2017-02-09 08:00:02 CET
2017-02-09 08:00:02 CET
REGULATED INFORMATION
SSH Communications Security Oyj - Financial Statement Release
SSH COMMUNICATIONS SECURITY FINANCIAL CORPORATION STATEMENT RELEASE, JANUARY 1 – DECEMBER 31, 2016
Helsinki, Finland, 2017-02-09 08:00 CET (GLOBE NEWSWIRE) --
SUMMARY
October–December 2016: 4.6 % net sales decrease, losses due to investments in
sales and R&D activities, and to patent enforcement expenses and one-time
restructuring costs. Cash position remained good.
-- Net sales totaled EUR 4.1 million, decrease of
-4.6
% year on year (EUR 4.3 million in 10
–12
/2015).
-- Operating loss amounted to EUR
-4.6
million (EUR -1.3 million in 10
–12
/2015). Loss was EUR
-4.4
million (EUR -0.9 million)
-- Earnings per share EUR -0.13 (EUR -0.04).
January–December 2016: Overall net sales declined, but license sales grew
19.7%. Losses are due to continued investments to sales and R&D activities,
patent enforcement expenses, and a one-time reorganization charge. Cash flow
from operations was negative, but cash position remained good.
-- Net sales EUR
15.1
million, decrease by
-19.9
% compared to previous year (EUR 18.9 million in 1
–12
/2015).
-- Operating loss EUR
-10.8
million (EUR -4.4 million in 1
–12
/2015). Loss was EUR -11.1 million (EUR -3.9 million)
-- Earnings per share EUR -0.36 (EUR -0.15).
-- Cash flow from operations was EUR -8.1 million (EUR 0.3 million), total
cash flow was EUR -3.5 million (EUR 5.1 million).
Equity ratio remained good 63.1 % (66.8 %) and liquid assets were EUR 7.8
million (EUR 11.3 million).
KEY FIGURES
-----------------------------------------------------------------------------
10-12/ 10-12/ 1-12/ 1-12/ Change %
2016 2015 2016 2015
-----------------------------------------------------------------------------
-------------------------------------
-----------------------------------------------------------------------------
Net sales (MEUR) 4.1 4.3 15.1 18.9 -19.9
-----------------------------------------------------------------------------
Operating profit/loss (MEUR) -4.6 -1.3 -10.8 -4.4 -145.9
--------------------------------------------- ------------------------
% of net sales -113.7 -29.5 -71.1 -23.2 -206.8
-----------------------------------------------------------------------------
Profit/loss before taxes (MEUR) -4.4 -0.9 -11.0 -3.9 -185.8
-----------------------------------------------------------------------------
Profit/loss (MEUR) -4.4 -0.9 -11.1 -3.9 -182.7
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Return on equity, % -112.1 -40.4 -177.2
-----------------------------------------------------------------------------
Return on investment, % -111.8 -39.9 -180.3
-----------------------------------------------------------------------------
Liquid assets 7.8 11.3 -30.6
-----------------------------------------------------------------------------
Gearing (%) -94.8 -98.8 4.0
-----------------------------------------------------------------------------
Equity ratio (%) 63.1 66.8 -5.6
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Earnings Per Share (EUR) -0.13 -0.04 -0.36 -0.15 -137.7
-----------------------------------------------------------------------------
Shareholders' equity per share (EUR) 0.24 0.36 0.24 0.36 -34.4
-----------------------------------------------------------------------------
CEO REVIEW
Valued customers, partners, co-workers, and shareholders,
The year 2016 was a year of stark contrasts for SSH. Our license sales –
especially the sales of our new products – grew and we gained several new
Fortune 100 clients but, from a financial perspective, our performance was far
from satisfactory. We decreased our reliance on service sales as planned and we
started the shift from perpetual license sales to subscription-based sales,
which, while supporting long term growth, contributed to the decrease in
revenue compared to the previous period and to the loss we incurred.
We significantly improved our cash position with an 8 million euro share
emission in June. The emission was over-subscribed and led to two new
institutional investors becoming our shareholders. This is testament to the
faith the investors have in our success in the cyber security market.
We signed two significant multi-year subscription deals with leading global
companies during Q4. This is a welcome and healthy development even though it
means that we have to delay the revenue recognition of these agreements. The
subscription model creates stable long-term revenue that supports our growth
and help create long-term customer relationships. We expect this trend to
continue in 2017. In our transition towards subscription-based sales we believe
bookings growth is an even more important indicator of successfully executing
our strategy than the short-term growth of our revenue.
We suffered two setbacks in our patent litigation efforts. First instance court
decisions in both the UK and Germany went against us, leading to a delay in
realizing patent licensing income. We believe these decisions to be incorrect
and our outside counsel supports this view. We have proceeded to appeal both
decisions and expect new decisions in these cases during 2017. We also
otherwise continue our patent licensing program in full force.
I am very excited about the direction of our product development and the
expertise of our team. We continue to integrate our industry-leading products
into a unified platform which makes us an even more strategic vendor to our
customers. We are also working on some exciting new technologies and products
to help our customers in their accelerating digitalization drive and we will
make some interesting new product announcements in 2017.
During Q4 we worked hard to stem the losses and improve our competitiveness in
2017 and beyond. First, we completed a major reorganization and cost savings
program that makes us both operationally and financially stronger than before.
We also strengthened our executive management team: Chris Riley and Rami Raulas
bring extensive senior sales leadership experience to us and we believe they
will significantly improve our sales execution. The other members of the
management team, Tatu Ylönen, Markku Rossi, Kalle Jääskeläinen, Helena
Kukkonen, and Jussi Mononen also bring their expertise to support our future
success.
Personally, I am fully committed to my new position and will work relentlessly
with the management team to improve the execution capability of SSH. I believe
the changes we have already started and continuous development of our
operations will make us a strong and recognized player in the cyber security
segment. We are committed to remain a strong innovator in this industry.
Kaisa Olkkonen
CEO
NET SALES
Consolidated net sales for October–December totaled EUR 4.1 million (EUR 4.3
million), decrease by -4.6 %, year on year.
Consolidated net sales for January–December totaled EUR 15.1 million (EUR 18.9
million), decrease by -19.9 %, year on year. The decrease of revenue was the
result of several factors: decrease in service business, delayed sales due to
the challenging macroeconomic environment, and the starting transition from
perpetual license sales towards subscription sales. License sales grew 19.7%,
year on year. The same period in 2015 included an exceptionally large
consultancy deal.
The Americas; Europe, Middle East and Africa market area; and the Asia Pacific
region accounted for 53.9 % (62.1 %), 33.2 % (26.7 %) and 12.9 % (11.2 %) of
reported net sales, respectively.
SSH NET SALES
---------------------------------------------------------------------
EUR million 10-12/ 10-12/ 1-12/ 1-12/ Change %
2016 2015 2016 2015
---------------------------------------------------------------------
---------------------------------------------------------------------
BY SEGMENT
---------------------------------------------------------------------
AMERICAS 2.2 2.1 8.2 11.7 -30.3
---------------------------------------------------------------------
APAC 0.6 0.9 2.0 2.1 -7.7
---------------------------------------------------------------------
EMEA 1.3 1.3 5.0 5.0 -0.6
---------------------------------------------------------------------
SSH Group Total 4.1 4.3 15.1 18.9 -19.9
---------------------------------------------------------------------
---------------------------------------------------------------------
BY OPERATION
---------------------------------------------------------------------
Software fees 1.3 1.6 6.1 5.1 19.7
---------------------------------------------------------------------
Professional services & other 0.6 0.6 1.1 6.1 -81.9
---------------------------------------------------------------------
Recurring revenue 2.2 2.0 7.9 7.6 3.7
---------------------------------------------------------------------
Total 4.1 4.3 15.1 18.9 -19.9
---------------------------------------------------------------------
The majority of SSH Communications Security’s invoicing is U.S. dollar based.
During the reporting period, the U.S. dollar’s average exchange rate to euro
strengthened 0.2 %. With comparable exchange rates, net sales decline would
have been -20.0% compared to 2015.
RESULTS AND EXPENSES
Operating loss for October–December amounted to EUR -4.6 million (EUR -1.3
million), with net loss totaling EUR -4.4 million (EUR -0.9 million).
Operating loss for January–December amounted to EUR -10.8 million (EUR -4.4
million), with net loss totaling EUR -11.1 million (EUR -3.9 million).
Continued investments to sales and product development, delays in closing
sizeable deals, patent enforcement expenses, and one-time reorganization
charges influenced profitability. The company booked reorganization charges of
EUR 0.9 million during January–December 2016.
Sales, marketing and customer support expenses for the October–December
reporting period amounted EUR -3.8 million (EUR -3.3 million), while research
and development expenses totaled EUR -3.0 million (EUR -1.0 million) and
administrative expenses EUR -0.9 million (EUR -0.6 million).
Sales, marketing and customer support expenses for the January–December
reporting period amounted EUR -12.0 million (EUR -10.0 million), while research
and development expenses totaled EUR -9.5 million (EUR -5.1 million) and
administrative expenses EUR -2.4 million (EUR -1.6 million).
BALANCE SHEET AND FINANCIAL POSITION
The financial position of SSH Communications Security remained strong during
the reporting period. The consolidated balance sheet total on December 31, 2016
stood at EUR 21.8 million (EUR 21.8 million; December 31, 2015), of which
liquid assets accounted for EUR 7.8 million (EUR 11.3 million), or 35.9 % of
the balance sheet total.
During June, new shares in a directed share issue of EUR 8 million were issued.
On December 31, 2016, gearing, or the ratio of net liabilities to shareholders’
equity, was -94.8 % (-98.8 %) and the equity ratio stood at 63.1 % (66.8 %).
The reported gross capital expenditure for the period totaled EUR 2.5 million
(EUR 2.6 million). The reported financial income and expenses consisted mainly
of exchange rate gains or losses. Financial income and expenses totaled EUR
-0.3 million (EUR 0.5 million).
During January–December, SSH Communications Security reported negative cash
flow of EUR -8.1 million (EUR 0.3 million) from business operations, and
investments showed a negative cash flow of EUR -2.5 million (EUR -2.6 million).
Cash flow from financing totaled EUR 7.1 million (EUR 7.4 million). Total cash
flow from operations, investments and financing was negative EUR -3.5 million
(EUR 5.1 million).
There were no short-term investments by the end of the reporting period.
RESEARCH AND DEVELOPMENT
Research and development expenses for October–December totaled EUR -3.0 million
(EUR -1.0 million), the equivalent of 74.8 % of net sales (23.3 %). During
October–December company has capitalized R&D costs EUR 0.5 million (EUR 0.7
million).
Research and development expenses for January–December totaled EUR -9.5 million
(EUR -5.1 million), the equivalent of 62.5 % of net sales (26.9 %). During the
reporting period R&D cost capitalizations amounted to EUR 1.9 million (EUR 2.1
million). Depreciation from R&D capitalization assets was EUR -1.6 million (EUR
-1.2 million).
HUMAN RESOURCES AND ORGANIZATION
At the end of December, the Group had 84 employees on its payroll. The number
of employees decreased by 25 people from the previous year (-22.9 %), and by 31
persons from the previous quarter due to personnel reductions from the savings
program undertaken in Q4.
At the end of the period, 38.1 % (40.4 %) of the employees worked in sales,
marketing and customer services, 47.6 % (48.6 %) in R&D, and 14.3 % (11.0 %) in
corporate administration.
BOARD AND AUDITORS
At the Annual General Meeting on April 20, 2016, Kaisa Olkkonen and Harri
Koponen were elected and Timo Syrjälä, Tatu Ylönen and Jukka Manner were
re-elected as directors of the company. Kaisa Olkkonen was elected as the
Chairman of the Board of Directors in the board´s organizing meeting held after
the Annual General Meeting. As announced on December 30, 2016, Kaisa Olkkonen
resigned from the position of the Chairman and Jukka Manner was appointed as
the new Chairman of the Board of Directors.
The Authorized Public Accountants Ernst & Young Oy were elected as the auditor
of the company with Erkka Talvinko, authorized public accountant, as the
principal auditor.
SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE
The reported trading volume of SSH Communications Security Corporation shares
totaled 6,450,197 shares (valued at EUR 18,314,111). The highest quotation was
EUR 4.39 and the lowest EUR 1.86. The trade-weighted average share price for
the period was EUR 2.84 and the share closed at EUR 1.94 (December 30, 2016).
The company’s principal owner Tatu Ylönen holds directly and indirectly 52.3 %
of the company's shares; Timo Syrjälä holds directly and through companies
under his control 8.2 %; and Juha Mikkonen holds directly and through his
company under his control, Assetman Oy, 6.9 %. More information about the
shareholding can be obtained from the company´s web site.
As announced on June 1, 2016, SSH spun off its mobile authentication business.
No dividend or return of capital has been distributed during the reporting
period.
SHARE CAPITAL AND BOARD AUTHORIZATIONS
The company’s registered share capital on December 31, 2016 was EUR
1,036,824.99 consisting of 34,560,833 shares.
The Annual General Meeting approved the Board of Directors’ proposal to
authorize the Board of Directors to decide upon the issuing of a maximum of
6,000,000 shares as a share issue against payment or by giving stock options or
other special rights entitling to shares, in accordance with Chapter 10 Section
1 of the Finnish Limited Liability Companies Act, either according to the
shareholders’ pre-emptive right to share subscription or deviating from this
right, in one or more tranches. Based on the authorization, either new shares
can be issued or own shares, which the company possibly has in its possession,
can be transferred. Based on the authorization, the Board of Directors has the
same right as the Annual General Meeting to decide on the issuing of shares
against payment and special rights (including stock options) in accordance with
Chapter 10 Section 1 of the Finnish Limited Liability Companies Act. Thereby,
the authorization to be given to the Board of Directors includes, inter alia,
the right to deviate from the shareholders’ pre-emptive rights with directed
issues providing that the company has a weighty financial reason for the
deviation in respect of the share issue against payment.
Furthermore, the authorization includes the Board of Directors’ right to decide
who are entitled to the shares and/or stock options or special rights in
accordance with Chapter 10 Section 1 of the Finnish Limited Liability Companies
Act as well as on the related compensation, subscription and payment periods
and on the registering of the subscription price into the share capital or
invested non-restricted equity fund within the limits of the Finnish Limited
Liability Companies Act.
The authorization will be valid until the next Annual General Meeting, but will
however expire at the latest on June 30th 2017. As announced on May 27th 2016,
the Board of Directors decided upon an option plan of maximum 400,000 options.
As announced on June 20th 2016, a directed share issue of 2,950,000 shares was
issued.
The Annual General Meeting approved the Board of Directors’ proposal to
authorize the Board of Directors to decide upon the acquiring of a maximum of
2,000,000 shares of the company with assets belonging to the company’s
non-restricted equity. The shares can also be acquired otherwise than in
proportion to the holdings of the existing shareholders (directed acquisition).
The maximum compensation to be paid for the acquired shares shall be the market
price at the time of purchase, which is determined in the public trading.
The Board of Directors proposes that the authorization for the acquiring of the
company’s own shares would be used, inter alia, to strengthen the company's
capital structure, to finance and realize corporate acquisitions and other
arrangements, to realize the share-based incentive programs of the company or
otherwise to be kept by the company, to be transferred for other purposes, or
to be cancelled. The acquisition of shares reduces the company’s distributable
non-restricted equity.
Decision concerning the acquiring of own shares cannot be made so that the
combined amount of the own shares which are in the possession of, or held as
pledges by, the company or its subsidiaries exceeds one-tenth of all shares.
The Board of Directors decides on all other matters related to the acquisition
of shares.
The authorization will be valid until the next Annual General Meeting, but will
however expire at the latest on June 30th 2017.
DIVIDEND AND OTHER DISTRIBUTION OF ASSETS
The SSH Communications Security's Board of Directors will propose to the Annual
General Meeting on March 29th, 2017 that no dividend or return of capital shall
be distributed. It is proposed that the loss of the financial year shall be
entered to the shareholders’ equity in the profit/loss account.
RISKS AND UNCERTAINTIES
Most significant risks that might impact the profitability of the company have
remained by and large the same as in previous reporting period and are listed
below. Other risks, which are currently either unknown or considered immaterial
to SSH Communications Security may, however, become material in the future.
Largest risks:
- continuing uncertainty of the macroeconomic environment
- cybercrime, including e.g. ransomware
- delays in product development and closing new business
- maintaining our ability to innovate and develop our product portfolio
including intellectual property rights (IPR)
- IPR litigation and the utilization of our patent portfolio
- ability retain and recruit key personnel
- ability to execute our strategy
- large portion of the company revenue is invoiced in USD currency so possible
large fluctuation in USD currency rates during 2017 could have unpredictable
effects for profitability that are at the time difficult to estimate. The
company decides on hedging of USD based contracts case by case.
Principles and organization of risk management of SSH Communications Security
can be read from company´s webpage: www.ssh.com.
RELATED PARTY TRANSACTIONS
Clausal Computing Oy, a company wholly owned by SSH Communications Security’s
majority owner and board member Tatu Ylönen, has delivered the company mainly
R&D services valued in total EUR 0.5 million during January–December 2016. Tatu
Ylönen subscribed for 489,200 shares and Member of Board Timo Syrjälä through
his company 733,900 shares from the directed share issue issued by the company
on June 20th 2016. During the reporting period, there have not been any other
significant transactions with related parties.
EVENTS AFTER THE BALANCE SHEET DATE
LL.M. Kaisa Olkkonen was appointed Chief Executive Officer of the company
starting January 1, 2017.
The SSH Communications Security management is not aware of any other
significant transactions after the reporting period.
REPORTING
This financial statement release is prepared according to IAS 34. Financial
statement release follows the same principles and standards as the previous
financial statement release. Additionally, the effective changes in IAS/IFRS
standards during the reporting period have been adopted. These changes have no
material impact on the interim report. Effects of the changes in the standards
are presented in the Annual Report. The information presented in this financial
statement release has not been audited.
TABLES
COMPREHENSIVE INCOME STATEMENT
--------------------------------------------------------------------------------
EUR million 10-12/ 10-12/ 1-12/ 1-12/
2016 2015 2016 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 4.1 4.3 15.1 18.9
--------------------------------------------------------------------------------
Cost of goods sold -0.9 -0.6 -1.9 -6.5
--------------------------------------------------------------------------------
Gross profit 3.1 3.7 13.2 12.4
--------------------------------------------------------------------------------
Other operating income 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sales, marketing and customer support costs -3.8 -3.3 -12.0 -10.0
--------------------------------------------------------------------------------
Product development expenses -3.0 -1.0 -9.5 -5.1
--------------------------------------------------------------------------------
Administrative expenses -0.9 -0.6 -2.4 -1.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss -4.6 -1.3 -10.8 -4.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income and expenses 0.2 0.3 -0.3 0.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss before taxes -4.4 -0.9 -11.0 -3.9
--------------------------------------------------------------------------------
Taxes -0.0 -0.0 -0.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net profit/loss for the financial period -4.4 -0.9 -11.1 -3.9
--------------------------------------------------------------------------------
Non-controlling interest 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Other profit and loss account items:
--------------------------------------------------------------------------------
Items which might be later transferred to P/L
statement
--------------------------------------------------------------------------------
--------------------------------------------------------------------------
Foreign subsidiary translation differences 0.7 -0.1 0.4 -0.4
--------------------------------------------------------------------------------
Net change in fair value of available-for-sale
financial assets
--------------------------------------------------- ---------------------
0.0 0.0 0.0 0.0
--------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income -3.6 -1.0 -10.6 -4.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
------------------------------------------------------------------------------
Net profit/loss attributable to:
--------------------------------------------------------------------------------
Owners of the Company -3.6 -1.0 -10.6 -4.3
--------------------------------------------------------------------------------
Non-controlling interest 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EARNINGS PER SHARE
--------------------------------------------------------------------------------
Earnings per share (EUR) -0.13 -0.04 -0.36 -0.15
--------------------------------------------------------------------------------
Earnings per share diluted (EUR) -0.13 -0.04 -0.36 -0.15
--------------------------------------------------------------------------------
BALANCE SHEET
--------------------------------------------------------------------------------
EUR million
--------------------------------------------------------------------------------
31.12.2016 31.12.2015
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Tangible assets 0.2 0.3
--------------------------------------------------------------------------------
Intangible assets 5.2 4.6
--------------------------------------------------------------------------------
Investments 0.0 0.0
--------------------------------------------------------------------------------
Total non-current assets 5.5 4.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Trade and other receivables 8.5 5.5
--------------------------------------------------------------------------------
Short-term financial assets 0.0 0.0
--------------------------------------------------------------------------------
Cash and cash equivalents 7.8 11.3
--------------------------------------------------------------------------------
Total current assets 16.4 16.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 21.8 21.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity
--------------------------------------------------------------------------------
Equity attributable to the parent company 8.3 11.4
shareholders
total
--------------------------------------------------------------------------------
---------------------------------------------------------------------
Non-controlling interest 0.0 0.0
--------------------------------------------------------------------------------
Shareholders' equity total 8.3 11.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------------------------
Provisions 0.0 0.0
--------------------------------------------------------------------------------
Non-current interest-bearing liabilities 0.0 0.0
--------------------------------------------------------------------------------
Total long-term liabilities 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current liabilities 13.6 10.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities total 13.6 10.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity and liabilities 21.8 21.8
--------------------------------------------------------------------------------
CASH FLOW STATEMENT
-----------------------------------------------------------
EUR million 1-12/2016 1-12/2015
-----------------------------------------------------------
-----------------------------------------------------------
Cash flow from business operations -8.1 0.3
-----------------------------------------------------------
Cash flow from investments -2.5 -2.6
-----------------------------------------------------------
Cash flow from financing 7.1 7.4
-----------------------------------------------------------
-----------------------------------------------------------
Increase(+) / decrease(-) in cash -3.5 5.1
-----------------------------------------------------------
-----------------------------------------------------------
Cash at period start 11.3 6.1
-----------------------------------------------------------
Effect of exchange rate 0.1 0.1
-----------------------------------------------------------
Cash at period end 7.8 11.3
-----------------------------------------------------------
STATEMENT ON
CHANGES IN
SHAREHOLDERS'
EQUITY
--------------------------------------------------------------------------------
EUR Share Fair Hybrid Translatio Unrestricted equity Total
million capita value capital n funds and retained
l reserves securities difference earnings
s
--------------------------------------------------------------------------------
Sharehold 0.9 0.0 4.0 -1.7 4.7 7.9
ers'
equity
Jan 1,
2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change 0.0 8.0 -0.1 7.9
--------------------------------------------------------------------------------
Net -0.4 -3.9 -4.3
profit
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sharehold 0.9 0.0 12.0 -2.1 0.6 11.4
ers'
equity
Dec 31,
2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change 0.1 7.4 7.5
--------------------------------------------------------------------------------
Net 0.4 -11.1 -10.6
profit
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sharehold 1.0 0.0 12.0 -1.7 -3.1 8.3
ers'
equity
Dec 31,
2016
--------------------------------------------------------------------------------
KEY FIGURES AND RATIOS
--------------------------------------------------------------------------------
EUR million 1-12/ 1-12/
2016 2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 15.1 18.9
--------------------------------------------------------------------------------
Operating profit/loss -10.8 -4.4
--------------------------------------------------------------------------------
Operating profit/loss as % of net sales -71.1 -23.2
--------------------------------------------------------------------------------
Profit/loss before items affecting comparability -11.0 -3.9
--------------------------------------------------------------------------------
Profit/loss before items affecting comparability as % of net -72.9 -20.4
sales
--------------------------------------------------------------------------------
Profit/loss before taxes -11.0 -3.9
--------------------------------------------------------------------------------
Profit/loss before taxes as % of net sales -72.9 -20.4
--------------------------------------------------------------------------------
Return on equity (%) -112.1 -40.4
--------------------------------------------------------------------------------
Return on investment (%) -111.8 -39.9
--------------------------------------------------------------------------------
Interest-bearing net liabilities -7.8 -11.3
--------------------------------------------------------------------------------
Equity ratio (%) 63.1 66.8
--------------------------------------------------------------------------------
Gearing (%) -94.8 -98.8
--------------------------------------------------------------------------------
Gross capital expenditure 2.5 2.6
--------------------------------------------------------------------------------
% of net sales 16.2 13.7
--------------------------------------------------------------------------------
R&D expenses 9.5 5.1
--------------------------------------------------------------------------------
% of net sales 62.5 26.9
--------------------------------------------------------------------------------
Personnel, period average 111 102
--------------------------------------------------------------------------------
Personnel, period end 84 109
--------------------------------------------------------------------------------
Calculation for key figures and ratios are presented in 2015 financial
statement and annual report. There have been no changes in calculation rules.
PER SHARE DATA
--------------------------------------------------------------
EUR 1-12/ 1-12/
2016 2015
--------------------------------------------------------------
--------------------------------------------------------------
Earnings per share undiluted* -0.36 -0.15
--------------------------------------------------------------
Earnings per share diluted* -0.36 -0.15
--------------------------------------------------------------
Equity per share 0.24 0.36
--------------------------------------------------------------
No. of shares at period average (thousands) 32,983 31,068
--------------------------------------------------------------
No. of shares at period end (thousands) 34,561 31,370
--------------------------------------------------------------
Share performance
--------------------------------------------------------------
Average price 2.84 4.50
--------------------------------------------------------------
Low 1.86 2.52
--------------------------------------------------------------
High 4.39 6.32
--------------------------------------------------------------
Share price period end 1.94 3.02
--------------------------------------------------------------
Market capitalization period end (EUR million) 67.0 94.7
--------------------------------------------------------------
Volume of shares traded (million) 6.5 8.4
--------------------------------------------------------------
Volume of shares traded as % of total 19.6 27.0
--------------------------------------------------------------
Value of shares traded (EUR million) 18.3 37.7
--------------------------------------------------------------
Price per earnings ratio (P/E) neg. neg.
--------------------------------------------------------------
Dividend per share 0.00 0.00
--------------------------------------------------------------
Dividend per earnings, % 0.00 0.00
--------------------------------------------------------------
Effective return on dividend, % 0.00 0.00
--------------------------------------------------------------
* earnings per share is impacted by unpaid interest of hybrid capital securities
CONTINGENT LIABILITIES
---------------------------------------------------------------------
EUR million 31.12.2016 31.12.2015
---------------------------------------------------------------------
---------------------------------------------------------------------
Hybrid Loan, Interest 0.7 0.7
---------------------------------------------------------------------
---------------------------------------------------------------------
Rent security deposits 0.1 0.1
---------------------------------------------------------------------
Leasing commitments outside the balance sheet
---------------------------------------------------------------------
Maturing within 1 year 0.5 0.5
---------------------------------------------------------------------
Maturing between 1 and 5 years 0.4 0.5
---------------------------------------------------------------------
DISCLAIMER
The content in this report is provided by SSH Communications Security
Corporation ("SSH") and its third-party content providers for your personal
information only and does not constitute an offer or invitation to purchase any
securities. Nor does it provide any form of advice (investment, tax, or legal)
amounting to investment advice, or make any recommendations regarding
particular investments or products. SSH does not provide investment advice or
recommendations to buy or sell its shares or the shares of others. If you are
interested in investing in SSH, please contact your financial adviser for
further details and information. Past performance of SSH shares is not
indicative of future results. EXCEPT AS PROVIDED BY APPLICABLE COMPULSORY LAW
SSH EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED. AS TO THE
AVAILABILITY, ACCURACY OR RELIABILITY OF ANY OF THE CONTENT PROVIDED, OR AS TO
THE FITNESS OF THE INFORMATION FOR ANY PURPOSE.
SSH Communications Security Corporation will release its interim report of the
first quarter of the year in April 20th, 2017.
Helsinki, February 9th, 2017
SSH COMMUNICATIONS SECURITY CORPORATION
Board of Directors
Kaisa Olkkonen
CEO
For further information, please contact:
Kaisa Olkkonen, CEO. tel. +358 40 579 5216
Helena Kukkonen, CFO, tel. +358 40 835 3440
Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.ssh.com
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