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2009-10-22 08:30:00 CEST 2009-10-22 08:30:01 CEST REGULATED INFORMATION QPR Software - Interim report (Q1 and Q3)QPR SOFTWARES' THIRD QUARTER RESULTS IMPROVED FROM LAST YEAR, OPERATING MARGIN WAS 10.6%QPR SOFTWARE PLC STOCK EXCHANGE RELEASE OCTOBER 22, 2009 9.30 AM INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2009 QPR SOFTWARES' THIRD QUARTER RESULTS IMPROVED FROM LAST YEAR, OPERATING MARGIN WAS 10.6% SUMMARY July - September 2009: - Net sales EUR 1.501 million (July - September 2008: EUR 1.485 million) - Operating profit EUR 0.159 million (0.063) - Operating margin 10.6 percent of net sales (4.2) - Earnings per share were EUR 0.01 (0.00) January - September 2009: - Net sales EUR 4.817 million (January - September 2008: EUR 5.453 million) - Operating profit EUR 0.486 million (0.478) - Operating margin 10.1 percent of net sales (8.8) - Earnings per share were EUR 0.03 (0.03) QPR Software´s operating profit from July - September improved significantly from last year, mainly due to successful cost control. Net sales rose to EUR 1.501 million (1.485). Net sales in Finland increased 28.8 per cent from last year, leading to improved profitability. Net sales in QPR´s international operations decreased, but at a markedly lower pace than in the first two quarters of 2009. QPR Software estimates that its operating profit in the second half of 2009 remains on the level achieved in the first half of 2009 (January - September 2009: EUR 0.327 million) or improves. KEY FIGURES -------------------------------------------------------------------------------- | (EUR 1.000) | 7-9/ | 7-9/ | Change-| 1-9/ | 1-9/ | Change- | 1-12/ | | 2009 | 2008 | % | 2009 | 2008 | % | 2008 -------------------------------------------------------------------------------- | Net sales | 1,501 | 1,485 | 1.1 | 4,817 | 5,454 | -11.7 | 7,512 -------------------------------------------------------------------------------- | Operating profit | 159 | 63 | 152.3 | 486 | 478 | 1.7 | 893 -------------------------------------------------------------------------------- | % of net sales | 10.6 | 4.2 | | 10.1 | 8.8 | | 11.9 -------------------------------------------------------------------------------- | Profit before | 149 | 75 | 98.2 | 477 | 493 | -3.2 | 927 | tax | | | | | | | -------------------------------------------------------------------------------- | Profit for the | 116 | 59 | 96.6 | 383 | 385 | -0.5 | 928 | period | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 7.7 | 4.0 | | 8.0 | 7.1 | | 12.4 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | | | | 0.03 | 0.03 | | 0.08 | share, EUR | | | | | | | -------------------------------------------------------------------------------- | EPS (diluted), | | | | 0.03 | 0.03 | | 0.07 | EUR | | | | | | | -------------------------------------------------------------------------------- | Equity per | | | | 0.22 | 0.18 | | 0.22 | share, EUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from | | | | 399 | 955 | | 1,518 | operating | | | | | | | | activities | | | | | | | -------------------------------------------------------------------------------- | Cash and cash | | | 2,042 | 1,530 | | 1,716 | equivalents | | | | | | -------------------------------------------------------------------------------- | Net liabilities | | | | -842 | -1,269 | | -1,534 -------------------------------------------------------------------------------- | Gearing, % | | | | -31.4 | -56.5 | | -56.1 -------------------------------------------------------------------------------- | Equity ratio, % | | | | 50.9 | 55.1 | | 54.9 -------------------------------------------------------------------------------- | Return on | | | | 18.9 | 22.8 | | 37.1 | equity, % | | | | | | | -------------------------------------------------------------------------------- | Return on | | | | 19.7 | 25.8 | | 33.6 | investment, % | | | | | | | -------------------------------------------------------------------------------- REPORTING This interim 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 2008 financial statements. This interim report is not audited. QPR Software´s business consists of software sales, software maintenance sales and professional services. As of January 1, 2009 QPR Software Plc has three business segments: Software Sales International (software license and maintenance sales outside of Finland), Software Sales Finland (software license and maintenance sales in Finland) and Service and Solutions (global professional service sales). The company has re-defined reporting principles, and does not anymore monitor minor inter-segment net sales or report it. The company has also revised accordingly the segment information provided in the 2008 Annual Report. The geographical segments used by the Company are Domestic (Finland) and International markets. JULY - SEPTEMBER 2009 COMPARED WITH JULY - SEPTEMBER 2008 THE GROUP Group net sales by geography, (EUR 1,000): -------------------------------------------------------------------------------- | (EUR 1 000) | 7-9/ | Share- | 7-9/ | Share- | Change- | 1-12/ | | | 2009 | % | 2008 | % | % | 2008 | -------------------------------------------------------------------------------- | Domestic | 577 | 38.4 | 448 | 30.2 | 28.8 | 2,634 | -------------------------------------------------------------------------------- | International | 924 | 61.6 | 1,037 | 69.8 | -10.9 | 4,878 | -------------------------------------------------------------------------------- | Total | 1,501 | 100.0 | 1,485 | 100.0 | 1.1 | 7,512 | -------------------------------------------------------------------------------- QPR Software Group´s net sales in the third quarter of 2009 were EUR 1.501 million (1.485), representing a growth of 1.1 per cent, Software Sales Finland´s net sales and profitability developed very favorably, but international net sales decreased by 10.9 per cent. The decline in international net sales was, however, clearly smaller than in the two first quarters of 2009. The Company has this year offered, as an alternative for software license sales, a pricing model based on subscription fees. The new pricing model has been well received in the markets. The share of subscription sales of QPR´s net sales are expected to remain, however, relatively small in the short term future. The Company´s and its resellers´ offer portfolio grew from previous year, but the customers´ software purchase processes remained clearly slower than in previous year. Group net sales divided into software licenses, maintenance services and professional services as follows, (EUR 1,000): -------------------------------------------------------------------------------- | | 7-9/ | Share- | 7-9/ | Share- | Change- | 1-12/ | | | 2009 | % | 2008 | % | % | 2008 | -------------------------------------------------------------------------------- | Software licenses | 494 | 32,9 | 562 | 37.9 | -12.1 | 3,617 | -------------------------------------------------------------------------------- | Maintenance | 812 | 54.1 | 734 | 49.4 | 10.6 | 2,957 | | services | | | | | | | -------------------------------------------------------------------------------- | Professional | 195 | 13.0 | 189 | 12.7 | 3.2 | 938 | | services | | | | | | | -------------------------------------------------------------------------------- | Total | 1,501 | 100.0 | 1,485 | 100.0 | 1.1 | 7,512 | -------------------------------------------------------------------------------- Software license sales decreased somewhat from last year and were EUR 0.494 million (0.562). The decrease was mainly attributable to current stringent economic situation and the Company´s initiative to offer subscription based pricing model as an alternative to software license sales. Maintenance services sales rose to EUR 0.812 million (0.734). The migration of maintenance customers to the new QPR 8.0 software version, launched at the end of 2008, continued swiftly. EUR 0.039 million maintenance sales increase was due to business acquired from Mawell Ltd, QPR bought at the end of December 2008 all Mawell Ltd´s customer contracts regarding QPR ProcessGuide, QPR ScoreCard and CostPerform software products. Operating profit in July - September improved significantly to EUR 0.159 million (0.063), mainly due to successful cost control. Operating margin rose to 10.6% (4.2) Depreciation grew to EUR 0.126 million (0.069), which was partly due to amortization of the purchase price of the business acquired from Mawell Ltd. Net profit after tax in July - September was EUR 0.116 million (0.059), which corresponded to 7.7% (4.0) of net sales. In the Group´s balance sheet as of September 30, 2009, the remaining amount of deferred tax is EUR 0.464 million (0.435). The (diluted) earnings per share were EUR 0.01 (0.00). BUSINESS SEGMENTS Group net sales by primary business segments, (EUR 1,000): -------------------------------------------------------------------------------- | | 7-9/ | Share- | 7-9/ | Share- | Change- | | | 2009 | % | 2008 | % | % | -------------------------------------------------------------------------------- | Software Sales | 917 | 61.1 | 1,009 | 63.2 | -9.2 | | International | | | | | | -------------------------------------------------------------------------------- | Software Sales Finland | 410 | 27.3 | 292 | 24.3 | 40.6 | -------------------------------------------------------------------------------- | Service and Solutions | 174 | 11.6 | 184 | 12.5 | -5.5 | -------------------------------------------------------------------------------- | Total | 1,501 | 100.0 | 1,485 | 100.0 | 1.1 | -------------------------------------------------------------------------------- Group operating profit by business segments, (EUR 1,000): -------------------------------------------------------------------------------- | | 7-9/ | Share- | 7-9/ | Share- | Change- | | | 2009 | % | 2008 | % | % | -------------------------------------------------------------------------------- | Software Sales | 165 | 104.0 | 122 | 192.8 | 35.6 | | International | | | | | | -------------------------------------------------------------------------------- | Software Sales Finland | 109 | 68.8 | 37 | 58.9 | 193.7 | -------------------------------------------------------------------------------- | Service and Solutions | -24 | -15.5 | -34 | -54.0 | 27.9 | -------------------------------------------------------------------------------- | Not allocated | -91 | -57.3 | -62 | -97.7 | -47.5 | -------------------------------------------------------------------------------- | Total | 159 | 100.0 | 63 | 100.0 | 151.5 | -------------------------------------------------------------------------------- Software Sales International Software Sales International business segment´s net sales in July - September decreased in a stringent economic situation to EUR 0.917 million (1.009). Thanks to improved efficiency operating profit increased to EUR 0.165 million (0.122). The largest export markets were South-Africa, Mexico, Sweden, Belgium and Great Britain. QPR delivered software, among others, in Bulgaria to Unimasters Logistics Plc, in Chile to the Supreme Court, in South-Africa to Nampak Ltd and the Dr Kenneth Kaunda District Municipality Cape Peninsula, in Dubai to Gulf Agency Company, in Japan to the Bank of Yokohama, in Malaysia to Jabatan Kerja Raya (the Public Works Department), in Sweden to Ludvika council, in Turkey to the University of Tehnology (Istanbul University) and Mercedes-Benz Turkey, and to Russia to Armtek, Econica, Losinoostrovsky Electrode Plan and to the biggest mobile operator in the Russian Federation, MTS. Software Sales Finland Software Sales Finland -business segment´s net sales in July - September rose to EUR 0.410 million (0.292), thanks to increased software license and maintenance sales. Also operating profit rose, due to increased sales, to EUR 0.109 million (0.037). In Finland QPR delivered software, among others, to Enfo Oyj, Cargotec Corporation, Onninen Group, Pohjola Bank, the social and healthcare services district of Etelä-Karjala, Laurea university of applied sciences and to the local government IT management unit of Ministry of Finance (KuntaIT). Service and Solutions Service and Solutions business segment´s net sales decreased mainly due to lower international professional service sales than in the previous year. Net sales were EUR 0.174 million (0.184). The operating loss improved to EUR -0.024 million (-0.034). Net sales in the review period were mainly derived from Finland. In its professional service offering. QPR focuses especially on business process consulting, in which QPR experts have significant experience across the industries. JANUARY - SEPTEMBER 2009 COMPARED WITH JANUARY - SEPTEMBER 2008 THE GROUP QPR Software Group´s net sales in January - September 2009 were EUR 4.817 million (5.454). The decrease in net sales was due to lower international software sales than in the previous year. However, the decrease in the international software sales was substantially more moderate in the third quarter than during the two first quarters of 2009. International net sales in January - September were EUR 2.714 million (3.641) Net sales in Finland grew and were EUR 2.103 million (1.813). The increase was boosted by increased software and license sales and QPR´s expansion to healthcare sector in the beginning of 2009. Group net sales by geography, (EUR 1,000): -------------------------------------------------------------------------------- | | 1-9/ | Share- | 1-9/ | Share- % | Change- | 1-12/ | | | 2009 | % | 2008 | | % | 2008 | -------------------------------------------------------------------------------- | Domestic | 2,103 | 43.7 | 1,813 | 33.2 | 16.0 | 2,634 | -------------------------------------------------------------------------------- | International | 2,714 | 56.3 | 3,641 | 66.8 | -25.5 | 4,878 | -------------------------------------------------------------------------------- | Total | 4,817 | 100.0 | 5,454 | 100.0 | -11.7 | 7,512 | -------------------------------------------------------------------------------- Group net sales divided into software licenses, maintenance services and professional services as follows, (EUR 1,000): -------------------------------------------------------------------------------- | | 1-9/ | Share- | 1-9/ | Share- % | Change- | 1-12/ | | | 2009 | % | 2008 | | % | 2008 | -------------------------------------------------------------------------------- | Software licenses | 1,652 | 34,3 | 2,558 | 46.9 | -35,4 | 3,617 | -------------------------------------------------------------------------------- | Maintenance | 2,522 | 52.4 | 2,218 | 40.7 | 13.7 | 2,957 | | services | | | | | | | -------------------------------------------------------------------------------- | Professional | 643 | 13.3 | 678 | 12.4 | -5.2 | 938 | | services | | | | | | | -------------------------------------------------------------------------------- | Total | 4,817 | 100.0 | 5,454 | 100.0 | -11.7 | 7,512 | -------------------------------------------------------------------------------- Maintenance service sales increased to EUR 2.522 million (2.218). The migration of maintenance customers to the new QPR 8.0 software version, launched at the end of 2008, continued swiftly. EUR 0.165 million maintenance sales increase was due to business acquired from Mawell Ltd. The transfer of contracts was finalized during the second quarter. Professional services net sales was EUR 0.643 million (0.678). Its share of Group's net sales increased slightly and was 13.3 percent (12.4). Operating profit in January - September increased to EUR 0.486 million (0.478) thanks to successful cost control. Operating margin was 10.1% (8.8). Depreciation grew to EUR 0.335 million (0.208), which was partly due to depreciation the purchase price of the business acquired from Mawell Ltd. Cash flow from operating activities was positive EUR 0.399 million (0.955). Net profit after tax in January - September was EUR 0.383 million (0.385), which corresponded to 8.0% of net sales (7.1). Earnings per share (diluted) were EUR 0.03 (0.03). BUSINES SEGMENTS Group net sales by primary business segments, (EUR 1,000): -------------------------------------------------------------------------------- | | 1-9/ | Share- | 1-9/ | Share- | Change- | | | 2009 | % | 2008 | % | % | -------------------------------------------------------------------------------- | Software Sales | 2,664 | 55.3 | 3,536 | 64.8 | -24.7 | | International | | | | | | -------------------------------------------------------------------------------- | Software Sales Finland | 1,547 | 32.1 | 1,275 | 23.4 | 21.4 | -------------------------------------------------------------------------------- | Service and Solutions | 606 | 12.6 | 643 | 11.8 | -5.7 | -------------------------------------------------------------------------------- | Total | 4,817 | 100.0 | 5,454 | 100.0 | -11.7 | -------------------------------------------------------------------------------- Group operating profit by business segments, (EUR 1,000): -------------------------------------------------------------------------------- | | 1-9/ | Share- | 1-9/ | Share- | Change- | | | 2009 | % | 2008 | % | % | -------------------------------------------------------------------------------- | Software Sales | 254 | 52.2 | 458 | 95.9 | -44.6 | | International | | | | | | -------------------------------------------------------------------------------- | Software Sales Finland | 525 | 108.0 | 333 | 69.7 | 57.5 | -------------------------------------------------------------------------------- | Service and Solutions | -21 | -4.3 | 30 | 6.3 | -169.8 | -------------------------------------------------------------------------------- | Not allocated | -272 | -55.9 | -343 | -71.9 | 20.9 | -------------------------------------------------------------------------------- | Total | 486 | 100.0 | 478 | 100.0 | 1.7 | -------------------------------------------------------------------------------- Software Sales International Software Sales International business segment´s net sales decreased in January - September to EUR 2.664 million (3.536), due to lower software license sales. For the same reason, the segment´s operating profit decreased to EUR 0.254 million (0.458). The largest export markets were Russian Federation, Sweden, South-Africa, Mexico, Japan, United Arab Emirates and Switzerland. Software Sales Finland Software Sales Finland business segment´s net sales in January - September rose to EUR 1.547 million (1.275) thanks to increased software license and maintenance sales. Operating profit rose due to increased sales to EUR 0.525 million (0.333). Service and Solutions Service and Solutions business segment´s net sales in January - September was EUR 0.606 million (0.643). Operating profit turned slightly negative and totaled to EUR -0.021 million (0.030). The decrease was due to lower international professional service sales than in the previous year. Net sales were mainly derived from Finland. FINANCE AND INVESTMENTS The value of total assets at the end of September 2009 was EUR 6.170 million (5.147). The Group´s investments in the review period totaled to EUR 0.649 million (0.161). Cash flow from operating activities was EUR 0.399 million (0.955). The main reason for decreased cash flow is the increase of working capital during the review period. Cash and cash equivalents at the end of the review period were EUR 2.042 (1.530). The dividend of EUR 0.368 was paid in the reporting period (0.368). The Group´s interest bearing liabilities increased to EUR 1.200 million (0.261) due to EUR 1.1 million pension loan withdrawn during the review period. The gearing ratio on September 30, 2009 was -31.4% (-56.5). Return on capital employed was 19.7% (25.8). Short-term liabilities include deferred revenue in total of EUR 0.901 million (1.072). At the end of reporting period, quick ratio was 2.50 (2.42). At the end of the reporting period, the Group equity stood at EUR 2.684 million (2.244), and equity to assets ratio was 50.9% (55.1). Return on equity was 18.9% (22.8). PERSONNEL At the end of the September, the Group employed a total of 59 persons (54). Average number of personnel was 56 (53). PRODUCT DEVELOPMENT The amount of R&D expenses in the review period were EUR 0.844 million (1.142), representing 18.3% of net sales (20.9 %). In the review period, R&D expenses have been activated as assets for a total amount of EUR 0.087 million (0.095). The depreciation period of capitalized R&D expenses is 4 years. The depreciation of activated R&D expense was EUR 0.118 million (0.065). Product development employed 20 people (14) at the end of the review period, corresponding to 34 % of the total personnel (26 %). The core know-how of product development remains centralized within the own organization. Long-term co-operation continued with established subcontractors. QPR Software has been a Microsoft Gold Certified Partner since 2007. In the review period, Research & Development activities focused on the development of a new version of the QPR product family, QPR 8.1, released in October 2009. The new version will broaden the integration between the QPR software products and the Microsoft Office product family by e.g enabling publishing and distribution of process, quality, performance and risk information through Microsoft Office SharePoint Server portals. As part of the new release, the QPR product family will also become fully compatible with Microsoft Windows 7™. QPR's desktop process modeling tool. QPR ProcessGuide Xpress, has already during the review period been certified for Windows 7™. QPR offers an easy-to-use, ready-to-run software that combines process modeling and analysis (QPR ProcessGuide), business process automation (QPR WorkFlow), performance management and measurement (QPR ScoreCard), and business intelligence (QPR FactView) into one complete solution for process management, quality management, risk management and compliance. With the help of QPR software solutions, organizations optimize business processes, take control of risk and compliance issues, improve operational performance and drive strategy throughout their organization in order to comply with rules and regulation as well as manage transition caused by strategic or regulatory demands. The software products developed by QPR are fast to implement and adapt to customers' evolving requirements and their chosen management methodology. QPR software applications are especially designed to be compatible with Microsoft software products and are scalable from a single-user to an organization-wide management system. The QPR product family has been localized into 26 languages (24). COMPANY SHARES AND TRADING IN COMPANY SHARES The Company's share capital on September 30, 2009 was EUR 1.359 million divided into 12,444,863 shares. QPR Software Plc has one share class. The book counter value is EUR 0.11. At the end of review period, the Company had a total of 579 shareholders. In January - September, trading in company shares amounted to EUR 0.511 million. i.e. an average of EUR 2,717 per trading day. Trading in shares was in total 592,817 shares, giving an average of 3,153 shares per trading day. Turnover in shares corresponds to 4.76% of the total shares and the average price was EUR 0.86 per share. The total market value of the company shares was EUR 10.846 million at September 30, 2009 closing price of EUR 0.89. OWN SHARES The number of acquired own shares in January - September was 97,850 At the end of September the Company held 258,000 of its own shares with a total book counter value of EUR 28,433 and a total purchase price of EUR 209,102.83. Own shares held by the company represented 2.07% of the Company´s capital stock (1.04). The Board of Directors has been granted by the Annual Shareholders Meeting of March 12, 2009 a share repurchases authorization, valid until next Annual Shareholders Meeting, to repurchase company shares in total of 250,000 shares at maximum. According to the authorization the company may acquire own shares in order to strengthen the company's capital structure, to be used as payment in corporate acquisitions or when the company acquires assets related to its business or as part of the company's incentive programs in a manner and to the extent decided by the Board of Directors, or to be transferred for other purposes or to be cancelled. OTHER EVENTS QPR Software's new business organization came effective as of January 1, 2009. From the same day, the Executive Management Team consists of the following persons: Chief Executive Officer Jari Jaakkola (chairman), Vice President Software Sales International Antti Ainasoja, Vice President Software Sales Finland Matti Erkheikki, Vice President Services and Solutions Maija Erkheikki, Vice President Marketing and Business Development Teemu Lehto, acting CFO Päivi Vahvelainen (until August 9, 2009) and Vice President Products and Technology Tony Virtanen. M.Sc. (Eng) Kari Pihlatie (52) started on August 10, 2009 as the Chief Financial Officer and Member of the Executive Management Team. He joined the company from Metsaliitto Finnforest and has previously held several financial management leadership positions, among others, in M-real Corporation and Metsa Tissue Corporation. In its meeting on January 19, 2009 the QPR Board of Directors approved 67,000 share subscriptions made under QPR Software Plc Stock Option Plan 2003/III A and 2003/B. The new shares were entered into the Trade Register in February 10, 2009, after which the number of company´s shares rose to 12,444,863. The company has no option schemes in effect. The Board of Directors of QPR Software Plc decided on February 11, 2009 to withdraw a pension loan of EUR 1.1 million, with loan period of 5 years. The loan was fully withdrawn during the second quarter. In its meeting on September 23, 2009 the QPR Board of Directors approved Company's new principles for risk management reporting. Application of the principles starts in the third quarter financial reporting. STRATEGY According to the strategic guidelines of the Company, QPR aims to substantially increase the number of QPR software users both in new and existing customer organizations. The Company believes that this will have a positive effect also on the sales of professional services. Pricing will be further simplified, and affordable solutions are offered also to organizations with large number of users. The company aims to accelerate its software sales process and deployment of its customer solutions by creating service concepts around QPR software, and offering replicable frameworks that are based on target group specific needs. In international markets QPR focuses on further diversifying and strengthening its sales channel by entering in co-operation agreements with e.g. Microsoft resellers and health care consultancies. In the near regions QPR will invest especially in sales to Russia. Product development is focused on supporting the chosen service offering, by utilizing both the existing QPR products and their strong Microsoft compatibility. The Company continues to follow the structural developments in the software Industry, and aims actively to participate in it. DECISIONS MADE BY THE ANNUAL SHAREHOLDERS' MEETING AND GOVERNANCE The Annual Shareholders' Meeting held on March 12, 2009 made the following decisions: The Annual Shareholders' Meeting confirmed the company's financial statements and the group's financial statements for the financial period of January 1 - December 31, 2008 and released the Board of Directors and the Managing Directors from liability. The Annual Shareholders' Meeting approved the Board's proposal that a per-share dividend of EUR 0.03, a total of EUR 368,262.39, be paid for the financial year 2008. The dividend was paid to shareholders entered in the company's shareholder register, maintained by Euroclear Finland Oy, on the record date of March 17, 2009. The dividend payment date was March 26, 2009. The Annual Shareholders' Meeting resolved that the Board of Directors shall consist of five ordinary members. The Annual Shareholders' Meeting elected the following members to the Board of Directors: Jyrki Kontio, Vesa-Pekka Leskinen, Jarmo Niemi, Asko Piekkola and Topi Piela. 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, continues as QPR Software Plc's Auditors. The Annual Shareholders' Meeting decided to keep the Board of Directors´ yearly emoluments the same as in previous year. A yearly emolument of EUR 25,230 is paid to the Chairman of the Board and EUR 16,820 to the other Members of the Board. The Annual Shareholders' Meeting decided to authorize the Board of Directors to decide on an issue of new shares and conveyance of the own shares held by the company (share issue) either in one or in several occasions. The share issue can be carried out as a share issue against payment or without consideration on terms to be determined by the Board of Directors. The authorization also includes the right to issue special rights, in the meaning of Chapter 10 Section 1 of the Companies Act, which entitle to the company's new shares or the company's own shares held by the company against payment. In the share issue and/or based on the special rights a maximum of 4,000,000 new shares can be issued and a maximum of 250,000 own shares held by the company can be conveyed. The authorization is in force until the next Annual Shareholders' Meeting. The Annual Shareholders' Meeting decided to authorize the Board of Directors to decide on an acquisition of own shares. Based on the authorization own shares may be acquired, either in one or in several occasions, the aggregate maximum amount of 250,000 shares. The authorization is in force until the next Annual Shareholders´ Meeting. Further, the Annual Shareholders' Meeting decided to authorize the Board of Directors to decide on potential distribution of assets from the invested unrestricted equity fund, provided that the evaluations of the financial situation of the company and its market outlook are in favor of such a decision. The maximum distribution of assets is EUR 0.02 per share. The authorization is in force until the next Annual Shareholders´ Meeting. The Board of Directors must make the decision no later than 31 December, 2009. The conditions of all authorizations of the Board are available in their entirety on the investors section of the company's web site, and on the stock exchange release, published by the company on March 12, 2009. CORPORATE GOVERNANCE QPR Software Plc complies with the NASDAQ OMX Helsinki Ltd's Guidelines for Insiders issued on June 2, 2008 and the Corporate Governance Code, including its transitional provisions, effective as of January 1, 2009. The Company's Corporate Governance Statement is available in the Investor section of the Company's website, www.qpr.com. Also available in the investor section is further information, such as, administration of insiders register, public insiders register, list of major shareholders, articles of association, charter of the Board, description of how internal control and internal audit is organized, introductions of the members of the Board and Executive Management Team, and the information published by the company in the review period. SHORT-TERM RISKS 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 to regulations and operational principles, reaches its strategic goals and ensures continuity of its business. It is the duty of the Board of Directors to monitor the appropriateness, effectiveness and efficiency of risk management and internal control in QPR Software Group. The Board of Directors also monitors that the Company has defined operational principles for internal control and that the Company monitors the effectiveness of internal control. Risk management report is presented to the Board in connection with quarterly financial reporting. Coordination of risk management and internal control and related reporting is the responsibility of the Chief Financial Officer. QPR Software identifies the risks by their essentiality: if actualized, the risks selected for monitoring would have a material impact on the Company's business operations. QPR has identified the following four groups of risks related to its operations: risks related to business operations (country, customer, result forecasting process, personnel, legal, financial), risks related to company's general operational environment (economic fluctuations), 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. Reasonable credit risk concerning individual business partners 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 customary and reasonable level. External business environment changes, such as economic fluctuations, are included in the Company´s market and customer risks. General decline in business activity has been exceptionally abrupt since autumn 2008, and this has created economic unrest in all markets. The general economic uncertainty, continuation of negative development or deepening of such a development may have a negative impact on software market and thus, also to QPR´s business operations. QPR´s market and customer risks are mitigated by the following factors: the Company conducts business in over 50 countries, both in public and private sector as well as in several different business verticals. In addition, the customer benefits produced by QPR´s products and solutions are related to optimization and streamlining of operations, strategy implementation as well as risk management and compliance. QPR believes, based on its earlier experiences from cyclical fluctuations that demand for these customer benefits remains relatively strong even in recession. 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 2008, page 23 (www.qpr.com/annual-reports.html). FUTURE OUTLOOK Market forecasts published in the first half of 2009 estimate that total corporate IT investments will decrease in 2009. The estimated decrease varies, and is usually between 3 and 10%, depending on the publisher of the forecast and its timing. Based on current software market growth forecasts, QPR´s own forecasts and resellers' forecasts. QPR Software estimates that its operating profit in the second half of 2009 remains on the level achieved in the first half of 2009 (January - July 2009: EUR 0.327 million) or improves. The nature of the software license business of the QPR Group is seasonal. Seasonality of large software deals can affect significantly net sales and profit of one individual quarter. QPR SOFTWARE PLC'S FINANCIAL INFORMATION QPR Software Plc will publish Financial Statements Bulletin for 2009 on Thursday, February 18, 2010 QPR SOFTWARE PLC BOARD OF DIRECTORS Further information: Jari Jaakkola, CEO Tel. +358 (0)40 5026 397 www.qpr.com DISTRIBUTION OMX Nordic Exchange Helsinki Main Media 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. APPENDIX: TABLE SECTION -------------------------------------------------------------------------------- | CONSOLIDATED INCOME | | | | | | | STATEMENT | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (EUR 1,000) | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- | Net sales | 1,501 | 1,485 | 4,817 | 5,454 | 7,512 | -------------------------------------------------------------------------------- | Other operating income | 3 | 7 | 35 | 39 | 51 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Material and services | 134 | 225 | 363 | 757 | 875 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Employee benefits | 748 | 733 | 2,533 | 2,662 | 3,653 | | expenses | | | | | | -------------------------------------------------------------------------------- | Depreciation | 126 | 69 | 335 | 208 | 301 | -------------------------------------------------------------------------------- | Other operating expenses | 337 | 402 | 1,135 | 1,388 | 1,841 | -------------------------------------------------------------------------------- | Operating profit | 159 | 63 | 486 | 478 | 893 | -------------------------------------------------------------------------------- | Financial income and | -10 | 12 | -9 | 15 | 34 | | expenses | | | | | | -------------------------------------------------------------------------------- | Profit before tax | 149 | 75 | 477 | 493 | 927 | -------------------------------------------------------------------------------- | Income tax expense | -33 | -16 | -94 | -108 | 1 | -------------------------------------------------------------------------------- | Profit for the period | 116 | 59 | 383 | 385 | 928 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other comprehensive income statement items: | | | | -------------------------------------------------------------------------------- | Exchange differences on | 15 | 6 | 10 | -4 | -35 | | translating foreign | | | | | | | operations | | | | | | -------------------------------------------------------------------------------- | Income tax relating to | - | - | - | - | - | | components of other | | | | | | | comprehensive income | | | | | | -------------------------------------------------------------------------------- | Other comprehensive | 15 | 6 | 10 | -4 | -35 | | income, | | | | | | | net of tax | | | | | | -------------------------------------------------------------------------------- | Total comprehensive | 131 | 65 | 393 | 381 | 893 | | income | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit attributable to: | | | | | | | Equity holders of the | | | | | | -------------------------------------------------------------------------------- | parent company | 116 | 59 | 383 | 385 | 928 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive | | | | | | | income attributable to: | | | | | | -------------------------------------------------------------------------------- | Equity holders of the | 131 | 65 | 393 | 381 | 893 | | parent company | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share | 0.01 | 0.00 | 0.03 | 0.03 | 0.07 | | (diluted), EUR | | | | | | -------------------------------------------------------------------------------- | Earnings per share, EUR | 0.01 | 0.00 | 0.03 | 0.03 | 0.08 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (EUR 1,000) | Sept 30 | Sept 30 | Dec 31 | | | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- | Assets | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Tangible assets | 163 | 256 | 226 | -------------------------------------------------------------------------------- | Other intangible assets | 1,258 | 466 | 1,078 | -------------------------------------------------------------------------------- | Trade and other receivables | 5 | 5 | 5 | -------------------------------------------------------------------------------- | Deferred tax assets | 464 | 435 | 539 | -------------------------------------------------------------------------------- | Total non-current assets | 1,890 | 1,162 | 1,848 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Trade and other receivables | 2,238 | 2,455 | 2,483 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 2,042 | 1,530 | 1,716 | -------------------------------------------------------------------------------- | Total current assets | 4,280 | 3,985 | 4,199 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total assets | 6,170 | 5,147 | 6,047 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity and liabilities | Sept 30 | Sept 30 | Dec 31 | | | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | | -------------------------------------------------------------------------------- | Share capital | 1,359 | 1,359 | 1,359 | -------------------------------------------------------------------------------- | Share premium | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Reserve fund | 21 | 21 | 21 | -------------------------------------------------------------------------------- | Invested non-restricted | 371 | 235 | 360 | | equity fund | | | | -------------------------------------------------------------------------------- | Translation differences | -95 | -74 | -105 | -------------------------------------------------------------------------------- | Treasure shares | -209 | -101 | -125 | -------------------------------------------------------------------------------- | Retained earnings | 1,237 | 804 | 1,222 | -------------------------------------------------------------------------------- | Equity attributable to | 2,684 | 2,244 | 2,732 | | shareholders of the | | | | | parent company | | | | -------------------------------------------------------------------------------- | Total equity | 2,684 | 2,244 | 2,732 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 974 | 182 | 79 | -------------------------------------------------------------------------------- | Total non-current liabilities | 974 | 182 | 79 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Accounts payables and other | 2,286 | 2,642 | 3,133 | | payables | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 226 | 79 | 103 | -------------------------------------------------------------------------------- | Total current liabilities | 2,512 | 2,721 | 3,236 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total liabilities | 3,486 | 2,903 | 3,315 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity and liabilities | 6,170 | 5,147 | 6,047 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW | | | | | | STATEMENT | | | | | -------------------------------------------------------------------------------- | (EUR 1,000) | 1.1.-30.9 | 1.1.-30.9. | 1.1.-31.12 | | | | 2009 | 2008 | 2008 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from operating | | | | | | activities | | | | | -------------------------------------------------------------------------------- | Profit for the period | 383 | 385 | 928 | | -------------------------------------------------------------------------------- | Adjustments for the profit | | | | | -------------------------------------------------------------------------------- | Depreciation | 335 | 208 | 301 | | -------------------------------------------------------------------------------- | Non-cash transactions | -58 | 92 | 83 | | -------------------------------------------------------------------------------- | Changes in working capital | | | | | -------------------------------------------------------------------------------- | Changes in trade and | 245 | 98 | -67 | | | other receivables | | | | | -------------------------------------------------------------------------------- | Changes in accounts payable and | -461 | 184 | 275 | | | other liabilities | | | | | -------------------------------------------------------------------------------- | Interest expense and other | -21 | -4 | -10 | | | financial expenses | | | | | -------------------------------------------------------------------------------- | Interest income and other | 8 | 17 | 38 | | | financial income | | | | | -------------------------------------------------------------------------------- | Income taxes paid | -32 | -25 | -30 | | -------------------------------------------------------------------------------- | Net cash from operating | 399 | 955 | 1,518 | | | activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from investing | | | | | | activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Purchases of tangible assets | -27 | -36 | -54 | | -------------------------------------------------------------------------------- | Purchases of intangible assets | -622 | -125 | -382 | | -------------------------------------------------------------------------------- | Net cash used in investing | -649 | -161 | -436 | | | activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from financing | | | | | | activities | | | | | -------------------------------------------------------------------------------- | Proceeds from issuance of | 11 | 4 | 4 | | | share capital | | | | | -------------------------------------------------------------------------------- | Proceeds from long-term loans | 1,131 | 0 | 0 | | -------------------------------------------------------------------------------- | Repayments of financial leases | -113 | -108 | -187 | | -------------------------------------------------------------------------------- | Purchases of own shares | -84 | -37 | -60 | | -------------------------------------------------------------------------------- | Dividends paid | -368 | -368 | -368 | | -------------------------------------------------------------------------------- | Net cash used in financing | 576 | -509 | -611 | | | activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net change in cash and cash | 326 | 285 | 471 | | | equivalents | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalents in | 1,716 | 1,245 | 1,245 | | | the beginning of period | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents in | 2,042 | 1,530 | 1,716 | | | the end of period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY | | JANUARY 1 - SEPTEMBER 30, 2009 | -------------------------------------------------------------------------------- |(EUR 1,000)| Share | Reserve| Trans- | Trea- |Invested|Retained| Total | | | capital| fund | lation | sury | non- |earnings| | | | | | differ. | shares |resstr. | | | | | | | | | equity | | | | | | | | | fund | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share- | 1,359 | 21 | -105 | -125 | 360 | 1,222 | 2,732 | | holders' | | | | | | | | | equity | | | | | | | | | Jan 1, | | | | | | | | | 2009 | | | | | | | | -------------------------------------------------------------------------------- | Shares | | | | | 11 | | 11 | | issued | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | | -368 | -368 | | paid | | | | | | | | -------------------------------------------------------------------------------- | Purchase | | | | -84 | | | -84 | | of own | | | | | | | | | shares | | | | | | | | -------------------------------------------------------------------------------- | Compre- | | | 10 | | | 383 | 393 | | hensive | | | | | | | | | income | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in | 0 | 0 | 10 | -84 | 11 | 15 | -48 | | share- | | | | | | | | | holders' | | | | | | | | | equity | | | | | | | | | 1-9 | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share- | 1,359 | 21 | -95 | -209 | 371 | 1,237 | 2,684 | | holders' | | | | | | | | | equity | | | | | | | | | Sept 30, | | | | | | | | | 2009 | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY | | JANUARY 1 - SEPTEMBER 30, 2008 | -------------------------------------------------------------------------------- |(EUR 1,000)| Share | Reserve| Trans- | Trea- |Invested|Retained| Total | | | capital| fund | lation | sury | non- |earnings| | | | | | differ. | shares |resstr. | | | | | | | | | equity | | | | | | | | | fund | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share- | 1,359 | 253 | -70 | -65 | 0 | 787 | 2,264 | | holders' | | | | | | | | | equity | | | | | | | | | Jan 1, | | | | | | | | | 2008 | | | | | | | | -------------------------------------------------------------------------------- | Shares | | | | | 3 | | 3 | | issued | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | | -368 | -368 | | paid | | | | | | | | -------------------------------------------------------------------------------- | Purchase | | | | -36 | | | -36 | | of own | | | | | | | | | shares | | | | | | | | -------------------------------------------------------------------------------- | Compre- | | | -4 | | | 385 | 381 | | hensive | | | | | | | | | income | | | | | | | | -------------------------------------------------------------------------------- | Transfer | | -232 | | | 232 | | | | of | | | | | | | | | Share | | | | | | | | | premium | | | | | | | | | fund | | | | | | | | -------------------------------------------------------------------------------- | Change in | 0 | -232 | -4 | -36 | 235 | 17 | -20 | | share- | | | | | | | | | holders' | | | | | | | | | equity | | | | | | | | | 1-9 | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share- | 1,359 | 21 | -74 | -101 | 235 | 804 | 2,244 | | holders' | | | | | | | | | equity | | | | | | | | | Sept 30, | | | | | | | | | 2008 | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY | | JANUARY 1 - DECEMBER 31, 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- |(EUR 1,000)| Share | Reserve| Trans- | Trea- |Invested|Retained| Total | | | capital| fund | lation | sury | non- |earnings| | | | | | differ. | shares |resstr. | | | | | | | | | equity | | | | | | | | | fund | | | -------------------------------------------------------------------------------- | Share- | 1,359 | 253 | -70 | -65 | 0 | 787 | 2,264 | | holders' | | | | | | | | | equity | | | | | | | | | Jan 1, | | | | | | | | | 2008 | | | | | | | | -------------------------------------------------------------------------------- | Shares | | | | | 3 | | 3 | | issued | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | | -368 | -368 | | paid | | | | | | | | -------------------------------------------------------------------------------- | Purchase | | | | -60 | | | -60 | | of own | | | | | | | | | shares | | | | | | | | -------------------------------------------------------------------------------- | Compre- | | | -35 | | | 928 | 893 | | hensive | | | | | | | | | income | | | | | | | | -------------------------------------------------------------------------------- | Transfer | | -232 | | | 357 | -125 | 0 | | of share | | | | | | | | | premium | | | | | | | | | fund | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in | 0 | -232 | -35 | -60 | 360 | 435 | 468 | | share- | | | | | | | | | holders' | | | | | | | | | equity | | | | | | | | | 1-12 | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share- | 1,359 | 21 | -105 | -125 | 360 | 1,222 | 2,732 | | holders' | | | | | | | | | equity | | | | | | | | | Dec 31, | | | | | | | | | 2008 | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP COMMITMENTS AND CONTINGENT | | | | | LIABILITIES | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (EUR 1,000) | Sept 30 | Sept 30 | Dec 31 | | | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Business mortgage | 1,337 | 0 | 0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current lease liabilities | | | | -------------------------------------------------------------------------------- | Liabilities maturing during one year | 146 | 339 | 284 | -------------------------------------------------------------------------------- | Liabilities maturing 2-5 years | 33 | 33 | 23 | -------------------------------------------------------------------------------- | Total | 179 | 372 | 307 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total commitments and contingent | 1,516 | 372 | 307 | | liabilities | | | | -------------------------------------------------------------------------------- | GROUP INTANGIBLE AND TANGIBLE ASSETS | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in intangible | | | | | | assets | | | | | -------------------------------------------------------------------------------- | (EUR 1,000) | Sept 30 | Sept 30 | Dec 31 | | | | 2009 | 2008 | 2008 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Acquisition cost Jan 1 | 2,528 | 1,744 | 1,744 | | -------------------------------------------------------------------------------- | Increase | 424 | 125 | 784 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in tangible assets | | | | | -------------------------------------------------------------------------------- | (EUR 1,000) | Sept 30 | Sept 30 | Dec 31 | | | | 2009 | 2008 | 2008 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Acquisition cost Jan 1 | 1,099 | 1,045 | 1,045 | | -------------------------------------------------------------------------------- | Increase | 27 | 36 | 54 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CHANGE IN GROUP INTEREST BEARING LOANS | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (EUR 1,000) | Sept 30 | Sept 30 | Dec 31 | | | | 2009 | 2008 | 2008 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Interest bearing loans | 182 | 369 | 369 | | | Jan 1 | | | | | -------------------------------------------------------------------------------- | Withdrawals | 1,131 | 0 | 0 | | -------------------------------------------------------------------------------- | Repayments | -113 | -108 | -187 | | -------------------------------------------------------------------------------- | Interest bearing | 1,200 | 261 | 182 | | | loans September 30/ | | | | | | December 31 | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY BUSINESS SEGMENT (primary segments) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | July 1 - September 30, 2009 | | | | | | -------------------------------------------------------------------------------- | (EUR 1,000) | Software | Service | Software| Elimi- | Not | Group | | | Sales | & Solu-| Sales | nations | allo- | Total | | | Interna- | tions | Finland | | cated | | | | tional | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INCOME STATEMENT INFORMATION | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 917 | 174 | 410 | 0 | 0 | 1,501 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | 165 | -24 | 109 | 0 | -91 | 159 | | of segment | | | | | | | -------------------------------------------------------------------------------- | Operating profit | | | | | | 159 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finance income and expenses | | | | -10 | -10 | -------------------------------------------------------------------------------- | Income tax expense | | | | | -33 | -33 | -------------------------------------------------------------------------------- | Profit for the | 165 | -24 | 109 | 0 | -134 | 116 | | period | | | | | | | -------------------------------------------------------------------------------- | Profit for the | | | | | | 116 | | period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other information | | | | | | | -------------------------------------------------------------------------------- | Depreciation | 61 | 11 | 54 | 0 | 0 | 126 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | January 1 - September 30, 2009 | | | | | -------------------------------------------------------------------------------- | (EUR 1,000) | Software | Service | Software| Elimi- | Not | Group | | | Sales | & Solu-| Sales | nations | allo- | Total | | | Interna- | tions | Finland | | cated | | | | tional | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INCOME STATEMENT INFORMATION | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 2,664 | 606 | 1 547 | 0 | 0 | 4,817 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | 254 | -21 | 525 | | -272 | 486 | | of segment | | | | | | | -------------------------------------------------------------------------------- | Operating profit | | | | | | 486 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finance income and expenses | | | | -9 | -9 | -------------------------------------------------------------------------------- | Income tax expense | | | | | -94 | -94 | -------------------------------------------------------------------------------- | Profit for the | 254 | -21 | 525 | 0 | -375 | 383 | | period | | | | | | | -------------------------------------------------------------------------------- | Profit for the | | | | | | 383 | | period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other information | | | | | | | -------------------------------------------------------------------------------- | Depreciation | 175 | 31 | 129 | 0 | 0 | 335 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | July 1 - September 30, 2008 | | | | | | -------------------------------------------------------------------------------- | (EUR 1,000) | Software | Service | Software| Elimi- | Not | Group | | | Sales | & Solu-| Sales | nations | allo- | Total | | | Interna- | tions | Finland | | cated | | | | tional | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INCOME STATEMENT INFORMATION | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 1,009 | 184 | 292 | 0 | 0 | 1,485 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | 122 | -34 | 37 | 0 | -62 | 63 | | of segment | | | | | | | -------------------------------------------------------------------------------- | Operating profit | | | | | | 63 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finance income and expenses | | | | 12 | 12 | -------------------------------------------------------------------------------- | Income tax expense | | | | | -16 | -16 | -------------------------------------------------------------------------------- | Profit for the | 122 | -34 | 37 | 0 | -66 | 59 | | period | | | | | | | -------------------------------------------------------------------------------- | Profit for the | | | | | | 59 | | period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other information | | | | | | | -------------------------------------------------------------------------------- | Depreciation | 47 | 9 | 14 | 0 | 0 | 69 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | January 1 - September 30, 2008 | | | | | -------------------------------------------------------------------------------- | (EUR 1,000) | Software | Service | Software| Elimi- | Not | Group | | | Sales | & Solu-| Sales | nations | allo- | Total | | | Interna- | tions | Finland | | cated | | | | tional | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INCOME STATEMENT INFORMATION | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 3,536 | 643 | 1,275 | 0 | 0 | 5,454 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | 458 | 30 | 333 | | -343 | 478 | | of segment | | | | | | | -------------------------------------------------------------------------------- | Operating profit | | | | | | 478 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finance income and expenses | | | | 15 | 15 | -------------------------------------------------------------------------------- | Income tax expense | | | | | -108 | -108 | -------------------------------------------------------------------------------- | Profit for the | 458 | 30 | 333 | 0 | -436 | 385 | | period | | | | | | | -------------------------------------------------------------------------------- | Profit for the | | | | | | 385 | | period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other information | | | | | | | -------------------------------------------------------------------------------- | Depreciation | 136 | 24 | 48 | 0 | 0 | 208 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED INCOME STATEMENT PER QUARTER | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (EUR 1,000) | 1-3/ | 1-3/ | 4-6/ | 4-6/ | 7-9/ | 7-9/ | 10-12/ | | | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 1,628 |1,754 | 1,688 | 2,215 | 1,501 | 1,485 | 2,058 | -------------------------------------------------------------------------------- | Other operating | 7 | 11 | 25 | 21 | 3 | 7 | 12 | | income | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Material and | 112 | 259 | 117 | 273 | 134 | 225 | 118 | | services | | | | | | | | -------------------------------------------------------------------------------- | Employee benefits | 895 | 943 | 890 | 986 | 748 | 733 | 991 | | expenses | | | | | | | | -------------------------------------------------------------------------------- | Depreciation | 114 | 70 | 95 | 69 | 126 | 69 | 93 | -------------------------------------------------------------------------------- | Other operating | 371 | 402 | 427 | 584 | 337 | 402 | 453 | | expenses | | | | | | | | -------------------------------------------------------------------------------- | Operating profit | 143 | 91 | 184 | 324 | 159 | 63 | 415 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income | 6 | -2 | -5 | 6 | -10 | 12 | 19 | | and expenses | | | | | | | | -------------------------------------------------------------------------------- | Profit before tax | 149 | 89 | 179 | 330 | 149 | 75 | 434 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income tax | -27 | -11 | -34 | -81 | -33 | -16 | 109 | | expenses | | | | | | | | -------------------------------------------------------------------------------- | Profit for the | 122 | 78 | 145 | 249 | 116 | 59 | 543 | | period | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP KEY FIGURES | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (EUR 1,000) | 1-9/ | 1-9/ | 1-6/ | 1-6/ | 1-3/ | 1-3/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- | Net sales | 4,817| 5,454 | 3,316 | 3,969 | 1,628 | 1,754 | 7,512 | -------------------------------------------------------------------------------- | Net sales growth. % | -11.7| 7.7 | -16.5 | 2.9 | -7.2 | 7.3 | 6.4 | -------------------------------------------------------------------------------- | Operating profit | 486 | 478 | 327 | 415 | 143 | 91 | 893 | -------------------------------------------------------------------------------- | % of net sales | 10.1 | 8.8 | 9.9 | 10.5 | 8.8 | 5.2 | 11.9 | -------------------------------------------------------------------------------- | Profit or loss | 477 | 493 | 328 | 419 | 149 | 90 | 927 | | before tax | | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 9.9 | 9.0 | 9.9 | 10.6 | 9.2 | 5.1 | 12.3 | -------------------------------------------------------------------------------- | Profit for the | 383 | 385 | 267 | 327 | 122 | 78 | 928 | | period | | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 8.0 | 7.1 | 8.1 | 8.2 | 7.5 | 4.5 | 12.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on equity,% | 18.9 | 22.8 | 20.2 | 29.2 | 18.6 | 14.8 | 37.1 | -------------------------------------------------------------------------------- | Return on | 19.7 | 25.8 | 19.8 | 32.8 | 21.4 | 14.7 | 33.6 | | investment,% | | | | | | | | -------------------------------------------------------------------------------- | Interest bearing |1,200 | 261 | 1,313 | 285 | 182 | 369 | 182 | | liabilities | | | | | | | | -------------------------------------------------------------------------------- | Cash and cash |2,042 | 1,530 | 2,105 | 1,397 | 1,163 | 1,077 | 1,716 | | equivalents | | | | | | | | -------------------------------------------------------------------------------- | Net liabilities | -842 |-1,269 | -792 | -1,112 | -981 | -708 |-1,534 | -------------------------------------------------------------------------------- | Equity |2,684 | 2,244 | 2,568 | 2,214 | 2,495 | 1,968 | 2,732 | -------------------------------------------------------------------------------- | Gearing,% |-31.4 | -56.5 | -30.8 | -50.2 | -39.3 | -36.0 | -56.1 | -------------------------------------------------------------------------------- | Equity ratio,% | 50.9 | 55.1 | 51.1 | 53.8 | 66.2 | 53.1 | 54.9 | -------------------------------------------------------------------------------- | Total balance sheet |6,170 | 5,147 | 6,599 | 5,926 | 5,501 | 5,158 | 6,047 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments in | 649 | 161 | 559 | 91 | 96 | 37 | 837 | | non-current assets | | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 13.5 | 3.0 | 16.9 | 2.3 | 5.9 | 2.1 | 11.1 | -------------------------------------------------------------------------------- | Research and | 884 | 1,142 | 575 | 770 | 308 | 384 | 1,540 | | development | | | | | | | | | expenses | | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 18.4 | 20.9 | 17.3 | 19.4 | 18.9 | 21.9 | 20.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of | 56 | 53 | 56 | 53 | 57 | 55 | 53 | | personnel | | | | | | | | -------------------------------------------------------------------------------- | Personnel at the | 55 | 58 | 55 | 58 | 55 | 58 | 58 | | beginning of period | | | | | | | | -------------------------------------------------------------------------------- | Personnel at the | 59 | 54 | 56 | 54 | 57 | 52 | 55 | | end of period | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, | 0.03 | 0.03 | 0.02 | 0.03 | 0.01 | 0.01 | 0.08 | | € | | | | | | | | -------------------------------------------------------------------------------- | Earnings per share | 0.03 | 0.03 | 0.02 | 0.03 | 0.01 | 0.01 | 0.07 | | (diluted), € | | | | | | | | -------------------------------------------------------------------------------- | Equity per share. € | 0.22 | 0.18 | 0.21 | 0.18 | 0.20 | 0.16 | 0.22 | -------------------------------------------------------------------------------- The Company has re-defined the booking principles of deferred revenues as of July 1, 2009. The Company has also revised accordingly the Equity ratio figures for previous periods. -------------------------------------------------------------------------------- | MAJOR SHAREHOLDERS 30.9.2009 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Number of | Percentage of | | | shares | shares and | | | | votes | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Ulkomarkkinat Oy | 1,600,000 | 12.86 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Jouko Pelkonen | 419,000 | 3.37 % | -------------------------------------------------------------------------------- | Pohjolan Rahoitus Oy | 734,150 | 5.90 % | -------------------------------------------------------------------------------- | Electrosale Oy | 200,000 | 1.61 % | -------------------------------------------------------------------------------- | Total | 1,353,150 | 10.87 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Vesa-Pekka Leskinen | 851,400 | 6.84 % | -------------------------------------------------------------------------------- | Kauppamainos Oy | 475,170 | 3.82 % | -------------------------------------------------------------------------------- | Total | 1,326,570 | 10.66 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Alesco S.A | 1,300,000 | 10.45 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Autocarrera Oy Ab | 1,245,817 | 10.01 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Kari Junkkonen | 512,016 | 4.11 % | -------------------------------------------------------------------------------- | Fortel Invest Oy | 425,326 | 3.42 % | -------------------------------------------------------------------------------- | SR Fides New Media | 341,800 | 2.75 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Päivi Marttila | 292,972 | 2.35 % | -------------------------------------------------------------------------------- | Edina Oy | 33,900 | 0.27 % | -------------------------------------------------------------------------------- | Total | 326,872 | 2.63 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Asko Piekkola | 316,438 | 2.54 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Jari Jaakkola | 220,000 | 1.77 % | -------------------------------------------------------------------------------- | Value FM Oy | 30,000 | 0.24 % | -------------------------------------------------------------------------------- | Total | 250,000 | 2.01 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Esa Pääkkönen | 246,054 | 1.98 % | -------------------------------------------------------------------------------- | Veli-Mikko Leskinen | 232,530 | 1.87 % | -------------------------------------------------------------------------------- | Matti Kanninen | 197,601 | 1.59 % | -------------------------------------------------------------------------------- | Tony Virtanen | 172,112 | 1.38 % | -------------------------------------------------------------------------------- | Teemu Lehto | 153,304 | 1.23 % | -------------------------------------------------------------------------------- | Janne Laakso | 140,287 | 1.13 % | -------------------------------------------------------------------------------- | Kai-Erik Becker | 140,000 | 1.12 % | -------------------------------------------------------------------------------- | Other shareholders | 2,164,986 | 17.40 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total | 12,444,863 | 100.0 % | -------------------------------------------------------------------------------- CALCULATION OF KEY INDICATORS: Return on equity (ROE), % (counted on yearly level): Profit for the period x 100 ________________________________________________ Shareholders' equity + minority interest (average) Return on capital employed (ROCE), % (counted on yearly level): 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 the period attributable to parent company shareholders _________________________________________________________________ Adjusted number of shares over the financial year (average) Equity per share, Euro: Profit for the period attributable to parent company shareholders _________________________________________________________________ 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 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 - deferred revenue |
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