2014-07-29 07:00:00 CEST
2014-07-29 07:00:04 CEST
REGULATED INFORMATION
Comptel - Interim report (Q1 and Q3)
Interim Report of Comptel Corporation 1 January - 30 June 2014
Comptel Corporation Stock Exchange Release 29 July 2014 at 8:00 am
INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 30 JUNE 2014
Strong new business growth in Q2.New business revenue grew by 17% compared to
previous year Q2.
Key figures for the second quarter:
-- Net sales EUR 20.6 million (Q2 2013: 20.7), change -0.3%
-- Operating result EUR 1.2 million (1.3), 5.7% of net sales
-- Earnings per share EUR 0.01 (0.00)
-- Order backlog EUR 42.8 million (41.9), change 2.1%
Key figures for the first half:
-- Net sales EUR 38.6 million (H1 2013: 41.8), change -7.7%
-- Operating result EUR 2.1 million (2.3), 5.5% of net sales
-- Earnings per share EUR 0.01 (-0.00)
Comptel's operating result for 2014 is expected to be EUR 5-10 million. The
2014 revenue is expected to remain at the 2013 level while the new solutions
are expected to grow from Q2 onwards.
Juhani Hintikka, President and CEO:
”In the first half of the year we have won 5 new customers compared to 4 in
total in the previous year. We have also signed several significant new deals
with existing customers. While market conditions continue to be challenging,
especially in Europe, in this quarter we made some progress in Europe. In the
first half Latin America has been very challenging and net sales have decreased
from last year.
Our new business area grew in the second quarter, especially the order intake.
Our investments into new business areas, according to our strategy, are showing
positive results in this quarter with the new business growth. Going forward we
are also increasing our focus and investment into our marketing to sharpen our
story and demand creation.
During the second quarter we secured 6 significant orders, valued over EUR
500,000.”
Business Review for the Second Quarter and the First Half of 2014
In the second quarter, Comptel's net sales decreased by 0.3 per cent from the
previous year and were EUR 20.6 million (20.7). In the first half, net sales
decreased by 7.7 per cent from the previous year and were EUR 38.6 million
(41.8)
In the second quarter, the operating result was EUR 1.2 million (1.3), which
corresponds to 5.7 per cent of net sales (6.2).
The operating result for the first half was EUR 2.1 million (2.3), which
correspond to 5.5 per cent of net sales (5.6).
In the first half of the year, profit before taxes was EUR 1.5 million (1.1)
and net profit was EUR 0.8 million (-0.4). Earnings per share for the period
under review were EUR 0.01 (-0.00).
Tax expense for the first half of the year was EUR 0.7 million (1.6), including
EUR 0.4 million of withholding taxes.
The Group's order backlog increased from the previous year and was EUR 42.8
million (41.9) at the end of the period.
Business areas
Net sales, 4-6 2014 4-6 Change % 1-6 2014 1-6 2013 Change 1-12
EUR million 2013 % 2013
--------------------------------------------------------------------------------
Europe 8.7 9.3 -6.4 15.5 17.6 -12.2 33.1
--------------------------------------------------------------------------------
Asia Pacific 6.3 5.6 11.6 12.2 11.3 8.2 20.9
--------------------------------------------------------------------------------
Middle East and 3.8 3.7 2.0 6.9 7.2 -4.1 16.3
Africa
--------------------------------------------------------------------------------
Americas 1.9 2.1 -9.5 4.0 5.7 -29.5 12.3
--------------------------------------------------------------------------------
Total 20.6 20.7 -0.3 38.6 41.8 -7.7 82.7
--------------------------------------------------------------------------------
Operating result,
EUR million
--------------------------------------------------------------------------------
Europe 4.4 5.1 -14.0 7.3 8.3 -11.6 15.6
--------------------------------------------------------------------------------
Asia Pacific 3.8 2.5 52.1 7.6 5.2 44.7 10.1
--------------------------------------------------------------------------------
Middle East and 1.5 1.0 57.6 2.9 2.0 43.1 6.7
Africa
--------------------------------------------------------------------------------
Americas 0.9 0.6 59.8 1.8 2.9 -38.4 7.0
--------------------------------------------------------------------------------
Unallocated costs -9.4 -7.9 -20.0 -17.5 -16.1 -8.2 -32.1
--------------------------------------------------------------------------------
Total 1.2 1.3 -8.5 2.1 2.3 -8.3 7.3
--------------------------------------------------------------------------------
Operating result,
% of net sales
--------------------------------------------------------------------------------
Europe 51.0 55.5 - 47.1 47.1 - 47.3
--------------------------------------------------------------------------------
Asia Pacific 59.8 43.9 - 62.6 46.5 - 48.0
--------------------------------------------------------------------------------
Middle East and 40.0 25.9 - 42.0 28.2 - 40.8
Africa
--------------------------------------------------------------------------------
Americas 49.4 28.0 - 44.4 50.9 - 56.9
--------------------------------------------------------------------------------
Total 5.7 6.2 - 5.5 5.6 - 8.8
--------------------------------------------------------------------------------
In the second quarter, net sales grew in Asia Pacific and Middle East. In the
first half, net sales increased in Asia Pacific. The proportional profitability
improved in all regions, except Europe.
In January - June, Comptel received 9 significant orders (H1 2013: 12): 5
Comptel Control & Charge,1 Comptel Provisioning and Activation, 1 Comptel
Fulfillment and 2 Comptel Managed Services orders. As significant orders
Comptel reports sold projects and licenses with a value of EUR 500,000 at the
minimum.
Net sales 4-6 2014 4-6 2013 Change 1-6 2014 1-6 2013 Change 1-12
breakdown, % % 2013
EUR million
--------------------------------------------------------------------------------
Project & 12.3 11.7 5.2 21.4 23.9 -10.5 47.1
License business
--------------------------------------------------------------------------------
Recurring 8.3 9.0 -7.8 17.2 17.9 -3.9 35.6
business
--------------------------------------------------------------------------------
Total 20.6 20.7 -0.3 38.6 41.8 -7.7 82.7
--------------------------------------------------------------------------------
Project & License business declined in the first half of the year due to lower
business level in Q1 while recurring business slightly declined in the first
half of the year.
Net sales 4-6 2014 4-6 2013 Change 1-6 1-6 Change % 1-12 2013
breakdown, % 2014 2013
EUR million
--------------------------------------------------------------------------------
New business 5.3 4.6 17.3 8.7 10.0 -12.4 19.2
--------------------------------------------------------------------------------
Current business 15.2 16.1 -5.3 29.8 31.8 -6.2 63.5
--------------------------------------------------------------------------------
Total 20.6 20.7 -0.3 38.6 41.8 -7.7 82.7
--------------------------------------------------------------------------------
New business net sales grew by 17% in Q2 compared to previous year.
Financial Position
EUR million 30 Jun 31 Dec Change 30 Jun Change
2014 2013 % 2013 %
--------------------------------------------------------------------------------
Statement of financial position 58.9 67.9 -13.4 65.0 -9.5
total
--------------------------------------------------------------------------------
Liquid assets 2.9 6.5 -56.4 4.5 -37.0
--------------------------------------------------------------------------------
Trade receivables, gross 24.1 23.7 1.5 25.6 -5.9
--------------------------------------------------------------------------------
Bad debt provision -0.8 -1.0 -25.5 -1.2 -37.5
--------------------------------------------------------------------------------
Trade receivables, net 23.3 22.7 2.7 24.4 -4.4
--------------------------------------------------------------------------------
Accrued income 7.6 9.4 -18.9 11.1 -31.0
--------------------------------------------------------------------------------
Deferred income related to partial 2.9 1.9 54.7 3.2 -7.0
debiting
--------------------------------------------------------------------------------
Interest-bearing debt 4.6 8.8 47.3 10.9 -57.7
--------------------------------------------------------------------------------
Equity ratio, per cent 60,7 50.5 9.6 48.5 14.1
--------------------------------------------------------------------------------
The statement of financial position total was EUR 58.9 million. Operating cash
flow was EUR -4.5 million (1.2) in the second quarter and EUR 2.7 million
(1.3) during the first half.
The trade receivables were EUR 23.3 million (24.4) at the end of the period.
The accrued income was EUR 7.6 million (11.1). The deferred income related to
partial debiting was EUR 2.9 million (3.2).
Comptel has a 17 million credit facility arrangement, of which 4 million is in
use. This loan is out of the term loan facility, there is no outstanding loan
out of total 13 million revolving credit facility at the quarter end. The
credit facility arrangement is valid until January 2016.
The equity ratio was 60.7 per cent (48.5) and the gearing ratio was 6.1 per
cent (24.4).
Research and Development (R&D)
EUR million 4-6 4-6 Change 1-6 1-6 Change 1-12
2014 2013 % 2014 2013 % 2013
--------------------------------------------------------------------------------
Direct R&D expenditure 3.8 4.4 -14.1 7.7 8.6 -10.6 17.8
--------------------------------------------------------------------------------
Capitalisation of R&D -1.0 -1.7 -40.1 -2.2 -2.8 -22.6 -5.5
expenditure according to IAS 38
--------------------------------------------------------------------------------
R&D depreciation and 1.6 1.0 54.6 2.8 1.9 44.2 4.2
impairment charges
--------------------------------------------------------------------------------
R&D expenditure, net 4.4 3.7 17.0 8.3 7.7 7.5 16.5
--------------------------------------------------------------------------------
Direct R&D expenditure, % of 18.5 21.4 - 20.0 20.6 - 21.5
net sales
--------------------------------------------------------------------------------
Direct R&D expenditure represented 20.0 per cent (20.6) of net sales in the
period under review.
Comptel's R&D expenditure was mainly targeted at the service fulfillment
automation of telecom operators and to the management and real-time analysis of
rapidly increasing data traffic. Comptel seeks global market leadership in
these areas where key business challenges of operators and service providers
will be solved. In addition, the company is developing an integrated software
platform which will enable a cost-efficient and solution-based R&D.
In 2014, the company focuses on developing its offering within the Comptel
Fulfillment, Comptel Policy & Charging Control and advanced analytics product
areas. Three major software releases were launched in these respective product
areas during the first half of the year.
Investments
EUR million 4-6 4-6 Change 1-6 1-6 Change 2013
2014 2013 % 2014 2013 %
--------------------------------------------------------------------------------
Gross investments in property, 0.0 0.2 -90.6 0.3 0.3 -25.4 0.6
plant and equipment and
intangible assets
--------------------------------------------------------------------------------
The investments comprised of devices, software and furnishings. The investments
were funded through liquid assets and cash flow from operations.
Personnel
30 Jun 30 Jun Change 31 Dec
2014 2013 % 2013
--------------------------------------------------------------------------------
Number of employees at the end of 661 681 -2.9 690
period
--------------------------------------------------------------------------------
1-6 2014 1-6 2013 Change 1-12 2013
%
--------------------------------------------------------------------------------
Average number of personnel during the 673 683 -1.7 684
period
--------------------------------------------------------------------------------
The number of employees decreased slightly. In April - June, personnel expenses
were 48.8 per cent of net sales (48.4). In the first half, the personnel
expenses were 48.7 per cent of net sales (51.2).
At the end of the period, 30.4 per cent (31.3) of the personnel were located in
Finland, 28.6 per cent (26.7) in Malaysia, 11.6 per cent (10.9) in Bulgaria,
7.1 per cent (4.1) in India, 3.3 per cent (7.9) in the United Arab Emirates,
2.7 per cent (2.8) in Norway, 2.4 per cent (6.3) in the United Kingdom, 13.9
per cent (10.0) in other countries where Comptel operates.
Comptel share
Closing share price of the period was EUR 0.62 (0.45). Comptel's market value
at the end of the period was EUR 66.6 million (48.1).
Comptel share 4-6 2014 4-6 2013 Change 1-6 2014 1-6 2013 Change 1-12
% % 2013
--------------------------------------------------------------------------------
Shares traded, 3.6 3.4 5.9 16.9 7.7 119.5 18.4
million
--------------------------------------------------------------------------------
Shares traded, EUR 2.2 1.5 46.7 9.2 3.2 187.5 8.7
million
--------------------------------------------------------------------------------
Highest price, EUR 0.70 0.51 37.2 0.70 0.51 37.2 0.59
--------------------------------------------------------------------------------
Lowest price, EUR 0.53 0.39 35.9 0.48 0.38 26.3 0.38
--------------------------------------------------------------------------------
Of Comptel's outstanding shares, 3.4 per cent (7.5) were nominee registered or
held by foreign shareholders at the end of the period.
During the period, Comptel Corporation allotted gratuitously 121,480 shares to
the members of the Board of Directors as part of their annual compensation and
39,500 shares to the President and CEO of the company according to the terms
and conditions of the 2011 share-based incentive plan.
The company held 239 of its own shares at the end of the period, which is 0.0
per cent of the total number of its shares. The total counter-book value of the
shares held by the company was EUR 148.
2 140 000 share options were distributed during the review period based on
Stock Option Incentive Plan 2014.
Corporate Governance
The Annual General Meeting of Comptel Corporation was held on 12 of March 2014.
The resolutions of the Annual General Meeting as well as the minutes of the
Annual General Meeting can be found at company's web page www.comptel.com. A
separate stock exchange release about the resolutions of the Annual General
Meeting including authorisations given to the Board of Directors was issued on
12 of March 2014.
The AGM authorised the Board of Directors to decide on share issues amounting
to a maximum of 21,400,000 new shares and/or special rights entitling to shares
and on 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 2015.
However, the authorisation to implement the company's share-based incentive
programs is valid until five years from the AGM resolution.
Stock Option Incentive Plan 2014
Based on authorisation given to the Board of Directors by the Annual General
Meeting held on 20 of March 2013, the Board of Directors resolved 5 of February
2014 on a new stock option incentive plan. A maximum total of 4,200,000 options
will be granted and they entitle their holders to subscribe to a maximum of
4,200,000 new or existing Company's own share. The new incentive plan is to
replace the existing incentive plan from the year 2012.
Of the stock options, 2,200,000 are to be marked with the symbol 2014A,
1,000,000 are to be marked with the symbol 2014B and 1,000,000 are to be marked
with the symbol 2014C. The share subscription price stock option 2014A is EUR
0.54 per share, which corresponds to the trade volume weighted average
quotation of the share on the NASDAQ OMX Helsinki Ltd during 15 of February -
15 of March 2014.The subscription price for options 2014B and 2014C is defined
as the weighted average trade price of the Company's stock in NASDAQ OMX
Helsinki as follows: for the options 2014B between 15 of February -15 of March
2015 and for the options 2014C 15 of February -15 March 2016.
The subscription periods for the shares are as follows: for options 2014A 1 of
February 2016 - 31 of January 2018; for options 2014B 1 of February 2017 - 31
of January, 2019 and for options 2014C 1 of February 2018 - 31 of January 2020.
Pursuant to the stock option subscriptions, the number of shares can increase
by a maximum of 4,200,000 new shares.
Full information on the stock option incentive plan can be found at company's
web page www.comptel.com. A separate stock exchange release about the stock
option plan has been issued on 5 of February 2014.
Events after the Reporting Period
Comptel received a significant order from Saudi-Arabia. A separate stock
exchange release was issued on 9 of July 2014.
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 to 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 system and
the value of a single project may be several million euros. Therefore, the risk
or 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 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.
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 more in detail in the
company's financial statements and the Board of Directors' report for 2013.
Outlook
Comptel's operating result for 2014 is expected to be EUR 5-10 million. The
2014 revenue is expected to remain at the 2013 level while the new solutions
are expected to grow from Q2 onwards.
Characteristically a significant part of Comptel's operating profit and net
sales is generated in the second half of the year.
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 2013.
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 1 Jan - 1 Jan - 1 Apr - 1 Apr -
Income (EUR 1,000) 30 Jun 30 Jun 30 Jun 30 Jun
2014 2013 2014 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 38,595 41,803 20,572 20,632
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other operating income 306 4 -7 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Materials and services -2,099 -2,126 -1,021 -1,012
--------------------------------------------------------------------------------
Employee benefits -18,798 -21,398 -10,044 -9,996
--------------------------------------------------------------------------------
Depreciation, amortisation and impairment -3,162 -2,715 -1,658 -1,460
charges
--------------------------------------------------------------------------------
Other operating expenses -12,708 -13,241 -6,666 -6,883
--------------------------------------------------------------------------------
-36,767 -39,480 -19,389 -19,351
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/loss 2,134 2,327 1,176 1,285
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 543 200 -58 -3
--------------------------------------------------------------------------------
Financial expenses -1,142 -1,384 -356 -229
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss before income taxes 1,536 1,142 761 1,052
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -720 -1,579 -96 -876
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period 816 -437 665 176
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income to be
reclassified to profit or loss in
subsequent periods
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Translation differences 313 -319 224 -219
--------------------------------------------------------------------------------
Cash flow hedges - - - -
--------------------------------------------------------------------------------
Income tax relating to components of other - - - -
comprehensive income
--------------------------------------------------------------------------------
Total other comprehensive income 313 -319 224 -219
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income for the period 1,129 -755 889 -42
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 816 -437 665 176
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 1,129 -755 889 -42
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders of the parent company:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.01 -0.00 0.01 -0.00
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR 0.01 -0.00 0.01 -0.00
--------------------------------------------------------------------------------
Consolidated Statement of Financial Position (EUR 30 Jun 2014 31 Dec 2013
1,000)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Assets
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Goodwill 2,646 2,646
--------------------------------------------------------------------------------
Other intangible assets 13,577 14,174
--------------------------------------------------------------------------------
Tangible assets 1,547 1,629
--------------------------------------------------------------------------------
Investments in associates 661 661
--------------------------------------------------------------------------------
Available-for-sale financial assets 87 87
--------------------------------------------------------------------------------
Deferred tax assets 5,129 4,358
--------------------------------------------------------------------------------
Other non-current receivables 517 500
--------------------------------------------------------------------------------
24,164 24,055
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Trade and other current receivables 31,844 37,346
--------------------------------------------------------------------------------
Cash and cash equivalents 2,850 6,542
--------------------------------------------------------------------------------
34,694 43,889
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 58,858 67,944
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity and liabilities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity attributable to equity holders of the parent
company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Share capital 2,141 2,141
--------------------------------------------------------------------------------
Fund of invested non-restricted equity 401 401
--------------------------------------------------------------------------------
Translation differences -906 -1,219
--------------------------------------------------------------------------------
Retained earnings 27,258 27,600
--------------------------------------------------------------------------------
Total equity 28,894 28,924
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------------------------
Deferred tax liabilities 2,709 2,983
--------------------------------------------------------------------------------
Non-current financial liabilities 2,346 3,483
--------------------------------------------------------------------------------
5,055 6,466
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current liabilities
--------------------------------------------------------------------------------
Provisions 1,729 1,939
--------------------------------------------------------------------------------
Current financial liabilities 2,280 5,287
--------------------------------------------------------------------------------
Trade and other current liabilities 20,902 25,329
--------------------------------------------------------------------------------
24,911 32,554
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total liabilities 29,964 39,020
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity and liabilities 58,858 67,944
--------------------------------------------------------------------------------
Consolidated Statement of Cash Flows 1 Jan - 30 1 Jan - 30
(EUR 1,000) Jun 2014 Jun 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from operating activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit/loss for the period 816 -437
--------------------------------------------------------------------------------
Adjustments:
--------------------------------------------------------------------------------
Non-cash transactions or items that are not part of 3,012 3,680
cash flows from operating activities
--------------------------------------------------------------------------------
Interest and other financial expenses 486 501
--------------------------------------------------------------------------------
Interest income -8 -8
--------------------------------------------------------------------------------
Income taxes 740 1,579
--------------------------------------------------------------------------------
Change in working capital:
--------------------------------------------------------------------------------
Change in trade and other current receivables 4,736 4,351
--------------------------------------------------------------------------------
Change in trade and other current liabilities -4,533 -5,711
--------------------------------------------------------------------------------
Change in provisions 135 -527
--------------------------------------------------------------------------------
Interest and other financial expenses paid -123 -151
--------------------------------------------------------------------------------
Interest received 4 4
--------------------------------------------------------------------------------
Income taxes paid and tax returns received -1,907 -2,000
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash from operating activities 3,358 1,281
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from investing activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Proceeds from sale of business operations 200 -
--------------------------------------------------------------------------------
Investments in tangible assets -255 -332
--------------------------------------------------------------------------------
Investments in intangible assets - -10
--------------------------------------------------------------------------------
Investments in development projects -2,181 -2,817
--------------------------------------------------------------------------------
Change in other non-current receivables -5 -13
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash used in investing activities -2,242 -3,173
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from financing activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Dividends paid -1,073 -
--------------------------------------------------------------------------------
Acquisition of Corporation's own shares - -88
--------------------------------------------------------------------------------
Proceeds from borrowings - 9,000
--------------------------------------------------------------------------------
Repayment of borrowings -4,008 -7,028
--------------------------------------------------------------------------------
Lease payments -84 -60
--------------------------------------------------------------------------------
Change in other non-current liabilities -60 -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash used in financing activities -5,226 1,824
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in cash and cash equivalents -4,808 -67
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the 6,542 4,817
period
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 2,850 4,523
--------------------------------------------------------------------------------
Change -3,692 -294
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Effects of changes in foreign exchange rates 923 -227
--------------------------------------------------------------------------------
Consolidated Statement of Changes in Equity
--------------------------------------------------------------------------------
-
Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
-
EUR 1,000 Share Other Translation Retained Total
capital reserves differences earnings
--------------------------------------------------------------------------------
Equity at 2,141 243 -636 25,208 26,956
31 Dec 2012
--------------------------------------------------------------------------------
Acquisition of -88 -88
Corporation's own
shares
--------------------------------------------------------------------------------
Transfer of treasury 66 66
shares
--------------------------------------------------------------------------------
Share-based 153 153
compensation
--------------------------------------------------------------------------------
Total comprehensive -319 -437 -755
income for the period
--------------------------------------------------------------------------------
Equity at 2,141 243 -955 24,902 26,332
30 Jun 2013
--------------------------------------------------------------------------------
Consolidated Statement of Changes in Equity
--------------------------------------------------------------------------------
-
Equity attributable to equity holders of the parent company
--------------------------------------------------------------------------------
-
EUR 1,000 Share Other Translation Retained Total
capital reserves differences earnings
--------------------------------------------------------------------------------
Equity at 2,141 401 -1,219 27,600 28,924
31 Dec 2013
--------------------------------------------------------------------------------
Dividends -1,073 -1,073
--------------------------------------------------------------------------------
Share-based 134 134
compensation
--------------------------------------------------------------------------------
Prior year correction * -210 -210
--------------------------------------------------------------------------------
Other changes -10 -10
--------------------------------------------------------------------------------
Total comprehensive 315 816 1,130
income for the period
--------------------------------------------------------------------------------
Equity at 2,141 401 -905 27,258 28,895
30 Jun 2014
--------------------------------------------------------------------------------
*Difference in prior year receivables was corrected directly to Retained
Earnings during the quarter
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 2014. However, those
have not had an impact on the consolidated financial statements.
2. Segment information
Net sales by segment
EUR 1,000 1 Jan - 1 Jan - 1 Apr - 1 Apr -
30 Jun 2014 30 Jun 2013 30 Jun 2014 30 Jun 2013
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Europe 15,458 17,610 8,664 9,255
--------------------------------------------------------------------------
Asia-Pacific 12,196 11,274 6,279 5,624
--------------------------------------------------------------------------
Middle East and Africa 6,913 7,207 3,753 3,681
--------------------------------------------------------------------------
Americas 4,027 5,712 1,876 2,072
--------------------------------------------------------------------------
Group total 38,595 41,803 20,572 20,632
--------------------------------------------------------------------------
Operating profit/loss by segment
EUR 1,000 1 Jan - 1 Jan - 1 Apr - 1 Apr -
30 Jun 30 Jun 30 Jun 30 Jun
2014 2013 2014 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Europe 7,328 8,291 4,416 5,137
--------------------------------------------------------------------------------
Asia-Pacific 7,581 5,238 3,755 2,468
--------------------------------------------------------------------------------
Middle East and Africa 2,905 2,031 1,502 953
--------------------------------------------------------------------------------
Americas 1,789 2,906 926 580
--------------------------------------------------------------------------------
Group unallocated expenses -17,469 -16,140 -9,424 -7,854
--------------------------------------------------------------------------------
Group operating profit/loss 2,134 2,327 1175 1,285
total
--------------------------------------------------------------------------------
Financial income and expenses -598 -1,184 -414 -232
--------------------------------------------------------------------------------
Group profit/loss before income 1,536 1,142 760 1,052
taxes
--------------------------------------------------------------------------------
3. Income tax
Income tax expense according to the statement of comprehensive income for the
period was EUR 720 thousand (EUR 1,579 thousand in 2013).
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 382 thousand
in January - June (EUR 692 thousand).
4. Tangible assets
EUR 1,000 1 Jan - 30 Jun 2014 1 Jan - 30 Jun 2013
---------------------------------------------------
---------------------------------------------------
Additions 255 332
---------------------------------------------------
Disposals - -30
---------------------------------------------------
5. 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 - 30 Jun 2014 1 Jan - 30 Jun 2013
----------------------------------------------------------------
----------------------------------------------------------------
Associate
----------------------------------------------------------------
Other operating income - 3
----------------------------------------------------------------
Interest income 4 4
----------------------------------------------------------------
EUR 1,000 30 Jun 2014 31 Dec 2013
-------------------------------------------------
-------------------------------------------------
Associate
-------------------------------------------------
Non-current receivables 110 102
-------------------------------------------------
Trade receivables - -
-------------------------------------------------
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 - 30 Jun 1 Jan - 30 Jun
2014 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Salaries and other short-term employee 712 738
benefits
--------------------------------------------------------------------------------
Share-based payments 183 167
--------------------------------------------------------------------------------
Total 895 905
--------------------------------------------------------------------------------
Guarantees and other commitments
EUR 1,000 30 Jun 2014 31 Dec 2013
------------------------------------
------------------------------------
Guarantees 31 33
------------------------------------
6. Commitments
Minimum lease payments on non-cancellable office facilities and other operating
leases are payable as follows:
EUR 1,000 30 Jun 2014 31 Dec 2013
----------------------------------------------------
----------------------------------------------------
Less than one year 1,851 2,312
----------------------------------------------------
Between one and five years 3,492 4,596
----------------------------------------------------
Total 5,343 6,908
----------------------------------------------------
The group had no material capital commitments for the purchase of tangible
assets at 30 June 2014 and 30 June 2013.
7. Contingent liabilities
EUR 1,000 30 Jun 2014 31 Dec 2013
---------------------------------------------
---------------------------------------------
Bank guarantees 1,429 1,674
---------------------------------------------
Corporate mortgages 200 200
---------------------------------------------
EUR 1,000 30 Jun 2014 31 Dec 2013
--------------------------------------------------------------------
--------------------------------------------------------------------
Contingent liabilities on behalf of others
--------------------------------------------------------------------
Guarantees 68 72
--------------------------------------------------------------------
8. Key figures
Financial summary 1 Jan - 1 Jan - 1 Jan -
30 Jun 30 Jun 31 Dec
2014 2013 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales, EUR 1,000 38,595 41,803 82,668
--------------------------------------------------------------------------------
Net sales, change % -7.7 4.0 0.3
--------------------------------------------------------------------------------
Operating profit/loss, EUR 1,000 2,134 2,327 7,308
--------------------------------------------------------------------------------
Operating profit/loss, change % 8.3 114.8 154.1
--------------------------------------------------------------------------------
Operating profit/loss, as % of net sales 5.5 5.6 8.8
--------------------------------------------------------------------------------
Profit/loss before taxes, EUR 1,000 1,536 1,142 5,554
--------------------------------------------------------------------------------
Profit/loss before taxes, as % of net sales 4.0 2.7 6.7
--------------------------------------------------------------------------------
Return on equity, % - - 9.3
--------------------------------------------------------------------------------
Return on investment, % - - 16.1
--------------------------------------------------------------------------------
Equity ratio, % 60.7 48.5 50.5
--------------------------------------------------------------------------------
Gross investments in tangible and intangible 255 343 551
assets, EUR 1,0001)
--------------------------------------------------------------------------------
Gross investments in tangible and intangible 0.7 0.8 0.7
assets, as % of net sales
--------------------------------------------------------------------------------
Capitalisations according to IAS 38 to intangible 2,181 2,817 5,510
assets, EUR 1,000
--------------------------------------------------------------------------------
Research and development expenditure, EUR 1,000 7,703 8,614 17,790
--------------------------------------------------------------------------------
Research and development expenditure, 20.0 20.6 21.5
as % of net sales
--------------------------------------------------------------------------------
Order backlog, EUR 1,000 42,778 41,883 40,756
--------------------------------------------------------------------------------
Average number of employees during the period 673 683 684
--------------------------------------------------------------------------------
Interest-bearing net liabilities, EUR 1,000 1,776 6,425 2,228
--------------------------------------------------------------------------------
Gearing ratio, % 6.1 24.4 7.7
--------------------------------------------------------------------------------
1) The figure does not include investments in development projects.
Per share data 1 Jan - 1 Jan - 1 Jan -
30 Jun 2014 30 Jun 2013 31 Dec 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share (EPS), EUR 0.01 -0.00 0.02
--------------------------------------------------------------------------------
EPS diluted, EUR 0.01 -0.00 0.02
--------------------------------------------------------------------------------
Equity per share, EUR 0.27 0.25 0.27
--------------------------------------------------------------------------------
Dividend per share, EUR - - 0.01
--------------------------------------------------------------------------------
Dividend per earnings, % - - 41.2
--------------------------------------------------------------------------------
Effective dividend yield, % - - 2.1
--------------------------------------------------------------------------------
P/E ratio - - 19.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Adjusted number of shares at the end of 107,421,270 107,054,810 107,421,270
the period
--------------------------------------------------------------------------------
of which the number of treasury shares 239 161,219 161,219
--------------------------------------------------------------------------------
Outstanding shares 107,421,031 106,893,591 107,260,051
--------------------------------------------------------------------------------
Adjusted average number of shares during 107,421,270 106,893,591 106,863,518
the period
--------------------------------------------------------------------------------
Average number of shares, dilution 109,332,843 106,893,591 106,893,591
included
--------------------------------------------------------------------------------
9. 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 + x100
financial expenses
------------------------------------ -----------------------------------------
------------------------------------
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 x100
intangible assets, as % of net intangible assets
sales
------------------------------------ -----------------------------------------
------------------------------------
Net sales
------------------------------------ -----
------------------------------------ -----
Research and development = Research and development x100
expenditure, as % of net sales expenditure
------------------------------------ -----------------------------------------
------------------------------------
Net sales
------------------------------------ -----
------------------------------------ -----
Gearing ratio % = Interest-bearing liabilities - x100
cash and cash equivalents
------------------------------------ -----------------------------------------
------------------------------------
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)
------------------------------------ -----
--------------------------------------------------------------------------------
Schedule for Comptel's next interim report in 2014:
January-September 21 October 2014
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
Distribution:
NASDAQ OMX Helsinki
Major media
www.comptel.com
© 2024 Nasdaq, Inc. All Rights Reserved |