2017-04-27 07:10:36 CEST
2017-04-27 07:10:36 CEST
REGULATED INFORMATION
Comptel - Interim report (Q1 and Q3)
Comptel Corporation: INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 31 MARCH 2017
Stock exchange release 27 April2017 at 8:10 am INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 31 MARCH 2017 * Net sales on last year's level * Backlog increased by 10.1% Key figures for the First Quarter of 2017: * Net sales EUR 22.6 million (Q1 2016: 22.4), growth 0.9% * Comparable Operating profit EUR 0.0 million (1.8), change -98.4% * Operating profit EUR -0.9 million (1.8), change -150.5% * Net profit EUR -1.4 million (0.8), change -267.6% * Earnings per share EUR -0.01 (0.01), change -264.7% * Order backlog EUR 66.1 million (60.0), growth 10.1 % Outlook We expect 2017 revenue to grow with double digit percentage and we expect comparable EBIT to be between 10-15% of net sales. Characteristically a significant part of Comptel's operating profit and net sales is generated in the second half of the year. Juhani Hintikka, President and CEO: Our net sales were on last year's level, as expected. The net sales decline in the later part of last year stopped and we saw a significant increase in our order intake. Our profitability in the first quarter was lower due to increased investments in later part of 2016 and preparing for the 2017 growth. However, our order intake grew significantly compared to the previous year and our ending backlog, for the next 12 months, grew by 10.1 per cent. We are seeing a shift in the market sentiment and more positive trend going forward. This means we are on track for the full year outlook. The new solutions FlowOne Fulfillment and Monetizer net sales growth continued strong but overall growth was negatively impacted by weaker performance of some of the traditional solutions. On a regional level, the net sales for both EMEA and APAC declined slightly compared to last year's first quarter but the Americas region grew significantly compared to last year's first quarter. In the first quarter, we won a new significant customer in Latin America which gave the region a good start for 2017. The customer interest towards the FWD cloud solution continued strong and key new customer implementations are starting in the first half of 2017 that are expected to contribute to company's growth in 2017. During the first quarter, onetime cost was accumulated due to the Nokia acquisition of Comptel. During the first quarter, we secured 3 significant orders (Q1 2016:2), valued over EUR 1.0 million." Business review of the First Quarter 2017 Comptel net sales grew 0.9% in the first quarter compared to the previous year. The Intelligent Data business unit net sales declined by 18.6 per cent while the Service Orchestration business unit grew by 16.9 per cent. The Service Orchestration growth was due to growth of the FlowOne Fulfillment solution. The comparable operating profit was EUR 0.0 million (1.8). This was due to increased investment levels in R&D and delivery. The IFRS Operating profit was EUR 0.9 million. This includes the transaction costs related to the Nokia acquisition. The result before taxes for the period was EUR -1.1 million (1.4) and the net result for the period was EUR -1.4 million (0.8). The net result declined by 267.6 per cent. Earnings per share for the period were -0.01 (0.01). The tax expenses for the period was EUR 0.3 million (0.6), of which EUR 0.1 million (0.3) were withholding taxes related to double taxation. In January - March Comptel received three significant orders (2), one for Data Refinery and two for the FlowOne Fulfillment solution. Comptel reports orders for sold projects and licenses with a minimum value of EUR 1,000,000. The company's 12-month order backlog increased and was EUR 66.1 million (60.0). Business areas +----------------------------+----+----+-------+ |Net sales, | 1-3| 1-3|Change,| |EUR million |2017|2016| %| +----------------------------+----+----+-------+ |Intelligent Data | 8.5|10.4| -18.6| +----------------------------+----+----+-------+ |Service Orchestration |14.0|11.9| 16.9| +----------------------------+----+----+-------+ |Other | 0.1| 0.0| 1975.0| +----------------------------+----+----+-------+ |Total |22.6|22.4| 0.9| +----------------------------+----+----+-------+ |Comparable Operating profit,| | | | |EUR million | | | | +----------------------------+----+----+-------+ |Intelligent Data |-0,5| 1.7| -131,2| +----------------------------+----+----+-------+ |Service Orchestration | 1,2| 0.7| 59,9| +----------------------------+----+----+-------+ |Other |-0,6|-0.7| -12,0| +----------------------------+----+----+-------+ |Total | 0,0| 1.8| -98,4| +----------------------------+----+----+-------+ |Operating result, | | | | |% of net sales | | | | +----------------------------+----+----+-------+ |Intelligent Data |-6,3|16.5| | +----------------------------+----+----+-------+ |Service Orchestration | 8,5| 6.2| | +----------------------------+----+----+-------+ |Other | 0,0| -| | +----------------------------+----+----+-------+ |Total | 0,1| 7.8| | +----------------------------+----+----+-------+ The net sales of the Intelligent Data unit declined in the first quarter, which also negatively impacted the profitability of the Business Unit. Several key deals for the Intelligent Data unit were postponed to second quarter. The net sales of the Service Orchestration unit grew in the first quarter. Due to growth in net sales, the relative profitability improved for the Service Orchestration business unit. +--------------------------+----+----+---------+ |Net sales breakdown, | 1-3| 1-3|Change, %| |EUR million |2017|2016| | +--------------------------+----+----+---------+ |Project & License business|13.7|14.2| -3.1| +--------------------------+----+----+---------+ |Recurring business | 8.9| 8.2| 7.9| +--------------------------+----+----+---------+ |Total |22.6|22.4| 0.9| +--------------------------+----+----+---------+ Project & License business declined by 3.1 per cent in first quarter while support and maintenance grew by 7.9 per cent. +-----------------------------+----+----+---------+ |Net sales Regional breakdown,| 1-3| 1-3|Change, %| |EUR million |2017|2016| | +-----------------------------+----+----+---------+ |APAC | 7.2| 7.4| -1.8| +-----------------------------+----+----+---------+ |EMEA |12.2|13.3| -8.0| +-----------------------------+----+----+---------+ |AMERICAS | 3.1| 1.7| 81.0| +-----------------------------+----+----+---------+ |Total |22.6|22.4| 0.9| +-----------------------------+----+----+---------+ The Americas region net sales grew by 81 per cent in the first quarter compared to previous year. This was due to new customer wins in Latin America. APAC and EMEA net sales declined in the first quarter. Financial Position +-------------------------------------------+------+-----------+-------+ |EUR million |31 Mar|31 Mar 2016|Change,| | | 2017| | %| +-------------------------------------------+------+-----------+-------+ |Statement of financial position total | 87.1| 79.6| 9.4| +-------------------------------------------+------+-----------+-------+ |Liquid assets | 3.5| 12.7| -72.8| +-------------------------------------------+------+-----------+-------+ |Trade receivables, gross | 36.8| 29.3| 25.7| +-------------------------------------------+------+-----------+-------+ |Bad debt provision | -1.7| -1.8| -5.4| +-------------------------------------------+------+-----------+-------+ |Trade receivables, net | 35.1| 27.5| 27.7| +-------------------------------------------+------+-----------+-------+ |Accrued income | 17.4| 11.4| 52.3| +-------------------------------------------+------+-----------+-------+ |Deferred income related to partial debiting| 4.0| 3.9| 4.5| +-------------------------------------------+------+-----------+-------+ |Interest-bearing debt | 6.6| 8.1| -18.9| +-------------------------------------------+------+-----------+-------+ |Equity ratio, per cent | 66.0| 61.0| 8.1| +-------------------------------------------+------+-----------+-------+ The statement of the financial position on 31 Mar 2017 was EUR 87.1 million (79.6), of which liquid assets amounted to EUR 3.5 million (12.7). The operating cash flow was EUR -0.8 million (11.0) in the first quarter of 2017. Trade receivables were EUR 35.1 million (27.5) at the end of the period. The accrued income was EUR 17.4 million (11.4). The deferred income related to partial debiting was EUR 4.0 million (3.9). Comptel has a EUR 25 million credit facility arrangement consisting of a EUR 20 million revolving credit facility and a EUR 5 million overdraft capacity on the current bank account. Out of this arrangement Comptel had EUR 6 million of the revolving credit facility outstanding at the end of the period. The credit facility is valid until July 2018. The equity ratio was 66.0 per cent (61.0) and the gearing 7.0 per cent (-12.1). Research and Development (R&D) +-----------------------------------------------------+----+----+------+ |EUR million | 1-3| 1-3|Change| | |2017|2016| %| +-----------------------------------------------------+----+----+------+ |Direct R&D expenditure | 6.1| 4.6| 30.7| +-----------------------------------------------------+----+----+------+ |Capitalisation of R&D expenditure according to IAS 38|-2.1|-1.3| 58.3| +-----------------------------------------------------+----+----+------+ |R&D depreciation and impairment charges | 1.5| 1.4| 10.3| +-----------------------------------------------------+----+----+------+ |R&D expenditure, net | 5.4| 4.7| 16.8| +-----------------------------------------------------+----+----+------+ |Direct R&D expenditure, % of net sales |26.9|20.7| | +-----------------------------------------------------+----+----+------+ Direct R&D expenditure represented 26.9 per cent (20.7) of net sales. The key focus of Comptel's R&D expenditure was in the further development of our existing solutions (Service Orchestration and Intelligent Data) and FWD, a time- based mobile data marketing solution. Development work focused on securing recurring revenue with competitive products, winning new markets by giving customers unique value, and by improving margins with better deployment and scalability of our products. The FlowOne Fulfillment solution ensures unified order and service delivery flows for orchestrating services. FlowOne V is a design-led service orchestration solution for virtual networks. Data Refinery captures data-in- motion, turns raw data into immediate value and integrates into any data source. Monetizer is the business policy and charging solution that allows launching offers fast to market and innovating and designing of rich communication and data. Fastermind offers artificial intelligence apps, predictive analytics and machine learning capabilities for digital telcos. In all of these areas, Comptel seeks global thought leadership in solving the business challenges of operators and digital communications service providers. During 2017, the company will continue to develop its current offering. In first quarter of 2017 five major software releases were launched in the product areas mentioned above. Investments +-------------------------------------------------------------+----+----+------+ |EUR million | 1-3| 1-3|Change| | |2017|2016| %| +-------------------------------------------------------------+----+----+------+ |Gross investments in property, plant and equipment and | 0.1| 0.1| -42.2| |intangible assets | | | | +-------------------------------------------------------------+----+----+------+ The investments comprised of devices, software and furnishings. The investments were funded through cash flow from operations. Personnel +----------------------------------+-----------+------+-------+------+---------+ | |31 Mar 2017|31 mar|Change,|31 Dec|Change, %| | | | 2016| %| 2016| | +----------------------------------+-----------+------+-------+------+---------+ |Number of employees at the end of | 821| 749| 9.6| 837| -1.9| |period | | | | | | +----------------------------------+-----------+------+-------+------+---------+ +---------------------------------------------+----+----+---------+----+-------+ | | 1-3| 1-3|Change, %|1-12|Change,| | |2017|2016| |2016| %| +---------------------------------------------+----+----+---------+----+-------+ |Average number of personnel during the period| 823| 741| 11.1| 791| 4.0| +---------------------------------------------+----+----+---------+----+-------+ At the end of the period, 27.6 per cent (28.8) of the personnel was located in Finland, 21,4 per cent (24.4) in Malaysia, 15.3 per cent (12.1) in India, 13.2 per cent (11.5) in Bulgaria, and 22.5 per cent (23.2) in other countries where Comptel operates. Comptel share The closing share price of the period was EUR 3.04 (1.54). Comptel's market value at the end of the period was EUR 332.4 million (166.7). +--------------------------+-+----+----+--------+----+ |Comptel share | | 1-3| 1-3|Change %|1-12| | | |2017|2016| |2016| +--------------------------+-+----+----+--------+----+ |Shares traded, million | |21,3|14,7| 44,4|48.4| +--------------------------+-+----+----+--------+----+ |Shares traded, EUR million| |63,1|21,7| 190,8|92.4| +--------------------------+-+----+----+--------+----+ |Highest price, EUR | |3,05|1,66| 83.7|2.65| +--------------------------+-+----+----+--------+----+ |Lowest price, EUR | |2,30|1,36| 69.1|1.19| +--------------------------+-+----+----+--------+----+ Of Comptel's outstanding shares, 15.7 per cent (6.0) were nominee registered or held by foreign shareholders at the end of the period. At the end of the period, the company held 117,129 of its own shares, which represents 0.11 per cent of the total number of shares. The total counter-book value of the shares held by the company was EUR 2,291. Corporate Governance Comptel Corporation's Annual General Meeting (AGM) was held on 4 April 2016. The AGM resolved the number of Board members to be five. Mr. Pertti Ervi, Mr. Hannu Vaajoensuu, Ms. Eriikka Söderström, Mr. Antti Vasara and Mr. Thomas Berlemann were re-elected as members of the Board of Directors. The AGM appointed Ernst & Young Oy as the company's auditor. Mr. Mikko Järventausta is acting as the principal auditor. The AGM resolved that no dividend will be paid for the year 2016. In its meeting held after the Annual General Meeting, the Board of Directors elected Mr. Pertti Ervi as chairman and Mr. Hannu Vaajoensuu as vice chairman. The Board decided not to setup committees. The AGM authorised the Board of Directors to decide on share issues amounting to a maximum of 21,400,000 new shares and on the repurchase or conveying of the company's own shares up to a maximum number of 10,700,000 shares. The authorisations are valid until 30 June 2018. However, the authorisation to implement the company's share-based incentive programs is valid for five years from the AGM resolution. A separate stock exchange release about the authorisations given and other decisions made by the Annual General Meeting was published on 4 April 2017. Events after the Reporting Period Nokia has confirmed receiving over 90% ownership of Comptel shares and options, of which a separate stock exchange was released on 3 April. The Company AGM was held on 4 April, the decisions of which a separate stock exchange was published on 4 April. Nokia has commenced the redemption proceedings related to remaining Comptel minority shareholders. A separate stock exchange release was issued on this on 7 April. An extra ordinary general meeting invitation was issued on 11 April. Near-term Risks and Uncertainties Comptel develops dynamic end-to-end solutions for leading operators globally in the telecom field. This requires Comptel to understand correctly the trends taking place in its business environment and the needs of its customers and resellers by each region. Failure to identify market conditions, address customers' needs and develop its products in a timely way may significantly undermine the growth of Comptel's business and its profitability. Characteristics of Comptel's field of industry are significant quarterly variations of net sales and profit, which are related to customers' purchasing behaviour and the timing of major single deals. Comptel's business consists of deliveries of large productised IT systems, and the value of a single project may be several million euros. Therefore, the credit risk associated with a single project or an individual customer may be significant. Furthermore, some of Comptel's customers operate in countries where the political or financial climate can be unstable which in part may increase credit risk. Comptel operates globally, so it is exposed to risks arising from different currency positions. Exchange rate changes between the Euro, which is the company's reporting currency, and the US Dollar, UK Pound Sterling and Malaysian Ringgit affect the company's net sales, expenses and net profit. The application process to prevent Comptel's double taxation is still pending with the Ministry of Finance in Finland. However, the process between the states is very slow and the timing of change is hard to forecast. The interpretation of tax treaties may result in different views between the countries in question. This could mean that the double taxation will prevail. Comptel has also applications for return of withholding taxes in other countries but they are subject to local legal processes, which take time to get completed. The risks and uncertainties of Comptel are described in more detail in the company's financial statements and the Board of Directors' report for 2016. Outlook: We expect 2017 revenue to grow with double digit percentage and we expect EBIT to be between 10-15%. Characteristically a significant part of Comptel's operating profit and net sales is generated in the second half of the year. COMPTEL CORPORATION Board of Directors Additional information: Mr Juhani Hintikka, President and CEO, tel. +358 9 700 1131 Mr Tom Jansson, CFO, tel. +358 40 700 1849 TABLE PART The interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU. The accounting policies and methods of computation adopted in the financial statements are consistent with those of the annual financial statements for the year ended 2016. 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 Statement of Comprehensive Income (EUR | 1 Jan -| 1 Jan -| |1,000) |31 Mar 2017|31 Mar 2016| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Net sales | 22,594| 22,392| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Other operating income | 5| 3| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Materials and services | -1,012| -1,118| +------------------------------------------------------+-----------+-----------+ |Employee benefits | -11,069| -10,194| +------------------------------------------------------+-----------+-----------+ |Depreciation, amortisation and impairment charges | -1,736| -1,621| +------------------------------------------------------+-----------+-----------+ |Other operating expenses | -9,667| -7,707| +------------------------------------------------------+-----------+-----------+ | | -23,484| -20,640| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Operating profit/loss | -886| 1,755| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Financial income | 525| 905| +------------------------------------------------------+-----------+-----------+ |Financial expenses | -747| -1,238| +------------------------------------------------------+-----------+-----------+ |Share of results of associated companies | 0| 0| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Profit/loss before income taxes | -1,108| 1,421| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Income taxes | -278| -593| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Profit/loss for the period | -1,387| 827| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Other comprehensive income: | | | +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Other comprehensive income to be reclassified to | | | |profit or loss in subsequent periods | | | +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Translation differences | 391| 669| +------------------------------------------------------+-----------+-----------+ |Cash flow hedges | 71| -464| +------------------------------------------------------+-----------+-----------+ |Income tax relating to components of other | -78| -134| |comprehensive income | | | +------------------------------------------------------+-----------+-----------+ |Total other comprehensive income | 384| 72| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Total comprehensive income for the period | -1,003| 899| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Profit/loss attributable to: | | | +------------------------------------------------------+-----------+-----------+ |Equity holders of the parent company | -1,387| 827| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Total comprehensive income attributable to: | | | +------------------------------------------------------+-----------+-----------+ |Equity holders of the parent company | -1,387| 827| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Shareholders of the parent company: | | | +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Earnings per share, EUR | -0.01| 0.01| +------------------------------------------------------+-----------+-----------+ |Earnings per share, diluted, EUR | -0.01| 0.01| +------------------------------------------------------+-----------+-----------+ +----------------------------------------+------------+------------+-----------+ | | | | | |Consolidated Statement of Financial |31 Mar 2017 |31 Mar 2016 |31 Dec 2016| |Position (EUR 1,000) | | | | +----------------------------------------+------------+------------+-----------+ | | | | | +----------------------------------------+------------+------------+-----------+ |Assets | | | | +----------------------------------------+------------+------------+-----------+ | | | | | +----------------------------------------+------------+------------+-----------+ |Non-current assets | | | | +----------------------------------------+------------+------------+-----------+ |Goodwill | 2,646| 2,646| 2,646| +----------------------------------------+------------+------------+-----------+ |Other intangible assets | 14,689| 12,750| 14,095| +----------------------------------------+------------+------------+-----------+ |Tangible assets | 1,589| 1,101| 1,707| +----------------------------------------+------------+------------+-----------+ |Investments in associates | 788| 960| 788| +----------------------------------------+------------+------------+-----------+ |Available-for-sale financial assets | 87| 87| 87| +----------------------------------------+------------+------------+-----------+ |Deferred tax assets | 8,850| 8,005| 8,242| +----------------------------------------+------------+------------+-----------+ |Other non-current receivables | 528| 716| 570| +----------------------------------------+------------+------------+-----------+ | | 29,277| 26,265| 28,135| +----------------------------------------+------------+------------+-----------+ | | | | | +----------------------------------------+------------+------------+-----------+ |Current assets | | | | +----------------------------------------+------------+------------+-----------+ |Trade and other current receivables | 53,531| 39,949| 56,977| +----------------------------------------+------------+------------+-----------+ |Current tax asset | 857| 710| 532| +----------------------------------------+------------+------------+-----------+ |Cash and cash equivalents | 3,457| 12,721| 9,242| +----------------------------------------+------------+------------+-----------+ | | 57,845| 53,381| 66,751| +----------------------------------------+------------+------------+-----------+ | | | | | +----------------------------------------+------------+------------+-----------+ |Total assets | 87,122| 79,645| 94,886| +----------------------------------------+------------+------------+-----------+ | | | | | +----------------------------------------+------------+------------+-----------+ |Equity and liabilities | | | | +----------------------------------------+------------+------------+-----------+ | | | | | +----------------------------------------+------------+------------+-----------+ |Equity attributable to equity holders of| | | | |the parent company | | | | +----------------------------------------+------------+------------+-----------+ | | | | | +----------------------------------------+------------+------------+-----------+ |Share capital | 2,141| 2,141| 2,141| +----------------------------------------+------------+------------+-----------+ |Fund of invested non-restricted equity | 2,064| 1,698| 1,975| +----------------------------------------+------------+------------+-----------+ |Fair value reserve | -94| 365| -407| +----------------------------------------+------------+------------+-----------+ |Translation differences | -1,372| -973| -1,443| +----------------------------------------+------------+------------+-----------+ |Retained earnings | 41,910| 34,789| 42,783| +----------------------------------------+------------+------------+-----------+ |Total equity | 44,648| 38,019| 45,049| +----------------------------------------+------------+------------+-----------+ | | | | | +----------------------------------------+------------+------------+-----------+ |Non-current liabilities | | | | +----------------------------------------+------------+------------+-----------+ |Deferred tax liabilities | 2,933| 2,682| 2,805| +----------------------------------------+------------+------------+-----------+ |Non-current financial liabilities | 450| 58| 491| +----------------------------------------+------------+------------+-----------+ | | 3,382| 2,741| 3,296| +----------------------------------------+------------+------------+-----------+ | | | | | +----------------------------------------+------------+------------+-----------+ |Current liabilities | | | | +----------------------------------------+------------+------------+-----------+ |Provisions | 118| 1,021| 116| +----------------------------------------+------------+------------+-----------+ |Current financial liabilities | 6,148| 8,079| 8,993| +----------------------------------------+------------+------------+-----------+ |Trade and other current liabilities | 32,826| 29,786| 37,432| +----------------------------------------+------------+------------+-----------+ | | 39,092| 38,886| 46,541| +----------------------------------------+------------+------------+-----------+ | | | | | +----------------------------------------+------------+------------+-----------+ |Total liabilities | 42,475| 41,626| 49,837| +----------------------------------------+------------+------------+-----------+ | | | | | +----------------------------------------+------------+------------+-----------+ |Total equity and liabilities | 87,122| 79,645| 94,886| +----------------------------------------+------------+------------+-----------+ +------------------------------------------------+--------------+--------------+ |Consolidated Statement of Cash Flows |1 Jan - 31 Mar|1 Jan - 31 Mar| |(EUR 1,000) | 2017| 2016| +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Cash flows from operating activities | | | +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Profit/loss for the period | -1,387| 827| +------------------------------------------------+--------------+--------------+ |Adjustments: | | | +------------------------------------------------+--------------+--------------+ |Non-cash transactions or items that are not part| | | |of cash flows from operating activities | 2,429| 1,982| +------------------------------------------------+--------------+--------------+ |Interest and other financial expenses | 49| 49| +------------------------------------------------+--------------+--------------+ |Interest income | -6| -| +------------------------------------------------+--------------+--------------+ |Income taxes | 208| 593| +------------------------------------------------+--------------+--------------+ |Change in working capital: | | | +------------------------------------------------+--------------+--------------+ |Change in trade and other current receivables | 3,087| 16,536| +------------------------------------------------+--------------+--------------+ |Change in trade and other current liabilities | -4,335| -8,952| +------------------------------------------------+--------------+--------------+ |Change in provisions | 3| 671| +------------------------------------------------+--------------+--------------+ |Interest and other financial expenses paid | -49| -49| +------------------------------------------------+--------------+--------------+ |Interest received | 6| -| +------------------------------------------------+--------------+--------------+ |Income taxes paid and tax returns received | -765| -957| +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Net cash from operating activities | -761| 10,700| +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Cash flows from investing activities | | | +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Investments in tangible assets | -71| -123| +------------------------------------------------+--------------+--------------+ |Investments in intangible assets | -| -| +------------------------------------------------+--------------+--------------+ |Investments in development projects | -2,135| -1,348| +------------------------------------------------+--------------+--------------+ |Proceeds from the sale of tangible assets | -| 1| +------------------------------------------------+--------------+--------------+ |Change in other non-current receivables | -52| -99| +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Net cash used in investing activities | -2,258| -1,570| +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Cash flows from financing activities | | | +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Dividends paid | -| -| +------------------------------------------------+--------------+--------------+ |Additional investment into equity | -| -| +------------------------------------------------+--------------+--------------+ |Proceeds from share options | 89| -| +------------------------------------------------+--------------+--------------+ |Proceeds from borrowings | 5,989| 1,010| +------------------------------------------------+--------------+--------------+ |Repayment of borrowings | -8,815| -| +------------------------------------------------+--------------+--------------+ |Change in lease liabilities | -61| -45| +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Net cash used in financing activities | -2,798| 965| +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Net change in cash and cash equivalents | -5,817| 10,095| +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Cash and cash equivalents at the beginning of | | | |the period | 9,242| 3,030| +------------------------------------------------+--------------+--------------+ |Cash and cash equivalents at the end of the | | | |period | 3,457| 12,721| +------------------------------------------------+--------------+--------------+ |Change | -5,785| 9,691| +------------------------------------------------+--------------+--------------+ | | | | +------------------------------------------------+--------------+--------------+ |Effects of changes in foreign exchange rates | 32| -404| +------------------------------------------------+--------------+--------------+ +-----------------------------------------------------------------------+ |Consolidated Statement of Changes in Equity | +-----------------------------------------------------------------------+ |Equity attributable to equity holders of the parent company | +---------------+---------+----------+-------------+---------+----------+------+ | | | | | Fair| | | | | Share| Other| Translation| value| Retained| | |EUR 1,000 | capital| reserves| differences| reserve| earnings| Total| +---------------+---------+----------+-------------+---------+----------+------+ |Equity at | | | | | | | |31 Dec 2015 | 2,141| 1,698| -510| -170| 34,165|37,324| +---------------+---------+----------+-------------+---------+----------+------+ |Share-based | | | | | | | |compensation | | | | | 79| 79| +---------------+---------+----------+-------------+---------+----------+------+ |Prior year | | | | | | | |correction * | | | | | -283| -283| +---------------+---------+----------+-------------+---------+----------+------+ |Total | | | | | | | |comprehensive | | | | | | | |income for the | | | | | | | |period | | | -463| 535| 827| 899| +---------------+---------+----------+-------------+---------+----------+------+ |Equity at | | | | | | | |31 Mar 2016 | 2,141| 1,698| -973| 365| 34,788|38,019| +---------------+---------+----------+-------------+---------+----------+------+ +-------------------------------------------------------------+ |Consolidated Statement of Changes in Equity | +-------------------------------------------------------------+ |Equity attributable to equity holders of the parent company | +---------------+---------+----------+-------------+---------++---------+------+ | | | | | Fair| | | | | Share| Other| Translation| value| Retained| | |EUR 1,000 | capital| reserves| differences| reserve| earnings| Total| +---------------+---------+----------+-------------+---------+----------+------+ |Equity at | | | | | | | |31 Dec 2016 | 2,141| 1,975| -1,444| -407| 42,784|45,049| +---------------+---------+----------+-------------+---------+----------+------+ |Share-based | | | | | | | |compensation | | | | | 512| 512| +---------------+---------+----------+-------------+---------+----------+------+ |Shares issued | | 89| | | | 89| +---------------+---------+----------+-------------+---------+----------+------+ |Total | | | | | | | |comprehensive | | | | | | | |income for the | | | | | | | |period | | | 72| 313| -1,387|-1,002| +---------------+---------+----------+-------------+---------+----------+------+ |Equity at | | | | | | | |31 Mar 2017 | 2,141| 2,064| -1,372| -94| 41,909|44,648| +---------------+---------+----------+-------------+---------+----------+------+ *Prior year expenses were corrected directly to Retained Earnings during the reporting periods. Notes 1. Application of new or amended standards and interpretations Comptel has adopted the new or amended standards and interpretations, effective for the financial years beginning on or after 1 January 2017. However, those have not had an impact on the consolidated financial statements. 2. Comparable operating results +-------------------------------------------------+-----------+ |EUR 1,000 | 1 Jan -| | |31 Mar 2017| +-------------------------------------------------+-----------+ | | | +-------------------------------------------------+-----------+ |Operating results | -886| +-------------------------------------------------+-----------+ |Adjustments due to change in the group ownership:| | +-------------------------------------------------+-----------+ |Advisor expenses | 508| +-------------------------------------------------+-----------+ |Accelerated option expenses | 407| +-------------------------------------------------+-----------+ |Comparable operating results | 29| +-------------------------------------------------+-----------+ 3. Segment information Net sales by segment +---------------------+-----------+-----------+ |EUR 1,000 | 1 Jan -| 1 Jan -| | |31 Mar 2017|31 Mar 2016| +---------------------+-----------+-----------+ | | | | +---------------------+-----------+-----------+ |Intelligent Data | 8,501| 10,439| +---------------------+-----------+-----------+ |Service Orchestration| 13,963| 11,946| +---------------------+-----------+-----------+ |Other | 129| 6| +---------------------+-----------+-----------+ |Group total | 22,594| 22,392| +---------------------+-----------+-----------+ Operating profit/loss by segment +---------------------------------+-----------+-----------+ |EUR 1,000 | 1 Jan -| 1 Jan -| | |31 Mar 2017|31 Mar 2016| +---------------------------------+-----------+-----------+ | | | | +---------------------------------+-----------+-----------+ |Intelligent Data | -846| 1,717| +---------------------------------+-----------+-----------+ |Service Orchestration | 563| 739| +---------------------------------+-----------+-----------+ |Other | -603| -701| +---------------------------------+-----------+-----------+ |Group operating profit/loss total| -886| 1,755| +---------------------------------+-----------+-----------+ 4. Income tax Income tax expense according to the statement of comprehensive income for the period was EUR 278 thousand (EUR 593 thousand). In 2006, the Board of Adjustment of the Tax Office for Major Corporations refused to accept the crediting of taxes withheld at source in taxation of 2004 and 2005. The application process to prevent Comptel's double taxation is still pending with the Ministry of Finance in Finland. However, the process between the states is very slow and the timing of a change is hard to forecast. The interpretation of tax treaties may result in different views between the countries in question. This could mean that the double taxation will prevail. According to the Board of Adjustment's decision currently in force, Comptel Corporation has expensed taxes withheld at source amounting to EUR 123 thousand in January - March (EUR 300 thousand). 5. Tangible assets +---------+-----------+-----------+ |EUR 1,000| 1 Jan -| 1 Jan -| | |31 Mar 2017|31 Mar 2016| +---------+-----------+-----------+ | | | | +---------+-----------+-----------+ |Additions| 71| 123| +---------+-----------+-----------+ |Decreases| -| -1| +---------+-----------+-----------+ 6. Related party transactions The Comptel Group have a related party relationship with its associate, the Board of Directors, the Executive Board and also with people and companies under Comptel management's influence. Transactions which have been entered into with related parties are as follows: +---------------+-----------+-----------+ |EUR 1,000 | 1 Jan -| 1 Jan -| | |31 Mar 2017|31 Mar 2016| +---------------+-----------+-----------+ | | | | +---------------+-----------+-----------+ |Associate | | | +---------------+-----------+-----------+ |Interest income| 2| 2| +---------------+-----------+-----------+ +-----------------------+-----------+-----------+ |EUR 1,000 |31 Mar 2017|31 Mar 2016| +-----------------------+-----------+-----------+ | | | | +-----------------------+-----------+-----------+ |Associate | | | +-----------------------+-----------+-----------+ |Non-current receivables| 130| 123| +-----------------------+-----------+-----------+ Remuneration to key management Key management personnel compensation includes the employee benefits of the members of the Board of Directors and the Executive Board. +--------------------------------------+-------------------+-------------------+ |EUR 1,000 |1 Jan - 31 Mar 2017|1 Jan - 31 Mar 2016| +--------------------------------------+-------------------+-------------------+ | | | | +--------------------------------------+-------------------+-------------------+ |Salaries and other short-term employee| | | |benefits | 384| 344| +--------------------------------------+-------------------+-------------------+ |Share-based payments | 69| -72| +--------------------------------------+-------------------+-------------------+ |Total | 453| 272| +--------------------------------------+-------------------+-------------------+ Guarantees and other commitments +----------+-----------+-----------+ |EUR 1,000 |31 Mar 2017|31 Mar 2016| +----------+-----------+-----------+ | | | | +----------+-----------+-----------+ |Guarantees| -| 10| +----------+-----------+-----------+ 7. Commitments Minimum lease payments on non-cancellable office facilities and other operating leases are payable as follows: +--------------------------+-----------+-----------+ |EUR 1,000 |31 Mar 2017|31 Mar 2016| +--------------------------+-----------+-----------+ | | | | +--------------------------+-----------+-----------+ |Less than one year | 2,476| 2,004| +--------------------------+-----------+-----------+ |Between one and five years| 5,639| 6,779| +--------------------------+-----------+-----------+ |More than five years | 274| -| +--------------------------+-----------+-----------+ |Total | 8,388| 8,784| +--------------------------+-----------+-----------+ The group had no material capital commitments for the purchase of tangible assets at 31 March 2017 and 31 March 2016. 8. Contingent liabilities +-------------------+-----------+-----------+ |EUR 1,000 |31 Mar 2017|31 Mar 2016| +-------------------+-----------+-----------+ | | | | +-------------------+-----------+-----------+ |Bank guarantees | 3,770| 2,421| +-------------------+-----------+-----------+ |Corporate mortgages| 200| 200| +-------------------+-----------+-----------+ +------------------------------------------+-----------+-----------+ |EUR 1,000 |31 Dec 2016|31 Dec 2015| +------------------------------------------+-----------+-----------+ | | | | +------------------------------------------+-----------+-----------+ |Contingent liabilities on behalf of others| | | +------------------------------------------+-----------+-----------+ |Guarantees | -| 28| +------------------------------------------+-----------+-----------+ 9. Fair values of financial assets and liabilities +-------------+----------+----------+----------+---------+----------+----------+ | | | | | Fair| | | | |Book value|Fair value|Book value| value|Book value|Fair value| |EUR 1,000 | 31.3.2017| 31.3.2017| 31.3.2016|31.3.2016|31.12.2016|31.12.2016| +-------------+----------+----------+----------+---------+----------+----------+ |Financial | | | | | | | |assets | | | | | | | +-------------+----------+----------+----------+---------+----------+----------+ |Financial | | | | | | | |assets at | | | | | | | |fair value | | | | | | | |through | | | | | | | |profit or | | | | | | | |loss | | | | | | | +-------------+----------+----------+----------+---------+----------+----------+ |Forward | | | | | | | |contracts | | | | | | | |(level 2) | 127| 127| 442| 442| 108| 108| +-------------+----------+----------+----------+---------+----------+----------+ |Available- | | | | | | | |for-sale | | | | | | | |financial | | | | | | | |assets (level| | | | | | | |3)) | 87| 87| 87| 87| 87| 87| +-------------+----------+----------+----------+---------+----------+----------+ |Non-current | | | | | | | |trade | | | | | | | |receivables | 5,689| 5,689| 2,237| 2,237| 4,473| 4,473| +-------------+----------+----------+----------+---------+----------+----------+ |Current trade| | | | | | | |receivables | 31,110| 31,110| 27,050| 27,050| 35,908| 35,908| +-------------+----------+----------+----------+---------+----------+----------+ |Other current| | | | | | | |receivables | 2,987| 2,987| 965| 965| 3,115| 3,115| +-------------+----------+----------+----------+---------+----------+----------+ |Cash and cash| | | | | | | |equivalents | 3,457| 3,457| 12,721| 12,721| 9,242| 9,242| +-------------+----------+----------+----------+---------+----------+----------+ | | | | | | | | +-------------+----------+----------+----------+---------+----------+----------+ |Financial | | | | | | | |liabilities | | | | | | | +-------------+----------+----------+----------+---------+----------+----------+ |Financial | | | | | | | |liabilities | | | | | | | |at fair value| | | | | | | |through | | | | | | | |profit or | | | | | | | |loss | | | | | | | +-------------+----------+----------+----------+---------+----------+----------+ |Forward | | | | | | | |contracts | | | | | | | |(level 2) | 527| 527| 48| 48| 633| 633| +-------------+----------+----------+----------+---------+----------+----------+ |Trade | | | | | | | |payables and | | | | | | | |other | | | | | | | |liabilities | 32,826| 32,826| 29,786| 29,786| 36,799| 36,799| +-------------+----------+----------+----------+---------+----------+----------+ |Non-current | | | | | | | |loans from | | | | | | | |financial | | | | | | | |institutions | -| -| 22| 22| -| -| +-------------+----------+----------+----------+---------+----------+----------+ |Non-current | | | | | | | |finance lease| | | | | | | |liabilities | 350| 450| 36| 36| 491| 491| +-------------+----------+----------+----------+---------+----------+----------+ |Current loans| | | | | | | |from | | | | | | | |financial | | | | | | | |institutions | 5,962| 5,969| 7,984| 7,995| 7,973| 7,973| +-------------+----------+----------+----------+---------+----------+----------+ |Current bank | | | | | | | |overdraft | | | | | | | |facility | -| -| -| -| 815| 815| +-------------+----------+----------+----------+---------+----------+----------+ |Current | | | | | | | |finance lease| | | | | | | |liabilities | 186| 186| 95| 95| 205| 205| +-------------+----------+----------+----------+---------+----------+----------+ 10. Key figures +------------------------------------------------------+-----------+-----------+ |Financial summary | 1 Jan -| 1 Jan-| | |31 Mar 2017|31 Mar 2016| +------------------------------------------------------+-----------+-----------+ | | | | +------------------------------------------------------+-----------+-----------+ |Net sales, EUR 1,000 | 22,594| 22,392| +------------------------------------------------------+-----------+-----------+ | Net sales, change % | 0.9| 6.8| +------------------------------------------------------+-----------+-----------+ |Operating profit/loss, EUR 1,000 | 886| 1,755| +------------------------------------------------------+-----------+-----------+ | Operating profit/loss, change % | -150.5| 17.5| +------------------------------------------------------+-----------+-----------+ | Operating profit/loss, as % of net sales | -3.9| 7.8| +------------------------------------------------------+-----------+-----------+ |Profit/loss before taxes, EUR 1,000 | -1,108| 1,421| +------------------------------------------------------+-----------+-----------+ | Profit/loss before taxes, as % of net sales | -4.9| 6.3| +------------------------------------------------------+-----------+-----------+ |Return on equity, % | -| -| +------------------------------------------------------+-----------+-----------+ |Return on investment, % | -| -| +------------------------------------------------------+-----------+-----------+ |Equity ratio, % | 66.0| 61.0| +------------------------------------------------------+-----------+-----------+ |Gross investments in tangible and intangible assets, | | | |EUR 1,000(1)) | 71| 123| +------------------------------------------------------+-----------+-----------+ |Gross investments in tangible and intangible assets, | | | |as % of net sales | 0.3| 0.6| +------------------------------------------------------+-----------+-----------+ |Capitalizations according to IAS 38 to intangible | | | |assets, EUR 1,000 | 2,135| 1,348| +------------------------------------------------------+-----------+-----------+ |Research and development expenditure, EUR 1,000 | 6,067| 4,640| +------------------------------------------------------+-----------+-----------+ |Research and development expenditure, | | | |as % of net sales | 26.9| 20.7| +------------------------------------------------------+-----------+-----------+ |Order backlog, EUR 1,000 | 66,055| 60,011| +------------------------------------------------------+-----------+-----------+ |Average number of employees during the period | 823| 741| +------------------------------------------------------+-----------+-----------+ |Interest-bearing net liabilities, EUR 1,000 | 3,141| -4,584| +------------------------------------------------------+-----------+-----------+ |Gearing ratio, % | 7.0| -12.1| +------------------------------------------------------+-----------+-----------+ (1)) The figure does not include investments in development projects. +---------------------------------------------------+-----------+-----------+ |Per share data | 1 Jan -| 1 Jan-| | |31 Mar 2017|31 Mar 2016| +---------------------------------------------------+-----------+-----------+ | | | | +---------------------------------------------------+-----------+-----------+ |Earnings per share (EPS), EUR | -0.01| 0.01| +---------------------------------------------------+-----------+-----------+ |EPS diluted, EUR | -0.01| 0.01| +---------------------------------------------------+-----------+-----------+ |Equity per share, EUR | 0.41| 0.34| +---------------------------------------------------+-----------+-----------+ |Dividend per share, EUR | -| -| +---------------------------------------------------+-----------+-----------+ |Dividend per earnings, % | -| -| +---------------------------------------------------+-----------+-----------+ |Effective dividend yield, % | -| -| +---------------------------------------------------+-----------+-----------+ |P/E ratio | -| -| +---------------------------------------------------+-----------+-----------+ | | | | +---------------------------------------------------+-----------+-----------+ |Adjusted number of shares at the end of the period |109,457,246|108,395,409| +---------------------------------------------------+-----------+-----------+ |of which the number of treasury shares | 117,129| 418,507| +---------------------------------------------------+-----------+-----------+ |Outstanding shares |109,340,117|107,976,902| +---------------------------------------------------+-----------+-----------+ |Adjusted average number of shares during the period|108,685,905|107,370,551| +---------------------------------------------------+-----------+-----------+ |Average number of shares, dilution included |113,514,877|110,119,850| +---------------------------------------------------+-----------+-----------+ 11. Definition of key figures +------------------------------------------------------------------------------+ | | | | |Operating margin % = Operating profit/loss x100| | ------------------------------------- | | Net sales | | | | | | | |Profit margin (before income taxes) = Profit/loss before taxes | |% x100| | ------------------------------------- | | Net sales | | | | | | | |Return on equity % (ROE) = Profit/loss x100| | ------------------------------------- | | Total equity (average during year) | | | | | | | |Return on investment % (ROI) = Profit/loss before taxes + | | financial expenses x100| | ------------------------------------- | | Total equity + interest bearing | | liabilities (average during the | | year) | | | | | | | |Equity ratio % = Total equity x100| | ------------------------------------- | | Statement of financial position | | total - advances received | | | | | | | |Gross investments in tangible and Gross investments in tangible and | |intangible assets, as % of net = intangible assets | |sales x100| | ------------------------------------- | | Net sales | | | | | | | |Research and development = Research and development | |expenditure, as % of net sales expenditure x100| | ------------------------------------- | | Net sales | | | | | | | |Gearing ratio % = Interest-bearing liabilities - cash | | and cash equivalents x100| | ------------------------------------- | | Total equity | | | | | | | |Earnings per share (EPS) = Profit/loss for the financial year | | attributable to equity shareholders | | ------------------------------------- | | Average number of outstanding | | shares for the financial year | | | | | | | |Equity per share = Equity attributable to the equity | | holders of the parent company | | ------------------------------------- | | Adjusted number of shares at the | | end of period | | | | | | | |Dividend per share = Dividend | | ------------------------------------- | | Adjusted number of shares at the | | end of period | | | | | | | |Dividend per earnings % = Dividend per share x100| | ------------------------------------- | | Earnings per share (EPS) | | | | | | | |Effective dividend yield % = Dividend per share x100| | ------------------------------------- | | Share closing price at end of | | period | | | | | | | | P/E ratio = Share closing price at end of | | period | | ------------------------------------- | | Earnings per share (EPS) | | | | | +------------------------------------------------------------------------------+ []
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