------------------
Accrued income 12.3 12.6 -2.2 12.7 -2.9
--------------------------------------------------------------------------------
Deferred income related to 3.0 2.8 6.3 1.5 104.0
partial debiting
--------------------------------------------------------------------------------
Interest-bearing debt 10.0 8.4 19.8 3.0 234.4
--------------------------------------------------------------------------------
Equity ratio, per cent 49.8 46.8 6.5 56.9 -12.6
--------------------------------------------------------------------------------
Statement of financial position total was EUR 65.9 million. Operating cash flow
was EUR 0.0 million (-0.7) in the first quarter.
The trade receivables were EUR 24.6 million (24.9) at the end of the period.
The accrued income was EUR 12.3 million (12.7). The deferred income related to
partial debiting was EUR 3.0 million (1.5).
Comptel Corporation withdrew a loan of EUR 1.0 million during the review
period. Comptel has a loan facility arrangement amounting to EUR 20 million. It
includes a term-loan of EUR 7.0 million and a revolving credit facility of EUR
13.0 million. The term-loan of EUR 7.0 million was withdrawn in full and EUR
2.0 million had been utilised from the revolving credit facility. The loan
facilities are valid until January 2016. The equity ratio was 49.8 per cent
(56.9) and the gearing ratio was 20.9 per cent (-13.1).
Research and Development (R&D)
EUR million 1-3 2013 1-3 2012 Change, 2012
%
--------------------------------------------------------------------------------
Direct R&D expenditure 4.2 5.2 -19.2 18.6
--------------------------------------------------------------------------------
Capitalisation of R&D expenditure -1.1 -1.5 -26.6 -6.2
according to
IAS 38
--------------------------------------------------------------------------------
R&D depreciation and impairment charges 0.9 0.6 36.6 2.8
--------------------------------------------------------------------------------
R&D expenditure, net 4.0 4.3 -8.3 15.3
--------------------------------------------------------------------------------
Direct R&D expenditure, % of net sales 19.8 26.0 - 22.5
--------------------------------------------------------------------------------
Direct R&D expenditure represented 19.8 per cent (26.0) of net sales.
Comptel's R&D expenditure was mainly targeted at the service fulfillment
automation of telecom operators and to the management and real-time analysis of
rapidly increasing data traffic. Comptel seeks global market leadership in
these areas where key business challenges of operators and service providers
will be solved. In addition, the company is developing an integrated software
platform which will enable a cost-efficient and solution-based R&D.
In 2013, the company focuses on developing its offering within the Fulfillment
and advanced analytics product areas. In terms of advanced analytics,
integrating the acquired Xtract advanced analytics into the Comptel software
platform is a priority. With a combined offering including real-time analytics,
Comptel can help operators to improve customer loyalty as well as enable
individually targeted marketing. One major software release was launched in
these respective product areas during the review period.
Investments
EUR million 1-3 2013 1-3 2012 Change 2012
, %
--------------------------------------------------------------------------------
Gross investments in property, plant and 0.2 3.2 -95.2 4.5
equipment and intangible assets
--------------------------------------------------------------------------------
The investments comprised of devices, software and furnishings. The investments
were funded through cash flow from operations. The number for 2012 includes the
acquisition of Xtract Corporation.
Personnel 31 March 31 March Change, 31 Dec
2013 2012 % 2012
--------------------------------------------------------------------------------
Number of employees at the end of 686 697 -1.6 679
period
--------------------------------------------------------------------------------
1-3 2013 1-3 2012 Change, 1-12 2012
%
--------------------------------------------------------------------------------
Average number of personnel during the 683 678 0.7 700
period
--------------------------------------------------------------------------------
The number of employees remained at the previous year's level. In the first
quarter, the personnel expenses were 53.9 per cent of net sales (52.9).
At the end of the period, 30.6 per cent (33.0) of the personnel were located in
Finland, 26.5 per cent (23.7) in Malaysia, 10.6 per cent (9.6) in Bulgaria, 7.9
per cent (6.7) in the United Arab Emirates, 6.7 per cent (7.3) in the United
Kingdom, 3.8 per cent (3.3) in India, 2.8 per cent (5.2) in Norway, and 11.1
per cent (11.2) in other countries where Comptel operates.
Comptel share
The closing share price of the period was EUR 0.40 (0.57). Comptel's market
value at the end of the period was EUR 42.8 million (60.9).
Comptel share 1-3 2013 1-3 2012 Change, % 2012
---------------------------------------------------------------
Shares traded, million 4.3 10.9 -60.6 26.7
---------------------------------------------------------------
Shares traded, EUR million 1.7 6.5 -73.9 13.4
---------------------------------------------------------------
Highest price, EUR 0.45 0.63 -28.6 0.63
---------------------------------------------------------------
Lowest price, EUR 0.38 0.49 -22.5 0.37
---------------------------------------------------------------
Of Comptel's outstanding shares, 7.0 per cent (5.6) were nominee registered or
held by foreign shareholders at the end of the period.
The company held 161,219 of its own shares at the end of the period, which is
0.15 per cent of the total number of its shares. The total counter-book value
of the shares held by the company was EUR 3,224.
No share options were distributed during the review period.
Corporate Governance
The Annual General Meeting (AGM), held on 20 March 2013, re-elected Mr Pertti
Ervi, Mr Hannu Vaajoensuu, Mr Petteri Walldén, Ms Eriikka Söderström and Mr
Antti Vasara as members of the Board of Directors. In its meeting held after
the AGM, the Board of Directors elected Mr Pertti Ervi as chairman and Mr Hannu
Vaajoensuu as vice chairman. The Board decided not to set up committees.
The AGM appointed Ernst & Young Oy as the company's auditor. Mr Heikki Ilkka is
acting as the principal auditor.
The AGM resolved that no dividend payment will be made for 2012.
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 2014. However, the authorisation to
implement the company's share-based incentive programs is valid until 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 20 March 2013.
Events after the Reporting Period
There were no significant events after the reporting period.
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 to 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 system and
the value of a single project may be several million euros. Therefore, the risk
or credit risk associated with a single project or an individual customer may
be significant. Furthermore, some of Comptel's customers operate in countries
that are or have been war zone 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.
The risks and uncertainties of Comptel are described more in detail in the
company's financial statements and the Board of Directors' report for 2012.
Outlook
As stated earlier, Comptel's net sales are estimated to grow from the previous
year in 2013. Operating profit is estimated to increase to 5 - 10 per cent of
net sales.
Characteristically a significant part of Comptel's operating profit and net
sales is generated in the second half of the year.
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 2012 except for the
application of new or amended standards and interpretations as set forth in
note 1.
Comptel has corrected retrospectively an error discovered in the figures for
the reporting period Q1/2012. The nature of the error is described in note 12.
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
2013 2012*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 21,171 19,926
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other operating income 1 1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Materials and services -1,114 -1,622
--------------------------------------------------------------------------------
Employee benefits -11,402 -10,541
--------------------------------------------------------------------------------
Depreciation, amortisation and impairment charges -1,255 -11,128
--------------------------------------------------------------------------------
Other operating expenses -6,358 -8,538
--------------------------------------------------------------------------------
-20,130 -31,829
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss 1,042 -11,901
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 203 437
--------------------------------------------------------------------------------
Financial expenses -1,155 -914
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss before income taxes 90 -12,379
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -703 2,094
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period -613 -10,285
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income to be reclassified to profit or
loss in subsequent periods
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Translation differences -100 3
--------------------------------------------------------------------------------
Cash flow hedges - 742
--------------------------------------------------------------------------------
Income tax relating to components of other comprehensive - -182
income
--------------------------------------------------------------------------------
Total other comprehensive income -100 563
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income for the period -713 -9,721
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company -613 -10,285
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company -713 -9,721
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders of the parent company:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR -0.01 -0.10
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR -0.01 -0.10
--------------------------------------------------------------------------------
*Q1/2012 error has been corrected.
Consolidated Statement of Financial Position (EUR 31 Mar 2013 31 Dec 2012
1,000)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Assets
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Goodwill 2,646 2,646
--------------------------------------------------------------------------------
Other intangible assets 13,393 13,350
--------------------------------------------------------------------------------
Tangible assets 2,110 1,518
--------------------------------------------------------------------------------
Investments in associates 1,076 1,076
--------------------------------------------------------------------------------
Available-for sale financial assets 87 87
--------------------------------------------------------------------------------
Deferred tax assets 4,128 3,804
--------------------------------------------------------------------------------
Other non-current receivables 498 493
--------------------------------------------------------------------------------
23,938 22,974
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Trade and other current receivables 37,420 40,660
--------------------------------------------------------------------------------
Cash and cash equivalents 4,515 4,817
--------------------------------------------------------------------------------
41,935 45,476
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 65,873 68,451
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity and liabilities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity attributable to equity holders of the parent
company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Share capital 2,141 2,141
--------------------------------------------------------------------------------
Fund of invested non-restricted equity 243 243
--------------------------------------------------------------------------------
Translation differences -736 -636
--------------------------------------------------------------------------------
Retained earnings 24,675 25,208
--------------------------------------------------------------------------------
Total equity 26,323 26,956
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------------------------
Deferred tax liabilities 3,306 3,302
--------------------------------------------------------------------------------
Provisions 563 787
--------------------------------------------------------------------------------
Non-current financial liabilities 5,750 5,275
--------------------------------------------------------------------------------
9,619 9,364
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current liabilities
--------------------------------------------------------------------------------
Provisions 1,443 1,511
--------------------------------------------------------------------------------
Current financial liabilities 4,261 3,082
--------------------------------------------------------------------------------
Trade and other current liabilities 24,227 27,537
--------------------------------------------------------------------------------
29,931 32,130
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total liabilities 39,550 41,494
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity and liabilities 65,873 68,451
--------------------------------------------------------------------------------
Consolidated Statement of Cash Flows 1 Jan - 31 1 Jan - 31
(EUR 1,000) Mar 2013 Mar 2012*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from operating activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period -613 -10,285
--------------------------------------------------------------------------------
Adjustments:
--------------------------------------------------------------------------------
Non-cash transactions or items that are not part of 1,748 11,663
cash flows from operating activities
--------------------------------------------------------------------------------
Interest and other financial expenses 563 88
--------------------------------------------------------------------------------
Interest income -4 -9
--------------------------------------------------------------------------------
Income taxes 703 -2,094
--------------------------------------------------------------------------------
Change in working capital:
--------------------------------------------------------------------------------
Change in trade and other current receivables 2,850 1,888
--------------------------------------------------------------------------------
Change in trade and other current liabilities -3,717 -83
--------------------------------------------------------------------------------
Change in provisions -292 -189
--------------------------------------------------------------------------------
Interest and other financial expenses paid -86 -88--------------------------------------------------------------------------------
Interest received 2 7
--------------------------------------------------------------------------------
Income taxes paid and tax returns received -1,110 -1,560
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash from operating activities 45 -660
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from investing activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Acquisition of subsidiaries, net of cash acquired - -1,812
--------------------------------------------------------------------------------
Investments in tangible assets -142 -202
--------------------------------------------------------------------------------
Investments in intangible assets -10 -62
--------------------------------------------------------------------------------
Investments in development projects -1,092 -1,488
--------------------------------------------------------------------------------
Change in other non-current receivables -15 -32
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash used in investing activities -1,259 -3,595
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from financing activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Proceeds from borrowings 2,000 2,021
--------------------------------------------------------------------------------
Repayment of borrowings -1,004 -305
--------------------------------------------------------------------------------
Lease payments -13 -10
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash used in financing activities 982 1,706
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in cash and cash equivalents -232 -2,549
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the 4,817 9,401
period
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 4,515 6,818
--------------------------------------------------------------------------------
Change -302 -2,583
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Effects of changes in foreign exchange rates -70 34
--------------------------------------------------------------------------------
*Q1/2012 error has been corrected.
Consolidated Statement of Changes in Equity
--------------------------------------------------------------------------------
-
Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
-
EUR 1,000 Share Other Translati Fair Treasur Retained Total
capita reserv on value y earnings
l es differenc reserve shares
es
--------------------------------------------------------------------------------
Equity at 2,141 178 -682 -589 -375 41,133 41,805
31 Dec 2011
--------------------------------------------------------------------------------
Dividends -3,207 -3,207
--------------------------------------------------------------------------------
Transfer of 66 14 -14 66
treasury shares
--------------------------------------------------------------------------------
Share-based 84 84
compensation*
--------------------------------------------------------------------------------
Total 3 560 -10,285 -9,721
comprehensive
income for the
period*
--------------------------------------------------------------------------------
Equity at 2,141 243 -679 -29 -361 27,712 29,027
31 Mar 2012
--------------------------------------------------------------------------------
*Q1/2012 error has been corrected.
Consolidated Statement of Changes in Equity
--------------------------------------------------------------------------------
-
Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
-
EUR 1,000 Share Other Translation Treasury Retained Total
capital reserves differences shares earnings
--------------------------------------------------------------------------------
Equity at 2,141 243 -636 -361 25,568 26,956
31 Dec 2012
--------------------------------------------------------------------------------
Share-based 80 80
compensation
--------------------------------------------------------------------------------
Total comprehensive -100 -613 -713
income for the
period
--------------------------------------------------------------------------------
Equity at 2,141 243 -736 -361 25,036 26,323
31 Mar 2013
--------------------------------------------------------------------------------
Notes
1. Application of new or amended standards and interpretations
On 1 January 2013 the Group adopted the following new and amended standards and
interpretations endorsed by the EU and that are applicable to Comptel:
Amendments to IAS 1 Presentation of Financial Statements. The major change is
the requirement to group items of other comprehensive income as to whether or
not they will be reclassified subsequently to profit or loss when specific
conditions are met.
The other new or amended standards in force as of 1 January 2013 did not have
an impact on the accounting policies and methods of computation.
2. Segment information
Net sales by segment
EUR 1,000 1 Jan - 1 Jan -
31 Mar 2013 31 Mar 2012
------------------------------------------------
------------------------------------------------
Europe East 3,880 3,866
------------------------------------------------
Europe West 4,475 5,001
------------------------------------------------
Asia-Pacific 5,650 4,511
------------------------------------------------
Middle East and Africa 3,526 3,841
------------------------------------------------
Americas 3,640 2,708
------------------------------------------------
Group total 21,171 19,926
------------------------------------------------
Operating profit/loss by segment
EUR 1,000 1 Jan - 1 Jan -
31 Mar 2013 31 Mar 2012*
-----------------------------------------------------------------
-----------------------------------------------------------------
Europe East 1,767 1,345
-----------------------------------------------------------------
Europe West 1,387 2,199
-----------------------------------------------------------------
Asia-Pacific 2,770 1,969
-----------------------------------------------------------------
Middle East and Africa 1,077 1,084
-----------------------------------------------------------------
Americas 2,326 1,483
-----------------------------------------------------------------
Group unallocated expenses -8,285 -19,981
-----------------------------------------------------------------
Group operating profit/loss total 1,042 -11,901
-----------------------------------------------------------------
Financial income and expenses -952 -477
-----------------------------------------------------------------
Group profit/loss before income taxes 90 -12,379
-----------------------------------------------------------------
*Q1/2012 error has been corrected.
3. Business combinations
On 9 February 2012, Comptel Corporation acquired all shares of Xtract Oy, a
Finnish software company specialising in analytics.
The total consideration (enterprise value) was EUR 3,100 thousand. The actual
purchase price was EUR 2,075 thousand.
4. Impairment loss on goodwill
Comptel changed the allocation method of goodwill during the first quarter of
the year 2012. Due to the change, an impairment testing was performed at the
new cash generating unit level which was lower level compared to the one used
during financial year 2011.
As a result of impairment testing Comptel recorded an impairment loss of EUR
10,179 thousand in the first quarter result in 2012.
5. Income tax
Income tax expense according to the statement of comprehensive income for the
period was EUR 703 thousand (EUR 2,904 thousand positive in 2012). A change of
EUR 2,494 thousand in deferred tax liabilities was booked in connection with
the impairment of goodwill in the first quarter of 2012.
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 413 thousand
in January - March (EUR 543 thousand).
6. Tangible assets
EUR 1,000 1 Jan - 31 Mar 2013 1 Jan - 31 Mar 2012
---------------------------------------------------
---------------------------------------------------
Additions 142 209
---------------------------------------------------
Disposals -26 -141
---------------------------------------------------
7. 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 - 31 Mar 2013 1 Jan - 31 Mar 2012
----------------------------------------------------------------
----------------------------------------------------------------
Associate
----------------------------------------------------------------
Other operating income 0 1
----------------------------------------------------------------
Interest income 2 2
----------------------------------------------------------------
EUR 1,000 31 Mar 2013 31 Dec 2012
-------------------------------------------------
-------------------------------------------------
Associate
-------------------------------------------------
Non-current receivables 100 98
-------------------------------------------------
Trade receivables 0 1
-------------------------------------------------
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
2013 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Salaries and other short-term employee 413 557
benefits
--------------------------------------------------------------------------------
Share-based payments 79 45
--------------------------------------------------------------------------------
Total 492 602
--------------------------------------------------------------------------------
Guarantees and other commitments
EUR 1,000 31 Mar 2013 31 Dec 2012
------------------------------------
------------------------------------
Guarantees 70 70
------------------------------------
8. Commitments
Minimum lease payments on non-cancellable office facilities and other operating
leases are payable as follows:
EUR 1,000 31 Mar 2013 31 Dec 2012
----------------------------------------------------
----------------------------------------------------
Less than one year 2,605 2,934
----------------------------------------------------
Between one and five years 5,618 6,087
----------------------------------------------------
Total 8,223 9,021
----------------------------------------------------
The group had no material capital commitments for the purchase of tangible
assets at 31 March 2013 and 31 March 2012.
9. Contingent liabilities
EUR 1,000 31 Mar 2013 31 Dec 2012
---------------------------------------------
---------------------------------------------
Bank guarantees 2,391 2,969
---------------------------------------------
Corporate mortgages 200 200
---------------------------------------------
EUR 1,000 31 Mar 2013 31 Dec 2012
--------------------------------------------------------------------
--------------------------------------------------------------------
Contingent liabilities on behalf of others
--------------------------------------------------------------------
Guarantees 121 123
--------------------------------------------------------------------
10. Key figures
Financial summary 1 Jan - 31 Mar 1 Jan - 31 Mar
2013 2012*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales, EUR 1,000 21,171 19,926
--------------------------------------------------------------------------------
Net sales, change % 6.2 18.4
--------------------------------------------------------------------------------
Operating profit/loss, EUR 1,000 1,042 -11,901
--------------------------------------------------------------------------------
Operating profit/loss, change % 108.8 -12,819.3
--------------------------------------------------------------------------------
Operating profit/loss, as % of net sales 4.9 -59.7
--------------------------------------------------------------------------------
Profit/loss before taxes, EUR 1,000 90 -12,379
--------------------------------------------------------------------------------
Profit/loss before taxes, as % of net sales 0.4 -62.1
--------------------------------------------------------------------------------
Return on equity, % - -
--------------------------------------------------------------------------------
Return on investment, % - -
--------------------------------------------------------------------------------
Equity ratio, % 49.8 56.9
--------------------------------------------------------------------------------
Gross investments in tangible and intangible 152 3,171
assets, EUR 1,0001)
--------------------------------------------------------------------------------
Gross investments in tangible and intangible 0.7 15.9
assets, as % of net sales
--------------------------------------------------------------------------------
Capitalisations according to IAS 38 to 1,092 1,488
intangible assets, EUR 1,000
--------------------------------------------------------------------------------
Research and development expenditure, EUR 1,000 4,191 5,184
--------------------------------------------------------------------------------
Research and development expenditure, 19.8 26.0
as % of net sales
--------------------------------------------------------------------------------
Order backlog, EUR 1,000 50,061 41,110
--------------------------------------------------------------------------------
Average number of employees during the period 683 678
--------------------------------------------------------------------------------
Interest-bearing net liabilities, EUR 1,000 5,497 -3,825
--------------------------------------------------------------------------------
Gearing ratio, % 20.9 -13.1
--------------------------------------------------------------------------------
*Q1/2012 error has been corrected.
1) Includes the acquisition of Xtract in 2012. The gross capital investments
excluding the acquisition amounted to EUR 264 thousand, which is 1.3 per cent
of net sales. The figure does not include investments in development projects.
Per share data 1 Jan - 1 Jan -
31 Mar 2013 31 Mar 2012*
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Earnings per share (EPS), EUR -0.01 -0.10
------------------------------------------------------------------------------
EPS diluted, EUR -0.01 -0.10
------------------------------------------------------------------------------
Equity per share, EUR 0.25 0.27
------------------------------------------------------------------------------
Dividend per share, EUR - -
------------------------------------------------------------------------------
Dividend per earnings, % - -
------------------------------------------------------------------------------
Effective dividend yield, % - -
------------------------------------------------------------------------------
P/E ratio - -
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Adjusted number of shares at the end of the period 107,054,810 107,054,810
------------------------------------------------------------------------------
of which the number of treasury shares 161,219 156,499
------------------------------------------------------------------------------
Outstanding shares 106,893,591 106,898,311
------------------------------------------------------------------------------
Adjusted average number of shares during the period 106,863,518 106,765,118
------------------------------------------------------------------------------
Average number of shares, dilution included 106,863,518 106,765,118
------------------------------------------------------------------------------
*Q1/2012 error has been corrected.
11. 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)
------------------------------------ -----
--------------------------------------------------------------------------------
12. Corrections to figures reported Q1/2012
An error was discovered in the line item Employee benefits for the period
Q1/2012. The error has been corrected retrospectively. The error was related to
the calculation of option costs.
The earnings per share figure has also been restated. Due to the rounding it
did not have impact on the key figure. The correction did not impact the amount
of equity.
The figures for Q1/2012 were changed as follows:
Reported Corrected
figures figures
--------------------------------------------------------------------------------
Consolidated Statement of Comprehensive Income 1 Jan - 31 Mar 1 Jan - 31 Mar
(EUR 1,000) 2012 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 19,926 19,926
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other operating income 1 1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Materials and services -1,622 -1,622
--------------------------------------------------------------------------------
Employee benefits -10,672 -10,541
--------------------------------------------------------------------------------
Depreciation, amortisation and impairment -11,128 -11,128
charges
--------------------------------------------------------------------------------
Other operating expenses -8,538 -8,538
--------------------------------------------------------------------------------
-31,959 -31,829
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss -12,032 -11,901
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 437 437
--------------------------------------------------------------------------------
Financial expenses -914 -914
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss before income taxes -12,509 -12,379
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes 2,094 2,094
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period -10,416 -10,285
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
Cash flow hedges 742 742
--------------------------------------------------------------------------------
Translation differences 3 3
--------------------------------------------------------------------------------
Income tax relating to components of other -182 -182
comprehensive income
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income for the period -9,852 -9,721
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company -10,416 -10,285
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company -9,852 -9,721
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders of the parent company:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR -0.10 -0.10
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR -0.10 -0.10
--------------------------------------------------------------------------------
Schedule for Comptel's interim reports in 2013:
January-June 16 July 2013
January-September 16 October 2013
COMPTEL CORPORATION
Board of Directors
Additional information:
Mr Juhani Hintikka, President and CEO, tel. +358 9 700 1131
Mr Mikko Hytönen, CFO, tel. +358 40 758 5801
Distribution:
NASDAQ OMX Helsinki
Major media
www.comptel.com
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