Tecnotree Oyj - Financial Statement Release

Tecnotree Corporation Financial Review 1 January – 31 December 2013 (unaudited)

Tecnotree Corporation
Financial Review
5th January, 2014 at 8.30 am EET

Tecnotree is a global supplier of telecom IT solutions, providing products and
services for charging, billing, customer care, and messaging and content
services. The company's product portfolio comprises virtually the full range of
business management systems for telecom operators, with standard solutions for
fixed networks, mobile services and broad band and for managing subscriptions,
services and cash flows for prepaid and post-paid customers. Tecnotree has a
strong footing especially in developing markets. 

Significant improvement in profitability in 2013

Fourth quarter

  -- Fourth quarter net sales were EUR 20.0 (22.4) million. 
  -- The adjusted operating result for the quarter was EUR 3.6 (-0.3) million
     and the result was EUR 0.5 (-6.3) million.
  -- The order book at the end of the period stood at EUR 45.0 (31 December
     2012: 54.2) million.
  -- Fourth quarter cash flow after investments was EUR -0.3 (5.5) million.
  -- Earnings per share were EUR 0.00 (-0.05).
  -- Tecnotree announced new EUR 7.7 million orders received in the Middle East
     region

Full year 2013

  -- Net sales for the review period increased 0.7 per cent from the
     corresponding period in the previous year to EUR 73.9 (73.4) million.
  -- The adjusted operating result improved EUR 8.2 million from the previous
     year to EUR 3.3 (-4.9) million. The operating result was EUR 1.6 (-12.4)
     million and the result for the period EUR -2.5 (‑17.0) million.
  -- Cash flow after investments for the review period was EUR -7.3 (-0.8)
     million and the company's cash and cash equivalents were EUR 6.6 (31
     December 2012: 11.3) million.
  -- Earnings per share were EUR -0.02 (-0.16).
  -- On 30 August 2013 Tecnotree reached agreement with its bank on renewing its
     loan financing and on additional financing of EUR 5 million. The agreement
     is in force until 2018.



KEY FIGURES                                10-12/  10-12/  1-12/  1-12/
                                             2013    2012   2013   2012
Net sales, MEUR                              20.0    22.4   73.9   73.4
Adjusted operating result, MEUR 1             3.6    -0.3    3.3   -4.9
Operating result, MEUR                        3.6    -3.7    1.6  -12.4
Result before taxes, MEUR                     3.7    -3.1    4.1  -13.7
Result for the period                         0.5    -6.3   -2.5  -17.0
Earnings per share, basic, EUR 2, 3          0.00   -0.05  -0.02  -0.16
Order book, MEUR                                            45.0   54.2
Cash flow after investments, MEUR            -0.3     5.5   -7.3   -0.8
Change in cash and cash equivalents, MEUR    -0.3     7.8   -3.8    4.8
Cash and cash equivalents, MEUR                              6.6   11.3
Equity ratio % 3                                            30.3   40.2
Net gearing % 3                                            113.4   50.0
Personnel at end of period                                 1,059   1116


1 Adjusted operating result = operating result before R & D capitalisation,
amortisation of this and one-time costs.“Result analysis” is presented in the
financial report. 
2 The key figure has been  adjusted for the comparative periods to reflect the
share issue. 
3 The key figure has been corrected for the comparative periods, see note 4 in
the financial report. 


Unless otherwise stated, all figures presented below are for the reviewed
period 1-12/2013 and the figures for comparison are for the corresponding
period 1-12/2012. 

CEO Ilkka Raskinen:
“The fourth quarter operating result improved considerably from the previous
year to EUR 3.6 (-3.7) million. This is evidence of the increasing efficiency
of the company's operating activities as planned. The company's dependence on
long-term projects has declined significantly: in 2012 this revenue was EUR
31.8 million and in 2013 EUR 23.9 million. This means that ongoing service
agreements and licence sales are playing an increasingly important role in net
sales, which in turn improves profitability and reduces the amount of working
capital tied up. 
We expect net sales to continue to increase in 2014 and the profitability of
operations to improve. A clear goal for 2014 is to improve the cash flow. This
will be achieved by reducing working capital and raising operating efficiency. 
The developing markets in Africa, South America and the Middle East continue to
grow and remain the geographical focus for our growth.” 

Events after the end of period
No significant events have occurred after the end of the period.

Prospects in 2014
Tecnotree estimates that its net sales and operating result will improve from
2013. 
Variations in the quarterly figures will be considerable.

Proposal concerning the result
The Board of Directors proposes to the Annual General Meeting, that no dividend
be paid for the financial year ended 31 December 2013, and that the parent
company's loss for the financial year, EUR 2,138,056.64, be covered by
non-restricted equity reserves. In addition, losses for previous periods are
proposed to be covered by EUR 1,690,237.98 of the non-restricted equity
reserves. 

Financial information
Tecnotree is holding a conference for analysts, investors and the media to
announce its fourth quarter and full year results on 5th February 2014 at 10.00
am in the Bulsa conference room at the Scandic Hotel Simonkenttä, Simonkatu 9,
Helsinki. The financial review  will be presented by CEO Ilkka Raiskinen and
the conference will be held in Finnish. The material to be presented at the
press conference will be available at www.tecnotree.com. 

Tecnotree's financial statements and report of the Board of Directors will
become publically available during week 10 at www.tecnotree.com. 


TECNOTREE CORPORATION

Board of Directors

FURTHER INFORMATION
Ilkka Raiskinen, CEO, tel. +358 (0)45 311 3113
Tuomas Wegelius, CFO, tel. +358 400 433 228

DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main media
www.tecnotree.com

About Tecnotree
Tecnotree is a global provider of telecom IT solutions for the management of
products, customers and revenue. Tecnotree helps communications service
providers to transform their business towards a marketplace of digital
services. Tecnotree empowers service providers to monetise on service bundles,
provide personalised user experiences and augment value throughout the customer
lifecycle. With over 1100 telecom experts, Tecnotree serves more than 100
service providers in over 70 countries. Tecnotree is listed on the main list of
NASDAQ OMX Helsinki with the trading code TEM1V. For more information on
Tecnotree, please visit www.tecnotree.com

Attachments:

Tecnotree 1-12 2013 Financial Review.pdf

Tecnotree Financial Review 1-12 2013 presentation.pdf