2014-07-23 10:15:00 CEST
2014-07-23 10:15:02 CEST
REGULATED INFORMATION
SSH Communications Security Oyj - Interim report (Q1 and Q3)
SSH COMMUNICATIONS SECURITY CORPORATION FINANCIAL STATEMENT RELEASE, JANUARY 1 – JUNE 30, 2014
Helsinki, Finland, 2014-07-23 10:15 CEST (GLOBE NEWSWIRE) --
SSH COMMUNICATIONS SECURITY CORPORATION FINANCIAL STATEMENT RELEASE
July 23, 2014 AT 11:15 A.M
SSH COMMUNICATIONS SECURITY CORPORATION FINANCIAL STATEMENT RELEASE, JANUARY 1
- JUNE 30, 2014
April-June 2014: 5% net sales growth, losses due to timing of sizeable deals
and investments to future growth. Cash flow negative but cash position remained
strong.
- Net sales totaled EUR 3.4 million, up by 4.5 % year on year (EUR 3.3 million
in 4-6/2013).
- Operating loss was EUR -0.6 million (EUR -0.1 million in 4-6/2013) including
EUR 0.0 million non-recurring costs (EUR 0.0 million). Loss was EUR -0.6
million (EUR -0.1 million)
- Earnings per share EUR -0.02 (EUR -0.01).
January-June 2014: Slight net sales growth, losses due to timing of sizeable
deals and investments to future growth. Cash flow negative but cash position
remained strong.
- Net sales totaled EUR 6.3 million, up by 1.6 % year on year (EUR 6.2 million
in 1-6/2013).
- Operating loss was to EUR -1.5 million (EUR -0.0 million in 1-6/2013)
including EUR 0.0 of non-recurring costs (EUR 0.0 million). Loss was EUR -1.5
million (EUR -0.0 million)
- Earnings per share EUR -0.05 (EUR -0.00).
In 2014, SSH Communications Security estimates its revenue to grow
significantly and profitability to improve from 2013.
KEY FIGURES
--------------------------------------------------------------------------------
4-6/ 4-6/ 1-6/ 1-6/ Change % 1-12/
2014 2013 2014 2013 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales (MEUR) 3.4 3.3 6.3 6.2 1.6 13.3
--------------------------------------------------------------------------------
Operating profit/loss (MEUR) -0.6 -0.1 -1.5 -0.0 -8 227.5 0.2
--------------------------------------------------------------------------------
% of net sales -17.3 -2.2 -23.7 -0.3 -8 094.4 1.3
--------------------------------------------------------------------------------
Profit/loss before taxes (MEUR) -0.6 -0.1 -1.5 -0.0 -5 832.3 0.2
--------------------------------------------------------------------------------
Profit/loss (MEUR) -0.6 -0.1 -1.5 -0.0 -3 496.0 0.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Return on equity, % -23.1 -7.2 -220.2 2.2
--------------------------------------------------------------------------------
Return on investment, % -22.1 -4.7 -369.6 1.9
--------------------------------------------------------------------------------
Liquid assets 4.6 6.7 -31.4 6.0
--------------------------------------------------------------------------------
Gearing (%) -77.4 -88.4 12.5 -80.1
--------------------------------------------------------------------------------
Equity ratio (%) 68.8 79.3 -13.2 76.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings Per Share (EUR) -0.02 -0.01 -0.06 -0.00 -3 495.8 -0.00
--------------------------------------------------------------------------------
Shareholders' equity per share 0.19 0.20 0.19 0.20 -3.3 0.24
(EUR)
--------------------------------------------------------------------------------
CEO'S REVIEW
The first half of 2014 finished in line with previous set expectations as we
continued to invest the development of our operations, product development and
key customer acquisitions. Major cases continue to move well down the pipeline
and we expect to see more significant deals closing in Q3 and Q4.
With the continuous and increasing number and flow of publicized cybersecurity
breaches, our technology continues to receive reaffirmation of its relevance in
both the commercial and government sectors as our pipeline develops at a
healthy rate. An important win in Q2 was successfully helping one our largest
Universal SSH Key Manager customers to close an audit point which had been
outstanding since 2009. Additional successful deliveries of our CryptoAuditor
technology have now permitted us to successfully penetrate and deploy reference
cases in each region of the globe.
A major trend evolving is the quick proactive movements of governments to
reassess, confirm and ensure the confidentiality and security of their
encrypted networks. SSH as a trusted encryption provider is ideally positioned
to capitalize on this development and has seen multiple inquiries for
assistance over the last several months.
We will be releasing an SSH Risk Assessment Snapshot Service in Q3 which will
provide customers a quick and easy method to determine previously unidentified
risks around user access into critical infrastructure. It will serve as an
additional method for SSH to build closer customer intimacy and differentiated
market leadership in the space.
Progress is also being made with our intellectual property and the first
engagements have now been opened for potential licensing opportunities. These
are expected to contribute significantly to our company's revenue growth over
the coming years.
Despite the risk of longer than desirable sales cycles typical with larger
enterprise customers, the outlook for the remainder of the year continues to
progress favorably.
Tatu Ylönen
CEO
NET SALES
Consolidated net sales for April-June totaled EUR 3.4 million (EUR 3.3
million), up by 4.5 %, year on year.
Consolidated net sales for January-June totaled EUR 6.3 million (EUR 6.2
million), up by 1.6 %, year on year. Sales growth was weak due to small amount
of new licence deals. Complexity of customer needs and long sales cycles with
big corporations impacted license sales growth.
The Americas, the Europe, Middle East and Africa (EMEA) market area and the
Asia Pacific region accounted for 55.8% (42.9%), 30.5% (45.6%) and 13.7%
(11.5%) of reported net sales, respectively. The change of geographical focus
of a significant customer project impacts the changes between relative share of
net sales between regions.
SSH NET SALES
--------------------------------------------------------
EUR million 4-6/ 4-6/ 1-6/ 1-6/ Change % 1-12/
2014 2013 2014 2013 2013
--------------------------------------------------------
--------------------------------------------------------BY SEGMENT
--------------------------------------------------------
AMERICAS 2.3 1.4 3.5 2.7 32.2 5.3
--------------------------------------------------------
APAC 0.5 0.3 0.9 0.7 21.9 1.5
--------------------------------------------------------
EMEA 0.6 1.6 1.9 2.8 -32.2 6.6
--------------------------------------------------------
SSH Group Total 3.4 3.3 6.3 6.2 1.6 13.3
--------------------------------------------------------
--------------------------------------------------------
BY OPERATION
--------------------------------------------------------
License sales 1.0 1.0 1.7 2.0 -17.1 4.6
--------------------------------------------------------
Consulting 0.8 0.8 1.6 1.4 16.2 3.0
--------------------------------------------------------
Maintenance 1.6 1.4 3.0 2.8 8.0 5.6
--------------------------------------------------------
Total 3.4 3.3 6.3 6.2 1.6 13.3
--------------------------------------------------------
The majority of SSH Communications Security's invoicing is U.S. dollar based.
During the report period, the U.S. dollar's average exchange rate to euro
weakened approximately -2.8% compared to the same period a year ago. With
comparable exchange rates 2014 net sales growth would have been +3.3% compared
with 2013 corresponding period.
RESULTS AND EXPENSES
Operating loss for April-June was EUR -0.6 million (EUR -0.1 million), with
loss totaling EUR -0.6 million (EUR -0.1 million).
Operating loss for January-June was -1.5 million (EUR -0.0 million), with loss
totaling EUR -1.5 million (EUR -0.0 million). Profitability was influenced by
higher share of service sales in addition to investments to sales and product
development and delays of closing sizeable deals.
There were no non-recurring items during January-June.
Sales, marketing and customer support expenses for the April-June reporting
period amounted EUR -2.0 million (EUR -1.8 million), while research and
development expenses totaled EUR -1.1 million (EUR -0.8 million) and
administrative expenses EUR -0.2 million (EUR -0.4 million).
Sales, marketing and customer support expenses for the January-June reporting
period amounted EUR -3.7 million (EUR -3.3 million), while research and
development expenses totaled EUR -2.0 million (EUR -1.5 million) and
administrative expenses EUR -0.7 million (EUR -0.7 million).
BALANCE SHEET AND FINANCIAL POSITION
The financial position of SSH Communications Security remained in good level
during the reporting period. The consolidated balance sheet total on June 30,
2014 stood at EUR 12.0 million (June 30, 2013 EUR 14.0 million; December 31,
2013 EUR 13.5 million), of which liquid assets accounted for EUR 4.6 million
(June 30, 2013 EUR 6.7 million; December 31, 2013 EUR 6.0 million), or 38.1 %
of the balance sheet total. On June 30, 2014, gearing, or the ratio of net
liabilities to shareholders' equity, was -77.4% (June 30, 2013 -88.4%; December
31, 2013 -80.1%) and the equity ratio stood at 68.8% (June 30, 2013 79.3%;
December 31, 2013 76.6%).
The reported gross capital expenditure for the period totalled EUR 0.9 million
(EUR 0.9 million). The reported financial income and expenses consisted mainly
of interest on deposits and exchange rate gains or losses. Financial income and
expenses totalled EUR 0.0 million (EUR -0.0 million).
During January-June, SSH Communications Security reported a negative cash flow
of EUR -0.4 million (EUR 0.1 million) from business operations, and investments
showed a negative cash flow of EUR -0.9 million (EUR -0.9 million). Cash flow
from financing totaled EUR -0.0 million (EUR -1.2 million). Total cash flow
from operations, investments and financing was negative EUR -1.3 million (EUR
-2.0 million).
Fair value of short term investment is determined from quoted prices available
from markets. Financial investment belongs to level 1 according to IFRS 7.
Market value of financial investment was EUR 2.0 million and nominal value EUR
2.0 million.
RESEARCH AND DEVELOPMENT
Research and development expenses for April-June totaled EUR -1.1 million (EUR
-0.8 million), the equivalent of 32.1 percent of net sales (24.7 percent).
During April-June company has capitalized R&D costs EUR 0.4 million (EUR 0.3
million).
Research and development expenses for January-June totaled EUR -2.0 million
(EUR -1.5 million), the equivalent of 31.7 percent of net sales (23.9 percent).
In reporting period R&D cost capitalizations amount to EUR 0.8 million (EUR 0.8
million).
HUMAN RESOURCES AND ORGANIZATION
At the end of June, the Group had 99 employees on its payroll. The number of
employees increased by 13 persons from the previous year (+15%) and decreased
by 2 persons from the previous quarter.
At the end of the period, 39% of the employees worked in sales, marketing and
customer services, 49% in R&D, and 12% in corporate administration.
BOARD AND AUDITORS
At the Annual General Meeting, March 20, 2014 Timo Syrjälä was elected and
Päivi Hautamäki and Tatu Ylönen were re-elected to directors of the company.
Timo Syrjälä was elected as the Chairman of the Board of Directors in the
board´s organizing meeting.
The Authorized Public Accountants KPMG Oy Ab was re-elected as the auditor of
the company with Kirsi Jantunen, KHT, as the accountant with the main
responsibility.
SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE
The reported trading volume of SSH Communications Security shares totaled
1,932,205 shares (valued at EUR 5,884,613). The highest quotation was EUR 3.74
and the lowest EUR 2.71. The trade-weighted average share price for the period
was EUR 3.05 and the share closed at EUR 2.78 (June 30, 2014).
Company's principal owner Tatu Ylönen holds directly and through his company,
Clausal Computing Oy, 57.7% of the company's shares, Assetman Oy holds 10.4%
and Timo Syrjälä directly and through companies under his control Maijos Oy,
Ekobrokers Oy and Timo Syrjälä & co 5.0%. More information about the
shareholding can be obtained from the company´s web site.
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 June 30, 2014 was EUR 924,753.99
consisting of 30,825,133 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 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, it can be either issuing of new
shares or transfer of own shares which the company possibly has in its
possession. Based on the authorization, the Board of Directors shall have the
same rights as the Annual General Meeting to decide upon the issuing of shares
against payment and special rights (including stock options) in accordance with
Chapter 10 Section 1 of the Finnish 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
upon who are entitled to the shares and/or stock options or special rights in
accordance with Chapter 10 Section 1 of the Finnish Companies Act as well as
upon the related compensation, subscription and payment periods and upon the
registering of the subscription price into the share capital or invested
non-restricted equity fund within the limits of the Finnish Companies Act.
The authorization will be valid until the next Annual General Meeting, but will
however expire at the latest on June 30th 2015.
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 own shares of the company with assets belonging to the company's
non-restricted equity. This amount corresponds approximately to 6.50% of all
the shares of the company. The shares can also be acquired otherwise than in
proportion to the holdings of the existing shareholders (targeted repurchase).
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 proposed that the authorization for the acquiring of the
company's own shares would be used, inter alia, in order 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 shall decide upon 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 2015.
RISKS AND UNCERTAINTIES
Largest risks that might impact the profitability of the company have remained
by and large the same than 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
- delays on product development and closing new business
- competitiveness of the product portfolio including intellectual property (IPR)
- litigation, especially in U.S. market
- competitive dynamics in the industry
- ability of the organization to scale up operations with the growth
- large portion of the company revenue is invoiced in USD currency so possible
large fluctuation in USD currency rates during 2013 could have unpredictable
effects for profitability that are at the time difficult to estimate. Currently
USD currency position is not hedged, and company decides 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.
FUTURE OUTLOOK
In 2014, SSH Communications Security estimates its revenue to grow
significantly and profitability to improve from 2013.
RELATED PARTY TRANSACTIONS
Clausal Computing Oy, a fully owned company of SSH Communications Security's
CEO Tatu Ylönen, has delivered the company mainly R&D services valued in total
EUR 0.2 million during January-June 2014. During the reporting period there
have not been any other significant related parties. Hybrid capital securities
(EUR 4.0 million) of the company was subscribed by CEO Tatu Ylönen in 2012.
EVENTS AFTER THE BALANCE SHEET DATE
The SSH Communications Security´s management is not aware of any transactions
that happened 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 reporting period have been adopted. These changes have no
material impact on the interim report. The information presented in this
interim report has not been audited.
TABLES
SHORT COMPREHENSIVE INCOME STATEMENT
--------------------------------------------------------------------------------
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2014 2013 2014 2013 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 3.4 3.3 6.3 6.2 13.3
--------------------------------------------------------------------------------
Cost of goods sold -0.7 -0.5 -1.3 -0.9 -1.9
--------------------------------------------------------------------------------
Gross profit 2.7 2.8 5.0 5.3 11.4
--------------------------------------------------------------------------------
Other operating income 0.0 0.1 0.0 0.1 0.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sales, marketing and customer support costs -2.0 -1.8 -3.7 -3.3 -6.9
--------------------------------------------------------------------------------
Product development expenses -1.1 -0.8 -2.0 -1.5 -3.0
--------------------------------------------------------------------------------
Administrative expenses -0.2 -0.4 -0.7 -0.7 -1.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss -0.6 -0.1 -1.5 -0,0 0.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income and expenses 0.0 -0.0 0.0 -0.0 -0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss before taxes -0.6 -0.1 -1.5 -0,0 0.2
--------------------------------------------------------------------------------
Taxes -0.0 -0.0 -0.1 -0.0 -0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net profit/loss for the financial period -0.6 -0.1 -1.5 -0,0 0.2
--------------------------------------------------------------------------------
Minority interest 0.0 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 0.0 0.0 0.0 0.0 -0.0
--------------------------------------------------------------------------------
Net change in fair value of
available-for-sale
financial assets
--------------------------------------------------------------------------------
0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income -0.6 -0.1 -1.5 -0.0 0.2
--------------------------------------------------------------------------------
Net profit/loss attributable to:
--------------------------------------------------------------------------------
Owners of the Company -0.6 -0.1 -1.5 -0.0 0.2
--------------------------------------------------------------------------------
Non-Controlling interest 0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EARNINGS PER SHARE
--------------------------------------------------------------------------------
Earnings per share (EUR) -0.02 -0.01 -0.06 0.00 -0.00
--------------------------------------------------------------------------------
Earnings per share diluted (EUR) -0.02 -0.01 -0.05 0.00 -0.00
--------------------------------------------------------------------------------
SHORT BALANCE SHEET
--------------------------------------------------------------------------------
EUR million
--------------------------------------------------------------------------------
30.6.2014 30.6.2013 31.12.2013
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Tangible assets 0.2 0.2 0.2
--------------------------------------------------------------------------------
Intangible assets 3.5 2.5 3.1
--------------------------------------------------------------------------------
Investments 0.0 0.0 0.0
--------------------------------------------------------------------------------
Total non-current assets 3.7 2.7 3.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Trade and other receivables 3.8 4.5 4.1
--------------------------------------------------------------------------------
Short-term financial assets 2.0 2.0 0.0
--------------------------------------------------------------------------------
Cash and cash equivalents 2.5 4.7 6.0
--------------------------------------------------------------------------------
Total current assets 8.3 11.3 10.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 12.0 14.0 13.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity
--------------------------------------------------------------------------------
Equity attributable to the parent company 6.0 7.1 7.4
shareholders
total
--------------------------------------------------------------------------------
--
Non-controlling interest 0.0 0.5 0.0
--------------------------------------------------------------------------------
Shareholders' equity total 6.0 7.6 7.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------------------------
Provisions 0.0 0.1 0.1
--------------------------------------------------------------------------------
Non-current interest-bearing liabilities 0.0 0.0 0.0
--------------------------------------------------------------------------------
Total long-term liabilities 0.0 0.1 0.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current liabilities 6.1 6.2 6.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities total 6.1 6.4 6.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity and liabilities 12.0 14.0 13.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CASH FLOW STATEMENT
--------------------------------------------------------------------
EUR million 1-6/2014 1-6/2013 1-12/2013
--------------------------------------------------------------------
--------------------------------------------------------------------
Cash flow from business operations -0.4 0.1 0.4
--------------------------------------------------------------------
Cash flow from investments -0.9 -0.9 -2.0
--------------------------------------------------------------------
Cash flow from financing 0.0 -1.2 -1.2
--------------------------------------------------------------------
--------------------------------------------------------------------
Increase(+) / decrease(-) in cash -1.3 -2.0 -2.8
--------------------------------------------------------------------
--------------------------------------------------------------------
Cash at period start 3.8 6.6 6.6
--------------------------------------------------------------------
Effect of exchange rate 0.0 0.0 0.0
--------------------------------------------------------------------
Cash at period end* 2.5 4.6 3.8
--------------------------------------------------------------------
* cash at period end does not include investments other than mutual funds of
short term interest, thus investment of 2.0 million EUR is excluded from cash
at period end.
STATEMENT ON
CHANGES IN
SHAREHOLDERS'
EQUITY
--------------------------------------------------------------------------------
EUR Share Fair Other Transla Fund Non-con Unrestricted Total
milli capita value fund + tion for trollin equity funds
on l reserv other differe own g and retained
es equity nce shares interes earnings
fund t
--------------------------------------------------------------------------------
Shareh 0.9 0.2 4.1 -1.3 -1.0 0.2 3.1 6.3
olders
'
equit
y
Jan
01,
2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change 1.0 0.3 1.3
--------------------------------------------------------------------------------
Net -0.0 -0.0
profi
t
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareh 0.9 0.2 4.1 -1.3 0.0 0.5 3.1 7.6
olders
'
equit
y
Jun
30,
2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change 0.0 0.2 0.0 -0.5 -0.3
--------------------------------------------------------------------------------
Net 0.1 0.1
profi
t
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareh 0.9 0.4 4.1 -1.3 0.0 0.0 3.3 7.4
olders
'
equit
y
Dec
31,
2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change 0.0 0.0 0.0 0.1 0.1
--------------------------------------------------------------------------------
Net -1.5 -1.5
profi
t
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareh 0.9 0.4 4.1 -1.3 0.0 0.0 1.9 6.0
olders
'
equit
y
Jun
30,
2013
--------------------------------------------------------------------------------
NET SALES BY SEGMENT
---------------------------------------------------
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2014 2013 2014 2013 2013
---------------------------------------------------
---------------------------------------------------
AMER 2.3 1.4 3.5 2.7 5.3
---------------------------------------------------
APAC 0.5 0.3 0.9 0.7 1.5
---------------------------------------------------
EMEA 0.6 1.6 1.9 2.8 6.6
---------------------------------------------------
SSH Group Total 3.4 3.3 6.3 6.2 13.3
---------------------------------------------------
GROSS MARGIN BY SEGMENT
------------------------------------------------------
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2014 2013 2014 2013 2013
------------------------------------------------------
------------------------------------------------------
AMER 1.5 1.4 2.7 2.7 5.3
------------------------------------------------------
APAC 0.5 0.3 0.8 0.7 1.5
------------------------------------------------------
EMEA 0.8 1.1 1.6 1.9 4.7
------------------------------------------------------
SSH Group Total 2.7 2.8 5.0 5.3 11.4
------------------------------------------------------
OPERATING PROFIT AND LOSS BY SEGMENT
-------------------------------------------------------------------
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2014 2013 2014 2013 2013
-------------------------------------------------------------------
-------------------------------------------------------------------
AMER 0.8 0.2 0.9 0.5 0.8
-------------------------------------------------------------------
APAC 0.3 0.1 0.5 0.4 0.7
-------------------------------------------------------------------
EMEA 0.6 0.9 1.0 1.7 4.0
-------------------------------------------------------------------
Common Group expenses -2.3 -1.3 -3.9 -2.7 -5.4
-------------------------------------------------------------------
SSH Group Total -0.6 -0.1 -1.5 -0.0 0.2
-------------------------------------------------------------------
* Common Group expenses include Group administration expenses (e.g. management
and finance) and product management and R&D expenses for corporate
headquarters.
KEY FIGURES AND RATIOS
--------------------------------------------------------------------------------
EUR million 1-6/ 1-6/ 1-12/
2014 2013 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 6.3 6.2 13.3
--------------------------------------------------------------------------------
Operating profit/loss -1.5 -0.0 0.2
--------------------------------------------------------------------------------
Operating profit/loss as % of net sales -23.7 -0.3 1.3
--------------------------------------------------------------------------------
Profit/loss before extraordinary items and taxes -1.5 -0.0 0.2
--------------------------------------------------------------------------------
Profit/loss before extraordinary items and taxes as % of -23.4 -0.4 1.1
net sales
--------------------------------------------------------------------------------
Profit/loss before taxes -1.5 -0.0 0.2
--------------------------------------------------------------------------------
Profit/loss before taxes as % of net sales -23.4 -0.4 1.2
--------------------------------------------------------------------------------
Return on equity (%) -23.1 -7.2 2.2
--------------------------------------------------------------------------------
Return on investment (%) -22.1 -4.7 1.9
--------------------------------------------------------------------------------
Interest-bearing net liabilities -4.6 -6.6 -6.0
--------------------------------------------------------------------------------
Equity ratio (%) 68.8 79.3 76.6
--------------------------------------------------------------------------------
Gearing (%) -77.4 -88.4 -80.1
--------------------------------------------------------------------------------
Gross capital expenditure 0.9 0.9 2.0
--------------------------------------------------------------------------------
% of net sales 14.5 13.8 14.7
--------------------------------------------------------------------------------
R&D expenses 2.0 1.5 3.0
--------------------------------------------------------------------------------
% of net sales 31.7 24.7 22.3
--------------------------------------------------------------------------------
Personnel period average 100 78 85
--------------------------------------------------------------------------------
Personnel period end 99 86 99
--------------------------------------------------------------------------------
Calculation for key figures and ratios are presented in 2013 financial
statement and annual report. There have not been changes in calculation rules
after that.
PER SHARE DATA
----------------------------------------------------------------------
EUR 1-6/ 1-6/ 1-12/
2014 2013 2013
----------------------------------------------------------------------
----------------------------------------------------------------------
Earnings per share undiluted* -0.06 0.00 -0.00
----------------------------------------------------------------------
Earnings per share diluted* -0.05 0.00 -0.00
----------------------------------------------------------------------
Equity per share 0.19 0.20 0.24
----------------------------------------------------------------------
No. of shares at period average (thousand) 30 753 30 751 30 751
----------------------------------------------------------------------
No. of shares at period end (thousand) 30 825 30 751 30 751
----------------------------------------------------------------------
Share performance
----------------------------------------------------------------------
Average price 3.05 1.28 2.11
----------------------------------------------------------------------
Low 2.71 0.75 0.75
----------------------------------------------------------------------
High 3.74 2.23 4.50
----------------------------------------------------------------------
Share price period end 2.78 1.70 2.91
----------------------------------------------------------------------
Market capitalization period end (EUR million) 85.7 52.3 89.5
----------------------------------------------------------------------
Volume of shares traded (million) 1.9 5.2 9.9
----------------------------------------------------------------------
Volume of shares traded as % of total 6.3 16.8 33.4
----------------------------------------------------------------------
Value of shares traded (EUR million) 5.9 7.2 20.8
----------------------------------------------------------------------
Price per earnings ratio (P/E) - - neg.
----------------------------------------------------------------------
Dividend per share 0.00 0.00 0.00
----------------------------------------------------------------------
Dividend per earnings, % 0.00 0.00 0.00
----------------------------------------------------------------------
Effective return on dividend, % 0.00 0.00 0.00
----------------------------------------------------------------------
* earnings per share is impacted by unpaid interest of hybrid capital securities
CONTINGENT LIABILITIES
-------------------------------------------------------------------------------
EUR million 30.6.2014 30.6.2013 31.12.2013
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Rent security deposits 0.1 0.1 0.1
-------------------------------------------------------------------------------
Leasing commitments outside the balance sheet
-------------------------------------------------------------------------------
Maturing within 1 year 0.5 0.5 0.5
-------------------------------------------------------------------------------
Maturing between 1 and 5 years 0.1 0.1 0.4
-------------------------------------------------------------------------------
At the time of reporting, unpaid interests of the hybrid loan was EUR 0.4
million.
DISCLAIMER
The content in this report is provided by SSH Communications Security 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. legal) amounting to investment
advice. Or make any recommendations regarding particular investments or
products. SSH Communications Security 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 Communications Security, please contact your
financial adviser for further details and information. Past performance of SSH
Communications Security shares is not indicative of future results. EXCEPT AS
PROVIDED BY APPLICABLE COMPULSORY LAW SSH COMMUNICATIONS SECURITY 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 will release its next interim report for period
January 1 - September 30, 2014 on October 22, 2014.
Helsinki, July 23, 2014
SSH COMMUNICATIONS SECURITY
Board of Directors
Tatu Ylönen
CEO
For further information, please contact:
Tatu Ylönen, CEO. tel. +358 20 500 7000
Jyrki Lalla, CFO, tel. +358 45 340 4641
Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.tectia.com
About SSH Communications Security
Founded in 1995, SSH Communications Security is the company that invented the
SSH protocol - the gold standard protocol for data-in-transit security. Today,
over 3,000 customers across the globe - including seven of the Fortune 10 -
trust our Information Assurance Platform to secure the path to their
information assets. We enable and enhance business for thousands of customers
in multiple industries in the private and public sectors around the world. A
fast-growing company, SSH Communications Security operates in the Americas,
Europe, and APAC regions, with headquarters located in Helsinki, Finland. The
company's shares (SSH1V) are quoted on the NASDAQ OMX Helsinki.
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