Ixonos - Company Announcement

Ixonos books nonrecurring costs of approximately EUR 3 million on September and arranges financing

Helsinki, Finland, 2012-09-03 13:00 CEST (GLOBE NEWSWIRE) -- 

Ixonos Plc            Stock Exchange Release           3 September 2012 at 14:00



IXONOS BOOKS NONRECURRING COSTS OF APPROXIMATELY EUR 3 MILLION ON SEPTEMBER AND
ARRANGES FINANCING 

Changes in Ixonos' operating environment, which started in 2011, have gained
momentum during this year. Due to changes in major customer's technology
strategy, demand for Ixonos' mobile software development services in Finland
has significantly decreased during the year. Ixonos plans to book on September
approximately EUR 3 million nonrecurring costs due to adjustment of its
operations. The booking is mainly related to lease payments for the next 12
months in premises that are not necessary for the operations anymore, to the
employment termination costs and to the write-offs of certain balance sheet
items related to premises and R&D accruals. 

The actions of the reorganization and efficiency program, which cause
nonrecurring costs, are ongoing in Finland, Estonia, Slovakia and Ixonos´ Asian
entities. The actions of the reorganization and efficiency program are expected
to be completed during the first quarter of 2013. 

To arrange its financing Ixonos has signed an agreement to change the maturity
of the company's interest-bearing debts and additional financing with Nordea
Bank, Pension Fennia, Fennia, Finnvera and Garantia Insurance company. 

According to the agreement, the financial institutions grant Ixonos EUR 3
million debt financing. At the same time the maturity of current short-term
debts EUR 3.5 million is converted to five-year long-term loan. In total EUR
6.5 million financing package contains five-year payback plan where the first
year is amortization-free. The terms of the loans include normal covenants
related to ratio of Ixonos interest-bearing net liabitilies to operating profit
(ebitda) and to Ixonos equity ratio. 

In Interim report published 7 August 2012 Ixonos estimated that turnover for
2012 will be in range of EUR 55-60 million and operating profit before
nonrecurring items will be negative. 

Operating profit for the third quarter will be substantially negative. For the
third quarter, expenses relating to restructuring are expected to occur.
Operating profit for the fourth quarter is expected to be positive. 


IXONOS PLC
Board of Directors



For more information, please contact:
Ixonos Plc, Timo Leinonen, CFO, tel. +358 400 793 073, timo.leinonen@ixonos.com


Distribution:
NASDAQ OMX Helsinki
Main media

Attachments:

Ixonos_release_20120903.pdf