2011-08-04 08:30:00 CEST
2011-08-04 08:30:09 CEST
REGULATED INFORMATION
Ixonos - Interim report (Q1 and Q3)
Interim report for the period 1 January - 30 June 2011
Helsinki, Finland, 2011-08-04 08:30 CEST (GLOBE NEWSWIRE) -- Ixonos Plc
Interim report 4 August 2011 at 9.30
Interim report for the period 1 January - 30 June 2011
IXONOS' TURNOVER AT THE SAME LEVEL AS THE PREVIOUS YEAR; OPERATING PROFIT
DECREASED
The review period in brief
- Turnover for the review period was EUR 43.0 million (2010: EUR 42.4 million),
a change of +1.2 per cent.
- Operating profit was EUR 1.1 million (2010: EUR 1.8 million), 2.6 per cent of
turnover.
- Net profit was EUR 0.7 million (2010: EUR 0.9 million), 1.5 per cent of
turnover.
- Earnings per share were EUR 0.04 (2010: EUR 0.08).
- Net cash flow from operative activities was EUR 0.7 million (2010: EUR 1.8
million).
Q2/2011 in brief
- Turnover for the second quarter was EUR 21.8 million (2010: EUR 21.9
million), a change of -0.4 per cent.
- Operating profit was EUR 0.7 million (2010: EUR 1.3 million), 3.4 per cent of
turnover.
- Net profit was EUR 0.4 million (2010: EUR 0.7 million), 2.0 per cent of
turnover.
- Earnings per share were EUR 0.03 (2010: EUR 0.06).
Future prospects in brief
- The company's turnover and operating profit for the year 2011 are predicted
to be lower than in the previous year, but operating profit is forecast to be
positive.
Kari Happonen, President and CEO:
Ixonos' operating environment became more volatile in the beginning of the
year, after Nokia Corporation, the company's single, largest customer,
announced its new smartphone strategy in February 2011. The previous year's
strong growth abated at the beginning of 2011 and turnover grew only slightly,
despite the company's intensified securing of new customers. The decrease in
growth also affected our profitability. Because of this, we commenced
co-operation negotiations with our personnel in Finland in April to realign our
operations with the business needs and volume in the new market situation.
Similar measures were also taken at our Danish and U.S. sites during June.
In future, many industries - not just the conventional mobile and smartphone
industry - will take advantage of mobile technologies including wireless
connectivity to different kinds of online services. This will create new growth
opportunities for our industry and for us as one of its leading players.
Ixonos provides software and R&D services to globally operating companies that
lead the way in the utilization of wireless technologies by supplying new
mobile devices and services to consumers as well as corporate users. We already
provide services and solutions to customers including technology and chipset
suppliers, mobile device manufacturers, the entertainment and consumer
electronics industry, telecommunications companies and other online service
providers. In addition, we will seek growth in other sectors, such as in the
automotive industry and in the development of sophisticated in-vehicle
connectivity solutions, which is why we joined the Car Connectivity Consortium
in June. Besides Ixonos, the consortium includes major vehicle manufacturers
and consumer electronics makers.
In the second half of 2011, we will continue to focus our marketing and sales
activities on the acquisition of new customers. Our activities to secure new
customers will be spearheaded by turnkey device-creation services for
smartphones based on Android, MeeGo and chipsets from leading technology
suppliers as well as by user experience design services, delivery solutions for
mobile content and applications. Our Finnish subsidiary Ixonos Business
Solutions Ltd. continues to provide development solutions and services for
e-business and e-government as well as cloud services as the core offering.
We expand our clientele already during this year and turnover from our new
customers will compensate for the reduction in Nokia revenue. Nevertheless, we
anticipate that turnover in the final quarter of this year will decrease to
such an extent that our turnover for the entire year will fall short of the
previous year. We also expect this decrease to continue next year. As well as
securing new customers, our goal is to prepare to make adjustments in our cost
structure to maintain optimal profitability.
OPERATIONS
Ixonos develops wireless technologies, software, mobile devices and services.
Together with our corporate customers, we create products and services that
allow consumers to enjoy inspiring digital experiences regardless of time and
place.
We improve the competitiveness of our client organisations by enabling superior
user experiences for their devices and services and by shortening the time to
market. We aim to position ourselves as a strategic partner to the industry's
leading innovators and pioneers. We provide solutions and services for R&D of
mobile software and complete wireless devices, for the design, operation and
maintenance of mobile applications and mobile web services and for user
experience design that encompasses devices as well as services.
Our Finnish subsidiary Ixonos Business Solutions Ltd. provides development
solutions and services for e-business and e-government.
Ixonos has offices in Finland, China, Denmark, Estonia, Germany, Great Britain,
Slovakia, South Korea and the U.S.
SEGMENTS
Since the beginning of 2011, Ixonos reports its business operations as two
segments: Mobile Solutions and Business Solutions.
Mobile Solutions
The Mobile Solutions business area comprises development solutions and services
for wireless technologies, mobile devices and services. The area's clientele
includes wireless technology suppliers, mobile device manufacturers,
telecommunications companies and consumer electronics manufacturers operating
on the international market as well as other companies taking advantage of the
new business opportunities that wireless communication enables.
The offering of the Mobile Solutions area consists of customised expert
services as well as productised solutions for device creation, for user
experience design and for managed services.
Ixonos' Device Creation Centre provides development solutions for mobile
devices. In addition to software development, these services cover mechanical
engineering and electronics design. The centre provides international
device-manufacturer and operator customers with comprehensive R&D services for
next-generation wireless devices. The unit develops smartphones and other
wireless devices based on new, powerful chipsets from the world's leading
technology suppliers and on several different operating systems.
The User Experience Design Centre is Ixonos' unit for globally provided user
experience design and consulting services. The unit concentrates on the
creation of enticing user experiences and helps Ixonos provide productised
services and customised solutions for its international clientele. The unit
offers services ranging from user experience design strategy and concept
development to concrete design work and solution creation.
Ixonos' Managed Services Centre provides solutions and services that span the
entire life cycle of business-critical web services, from requirements analysis
to design, development, maintenance and further development. The unit develops
and maintains e.g. solutions for media and content services, for information
management and for mobile advertising and e-commerce, as well as social network
services. In addition to flexible development and deployment of web and mobile
services, the unit offers a maintenance package that includes application
support as well as maintenance and data centre services.
During the review period, the turnover of the Mobile Solutions business area
increased by 2.3 per cent to EUR 36.4 million (2010: EUR 35.5 million).
Operating profit decreased by 20.4 per cent to EUR 3.1 million (2010: EUR 3.7
million), 8.5 per cent of turnover.
The operating environment of the Mobile Solutions business area became more
volatile in the beginning of the year, after Nokia Corporation, a key customer,
announced its new smartphone strategy. Due to the changes in the Nokia account,
the segment fell clearly short of its growth targets. Demand for R&D services
based on Nokia's MeeGo and Symbian platforms is estimated to decrease in the
second half of this year as well as in 2012. Because of this, the volume and
profitability of the segment's business operations are expected to decline.
In accordance with strategy, Ixonos continues to expand the clientele of its
Mobile Solutions business area by boosting sales of services and solutions
based on mobile Linux platforms such as Android and MeeGo. The target group
consists of mobile technology suppliers, mobile device manufacturers, consumer
electronics manufacturers and other customers in Finland as well as
internationally. At the same time, the segment strives to maintain the best
possible profitability.
Business Solutions
Ixonos' Business Solutions provides innovative e-business solutions to meet the
challenges of tomorrow's service operations. The business area provides
development solutions and services for e-business and e-government. The
segment's clientele consists of Finnish telecommunication and finance companies
and public administration organisations.
The business area offers e-business and e-government services focusing on
business process development, architecture services, portal solutions, content
and case management solutions and business intelligence solutions. The unit
also provides R&D services that help client organisations use agile development
methods to create innovative new web services. With these services, Business
Solutions aims to improve the internal and external customer service of its
clients.
The solutions developed by the unit utilise product platforms of selected
technology partners as well as open source solutions. By collaborating with
Ixonos' other units, Business Solutions offers comprehensive solutions to meet
the e-business and e-government needs of its customers.
The turnover of the Business Solutions segment decreased by 14.7 per cent to
EUR 7.5 million (2010: EUR 8.8 million) during the review period. Operating
profit was negative, EUR -0.4 million, although the losses were somewhat lower
than in the corresponding period of the previous year (2010: EUR -0.5 million).
The volume of the segment's business operations ceased to decline in late 2010
and it has increased since early 2011, although operating profit remains
negative.
TURNOVER
Consolidated turnover for the review period was EUR 43.0 million (2010: EUR
42.4 million), which is 1.2 per cent more than in the same period the previous
year. Of the total turnover of all segments, before elimination of
inter-segment revenue, the Mobile Solutions segment accrued 82.8 per cent
(2010: 80.1 per cent) and the Business Solutions segment accrued 17.2 per cent
(2010: 19.9 per cent).
Turnover in the second quarter was EUR 21.8 million (2010: EUR 21.9 million),
which is 0.4 per cent less than in the previous year.
Turnover by segment:
EUR 1,000 1-6 2011 1-6 2010 1-12 2010
-------------------------------------------------
Mobile Solutions 36,355 35,536 72,579
-------------------------------------------------
Business Solutions 7,548 8,849 15,475
-------------------------------------------------
Eliminations -948 -1,958 -3,110
-------------------------------------------------
Group total 42,954 42,427 84,944
-------------------------------------------------
FINANCIAL RESULT
Consolidated operating profit was EUR 1.1 million (2010: EUR 1.8 million).
Profit before taxes was EUR 0.9 million (2010: EUR 1.3 million). Profit for the
review period was EUR 0.7 million (2010: EUR 0.9 million). Earnings per share
were EUR 0.04 (2010: EUR 0.08). Diluted cash flow from operating activities was
EUR 0.02 per share (2010: EUR 0.15).
Operating profit for the second quarter was EUR 0.6 million (2010: EUR 1.3
million). Profit before taxes was EUR 0.5 million (2010: EUR 0.9 million).
Profit for the second quarter was EUR 0.3 million (2010: EUR 0.7 million).
Second-quarter diluted earnings per share were EUR 0.03 (2010: EUR 0.06).
Diluted cash flow from operating activities in the second quarter was EUR 0.03
per share (2010: EUR 0.32). Affecting the result for the second quarter as well
as for the entire review period, the company incurred one-off expenses of some
EUR 0.4 million caused by operational restructuring and the closing down of
international offices.
Operating profit by segment:
EUR 1,000 1-6 2011 1-6 2010 1-12 2010
----------------------------------------------------
Mobile Solutions 3,093 3,724 8,891
----------------------------------------------------
Business Solutions -400 -472 -838
----------------------------------------------------
Common group expenses -1,588 -1,444 -2,722
----------------------------------------------------
Group total 1,105 1,809 5,331
----------------------------------------------------
RETURN ON CAPITAL
Consolidated return on equity (ROE) was 4.5 per cent (2010: 8.2 per cent).
Return on investment (ROI) was 5.9 per cent (2010: 9.4 per cent).
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 57.9 million (2010: EUR 58.1 million).
Shareholders' equity was EUR 29.1 million (2010: EUR 26.0 million). The equity
ratio was 51.1 per cent (2010: 44.7 per cent). The Group's liquid assets at the
end of the review period amounted to EUR 1.0 million (2010: EUR 4.2 million).
At the end of the review period, the company's balance sheet showed EUR 9.2
million (2010: EUR 12.5 million) in bank loans. This amount includes overdraft
in use. The bank loans have covenants attached to them. The covenants are based
on the company's equity ratio and on the proportion of interest-bearing bank
loans (partly interest-bearing net liabilities) to the twelve-month rolling
operating profit.
GOODWILL
On 30 June 2011, the consolidated balance sheet included EUR 23.6 million in
goodwill. At the end of 2010, the company performed impairment testing of
goodwill in all cash generating units and concluded that no goodwill impairment
is required in connection with the units. The company assesses that the risk
related to estimation of future cash flows has increased. However, the company
is not aware of any such impending change in future cash flows as would require
goodwill impairment.
CASH FLOW
During the review period, consolidated cash flow from operating activities was
EUR 0.7 million (2010: EUR 1.8 million). The turnaround time of accounts
receivable has become longer from 2010 onwards and this has influenced cash
flow from operating activities. At 30 June 2011, the company had sold a total
of EUR 3.5 million (2010: EUR 1.9 million) in accounts receivable to reduce the
turnaround time.
PERSONNEL
The number of personnel averaged 1,143 (2010: 1,105) during the review period
and was 1,146 (2010: 1,135) at the end of the period. The staff increase
occurred mainly in companies outside Finland. At the end of the review period,
the Group had 682 employees (2010: 756) in Finnish companies, while Group
companies in other countries employed 464 (2010: 379).
SHARES AND SHARE CAPITAL
Share turnover and price
During the review period, the highest price of the company's share was EUR 2.79
(2010: EUR 2.99) and the lowest EUR 0.92 (2010: EUR 1.87). The closing price on
30 June 2011 was EUR 1.00 (2010: EUR 1.93). The average price over the review
period was EUR 1.67 (2010: EUR 2.17). The number of shares traded during the
review period was 3,854,126 (2010: 1,048,559), which corresponds to 25.5 per
cent (2010: 11.3 per cent) of the total number of shares at the end of the
review period. Based on the closing price on 30 June 2011, the market value of
the company's shares was EUR 15,102,484 (2010: EUR 28,245,268).
Share capital
At the beginning of the review period, the company's registered share capital
was EUR 585,394.16 and the number of shares was 15,102,484. Following the
directed issue that took place during the review period, the number of shares
is 15,122,974.
Option plan 2006
Under the 2006 stock option plan, 140,000 series AI options, 140,000 series AII
options, 60,000 series BI options and 60,000 series BII options have been
granted. Of the series A options, 15,000 AI options and 25,000 AII options have
been returned to the company pursuant to the terms of the option plan. A total
of 30,000 returned series A options have been converted to series B options, in
accordance with the terms of the option plan, and redistributed. Of the series
B options, 5,000 BI options and 10,000 BII options have been returned to the
company pursuant to the terms of the option plan. The maximum number of shares
that can be subscribed for with outstanding options under the option plan of
2006 is 366,500, which is equivalent to 3.9 per cent of all the company's
shares. The subscription period for series 2006 AI options began on 1 October
2007, the subscription period for series AII and BI options on 1 October 2008
and the subscription period for series BII options on 1 October 2009. At 30
June 2011, the exercise price is EUR 4.13 with series AI and AII options and
EUR 4.92 with series BI and BII options. The subscription period for the
options that were granted in 2006 will end on 31 December 2011.
Because of a rights issue, the company's Board of Directors decided on 1 June
2010 to modify the subscription ratio and exercise price associated with the
option rights. The change is intended to ensure equal treatment of option
holders and shareholders. Under the new subscription ratio, each series 2006A
and 2006B option right entitles its holder to subscribe for 1.57 shares. The
exercise price is based on the market price of the company's share at NASDAQ
OMX Helsinki Ltd from January to March 2006 and 2007. However, the exercise
price per share is at least EUR 3.0464 with series 2006A options and at least
EUR 3.5491 with series 2006B options. On exercise, the total number of shares
for which the option holder subscribes is rounded down to the nearest integer.
The total exercise price is calculated using the rounded number of shares and
is rounded to the nearest cent. After the change, a maximum of 575,405 shares
can be subscribed for with option rights. This equals 3.8 per cent of the
shares at the end of the review period.
Shareholders
The company had 3,086 shareholders on 30 June 2011 (2010: 2,983). Private
persons owned 53.3 per cent (2010: 56.9 per cent) and institutions 46.7 per
cent (2010: 43.1 per cent) of the shares. Foreign ownership was 7.9 per cent
(2010: 7.8 per cent) of all shares.
Board authorisations
On 29 March 2011, Ixonos Plc's Annual General Meeting authorised the Board of
Directors to decide on a rights issue, as well as on issuing stock options and
other special rights entitling to shares pursuant to chapter 10, section 1 of
the Limited Liability Companies Act (624/2006), under the following terms:
The number of shares to be issued under the authorisation may not exceed
1,500,000, which is equivalent to approximately 10 per cent of all company
shares at the time of convening the Annual General Meeting.
The Board of Directors was granted authority to decide, within the limits of
the authorisation, on all terms of the share issue as well as on those of the
issue of special rights entitling to shares.
The Board of Directors was also granted authority to decide on crediting the
subscription price to the share capital or, in whole or in part, to the
invested non-restricted equity fund.
Shares as well as special rights entitling to shares may also be issued in a
way that deviates from the pre-emptive rights of shareholders, if a weighty
financial reason for this exists as laid out in the Limited Liability Companies
Act. In such a case, the authorisation may be used to finance corporate
acquisitions or other investments associated with the company's operations, to
maintain and improve the Group's solvency or as part of the company's incentive
plan.
The authorisation is effective until the Annual General Meeting 2012.
OTHER EVENTS DURING THE REVIEW PERIOD
Ixonos concluded its co-operation negotiations
On 19 April 2011, the company commenced co-operation negotiations for reasons
relating to finances, production and reorganisation. The negotiations applied
to all Ixonos Group employees in Finland except for those employed by Ixonos
Business Solutions Ltd. The goal of the negotiations was to adjust the
company's cost structure to the decelerated growth as well as to improve the
company's ability to maintain the best possible profitability.
The completion of the negotiations was announced on 1 June 2011. As a result of
the negotiations, 8 employees in the administration and support functions of
the Ixonos Group were dismissed. In addition, no new employees are hired to
replace those who leave of their own accord such as by giving notice or taking
family leave.
The company will also phase out its mobile device R&D services in Salo and
Turku by the end of 2011. The personnel at these sites will be reduced by 21
employees unless they can be employed in Ixonos' other units.
Of the employees affected by the negotiations, 14 transferred to other duties
within the Group. If necessary, the company will also enact temporary lay-offs
of not more than 50 employees by September 2011 to prepare for decelerating
growth.
New office in Seoul
In June, the company established a branch office in Seoul, South Korea to serve
as a customer interface, sales office and technical support for the company's
client operations in the region, both with existing and new customers. The
opening of the new office is in line with Ixonos' strategic efforts to expand
its business globally and supports the company's heightened sales efforts
towards international companies operating within the connected devices domain.
The office in Korea is part of Ixonos' APAC area operations.
Qualcomm chipsets to Ixonos' technology base
In June, Ixonos licensed Qualcomm's chipset technology, which enables a variety
of Android devices to be delivered to Ixonos' global clientele as turnkey
development projects. Qualcomm's technology enables fast and efficient
development of connected devices for the large and growing market.
Rationalisation of international activities and adjustment of first-quarter
operating profit forecast
In its first interim report for the financial period, Ixonos announced that the
Group's turnover and operating profit for the first half-year were expected to
be at the same level as in the previous year. On 29 June 2011, Ixonos announced
that due to changes in its operating environment, the company would close its
office in Boston and focus its U.S. sales activities on the West Coast, closer
to its corporate customers developing mobile technology as well as to media and
other companies providing mobile content and services. The company also
announced that it would close its office in Copenhagen and concentrate its
Danish operations in Aalborg, where development work based particularly on the
Android operating system is being carried out.
In connection with the rationalisation of international operations and with the
previously announced co-operation negotiations in Finland, the company
announced that it would recognise non-recurring costs of EUR 0.4 million in the
second quarter of this year. The rationalisation is expected to create yearly
savings of approximately EUR 2.5 million from the third quarter of this year.
RISK MANAGEMENT AND NEAR-FUTURE UNCERTAINTY FACTORS
Ixonos Plc's risk management aims to ensure undisturbed continuity and
development of the company's operations, to support attainment of the
commercial targets set by the company and to promote increasing company value.
Details on the risk management organisation and process as well as on
recognised risks are presented on the company's website at www.ixonos.com.
Changes in key customer relationships may have an adverse effect on Ixonos'
operations, earning power and financial status. Should a major customer switch
its purchases from Ixonos to its competitors or make forceful changes to its
own operating model, Ixonos would have limited ability to acquire, in the short
term, new customer volume to compensate for such changes.
Ixonos' corporate acquisitions in 2006-2008, its rapid growth in 2010 and the
prolonged turnaround time of accounts receivable have increased the company's
need for working capital. The company manages this need by creating, together
with financiers, adequate buffers to ensure sufficient funds as well as by
facilitating the circulation of working capital. The company's balance sheet
also includes a significant amount of goodwill, which may be impaired should
internal or external factors reduce the profit expectations of the company or
any of its cash generating units. Goodwill is tested during the final quarter
of each year and, if necessary, at other times.
The company's financial agreements have covenants attached to them. A covenant
violation may cause an increase in the company's financial expenses or a call
for swift partial or full repayment of non-equity loans. The main risks related
to covenant violations are associated with operating profit fluctuation due to
the market situation and with a potential need to increase the company's
working capital through non-equity funding. The company manages these risks by
negotiating with financiers and by maintaining readiness for various financing
methods. Ixonos has in use the cash funds its normal operations require.
FUTURE PROSPECTS
According to Gartner research, the global market for R&D services in the area
of mobile phones, smartphones and other mobile devices is expected to continue
its intense growth in 2011. Wireless data transfer is anticipated to continue
its expansion into new areas of consumer electronics. Market-Visio indicates
that the Finnish ICT market will grow some 4 per cent in 2011. This growth rate
is near the long-term average.
In accordance with strategy, Ixonos continues to expand its clientele by
boosting sales of services and solutions to mobile technology suppliers, mobile
device manufacturers, consumer electronics manufacturers and other customers in
Finland as well as internationally while striving to maintain the best possible
profitability. The company's sales of software development services for R&D
projects based on Nokia's MeeGo and Symbian platforms are estimated to decrease
in the second half of this year. Despite intensified sales to other customers,
the volume and profitability of Ixonos' Mobile Solutions area is therefore
expected to decline at least temporarily.
The company's turnover and operating profit for the year 2011 are predicted to
be lower than in the previous year, but operating profit is forecast to be
positive.
The company aims to continue vigorously securing new customers and developing
its services as well as to maintain cash flow and profitability by
rationalising its operations.
NEXT REPORTS
Ixonos will publish its interim report for the period 1 January - 30 September
2011 on Tuesday, 25 October 2011.
IXONOS PLC
Board of Directors
For more information, please contact:
Ixonos Plc
Kari Happonen, President and CEO, tel. +358 400 700 761,
kari.happonen@ixonos.com
Timo Leinonen, CFO, tel. +358 400 793 073, timo.leinonen@ixonos.com
Distribution
NASDAQ OMX Helsinki
Main media
THE IXONOS GROUP
ABBREVIATED FINANCIAL STATEMENTS 1 JANUARY - 30 JUNE 2011
Accounting policies
This interim report has been prepared in accordance with IAS 34 (Interim
Financial Reporting), the accounting policies for the financial statements of
31 December 2010 and such new and revised standards that came into effect on 1
January 2011 as described in the annual financial statements.
Preparing the financial statements in accordance with IFRS requires Ixonos'
management to make estimates and assumptions that affect the amounts of assets
and liabilities on the balance sheet date as well as the amounts of income and
expenses for the financial period. In addition, judgment must be used in
applying the accounting policies. As the estimates and assumptions are based on
views at the time of the interim report, they involve risks and uncertainty
factors. Actual results may differ from estimates and assumptions.
The figures in the income statement and balance sheet are consolidated. The
consolidated balance sheet includes all Group companies as well as Ixonos
Management Invest Oy, a company owned by members of Ixonos' management. The
original interim report is in Finnish. The interim report in English is a
translation of the original report.
As the figures in the report have been rounded, sums of individual figures may
differ from the sums presented. The interim report is unaudited.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
1.1.-30.6.20 1.1.-30.6.20 Change, per 1.1.-31.12.2
11 10 cent 010
--------------------------------------------------------------------------------
Turnover 42,954 42,427 1.2 84,944
--------------------------------------------------------------------------------
Operating expenses -41,849 -40,619 3.0 -79,613
--------------------------------------------------------------------------------
OPERATING PROFIT 1,105 1,809 -38.9 5,331
--------------------------------------------------------------------------------
Financial income and -209 -525 -60.3 -781
expenses
--------------------------------------------------------------------------------
Profit before tax 897 1,283 -30.1 4,550
--------------------------------------------------------------------------------
Income tax -246 -359 -31.6 -1,292
--------------------------------------------------------------------------------
PROFIT FOR THE REVIEW 651 925 -29.6 3,258
PERIOD
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Equity holders of the 663 925 3,262
parent
--------------------------------------------------------------------------------
Non-controlling -12 0 -4
interests
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, EUR 1,000
Profit for the review period 651 925 -29.6 3,258
--------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------
Change in translation difference -56 104 -153.7 40
--------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 595 1,029 -42.2 3,298
--------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, EUR 1,000
ASSETS 30.6.2011 30.6.2010 31.12.2010
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Goodwill 23,647 23,647 23,647
--------------------------------------------------------------------------------
Other intangible assets 5,820 5,042 5,580
--------------------------------------------------------------------------------
Property, plant and equipment 3,704 4,659 4,210
--------------------------------------------------------------------------------
Deferred tax assets 32 115 108
--------------------------------------------------------------------------------
Available-for-sale investments 110 110 110
--------------------------------------------------------------------------------
TOTAL NON-CURRENT ASSETS 33,313 33,573 33,655
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Trade and other receivables 23,555 20,352 21,811
--------------------------------------------------------------------------------
Cash and cash equivalents 1,023 4,180 1,226
--------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 24,578 24,532 23,037
--------------------------------------------------------------------------------
TOTAL ASSETS 57,891 58,105 56,693
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES 30.6.2011 30.6.2010 31.12.2010
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
Share capital 585 373 585
--------------------------------------------------------------------------------
Share premium reserve 219 219 219
--------------------------------------------------------------------------------
Share issue 0 5,766 0
--------------------------------------------------------------------------------
Invested non-restricted equity fund 20,343 14,808 20,343
--------------------------------------------------------------------------------
Retained earnings 7,044 3,882 3,824
--------------------------------------------------------------------------------
Profit for the period 663 925 3,262
--------------------------------------------------------------------------------
Equity attributable to equity holders of the 28,854 25,972 28,234
parent
--------------------------------------------------------------------------------
Non-controlling interests 222 0 224
--------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 29,076 25,972 28,457
--------------------------------------------------------------------------------
LIABILITIES
--------------------------------------------------------------------------------
Non-current liabilities 6,033 9,734 7,934
--------------------------------------------------------------------------------
Current liabilities 22,782 22,399 20,301
--------------------------------------------------------------------------------
TOTAL LIABILITIES 28,815 32,133 28,235
--------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 57,891 58,105 56,693
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY, EUR 1,000
A: Share capital
B: Share premium reserve
C: Share issue
D: Invested non-restricted equity fund
E: Treasury shares
F: Translation difference
G: Retained earnings
H: Total equity attributable to equity holders of the parent
I: Non-controlling interests
J: Total equity
Equity attributable to equity holders of the parent
-------------------------------------------------------------------------------- A B C D E F G H I J
--------------------------------------------------------------------------------
Shareholders' 373 219 0 14,808 0 -11 3,789 19,177 19,177
equity at 1
January 2010
--------------------------------------------------------------------------------
Profit for the 925 925 925
period
--------------------------------------------------------------------------------
Other comprehensive
income:
--------------------------------------------------------------------------------
Change in 104 104 104
translation
difference
--------------------------------------------------------------------------------
Transactions with
shareholders:
--------------------------------------------------------------------------------
Rights issue 5,766 5,766 5,766
--------------------------------------------------------------------------------
Shareholders' 373 219 5,766 14,808 0 93 3,789 25,972 0 25,972
equity at 30 June
2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' 585 219 0 20,343 0 29 7,058 28,234 224 28,457
equity at 1
January 2011
--------------------------------------------------------------------------------
Profit for the 663 663 -12 651
review period
--------------------------------------------------------------------------------
Other comprehensive
income:
--------------------------------------------------------------------------------
Change in -56 -56 -56
translation
difference
--------------------------------------------------------------------------------
Transactions with
shareholders:
--------------------------------------------------------------------------------
Rights issue 50 50 50
--------------------------------------------------------------------------------
Share-based 14 14 14
remuneration
--------------------------------------------------------------------------------
Management -50 -50 10 -40
incentive plan
--------------------------------------------------------------------------------
Shareholders' 585 219 0 20,343 0 -27 7,734 28,854 222 29,076
equity at 30 June
2011
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
1.1.-30.6. 1.1.-30.6. 1.1.-31.12
2011 2010 .2010
--------------------------------------------------------------------------------
Cash flow from operating activities
--------------------------------------------------------------------------------
Profit for the period 651 925 3,258
--------------------------------------------------------------------------------
Adjustments to cash flow from operating
activities
--------------------------------------------------------------------------------
Tax 246 359 1,292
--------------------------------------------------------------------------------
Depreciation and impairment 2,009 1,546 3,407
--------------------------------------------------------------------------------
Financial income and expenses 209 525 781
--------------------------------------------------------------------------------
Other adjustments -58 -47 -14
--------------------------------------------------------------------------------
Cash flow from operating activities before 3,057 3,308 8,724
change in working capital
--------------------------------------------------------------------------------
Change in working capital -1,340 -668 -2,077
--------------------------------------------------------------------------------
Interest received 1 4 4
--------------------------------------------------------------------------------
Interest paid -234 -485 -875
--------------------------------------------------------------------------------
Tax paid -771 -385 -1,076
--------------------------------------------------------------------------------
Net cash flow from operating activities 713 1,774 4,700
--------------------------------------------------------------------------------
Cash flow from investing activities
--------------------------------------------------------------------------------
Investments in tangible and intangible -1,322 -1,213 -2,545
assets
--------------------------------------------------------------------------------
Dividends received 8 4 4
--------------------------------------------------------------------------------
Acquisition of subsidiaries 0 -1,052 -1,052
--------------------------------------------------------------------------------
Net cash flow from investment activities -1,314 -2,262 -3,594
--------------------------------------------------------------------------------
Net cash flow before financing -602 -488 1,106
--------------------------------------------------------------------------------
Cash flow from financing activities
--------------------------------------------------------------------------------
Increase in long-term borrowings 0 0 0
--------------------------------------------------------------------------------
Repayment of long-term borrowings -1,413 -1,413 -2,872
--------------------------------------------------------------------------------
Increase in short-term borrowings 2,478 2,630 223
--------------------------------------------------------------------------------
Repayment of short-term borrowings -677 -4,470 -5,353
--------------------------------------------------------------------------------
Proceeds from share issues 10 5,642 5,845
--------------------------------------------------------------------------------
Net cash flow from financing activities 398 2,389 -2,158
--------------------------------------------------------------------------------
Change in cash and cash equivalents -203 1,902 -1,052
--------------------------------------------------------------------------------
Liquid assets at the beginning of the period 1,226 2,278 2,278
--------------------------------------------------------------------------------
Liquid assets at the end of the period 1,023 4,180 1,226
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT, QUARTERLY, EUR 1,000
Q2/2011 Q1/2011 Q4/2010 Q3/2010 Q2/2010
1.1.- 1.1.- 1.10.-31.12.10 1.7.- 1.4.-
30.6.11 31.3.11 30.9.10 30.6.10
--------------------------------------------------------------------------------
Turnover 21,817 21,138 23,157 19,360 21,897
--------------------------------------------------------------------------------
Operating expenses -21,179 20,768 -21,288 -17,706 -20,644
--------------------------------------------------------------------------------
OPERATING PROFIT 638 369 1,869 1,653 1,252
--------------------------------------------------------------------------------
Financial income and -157 -52 -153 -103 -307
expenses
--------------------------------------------------------------------------------
Profit before tax 481 318 1,716 1,551 945
--------------------------------------------------------------------------------
Income tax -140 -107 -498 -435 -288
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 340 211 1,223 1,115 657
--------------------------------------------------------------------------------
SEGMENT REPORTING
1.1.- 1.1.-30.6.201 1.1.-31.12.20
30.6.2011 0 10
--------------------------------------------------------------------------------
Turnover by segment
--------------------------------------------------------------------------------
Mobile Solutions 36,355 35,536 72,579
--------------------------------------------------------------------------------
Business Solutions 7,548 8,849 15,475
--------------------------------------------------------------------------------
Eliminations -948 -1,958 -3,110
--------------------------------------------------------------------------------
Total turnover 42,954 42,427 84,944
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit by segment
--------------------------------------------------------------------------------
Mobile Solutions 3,093 3,724 8,891
--------------------------------------------------------------------------------
Business Solutions -400 -472 -838
--------------------------------------------------------------------------------
Administration -1,588 -1,444 -2,722
--------------------------------------------------------------------------------
Total operating profit 1,105 1,809 5,331
--------------------------------------------------------------------------------
Operating profit, per cent of 2.6 4.3 6.3
turnover
--------------------------------------------------------------------------------
Financial income and expenses -209 -525 -781
--------------------------------------------------------------------------------
Profit before tax 897 1,283 4,550
--------------------------------------------------------------------------------
Tax -246 -359 -1,292
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 651 925 3,258
--------------------------------------------------------------------------------
CHANGES IN FIXED ASSETS, EUR 1,000 Goodwi Intangibl Property, plant Available-for-s Total
ll e assets and equipment ale investments
--------------------------------------------------------------------------------
Carrying amount at 22,826 5,061 3,942 110 31,939
1 January 2010
--------------------------------------------------------------------------------
Additions 918 1,337 2,255
--------------------------------------------------------------------------------
Additions from 821 821
corporate
acquisitions
--------------------------------------------------------------------------------
Disposals -11 -11
--------------------------------------------------------------------------------
Depreciation for -937 -609 -1,546
the period
--------------------------------------------------------------------------------
Carrying amount at 23,647 5,042 4,659 110 33,457
30 June 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Carrying amount at 23,647 5,580 4,210 110 33,547
1 January 2011
--------------------------------------------------------------------------------
Additions 1,447 296 1,743
--------------------------------------------------------------------------------
Disposals 0
--------------------------------------------------------------------------------
Depreciation for -1,207 -802 -2,009
the period
--------------------------------------------------------------------------------
Carrying amount at 23,647 5,820 3,704 110 33,281
30 June 2011
--------------------------------------------------------------------------------
FINANCIAL RATIOS
1.1.-30.6.201 1.1.-30.6.201 1.1.-31.12.2
1 0 010
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR 0.04 0.08 0.25
--------------------------------------------------------------------------------
Earnings per share, EUR 0.04 0.08 0.25
--------------------------------------------------------------------------------
Equity per share, EUR 1.91 1.77 1.87
--------------------------------------------------------------------------------
Operating cash flow per share, 0.05 0.15 0.36
diluted, EUR
--------------------------------------------------------------------------------
Return on investment, per cent 5.9 9.4 14.1
--------------------------------------------------------------------------------
Return on equity, per cent 4.5 8.2 13.7
--------------------------------------------------------------------------------
Operating profit / turnover, per 2.6 4.3 6.3
cent
--------------------------------------------------------------------------------
Gearing, per cent 38.6 45.5 36.6
--------------------------------------------------------------------------------
Equity ratio, per cent 51.1 44.7 50.2
--------------------------------------------------------------------------------
OTHER INFORMATION
1.1.-30.6.20 1.1.-30.6.20 1.1.-31.12.20
11 10 10
--------------------------------------------------------------------------------
PERSONNEL 1,143 1,105 1,120
Number of employees, average
--------------------------------------------------------------------------------
Number of employees, at the end of 1,146 1,135 1,138
the period
--------------------------------------------------------------------------------
COMMITMENTS, EUR 1,000 30.6.2011 30.6.2010 31.12.2010
--------------------------------------------------------------------------------
Collateral for own commitments
--------------------------------------------------------------------------------
Corporate mortgages 9,900 9,900 9,900
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Leasing and other rental commitments
--------------------------------------------------------------------------------
Falling due within 1 year 4,799 4,549 4,620
--------------------------------------------------------------------------------
Falling due within 1-5 years 4,087 6,647 5,690
--------------------------------------------------------------------------------
Falling due after 5 years 0 0 0
--------------------------------------------------------------------------------
Total 8,886 11,196 10,310
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Nominal value of interest rate swap
agreement
--------------------------------------------------------------------------------
Falling due within 1 year 0 2,307 0
--------------------------------------------------------------------------------
Falling due within 1-5 years 4,309 2,464 4,893
--------------------------------------------------------------------------------
Falling due after 5 years 0 0 0
--------------------------------------------------------------------------------
Total 4,309 4,771 4,893
--------------------------------------------------------------------------------
Fair value -33 -145 -54
--------------------------------------------------------------------------------
CALCULATION OF KEY FIGURES
Diluted earnings per share = profit for the period / number of shares, adjusted
for issues and dilution, average
Earnings per share = profit for the period / number of shares, adjusted for
issues, average
Shareholders' equity per share = shareholders' equity / number of shares,
undiluted, on the closing date
Cash flow from operating activities, per share, diluted = net cash flow from
operating activities / number of shares, adjusted for issues and dilution,
average
Return on investment (ROI) =
(profit before taxes + interest + other financial expenses) /
balance sheet total − non-interest-bearing liabilities, average x 100
Return on equity (ROE) = net profit / shareholders' equity, average x 100
Gearing = (interest-bearing liabilities − liquid assets) / shareholders' equity
x 100
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