2011-04-29 07:30:00 CEST
2011-04-29 07:30:08 CEST
REGULATED INFORMATION
Tecnomen Lifetree Oyj - Interim report (Q1 and Q3)
Tecnotree Corporation Interim Report 1 January - 31 March 2011 (unaudited)
Tecnotree Corporation
Stock Exchange Release
April 29, 2011 at 8.30 am
Low net sales in quarter but encouraging order book
Net sales in the first quarter of the year, EUR 10.6 million, were EUR 3.5
million less than in the corresponding period in the previous year (EUR 14.1
million). The cash flow after investments was EUR -6.7 (0.6) million. The
adjusted operating result* was EUR -4.9 (-0.6) million. The order book at the
close of the period stood at EUR 22.1 million (31 December 2010: EUR 14.3
million).
KEY FIGURES 1-3/2011 1-3/2010 1-12/2010
Net sales, MEUR 10.6 14.1 60.7
Adjusted operating result, MEUR* -4.9 -0.6 -2.5
Operating result, MEUR -8.3 -1.9 -8.1
Result before taxes, MEUR -7.8 -2.5 -9.4
Result for the period -8.1 -2.8 -11.0
Earnings per share, basic. EUR -0.11 -0.04 -0.15
Order book, MEUR 22.1 21.9 14.3
Cash flow after investments, MEUR -6.7 0.6 -10.6
Change in cash and cash equivalents, MEUR -3.7 0.6 -9.8
Cash and cash equivalents, MEUR 12.8 27.2 16.7
Equity ratio % 61.3 66.2 66.4
Net gearing % 13.7 -11.5 3.3
Personnel at end of period 914 759 858
* 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
1-3/2011 and the figures for comparison are for the corresponding period
1-3/2010.
President and CEO Kaj Hagros:
”During the first quarter of 2011 revenue fell to EUR 10.6 million compared to
EUR 14.1 million in the same period last year. Middle East and Africa produced
higher revenue compared to 2010 while other regions fell short. The first
quarter typically produces lower revenue compared to subsequent quarters, but
in 2011 the period was a disappointment. This is related to three factors.
Firstly, some maintenance contracts were still being negotiated and were not
yet executed during the period. Secondly, we faced severe hardware delivery
delays from our supplier, causing major project delays under circumstances
beyond our control, hence postponing revenue recognition. Thirdly, the rapid
USD/EUR exchange rate change resulted in a revenue adjustment. By large, these
events however are within quarterly variation and do not call for an update to
the full year prospects. Order intake has developed favorably, and the order
book grew to EUR 22.1 million from EUR 14.3 million at December 31st, 2010.
After the end of the quarter Tecnotree has announced new orders totalling EUR
5.8 million and we confidently expect this positive momentum to continue in
Q2.”
SALES AND NET SALES
Tecnotree's net sales in the review period were EUR 10.6 (14.1) million and
decreased 25.1 per cent.
EUR 4.4 million of sales in the review period have been recognised by stage of
completion (IAS 11 Construction Contracts) and EUR 6.2 million on delivery (IAS
18 Revenues).
NET SALES BY MARKET AREA 1-3/2011 1-3/2010 1-3/2011 1-3/2010
MEUR MEUR % %
Americas (North, Central and South 1.7 4.5 16.0 31.7
America)
Europe 2.0 2.0 18.9 14.5
MEA (Middle East and Africa) 6.5 5.9 61.3 41.4
APAC (Asia and Pacific) 0.4 1.8 3.8 12.4
TOTAL 10.6 14.1 100.0 100.0
CONSOLIDATED ORDER BOOK 31.3.2011 31.12.2010 31.3.2011 31.12.2010
MEUR MEUR % %
Americas (North, Central and South 4.0 1.5 18.1 10.5
America)
Europe 3.9 2.6 17.6 17.9
MEA (Middle East and Africa) 13.5 9.3 61.1 65.4
APAC (Asia and Pacific) 0.7 0.9 3.2 6.3
TOTAL 22.1 14.3 100.0 100.0
Maintenance and service sales totalled EUR 5.9 (6.6) million or 55.9 per cent
(47.1 %) of net sales.
RESULT ANALYSIS
Tecnotree's business operations are based on project sales. The income and
costs recorded for these vary considerably from one quarter to another. For
this reason it is important to base an examination of the profitability of the
company on the result for more than one quarter.
INCOME STATEMENT, KEY FIGURES, MEUR 1-3/2011 1-3/2010 1-12/2010
Net sales 10.6 14.1 60.7
Other operating income 0.0 0.0 0.0
Operating costs excluding product -15.5 -14.7 -63.2
development capitalisation and
one-time costs
Adjusted operating result, MEUR -4.9 -0.6 -2.5
Product development capitalisation 0.0 0.2 0.6
Product development amortisation -1.8 -1.4 -6.1
One-time costs -1.6 0.0 0.0
Operating result -8,3 -1.9 -8.1
Result before taxes -7.8 -2.5 -9.4
The adjusted operating result was down EUR 4.3 million from the previous year.
This was due in particular to the EUR 3.5 million decline in net sales.
Capitalisation of research and development costs and amortisation of these had
the net impact of weakening the result by EUR 0.5 million compared to the
corresponding period in the previous year.
The operating result for the review period includes one-time costs of EUR 1.6
million for settling the law suit brought against the company early in the
year. EUR 0.5 million of these costs have been paid and a provision has been
made for the remaining EUR 1.1 million. The compensation is subject to the
terms and conditions of the agreement.
Taxes for the period totalled EUR 0.2 (0.3) million, including the following
items:
TAXES IN INCOME STATEMENT, MEUR 1-3/2011 1-3/2010 1-12/2010
Withholding tax expenses in parent company -0.4 -0.3 -1.7
Income taxes on the results of Group companies -0.4 -0.3 -1.5
Deferred tax asset based on tax allowances in 0.2 0.1 0.8
India
Change in deferred tax liability based on:
- R&D capitalisation 0.6 0.3 1.1
- dividend tax in India -0.2 -0.1 -0.8
Other items -0.0 0.1 0.5
TAXES IN INCOME STATEMENT, TOTAL -0.2 -0.3 -1.6
Earnings per share were EUR -0.11 (-0.04). Equity per share at the end of the
period was EUR 0.83 (EUR 1.07).
FINANCING AND INVESTMENTS
Tecnotree's liquid funds totalled EUR 12.8 (31.12.2010: 16.7) million. The
change in cash and cash equivalents for the review period was EUR -3.7 million.
The balance sheet total on 31 March 2011 stood at EUR 100.6 (120.2) million.
Interest-bearing liabilities were EUR 22.7 (18.9) million. The net debt to
equity ratio (net gearing) was 13.7 per cent (-11.5 %). The balance sheet
structure remained strong and the equity ratio on 31 March 2011 was 61.3 per
cent (66.2 %).
Tecnotree's gross capital expenditure during the review period, excluding the
capitalisation of development costs, was EUR 0.3 (0.1) million or 2,8 per cent
(0.9 %) of net sales.
Financial income and expenses (net) during the review period totalled EUR 0.5
(-0.6) million. The change from the comparative period is due mainly to the
positive change in loan interest hedging in the first quarter.
FINANCIAL INCOME AND EXPENSES, MEUR 1-3/2011 1-3/2010 1-12/2010
Interest income 0.0 0.0 0.2
Exchange rate gains 0.2 0.1 0.4
Other financial income 0.4 0.2 0.5
FINANCIAL INCOME, TOTAL 0.6 0.3 1.1
Interest expenses -0.2 -0.4 -0.8
Exchange rate losses -0.0 -0.5 -1.7
Other financial expenses -0.0 -0.0 0.0
FINANCIAL EXPENSES, TOTAL -0.2 -0.8 -2.4
CHANGE IN WORKING CAPITAL, MEUR (increase - / 1-3/2011 1-3/2010 1-12/2010
decrease +)
Change in trade receivables -3.4 3.2 2.1
Change in other short-term receivables 4.2 -1.8 -6.5
Change in inventories -0.0 0.2 0.3
Change in trade payables 0.0 1.3 3.9
Change in other current liabilities -1.5 -1.1 -7.6
CHANGE IN WORKING CAPITAL, TOTAL -0.7 1.8 -7.7
The company has receivables totalling EUR 5.8 million from a government owned
customer in the MEA region, for which impairment totalling EUR 0.9 million has
been booked in 2010 and EUR 1.0 million in the review period.
SEGMENT INFORMATION
The operating segments under IFRS 8 reported by Tecnotree are the geographical
areas, which are Americas (North, Central and South America), Europe, MEA
(Middle East and Africa), and APAC (Asia Pacific). This is because their
results are monitored separately in the company's internal financial reporting.
Tecnotree's chief operating decision maker, as referred to in IFRS 8, is the
Group's management board.
Net sales and the result for the operating segments are presented based on the
location of customers. The result for the operating segments includes the costs
that can be allocated to the segments on a reasonable basis. Common costs for
the whole Group as well as taxes and financial items are not allocated.
GEOGRAPHICAL AREAS
Tecnotree Group operates in the following geographical areas: Americas (North,
Central and South America), Europe, MEA (Middle East and Africa) and APAC (Asia
Pacific).
Americas (North, Central and South America)
Developments in sales and the order book in Latin America were clearly weaker
than in the corresponding period in the previous year. This had been foreseen,
however, for the figures fell short of business plan targets only because of
unfavourable fluctuations in exchange rates and because a single third party
product delivery was delayed. Several expansion projects are underway in the
region, as well as projects applying the products developed in India. The
number of new expansion and new solution delivery projects by operators in the
region has continued to pick up encouragingly.
Europe
Net sales in the Europe region fell short of the figure for the previous year,
but exceeded business plan targets. Good progress has been made with delivery
projects and income recognition for them is on schedule. The success rate for
winning system update and expansion contracts with existing customers in Europe
has been high. Capital expenditure by European operators looks to be at roughly
the same level as in the previous year, but competition is tough, especially
for messaging systems, and this can be seen in intense pressure to reduce
prices.
MEA (Middle East and Africa)
Sales and the order book increased from the previous year in the Middle East
and Africa. Demand for invoicing, customer relations management and managed
services solutions remained strong. The number of new solution delivery
projects by operators is declining slightly, but on the other hand the number
of expansion and upgrade projects is on the increase. Tecnotree's considerable
customer base in the region places it in a strong position to take advantage of
these developments.
APAC (Asia and Pacific)
Sales in the APAC region fell from the previous year. Business at the start of
the year focused on renewing annual service contracts, and this was successful.
Relatively few new solution delivery projects are underway in the region, so
Tecnotree's operations have concentrated on expansions and upgrades for
existing customers and on winning new customer accounts through sub-system
solutions that are of strategic importance.
RESEARCH AND DEVELOPMENT
Research and development costs during the review period totalled EUR 3.4 (3.3)
million, corresponding to 32.3 per cent (23.7 %) of net sales. EUR 0.0 (0.2)
million of development costs were capitalised. At the end of review period,
Tecnotree does not have any open capitalised research and development projects.
Capitalised costs are amortised over 3-5 years from the start of commercial
use. R&D costs of EUR 1.8 (1.5) million were amortised during the review
period.
PERSONNEL
At the end of March 2011 Tecnotree employed 914 (31.12.2010: 858) persons, of
whom 73 (31.12.2010: 70) worked in Finland and 841 (31.12.2010: 788) elsewhere.
The company employed on average 873 (756) people during the review period.
Personnel by country were as follows:
1-3/2011 1-3/2010 1-12/2010
Personnel, at end of period 914 759 858
Finland 73 80 70
Ireland 60 68 64
Brazil 48 47 47
India 683 513 625
Other countries 50 51 52
Personnel, average 873 756 797
Personnel expenses before R&D capitalisation 8.4 7.0 29.3
(MEUR)
TECNOTREE SHARES AND SHARE CAPITAL
At the end of March 2011 the shareholders' equity of Tecnotree Corporation
stood at EUR 61.2 (31.12.2010: 72.1) million and the share capital was EUR 4.7
million. The total number of shares was 73,630,977. The company held 134,800 of
these shares, which represents 0.18 per cent of the company's total number of
shares and votes. Equity per share was EUR 0.83 (31.12.2010 0.98).
A total of 7.981.953 Tecnotree shares (EUR 3.628.957) were traded on the
Helsinki Exchanges during the period 3 January - 31 March 2011, representing
10.8 per cent of the total number of shares.
The highest share price quoted in the period was EUR 0.63 and the lowest EUR
0.36. The average quoted price was EUR 0.51 and the closing price on 31 March
2011 was EUR 0.41. The market capitalisation of the share stock at the end of
the period was EUR 30.188.701.
ANNUAL GENERAL MEETING
The annual general meeting of Tecnotree Corporation held on 23 March 2011
confirmed the financial statements and the consolidated financial statements
for the financial year 2010 and discharged the Board of Directors and the CEO
from liability for 2010. The Annual General Meeting resolved, in accordance
with the proposal of the Board of Directors, that no dividend be paid for the
year 2010, and the parent company´s loss for the financial year, EUR
10,389,877.77, be covered by non-restricted equity reserves.
Board of Directors
The Annual General Meeting confirmed that the Board of Directors will consists
of eight members. Atul Chopra, Johan Hammarén, Pentti Heikkinen, Harri Koponen,
Ilkka Raiskinen, Christer Sumelius, Hannu Turunen and David White were
re-elected as Board members. The Board members were elected for a period of
office expiring at the end of the first Annual General Meeting following their
election. At the organizational meeting of the Board of Directors following the
Annual General Meeting, Harri Koponen was elected as Chairman and Ilkka
Raiskinen as Vice Chairman of the Board of Directors.
The Annual General meeting resolved that the annual remuneration for the
Chairman of the Board of Directors is EUR 50,000, for the Vice-Chairman EUR
30,000 and for ordinary Board members EUR 23,000. In addition it was decided
that a fee of EUR 800 is paid to the Chairman and EUR 500 to other Board
members for attendance at Board and Committee meetings.
Auditors
KPMG Oy Ab, Authorised Public Accountants, will continue as the Company´s
auditor, with Sixten Nyman, APA, as principal auditor, until the end of the
following Annual General Meeting.
CURRENT AUTHORISATIONS
The Annual General Meeting held on 23 March 2011 authorised the Board of
Directors to decide on the acquisition of a maximum of 7,360,000 of the
Company's own shares. Own shares may be acquired with unrestricted
shareholders' equity otherwise than in proportion to the holdings of the
shareholders through public trading of the securities on NASDAQ OMX Helsinki Oy
at the market price of the shares in public trading at the time of the
acquisition. Own shares may be acquired for the purpose of developing the
capital structure of the Company, carrying out corporate acquisitions or other
business arrangements to develop the business of the Company, financing capital
expenditure, to be used as part of the Company's incentive schemes, or to be
otherwise retained in the possession of the Company, disposed of or nullified
in the extent and manner decided by the Board of Directors. The authorisation
is valid for one year from the decision of the Annual General Meeting. The
Board of Directors has not exercised this authorisation during the review
period.
Furthermore, the Annual General Meeting authorised the Board of Directors to
decide to issue and/or to convey a maximum of 17,800,000 new shares and/or the
Company's own shares either against payment or for free. New shares may be
issued and the Company's own shares may be conveyed to the Company's
shareholders in proportion to their current shareholdings in the Company or
waiving the shareholder's pre-emption right, through a directed share issue if
the Company has a weighty financial reason to do so. The Board of Directors may
also decide on a free share issue to the Company itself. The Board of Directors
is, within the authorization, authorized to grant the special rights referred
to in Chapter 10, Section 1 of the Companies Act. The authorisation is valid
for one year from the decision of the Annual General Meeting. The Board of
Directors has not exercised this authorisation during the review period.
STOCK OPTION PROGRAMMES
During the review period the company had in force the 2006 and 2009 stock
option programmes. The exercise period for the 2009A options ended on 31 March
2011.
At its meeting on 9 March 2011, the company's Board of Directors allocated
altogether 575,000 2006C options, 315,000 2009B options, and 445,000 2009C
options.
The state of the options on 31 March 2011 was as follows:
Option series Maximum number of Number of options Exercise Exercise
options granted period price
2006B 173,000 173,000 1.4.2008-30.4 1.32
.2011
2006C 667,000 575,000 1.4.2009-30.4 0.98
.2012
Total 840,000 748,000
2009A 1,026,005 686,171 1.4.2009-31.3 0.86
.2011
2009B 2,394,013 1 411,206 1.4.2010-31.3 0.86
.2012
2009C 3,420,018 2,000,178 1.4.2011-31.3 0.86
.2013
Total 6,840,036 4,097,555
2006 and 2009 7,680,036 4,845,555
Total
Some of the 2009B and 2009C stock options become available to key personnel
based on a performance appraisal. The stock options are part of the incentive
and commitment scheme for key personnel.
Altogether 7,680,036 stock options remained on 31 March 2011 of all the
company's stock options in circulation. The shares that could be subscribed on
the basis of these stock options accounted for a maximum of 9.45 % of the
Company's shares and the votes carried by the shares after any increase in
share capital. On 31 March 2011 the Company still held 4,169,477 of all the
current stock options. The issued stock options had a maximum diluting effect
on 31 March 2011 of 6.17 %.
The company's Board of Directors may issue stock options such that their
maximum dilution shall not exceed 8.50 %.
RISKS AND UNCERTAINTY FACTORS
The greatest risks in Tecnotree's operations are related to major customer and
partner relationships, to agreements made with these, and to the correct timing
of product development decisions.
Tecnotree's largest customers are much bigger businesses than the company
itself and the five largest customers account for more than half of net sales.
The relationship between the company and its major customers is one of
interdependence, which poses a potential risk but also offers significant new
business opportunities.
Certain commitments are associated with the project and maintenance agreements
made by the company, and unforeseen costs may arise in the future from these
agreements. The company aims to limit these liabilities with limitation of
liability clauses in customer contracts. In addition the company has a current
global liability insurance to cover any liabilities that may materialise in
connection with customer projects.
Project deliveries result in large accounts receivable. Most of Tecnotree's net
sales come from developing countries and some of these contain political and
economic challenges. There is the risk of a considerable delay in the payment
of invoices in these countries and that Tecnotree will have to record credit
losses. The payment record of customers and the situation concerning trade
receivables are actively monitored and credit rating checks are made on new
customers before confirming an offer.
The company has receivables totalling EUR 5.8 million from a government owned
customer in the MEA region, for which impairment totalling EUR 0.9 million has
been booked in 2010 and EUR 1.0 million in the review period.
Changes in exchange rates create risks especially in sales activities. A
significant part of the company's net sales is in US dollars. The company
hedges its currency denominated net position for a maximum period of 12 months,
using currency forward contracts and currency options. Liquid funds are
invested, avoiding credit and liquidity risks, in money-market deposits and
short-term interest funds with a good credit rating.
Carrying out projects creates risks. They are contained for example in projects
that require new product development, where creating new product features may
prove more difficult than anticipated. Another problem with project sales
arises from variations in net sales and profit during the different quarters of
the year. Forecasting these variations is often difficult.
Tecnotree operates in a rapidly changing sector. When making R&D decisions
there is the risk that the choice made may not bring the expected returns.
The acquisition of Tecnotree Convergence Limited opened up many new
opportunities for Tecnotree. Taking advantage of these requires various changes
in sales and R & D activities and in the organisation, and there are risks
relating to the success of these changes. The amount paid for the acquisition
and the resulting goodwill also involve risks.
Tecnotree's risks and uncertainties in the near future relate to major projects
that are under negotiation and to their timing, to receivables and to changes
in foreign exchange rates.
EVENTS AFTER THE END OF PERIOD
After the end of the quarter Tecnotree has announced new orders totalling EUR
5.8 million.
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 be similar to 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 will publish its following interim reports as follows:
1-6/2011 Wednesday, 10 August
1-9/2011 Wednesday, 26 October
Tecnotree is holding a conference for analysts and the media to announce its
results for the first quarter of 2011 at 10.00 am on 29 April 2011 in the
Pavilion conference room at the Scandic Hotel Simonkenttä, Simonkatu 9,
Helsinki. The interim review will be presented by CFO Tuomas Wegelius 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
Mr Kaj Hagros, President and CEO, tel. +358 (0)40 8491749
Mr Tuomas Wegelius, CFO, tel. +358 (0)400 433 228
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Main media
www.tecnotree.com
TABLE SECTION
The financial figures in the income statement, balance sheet and key indicators
are presented in million euros. The figures shown here have been calculated
using exact values.
CONSOLIDATED INCOME STATEMENT, MEUR Note 1-3/20 1-3/20 1-12/2
11 10 010
NET SALES 2 10.6 14.1 60.7
Other operating income 0.0 0.0 0.0
Materials and services -1.7 -2.1 -10.1
Employee benefit expenses -8.4 -7.1 -29.1
Depreciation, amortisation and impairment charges -2.6 -2.1 -8.7
Other operating expenses -6.1 -4.8 -20.8
OPERATING RESULT 2 -8.3 -1.9 -8.1
Financial income 0.6 0.3 1.1
Financial expenses -0.2 -0.8 -2.4
RESULT BEFORE TAXES 2 -7.8 -2.5 -9.4
Income taxes -0.2 -0.3* -1.6
RESULT FOR THE PERIOD -8.1 -2.8 -11.0
Allocated to:
Equity holders of parent -8.1 -2.8 -11.0
company
Non-controlling 0.0 -0.0 -0.0
interest
Earnings per share calculated from the profit
attributable to equity holders of parent company:
Earnings per share, basic, EUR -0.11 -0.04 -0.15
Earnings per share, diluted, EUR -0.11 -0.04 -0.15
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, 1-3/20 1-3/20 1-12/2
MEUR 11 10 010
RESULT FOR THE PERIOD -8.1 -2.8 -11.0
Other comprehensive income:
Translation differences from -2.9 4.7 5.8
foreign operations
Tax relating to components of 0.1 0.0 -0.1
other comprehensive income
Other comprehensive income, net of tax -2.8 4.7 -5.7
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -10.9 1.9 -5.3
Allocated to:
Equity holders of parent -10.9 1.9 -5.3
company
Non-controlling 0.0 -0.0 -0.0
interest
* The figures for the comparative periods have changed due to adjustments to
the purchase price calculation of Tecnotree India
CONSOLIDATED BALANCE SHEET Note 31.3.2011 31.3.2010 31.12.2010
Assets
Goodwill 20.6 21.4* 21.6
Other intangible assets 15.7 22.7* 18.0
Tangible assets 6.6 7.2 6.8
Deferred tax assets 2.5 1.8 2.5
Other non-current trade and other 0.7 0.9 0.7
receivables
Current assets
Inventories 1.1 1.2 1.0
Trade receivables 19.4 17.1 17.3
Other receivables 19.7 19.9 24.2
Investments 1.5 0.9 0.7
Cash and cash equivalents 12.8 27.2 16.7
TOTAL ASSETS 100.6 120.2 109.7
Shareholders' equity 61.2 79.0* 72.1
Non-current liabilities
Deferred tax liabilities 2.8 3.9* 3.3
Non-current interest-bearing 14.5 16.7 14.5
liabilities
Other non-current liabilities 0.4 0.3 0,4
Current liabilities
Current interest-bearing 8.2 2.3 5.2
liabilities
Trade payables and other liabilities 13.4 18.0 14.2
EQUITY AND LIABILITIES, TOTAL 100.6 120.2 109.7
* The figures for the comparative periods have changed due to adjustments to
the purchase price calculation of Tecnotree India
CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY, MEUR
A = Share capital
B = Share premium fund
C = Own shares
D = Translation differences
E = Invested non-restricted equity reserve
F = Other reserves
G = Retained earnings
H = Total equity attributable to equity holders of parent company
I = Non-controlling interest
J = Total shareholders' equity
MEUR A B C D E F G H I J
Shareholders' 4.7 0.8 -0.1 6.1 12.6 29.4 18.5 72.1 0.1 72.1
equity
1 Jan. 2011
Covering of loss -10.4 10.4
Share-based payments 0.0 0.0 0.0
Other adjustments 0.0 -0.0
Total comprehensive -2.9 -8.1 -10.9 0.0 -10.9
income for the
period
Shareholders' equity 4.7 0.8 -0.1 3.2 12.6 19.0 20.8 61.2 0.1 61.2
31 Mar. 2011
MEUR A B C D E F G H I J
Shareholders' 4.7 0.8 -0.1 0.4 12.6 52.1 6.6 77.1 0.1 77.2
equity
1 Jan. 2010
Share issue -22.7 22.7
Share-based payments 0.2 0.2 0.2
Other adjustments -0.1 -0.1 -0.1
Total comprehensive 4.7 -2.8 1.9 0.0 1.9
income for the period
Shareholders' equity 4.7 0.8 -0.1 5.1 12.6 29.4 26.4 79.0 0.0 79.0
31 Mar. 2010
CONSOLIDATED CONDENSED CASH FLOW STATEMENT, MEUR 1-3/2011 1-3/2010 1-12/2010
Cash flow from operating activities
Result for the period -8.1 -2.8 -11.0
Adjustments of the result 4.2 1,8 11.5
Changes in working capital -0.7 1,8 -7.7
Interest paid -0.2 -0.1 -0.3
Interest received 0.1 0.0 0.5
Income taxes paid -0.9 -0.7 -3.2
Net cash flow from operating activities -5.5 0.1 -10.2
Cash flow from investing activities
Investments in intangible assets -0.2 -0.2 -0.8
Investments in tangible assets -0.1 -0.1 -0.9
Investments in other securities -0.9 -0.1
Proceeds from disposal of other securities 0.9 0.9
Interest received from investments 0.0 0.0
Dividends received from investments 0.1 0.1 0.3
Net cash flow from investing activities -1.1 0.5 -0.4
Cash flow from financing activities
Borrowings received 3.0 3.0
Repayments of borrowings 0.0 -2.2
Dividend paid
Net cash flow from financing activities -3.0 0.8
Increase (+) and decrease (-) in cash and cash -3.7 0.6 -9.8
equivalents
Cash and cash equivalents at beg. of period 16.7 25.7 25.7
Impact of changes in exchange rates -0.2 0.9 1.1
Change in fair value of investments -0.0 0.0 -0.3
Cash and cash equivalents at end of period 12.8 27.2 16.7
1. ACCOUNTING PRINCIPLES FOR THE INTERIM REPORT
This interim report has been prepared in accordance with the international
financial reporting standard IAS 34 Interim Financial Reporting. The formulas
for calculating the key figures presented and the accounting principles for the
interim report are the same as the principles published in the 2010 Annual
Report. The new and revised IFRS regulations that came into force on 1 January
2011 have not had a significant impact on the accounting principles and basis
for preparing the interim report.
2. SEGMENT INFORMATION
The operating segments under IFRS 8 reported by Tecnotree are the geographical
areas, which are Americas (North, Central and South America), Europe, MEA
(Middle East and Africa), and APAC (Asia Pacific). This is because their
results are monitored separately in the company's internal financial reporting.
Tecnotree's chief operating decision maker, as referred to in IFRS 8, is the
Group's management board.
Net sales and the result for the operating segments are presented based on the
location of customers. The result of the operating segments includes costs that
can be allocated to the segments on a reasonable basis, such as sales, customer
service and delivery costs. Product management, product development and
administrative costs, depreciation, taxes and financial items are not
allocated.
OPERATING SEGMENTS: 1-3/2011 1-3/2010 1-12/2010
NET SALES, MEUR
Americas 1.7 4.5 25.2
(North, Central and South America)
Europe 2.0 2.0 6.7
MEA (Middle East and Africa) 6.5 5.9 23.7
APAC (Asia Pacific) 0.4 1.8 5.1
TOTAL 10.6 14.1 60.7
3. CONSOLIDATED CONTINGENT LIABILITIES, MEUR 31.3.2011 31.3.2010 31.12.2010
Pledges given 0.1 0.1 0.1
Guarantees
On own behalf 1.1 0.6 1.0
Other liabilities
Restriction related to real estate in 0.4 0.4 0.4
Ireland
OTHER OPERATING LEASES, MEUR 31.3.2011 31.3.2010 31.12.2010
Minimum rents payable based on other leases
that cannot be cancelled:
Other operating leases
Less than one year 0.6 0.7 0.6
Between one and five years 0.4 0.5 0.5
4. INSIDER EVENTS
The operating result for the January-March period includes one-time costs of
EUR 1.6 million that are mentioned under ‘Result analysis'. The costs are
related to settling the law suit raised against the company at the beginning of
the year. EUR 1.3 million of these costs concern the company's insiders. The
insider events include compensation of EUR 0.4 million for settlement of
employment and share based payments of EUR 0.9 million. Compensation of EUR 0.2
million has been paid and a provision for EUR 1.1 million has been made. The
compensation is subject to the terms and conditions of the agreement.
5. CONSOLIDATED KEY FINANCIAL FIGURES 1-3/2011 1-3/2010 1-12/2010
Return on investment, % -34.7 -6.9* -7.4
Return on equity, % -48.4 -14.5* -14.7
Equity ratio, % 61.3 66.2* 66.4
Net gearing, % 13.7 -11.5 3.3
Investments, MEUR 0.3 0.1 1.8
% of net sales 2.8 0.9 3.0
Research and development, MEUR 3.4 3.3 13.1
% of net sales 32.3 23.7 21.7
Order book, MEUR 22.1 21.9 14.3
Personnel, average 873 756 797
Personnel, at end of period 914 759 858
* The figures for the comparative periods have changed due to adjustments to
the purchase price calculation of Tecnotree India
CONSOLIDATED KEY FIGURES PER SHARE 1-3/201 1-3/201 1-12/201
1 0 0
Earnings per share, basic, EUR -0.11 -0.04 -0.15
Earnings per share, diluted, EUR -0.11 -0.04 -0.15
Equity per share, EUR 0.83 1.07* 0.98
Number of shares at end of period, x 1,000 73,496 73,496 73,496
Number of shares on average, x 1,000 73,496 73,496 73,496
Share price, EUR
Average 0.51 0,92 0.79
Lowest 0.36 0,86 0.58
Highest 0.63 1,00 1.00
Share price at end of period, EUR 0.41 0,97 0.60
Market capitalisation of issued stock at end of 30.2 71,4 44.2
period, MEUR
Share turnover, million shares 8.0 3,6 16.6
Share turnover, % of total 10.8 4,9 22.6
Share turnover, MEUR 4.0 3,3 13.2
Price/earnings ratio (P/E) -4.0
QUARTERLY KEY FIGURES 1Q/11 4Q/10 Q3/10 2Q/10 1Q/10 4Q/09
Net sales, MEUR 10.6 14.0 13.3 19.3 14.1 13.5
Net sales, change % -25.1 3.3 0.5 28.7 22.8 -37.7
Adjusted operating result*** -4.9 -3.2 -0.7 2,0 -0,6 -2.0
% of net sales -46.3 -22.7 -5.1 10.2 -4.2 -14.7
Operating result, MEUR -8.3 -4.9 -2.0 0.7 -1.9 -8.5
% of net sales -78.1 -35.1 -14.7 3.8 -13.7 -63.0
Result before taxes, MEUR -7.8 -5.2 -1.8 0.0 -2.5 -8.6
Personnel at end of period 914 858 830 794 759 779
Earnings per share, basic, EUR -0.11 -0.07 -0.03 -0.01 -0.04 -0.10
Earnings per share, diluted, EUR -0.11 -0.07 -0.03 -0.01 -0.04 -0.10
Equity per share, EUR 0.83 0.98 1.03 1.11 1.07 1.05
Net interest-bearing liabilities, MEUR 8.4 2.4 2.2 -5.0 -9.1 -8.3
Order book, MEUR 22.1 14.3 20.1 21.0 21.9 11.7
*** Adjusted result = operating result before R & D capitalisation,
amortization of this and one-time costs. Details of these are given in the
section “Result analysis”.
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