2012-02-16 08:15:01 CET
2012-02-16 08:16:04 CET
REGULATED INFORMATION
QPR Software - Financial Statement Release
QPR SOFTWARE’S NET SALES ROSE CLOSE TO 9% IN 2011, OPERATING MARGIN 10% OF NET SALES
QPR SOFTWARE PLC STOCK EXCHANGE RELEASE 16 FEBRUARY, 2012 AT 9.15 AM
UNAUDITED FINANCIAL RESULTS 2011
QPR SOFTWARE'S NET SALES ROSE CLOSE TO 9% IN 2011, OPERATING MARGIN 10% OF NET
SALES
Summary
Year 2011:
-- Net sales EUR 7,539 thousand (2010: 6,937), growth 8.7%
-- Operating profit EUR 755 thousand (752), growth 0.4%
-- Operating profit margin 10.0% (10.8) of consolidated net sales
-- Cash flow from operating activities was EUR 1,261 thousand (864), growth
45.9%
-- Earnings per share EUR 0.04 (0.04)
-- The Board of Directors proposes to the Shareholders' Meeting that the
company would pay dividend for the financial year 2011, EUR 0.03 per share.
October - December 2011:
-- Net sales EUR 2,215 thousand (October - December 2010: 1,920), growth 15.4%
-- Operating profit EUR 267 thousand (273), decrease 2.2%
-- Operating profit margin 12.1% (14.2) of consolidated net sales
-- Cash flow from operating activities was EUR 215 thousand (102), growth
110.8%
-- Earnings per share EUR 0.01 (0.02)
Net sales and operating profit showed a positive development towards the end of
the year. Quarterly net sales were highest in the fourth quarter which led
operating margin to reach 12.1%. Despite the growth in net sales, the Company´s
operating profit was on the same level as last year, which was mainly due to
increase in personnel costs and outlays in development of new software product
QPR ProcessAnalyzer.
Net sales in Finland grew 29.5% in 2011 due to good development in software
sales and professional service business, as well as consolidation of Nobultec
Ltd into QPR Software Group as of 1 August 2011. The growth in operating profit
in Business Operations Finland was also strong. The majority of new software
sales in Finland was subscription sales. This year the revenue to be recognized
for software subscription agreements made in 2011 is significant (approximately
EUR 0.6 million), which forms a solid foundation for net sales growth in
Finland.
The Group´s international net sales in 2011 decreased 5.9%, which was mainly
due to a decrease in software license sales. This, in turn, was partly
influenced by gradual initiation of subscription based software sales in QPR´s
international sales channel. This has a negative impact on revenue recognition
from the new contracts, but on the other hand will provide a steady increase in
net sales in the future. As a result of lower net sales, operating profit from
international operations decreased, but remained clearly profitable.
The Board of Directors proposes to the Shareholders' Meeting on 22 March, 2012
that the company would pay a EUR 0.03 per share dividend for the financial year
2011. The dividend shall be paid to a shareholder that has been entered into
the company's shareholders' register on the record date of the dividend payment
on 27 March, 2012. The Board of Directors proposes that the dividend shall be
paid on 3 April, 2012.
Outlook 2012:
QPR Software estimates the consolidated net sales 2012 to show significantly
faster growth than in the previous year (growth in year 2011: 8.7%) and
operating profit to remain on the same level as in the previous year, or to
improve slightly. The Company expects significant growth especially in software
subscription net sales, SAP consulting, process analysis business and
enterprise architecture services sales.
In 2012, QPR aims to place significant investments in the development of its
new software product QPR ProcessAnalyzer and related services. This will, in
short term, have a negative impact on profitability. The Company believes that
these outlays are well justified, since the QPR ProcessAnalyzer business,
launched in February 2011, has started well and the leading market analysts are
forecasting strong demand growth for process analysis products and services.
QPR aims at strong international software sales growth and significant market
share in this new category.
KEY FIGURES
(EUR 1,000) Oct - Dec, Oct - Dec, Change Jan - Jan - Change
2011 2010 - % Dec, 2011 Dec, 2010 - %
Net sales 2,215 1,920 15.4 7,539 6,937 8.7
Operating profit 267 273 -2.2 755 752 0.4
% of net sales 12.1 14.2 10.0 10.8
Profit before tax 243 307 -20.8 705 707 -0.3
Profit for the 161 241 -33.2 521 527 -1.1
period
% of net sales 7.3 12.6 6.9 7.6
Earnings per 0.04 0.04
share, EUR
EPS (diluted), EUR 0.04 0.04
Equity per share, 0.24 0.22
EUR
Cash flow from 1,261 864
operating
activities
Cash and cash 1,020 1,703
equivalents
Net liabilities -454 -910
Gearing, % -15.3 -33.8
Equity ratio, % 44.2 42.6
Return on equity, 18.4 20.0
%
Return on 21.5 21.0
investment, %
REPORTING
This report complies with accounting and valuation principles of IFRS, but in
preparations not all the requirements of IAS 34 standard have been considered.
The accounting and valuation principles are the same as they were in 2010
financial statements. This report is not audited.
QPR Software´s business consists of software license and subscription sales,
software maintenance sales and professional services.
As of January 1, 2011 QPR Software has two segments; Software Sales
International (software license and subscription sales, maintenance and
professional services sales outside of Finland) and Business Operations Finland
(software license and subscription sales, maintenance and professional services
sales in Finland).
NET SALES
QPR Software Group´s net sales in 2011 were EUR 7,539 thousand (6,937) and grew
8.7% compared to the previous year. The growth was mainly attributable to good
performance in professional service net sales and consolidation of Nobultec Ltd
into QPR Software Group as of 1 August 2011. Business Operations Finland
represented 49.1% and international operations 50.9% of net sales.
The growth in net sales accelerated towards the end of the year. In October -
December net sales rose to EUR 2,215 thousand (1,920), which represents a
growth of 15.4%.
Consolidated net sales by business segments, (EUR 1,000):
Software Sales Business Operations Finland Total
International
Oct - Dec, 2011 1,075 1,140 2,215
Share-% 48.5 51.5 100.0
Oct - Dec, 2010 1,111 809 1,920
Share-% 57.9 42.1 100.0
Change-% -3.2 40.9 15.4
Jan - Dec, 2011 3,836 3,703 7,539
Share-% 50.9 49.1 100.0
Jan - Dec, 2010 4,077 2,860 6,937
Share-% 58.8 41.2 100.0
Change-% -5.9 29.5 8.7
Consolidated net sales by product categories (EUR 1,000):
Software Maintenance Professional Total
licenses services services
Oct - Dec, 565 990 660 2,215
2011
Share-% 25.5 44.7 29.8 100.0
Oct - Dec, 662 929 329 1,920
2010
Share-% 34.5 48.4 17.1 100.0
Change-% -14.7 6.6 100.6 15.4
Jan - Dec, 1,822 3,787 1,930 7,539
2011
Share-% 24.2 50.2 25.6 100.0
Jan - Dec, 2,101 3,622 1,214 6,937
2010
Share-% 30.3 52.2 17.5 100.0
Change-% -13.3 4.6 59.0 8.7
Net sales in Finland grew 29.5% in 2011 and were EUR 3,703 thousand (2,860).
Organic growth was 16.2%. Net sales growth in Finland was due to good
performance in both software sales and professional service business. The
growth in professional service business was due to service business expansion
to enterprise architecture consulting and process analysis consulting, as well
as due to consolidation of Nobultec Ltd into QPR Software Group.
The majority of new software sales in Finland was subscription sales. This year
the revenue to be recognized for software subscription agreements made in 2011
is significant (approximately EUR 0.6 million), which forms a solid foundation
for net sales growth in Finland.
In October - December net sales in Finland grew 40.9%, thanks to consolidation
of Nobultec and strong organic growth. The Finnish Ministry of Finance decided
in November to acquire the public sector enterprise architecture and process
modeling service from QPR Software. Acquisition period is 2011 - 2014. The
decision includes options for increasing the number of users as well as scope
of services and to expand the acquisition to cover also years 2015 and 2016.
The value of the acquisition is at minimum EUR 780,000 in 2011-2014, and
including the both option years at minimum EUR 1,030,000.
International net sales were EUR 3,836 thousand (4,077). The decrease in net
sales (-5.9%) was due to lower software license sales than in the previous
year. This, in turn, was partly influenced by gradual initiation of
subscription based software sales in QPR´s international sales channel. This
has a negative impact on revenue recognition from the new contracts, but on the
other hand will provide a steady increase in net sales in the future.
Furthermore, the reflections of the increased uncertainty in general economic
situation extended the sales cycles in several markets.
International net sales showed a positive development towards the end of the
year and quarterly net sales were highest in the fourth quarter. However, net
sales in October - December decreased 3.2% compared to the equivalent period
last year.
In Finland, the Company delivered software and professional services in the
reporting period, among others, to Carea, Certia, Central Finland Healthcare
District, City of Espoo, City of Helsinki, City of Imatra, CRH Finland, DNA
Oyj, Elisa Corporation, Helsinki University, Kemira Corporation, Kesko
Corporation, Lassila & Tikanoja, Medbit, Metso Paper, The Finnish National
Board of Education, Nordic Investment Bank, Onninen Group, Outotec Corporation,
Patria Corporation, Rautaruukki Corporation, Realia Group, SATO Corporation,
SOK, SRV, Tekla Corporation, Teollisuuden Voima, Tuko, Terveystalo, Vacon, City
of Varkaus, Vaisala Corporation, Oy Woikoski Ab, the Ministry of Finance and
the Ministry of Education.
The largest markets outside Finland in the reporting period were Russia, South
Africa, Sweden, Belgium, Japan and Great Britain. The Company delivered
software, among others, to Abu Dhabi Sewerage Services Company in United Arab
Emirates, Anglo Platinum and Real People in South Africa, The Bosch Group in
Korea, City of Antwerp and Sibelco in Belgium, City of Malmö in Sweden, City of
Moscow, IRKUT, OGUP Pharmacies, TNK-BP and Sibur in Russia, The Ministry of
Health in Lithuania, The Ministry of Justice in Lithuania, Millard Filters in
Spain, Millennium Bank in Romania, United Chemical Company in Kazakhstan,
Vattenfall in Sweden and to Aramark in the United States of America.
PROFIT DEVELOPMENT
QPR Software's consolidated operating profit in 2011 was EUR 755 thousand
(752). Operating profit in Finland business operations increased due to
increased net sales, but decrease in channel net sales had an adverse impact on
profitability in international operations.
Despite the growth in net sales, the Company´s operating profit was on the same
level as last year, which was mainly due to increase in personnel costs and
outlays in development of new software product QPR ProcessAnalyzer. Operating
margin reached 10.0% (10.8). Operating profit includes a contribution of EUR
79 thousand (44) from Finnish Funding Agency for Technology and Innovation for
the development of the new QPR ProcessAnalyzer software. Depreciation and
amortization grew slightly to EUR 572 thousand (532). EUR 221 thousand of this
is amortization of acquisition cost of companies or businesses.
QPR Software's consolidated operating profit October - December was also on
previous year´s level and EUR 267 thousand (273). Costs rose 14.9% from the
previous year. Majority of this increase is due to consolidation of Nobultec
into QPR Software Group and personnel increase in process analysis business.
Depreciation and amortization grew to EUR 151 thousand (101). The figures show
strong growth, but it is mainly attributable to the impact a correction made in
the fourth quarter 2010 has in the comparison figure.
Operating profit by segments (EUR 1,000):
Software Sales Business Operations Not Total
International Finland allocated
Oct - Dec, 163 201 -97 267
2011
Oct - Dec, 252 114 -93 273
2010
Change-% -35.3 76.3 -4.3 -2.2
Jan - Dec, 472 646 -363 755
2011
Jan - Dec, 777 320 -345 752
2010
Change-% -39.3 101.9 -5.2 0.4
Profit before taxes for the year was EUR 705 thousand (707). Net financial
costs were EUR 50 thousand (45). Profit after taxes was EUR 521 thousand (527)
and earnings per share were EUR 0.04 (0.04).
Profit before taxes in October - December was EUR 243 thousand (307). Net
financial costs were EUR 24 thousand (income 34). Profit after taxes was EUR
161 thousand (241) and earnings per share were EUR 0.01 (0.02).
FINANCE AND INVESTMENTS
Cash flow from operating activities in the reporting period was EUR 1,261
thousand (864). Strong growth in software subscription sales in the reporting
period had a positive effect in cash flow from operating activities.
Cash and cash equivalents at the end of reporting period were EUR 1,020
thousand (1,703).
The Group's investments totaled to EUR 1,478 thousand (350). The largest
investment was acquisition of Nobultec Ltd. The total acquisition cost
(including transaction costs and provisional purchase price, subject to
reaching targets set for financial results in 2011 and 2012) was EUR 979
thousand. The targets set for 2011 were not reached, which lowered the
acquisition cost to EUR 904 thousand. EUR 402 thousand of the total acquisition
cost was allocated into Nobultec´s customer relationships and will be amortized
in 5 years. A goodwill of EUR 512 thousand arising on the acquisition will be
regularly tested.
Furthermore, investments include payments of a total of EUR 165 thousand for
business operations bought from QPR´s Russian resellers in November 2009. The
purchase price for these operations was set at EUR 272 thousand, including
transaction costs. The price was set according to the terms agreed in purchase
agreement and the financial results of the acquired operations between 1 March
2010 and 28 February 2011. The price is compensation for business operations
that were transferred into QPR CIS Oy. As part of the purchase price, the
sellers received also 20 % share ownership in QPR CIS Oy. For this 20%
shareholding, a call option for QPR and put option for the sellers, have been
agreed. These options can be exercised in January 2014, the earliest.
The Group´s interest bearing liabilities decreased and were EUR 566 thousand
(793) at the end of reporting period. The gearing ratio was -15.3% (-33.8).
Return on capital employed was 21.5% (21.0).
Current liabilities include deferred revenue in total of EUR 1,046 thousand
(918). At the end of the reporting period, quick ratio was 1.20 (1.87).
At the end of the reporting period, consolidated shareholders' equity stood at
EUR 2,973 thousand (2,694) and equity to assets ratio was 44.2% (42.6). Return
on equity was 18.4% (20.0).
As the end of the reporting period, the remaining amount of deferred tax assets
in consolidated balance sheet was EUR 38 thousand (233) and the amount of
deferred tax liabilities was EUR 90 thousand (0).
PERSONNEL
At the end of the reporting period, the Group employed a total of 73 persons
(65). Out of them 8 were employed by Group's Russian subsidiary. Average number
of personnel in the reporting period was 72 (63).
PRODUCT AND SERVICE DEVELOPMENT
The amount of product development expenses in the reporting period were EUR
1,313 thousand (1, 278), representing 17.4% (18.4) of consolidated net sales.
Product development expenses do not include amortization of capitalized
expenses.
In the reporting period, product development expenses have been activated as
assets for a total amount of EUR 356 thousand (278). The amortization period
for capitalized product development expenses is 4 years. Amortization of
product development expenses in the reporting period was EUR 203 thousand
(190). At the end of reporting period the asset value was EUR 710 thousands
(557).
Product development employed 16 persons at the end of reporting period, which
corresponds to 21.9% of the total personnel.
Product development activities in the reporting period were focused on the
development of a new QPR Suite 2012 product family, released at the end of
2011. The released product family also includes a new version of QPR
ProcessAnalyzer software product. The software executes automatically visual
process analysis from depository data in business applications.
Additional resources were allocated into the development of QPR ProcessAnalyzer
software, published in February 2011. In the review period, QPR developed a new
process analysis solution aimed at efficiency increases in SAP systems,
especially in order-to-cash processes. Several large enterprises and public
organizations are users of this solution. In November 2011, the Company
published a cloud-based version of QPR ProcessAnalyzer. The software is based
on technologies that utilize Microsoft´s cloud services. It has been used in
streamlining of order-to-cash processes in SAP systems, in improvement of sales
processes supported by CRM systems and in analysing call center activities.
In early 2011, QPR introduced a solution for public sector enterprise
architecture, based on Finnish public sector JHS 179 recommendation. Several
project deliveries based on this solution were made in the review period.
SHARES AND TRADING WITH COMPANY'S SHARES
Trading of shares Jan - Dec, 2011 Jan - Dec, 2010
--------------------------------------------------------------------------------
Shares traded, pcs 1,122,981 881,585
Volume, EUR 953,083 805,808
% of shares 9.0 7.1
--------------------------------------------------------------------------------
Shares and market values December 31, December 31,
2011 2010
--------------------------------------------------------------------------------
Total number of shares, pcs 12,444,863 12,444,863
Treasury shares, pcs 179,405 322,212
Book counter value, EUR 0.11 0.11
Outstanding shares, pcs 12,265,458 12,122,651
Number of Shareholders 588 600
Closing price, EUR 0.88 0.91
Market value, EUR 10,793,603 11,031,612
Acquired treasury shares in reporting 132,591 64,212
period, pcs
Released of treasury in reporting period, -249,021 0
pcs
Book counter value of treasury shares, EUR 19,735 35,443
Total purchase value of treasury shares, EUR 158,271 274,701
Treasury shares % 1.4 2.6
--------------------------------------------------------------------------------
The Company does not have active option schemes.
OTHER EVENTS IN THE REPORTING PERIOD
QPR Software Plc's Management System received ISO 9001:2008 quality
certification covering the Company's all actions in January.
Sami Tähtinen was appointed as Vice President, Products and Technology and
Member of Executive Management Team at QPR Software Plc in January 24, 2011. He
moved to QPR from CCC Corporation Ltd. Prior to this Mr. Tähtinen worked as
Chief Technology Officer in Frends Technology from 2002 to 2009. Sami Tähtinen
holds Master's degree in Engineering.
Maija Erkheikki, M.Sc.(Eng), was appointed in July as Vice President for
Software Sales International as of 15 August, 2011. Her latest position in QPR
was Vice President, Service & Solutions.
Mikko Mäki-Rahkola, M.Sc (Econ), M.Sc (Tech) was appointed in July a Member of
the Executive Management Team as of 15 August, 2011. Mikko Mäki-Rahkola is
Nobultec Oy´s Managing Director.
As of 15 August 2011, QPR Software´s Executive Management Teams consists of
Chief Executive Officer Jari Jaakkola (chairman); Vice President, Software
Sales International Maija Erkheikki; Vice President, Business Operations
Finland Matti Erkheikki; Vice President, Communications and Marketing Jyrki
Karasvirta; Vice President, Business Development Teemu Lehto; Chief Financial
Officer Päivi Martti; Nobultec´s Managing Director Mikko Mäki-Rahkola and Vice
President, Products and Technology Sami Tähtinen.
QPR Software Plc announced on 28 July its acquisition of all of the issued
shares of its co-operation partner Nobultec Oy. The transaction took place on
August 1, 2011. Nobultec Oy is a service company that specializes in business
process development in SAP system environments. As the transaction took place,
Nobultec became QPR Software Plc's 100% owned subsidiary. QPR has paid the base
consideration, EUR 840 thousand, to the sellers in August and September. The
payments were made in cash and QPR Software Plc´s shares.
QPR Software's Board of Directors approved in March a new share-based incentive
plan for the Group's executive management team. The plan aims to align the
objectives of shareholders and key employees to increase shareholder value, to
commit key employees to the company and to offer them a competitive reward plan
based on ownership of shares in the company.
The plan includes three one-year earning periods, which are the calendar years
2011, 2012 and 2013. The company's Board of Directors will decide on the
earning criteria and the targets to be established for them at the beginning of
each earning period. Bonus for the earning period 2011 was based on QPR
Software's consolidated net sales growth and operating profit targets. The
earnings criteria were not met in 2011 and thus no bonuses for the year will be
paid.
The integration of QPR´s and Nobultec´s service offering and transition to
process organization in Finland business operations were initiated in December.
The new operating model is planned to be operational in the summer.
GOVERNANCE
The Annual Shareholders' Meeting held on 18 March, 2011 approved the Board's
proposal that a per-share dividend of EUR 0.03 (0.02), a total of EUR 362,876
(243,737), is paid for the financial year 2010. The dividend was paid to
shareholders entered in the Company's shareholder register, maintained by
Euroclear Finland Oy, on the record date of 23 March, 2011. The dividend
payment date was 1 April, 2011.
The Annual Shareholders' Meeting resolved that the Board of Directors consists
of four (4) ordinary members. The Annual Shareholders' Meeting elected the
following members to the Board of Directors: Aino-Maija Gerdt, Jyrki Kontio,
Vesa-Pekka Leskinen and Asko Piekkola. In its first meeting immediately
following the Annual Shareholders' Meeting, the Board of Directors elected
Vesa-Pekka Leskinen as Chairman of the Board.
KPMG Oy Ab, Authorized Public Accountants, continued as QPR Software Plc's
Auditors.
The Annual Shareholders' Meeting decided to authorize the Board of Directors to
decide on an issue of new shares and acquisition of its own shares from the
market.
The conditions of all authorizations of the Board and other decisions made by
the Annual Shareholders' Meeting are available in their entirety on the stock
exchange release published by the Company on 18 March, 2011 and available on
the investors section of the company's web site, www.qpr.com.
SHORT-TEM RISK AND UNCERTAINTIES
Internal control and risk management in QPR Software Plc aims to ensure that
the Company operates efficiently and effectively, distributes reliable
information, complies with regulations and operational principles, reaches its
strategic goals and ensures continuity of its business.
QPR has identified the following three groups of risks related to its
operations: risks related to business operations (country, customer, net sales
forecasting process, personnel, legal, financial and related to business
acquisitions), risks related to information and products (QPR products, IPR,
data security) and risks related to financing (foreign currency, bad debt).
Property, operational and liability risks are covered by insurance. QPR
monitors country, customer, personnel and finance risks also in the Russian
subsidiary OOO QPR Software.
Financial risks include reasonable credit risk concerning individual business
partners, which is characteristic to any international business. QPR seeks to
limit this credit risk by continuous monitoring of standard payment terms,
receivables and credit limits. The management of QPR estimates that the
company´s credit loss risk is on a customary and reasonable level.
At the end of the reporting period, the Company had not hedged its foreign
currency (non-Euro) trade receivables.
No significant changes have taken place in QPR's short-term risks and
uncertainties during the financial period. Risks related to QPR Software´s
business are further described in the Annual Report 2010, page 15 onwards
(www.qpr.com/annual-reports.html).
EVENTS AFTER THE REPORTING PERIOD
The Board of Directors decided on 16 February 2012 to commence preparations for
merging StrongDocs Oy, QPR Software Plc´s subsidiary, into the parent company.
The merger does not have any effect on consolidated results or balance sheet in
2012.
FUTURE OUTLOOK
Market forecasts published in the beginning of 2012 estimate that the value of
global software sales will increase approximately 6% and global professional
services sales will increase approximately 3% in 2012 compared to 2011.
QPR Software estimates the consolidated net sales in 2012 to show significantly
faster growth than in the previous year (growth in year 2011: 8.7%) and
operating profit in Euro to remain on the same level as in the previous year,
or to improve slightly. The Company estimates that especially software
subscription net sales, SAP consulting net sales, process analysis net sales
and enterprise architecture service net sales to grow significantly from the
previous year.
In 2012, QPR aims to place significant investments in the development of its
new software product QPR ProcessAnalyzer and related services. This will, in
short term, have a negative impact on profitability. The Company believes that
these outlays are well justified, since the QPR ProcessAnalyzer business,
launched in February 2011, has started well and the leading market analysts are
forecasting strong demand growth for process analysis products and services.
QPR aims at strong international software sales growth and significant market
share in this new category.
The Company also aims to recruit new channel partners especially for its QPR
ProcessAnalyzer and QPR EnterpriseArchitect software products and to develop
replicable solutions for its present channel partners.
Seasonality of large software deals can affect significantly net sales and
profit of one individual quarter.
FINANCIAL INFORMATION
In 2012, QPR Software publishes Annual Report and three interim reports in
English and Finnish on the following dates:
-- Annual Report 2011: Thursday, 1 March 2012
-- Interim Report 1-3/2012: Thursday, 26 April 2012
-- Interim Report 1-6/2012: Wednesday, 1 August 2012
-- Interim Report 1-9/2012: Thursday, 25 October 2012
Annual General Meeting takes place on Thursday, 22 March 2012.
QPR SOFWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0)40 5026 397
www.qpr.com
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Main Media
www.qpr.com
Neither this press release nor any copy of it may be taken, transmitted into or
distributed in the United States of America or its territories or possessions.
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) Oct-Dec, Oct-De Jan-Dec, Jan-De
2011 c, 2011 c,
2010 2010
Net sales 2,215 1,920 7,539 6,937
Other operating income 29 44 79 94
Material and services 66 67 250 227
Employee benefits expenses 1,361 1,120 4,594 4,094
Depreciation 151 101 572 532
Other operating expenses 400 403 1,448 1,426
Operating profit 267 273 755 752
Financial income and expenses -24 34 -50 -45
Profit before tax 243 307 705 707
Income tax expense -82 -66 -184 -180
Profit for the period 161 241 521 527
Profit for the period attributable to:
Equity holders of the parent company 162 240 530 527
Non-controlling interest -1 1 -9 0
--------------------------------------------------------------------------------
161 241 521 527
Earnings per share (diluted), EUR 0.01 0.02 0.04 0.04
Earnings per share, EUR 0.01 0.02 0.04 0.04
Consolidated Statement of comprehensive income:
Profit for the period 161 241 521 527
Exhange differences on translating foreign 45 -49 4 23
operations
Income tax relating to components of other - - - -
comprehensive income
Total comprehensive income 206 192 525 550
Total comprehensive income attributable to:
Equity holders of the parent company 207 191 534 550
Non-controlling interest -1 1 -9 0
--------------------------------------------------------------------------------
206 192 525 550
CONSOLIDATED BALANCE SHEET
(EUR 1,000) Dec 31, 2011 Dec 31, 2010
Assets
Non-current assets
Tangible assets 118 85
Other intangible assets 2,273 1,400
Other investments 5 5
Other long-term receivables 59 43
Deferred tax assets 38 233
Total non-current assets 2,493 1,766
Current assets
Trade and other receivables 4,248 3,781
Cash and cash equivalents 1,020 1,703
Total current assets 5,268 5,484
Total assets 7,761 7,250
================================================================================
Equity and liabilities Dec 31, 2011 Dec 31, 2010
Equity
Share capital 1,359 1,359
Reserve fund 21 21
Invested non-restricted equity fund 5 5
Translation differences -66 -70
Treasure shares -158 -275
Retained earnings 1,820 1,653
Equity attributable to shareholders of the parent 2,981 2,693
company
Non-controlling interest -8 1
Total equity 2,973 2,694
Non-current liabilities
Interest-bearing liabilities 340 566
Non-Interest-bearing liabilities 56 0
Total non-current liabilities 396 566
Current liabilities
Accounts payables and other payables 4,076 3,763
Interest-bearing liabilities 226 227
Deferred tax liabilities 90 0
Total current liabilities 4,392 3,990
Total liabilities 4,788 4,556
Total equity and liabilities 7,761 7,250
================================================================================
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) Jan - Dec, Jan - Dec,
2011 2010
Cash flow from operating activities
Profit for the period 521 527
Adjustments for the profit 718 606
Working capital changes 28 -195
Interest and other financial expenses paid -23 -42
Interest and other financial income received 27 8
Income taxes paid -10 -40
Net cash from operating activities 1,261 864
Cash flow from investing activities
Acquired subsidiaries -565 0
Purchases of tangible and intangible assets -691 -350
Net cash used in investing activities -1,256 -350
Cash flow from financing activities
Repayments of long term loans -226 -305
Purchases of treasury shares -100 -66
Invested non-restricted equity fund distribution 0 -122
Dividends paid -362 -244
Net cash used in financing activities -688 -737
Net change in cash and cash equivalents -683 -223
Cash and cash equivalents in the beginning of 1,703 1,929
period
Effects of exchange rate changes on cash and cash 1 -4
equivalents
Cash and cash equivalents in the end of period 1,020 1,703
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
JANUARY 1 - DECEMBER 31, 2011
(EUR 1,000) Jan 1, Purchase of Release of Dividen Compre-hen Dec
2011 treasury treasury ds paid sive 31,
shares shares income 2011
Share capital 1,359 1,359
Reserve fund 21 21
Translation -70 4 -66
difference
Treasury shares -275 -100 217 -158
Invested 5 5
non-restricted
equity fund
Dividend paid -362 -362
Retained 1,653 530 2,182
earnings
Non-controlling 1 -9 -8
interest
Total 2,694 -100 217 -362 525 2,973
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
JANUARY 1 - DECEMBER 31, 2010
(EUR 1,000) Jan 1, Purchase of Dividends Compre-hensi Dec 31,
2010 treasury shares paid ve income 2010
Share capital 1,359 1,359
Reserve fund 21 21
Translation -94 24 -70
difference
Treasury shares -209 -66 -275
Invested 127 -122 5
non-restricted
equity fund
Dividend paid -244 -244
Retained earnings 1,371 526 1,897
Non-controlling 0 1 1
interest
Total 2,575 -66 -366 551 2,694
APPENDIX
ACCOUNTING PRICIPLES OF CONSOLIDATED FINANCIAL STATEMENTS
This report complies with accounting and valuation principles of IFRS, but in
preparations not all the requirements of IAS 34-standard have been considered.
The accounting and valuation principles are the same as they were in 2010
financial statements. This report is not audited.
Upon closing of consolidated financial statements, the Group makes estimates
and assumptions regarding the future and makes considerations on the adoption
of accounting principles, which means that the actual results may differ from
those reported.
The amounts presented in the income statement and balance sheet are
consolidated figures.
The amounts presented in the report are rounded, so the sum of individual
figures may differ from the sum reported.
GROUP COMMITMENTS AND CONTIGENT LIABILTIIES
(EUR 1,000) Dec 31, 2011 Dec 31, 2010
Business mortgage 1,337 1,337
Current lease liabilities
Liabilities maturing during one year 231 235
Liabilities maturing 2-5 years 77 53
Leasing liabilities
Total 308 289
Total commitments and contingent liabilities 1,645 1,626
CURRENCY HEDGING
(EUR 1,000) Dec 31, 2011 Dec 31, 2010
Nominal value 0 260
Current value 0 -2
GROUP INTANGIBLE AND TANGIBLE ASSETS
Change in intangible assets
(EUR 1,000) Dec 31, 2011 Dec 31, 2010
Acquisition cost Jan 1 3,608 3,494
Increase 883 311
Change in tangible assets
(EUR 1,000) Dec 31, 2011 Dec 31, 2010
Acquisition cost Jan 1 1,021 983
Increase 137 38
CHANGE IN GROUP'S INTEREST BEARING LIABILITIES
(EUR 1,000) Dec 31, 2011 Dec 31, 2010
Interest bearing loans Jan 1 793 1,098
Withdrawals 0 0
Repayments -226 -305
Interest bearing loans 566 793
31 December
CONSOLIDATED INCOME STATEMENT PER QUARTER
(EUR 1,000) Jan - Jan - April - April - July - July - Oct - Oct -
March, March, June, June, Sept, Sept, Dec, Dec,
2011 2010 2011 2010 2011 2010 2011 2010
Net sales 1,768 1,671 1,784 1,773 1,772 1,574 2,215 1,920
Other 21 34 17 3 12 13 29 44
operating
income
Material 34 47 72 63 78 50 66 67
and
services
Employee 1,122 1,009 1,053 1,040 1,058 925 1,361 1,120
benefits
expenses
Depreciatio 130 129 134 151 157 151 151 101
n
Other 346 375 363 351 339 297 400 403
operating
expenses
Operating 157 145 179 171 152 164 267 273
profit
Financial -16 -25 -8 -45 -2 -11 -24 34
income and
expenses
Profit 141 120 171 126 150 153 243 307
before tax
Income tax -41 -25 -24 -33 -36 -55 -82 -66
expenses
Profit for 100 95 147 93 113 98 161 241
the period
CONSOLIDATED INCOME STATEMENT BY SEGMENT
(EUR 1,000) Oct-Dec, Oct-Dec, Jan-Dec, Jan-Dec,
2011 2010 2011 2010
Net sales
Software Sales International 1,075 1,111 3,836 4,077
Business Operations Finland 1,140 809 3,703 2,860
Not allocated 0 0 0 0
Total net sales 2,215 1,920 7,539 6,937
Operating profit
Software Sales International 163 252 472 777
Business Operations Finland 201 114 646 320
Not allocated -97 -93 -363 -345
Total operating profit 267 273 755 752
Financial income and expenses -24 34 -50 -45
Income tax expense -82 -66 -184 -180
Profit for the period 161 241 521 527
Other information
Depreciation
Software Sales International 87 37 292 267
Business Operations Finland 64 64 280 265
Total depreciation 151 101 572 532
GROUP KEY FIGURES
EUR (1,000) Jan - Dec, 2011 Jan - Dec, 2010
Net sales 7,539 6,937
Net sales growth,% 8.7 4.8
Operating profit 755 752
% of net sales 10.0 10.8
Profit or loss before tax 705 707
% of net sales 9.4 10.2
Profit for the period 521 527
% of net sales 6.9 7.6
Return on equity,% 18.4 20.0
Return on investment,% 21.5 21.0
Interest bearing liabilities 566 793
Cash and cash equivalents 1,020 1,703
Net liabilities -454 -910
Equity 2,973 2,694
Gearing,% -15.3 -33.8
Equity ratio,% 44.2 42.6
Total balance sheet 7,761 7,250
Investments in non-current assets 1,478 350
% of net sales 19.6 5.0
Research and development expenses 1,313 1,278
% of net sales 17.4 18.4
Average number of personnel 72 63
Personnel at the beginning of period 65 57
Personnel at the end of period 73 65
Earnings per share, € 0.04 0.04
Earnings per share (diluted), € 0.04 0.04
Equity per share, € 0.24 0.22
CALCULATION OF KEY INDICATORS
Return on equity (ROE), %:
Profit for the period x 100
_________________________
Shareholders' equity (average)
Return on investment (ROI), %:
Profit before taxes + interest and other financial expenses x 100
______________________________________________________
Balance sheet total - non-interest bearing liabilities (average)
Equity ratio, %:
Shareholders' equity x 100
______________________________________
Balance sheet total - deferred revenue
Gearing, %:
Interest bearing liabilities - cash and cash equivalents x 100
______________________________________________________________
Shareholders' equity
Earnings per share, euro:
Profit for period
__________________________________________________________
Adjusted number of shares over the financial year (average)
Equity per share, euro:
Shareholders' equity
____________________________________________________________
Adjusted number of shares at the end of the financial period
Dividend per share, euro:
Total dividend paid
_____________________________:______________________________
Adjusted number of shares at the end of the financial period
Dividend / profit, %:
Dividend per share x 100
________________________
Earnings per share
Effective dividend yield, %:
Dividend per share (adjusted) x 100
_______________________________________________________
Adjusted share price at the end of the financial period
Price-earnings ratio (P/E):
Adjusted share price at the end of the financial period
_______________________________________________________
Earnings per share (adjusted)
Market value of share capital:
(Number of shares - own shares) x share price at the end of the financial period
Turnover of shares, % of share capital:
Turnover (number of shares) x 100
_________________________________
Number of shares issued (average)
Quick ratio:
Current assets - inventories
______________________________________
Current liabilities - deffered revenue
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