Tectia Oyj - Company Announcement

TECTIA CORPORATION ESTIMATES ITS FULL YEAR 2011 NET SALES TO DECREASE

Helsinki, Finland, 2011-10-19 07:50 CEST (GLOBE NEWSWIRE) -- TECTIA CORPORATION
           COMPANY ANNOUNCEMENT OCTOBER 19, 2011 AT 8:50 A.M 


TECTIA CORPORATION ESTIMATES ITS FULL YEAR 2011 NET SALES TO DECREASE

For the fiscal year 2011, Tectia estimates its net sales to decrease from 2010.
Full year 2011 net result is expected to be negative. 

Earlier for the fiscal year 2011, Tectia estimated its net sales to grow from
2010 and expected the net result to be negative. 

The company´s net sales activity in North America did not progress as expected
by the end of September. Furthermore approvals of investment decisions have
been delayed especially by customers in the North American market. Also, net
sales of the Mobile Authentication business were behind previous estimates due
to delay in the business ramp up. It is assessed that these factors combined
will hinder the development of net sales during the last quarter and the whole
year 2011 compared to previous estimates. The globally poor economic visibility
complicates the estimation of the last quarter. 

Global audit firm valuation experts have provided the company with a valuation
estimate for some of its patents and patent applications, according to which
the fair market value of these would be approximately EUR 1 million. These
patents were developed for the company´s IPSec-technology related products and
are not used in current products. New applications have emerged for
technologies described and claimed in the patents, e.g. VoIP (Voice-over-IP)
and 3GPP LTE (Long Term Extension, or 4G) networks and smart phones. It is
possible that the most important of the patent applications will be granted and
that they will be essential for some of the standards in the area. It is also
possible that the actual future sale price or other income from them would be
substantially higher than the estimated value. The potential income will,
however, most likely not be realized for several quarters and no asset from
these patents has been booked in the balance sheet. 


Helsinki, October 19th 2011

TECTIA CORPORATION

Board of Directors


Tatu Ylönen
CEO


For further information, please contact:
Tatu Ylönen, CEO. tel. +358 20 500 7000
Mikko Karvinen, CFO, Deputy Managing Director. tel. +358 50 326 4101

Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.tectia.com