2011-04-27 08:00:00 CEST
2011-04-27 08:00:05 CEST
REGULATED INFORMATION
F-Secure Oyj - Interim report (Q1 and Q3)
F-Secure Corporation - Interim Report, January 1 - March 31, 2011
April 27, 2011 at 9.00
F-Secure Corporation - Interim Report
January 1 - March 31, 2011
Operator revenue growth accelerated significantly, healthy profitability,
expansion in Latin America
(This report is unaudited. Unless otherwise stated the comparisons refer to the
corresponding period a year ago. The currency is euro. Storage and Digital
Content business unit is included in the operator channel figures.)
Highlights in Q1
- Total revenues grew by 9% to 34.1 million (Q12010: 31.4 m)
- Revenues from the operator channel (ISP's, mobile operators and cable
operators) grew by 20%, reaching revenues of 18.7 million (15.6m)
- Revenue growth in the operator channel accelerated significantly from
previous year driven by good security sales and supported by storage related
revenues
- EBIT was 5.5 million; representing 16% of revenues (5.5m, 18%)
- Earnings per share was EUR 0.02 (EUR 0.03)
- Cash flow from operations was 7.1 million positive (6.9m)
- F-Secure Internet Security 2011 won AV-Comparative's Whole Product Dynamic
Test in January 2011
Outlook for 2011 - management estimation for the year is unchanged
- Annual revenue growth is expected to accelerate to around 10% and annual
profitability to improve from 2010 level at a comparable pace to revenue growth
(compared to 2010 EBIT excl. re-structuring)
- Previously estimated revenue growth acceleration materialized already in Q1.
Similar revenue growth is estimated to continue in Q2. Profitability in Q2 is
expected to be slightly down from Q1 due to investments to drive operator
growth and due to temporary delays in corporate sales in Japan.
Key figures 2011 2010 2010 2010
--------------------------------------------------
(Eur million) 1-3 1-3 10-12 12m
--------------------------------------------------
Revenues 34.1 31.4 34.4 130.1
--------------------------------------------------
Operating profit 5.5 5.5 3.6 19.8
--------------------------------------------------
% of revenues 16 % 18 % 10 % 15 %
--------------------------------------------------
Profit before taxes 5.3 5.5 3.7 19.9
--------------------------------------------------
Earnings per share (Eur) 0.02 0.03 0.02 0.10
--------------------------------------------------
At the end of period: 37.5 37.2 37.2 37.2
Deferred revenues
--------------------------------------------------
Equity ratio. % 60% 58% 69% 69%
--------------------------------------------------
Debt-to-equity ratio. % -80% -85% -63% -63%
--------------------------------------------------
Personnel 851 836 812 812
--------------------------------------------------
President and CEO Kimmo Alkio:
“Our Q1 financial results were good, while our ambition is to drive higher
growth. Our operator business demonstrated very strong revenue growth - higher
than we have seen in a long time. The latest market expansion in Latin America
with Telefonica and several other operators is a great growth opportunity for
our security and storage services for coming years. These partnerships together
with Q4 announced AT&T co-operation further prove our competiveness in the
operator market globally.
The opportunity for value added services with over 200 operator partners with
an addressable market now of over 100 million fixed and mobile broadband
customers* is significant. Year 2011 looks exciting and we are expecting to
see healthy revenue growth to continue. “
*not yet including AT&T's and Telefonica's total customer base.
F-Secure business during January-March 2011
The total revenues for the first quarter were 34.1 million (31.4m),
representing growth of 9%. Revenue growth through the operator channel
continued strong and was totally 20% from previous year and totaled 18.7
million (15.6m). Revenues through the traditional channels were, as
anticipated, down by 2%, totaling 15.4million (15.8m). EBIT was 5.5 million
(5.5m), representing 16% of revenues (18%). Earnings per share were EUR 0.02
(EUR 0.03). Cash flow from operations was 7.1 million positive (6.9m). Deferred
revenues were 37.5 million at the end of March (37.2m) due to healthy license
renewal sales.
Total fixed costs for first quarter were 27.2 million (24.1m), 13% higher than
in previous year. F-Secure capitalized some of its R&D expenses according to
accounting rules, totaling 1 million (0.7m). The cost increases were targeted
to sales and marketing activities, to storage related project deliveries and to
R&D to increase the competitiveness of the solution portfolio.
Q1 2011 the geographical breakdown of the revenues split as follows: Finland
and Scandinavia 33% (33%), Rest of Europe 45% (46%), North America 10% (9%) and
Rest of the World 12% (12%).
While the earthquake in Japan impacted the Corporate business negatively
(reported under Other Channels), this was off-set by firm performance in the
Operator channel.
Operator channel in Q1
F-Secure's portfolio in the Software as a Service business includes PC and
mobile security and a broad range of storage based services. F-Secure's
business through the operator channel (including ISP's, mobile operators and
cable operators) continued to perform robust. In the first quarter of 2011,
revenues through the operator business partners totaled 18.7 million (15.6m),
representing 55% of F-Secure's total revenues (50%). Revenue growth was 20%
compared to the corresponding quarter in 2010 and 2% to the previous quarter.
The revenue growth of operator business further accelerated from the previous
year due to potent security sales and strong progress in storage related
services, which included project delivery related revenue recognition (in Q1
this was lower level than in Q4 as explained in the previous interim release).
F-Secure's position in the operator channel is strong in the traditional
Internet security business. The competitiveness of Security as a Services
business continues to gain market share to the benefit of both operators and
end customers. During the quarter the number of internet security subscribers
in the operator business has continued to grow. This growth was mainly driven
by the increase in subscriber take-up rates within the existing operator base
both in western and emerging markets. F-Secure has also been successful in its
activities with mobile broadband operators to support the operator business
growth in the future.
In Q1, F-Secure has entered in partnerships with Telefonica and several other
operators in Latin America. These long term regional partnerships enable
F-Secure to reach major wireless and mobile broadband markets with its internet
protection and storage related services. These partnerships are expected to
contribute gradually to the revenue growth towards year end.
The Storage and Digital Content (SDC) market entry has strengthened F-Secure's
attractiveness as a long term strategic partner, as already experienced with
several major operators globally. The SDC business extends F-Secure's value
added service portfolio and strengthens the Security as a Service business. SDC
operations have been integrated to F-Secure and are functioning as expected in
the company's functional organization.
The co-operation with AT&T (one of the biggest Operators in the world) for
storage services, as announced in Q4; has continued as expected. Details of the
service offering are planned to be available at the time of public launch of
the services. Q1 includes revenue recognition from the AT&T project delivery
(less than in Q4 as expected and explained in the previous interim report).
License based revenues are expected to begin after launch of the services in
the second half of 2011. Project delivery revenues are expected to vary by
quarter.
In Europe, for storage services the company has successfully completed delivery
milestones, which are expected to contribute to revenue growth during 2011.
The Company utilizes its pioneer position in Mobile Security and expands its
solution offerings to other value added services for mobile devices. In
addition to recently announced Telefonica partnership, co-operations with
mobile operators such as Vodafone Group, TeliaSonera Group, T-Mobile
International, Swisscom and Elisa continued well. Currently, there are mobile
operator partnerships with more than 20 operators worldwide. The Company's
co-operation with major handset manufactures, like Nokia and SonyEricsson, has
continued well, too.
The total number of F-Secure's operator partners is significantly larger than
that of any other security service vendor. The company currently has more than
200 partners in over 40 countries with an addressable market of over 100
million fixed and mobile broadband consumer customers (excl. AT&T and
Telefonica). Geographic distribution of the addressable market is as follows;
approximately 67m in Europe, approximately 13m in North America (excl. AT&T),
close to 5m in Latin America (excl. Telefonica) and in the APAC region with
more than 14m potential addressable subscribers (Source: estimates by
F-Secure).
Other channels in Q1
During the first quarter, revenues through traditional channels were 15.4
million (15.6m), showing a decline of 2% from the corresponding quarter in
2010. These traditional channels represented 45% of F-Secure's total revenues
(50%). The Q1 corporate sales were negatively impacted by the earthquake in
Japan which is a major market for F-Secure in this channel.
In other countries, the sales in traditional channels continued well as
expected. Customer satisfaction to security services are at high level that is
visible as healthy license renewal rates during the first quarter.
Products, Services and Technologies
F-Secure develops and sells security and storage related services that support
personal computers, servers and an increasing set of major smartphone and
tablet operating systems. Services include broad security suites (anti-virus,
browsing protection and parental control) and storage-related services like
on-line back-up. Nearly 10 years ago F-Secure innovated and launched to the
market a new business model by offering security as a service (SaaS).
F-Secure's main solutions are world leaders for SaaS via operators.
F-Secure is increasing the investment to extend the products and services to
new major smartphone and tablet operating systems, such as Android, iOS and
RIM. This allows operators to offer F-Secure services, both PC and mobile, to a
wide subscriber base.
Cloud computing has been in the center of the company's technology strategy and
choices for the past few years. F-Secure uses cloud for two purposes: for
Real-time Protection Network and for on-line storage. Real-time Protection
Network moves certain processing and memory intensive functions from the
end-user device to the cloud making the client software one of the fastest in
the industry. Furthermore, by harnessing the collective intelligence of client
systems, the real-time protection network is able to detect and react to new
emerging threats a magnitude faster, and to provide protection to different
device categories, such as smartphones. This technology provides reputations of
files, sites and URLs and is utilized broadly in F-Secure solutions.
F-Secure has made a significant investment for on-line storage technology. The
carrier-grade cloud storage platform gives F-Secure the scalability and
flexibility to tackle even the most complex requirements of the largest
operators in the world while at the same time making small deployments feasible
to enable new solutions to be trialed in a fast and incremental manner.
The extraction of the cloud security concepts from the PC context and
combination of these two cloud-based technologies will in the future allow
F-Secure to create new and innovative solutions for personal computers,
smartphones and other devices.
F-Secure has continued to invest in user experience design when developing
solutions and service offerings. User experience designers, marketers, and
developers engage in consumer research, focus groups, and usability tests, to
explore consumer needs and validate new product and service prototypes withconsumers to ensure that they are appealing and usable when introduced to the
public. User experience in addition to technical performance is crucial for
commercial success of solutions and services.
During the first quarter of 2011 the key product announcements were the
following:
In March, F-Secure introduced a new Partner Portal for its resellers. The
portal provides advanced online tools for resellers that help them to react
quickly and efficiently to end-customers' needs, boosting sales and customer
service. The new Partner Portal makes life easier for resellers by bringing all
their end customer information to a single location where they can conveniently
manage accounts, calculate offers and find the full range of sales support
materials from F-Secure.
In March, F-Secure Policy Manager 10 was introduced to the corporate segment.
F-Secure Policy Manager 10 delivers a new level of effectiveness by automating
daily security operations. IT security management now requires less manual
work. F-Secure Policy Manager 10 automates daily operations like protecting new
computers and the removal of disconnected hosts. With the Policy Manager
centralized security management solution, security administrators can remotely
install, configure and monitor workstations, servers or even remote offices
from one location. The new version of Policy Manager also introduces several
features to boost productivity and performance.
In February, a new version of F-Secure's Protection Service for Mobile (PSM 7)
was introduced at the Mobile World Congress in Barcelona, Spain. The Protection
Service for Mobile enables operators to offer comprehensive protection and
parental control for their customers' mobile devices. PSM enables operators to
offer an end user service that makes Internet browsing, social networking and
mobile financial transactions safer by automatically identifying harmful web
sites, as well as keeping children safe from inappropriate and dangerous web
content. PSM also helps operators' customers to lock, locate and erase missing
devices and gives protection against harmful applications and viruses. PSM
supports multiple mobile platforms, and includes several customizable
alternatives for operators to offer mobile security as a service to their
customers.
In January 2011, F-Secure received the “Product of the Year” award issued by
AV-Comparatives, one of the major independent testing organizations in the
industry. The testing organization described Internet Security 2011 a
well-designed product with a clear and easy-to-use interface.
Market situation
There were no significant changes in the competitive landscape or in the
pricing levels in the security space during the quarter. Consolidation in the
storage and digital content market continued, with many of F-Secure's
traditional competitors entering the space. Usual signs of price competition
are evident in some countries in the security area, while the storage and
digital content space at large is beginning to shift towards more sustainable
business models through consolidation. F-Secure's competitive position in the
operator channel has remained strong. At the same time the broadband market is
experiencing a shift from fixed to mobile broadband access. The combined
broadband business is anticipated to continue as a healthy growth driver for
Security as a Service in the operator channel.
Personnel and organization
F-Secure's personnel totaled 851 at the end of March 2011 (end of Dec. 2010:
812, end of Mar. 2010: 836). The number of personnel has continued to increase
especially in the storage business and in R&D.
As of March the current Executive Team consists of the following persons: Kimmo
Alkio (President and CEO), Ari Alakiuttu (Vice President, Human Resources),
Tuomas Hyyryläinen (Vice President, Strategy and M&A), Samu Konttinen (Vice
President, Sales and Marketing), Maria Nordgren (Vice President, Channels),
Pirkka Palomäki (Chief Technology Officer), Kari Penttilä (Vice President,
R&D), Patrik Sallner (Vice President, Professional Services ), Antti Reijonen
(Vice President, Solution and Portfolio Management) and Taneli Virtanen (Chief
Financial Officer).
Financing and capital structure
F-Secure's financial position continued strong. F-Secure's equity ratio at the
end of March was 60% and 69% if the dividends were paid in March (58% / 67%)
and gearing ratio was 80% negative (85% negative).
Cash flow from the operations for the first quarter was 7.1 million positive
(6.9m positive). The net financial income for the first quarter 2011 was
slightly negative of 0.2m impacted by low interest income and changes of
exchange rates losses (0.1m).
The company's cash position has developed according to the longer term
efficient capital management objectives. The market value of the liquid assets
of F-Secure on March 31, 2011 was 37.1 million (35.9m).
Changes in exchange rates, EUR against USD, JPY, GBP, SEK and MYR, have
slightly increased revenues and costs during the quarter.
Capital expenditure
F-Secure's capital expenditure for the first quarter was 2.5 million (2.9m),
consisting mainly of IT hardware and software as well as capitalization of some
research and development expenses.
Capital management and repurchase of own shares
The objective of F-Secure's capital management is to aim at an efficient
capital structure that ensures the functioning of business operations and
promotes the increase of shareholder value.
Including all shares bought, the total number of own shares held at the end of
March 2011 was 3,307,313 shares, corresponding to approximately 2.1% of the
company's shares and voting rights. The shares were purchased through public
trading on the NASDAQ OMX Helsinki Ltd. in accordance with its rules and at
market price. The own shares are purchased to be used to improve the Company's
financial structure, to be used as part of the incentive compensation plan, for
making acquisitions or implementing other arrangements related to the Company's
business or for the purpose of otherwise assigning or cancelling the shares.
Shares, shareholders' equity and option programs
During the quarter, 2005 D-warrants of F-Secure Corporation were listed on the
Nasdaq OMX Helsinki Ltd. and trading commenced on March 1, 2011. In connection
with the 2005 Option Plan, the maximum of 4.5 million warrants will be issued
which are divided into categories A, B, C and D. Each 2005 D-warrant entitles
holders to subscribe for one F-Secure share at a price of EUR 2,09. The
subscription price of the stock options shall, as per the dividend record date,
be reduced by the amount of dividend per share. The subscription time for 2005
D-warrants began on March 1, 2011 and will end on November 30, 2012. In
aggregate the 2005 D-warrants entitle holders to subscribe for 410,000 shares.
The terms and conditions of stock options are published as a stock exchange
release on February 17, 2011.
In April, a total of 285,893 F-Secure shares were subscribed for with the C
warrants attached to the F-Secure 2005 Warrant Plan. The issue of the 2005
Warrant Plan was approved by the Annual General Meeting on March 23, 2005. In
aggregate the number of shares was increased by 285,893, which was registered
in the Finnish Trade Register on Apr 12, 2011. F-Secure received as
subscription price a total amount of EUR 423,121.64, which was recorded in the
fund for company's distributable equity. As a result of the registering the
total number of shares is 157,825,136. The trading with the new shares
commenced on Apr 13, 2011. The subscription period for the 2005 C warrants
began on March 1, 2010.
The total number of company's shares is currently 157,825,136. The
corresponding number of shares diluted would be 160,990,852 including all stock
option programs. The company's registered shareholders' equity is EUR
1.551.311,18. More information on the stock option programs is available on the
company's Investors website.
Corporate Governance
F-Secure complies with the Corporate Governance recommendations for public
listed companies published in October 2008 by the Securities Market
Association, a body established by the Confederation of Finnish Industries EK,
the Central Chamber of Commerce, and NASDAQ OMX Helsinki Ltd., as explained on
F-Secure's web pages. F-Secure published a corporate governance statement for
2009 in the annual report and on the company website in March.
Risks and uncertainties
F-Secure has not seen material changes in the risks and uncertainties during
the reporting period. The slower growth in sales of fixed broadband connections
by operators may also have an impact on security service sales. As the
uncertainty in the economic environment especially in Europe has continued,
F-Secure continues to monitor closely the development in the economic and
financial markets.
F-Secure's risks and uncertainties are related to, among other things, the
competitiveness of
F-Secure's product portfolio, competitive dynamics in the industry, pricing
models (e.g. free services), impact of changes in technology, timely and
successful commercialization of complex technologies as new products and
solutions, the ability to protect own intellectual property (IPR) in F-Secure's
solutions as well as the use of third party technologies on reasonable
commercial terms, subcontracting relationships, regional development in new
growth markets, sustainability of partner relationships, compromising stored
personal data , service quality related penalties and risk exposure from
increasing contractual liability requirements.
Due to the longevity and complexity of project deliveries in the storage and
digital content business, the project completion timelines and related revenues
are more unpredictable, by nature, than in the traditional security services
business. This may cause risks for delivery delay penalties and may cause more
variability in revenue forecasts.
F-Secure Corporation is a party to a dispute in Brazil regarding a distributor
relationship and will defend itself accordingly, including through an
arbitration process in Finland. The Company does not expect a material impact
on its financials from this lawsuit.
Annual General Meeting
The Annual General Meeting of F-Secure Corporation was held on March 30, 2011.
The Meeting confirmed the financial statements for the financial year 2010. The
members of the Board and the President and CEO were granted a discharge from
liability. In addition, the Annual General Meeting decided to distribute a
dividend of EUR 0.06 per share. The dividend record date was April 4, 2011 and
the payment date April 12, 2011.
The Annual General Meeting decided that the annual compensation remains on a
previous year's level; for the chairman is EUR 55,000, for the chairmen of
Executive and Audit Committee EUR 40,000 and for members EUR 30,000.
Approximately 40% of the annual remuneration will be paid as company shares. It
was decided that the number of Board members would be six. The following
members were re-elected: Mr. Jussi Arovaara, Ms. Sari Baldauf, Mr. Pertti Ervi,
Mr. Juho Malmberg, Ms. Anu Nissinen and Mr. Risto Siilasmaa. The Board elected
in the first meeting Mr. Siilasmaa as the Chairman of the Board. The Board
nominated Ms. Baldauf as the Chairman of the Executive Committee and Mr.
Siilasmaa and Ms. Nissinen as members of the Executive Committee. Mr. Ervi was
nominated as the chairman of the Audit Committee and Mr. Arovaara and Mr.
Malmberg were nominated as members of the Audit Committee. It was decided that
auditor's fee will be paid against approved invoice. Ernst & Young Oy was
elected the Group's auditors. APA, Mr. Erkka Talvinko is acting as responsible
partner.
It was decided that the Board of Directors may pass a resolution to purchase a
maximum of 10.000.000 shares of the Company. The amount represents
approximately 6.3% of all the shares issued by the Company. The authorization
would be valid for one year. The authorization covers the purchase of shares
through public trading on the NASDAQ OMX Helsinki Ltd. in accordance with its
rules or through a public tender offer made to the shareholders of the Company.
The consideration payable for the shares shall be based on the market price.
The Annual General Meeting authorized the Board of Directors to decide on a
transfer of a maximum of 13.307.313 own shares of the Company either against
consideration or without payment. The authorization would be valid for one
year. The Board of Directors is authorized to transfer the shares in deviation
from the shareholders' pre-emptive rights (directed transfer) subject to the
provisions of the applicable law.
It was decided by the Annual General Meeting that the Board of Directors is
authorized to decide on the issuance of shares. The amount of shares to be
issued based on this authorization shall not exceed 40.000.000 shares. Board of
Directors decides on all the conditions of the issuance of shares. The
authorization concerns both the issuance of new shares as well as the transfer
of treasury shares.
The decisions made by the annual general meeting have been published at full as
a stock exchange release on March 30, 2011.
Market view and long-term objectives
The long term market opportunities are attractive for F-Secure. The demand for
Value Added Services, like Internet security, storage services, is driven by
the expansion of Internet users and Internet connected devices.
The number of Internet users grew by 200 million close to 2 billion in one year
(Sept 09- Sept 10). The global Internet penetration is still globally below
30%; in Asia it is slightly over 20%, in Europe close 60%, and in North
America close to 80% (Source: Internet World Stats, U.S. Census Bureau,
estimated in June 2010). The growing number of smart phones and other Internet
connected devices is expected to accelerate tens of billions during next 10
years (source; gigaom/ Ericson)
The Security software market as a total is attractive globally. The global
security software revenue worldwide estimate for 2010 is $16.5bn, reflecting a
10% annual growth rate for 2010. Consumer security software growth is expected
to show CAGR of 6.5% 2007-2014 (source: Source: Gartner Jul. 2010).
The volume of user generated digital content is expected to continue to
increase rapidly during coming years driven by digital photos and music. The
Use of social media is increasing and people look for services to share, store
and control of their personal data. IDC forecasts this storage as a service
market to pass $3bn by 2012, with a compound annual growth rate of more than
29% from 2007 to 2012.
The Security as a Service (SaaS) business has been a strong growth driver for
F-Secure since the year 2000. Based on the company's strong technology assets
in security, cloud computing and in storage area and based on its pioneering
role in offering Software as a Service, F-Secure continues to create new
innovative offerings to augment traditional security services.
Based on experience of the Software as a Service business model, F-Secure
anticipates that both the customer benefits (e.g. lower total cost of
ownership) and attractive partner business benefits (e.g. lifetime revenue
share) will accelerate the adoption of the Software as a Service business model
compared to traditional software acquisition as a product.
F-Secure's first priority is to drive growth and market expansion. The Company
sells its Value Added Services to consumers through its large operator network
of over 200 operator partners in over 40 countries with an addressable market
of over 100 million fixed and mobile broadband customers.
F-Secure focuses on increasing the penetration within the current operator base
with security and storage related services and continues to selectively seek
partner expansion globally; especially in emerging markets. The penetration
rates vary by operator; overall penetration levels are relatively low and leave
substantial opportunity for growth. The combination of security and storage
services attract a larger customer base and has proven to drive penetration
rates.
F-Secure's close co-operation with major mobile phone vendors and mobile phone
operators provides good opportunities to benefit from the growth of the mobile
Internet. Over time, F-Secure anticipates synergies across the Value Added
Services being developed and offered both for PC's and smart phones.
F-Secure's target is to be the best partner for operators in providing value
added services to consumers. F-Secure pursues investments in new value added
services for both PC and mobile users to augment the existing security and
storage services.
F-Secure aims to exceed the average market growth rates in revenues and seeks
to improve its profitability sustainably towards an EBIT level of 25% over
time. F-Secure's longer term profitability level continues to be driven
extensively by revenue growth and scalable operations. F-Secure targets its
investments in strategic growth businesses, specifically the operator channel.
Outlook for 2011
Combination of latest operator wins together with competitive service portfolio
have further improved the Company's growth projections. Operator revenues are
expected to deliver accelerating growth driven by security sales, storage
related project deliveries and storage service sales. The traditional security
license business related revenues are not estimated to contribute to revenue
growth.
The management estimation for the year is unchanged; the annual revenue growth
is expected to accelerate to around 10%. The Company continues to prioritize
growth over short term profitability and plans to invest majority of the
improved earnings back to growth opportunities in its core business. Annual
profitability is expected to improve from 2010 level at a comparable pace to
revenue growth (compared to 2010 EBIT excl. re-structuring).
The Company is investing in geographical expansion, competiveness of its value
added service (VAS) portfolio in PC security and storage, in new mobile
operating systems, like Android, RIM, iOS, and in new innovations to further
accelerate revenue growth in the operator channel.
Previously estimated revenue growth acceleration materialized already in Q1.
Similar revenue growth is estimated to continue in Q2. Profitability in Q2 is
expected to be slightly down from Q1 due to investments to drive operator
growth and due to temporary delays in corporate sales in Japan.
The revenue estimate is based on the sales pipeline at the time of publishing,
existing subscriptions and support contracts as well as current exchange rates.
News conference today at 11 am
A news conference for analysts and press is arranged today, on April 27, at 11
am Finnish time at the Group's Headquarters, address: Tammasaarenkatu 7
(Ruoholahti), Helsinki. A conference call for international investors and
analysts is arranged at 14.00 Finnish time (13.00 CET, 12.00 pm UK time). To
participate in the call, please dial in and register 5-10 minutes prior to the
event in the following number: +44 20 7162 0077, password: F-Secure. The Q1
presentation material will be available on our Investors web pages at before
the call begins.
Financial calendar for 2011
F-Secure will publish the interim report for the second quarter of 2011 on July
27, 2011 and for the third quarter October 26, 2011. On the publication date a
stock exchange release will be sent at 9 am Finnish time to the NASDAQ OMX
Helsinki Ltd., a press and analyst conference will be arranged at 11 am Finnish
time in Helsinki, and an international conference call will be arranged in the
afternoon. Full details how to participate in the conference call will be
provided on F-Secure's website prior to the publishing of each interim report.
F-Secure Corporation
Additional information
F-Secure Corporation
Kimmo Alkio, President and CEO
tel. +358 9 2520 0700
Taneli Virtanen, CFO
tel. +358 9 2520 5655
Mervi Pohjoisaho, IR
tel. +358 40 535 8989
This interim report is prepared in accordance with IAS 34 standard Interim
Financial Reporting and with accounting principles stated in the annual report
2010.
KEY FIGURES (unaudited):
INCOME STATEMENT 2011 2010 Chge 2010
Eur million 1-3 1-3 % 1-12
-------------------------------------------------
Revenues 34.1 31.4 9 130.1
-------------------------------------------------
Cost of revenues 1.8 2.0 -8 8.1
-------------------------------------------------
Gross margin 32.3 29.4 10 122.0
-------------------------------------------------
Other operating income 0.4 0.3 38 1.0
-------------------------------------------------
Sales and marketing 14.8 14.4 3 59.6
-------------------------------------------------
Research and development 9.4 7.8 21 34.5
-------------------------------------------------
Administration 3.0 1.9 56 9.1
-------------------------------------------------
Operating result 5.5 5.5 0 19.8
-------------------------------------------------
Financial net -0.2 -0.1 0.0
-------------------------------------------------
Result before taxes 5.3 5.5 19.9
-------------------------------------------------
Income taxes -1.5 -1.4 -4.6
-------------------------------------------------
Result for the period 3.8 4.0 15.2
-------------------------------------------------
Other comprehensive income:
-----------------------------------------------------------------------------
Exchange diff. on translating -0.1 0.2 0.1
foreign operations
-----------------------------------------------------------------------------
Available-for-sale fin.assets 0.0 0.0 0.0
-----------------------------------------------------------------------------
Income tax rel. to components of other comprehensive income 0.0 0.0 0.0
-----------------------------------------------------------------------------
Total compr.income (owners) 3.7 4.2 15.4
-----------------------------------------------------------------------------
Earnings per share, e 0.02 0.03 0.10
-----------------------------------------------------------------------------
EPS, diluted, e 0.02 0.03 0.10
-----------------------------------------------------------------------------
BALANCE SHEET 31/03/2011 31/03/2010 31/12/2010
ASSETS
-----------------------------------------------------------------------
Intangible assets 16.5 14.7 16.0
-----------------------------------------------------------------------
Tangible assets 7.7 5.4 7.5
-----------------------------------------------------------------------
Goodwill 19.4 19.4 19.4
-----------------------------------------------------------------------
Other financial assets 5.9 3.5 6.0
-----------------------------------------------------------------------
Non-current assets total 49.6 43.0 48.8
-----------------------------------------------------------------------
Inventories 0.3 0.4 0.4
-----------------------------------------------------------------------
Other receivables 26.9 30.2 29.7
-----------------------------------------------------------------------
Available-for-sale financial assets 18.2 15.6 16.8
-----------------------------------------------------------------------
Cash and bank accounts 19.0 20.4 16.2
-----------------------------------------------------------------------
Current asset total 64.4 66.6 63.1
-----------------------------------------------------------------------
Total 114.1 109.6 111.9
-----------------------------------------------------------------------
SHAREHOLDERS' EQUITY 31/03/2011 31/03/2010 31/12/2010
AND LIABILITIES
-----------------------------------------------------------------
Equity 46.1 42.0 51.4
-----------------------------------------------------------------
Other non-current 2.2 2.4 2.2
-----------------------------------------------------------------
Deferred revenues 7.9 7.1 7.8
-----------------------------------------------------------------
Non-current liabilities total 10.1 9.5 10.0
-----------------------------------------------------------------
Other current 28.4 28.0 21.1
-----------------------------------------------------------------
Deferred revenues 29.6 30.1 29.4
-----------------------------------------------------------------
Current liabilities total 57.9 58.1 50.4
-----------------------------------------------------------------
Total 114.1 109.6 111.9
-----------------------------------------------------------------
CASH FLOW STATEMENT 31/03/2011 31/03/2010 31/12/2010
--------------------------------------------------------------------------------
Cash flow from operations 7.1 6.9 23.2
--------------------------------------------------------------------------------
Cash flow from investments -2.6 -3.0 -11.5
--------------------------------------------------------------------------------
Cash flow from financing 0.0 -1.9 -13.2
activities 1)
--------------------------------------------------------------------------------
Change in cash 4.5 2.0 -1.5
--------------------------------------------------------------------------------
Cash and bank at 1 Jan 32.5 33.9 34.3
--------------------------------------------------------------------------------
Change in net fair value of 0.0 0.0 0.0
Available-for-sale
--------------------------------------------------------------------------------
Cash and bank at end of period 37.1 35.9 32.8
--------------------------------------------------------------------------------
Statement of changes in shareholders' equity
Share Share Un- Trea- Retain Assets Transl Total
capita prem- restrict sury - avail. .
l ium - shares ed f.sale diff.
fund ed earn-
equity- ings
reserve
--------------------------------------------------------------------------------
Equity on: 1.6 0.2 3.2 -7.5 54.1 -0.2 51.4
31.12.2010
--------------------------------------------------------------------------------
Total 3.8 -0.1 3.7
comprehensive
income
for the year
--------------------------------------------------------------------------------
Dividend -9.3 -9.3
--------------------------------------------------------------------------------
Other change
--------------------------------------------------------------------------------
Exercise of
options
--------------------------------------------------------------------------------
Treasury shares
--------------------------------------------------------------------------------
Cost of 0.2 0.2
share based
payments
--------------------------------------------------------------------------------
Equity on 1.6 0.2 3.2 -7.5 48.8 0.1 -0.2 46.1
31.3.2011
--------------------------------------------------------------------------------
NOTES
1) Cash flow from financing
Dividend for year 2010 0.06 euro per share totaling 9,253,915.80 euro was paid
on 12th April 2011. In 2010, paid dividend totaled 9,310,086.12 euro.
Key ratios 2011 2010 2010
----------------------------------------------------
3 m 3 m 12 m
----------------------------------------------------
Operating result, % of revenues 16.2 17.7 15.2
----------------------------------------------------
ROI, % 47.6 51.3 42.5
----------------------------------------------------
ROE, % 31.1 35.4 30.3
----------------------------------------------------
Equity ratio, % 60.4 58.2 69.1
----------------------------------------------------
Debt-to-equity ratio, % -79.7 -84.7 -63.2
----------------------------------------------------
Earnings per share (EUR) 0.02 0.03 0.10
----------------------------------------------------
Earnings per share diluted 0.02 0.03 0.10
----------------------------------------------------
Shareholders' equity 0.29 0.27 0.33
per share, e
----------------------------------------------------
P/E ratio 23.6 24.2 23.1
----------------------------------------------------
Capitalized expenditures (Me) 2.5 2.9 10.4
----------------------------------------------------
Contingent liabilities 16.5 19.4 17.6
----------------------------------------------------
Personnel, average 830 832 835
----------------------------------------------------
Personnel, end of period 851 836 812
----------------------------------------------------
Segment information
The Group has only one segment; data security.
Quarterly development 1/10 2/10 3/10 4/10 1/11
----------------------------------------------------
Revenues 31.4 32.3 32.0 34.4 34.1
----------------------------------------------------
Cost of revenues 2.0 1.9 2.2 2.0 1.8
----------------------------------------------------
Gross margin 29.4 30.4 29.9 32.4 32.3
----------------------------------------------------
Other operating income 0.3 0.2 0.2 0.3 0.4
----------------------------------------------------
Sales and marketing 14.4 15.4 13.9 15.9 14.8
----------------------------------------------------
Research and 7.8 8.3 8.2 10.2 9.4
development
----------------------------------------------------
Administration 1.9 2.1 2.1 3.0 3.0
----------------------------------------------------
Operating result 5.5 4.9 5.9 3.6 5.5
----------------------------------------------------
Financial net -0.1 0.2 -0.4 0.2 -0.2
----------------------------------------------------
Result before taxes 5.5 5.2 5.5 3.7 5.3
----------------------------------------------------
Geographical information
Revenue 1-3/2011 1-3/2010
-------------------------------------
Nordic countries 11.4 10.4
-------------------------------------
Rest of Europe 15.3 14.5
-------------------------------------
North America 3.4 2.8
-------------------------------------
Rest of the world 4.0 3.7
-------------------------------------
Total 34.1 31.4
-------------------------------------
© 2024 Nasdaq, Inc. All Rights Reserved |