2010-04-28 09:30:00 CEST
2010-04-28 09:30:02 CEST
REGULATED INFORMATION
Ixonos - Interim report (Q1 and Q3)
Interim report for the period 1 January - 31 March 2010
Ixonos Plc Interim report 28 April 2010 at 10:30 Interim report for the period 1 January - 31 March 2010 IXONOS' OPERATIONS CONTINUED ON THE GROWTH TRACK OF LATE 2009 The review period in brief: - Turnover for the review period was EUR 20.5 million (2009: EUR 17.4 million), a change of 17.7 per cent. - Operating profit was EUR 0.6 million (2009: EUR 0.0 million), 2.7 per cent of turnover. - Net profit was EUR 0.3 million (2009: EUR -0.2 million), 1.3 per cent of turnover. - Earnings per share were EUR 0.03 (2009: EUR -0.03). - Diluted earnings per share were EUR 0.03 (2009: EUR -0.03). - Net cash flow from operating activities was EUR -2.0 million (2009: EUR 0.2 million). Future prospects in brief: - Turnover in the second quarter of this year is forecast to substantially surpass turnover for the corresponding period last year. Operating profit for the second quarter is envisaged to be at least at the same level as in the previous year. - Turnover for the entire year is predicted to clearly exceed that of the previous year. Operating profit for the entire year is forecast to be clearly positive. Kari Happonen, President and CEO: Following the economic recession that marked 2009, general demand for ICT services is now on a path of moderate growth. In the first quarter of this year, demand for Ixonos' services has also continued the growth that recommenced at the end of last year. The tight market situation in Finland has nevertheless affected the company's profitability, which has not yet risen to its normal level. The Mobile Terminals & Software business area, which provides R&D services for mobile terminal devices and their software, has succeeded in further boosting its turnover as well as in maintaining moderate profitability. We anticipate the unit to continue its growth throughout this year. Projects involving design of complete mobile devices are being carried out in the Jyväskylä product creation center that was established in autumn 2009. These projects accelerate the growth of the segment's business operations. The Media & Communities business area develops device-independent Internet services related to the delivery of digital media as well as to social network communication. This business area has recovered from last year's temporary reduction in turnover. The decrease had been caused by certain long-term customer projects ending. Now, the segment's turnover has continued the growth that began in the third quarter of 2009. We also expect the unit to grow strongly in the following quarters this year. The Business Solutions area, which provides development and implementation of online services in telecommunication, finance, and public administration, has continued to suffer from the difficult market situation in Finland. The unit's turnover in the first quarter decreased from the previous year's level and operations continued to show a loss. A rationalisation program has been launched in the business area and is expected to improve the unit's profitability from the second quarter of this year. The program seeks to achieve some EUR 1 million in annual savings. The profitability of the unit is expected to reach a reasonable level in the last part of the year. According to market forecasts by research institutes, Finland's ICT market will see a slight upswing this year. The global market is expected to grow clearly faster than the Finnish market. We expect that the volume of the Group's business will continue to grow and that profitability will develop favourably during the year. BUSINESS OPERATIONS Ixonos is an ICT service company providing innovative solutions for mobile communications, social media and digital services. Together with its customers, the company develops products and services that inspire the digital experience regardless of place and time. The company's corporate customers capitalise on new business opportunities and new productivity. By offering services that range from concept design, consulting and project management to software production and maintenance, Ixonos strives to be a strategic partner to leading innovators. One of Ixonos' strategic objectives has been to expand the company's solutions and services to span the entire life cycle of mobile Internet services, from concept development to maintenance. Ixonos' solutions also encompass all sectors of the user experience, from terminal devices and user interfaces to back end systems for mobile Internet services. The Jyväskylä smartphone product development centre (Product Creation Center) that was established in September 2009 expanded the Group's mobile terminal R&D services to cover mechanical engineering and electronics design in addition to software development. With the centre, Ixonos can provide increasingly comprehensive R&D services for next generation smartphones to existing international device-manufacturer and operator customers as well as to new ones. The unit develops smartphones based on new, powerful chipsets from the world's leading technology suppliers and on the Android and Symbian operating systems. The company's clientele comprises globally leading mobile and smartphone manufacturers, network suppliers and telecom carriers as well as Finnish finance, industrial and service companies and public administration organisations. Ixonos has offices in Finland, China, Denmark, Estonia, Germany, Great Britain, Slovakia and the U.S. SEGMENTS Ixonos' business operations are organised into three segments: Mobile Terminals & Software; Media & Communities; and Business Solutions. The Mobile Terminals & Software business area involves product development services for mobile terminal devices and their software. The Media & Communities area comprises device-independent Internet services related to the delivery of digital content and to social network communication. The Business Solutions area encompasses development services for corporate business software and systems as well as for e-government facilities. As a part of the incorporation of the Business Solutions segment some Business Solutions' customer projects were transferred to the Media & Communities segment. Total turnover of the transferred projects was EUR 0.6 million (Q1/2009: EUR 0.8 million) and operating profit EUR 0.1 million (Q1/2009: EUR 0.3 million). The transfer of projects has been taken into account both in the presented segment figures of first quarter of 2010 and in the comparative figures of previous year. Mobile Terminals & Software The Mobile Terminals & Software business area provides its customers with R&D services for mobile terminal devices and software. The Mobile Terminals & Software business area managed to boost its market share further and to increase turnover and operating profit for the review period compared to the previous year. Turnover increased by 25.9 per cent to EUR 11.8 million (2009: EUR 9.4 million). Operating profit increased by 17.4 per cent to EUR 1.2 million (2009: EUR 1.0 million), 10.4 per cent of turnover. The first customer projects related to the design of a complete mobile device were launched in the Jyväskylä product creation center. In addition to actively utilising the offering of the Group's international sites in Tallinn, Košice, Beijing and Chengdu, the Mobile Terminals & Software segment also continued strong efforts to develop international sales. Media & Communities The Media & Communities business area provides its customers with device-independent Internet services related to the delivery of digital media, entertainment and information as well as to social network communication. During the review period, the segment's turnover increased by 68.1 per cent to EUR 5.1 million (2009: EUR 3.0 million). Operating profit decreased by 25.7 per cent to EUR 0.4 million (2009: EUR 0.5 million), 7.2 per cent of turnover. Strong investments in the construction of the company's international operations network continued to weaken the unit's profitability. The Media & Communities segment has actively utilised the offering of the Group's lower-cost sites among others in Košice. Investments in Internet distribution and sales of digital media as well as in social media services on the Internet are expected to grow globally and notably faster than traditional ICT investments. The unique and comprehensive service package Ixonos offers its customers enables agile and cost-efficient creation of new Internet services; implementation of a smooth user experience in services and mobile terminals; and flexible further development and maintenance - including business critical hosting - of services. The unit's turnover is expected to increase forcefully this year. Profitability is anticipated to remain at its present level. Business Solutions The Business Solutions area provides development services pertaining to corporate business software and systems as well as to e-government facilities. The Business Solutions segment's turnover decreased by 8.2 per cent to EUR 4.6 million (2009: EUR 4.6 million). Operating profit remained negative and it was EUR -0.3 million even though it was less than in the previous year (2009: EUR -0.6 million). The reduction in turnover and operating profit was caused by the attenuated general demand for ICT services in Finland due to the economic recession. The Business Solutions area focuses on acceleration of business processes, on document and event management, on e-commerce and e-government solutions and on specialist services in project management. As all the Group's units do, Business Solutions vigorously utilises open source solutions as well as, in chosen solution areas, product platforms of technology partners. The unit aims, among other objectives, to diversify its solution delivery according to the SaaS (software as a service) business model by utilising the Group's advanced business-critical hosting services. The Business Solutions unit also aspires to improve its operative efficiency by concentrating maintenance and further development of certain product platforms so that such work is performed at the Group's site in Košice. The unit's e-commerce and e-government solutions have been well received by customers in the public sector. According to forecasts by research institutes such as Market-Visio, Finland's ICT market will see moderate growth in 2010. Due to the continuously weak market situation in Finland, the Business Solutions area will continue to develop slower than the company's other operations. TURNOVER Consolidated turnover in the first quarter was EUR 20.5 million (2009: EUR 17.4 million), which is 17.7 per cent more than in the previous year. Of the total turnover of all segments, before eliminations, the Mobile Terminals & Software segment accrued 55.0 per cent (2009: 53.9 per cent), the Media & Communities segment accrued 23.7 per cent (2009: 17.4 per cent), and the Business Solutions segment accrued 21.3 per cent (2009: 28.7 per cent). Turnover by segment: -------------------------------------------------------------------------------- | EUR 1,000 | 1-3 2010 | 1-3 2009 | 1-12 2009 | -------------------------------------------------------------------------------- | Mobile Terminals & | 11,838 | 9,403 | 37,310 | | Software | | | | -------------------------------------------------------------------------------- | Media & Communities | 5,104 | 3,037 | 12,716 | -------------------------------------------------------------------------------- | Business Solutions | 4,592 | 5,004 | 17,033 | -------------------------------------------------------------------------------- | Eliminations | -1,003 | 0 | 0 | -------------------------------------------------------------------------------- | Group total | 20,531 | 17,443 | 67,059 | -------------------------------------------------------------------------------- FINANCIAL RESULT Consolidated operating profit was EUR 0.6 million (2009: EUR 0.0 million). Profit before taxes was EUR 0.3 million (2009: EUR -0.3 million). Profit for the review period was EUR 0.3 million (2009: EUR -0.2 million). Diluted earnings per share were EUR 0.03 (2009: EUR -0.03). Diluted cash flow from operating activities was EUR -0.21 (2009: EUR 0.02) per share. The improved operating profit was mainly due to increased turnover. To improve the operating profit, particularly in the Business Solutions area, a rationalisation program was launched in the first quarter. The program is expected to enhance the unit's profitability from the second quarter of this year. Rising costs related to internationalisation management have been a particular cause for the increase in the Group's administrative expenses. Operating profit by segment: -------------------------------------------------------------------------------- | EUR 1,000 | 1-3 2010 | 1-3 2009 | 1-12 2009 | -------------------------------------------------------------------------------- | Mobile Terminals & | 1,226 | 1,044 | 5,667 | | Software | | | | -------------------------------------------------------------------------------- | Media & Communities | 369 | 497 | 1,555 | -------------------------------------------------------------------------------- | Business Solutions | -310 | -877 | -9,224 | -------------------------------------------------------------------------------- | Administration | -729 | -667 | -1,990 | -------------------------------------------------------------------------------- | Group total | 556 | -13 | -3,993 | -------------------------------------------------------------------------------- RETURN ON CAPITAL Consolidated return on equity (ROE) was 5.5 per cent (2009: -3.7 per cent). Return on investment (ROI) was 6.4 per cent (2009: 0.0 per cent). BALANCE SHEET AND FINANCING The balance sheet total was EUR 55.4 million (2009: EUR 58.8 million). Shareholders' equity was EUR 19.5 million (2009: EUR 24.9 million). The equity ratio was 35.2 per cent (2009: 42.4 per cent). The Group's liquid assets at the end of the review period amounted to EUR 1.3 million (2009: EUR 2.3 million). At the end of the review period, the company's balance sheet showed EUR 17.2 million (2009: EUR 8.7 million) in bank loans including overdrafts 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 12-month rolling operating profit. GOODWILL On 31 March 2010, the consolidated balance sheet included EUR 22.8 million in goodwill. In the third quarter of 2009, the company wrote EUR 7.2 million off the goodwill allocated to the Business Solutions area. Ixonos Plc paid EUR 7.8 million as additional acquisition price in accordance with the share purchase agreement, signed on 4 September 2007, for Cidercone Life-Cycle Solutions Oy (later Ixonos Outsourcing Services Ltd). This amount is based on Ixonos Plc's view of the correct additional acquisition price. Negotiations with the selling party have failed to reach an agreement on the amount of the additional acquisition price. To solve the disagreement regarding the additional acquisition price, arbitration has been initiated at the Arbitration Institute of the Central Chamber of Commerce of Finland. In their request for arbitration, the sellers claim an additional acquisition price of some EUR 8 million. The company considers the supplementary demand unfounded. The arbitrator's decision is expected during spring 2010 at the latest. Should the arbitral tribunal, counter to the company's opinion, order the company to pay a higher additional acquisition price, the entire increase would be recorded as an addition to goodwill. CASH FLOW During the review period, consolidated cash flow from operating activities was EUR -2.0 million (2009: EUR 0.2 million). The change in cash flow from operating activities was mainly due to the change in the Group's working capital and, above all, to increases in accounts receivable. Factors contributing to the latter increase include the boost in the Group's turnover as well as the late payment behaviour of customers. At 31 March 2010, the company had sold EUR 2.1 million in accounts receivable. PERSONNEL The number of personnel averaged 1,092 (2009: 971) during the review period and was 1,105 (2009: 975) at the end of the period. Although the rationalisation action in the Group's Finnish companies decreased the number of employees, the growing number of staff employed by companies in other countries nevertheless resulted in an overall increase. At the end of the review period, the Group had 757 employees in Finnish companies, and Group companies in other countries employed 348. SHARES AND SHARE CAPITAL Share turnover and price During the review period, the highest price of the company's share was EUR 3.10 (2009: EUR 2.59) and the lowest EUR 2.71 (2009: EUR 1.80). The closing price on 31 March 2010 was EUR 3.03 (2009: EUR 1.88). The average price over the review period was EUR 2.89 (2009: EUR 2.07). The number of shares traded during the review period was 414,481 (2009: 1,035,361), which corresponds to 4.5 per cent (2009: 11.1 per cent) of the total number of shares at the end of the review period. According to the closing price on 31 March 2010, the market value of the company's shares was EUR 28,218,660 (2009: EUR 17,508,607). Share capital At the beginning of 2010, the company's registered share capital was EUR 372,523.56. The number of shares was 9,313,089. At the end of the review period, Ixonos' share capital was EUR 372,523.56 and the total number of shares was 9,313,089. Option plan 2006 Under the 2006 stock option plan, 140,000 options have been granted under AI; 140,000 options under AII; 60,000 options under BI; and 60,000 options under BII. Of the series A options, 15,000 AI options and 25,000 AII options have been returned to the company pursuant to the terms and conditions 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 and conditions 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 and conditions of the option plan. The maximum number of shares that can be subscribed for with outstanding options under option plan 2006 is 366,500, which is equivalent to 3.9 per cent of the company's total shares. The subscription period for the 2006 AI options began on 1 October 2007. The subscription period for the AII and BI options began on 1 October 2008. The subscription period for the BII options began on 1 October 2009. The subscription price is EUR 4.13 with AI and AII options and EUR 4.92 with BI and BII options. The subscription period for the 2006 options ends on 31 December 2011. Shareholders The company had 2,979 shareholders on 31 March 2010 (2009: 2,801). Private persons owned 56.5 per cent (2009: 59.0 per cent) and institutions 43.5 per cent (2009: 41.0 per cent) of the shares. Foreign ownership was 7.4 per cent (2009: 2.0 per cent) of the total number of shares. Board authorisations At the end of the review period, the Board of Directors had no valid authorisations pertaining to the company's shares. DECISIONS OF THE ANNUAL GENERAL MEETING Ixonos Plc held its Annual General Meeting on 23 March 2010. The meeting adopted the company's financial statements, including the consolidated financial statements, for the financial period 1 January - 31 December 2009 and granted discharge from liability to the members of the Board of Directors as well as to the President and CEO. The meeting decided that no dividend would be paid for the financial period and that eight ordinary members would be elected to the Board of Directors instead of seven as previously. The meeting elected the Board of Directors. Peter Eriksson, Pertti Ervi, Matti Järvinen, Tero Laaksonen, Matti Makkonen and Markku Toivanen were re-elected, and Paul Ehrnrooth and Kirsi-Marja Kuivalainen were elected as new Board members. At its own meeting following the Annual General Meeting, the Board of Directors re-elected Tero Laaksonen as Chairman of the Board and Pertti Ervi as Deputy Chairman. The meeting also appointed the members of the Board's committees. Pertti Ervi was elected Chairman of the Audit Committee, and Paul Ehrnrooth and Matti Järvinen were elected as Audit Committee members. Peter Eriksson, Kirsi-Marja Kuivalainen and Markku Toivanen were elected as members of the Staff Committee. Paul Ehrnrooth and Tero Laaksonen were elected as members of the Nomination Committee. The Annual General Meeting decided to remunerate the Chairman of the Board of Directors with EUR 40,000 per year and EUR 500 per meeting, the Deputy Chairman of the Board with EUR 30,000 per year and EUR 250 per meeting, and other Board members with EUR 20,000 per year and EUR 250 per meeting. The meeting also resolved to pay a fee of EUR 500 per meeting to the chairpersons of the Board's committees, and a fee of EUR 250 per meeting to committee members. Authorized public accountants PricewaterhouseCoopers Oy with Heikki Lassila as principal auditor were re-nominated as the company's auditors. The meeting decided to pay a reasonable auditor's fee according to the auditor's invoice. 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 back up the implementation of the commercial targets set by the company and to support increasing the company's 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/en/investors/risk_management. Presently, the major uncertainty factors are related to potential ramifications of the recession that struck the entire world in 2009. The general economic uncertainty influences corporate investments and propensity to invest. It affects the information systems development investments of Ixonos' customers too; such investments may be put on hold, or decisions regarding them may be postponed. Ixonos' acquisitions, its rapid growth in 2006-2008, the upswing in its project operations 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 either internal or external factors reduce the profit expectations of the company or any of its cash-generating units. Goodwill is tested annually during the final quarter of the 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 financing costs 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 this risk by negotiating with financiers and by maintaining readiness for various financing methods. Ixonos has access to the cash funds its normal operations require. Ixonos Plc has recorded EUR 7.8 million as additional acquisition price in accordance with the share purchase agreement, signed on 4 September 2007, for Cidercone Life-Cycle Solutions Oy (later Ixonos Outsourcing Services Ltd). This amount is based on Ixonos Plc's view of the additional acquisition price. Negotiations with the selling party have failed to reach an agreement on the amount of the additional acquisition price. To solve the disagreement, arbitration is underway at the Arbitration Institute of the Central Chamber of Commerce of Finland. In the request for arbitration, the sellers claim an additional acquisition price of some EUR 8 million in excess of the additional acquisition price that has already been paid. The arbitrator's decision is expected during spring 2010. FUTURE PROSPECTS Gartner research indicates that the total trade volume of the industry decreased globally in 2009 and has begun to increase in 2010. Market-Visio notes that Finland's ICT market tailed off in 2009, but expects it to grow moderately in 2010. The general economic uncertainty also causes Ixonos' customers to remain more cautious than usual in their software and information systems investments as well as in the launching of new projects. Additionally, services are affected by price pressure, particularly in the context of international customer relationships. Turnover in the second quarter of this year is forecast to substantially surpass turnover for the corresponding period last year. Operating profit for the second quarter is envisaged to be at least at the same level as in the previous year. Turnover for the entire year is predicted to clearly exceed that of the previous year. Operating profit for the entire year is forecast to be clearly positive. The company aims to continue rationalising its operations, developing its services, expanding its service production in lower-cost countries and strengthening the cash flow and profitability of its operations. NEXT REPORTS The interim report for the period 1 January - 30 June 2010 will be published on 4 August 2010. IXONOS PLC Board of Directors For more information, please contact: Ixonos Plc Kari Happonen, President and CEO, tel. +358 400 700 761, email: kari.happonen@ixonos.com Timo Leinonen, CFO, tel. +358 400 793 073, email: timo.leinonen@ixonos.com Distribution: NASDAQ OMX Helsinki Main media THE IXONOS GROUP ABBREVIATED FINANCIAL STATEMENTS 1 JANUARY - 31 MARCH 2010 Accounting policies This interim report has been prepared in accordance with the recognition and valuation principles in the International Financial Reporting Standards (IFRS), but not all IAS 34 requirements have been complied with. Income tax expense is based on the performance-based taxes corresponding to the result for the review period. The same accounting policies and computation methods that were applied to the previous annual financial statements have been applied to this interim report. In addition, the new IAS and IFRS standards that have been introduced in 2010 have also been applied, the most significant ones being IFRS 3 (revised), Business Combinations and IAS 27 (revised), Consolidated and Separate Financial Statements. Preparing the financial statements in accordance with IFRS requires Ixonos' management to make estimates and assumptions affecting the amounts of assets and liabilities on the balance sheet date and 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 may involve risks and uncertainty factors. Actual results may differ from estimates and assumptions. The figures in the income statement and in the balance sheet are consolidated. The consolidated balance sheet includes all Group companies. 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 not equal the sums presented. The interim report is unaudited. CONSOLIDATED INCOME STATEMENT, EUR 1,000 -------------------------------------------------------------------------------- | | 1.1.-31.3.1 | 1.1.-31.3. | Change, per | 1.1.-31.12.0 | | | 0 | 09 | cent | 9 | -------------------------------------------------------------------------------- | Turnover | 20,531 | 17,443 | 17.7 | 67,059 | -------------------------------------------------------------------------------- | Operating costs | -19,974 | -17,456 | 14.4 | -63,853 | -------------------------------------------------------------------------------- | OPERATING PROFIT | 556 | -13 | | 3,207 | | BEFORE GOODWILL | | | | | | DEPRECIATION | | | | | -------------------------------------------------------------------------------- | DEPRECIATION OF | 0 | 0 | | -7,200 | | GOODWILL | | | | | -------------------------------------------------------------------------------- | OPERATING PROFIT | 556 | -13 | | -3,993 | -------------------------------------------------------------------------------- | Financial income and | -218 | -323 | -32.5 | -1,471 | | costs | | | | | -------------------------------------------------------------------------------- | Profit before tax | 338 | -336 | | -5,464 | -------------------------------------------------------------------------------- | Income tax | -71 | 104 | | -523 | -------------------------------------------------------------------------------- | PROFIT FOR THE | 268 | -232 | | -5,987 | | PERIOD | | | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, EUR 1,000 -------------------------------------------------------------------------------- | Profit for the period | 268 | -232 | | -5,987 | -------------------------------------------------------------------------------- | Other comprehensive | | | | | | income | | | | | -------------------------------------------------------------------------------- | Change in translation | 30 | -8 | | 5 | | difference | | | | | -------------------------------------------------------------------------------- | TOTAL COMPREHENSIVE | 298 | -240 | | -5,982 | | INCOME FOR THE PERIOD | | | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF FINANCIAL POSITION, EUR 1,000 -------------------------------------------------------------------------------- | ASSETS | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Goodwill | 22,826 | 30,133 | 22,826 | -------------------------------------------------------------------------------- | Intangible assets | 5,014 | 6,113 | 5,061 | -------------------------------------------------------------------------------- | Property, plant and equipment | 4,079 | 3,201 | 3,942 | -------------------------------------------------------------------------------- | Deferred tax assets | 207 | 205 | 233 | -------------------------------------------------------------------------------- | Available-for-sale investments | 110 | 110 | 110 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT ASSETS | 32,237 | 39,762 | 32,172 | -------------------------------------------------------------------------------- | CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Trade and other receivables | 21,885 | 16,655 | 17,691 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 1,282 | 2,341 | 2,278 | -------------------------------------------------------------------------------- | TOTAL CURRENT ASSETS | 23,167 | 18,996 | 19,968 | -------------------------------------------------------------------------------- | TOTAL ASSETS | 55,404 | 58,758 | 52,140 | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY | | | | -------------------------------------------------------------------------------- | Share capital | 373 | 373 | 373 | -------------------------------------------------------------------------------- | Share premium reserve | 219 | 219 | 219 | -------------------------------------------------------------------------------- | Invested non-restricted equity | 14,808 | 14,808 | 14,808 | | fund | | | | -------------------------------------------------------------------------------- | Retained earnings | 3,808 | 9,736 | 9,764 | -------------------------------------------------------------------------------- | Profit for the period | 268 | -232 | -5,987 | -------------------------------------------------------------------------------- | TOTAL SHAREHOLDERS' EQUITY | 19,475 | 24,903 | 19,177 | -------------------------------------------------------------------------------- | LIABILITIES | | | | -------------------------------------------------------------------------------- | Non-current liabilities | 10,498 | 9,754 | 10,543 | -------------------------------------------------------------------------------- | Current liabilities | 25,431 | 24,101 | 22,420 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 35,929 | 33,855 | 32,963 | -------------------------------------------------------------------------------- | TOTAL EQUITY AND LIABILITIES | 55,404 | 58,758 | 52,140 | -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY, EUR 1,000 -------------------------------------------------------------------------------- | | | EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | -------------------------------------------------------------------------------- | | Shar | Shar | Share | Investe | Trans | Retai | Resul | Total | | | e | e | issue | d | latio | ned | t for | | | | capi | prem | | non-res | n | earni | the | | | | tal | ium | | tricted | diffe | ngs | perio | | | | | rese | | equity | rence | | d | | | | | rve | | fund | | | | | -------------------------------------------------------------------------------- | Shareholders | 370 | 121 | 100 | 14,808 | -16 | 9,751 | | 25,13 | | ' equity | | | | | | | | 5 | | at | | | | | | | | | | 1 January | | | | | | | | | | 2009 | | | | | | | | | -------------------------------------------------------------------------------- | Result for | | | | | | | -232 | -232 | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | | | | comprehensiv | | | | | | | | | | e income | | | | | | | | | -------------------------------------------------------------------------------- | Change in | | | | | -8 | | | -8 | | translation | | | | | | | | | | difference | | | | | | | | | -------------------------------------------------------------------------------- | Transactions | | | | | | | | | | with | | | | | | | | | | shareholders | | | | | | | | | -------------------------------------------------------------------------------- | Share issue | 2 | 98 | -100 | | | | | 0 | -------------------------------------------------------------------------------- | Share-based | | | | | | 8 | | 8 | | remuneration | | | | | | | | | | expense | | | | | | | | | -------------------------------------------------------------------------------- | Shareholders | 373 | 219 | 0 | 14,808 | -23 | 9,759 | -232 | 24,90 | | ' equity | | | | | | | | 3 | | at | | | | | | | | | | 31 March | | | | | | | | | | 2009 | | | | | | | | | -------------------------------------------------------------------------------- | Shareholders | 373 | 219 | 0 | 14,808 | -11 | 3,789 | | 19,17 | | ' equity | | | | | | | | 7 | | at | | | | | | | | | | 1 January | | | | | | | | | | 2010 | | | | | | | | | -------------------------------------------------------------------------------- | Result for | | | | | | | 268 | 268 | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | | | | comprehensiv | | | | | | | | | | e income | | | | | | | | | -------------------------------------------------------------------------------- | Change in | | | | | 30 | | | 30 | | translation | | | | | | | | | | difference | | | | | | | | | -------------------------------------------------------------------------------- | Shareholders | 373 | 219 | 0 | 14,808 | 19 | 3,789 | 268 | 19,47 | | ' equity | | | | | | | | 5 | | at | | | | | | | | | | 31 March | | | | | | | | | | 2010 | | | | | | | | | -------------------------------------------------------------------------------- CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000 -------------------------------------------------------------------------------- | | 1.1.- | 1.1.- | 1.1.- | | | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Cash flow from operating activities | | | | -------------------------------------------------------------------------------- | Profit for the period | 268 | -232 | -5,987 | -------------------------------------------------------------------------------- | Adjustments to cash flow from | | | | | operating activities | | | | -------------------------------------------------------------------------------- | Tax | 71 | -104 | 523 | -------------------------------------------------------------------------------- | Depreciation and impairment | 758 | 768 | 3,157 | -------------------------------------------------------------------------------- | Financial income and costs | 218 | 323 | 1,471 | -------------------------------------------------------------------------------- | Depreciation of goodwill | 0 | 0 | 7,200 | -------------------------------------------------------------------------------- | Other adjustments | -166 | 8 | 93 | -------------------------------------------------------------------------------- | Cash flow from operating activities | 1,148 | 764 | 6,457 | | before change in working capital | | | | -------------------------------------------------------------------------------- | Change in working capital | -2,726 | -41 | -314 | -------------------------------------------------------------------------------- | Interest received | 1 | 3 | 25 | -------------------------------------------------------------------------------- | Interest paid | -124 | -157 | -1,360 | -------------------------------------------------------------------------------- | Gains from sales of fixed assets | 0 | 1 | 5 | -------------------------------------------------------------------------------- | Tax paid | -296 | -398 | -1,710 | -------------------------------------------------------------------------------- | Net cash flow from operating | -1,997 | 171 | 3,103 | | activities | | | | -------------------------------------------------------------------------------- | Cash flow from investing activities | | | | -------------------------------------------------------------------------------- | Investments in tangible and | -755 | -7 | -1,369 | | intangible assets | | | | -------------------------------------------------------------------------------- | Dividends received | 0 | 0 | 2 | -------------------------------------------------------------------------------- | Acquisition of subsidiaries | 0 | 0 | -7,486 | -------------------------------------------------------------------------------- | Net cash flow from investment | -755 | -7 | -8,853 | | activities | | | | -------------------------------------------------------------------------------- | Net cash flow before financing | -2,752 | 164 | -5,750 | -------------------------------------------------------------------------------- | Cash flow from financing activities | | | | -------------------------------------------------------------------------------- | Increase in long-term borrowings | 0 | 0 | 4,000 | -------------------------------------------------------------------------------- | Repayment of long-term borrowings | -506 | -506 | -2,425 | -------------------------------------------------------------------------------- | Increase in short-term borrowings | 2,500 | 0 | 4,563 | -------------------------------------------------------------------------------- | Repayment of short-term borrowings | -237 | -230 | -1,024 | -------------------------------------------------------------------------------- | Net cash flow from financing | 1,756 | -736 | 5,115 | | activities | | | | -------------------------------------------------------------------------------- | Change in cash and cash equivalents | -996 | -572 | -635 | -------------------------------------------------------------------------------- | Liquid assets at start of period | 2,278 | 2,913 | 2,913 | -------------------------------------------------------------------------------- | Liquid assets at end of period | 1,282 | 2,341 | 2,278 | -------------------------------------------------------------------------------- CONSOLIDATED INCOME STATEMENT, QUARTERLY, EUR 1,000 -------------------------------------------------------------------------------- | | Q1/201 | Q4/2009 | Q3/2009 | Q2/2009 | Q1/2009 | | | 0 | 1.10.09 | 1.7.09- | 1.4.09- | 1.1.09- | | | 1.1.10 | - | 30.9.09 | 30.6.09 | 31.3.09 | | | - | 31.12.0 | | | | | | 31.3.1 | 9 | | | | | | 0 | | | | | -------------------------------------------------------------------------------- | Turnover | 20,531 | 19,472 | 13,840 | 16,304 | 17,443 | -------------------------------------------------------------------------------- | Operating costs | -19,97 | -17,758 | -13,382 | -15,257 | -17,456 | | | 4 | | | | | -------------------------------------------------------------------------------- | OPERATING PROFIT BEFORE | 556 | 1,715 | 458 | 1,046 | -13 | | GOODWILL DEPRECIATION | | | | | | -------------------------------------------------------------------------------- | DEPRECIATION OF GOODWILL | 0 | 0 | -7,200 | 0 | 0 | -------------------------------------------------------------------------------- | OPERATING PROFIT | 556 | 1,715 | -6,742 | 1,046 | -13 | -------------------------------------------------------------------------------- | Finance income and costs | -218 | -654 | -266 | -228 | -323 | -------------------------------------------------------------------------------- | Profit before tax | 338 | 1,061 | -7,008 | 818 | -336 | -------------------------------------------------------------------------------- | Income tax | -71 | -347 | -50 | -229 | 104 | -------------------------------------------------------------------------------- | PROFIT FOR THE PERIOD | 268 | 714 | -7,058 | 589 | -232 | -------------------------------------------------------------------------------- SEGMENT REPORT -------------------------------------------------------------------------------- | | 1.1.- | 1.1.- | 1.1.- | | | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Turnover by segment | | | | -------------------------------------------------------------------------------- | Mobile Terminals & Software | 11,838 | 9,403 | 37,310 | -------------------------------------------------------------------------------- | Media & Communities | 5,104 | 3,037 | 12,716 | -------------------------------------------------------------------------------- | Business Solutions | 4,592 | 5,004 | 17,033 | -------------------------------------------------------------------------------- | Eliminations | -1,003 | 0 | 0 | -------------------------------------------------------------------------------- | Total turnover | 20,531 | 17,443 | 67,059 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit by segment | | | | -------------------------------------------------------------------------------- | Mobile Terminals & Software | 1,226 | 1,044 | 5,667 | -------------------------------------------------------------------------------- | Media & Communities | 369 | 497 | 1,555 | -------------------------------------------------------------------------------- | Business Solutions | -310 | -887 | -9,224 | -------------------------------------------------------------------------------- | Administration | -729 | -667 | -1,990 | -------------------------------------------------------------------------------- | Total operating profit | 556 | -13 | -3,993 | -------------------------------------------------------------------------------- | Operating profit, per cent of | 2.7 | -0.1 | -6.0 | | turnover | | | | -------------------------------------------------------------------------------- | Finance income and costs | -218 | -323 | -1,471 | -------------------------------------------------------------------------------- | Profit before tax | 338 | -336 | -5,464 | -------------------------------------------------------------------------------- | Tax | -71 | 104 | -523 | -------------------------------------------------------------------------------- | PROFIT FOR THE PERIOD | 268 | -232 | -5,987 | -------------------------------------------------------------------------------- CHANGES IN FIXED ASSETS, EUR 1,000 -------------------------------------------------------------------------------- | | Goodwi | Intangi | Property, | Other | Total | | | ll | ble | plant and | tangibl | | | | | assets | equipment | e | | | | | | | assets | | -------------------------------------------------------------------------------- | Book value | 32,195 | 6,632 | 3,147 | 110 | 42,084 | | at 1 January | | | | | | | 2009 | | | | | | -------------------------------------------------------------------------------- | Additions | | 17 | 297 | | 315 | -------------------------------------------------------------------------------- | Disposals | -2,062 | | -12 | | -2,074 | -------------------------------------------------------------------------------- | Depreciation and | | -537 | -231 | | -768 | | amortisation during the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | Book value | 30,133 | 6,113 | 3,201 | 110 | 39,557 | | at 31 March | | | | | | | 2009 | | | | | | -------------------------------------------------------------------------------- | Book value | 22,826 | 5,061 | 3,942 | 110 | 31,939 | | at 1 January | | | | | | | 2010 | | | | | | -------------------------------------------------------------------------------- | Additions | | 400 | 461 | | 861 | -------------------------------------------------------------------------------- | Disposals | | | -11 | | -11 | -------------------------------------------------------------------------------- | Depreciation and | | -446 | -312 | | -758 | | amortisation during the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | Book value | 22,826 | 5,014 | 4,079 | 110 | 32,030 | | at 31 March | | | | | | | 2010 | | | | | | -------------------------------------------------------------------------------- FINANCIAL RATIOS -------------------------------------------------------------------------------- | | 1.1.- | 1.1.- | 1.1.- | | | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Earnings per share, diluted, EUR | 0.03 | -0.03 | -0.64 | -------------------------------------------------------------------------------- | Earnings per share, EUR | 0.03 | -0.03 | -0.64 | -------------------------------------------------------------------------------- | Equity per share, EUR | 2.09 | 2.67 | 2.06 | -------------------------------------------------------------------------------- | Operating cash flow per share, | -0.21 | 0.02 | 0.33 | | diluted, EUR | | | | -------------------------------------------------------------------------------- | Return on investment, per cent | 6.4 | 0.0 | -9.4 | -------------------------------------------------------------------------------- | Return on equity, per cent | 5.5 | -3.7 | -27.0 | -------------------------------------------------------------------------------- | Operating profit / turnover, per | 2.7 | -0.1 | -6.0 | | cent | | | | -------------------------------------------------------------------------------- | Net gearing | 98.7 | 68.4 | 81.4 | -------------------------------------------------------------------------------- OTHER INFORMATION -------------------------------------------------------------------------------- | | 1.1.- | 1.1.- | 1.1.- | | | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | PERSONNEL | 1,092 | 971 | 985 | | Number of employees, average | | | | -------------------------------------------------------------------------------- | Number of employees, at the end of | 1,105 | 975 | 1,063 | | the period | | | | -------------------------------------------------------------------------------- | COMMITMENTS, EUR 1,000 | 31.3.2010 | 31.3.2009 | 31.12.2009 | -------------------------------------------------------------------------------- | Collateral for own commitments | | | | -------------------------------------------------------------------------------- | Corporate mortgages | 9,900 | 9,900 | 9,900 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Leasing and other rental | | | | | commitments | | | | -------------------------------------------------------------------------------- | Falling due within 1 year | 3,938 | 3,923 | 4,130 | -------------------------------------------------------------------------------- | Falling due within 1-5 years | 6,856 | 7,596 | 7,515 | -------------------------------------------------------------------------------- | Falling due after 5 years | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Total | 10,794 | 11,520 | 11,645 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Nominal value of interest rate swap | | | | | agreement | | | | -------------------------------------------------------------------------------- | Falling due within 1 year | 2,443 | 0 | 2,579 | -------------------------------------------------------------------------------- | Falling due within 1-5 years | 3,321 | 6,307 | 3,321 | -------------------------------------------------------------------------------- | Falling due after 5 years | | 0 | | -------------------------------------------------------------------------------- | Total | 5,764 | 6,307 | 5,900 | -------------------------------------------------------------------------------- | Fair value | -164 | -205 | -172 | -------------------------------------------------------------------------------- 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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