2011-10-26 07:30:00 CEST

2011-10-26 07:30:13 CEST


REGULATED INFORMATION

Finnish English
Tecnomen Lifetree Oyj - Interim report (Q1 and Q3)

Tecnotree Corporation Interim Report 1 January - 30 September 2011 (unaudited) 


Tecnotree Corporation
Stock Exchange Release
26 October 2011 at 8.30 am

Positive profit performance continues

Disclosure Procedure

Tecnotree Corporation follows the disclosure procedure enabled by Standard 5.2b
published by the Finnish Financial Supervision Authority and hereby publishes
its interim report January-September 2011 enclosed to this stock exchange
release. Tecnotree's interim report January-September 2011 is attached to this
release in pdf format and is also available on the company's web site at
www.tecnotree.com. 



  -- Third quarter net sales totalled EUR 17.2 million (EUR 13.3 million in the
     previous year).
  -- The adjusted operating profit* was EUR 1.9 (-0.7) million. 
  -- Net sales for the full nine-month period were EUR 46.2 (46.7) million and
     the adjusted operating profit was EUR 0.3 (0.7) million.
  -- The order book at the end of the period stood at EUR 21.0 million (31
     December 2010: EUR 14.3 million).

KEY FIGURES                         7-9/201  7-9/201  1-9/201  1-9/201  1-12/201
                                          1        0        1        0         0
Net sales, MEUR                        17.2     13.3     46.2     46.7      60.7
Adjusted operating result, MEUR*        1.9     -0.7      0.3      0.7      -2.5
Operating result, MEUR                  0.1     -2.0     -7.6     -3.2      -8.1
Result before taxes, MEUR               0.5     -1.8     -6.7     -4.3      -9.4
Result for the period, MEUR             0.9     -2.1     -8.1     -5.7     -11.0
Earnings per share, basic, EUR         0.01    -0.03    -0.11    -0.08     -0.15
Order book, MEUR                                         21.0     20.1      14.3
Cash flow after investments, MEUR      -2.5     -7.1    -14.6    -11.1     -10.6
Change in cash and cash                -2.5     -7.1     -8.8    -12.2      -9.8
 equivalents, MEUR                                                              
Cash and cash equivalents, MEUR                           7.8     14.1      16.7
Equity ratio %                                           56.6     68.8      66.4
Net gearing %                                            28.9      3.1       3.3
Personnel at end of period                                958      830       858



* Adjusted operating result = operating result before R & D capitalisation,
amortization of this and one-time costs. Details of these are given in the
section “Result analysis”. 

Unless otherwise stated, all figures presented below are for the review period
1-9/2011 and the figures for comparison are for the corresponding period
1-9/2010. 

President and CEO Kaj Hagros:

“Net sales in the first nine months of 2011 totalled EUR 46.2 million, which is
virtually the same as in the same period in the previous year (EUR 46.7
million). However, third quarter net sales were 29% higher than in the
corresponding period in 2010. After a weak first quarter in 2011, the second
and third quarters were both improved periods and resulted positive adjusted
result. Sales in Latin America, Middle East and Africa, and Europe were similar
to that recorded in 2010, but the Asia and Pacific region produced a weaker
result. Since the end of the third quarter the company has reorganized, with
the aim of increasing productivity and profitability and providing higher
quality customer service in 2012. The order book has recovered since the end of
2010. The strained economic situation has so far not had a noticeable impact on
operators' investment plans, which are critical for Tecnotree. Net sales and
the adjusted operating result for 2011 are estimated to be at the same level as
in 2010 or better than this.” 

Prospects in 2011

The company is currently carrying out its strategy based on an expanded product
range. Tecnotree is turning into an advanced supplier of telecommunications
system solutions, operating in a broad sector. The company is anticipating new
growth based on the new range of products and solutions that it announced on 14
February 2011. 

Net sales and the adjusted operating result are expected to match or exceed the
2010 figures. Quarterly variations will be considerable. 

The adjusted operating result is the operating result before capitalisation of
development costs, amortization of these and one-time costs. 

Financial information

Tecnotree is holding a conference for analysts and the media to announce its
results for the third quarter of 2011 at 10.00 am on 26 October 2011 in the
Pavilion conference room at the Scandic Hotel Simonkenttä, Simonkatu 9,
Helsinki. The interim review will be presented by CEO Kaj Hagros and the
conference will be held in Finnish. The material to be presented at the press
conference will be available at www.tecnotree.com. 


TECNOTREE CORPORATION

Board of Directors


FURTHER INFORMATION
Kaj Hagros, President and CEO, tel. +358 40 849 1749
Tuomas Wegelius, CFO, tel. +358 400 433 228


DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main media
www.tecnotree.com

About Tecnotree
Tecnotree is a global provider of a broad range of telecom IT solutions focused
on charging, billing, customer care, messaging and content services. Tecnotree
empowers communication service providers to create and monetize a broad
marketplace of digital services, and augment value across the customer
lifecycle. Acknowledged for agility and commitment, Tecnotree has more than 900
employees serving over 120 operators globally. Tecnotree is listed on the main
list of NASDAQ OMX Helsinki Ltd. with the trading code TEM1V. For more
information on Tecnotree visit www.tecnotree.com .