2009-10-22 08:00:00 CEST
2009-10-22 08:00:04 CEST
REGULATED INFORMATION
F-Secure Oyj - Interim report (Q1 and Q3)
F-Secure Corporation - Interim Report January 1 - September 30, 2009
October 22, 2009 at 9.00 am
F-Secure Corporation - Interim Report January 1 - September 30, 2009
Solid profitability, Software as a Service business continued to drive growth,
integration of the acquired Steek SA proceeding on schedule
Highlights in Q3
- Total revenues grew by 9% reaching revenues of 31.1 million (Q308: 28.6m)
- Revenues from the operator business (ISPs, mobile operators and cable
operators) including Steek grew by 25% from Q308, reaching revenues of 15.4
million (12.3m)
- EBIT was 6.6 million; representing 21% of revenues (7.1m)
- Earnings per share was EUR 0.03 (EUR 0.04)
- Cash flow was 3.1 million positive excluding the acquisition cost and
share buy backs (5.3m positive)
- Acquisition of online storage company Steek SA was announced in July,
integration proceeds on schedule
- New version of F-Secure's internet security product, F-Secure Internet
Security 2010, was successfully launched to the markets in September
(This report is unaudited. Unless otherwise stated the comparisons refer to the
corresponding period a year ago. The currency is euro.)
Key figures 2009 2008 2008
Eur million 7-9 7-9 1-12
Revenues 31.1 28.6 113.0
Operating profit 6.6 7.1 24.3
% of revenues 21 % 25 % 22 %
Profit before taxes 6.7 7.5 26.4
Earnings per share (EUR) 0.03 0.04 0.13
At the end of period:
Deferred revenue 33.7 33.7 37.2
ROI, % 51% 37% 52%
ROE, % 36% 26% 36%
Equity ratio, % 70% 83% 71%
Debt-to-equity ratio, % -67% -125% -148%
Personnel, September 30 818 710 718
CEO Kimmo Alkio: “We are pleased to deliver solid profitability also for the
third quarter of 2009 even as our revenue growth was on the lower end of our
guidance mainly due to slowdown in traditional license business. Our Software
as a Service (SaaS) business through operators continues to be a solid growth
driver. Integration of the acquired Steek SA is proceeding well and is expected
to strengthen our position as the leading SaaS partner for operators in the
long run. During the quarter, our offering and market reach was strengthened
through the launch of our totally renewed Internet Security solution and
through the collaboration announced with Nokia's Booklet 3G mini-laptops.”
F-Secure business during January-September of 2009
For the first nine months of 2009 the total revenues were 93.4 million
(Jan.-Sep. 2008: 82.4m), growth of 13%. Revenue growth continued solid in the
operator business (including revenues from ISP's, cable, mobile operator
business and Steek business), up by 27% and totally 44.3m, and in the business
through the traditional channels, up by 3% and totally 49.1m. EBIT was 19.8
million (17.1m), representing 21% of revenues; 16% growth from the
corresponding period in 2008. Earnings per share were EUR 0.10 (EUR 0.09). Cash
flow from operations was 30.3 million negative (4.3m positive) and 12m positive
(15.2m) when excluding a paid dividend, share buy backs and the acquisition
cost. The Group deferred revenues decreased further to 33.7m at the end of
September (36.3m at the end of June 2009).
The Group total costs were 66.7 million (59.5m), representing 12% growth. The
Group also capitalized some of its R&D expenses according to accounting rules,
totaling 0.9m for the first nine months of 2009.
The financial results for the third quarter of 2009 were in line with the
guidance given in July (revenues 31-33 million, cost level not to exceed 23
million, excluding amortization from Steek acquisition); revenues for the third
quarter were 31.1m, showing growth of 9%. The costs were 22m, an increase of
14%, including Steek's running costs, amortization and integration activities.
EBIT was 6.6m; 21% of revenues.
The geographical breakdown of the revenues split as follows: Finland and
Scandinavia 35% (39%), Rest of Europe 46% (43%), North America 9% (9%) and Rest
of the World 10% (9%).
Operator channel in Q3
The Group's operator (ISPs, mobile operators and cable operators) business
continued to perform well. In the third quarter of 2009, the revenues through
the operator business partners totaled 15.4 million (Q308: 12.3m), representing
currently 49% of the Group total revenues (43%). Revenue growth was 25%
compared to the previous year. Revenues from the acquired Steek SA are included
in operator channel.
The Group's position in the operator business has remained strong. The company
currently has more than 200 partners in over 40 countries with an addressable
market of over 55 million broadband consumer customers. The Group has not lost
any of its existing partnerships, however, the number of partners may vary
subject to merger activity in the operator market. New partnerships gained were
mainly in Asia, including MTNL (India) and Smartone Vodafone (Hong Kong). The
main growth driver is increasing the take-up rates within the customers of the
Group's existing operator partners.
The Group's offering in Software as a Service model includes PC and mobile
security and after the acquisition of Steek SA, also a broad range of storage
based services. The Group sees that the acquisition of Steek improves the
Group's position in partnering with major operators globally. The acquisition
is also expected to strengthen the Group's portfolio of more attractive Value
Added Services to be offered to consumers through operators.
The total number of the Group's operator partners is significantly larger than
that of any other security service vendor. At the end of 2008 the Group's
operator partners held approximately 39% (37%) market share of total broadband
consumer connections in Europe, approximately 10% (10%) in North America and
approximately 13% (9%) in APAC excluding China (Source: estimates by Dataxis
and F-Secure).
Other channels in Q3
The traditional sales channels performed at the lower end of expectations. The
revenues were hit in addition to shortened renewal periods by a slowdown in new
license sales. This impact can also be seen in the decrease of deferred
revenues. There have not been any material changes in renewal rates during the
period. However, the current economic environment seems now to have more impact
on these channels than before.
During Q3, the revenues through traditional channels were 15.7 million (16.3m),
showing a decline of 3% from the corresponding period in 2008. These channels
represented 51% of the Group's total revenues (57%).
Mobile security in Q3
Co-operation with major handset manufacturers, including Nokia, and operators
such as Vodafone Group, TeliaSonera Group, T-Mobile International, Swisscom and
Elisa continued well during Q3. Currently, there are mobile operator
partnerships with more than 20 operators worldwide.
The investments for mobile security products development continues. F-Secure
Mobile Security product includes anti-virus and malware protection and firewall
capabilities as well as an anti-theft feature with remote lock, remote wipe and
theft control functionalities.
The revenues from the Mobile Security business are included in the above
mentioned channels and were about 3% of the Group's total quarterly revenues.
The acquisition of Steek SA
On July 10, 2009 the Group announced the acquisition of Steek SA, a leading
European software provider for online storage and data management solutions to
operators. Steek SA is recognized for its services that enable consumers to
store, share and manage personal digital content with PCs and mobile phones.
The acquisition is according to F-Secure's strategy to broaden Value Added
Service (VAS) offerings to consumers. This further strengthens F-Secure's
position as the leading Software as a Service (SaaS) partner for operators
globally. Both the acquired solutions and operator partnerships are highly
complementary to F-Secure's existing business. The combined operations are
expected to extend F-Secure's growth opportunities within the rapidly
developing fixed and mobile broadband services market.
Under the terms of the agreement, the cash and debt free price was EUR 27.5m
and an additional purchase price of a maximum of EUR 2.5m based on the
performance of the acquired business. The financial results of Steek have been
consolidated to the F-Secure's accounts from July onwards. The purchase price
allocation is based on valuation of intangible and tangible assets consisting
of e.g. software technology, workforce and customer relationships. More
detailed information on goodwill can be found in the financial tables below.
In the acquisition announcement in July, the management estimated that Steek
would improve the Group's operator revenues by 2-3 million and be slightly EPS
dilutive during the second half of 2009. For the longer term, the management
estimated the acquisition to improve the Group's operator revenues
significantly and to be EPS accretive already during 2010. Currently the
management estimates Steek's impact on Group's revenue growth to stay around
1.5 million and EPS dilutive in the second half of 2009.
The operator project pipeline has developed favorably; while the lead times
have been longer than anticipated, which is postponing revenues. Several cross
selling opportunities have already materialized, thus strengthening long term
growth opportunities. The Steek integration is proceeding well and on
schedule. In the long run, the management believes that the acquisition will
strongly support F-Secure's strategy to broaden Value Added Service (VAS)
offerings to consumers via operators.
During Q3 the Group has signed a new contract with Orange to provide a broad
range online storage related services across several countries. This contract
is expected to contribute to business as of 2010 and onwards. In addition,
Steek's operator partner network includes SFR (France), Virgin Media (UK), TDC
(Denmark), Singtel (Singapore) and Terra (Spain).
Products & Services
In September, F-Secure launched F-Secure Internet Security 2010, which is a
complete security solution to protect users from threats and to enable the safe
use of the Internet. According to performance tests by the independent testing
organization AV-Test.org, F-Secure Internet Security™ 2010 has 80% less overall
system impact and 60% faster virus scans than the previous version. The new
product also includes a new interface design. In connection with the launch of
Internet Security, F-Secure also renewed its brand commitment to “Protecting
the irreplaceable”, reflecting the importance that security of digital content
has in people's lives today.
In September, F-Secure and Nokia announced the extension on their collaboration
to include Internet Security on computers. Nokia Booklet 3G mini-laptops have
been preinstalled with F-Secure Internet Security 2010, the newest version of
F-Secure's flagship solution.
In June, F-Secure Mobile Security and its new advanced anti-theft feature was
made available for Windows Mobile phone users. The anti-theft feature includes
remote lock, remote wipe and theft control functionalities.
In May, F-Secure launched Online Backup to consumer customers through the
F-Secure eStore and retailers in Europe and North America. Online backup has
been available through selected Internet Service Provider partners since autumn
2008. In May, F-Secure Safe, a new value added offering that combines both
internet security and online backup as a new service, was launched in Germany.
In April, F-Secure launched a new version of its Protection Service for
Business (PSB), which is a comprehensive Security as a Service solution
specially designed for the needs of small and medium-sized companies. PSB 4.0
includes “in-the-cloud” technology to protect desktops and laptops. It also
provides comprehensive protection for servers, including rootkit detection.
This release also introduces high quality e-mail protection and spam control.
In February, F-Secure launched its F-Secure Mobile Security 5, which enables
smartphone users to experience the full potential of their devices without fear
of mobile threats. F-Secure Mobile Security includes combined real-time
antivirus functionality with a firewall, antitheft and antispyware for S60 5th
and 3rd Edition smartphones.
Market situation
There were no significant changes in the competitive landscape or in the
pricing levels during the third quarter. However, there have been signs of
increasing price competition in some countries. The Group's competitive
position in the operator channel has remained strong though the slower growth
in sales of fixed broadband connections by operators may have slowed down
growth of the Security as a Service business. The broadband market is at the
same time 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.
Personnel and organization
The Group's personnel totaled 818 at the end of September (Q308: 710, Q209:
752). The Group's number of personnel increased during the quarter, mainly
because of the recent acquisition and personnel increase in mainly sales and
marketing.
The Executive Team as of end of September consists of the following persons:
Kimmo Alkio (President and CEO), Ari Alakiuttu (Vice President, Human
Resources), Christophe Camborde (Vice President, Storage and Digital Content
business unit), Samu Konttinen (Vice President, Sales and Geographical
Operations), Pirkka Palomäki, (Chief Technology Officer), Antti Reijonen (Vice
President, Consumer Business and Marketing) and Taneli Virtanen (Chief
Financial Officer).
Financing and capital structure
The Group's financial position continued strong. The Group's equity ratio at
the end of June was 70% (83%). Gearing ratio was 68% negative (125% negative).
Cash flow for the first nine months of 2009 was 30.3 million negative (4.3m
positive) and 12m positive (15.2m) when excluding a paid dividend, share buy
backs and the acquisition cost. The financial income for the first nine months
was 0.9 million (1.3m).
The market value of the liquid assets of the Group on September 30, 2009 was 31
million (88.9m). The acquisition cost of Steek SA was paid from the Group's
liquid funds in July.
The changes in exchange rates of JPY had some positive impact and changes in
USD, GBP and SEK had some negative impact on revenues and results for the first
nine month of 2009.
Capital expenditure
The Group's capital expenditure for the first nine months was 35.3 million
(2.4m), consisting mainly of the acquisition cost, IT hardware and software as
well as capitalization of some research and development expenses.
Capital management and repurchase of own shares
The objective of the Group'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.
In its meeting on August 26, 2009, F-Secure's Board of Directors decided to
start repurchase of its own shares based on the authorization of the Annual
General Meeting of 2009. The maximum number of shares to be repurchased is
1.500.000 shares, representing 1% of all the shares issued by the Company.
The shares are purchased through public trading on the NASDAQ OMX Helsinki Ltd.
in accordance with its rules and at market price. The own shares will be
purchased to be used for making acquisitions or implementing other arrangements
related to the Company's business, to improve the Company's financial
structure, to be used as part of the incentive compensation plan or for the
purpose of otherwise assigning or cancelling the shares.
Since the end of August, F-Secure has bought 172 750 shares. At the end of
September, F-Secure held a total of 1 163 682 own shares including all own
shares bought.
Shares, shareholders' equity and option programs
In September, a total of 54,625 F-Secure shares were subscribed for with the A
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 54,625. The corresponding
increase in the share capital was registered in the Finnish Trade Register on
September 2, 2009. F-Secure received as subscription price a total amount of
EUR 74,290.00, which was recorded in the fund for company's distributable
equity. As a result of the registering the total number of shares is
156,825,032. The trading with the new shares will commence on September 3,
2009. The subscription period for the 2005A warrants began on March 3, 2008.
In January, a total of 3,333 F-Secure shares were subscribed for with the A3
warrants, a total of 171,340 F-Secure shares were subscribed for with the A1/A2
warrants, a total of 162,650 F-Secure shares were subscribed for with the
B1/B2/B3 warrants and a total of 355,923 F-Secure shares were subscribed for
with the C1/C2/C3 warrants attached to the F-Secure 2002 Warrant Plan. In
aggregate, the number of shares was increased by 693,246. The Group received as
a subscription price a total amount of EUR 661,219.02, which was recorded in
the fund for the company's distributable equity.
The F-Secure 2005A stock option program is listed on the NASDAQ OMX Helsinki
Ltd. The total number of shares is currently 156,825,032. The corresponding
number of shares diluted would be 161,207,470 including all stock option
programs. The company's registered shareholders' equity is EUR 1.551.311,18.
Corporate Governance
The Group 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
the Group's web pages.
Risks and uncertainties
Despite the current economic conditions, the Group has not seen material
changes to the risks and uncertainties during the reporting period. However,
the current situation in the global economy has impacted the traditional
license business sales more than in previous quarters. This is seen as slow
down in new license sales in addition to shortened renewal periods. The slower
growth in sales of fixed broadband connections by operators may also have
impact on security service sales. As the uncertainty in the economic
environment has continued, the Group continues to monitor closely the
development in the economic and financial markets.
The Group's risks and uncertainties are related to, among other things, the
competitiveness of the Group'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 the
Group'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, service quality level
requirements and the overall development of value added security solutions in
the Internet Service Provider and mobile operator market.
As stated in the previous interim releases, F-Secure Inc. the U.S. subsidiary
of F-Secure Corporation has been named as a defendant in a patent infringement
lawsuit filed in a state court in the U.S in December 2008.
F-Secure investigates the claims and will defend itself accordingly. The Group
does not expect any material impact on its financials from this lawsuit.
Long-term objectives
The Security software market as a total is attractive globally. The market is
over $10 billion industry (Source: Gartner, 2008). Longer term security market
growth is expected to be around 10% annually between 2007 and 2012 (Source:
IDC).
The market opportunities for Internet security and other related services is
driven by the expansion of the Internet, with its increasing number of security
threats against users and the growing number of Internet broadband connections
for both PC's and mobile phones. The global Internet penetration is around 24%;
in Asia it is below 20%, in Europe below 50%, and in North America over 70%
(Source: Internet World Stats, U.S. Census Bureau). The growing number of smart
phones which have internet browser increases the number of mobile internet
users (number of smart phones 2009: 200m and 2012 more than 500m; Source:
Gartner).
The Security as a Service (SaaS) business has been a strong growth driver for
the Group since the year 2000. Based on the company's pioneering role in
offering Software as a Service, the Group continues to expand its offering to
augment traditional security services. The Software as a Service business model
continues to gain further market share in the software industry at large
(Source: IDC Nov. 2008). Based on experience of the SaaS business model, the
Group 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 SaaS business model compared to
traditional software acquisition as a product. Currently the Group offers both
Security as a Service and Online Backup as a Service. The acquisition of Steek
SA, a leading European software provider for online storage and data management
solutions to operators, enables the Group to develop more comprehensive and
innovative Value Added Services to consumers to be sold through its large
operator network.
The Group's first priority is to drive strong growth. The core growth driver is
the Security as a Service (SaaS) sales through the operators. In the operator
channel the Group has a strong foothold globally with over 200 operator
partners. The Group's potential customer base, i.e. partners' market share of
residential broadband at the end of 2008, was significant in Europe (39% of all
European broadband subscribers) and good in Asia (13%) and in North America
(10%) (Source: Dataxis and F-Secure).
The Group is focusing on increasing the penetration within the current operator
base and continues to selectively seek partner expansion globally. In addition,
the Group is developing its operations in other channels, such as electronic
sales, to offer value-added services to consumers and other segments.
The Group'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, the Group anticipates synergies across the value added
Services being developed and offered both for PC's and mobile phones.
The Group's target is to be the leader in providing security and related value
added services to consumers through operators. The Group pursues investments in
new value added services for both PC and mobile users to augment the existing
security services. The Group continues to drive innovation also in traditional
IT security, enabling the secure use of internet.
During the next three years, the Group aims to continue to exceed the average
market growth rates in revenues and seeks the EBIT level to be around 25%.
Short-term outlook
Markets for Security as a Service are expected to continue to grow. During the
year 2009 the Group seeks to continue to exceed average market growth. For 2009
the security market growth is anticipated to be around 8% (source: IDC).
For the fourth quarter of 2009 the management estimates total revenues to grow
at single digit rate. This lower growth is driven primarily by the slowdown in
the traditional license business. The Software as a Service business is
expected to continue to be the growth driver. The Group continues to invest in
sales and marketing activities especially with operators to drive long term
consumer awareness and volumes. End-user acquisition programs are anticipated
to drive short term subscriber growth and sustainable long term revenue growth.
F-Secure revenues for the fourth quarter of 2009 are estimated to be between 31
million and 33 million. Costs are estimated to be below 26 million including
also amortization from the Steek acquisition.
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 press and analysts will be arranged today, on October 22,
at 11 am Finnish time at Group headquarters, address: Tammasaarenkatu 7
(Ruoholahti), Helsinki. A conference call for international investors and
analysts will be arranged at 15.00 Finnish time (14.00 CET, 1.00 pm UK time).
Instructions on how to attend the conference call are available on the investor
pages of the Group's web site at
http://www.f-secure.com/en_EMEA/about-us/investor-relations/.
On November 18th 2009, F-Secure Corporation will arrange a Capital Markets
Morning for analysts and capital market representatives in Helsinki.
Financial calendar for 2010
During 2010, F-Secure Corporation will publish three interim reports and a
financial statements bulletin. The financial statements bulletin will be
published on February 3, the interim reports on April 28 (Q1), on July 29 (Q2),
and on October 27 (Q3). On the publication dates 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. The Annual
General Meeting of 2010 is scheduled to be held on March 24, 2010 and the
annual report for 2009 will be published in the beginning of March. Full
details will be provided at a later date on the Group's website.
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
2008.
As of January 1, 2009 the group has applied IFRS 8 Operating segments standard
and IAS 1 Presentation of Financial Statements standard.
Key figures (unaudited):
Euro million
INCOME STATEMENT 2009 2008 2009 2008 Chge 2008
7-9 7-9 1-9 1-9 % 1-12
Revenues 31.1 28.6 93.4 82.4 13 113.0
Cost of revenues 2.7 2.6 7.8 7.1 10 10.3
Gross margin 28.4 26.0 85.5 75.3 14 102.7
Other operating income 0.3 0.4 1.0 1.3 -25 2.6
Sales and marketing 13.6 11.8 41.0 35.7 15 48.6
Research and development 6.9 6.1 20.4 18.8 9 25.5
Administration 1.6 1.4 5.3 5.0 5 6.8
Operating result 6.6 7.1 19.8 17.1 16 24.3
Financial net 0.1 0.4 0.9 1.3 2.0
Result before taxes 6.7 7.5 20.8 18.4 26.4
Income taxes -1.7 -1.9 -5.4 -4.8 -6.9
Result for the period 5.0 5.6 15.4 13.6 19.6
Other comprehensive income:
Exchange diff. on translating
foreign operations -0.1 0.0 -0.1 0.0 -0.3
Available-for-sale fin.assets-0.1 0.1 0.4 0.3 -0.2
Income tax rel. to components
of other comprehensive income 0.0 0.0 -0.1 -0.1 0.0
Total comprehensive
Income (owners) 4.8 5.7 15.6 13.8 19.1
Earnings per share, e 0.03 0.04 0.10 0.09 0.13
EPS, diluted, e 0.03 0.03 0.10 0.09 0.12
BALANCE SHEET
ASSETS 30/09/2009 30/09/2008 31/12/2008
Intangible assets 1) 13.1 3.7 3.5
Tangible assets 4.4 3.6 3.5
Goodwill 1) 19.4 0.0 0.0
Other financial assets 2.3 0.7 1.1
Non-current assets total 39.2 8.0 8.1
Inventories 0.3 0.1 0.1
Other receivables 28.6 22.8 25.5
Available-for-sale
financial assets 15.0 77.4 47.1
Cash and bank accounts 16.1 11.6 14.1
Current asset total 60.0 111.9 86.8
Total 99.2 119.9 94.9
SHAREHOLDERS' EQUITY
AND LIABILITIES 30/09/2009 30/09/2008 31/12/2008
Equity 45.4 71.1 41.1
Other non-current 2.6 0.2 0.0
Deferred revenues 6.2 6.3 7.5
Non-current liabilities total 8.9 6.4 7.5
Other current 17.4 14.9 16.5
Deferred revenues 27.5 27.5 29.7
Current liabilities total 44.9 42.3 46.2
Total 99.2 119.9 94.9
Cash flow statement 30/09/2009 30/09/2008 31/12/2008
Cash flow from operations 11.8 18.3 26.3
Cash flow from investments 1) -30.2 -3.3 -3.2
Cash flow from financing
activities 2) -11.9 -10.7 -46.2
Change in cash -30.3 4.3 -23.1
Cash and bank at 1 Jan 60.9 84.3 84.3
Change in net fair value of
Available-for-sale 0.4 0.3 -0.2
Cash and bank at 30 Sep 31.0 88.9 61.0
Statement of changes in shareholders' equity
share unstricted assets
share premium equity- treasury ret. avail. Trans. Total
Equity on: capital fund reserve shares earnings f.sale diff.
31.12.2008 1.6 0.2 2.1 -1.5 39.1 -0.1 -0.4 41.1
Total
comprehensive
income
for the year 15.4 0.3 -0.1 15.6
Dividend -10.9 -10.9
Exercise of options 0.1 0.1
Treasury shares 0.0 -1.0 -1.0
Cost of
share based payments 0.6 0.6
Equity on
30.09.2009 1.6 0.2 2.2 -2.5 44.2 0.2 -0.5 45.4
NOTES
Note 1) Business combinations (preliminary)
On 10 July 2009, the Group acquired 100% of the voting shares of Steek SA, an
unlisted company based in France specializing in providing online storage and
data management solutions.
Under the terms of the agreement, the cash and debt free purchase price was EUR
27.5m. An additional contingent purchase price of a maximum of EUR 2.5m is
based on the performance of the acquired business in a period ending March 31,
2010. According to the information currently available, the management
estimates that the likelihood of the additional contingent purchase price is
remote.
Cost
Purchase price 27.5
Net working capital 3.9
Cost associated with the acquisition 0.4
Acquisition cost 31.8
The preliminary cost of the combination was 31.8 million euro and it comprised
a cash payment and costs of 0.4 million euro directly attributable to the
combination. The final net working capital will be defined on 31.12.2009.
The goodwill recognized below is attributed to the expected sales channel
synergies in the existing F-Secure customer base and workforce.
The fair value of the identifiable assets and liabilities of Steek as at the
date of acquisition were:
fair value
recognised on carrying
acquisition value
Intangible assets, technology 4.2 0.9
Intangible assets, customers 4.9
Tangible assets 0.5 0.5
Deferred tax receivable 1.2
Receivables 1.6 1.6
Cash and equivalents 3.9 3.9
Total 16.4 6.9
Deferred tax liability -2.4
Trade payables -1.3 -1.3
Other payables -0.3 -0.3
Total -4.0 -1.6
Fair value of net assets 12.2 5.3
Goodwill arising on acquisition 19.4
Acquisition costs 31.8
Cash outflow on acquisition
Net cash acquired with the subsidiary 3.9
Cash paid -30.7
Net cash outflow -26.8
Unpaid net working capital -1.0
Net cash outflow -27.9
From the date of acquisition, Steek has contributed -0.5 million euro to the
net profit of the Group. If the combination had taken place at the beginning of
the year, the revenue from continuing operations for the period would have been
94.7 million euro and profit from continuing operations would have been 14.4
million euro.
Note 2) Cash flow from financing
The company has bought own shares by 1,036,166 euro. Dividend for year 2008
0.07 euro per share totaling 10,903,928.49 euro was paid on 7th April 2009. In
2008, paid dividend totaled 10,859,178.26 euro and capital repayment
35,719,370.76 euro.
Key ratios 2009 2008 2008
9 m 9 m 12 m
Operating result,
% of revenues 21.3 20.8 21.5
ROI, % 50.9 36.9 51.5
ROE, % 36.3 26.2 36.0
Equity ratio, % 69.8 82.6 71.3
Debt-to-equity ratio, % -67.4 -124.9 -148.5
Earnings per share (EUR) 0.10 0.09 0.13
Earnings per share diluted 0.10 0.09 0.12
Shareholders' equity
per share, e 0.29 0.46 0.26
P/E ratio 22.1 19.8 14.9
Capitalized expenditures (Me) 35.3 2.4 3.1
Contingent liabilities 19.9 7.4 7.8
Personnel, average 756 636 652
Personnel, Sep 30 818 710 718
Segment information
The Group has only one segment; data security.
Quarterly development
1/08 2/08 3/08 4/08 1/09 2/09 3/09
Revenues 26.6 27.2 28.6 30.6 30.6 31.7 31.1
Cost of revenues 2.1 2.4 2.6 3.1 2.6 2.5 2.7
Gross margin 24.5 24.7 26.0 27.4 28.0 29.2 28.4
Other operating income 0.3 0.6 0.4 1.3 0.3 0.4 0.3
Sales and marketing 11.5 12.4 11.8 13.0 13.5 13.9 13.6
Research and
development 6.3 6.5 6.1 6.7 6.8 6.7 6.9
Administration 1.8 1.7 1.4 1.9 2.0 1.7 1.6
Operating result 5.3 4.7 7.1 7.2 6.1 7.2 6.6
Financial net 0.3 0.6 0.4 0.7 0.5 0.4 0.1
Result before taxes 5.6 5.3 7.5 8.0 6.5 7.6 6.7
Geographical information
7-9/2009 7-9/2008 1-9/2009 1-9/2008
Revenue Revenue Revenue Revenue
Nordic countries 10.7 11.1 32.7 32.3
Rest of Europe 14.7 12.2 42.6 35.4
North America 2.6 2.7 8.3 7.3
Rest of the world 3.1 2.6 9.8 7.4
Total 31.1 28.6 93.4 82.4
9/2009 9/2008
Assets Assets
Nordic countries 48.5 110.1
Rest of Europe 40.4 1.5
North America 3.2 3.2
Rest of the world 6.3 4.6
Total 98.4 119.4
© 2024 Nasdaq, Inc. All Rights Reserved |