2007-07-24 07:00:00 CEST
2007-07-24 07:00:00 CEST
REGULATED INFORMATION
Comptel - Quarterly report
Interim Report of Comptel Corporation January 1 - June 30, 2007
Second quarter's net sales at the previous year level, profitability weakened.
Due to a strong order backlog outlook for the full year unchanged.
Key figures for the second quarter:
Net sales EUR 19.0 million (January-June 2006: 19.0)
Operating profit excluding one-off items EUR 1.7 million (2.9)
Operating profit EUR 1.7 million (2.6)
Earnings per share EUR 0.01 (0.02)
Order backlog EUR 29.9 million (24.0)
Sami Erviö, President and CEO:
“Comptel's result in the second quarter of 2007 did not meet company's
expectations. We were not able to transfer the high order backlog to revenue as
some delivery projects proceeded slower than expected. New products development
and strengthening the sales channel and delivery organisation increased
expenses. In addition moving the operations in Finland into new offices caused
one-off costs. However, due to the strong order backlog at the end of the
quarter we believe that we will reach the earlier announced targets for the full
year 2007.
Comptel launched two significant new products during the second quarter of the
year. Comptel Interconnect Billing Solution helps operators to settle charges
with each other and Comptel Service Catalog Solution holds information about a
service provider's offering and how it maps into network actions.
During the second quarter Comptel closed significant new core licence agreements
in Europe, in the Middle East and Africa and in Asia-Pacific. Comptel sold eight
core licences. We got a new order for the Inventory Solution and the first order
for the Interconnect Billing Solution which we just launched.”
Business Review of the First Half 2007
The net sales of Comptel were at the previous year level. In January-June 2007
net sales were EUR 38.5 million (38.5) and during the second quarter of the year
EUR 19.0 million (19.0).
The group operating profit for January-June was EUR 5.0 million (3.2)
corresponding to 13.0 per cent (8.3) of the net sales. The operating profit in
April-June was EUR 1.7 million (2.6) representing 8.7 per cent (13.6) of the net
sales. Delays in new delivery projects and an increase of personnel expenses due
to new recruits weakened the profitability during the second quarter.
The order backlog remained at the high level of the first quarter and was EUR
29.9 million. The growth was 24.4 per cent from the same period last year.
Business Areas
--------------------------------------------------------------------------------
| Net sales, EUR | 1-6 | 1-6 | Change | 4-6 | 4-6 | Change | 2006 |
| million | 2007 | 2006 | % | 2007 | 2006 | % | |
--------------------------------------------------------------------------------
| Europe | 24.5 | 23.6 | 4.0 | 12.1 | 11.6 | 4.3 | 47.6 |
--------------------------------------------------------------------------------
| The Middle East | 4.4 | 6.4 | -30.6 | 2.3 | 3.2 | -28.8 | 12.0 |
| and Africa | | | | | | | |
--------------------------------------------------------------------------------
| America | 3.6 | 3.2 | 11.5 | 1.8 | 1.7 | 6.1 | 8.2 |
--------------------------------------------------------------------------------
| Asia-Pacific | 6.0 | 5.3 | 13.5 | 2.8 | 2.4 | 12.6 | 12.6 |
--------------------------------------------------------------------------------
| Total | 38.5 | 38.5 | 0.2 | 19.0 | 19.0 | -0.1 | 80.4 |
--------------------------------------------------------------------------------
| Operating profit | | | | | | | |
| breakdown by | | | | | | | |
| market, EUR | | | | | | | |
| million | | | | | | | |
--------------------------------------------------------------------------------
| Europe | 14.0 | 11.0 | 27.1 | 6.7 | 6.0 | 11.1 | 23.0 |
--------------------------------------------------------------------------------
| The Middle East | 2.5 | 3.8 | -33.6 | 1.6 | 1.7 | -8.0 | 7.2 |
| and Africa | | | | | | | |
--------------------------------------------------------------------------------
| America | 2.1 | 1.5 | 43.4 | 1.0 | 0.8 | 24.3 | 4.5 |
--------------------------------------------------------------------------------
| Asia-Pacific | 2.8 | 2.5 | 11.1 | 0.8 | 0.8 | -1.7 | 6.4 |
--------------------------------------------------------------------------------
| Group unallocated | -16.4 | -15.7 | - | -8.4 | -6.7 | - | -29.8 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Total | 5.0 | 3.2 | 57.0 | 1.7 | 2.6 | -36.5 | 11.2 |
--------------------------------------------------------------------------------
| Operating profit | | | | | | | |
| as percent of net | | | | | | | |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Europe | 57.0 | 46.6 | - | 54.8 | 51.5 | - | 48.3 |
--------------------------------------------------------------------------------
| The Middle East | 57.4 | 60.0 | - | 68.0 | 52.7 | - | 59.9 |
| and Africa | | | | | | | |
--------------------------------------------------------------------------------
| America | 59.3 | 46.1 | - | 55.9 | 47.7 | - | 56.1 |
--------------------------------------------------------------------------------
| Asia-Pacific | 47.0 | 48.0 | - | 29.6 | 33.9 | - | 50.8 |
--------------------------------------------------------------------------------
| Total | 13.0 | 8.3 | - | 8.7 | 13.6 | - | 14.0 |
--------------------------------------------------------------------------------
The operations and results grew during the first half of the year in all areas
except in the Middle East and Africa. In the second quarter the operations grew
except the Middle East and Africa and the results grew in Europe and in America.
In the first half of 2007 Comptel closed twelve core licence agreements (1-6
2006: 11): five Comptel Mediation and Charging Solutions, five Comptel
Provisioning and Activation Solutions, one Comptel Inventory Solution and one
Comptel Interconnect Billing Solution.
--------------------------------------------------------------------------------
| Net sales | 1-6 | 1-6 | Chang | 4-6 | 4-6 | Change | 2006 |
| breakdown by | 2007 | 2006 | e % | 2007 | 2006 | % | |
| type, EUR million | | | | | | | |
--------------------------------------------------------------------------------
| Licences | 12.2 | 12.0 | 1.9 | 5.4 | 5.6 | -4.0 | 25.8 |
--------------------------------------------------------------------------------
| Services and | 26.3 | 26.5 | -0.6 | 13.6 | 13.4 | 1.6 | 54.6 |
| maintenance | | | | | | | |
--------------------------------------------------------------------------------
| Total | 38.5 | 38.5 | 0.2 | 19.0 | 19.0 | -0.1 | 80.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales by | 1-6 | 1-6 | Chang | 4-6 | 4-6 | Change | 2006 |
| sales channels, | 2007 | 2006 | e% | 2007 | 2006 | % | |
| EUR million | | | | | | | |
--------------------------------------------------------------------------------
| Direct sales | 30.6 | 30.4 | 0.8 | 15.3 | 14.8 | 3.8 | 62.8 |
--------------------------------------------------------------------------------
| Partner sales | 7.9 | 8.0 | -2.1 | 3.7 | 4.2 | -13.5 | 17.6 |
--------------------------------------------------------------------------------
| Total | 38.5 | 38.5 | 0.2 | 19.0 | 19.0 | -0.1 | 80.4 |
--------------------------------------------------------------------------------
Financial Position
--------------------------------------------------------------------------------
| EUR million | 30.6.2007 | 31.12.2006 | Change % |
--------------------------------------------------------------------------------
| Balance sheet total | 64.6 | 68.8 | -6.1 |
--------------------------------------------------------------------------------
| Liquid assets | 7.9 | 12.9 | -38.6 |
--------------------------------------------------------------------------------
| Trade receivables | 26.5 | 28.2 | -6.0 |
--------------------------------------------------------------------------------
| Accrued income | 6.1 | 5.0 | 22.1 |
--------------------------------------------------------------------------------
| Deferred income related to partial | 1.5 | 1.5 | 0.8 |
| debiting | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 68.6 | 67.7 | - |
--------------------------------------------------------------------------------
Comptel Group did not have interest-bearing debt in the end of the review
period. Dividends of EUR 5.4 million (4.3) were paid.
The operating cash flow of the group was EUR 3.1 million during the first half
(2.6). In April-June the operating cash flow was EUR 2.2 million negative
(-2.5). The negative operating cash flow was mainly due to the increase of
working capital and the dividends paid.
Trade receivables at the end of period were EUR 26.5 million (December 31, 2006:
28.2).
In January, Comptel Corporation signed a lease on business premises with AC
Salmisaari Oy. The agreement was signed for ten years, and it increases the
rental commitments by approximately EUR 13.5 million. The group rental
commitments were EUR 21.5 million at the end of June 2007.
Investments, Research and Development (R&D)
--------------------------------------------------------------------------------
| EUR million | 1-6 | 1-6 | Chang | 4-6 | 4-6 | Change | 2006 |
| | 2007 | 2006 | e % | 2007 | 2006 | % | |
--------------------------------------------------------------------------------
| Gross investments in | 0.7 | 0.9 | -25.6 | 0.5 | 0.7 | -23.9 | 1.5 |
| property, plant and | | | | | | | |
| equipment and | | | | | | | |
| intangible assets | | | | | | | |
--------------------------------------------------------------------------------
| Direct R&D | 5.0 | 5.2 | -4.3 | 2.5 | 2.7 | -5.8 | 11.1 |
| expenditure and | | | | | | | |
| investment | | | | | | | |
--------------------------------------------------------------------------------
| Capitalisation of R&D | 1.0 | 0.3 | 252.5 | 0.3 | 0.1 | 148.7 | 1.7 |
| expenditure according | | | | | | | |
| to IAS 38 | | | | | | | |
--------------------------------------------------------------------------------
Gross investments in property, plant and equipment and intangible assets of the
review period comprise of equipment and software purchases and R&D expenses. The
investments were financed by funds from operations.
The R&D investments of Comptel were at the previous year level and they are
focused on developing the new solutions for mediation, provisioning and
activation, and on further development of the existing inventory and charging
solutions. Comptel estimates that the investments in R&D will remain at the same
level.
Personnel
--------------------------------------------------------------------------------
| | 30.6. | 30.6.2006 | Change % | 31.12.2006 |
| | 2007 | | | |
--------------------------------------------------------------------------------
| Number of employees at the | 563 | 565 | -0.4 | 547 |
| end of period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-6 2007 | 1-6 2006 | Change % | 2006 |
--------------------------------------------------------------------------------
| Average number of personnel | 550 | 571 | -3.7 | 561 |
| during the period | | | | |
--------------------------------------------------------------------------------
The decrease in the average number of personnel compared to the first half of
2006 is mainly due to the integration of business operations acquired from EDB
Telecom. During the second quarter the number of employees increased by 26
persons mainly in sales and delivery.
The personnel expenses in January-June were 46.7 per cent of the net sales
(52.2) and in April-June 50.8 per cent of the net sales (46.6).
At the end of the period under review 59.4 per cent (56.5) of the personnel were
located in Finland and 19.9 per cent (25.7) in Norway.
Comptel's Share
The closing price of Comptel's share on June 30, 2007 was EUR 2.05 (1.70). The
market capitalisation of Comptel on June 30, 2007 was EUR 219.5 million (182.0
million).
--------------------------------------------------------------------------------
| Comptel Share | 1-6 | 1-6 | Chang | 4-6 | 4-6 | Change | 2006 |
| | 2007 | 2006 | e % | 2007 | 2006 | % | |
--------------------------------------------------------------------------------
| Shares traded, | 23.4 | 30.2 | -22.5 | 10.3 | 18.3 | -43.7 | 49.8 |
| million | | | | | | | |
--------------------------------------------------------------------------------
| Shares traded, EUR | 46.8 | 52.2 | -10.3 | 21.0 | 32.6 | -35.6 | 85.0 |
| million | | | | | | | |
--------------------------------------------------------------------------------
| Highest price, EUR | 2.22 | 2.01 | 10.4 | 2.22 | 2.01 | 10.4 | 2.01 |
--------------------------------------------------------------------------------
| Lowest price, EUR | 1.76 | 1.56 | 12.8 | 1.84 | 1.56 | 17.9 | 1.44 |
--------------------------------------------------------------------------------
Of Comptel's outstanding shares, 8.2 per cent were nominee registered or held by
foreign shareholders at the end of the review period.
Comptel purchased through Helsinki Stock Exchange 410,000 Comptel shares during
February 21 - March 6, 2007. The average price per share was EUR 1.93 and the
total purchase price was EUR 791,820.
In April, Comptel Corporation transferred gratuitously 189,241 own shares to
persons involved in the 2006 incentive plan. After the transfer on April 2,
2007, company holds a total of 220,759 own shares.
Of the stock options 2006B distributed during the review period, a total of
1,290,000 are held by the key personnel of Comptel Corporation. The share
subscription price for stock options 2006B is EUR 1.99 per share, which
corresponds to the trade volume weighted average quotation of the Comptel
Corporation share on the Helsinki Stock Exchange during April 1 - April 30,
2007.
The own shares held by the company at the end of the review period corresponded
to 0.2 per cent of the outstanding Comptel shares. The total book-counter value
of these shares was EUR 4,415.
Events after the Review Period
In July, Comptel united the operations in Finland from three separate real
estates into one. The new rented premises are located in Ruoholahti district of
Helsinki.
Comptel's HR Director Leena Suviranta has given in her resignation to join
another employer. Recruitment of a new HR Director has started.
Near-term risks and uncertainties
Comptel has described risks related to its operations as a part of the financial
statements for 2006. The risks are divided into strategic, financial, operative
and losses. There have not been any significant changes in Comptel's risks and
factors of uncertainty during the review period.
Comptel's main business currencies are the euro and US dollar. Changes in
exchange rates may affect the price level of the markets. Comptel hedges the
cash flows from orders.
The Ministry of Finance is still processing the application in which Comptel
asked to take action on preventing the double withholding taxation. First
outcomes in country specific negotiations can be expected in autumn. Comptel
believes to have the treatment of its withholding taxation changed.
Future Outlook
The Operations Support Systems market is expected to continue to grow globally.
The Group's order backlog has remained strong and gives a good basis for growth.
The organic growth of Comptel's net sales is expected to be from 5 to 10 percent
in 2007. Comptel's operating profit is expected to grow from the previous year
and to be close to company's long-term target which is 20 per cent of net sales.
An increasing portion of Comptel's business will come from services for existing
customers, which in its part lessens the fluctuation from one quarter to
another. However, single contracts or delivery projects may continue to have a
significant impact on the result of the company.
The interim financial statements have been prepared in accordance with IAS 34,
Interim Financial Reporting, as adopted by the EU. The accounting policies
adopted are consistent with those of the annual statement for the year ended
2006. All figures in the financial report have been rounded and consequently the
sum of the individual figures can deviate from the sum figure. The interim
report is unaudited.
--------------------------------------------------------------------------------
| Consolidated Income | 1.1.-30.6 | 1.1.-30.6 | 1.4.-30.6 | 1.4.-30.6. |
| Statement (EUR 1,000) | .2007 | .2006 | .2007 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 38,521 | 38,458 | 19,018 | 19,034 |
--------------------------------------------------------------------------------
| Other operating income | 1 | 135 | 1 | 4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Materials and services | -3,870 | -4,047 | -1,779 | -1,886 |
--------------------------------------------------------------------------------
| Employee benefits | -17,983 | -20,077 | -9,669 | -8,865 |
--------------------------------------------------------------------------------
| Depreciation | -1,965 | -2,217 | -1,000 | -1,092 |
--------------------------------------------------------------------------------
| Other operating expenses | -9,694 | -9,061 | -4,920 | -4,596 |
--------------------------------------------------------------------------------
| | -33,512 | -35,403 | -17,368 | -16,441 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 5,009 | 3,190 | 1,650 | 2,597 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 257 | 113 | 119 | 18 |
--------------------------------------------------------------------------------
| Financial expenses | -285 | -165 | -100 | -63 |
--------------------------------------------------------------------------------
| Share of result of | - | -54 | - | 0 |
| associated companies | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before income taxes | 4,980 | 3,084 | 1,670 | 2,678 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -1,679 | -986 | -448 | -877 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | 3,302 | 2,097 | 1,221 | 1,800 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 3,302 | 2,068 | 1,221 | 1,801 |
| parent company | | | | |
--------------------------------------------------------------------------------
| Minority interests | - | 30 | - | -1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders of the parent | | | | |
| company: | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.03 | 0.02 | 0.01 | 0.02 |
--------------------------------------------------------------------------------
| Earnings per share, | 0.03 | 0.02 | 0.01 | 0.02 |
| diluted, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated Balance Sheet | 30.6.2007 | 31.12.2006 |
| (EUR 1,000) | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Other intangible assets | 7,798 | 7,875 |
--------------------------------------------------------------------------------
| Goodwill | 10,832 | 10,832 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 2,308 | 2,292 |
--------------------------------------------------------------------------------
| Investments in associates | 400 | 400 |
--------------------------------------------------------------------------------
| Available-for sale financial | 87 | 87 |
| assets | | |
--------------------------------------------------------------------------------
| Deferred tax assets | 683 | 714 |
--------------------------------------------------------------------------------
| | 22,109 | 22,201 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Inventories | - | 18 |
--------------------------------------------------------------------------------
| Trade and other receivables | 34,535 | 33,692 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 7,927 | 12,934 |
--------------------------------------------------------------------------------
| | 42,462 | 46,643 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 64,571 | 68,844 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and liabilities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to equity | | |
| holders of the parent company | | |
--------------------------------------------------------------------------------
| Share capital | 2,141 | 2,141 |
--------------------------------------------------------------------------------
| Fund of invested | 7,368 | 7,368 |
| non-restricted equity | | |
--------------------------------------------------------------------------------
| Translation difference | -692 | -674 |
--------------------------------------------------------------------------------
| Retained earnings | 35,375 | 37,782 |
--------------------------------------------------------------------------------
| | 44,192 | 46,617 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 110 | 145 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity | 44,303 | 46,761 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 2,030 | 1,604 |
--------------------------------------------------------------------------------
| Provisions | 685 | 188 |
--------------------------------------------------------------------------------
| Other liabilities | 94 | 169 |
--------------------------------------------------------------------------------
| | 2,808 | 1,961 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Trade and other payables | 17,460 | 20,122 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 20,269 | 22,083 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholders' equity | 64,571 | 68,844 |
| and liabilities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of | 1.1.-30.6.2007 | 1.1.-30.6.2006 |
| cash flows (EUR 1,000) | | |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Cash flows from operating | | |
| activities | | |
--------------------------------------------------------------------------------
| Profit for the period | 3,302 | 2,097 |
--------------------------------------------------------------------------------
| Adjustments: | | |
--------------------------------------------------------------------------------
| Transactions without cash | 2,346 | 2,384 |
| flow effect | | |
--------------------------------------------------------------------------------
| Interest and other financial | 81 | 4 |
| expenses | | |
--------------------------------------------------------------------------------
| Interest income | -190 | -113 |
--------------------------------------------------------------------------------
| Income taxes | 1,679 | 986 |
--------------------------------------------------------------------------------
| Change in working capital: | | |
--------------------------------------------------------------------------------
| Change in trade and other | -208 | 1,505 |
| receivables | | |
--------------------------------------------------------------------------------
| Change in inventories | 18 | - |
--------------------------------------------------------------------------------
| Change in trade and other | -2,268 | -3,245 |
| payables | | |
--------------------------------------------------------------------------------
| Change in provisions | 496 | 336 |
--------------------------------------------------------------------------------
| Interest paid | -81 | -4 |
--------------------------------------------------------------------------------
| Interest received | 190 | 113 |
--------------------------------------------------------------------------------
| Income taxes paid | -2,310 | -1,462 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash from operating | 3,055 | 2,601 |
| activities | | |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Cash flows from investing | | |
| activities | | |
--------------------------------------------------------------------------------
| Acquisition of property, | -770 | -653 |
| plant and equipment | | |
--------------------------------------------------------------------------------
| Acquisition of intangible | -99 | -596 |
| assets | | |
--------------------------------------------------------------------------------
| Capitalised development | -1,036 | -294 |
| expenditure | | |
--------------------------------------------------------------------------------
| Proceeds from disposal of | - | 237 |
| property, plant and equipment | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash used in investing | -1,905 | -1,306 |
| activities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from financing | | |
| activities | | |
--------------------------------------------------------------------------------
| Dividends paid | -5,365 | -4,333 |
--------------------------------------------------------------------------------
| Acquisition of treasury | -792 | - |
| shares | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash used in financing | -6,157 | -4,333 |
| activities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net change in cash and cash | -5,007 | -3,038 |
| equivalents | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents in | 12,934 | 9,632 |
| the beginning of the period | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 7,927 | 6,594 |
| the end of the period | | |
--------------------------------------------------------------------------------
| Change | -5,007 | -3,038 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of changes in equity | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | | | |
| of the parent company | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | Share | Share | Other | Translatio | Fair value |
| | capital | premium | reserves | n | reserve |
| | | | | difference | |
| | | | | s | |
--------------------------------------------------------------------------------
| Shareholders' | 2,141 | 7,368 | - | -621 | -120 |
| equity January | | | | | |
| 1,2006 | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | | |
| hedges: | | | | | |
--------------------------------------------------------------------------------
| gains and | | | | | 208 |
| losses | | | | | |
| taken to equity | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | -55 | |
| difference | | | | | |
--------------------------------------------------------------------------------
| Taxes on items | | | | | -54 |
| taken to equity | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | - | -55 | 154 |
| recognized | | | | | |
| income and | | | | | |
| expense for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | |
| compensation | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 2,141 | 7,368 | - | -676 | 34 |
| equity at June | | | | | |
| 30, 2006 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | | Minority | Equity |
| | | | | interest | total |
--------------------------------------------------------------------------------
| EUR 1,000 | Treasur | Retained | Total | | |
| | y | earnings | | | |
| | shares | | | | |
--------------------------------------------------------------------------------
| Shareholders' | - | 35,937 | 44,705 | 164 | 44,869 |
| equity January | | | | | |
| 1,2006 | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | | |
| hedges: | | | | | |
--------------------------------------------------------------------------------
| gains and | | | 208 | | 208 |
| losses taken | | | | | |
| to equity | | | | | |
--------------------------------------------------------------------------------
| Translation | | | -55 | | -55 |
| difference | | | | | |
--------------------------------------------------------------------------------
| Taxes on items | | | -54 | | -54 |
| taken to equity | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | 2,068 | 2,068 | 30 | 2,097 |
| period | | | | | |
--------------------------------------------------------------------------------
| Total | - | 2,068 | 2,166 | 30 | 2,196 |
| recognized | | | | | |
| income and | | | | | |
| expense for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Dividends | | -4,282 | -4,282 | -51 | -4,333 |
--------------------------------------------------------------------------------
| Share-based | | 123 | 123 | | 123 |
| compensation | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | - | 33,846 | 42,713 | 142 | 42,855 |
| equity at June | | | | | |
| 30, 2006 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of changes in equity | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | | | |
| of the parent company | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | Share | Share | Other | Translatio | Fair value |
| | capital | premium | reserves | n | reserve |
| | | | | difference | |
| | | | | s | |
--------------------------------------------------------------------------------
| Shareholders' | 2,141 | - | 7,368 | -674 | -37 |
| equity January | | | | | |
| 1,2007 | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | | |
| hedges: | | | | | |
--------------------------------------------------------------------------------
| gains and | | | | | 72 |
| losses | | | | | |
| taken to equity | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | -18 | |
| difference | | | | | |
--------------------------------------------------------------------------------
| Taxes on items | | | | | |
| taken to equity | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | - | -18 | 72 |
| recognized | | | | | |
| income and | | | | | |
| expense for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | | | | |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Transfer of | | | | | |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | |
| compensation | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 2,141 | - | 7,368 | -692 | 35 |
| equity at June | | | | | |
| 30, 2007 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | | Minority | Equity |
| | | | | interest | total |
--------------------------------------------------------------------------------
| EUR 1,000 | Treasur | Retained | Total | | |
| | y | earnings | | | |
| | shares | | | | |
--------------------------------------------------------------------------------
| Shareholders' | - | 37,818 | 46,616 | 145 | 46,761 |
| equity January | | | | | |
| 1,2007 | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | | |
| hedges: | | | | | |
--------------------------------------------------------------------------------
| gains and | | | 72 | | 72 |
| losses taken | | | | | |
| to equity | | | | | |
--------------------------------------------------------------------------------
| Translation | | | -18 | | -18 |
| difference | | | | | |
--------------------------------------------------------------------------------
| Taxes on items | | | | | |
| taken to equity | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | 3,302 | 3,302 | | 3,302 |
| period | | | | | |
--------------------------------------------------------------------------------
| Total | - | 3,302 | 3,355 | - | 3,355 |
| recognized | | | | | |
| income and | | | | | |
| expense for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Dividends | | -5,332 | -5,332 | -34 | -5,367 |
--------------------------------------------------------------------------------
| Acquisition of | -792 | | -792 | | -792 |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Transfer of | 365 | -365 | 0 | | 0 |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Share-based | | 345 | 345 | | 345 |
| compensation | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | -427 | 35,767 | 44,193 | 110 | 44,303 |
| equity at June | | | | | |
| 30, 2007 | | | | | |
--------------------------------------------------------------------------------
Notes
1. Net sales and operating profit by segment
Net sales by segment
--------------------------------------------------------------------------------
| EUR 1,000 | 1.1-30.6.2 | 1.1.-30.6.20 | 1.4.-30.6.2 | 1.4.-30.6.2 |
| | 007 | 06 | 007 | 006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Europe | 24,489 | 23,554 | 12,149 | 11,647 |
--------------------------------------------------------------------------------
| Middle East and | 4,435 | 6,390 | 2,305 | 3,235 |
| Africa | | | | |
--------------------------------------------------------------------------------
| America | 3,587 | 3,217 | 1,810 | 1,706 |
--------------------------------------------------------------------------------
| Asia Pacific | 6,010 | 5,296 | 2,754 | 2,446 |
--------------------------------------------------------------------------------
| Total | 38,521 | 38,458 | 19,018 | 19,034 |
--------------------------------------------------------------------------------
Operating profit by segment
--------------------------------------------------------------------------------
| EUR 1,000 | 1.1-30.6.2 | 1.1.-30.6.20 | 1.4.-30.6.2 | 1.4.-30.6.2 |
| | 007 | 06 | 007 | 006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Europe | 13,957 | 10,980 | 6,656 | 5,993 |
--------------------------------------------------------------------------------
| Middle East and | 2,547 | 3,837 | 1,568 | 1,704 |
| Africa | | | | |
--------------------------------------------------------------------------------
| America | 2,125 | 1,482 | 1,012 | 814 |
--------------------------------------------------------------------------------
| Asia Pacific | 2,827 | 2,545 | 815 | 830 |
--------------------------------------------------------------------------------
| Group unallocated | -16,447 | -15,655 | -8,401 | -6,744 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Total | 5,009 | 3,190 | 1,650 | 2,597 |
--------------------------------------------------------------------------------
2. Income tax expense
Tax rate according to the income statement for the period was 33.7% (32.0 %).
The tax rate is relatively high due to double taxation. In 2006 Adjustment of
the Tax Office for Major Corporations refused crediting of taxes withheld at
source in taxation of 2004 and 2005. The issue is being processed by the
Ministry of Finance. Comptel believes to have the treatment of its withholding
taxation changed.
3. Property, plant and equipment
--------------------------------------------------------------------------------
| EUR 1,000 | 1.1.-30.6.2007 | 1.1.-30.6.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Additions | 595 | 520 |
--------------------------------------------------------------------------------
| Disposals | 0 | -26 |
--------------------------------------------------------------------------------
4. Related party transactions
The Comptel Group has a related party relationship with its associates, the
Board of Directors, CEO and deputy CEO.
Transactions, which have been entered into with related parties (associates),
are as follows:
--------------------------------------------------------------------------------
| EUR 1,000 | 1.1.-30.6.2007 | 1.1.-30.6.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchases of goods and services | 979 | 365 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | 30.6.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trade receivables and other current | 150 | 150 |
| receivables | | |
--------------------------------------------------------------------------------
| Trade payables and other current | 922 | 798 |
| liabilities | | |
--------------------------------------------------------------------------------
Remuneration to Board members and CEO
The key management personnel compensation includes the employee benefits of the
CEO, deputy CEO and the members and deputy members of the Board of Directors.
--------------------------------------------------------------------------------
| EUR 1,000 | 1.1.-30.6.2007 | 1.1.-30.6.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Salaries and other short-term employee | 460 | 547 |
| benefits | | |
--------------------------------------------------------------------------------
| Share-based payments | 258 | 51 |
--------------------------------------------------------------------------------
5. Commitments
Minimum lease payments on non-cancellable office facilities and other operating
leases are payable as follows:
--------------------------------------------------------------------------------
| EUR 1,000 | 30.6.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Less than one year | 3,814 | 3,518 |
--------------------------------------------------------------------------------
| Between one and five years | 12,206 | 7,561 |
--------------------------------------------------------------------------------
| More than five years | 5,438 | 1,253 |
--------------------------------------------------------------------------------
| Total | 21,458 | 12,332 |
--------------------------------------------------------------------------------
Capital commitments for the purchase of property, plant and equipment amounts to
624,000 as at 30 June 2007.
6. Contingent liabilities
--------------------------------------------------------------------------------
| EUR 1,000 | 30.6.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Bank guarantees | 1,007 | 775 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
7. Subsequent events
In July, Comptel united the operations in Finland from three separate real
estates into one. The new rented premises are located in Ruoholahti district of
Helsinki.
Comptel's HR Director Leena Suviranta has given in her resignation to join
another employer. Recruitment of a new HR Director has started.
8. Key figures
--------------------------------------------------------------------------------
| Financial summary | 1.1.-30.6.2 | 1.1.-30.6.20 | 2006 |
| | 007 | 06 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, EUR 1,000 | 38,521 | 38,458 | 80,439 |
--------------------------------------------------------------------------------
| Net sales, change % | 0.2 | 31.6 | 21.8 |
--------------------------------------------------------------------------------
| Operating profit, EUR 1,000 | 5,009 | 3,190 | 11,232 |
--------------------------------------------------------------------------------
| Operating profit, change % | 57.0 | -37.9 | 6.8 |
--------------------------------------------------------------------------------
| Operating profit, as % of net | 13.0 | 8.3 | 14.0 |
| sales | | | |
--------------------------------------------------------------------------------
| Profit before taxes, EUR 1,000 | 4,980 | 3,084 | 11,206 |
--------------------------------------------------------------------------------
| Profit before taxes, as % of | 12.9 | 8.0 | 13.9 |
| turnover | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, % | | | 12.7 |
--------------------------------------------------------------------------------
| Return on investment, % | | | 25.3 |
--------------------------------------------------------------------------------
| Equity ratio, % | 68.6 | 69.2 | 67.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross investments in property, | 667 | 897 | 1,477 |
| plant and equipment and | | | |
| intangible assets, EUR 1,000 | | | |
--------------------------------------------------------------------------------
| Gross investments in property, | 1.7 | 2.3 | 1.8 |
| plant and equipment and | | | |
| intangible assets, as % of net | | | |
| sales | | | |
--------------------------------------------------------------------------------
| Capitalisations according to IAS | 1,036 | 562 | 1,727 |
| 38 to intangible assets 1) | | | |
--------------------------------------------------------------------------------
| Research and development | 4,998 | 5,221 | 11,079 |
| expenditure, | | | |
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
| Research and development | 13.0 | 13.6 | 13.8 |
| expenditure, as | | | |
| % of net sales | | | |
--------------------------------------------------------------------------------
| Order backlog, EUR 1,000 2) | 29,864 | 24,016 | 29,483 |
--------------------------------------------------------------------------------
| Average number of employees | 550 | 571 | 561 |
| during the period | | | |
--------------------------------------------------------------------------------
| Interest-bearing net liabilities, | -7,927 | -6,594 | -12,934 |
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
| Gearing ratio, % | -17.9 | -15.4 | -27.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Includes EUR 145 thousand of capitalized costs from internal systems |
| development in 2006. |
--------------------------------------------------------------------------------
| 2) The order book may vary significantly during the financial period. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Per share data | 1.1.-30.6.2 | 1.1.-30.6.20 | 1.1.-31.12.2 |
| | 007 | 06 | 006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | 0.03 | 0.02 | 0.05 |
--------------------------------------------------------------------------------
| EPS diluted, EUR | 0.03 | 0.02 | 0.05 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 0.41 | 0.40 | 0.44 |
--------------------------------------------------------------------------------
| Dividend per share, EUR | - | - | 0.05 |
--------------------------------------------------------------------------------
| Dividend per earnings, % | - | - | 92.8 |
--------------------------------------------------------------------------------
| Effective dividend yield, % | - | - | 2.8 |
--------------------------------------------------------------------------------
| P/E ratio | - | - | 33.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjusted number of shares at the | 107,054,810 | 107,054,810 | 107,054,810 |
| end of the period | | | |
--------------------------------------------------------------------------------
| - of which held by Comptel | 220,759 | - | - |
--------------------------------------------------------------------------------
| Adjusted average number of | 106,874,390 | 107,054,810 | 107,054,810 |
| shares during the period | | | |
--------------------------------------------------------------------------------
| Average number of shares, | 106,874,390 | 107,054,810 | 107,054,810 |
| dilution included | | | |
--------------------------------------------------------------------------------
9. Definition of key figures
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity % (ROE) | = | Profit for the year | x 100 |
--------------------------------------------------------------------------------
| | | Shareholders' equity (average | |
| | | during year) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investment % | = | Profit before taxes + financial | x 100 |
| (ROI) | | expenses | |
--------------------------------------------------------------------------------
| | | Balance sheet total - | |
| | | non-interest-bearing liabilities | |
| | | (average during the year) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio % | = | Shareholders' equity | x 100 |
--------------------------------------------------------------------------------
| | | Balance sheet total - advances | |
| | | received | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS) | = | Net profit for the financial year | |
| | | attributable to equity | |
| | | shareholders | |
--------------------------------------------------------------------------------
| | | Adjusted average number of shares | |
| | | for the financial year | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend per share | = | Dividend | |
--------------------------------------------------------------------------------
| | | Adjusted average number of shares | |
| | | for the financial year | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend per earnings % | = | Dividend per share | x 100 |
--------------------------------------------------------------------------------
| | | Earnings per share (EPS) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effective dividend yield | = | Dividend per share | x 100 |
| % | | | |
--------------------------------------------------------------------------------
| | | Share closing price at balance | |
| | | sheet date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P/E ratio | = | Share closing price at balance | |
| | | sheet date | |
--------------------------------------------------------------------------------
| | | Earnings per share (EPS) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per share | = | Equity attributable to the equity | |
| | | holders of the parent company | |
--------------------------------------------------------------------------------
| | | Adjusted number of shares at | |
| | | balance sheet date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gearing ratio % | = | Interest-bearing liabilities - | x 100 |
| | | cash and cash equivalents | |
--------------------------------------------------------------------------------
| | | Shareholders' equity | |
--------------------------------------------------------------------------------
Comptel will announce its interim report for January-September on October 25,
2007.
COMPTEL CORPORATION
Board of Directors
Additional information:
Mr. Sami Erviö, President and CEO, tel. +358 9 700 1131
Mr. Veli Matti Salmenkylä, CFO, tel. +358 50 2813
Mr. Samppa Seppälä, Director, IR and Corporate Communications, tel. +358 50 568
0533
Distribution:
Helsinki Stock Exchange
Major media
© 2024 Nasdaq, Inc. All Rights Reserved |