2012-10-25 08:30:01 CEST
2012-10-25 08:30:09 CEST
REGULATED INFORMATION
QPR Software - Interim report (Q1 and Q3)
QPR SOFTWARE’S NET SALES GREW 24%, OPERATING PROFIT INCREASED 22% IN JANUARY - SEPTEMBER
QPR SOFTWARE PLC STOCK EXCHANGE RELEASE 25 OCTOBER, 2012 AT 9.30 AM
INTERIM REPORT 1 JANUARY - 30 SEPTEMBER, 2012
QPR SOFTWARE'S NET SALES GREW 24%, OPERATING PROFIT INCREASED 22% IN JANUARY -
SEPTEMBER
Summary
January - September 2012
-- Net sales EUR 6,628 thousand (January - September 2011: 5,324), growth
24.5%.
-- Net sales growth was achieved through strong organic business growth
(14.0%) and the consolidation of Nobultec Ltd.
-- Recurring revenue (software rentals and maintenance services) grew 18.3%.
-- Operating profit EUR 594 thousand (488), growth 21.7%.
-- Operating margin 9.0% (9.2).
-- Cash flow from operating activities was EUR 1,862 thousand (1,046), growth
78.0%.
-- Profit before taxes EUR 562 thousand (462), growth 21.6%.
-- Profit for the period EUR 425 thousand (360), growth 18.1%.
-- Earnings per share EUR 0.03 (0.03).
July - September 2012
-- Net sales EUR 2,011 thousand (July - September 2011: 1,772), growth 13.5%.
-- Net sales growth was achieved mainly through organic business growth, which
was 10.6%.
-- Recurring revenue (software rentals and maintenance services) grew 23.7%.
-- Operating profit EUR 165 thousand (152), growth 8.6%.
-- Operating margin 8.2% (8.6).
-- Cash flow from operating activities was EUR 230 thousand (64), increase
259.4%.
-- Profit before taxes EUR 169 thousand (150), growth 12.7%.
-- Profit for the period EUR 152 thousand (113), growth 34.5%.
-- Earnings per share EUR 0.01 (0.01).
Outlook 2012
In July, based on good first half of the year, QPR Software upgraded its
estimate for 2012. Now the Company keeps this estimate intact and forecasts its
net sales to grow approximately 18 - 24% in 2012. Software license net sales in
the current quarter will determine the exact growth inside the given forecast
range. QPR's software rental and professional service net sales are estimated
to show continued strong growth, especially in enterprise architecture
services. The Company estimates its operating profit in euros to improve
slightly from the previous year (2011: EUR 755 thousand), despite increasing
outlays in its growth businesses.
In 2012, QPR aims to make significant investments in the development of its new
software products QPR ProcessAnalyzer and QPR EnterpriseArchitect, as well as
related services. This will, in the short term, have a negative impact on
profitability. The Company believes that these outlays are well justified,
since these businesses have good growth prospects.
KEY FIGURES
(EUR 1,000) July - July - Change Jan - Jan - Change Jan -
Sept, Sept, , % Sept, Sept, , % Dec,
2012 2011 2012 2011 2011
Net sales 2,011 1,772 13.5 6,628 5,324 24.5 7,539
Operating 165 152 8.6 594 488 21.7 755
profit
% of net sales 8.2 8.6 9.0 9.2 10.0
Profit before 169 150 12.7 562 462 21.6 705
tax
Profit for the 152 113 34.5 425 360 18.1 521
period
% of net sales 7.6 6.4 6.4 6.8 6.9
Earnings per 0.03 0.03 0.0 0.04
share, EUR
EPS (diluted), 0.03 0.03 0.0 0.04
EUR
Equity per 0.23 0.22 4.5 0.24
share, EUR
Cash flow from 1,862 1,046 78.0 1,261
operating
activities
Cash and cash 1,797 913 96.8 1,020
equivalents
Free cash flow 1,464 -124 570
Net liabilities -1,457 -347 319.9 -454
Gearing, % -51.2 -12.4 -15.3
Equity ratio, % 53.9 52.7 44.2
Return on 19.5 17.5 18.4
equity, %
Return on 23.5 19.0 21.5
investment, %
REPORTING
This interim report complies with requirements of IAS 34 ”Interim Financial
Reporting”. Starting from the beginning of the reporting period, the Group has
applied certain new or revised IFRS standards and IFRIC interpretations as
described in the Consolidated Financial Statements 2011. The implementation of
these new and revised requirements have not materially impacted the reported
figures. For all other parts, the accounting and valuation principles are the
same as they were in the 2011 financial statements. This interim report is
unaudited.
QPR Software's business operations consist of software sales and professional
services sales. The Company reports income for products and services as
follows: software license sales, software maintenance services, software
rentals and professional services.
QPR reports the following business segments: Software Sales International
(software license and rental sales, maintenance and professional services sales
outside of Finland) and Business Operations Finland (software license and
rental sales, maintenance and professional services sales in Finland).
NET SALES
QPR Software's consolidated net sales in July - September were EUR 2,011
thousand (1,772) and grew 13.5% compared to the equivalent period in the
previous year. Organic net sales growth was 10.6%. Net sales growth was
accelerated especially by software rentals offered by QPR (+99.4%) and
professional services (+25.8%). New software sales are increasingly made
through software rentals rather than perpetual license sales, which in
July-September was reflected as clear decline in software license sales.
Business operations in Finland represented 60.0% and international operations
40.0% of net sales.
Consolidated net sales in January - September were EUR 6,628 thousand (5,324),
and grew 24.5%. Organic business growth was 14.0%, and in addition the growth
was accelerated by the consolidation of Nobultec Ltd. Business operations in
Finland represented 58.1% and international operations 41.9% of net sales.
Net sales by business segments
Consolidated net sales by business segments (EUR 1,000):
July - July - Change Jan - Jan - Change Jan -
Sept, Sept, , % Sept, Sept, , % Dec,
2012 2011 2012 2011 2011
Software 804 845 -4.9 2,778 2,761 0.6 3,836
Sales
Internationa
l
Business 1,207 927 30.2 3,850 2,563 50.2 3,703
Operations
Finland
--------------------------------------------------------------------------------
Total 2,011 1,772 13.5 6,628 5,324 24.5 7,539
QPR Software's net sales in Finland rose 30.2% in July - September. Growth was
mainly due to organic growth, which was 26.0%. Net sales were strong especially
in software aimed at process and enterprise architecture development and in
related professional services. QPR continued to strengthen its personnel
resources in these businesses during the reporting period.
In January - September, net sales in Finland rose 50.2% compared to the
equivalent period in the previous year. Strong growth was due to organic
business growth in QPR's software and professional services net sales and the
consolidation of Nobultec Ltd as of August 2011. Fastest sales growth was
achieved in software aimed at process and enterprise architecture development
and in related professional services.
International net sales decreased in July - September by 4.9% from the
previous year, which was mainly due to decrease in software license net sales
in international channel sales. The number of new license deals through channel
partners was on the same level as last year, but the average deal size was
smaller.
In January - September, international net sales increased by 0.6%. Business did
not develop in the same way in different markets. Net sales grew significantly
in many markets, such as Germany and Far Eastern countries, but developed
unfavorably in Southern Europe and Russia.
Net sales by product groups
Consolidated net sales by product groups (EUR 1,000):
July - July - Change Jan - Jan - Change Jan -
Sept, Sept, , % Sept, Sept, , % Dec,
2012 2011 2012 2011 2011
Software 247 354 -30.2 1,241 1,257 -1.3 1,822
license
sales
Software 844 779 8.3 2,447 2,371 3.2 3,181
maintenance
services
Software 315 158 99.4 866 429 101.9 606
rentals
Professional 605 481 25.8 2,074 1,267 63.7 1,930
services
--------------------------------------------------------------------------------
Total 2,011 1,772 13.5 6,628 5,324 24.5 7,539
Software license net sales showed a clear decline in July - September (-30.2%),
but on the other hand software rental net sales increased rapidly (+99.4%). New
software sales are increasingly made through subscription based rentals, rather
than perpetual license sales. Furthermore, software license sales were
negatively affected by the weak new sales development in Southern Europe.
Recurring revenue (including net sales from software maintenance services and
software rentals) in July-September grew 23.7%. New software subscriptions
received by QPR showed strong increase compared to the equivalent period last
year. Professional service net sales increased by 25.8%. The growth in
professional service net sales was due to good success in enterprise
architecture service sales.
Software license net sales decreased slightly (-1.3%) in January - September,
but the other product groups showed increase in net sales. Software rental net
sales (+101.9%) and professional service net sales (+63.7%) grew fastest. The
consolidation of Nobultec accelerated professional service net sales growth.
Recurring revenue (including net sales from software maintenance services and
software rentals) grew 18.3%.
In Finland the Group delivered software and professional services in the
reporting period, among others, to Cargotec, Certia, City of Turku, DNA,
Finland´s Environmental Administration, The Finnish Communication Regulatory
Authority, The Finnish Defence Forces, The Finnish Tax Administration, The
Finnish National Board of Education, HK Ruokatalo, Kemira, Lassila & Tikanoja
Group, Metso Paper, The Ministry of Agriculture and Forestry, The Ministry of
Education, The Ministry of Social Affairs and Health, Nordic Investment Bank,
Onninen Group, Outotec Group, Public Sector ICT Unit at The Ministry of
Finance, Rautaruukki Corporation, Tuko Logistics Cooperative and Vaisala
Corporation.
In international markets the Group delivered software, among others, to Alfa
Bank and Russian Ventures Company in Russia, Diehl AKO and Robert Bosch GmbH in
Germany, Purac Petrochem in Belgium, Highland Council in the UK, Istanbul CPA
in Turkey, Malaysian Administrative Modernisation and Management Planning Unit,
Mine Health and Safety Council and North West Corporation in South Africa,
City of Pessac and Pouey International in France, Pädagogische Hochschule
PHBern and SVA Aargau Sozialversicherung AG in Switzerland, Redecard S.A. in
Brazil, and United Chemical Company in Kazakhstan.
FINANCIAL PERFORMANCE
Operating profit by segment (EUR 1,000):
July - July - Change Jan - Jan - Change Jan -
Sept, Sept, , % Sept, Sept, , % Dec,
2012 2011 2012 2011 2011
Software 103 67 53.7 324 309 4.9 472
Sales
Internationa
l
Business 147 180 -18.3 557 445 25.2 646
Operations
Finland
Not allocated -85 -95 10.5 -287 -266 -7.9 -363
--------------------------------------------------------------------------------
Total 165 152 8.6 594 488 21.7 755
July-September
QPR Software's consolidated operating profit in the third quarter grew 8.6%,
due to growth in net sales, and was EUR 165 thousand (152).
QPR has, in line with its strategy, increased outlays into its new software
products and growth businesses, which led to a 14.6% increase in the Group's
expenses. Majority of the increase is personnel expenses. The Company has
recruited new personnel especially into its Finnish service business, product
development and QPR ProcessAnalyzer business development.
Operating profit in Finland decreased slightly, which was due to outlays
according to the Company's strategy. Operating profit in the international
business grew from last year, thanks to lower level of expenses.
Depreciation and amortization grew to EUR 174 thousand (157), which was mainly
due to the consolidation of Nobultec Ltd and increase in the amortization of
capitalized product development expenses. 38.5% of the Group's depreciation and
amortization arise from corporate and business acquisitions made in 2008 -
2011.
January - September
Group operating profit increased to EUR 594 thousand (488). Operating profit in
Business Operations Finland was higher than in the previous year, and was on a
very high level especially at the beginning of the reporting period. Personnel
recruitments made in the spring and in the summer have increased the level of
expenses in Finland as planned. Operating profit in QPR's international
business was negatively impacted by EUR 202 thousand (87) of credit losses.
Despite this, operating profit in the international operations increased
slightly, thanks to successful cost control.
Depreciation and amortization grew to EUR 510 thousand (421). This was due to
same reasons as in July - September. The Group's expenses increased by 24.9%,
mainly due to the consolidation of Nobultec and outlays in growth businesses.
Net financial expenses in January - September were EUR 32 thousand (26), of
which net interests costs were EUR 11 thousand (19). Currency losses of EUR 21
thousand were the main reason for increased net financial expenses. Profit
before taxes was EUR 562 thousand (462).
Income taxes were EUR 137 thousand (102). Profit for the period was EUR 425
thousand (360) and earnings per share were EUR 0.03 (0.03).
FINANCE AND INVESTMENTS
Cash flow from operating activities developed very favorably in the reporting
period January - September and was EUR 1,862 thousand (1,046). Strong growth
was due to accelerated turnover of receivables, good development in software
subscription sales (software rentals) and improved financial results.
Cash and cash equivalents at the end of the reporting period were EUR 1,797
thousand (913).
The Group's investments in the reporting period January - September totaled EUR
398 thousand (1,170). The majority of the investments were made in product
development.
Interest-bearing liabilities decreased and were EUR 340 thousand (566) at the
end of the reporting period. The gearing ratio was -51.2% (-12.4). Current
liabilities include deferred revenue in total of EUR 1,536 thousand (1,306).
Return on investment rose to 23.5% (19.0).
Equity ratio improved from last year and was 53.9% (52.7). At the end of the
reporting period, the consolidated shareholders' equity stood at EUR 2,854
thousand (2,793). Return on equity was 19.5% (17.5).
The Annual General Meeting on 22 March, 2012 authorized the Board of Directors
to decide on issuing a maximum of 4,000,000 million new share shares, to decide
on conveyance of a maximum of 500,000 own shares held by the Company and to
decide on acquiring a maximum of 250,000 own shares. The authorizations are in
force until the next Annual General Meeting. On March 22, 2012, the Company
issued a stock exchange release on the Board of Directors' decision to start
acquiring own shares through public trading in NASDAQ OMX Helsinki Ltd.
PRODUCT AND SERVICE DEVELOPMENT
Product development expenses in the reporting period January - September were
EUR 1,217 thousand (1,011), representing 18.4% (19.0) of consolidated net
sales. Product development expenses do not include amortization of capitalized
product development expenses.
In the reporting period, product development expenses have been capitalized for
a total amount of EUR 296 thousand (250). The amortization period for
capitalized product development expenses is four years. The amortization of
capitalized product development expenses in the reporting period was EUR 207
thousand (149).
Product development employed 26 persons at the end of the reporting period,
which corresponds to 32.5% of the total personnel (20.5).
In the reporting period, product development activities focused on the
development of a new version of the QPR product family, released in October
2012. Product development activities are especially focused on the QPR
ProcessAnalyzer and QPR EnterpriseArchitect products.
In its new process analysis business, the Company has adopted a more active IPR
strategy than previously. As a result of this, QPR filed patent applications in
respect of five separate inventions in Finland and the USA in the first
quarter. The inventions relate to automated business process discovery based on
processing event data.
The Company aims to significantly increase its personnel resources for service
offering development in 2012. Through service offering development the Company
aims to grow its local business in Finland, and to accelerate its
international software sales by offering complementary service concepts and
solutions to its channel partners.
PERSONNEL
At the end of the reporting period January - September, the Group employed a
total of 80 persons (78). Average number of personnel in the reporting period
was 78 (71). Employee benefit expenses totaled EUR 3,865 thousand (3,233).
The average age of employees is 35.7 years (34.3). Of the employees, 72%
percent have a Master's or Bachelor's degree. 15% (22) of the employees are
women and 85% (78) are men. For incentive purposes, the Company has a bonus
program that covers all employees.
Short-term remuneration of the top management (executive management team of the
Company) consists of salary, fringe benefits and a possible annual bonus based
on net sales and operating profit performance. The maximum annual bonus of
executive management team, including the CEO, is 40%. Long-term remuneration of
the executive management team consists of a share-based incentive plan. In
2011, the Board of Directors of QPR Software resolved on a new share-based
incentive plan for management in years 2011 - 2013. The plan aims to align the
objectives of shareholders and key employees to increase shareholder value, to
commit key employees to the Company and to offer them a competitive reward plan
based on ownership of shares in the Company. Information on share-based
incentive plan was published in a stock exchange release on 25 March, 2011.
SHARES AND TRADING IN THE COMPANY'S SHARES
Trading of shares Jan - Sept, Jan - Sept, Jan - Dec,
2012 2011 2011
--------------------------------------------------------------------------------
Shares traded, pcs 432,002 573,241 1,122,981
Volume, EUR 375,094 478,494 953,083
% of shares 3.5 4.6 9.0
--------------------------------------------------------------------------------
Shares and market capitalization Jan - Sept, Jan - Sept, Jan - Dec,
2012 2011 2011
--------------------------------------------------------------------------------
Total number of shares, pcs 12,444,863 12,444,863 12,444,863
Treasury shares, pcs 274,875 149,429 179,405
Book counter value, EUR 0.11 0.11 0.11
Outstanding shares, pcs 12,169,988 12,295,434 12,265,458
Number of shareholders 593 591 588
Closing price, EUR 0.88 0.78 0.88
Market capitalization, EUR 10,709,589 9,590,439 10,793,603
Acquired treasury shares in 95,470 76,238 132,591
reporting period, pcs
Disposed treasury shares in 0 -249,021 -249,021
reporting period, pcs
Book counter value of treasury 30,236 16,437 19,735
shares, EUR
Total purchase value of treasury 251,083 132,914 16,484
shares, EUR
Treasury shares % of all shares 2.2 1.2 1.4
--------------------------------------------------------------------------------
The Annual General Meeting held on 22 March, 2012 approved the Board's proposal
that a per-share dividend of EUR 0.03 (0.03), a total of EUR 367,314 (362,876),
is paid for the financial year 2011. The dividend was paid to shareholders
entered in the Company's shareholder register, maintained by Euroclear Finland
Oy, on the record date of 27 March, 2012. The dividend payment date was 3
April, 2012.
OTHER EVENTS IN THE REPORTING PERIOD
In the beginning of the reporting period, QPR started the integration of
Nobultec Ltd's business into its Finnish business operations. In connection
with the integration, the Group's service offering, consulting and sales
resources have been strengthened and a process driven operating model, suitable
for the requirements of growing business, has been adopted. The integration
advanced as planned and was finalized in the second quarter.
In June, Jaakko Riihinen was appointed Senior Vice President, Products &
Technology and member of the executive management team. Mr Riihinen began his
work on 13 August, 2012. He moved to QPR from Nokia Siemens Networks, where he
since 2008 worked as Head of Research & Development at OSS Business Line as
well as in the company's restructuring program. Prior to this, in 2001-2008, he
worked as Director, Enterprise Architecture in Nokia and Nokia Siemens
Networks.
Jaakko Salminen started in August as acting VP and member of the executive
management team, responsible for international resellers and Russian business.
Jaakko Salminen has previously worked as CEO of Finnish Software Entrepreneurs,
Managing Director of Ravensoft and in several other management positions in
technology companies.
EVENTS AFTER REPORTING PERIOD
In the beginning of October, Mr. Pauli Leppänen was appointed Chief Financial
Officer at QPR Software Plc as of 7 January, 2013. He moves to QPR from
Sagacitas Finance Partners Oy, where he has worked as a Partner. In addition,
he has worked as SVP, Head of Corporate Control and acting CFO at TeliaSonera
AB (2003-2010), and in financial management and leadership positions in Sonera
Corporation (1998-2002) and Outokumpu Oyj (1994-1997). The current CFO, Mrs.
Päivi Martti, will continue in her position until 7 January, 2013. After this,
from her own initiative, she takes up new tasks at QPR.
QPR Software and ProcessGold, a German pioneer in process mining, announced on
17 October that the two companies have signed a strategic partnership
agreement. The goal of the co-operation is to pave way for Automated Business
Process Discovery (ABPD) by using QPR ProcessAnalyzer software product. The
partnership involves resale rights of QPR ProcessAnalyzer for ProcessGold,
sharing of best practices and other co-operation initiatives. Combined, both
companies have over 200 commercial process analysis projects under their belt
making them the ultimate ABPD pioneers.
GOVERNANCE
The Annual General Meeting on 22 March, 2012 resolved that the Board of
Directors consists of four (4) ordinary members. The Annual General Meeting
elected the following members to the Board of Directors: Kirsi Eräkangas, Jyrki
Kontio, Vesa-Pekka Leskinen and Topi Piela. In its first meeting immediately
following the Annual General 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 conditions of all authorizations of the Board and other decisions made by
the Annual General Meeting are available in their entirety on the stock
exchange release published by the Company on March 22, 2012 and available on
the investors section of the Company's web site, www.qpr.com.
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 with regulations and operational principles, reaches its
strategic goals, and ensures the continuity of its business.
QPR has identified the following four groups of risks related to its
operations: risks related to business operations (country, customer, service
delivery, personnel, legal and financial risks as well as risks related to the
Company's resellers), risks related to information and products (QPR products,
IPR, data security), risks related to financing (foreign currency, bad debt),
and risks related to new businesses (growth of new business, product
development investments in new business). The Company has an insurance policy
for property, operational and liability risks. The Company monitors country,
customer, personnel and finance risks also in the Russian subsidiary OOO QPR
Software.
QPR has not paid the remaining purchase price of EUR 99 thousand, recognized in
its balance sheet, for the business operations of Trodos Consulting and United
Project and Services Group to their sellers. In QPR's opinion, the sellers have
not fulfilled the terms set in defining the purchase price. The Company has
previously paid a consideration of EUR 165 thousand to the sellers. QPR and the
sellers have differing opinions on the purchase price and the employment
relationships between the sellers and QPR. QPR seeks to find a solution on the
matter primarily through negotiations, and secondarily through arbitration in
accordance with the Rules for Expedited Arbitration of the Arbitration
Institute of the Central Chamber of Commerce of Finland in Helsinki by a sole
arbitrator, as agreed in the Co-operation Agreement signed by QPR and the
sellers.
Financial risks include reasonable credit risk concerning individual business
partners, which is characteristic to any international business. QPR seeks to
limit this credit risk by continuous monitoring of standard payment terms,
receivables and credit limits. The escalated economic crisis in the euro area
has, according to management's estimate, to some extent increased the credit
risk that has remained on a moderate level in recent years. In the reporting
period January - September, EUR 202 thousand (87) of credit losses were
recorded. After this, the amount of trade receivables over 60 days past due is
on a low level and was at the end of the reporting period 11.1% (26.1) of total
trade receivables.
70% of Group's trade receivables are in euro. At the end of the reporting
period, the Company had not hedged its foreign currency (non-Euro) trade
receivables.
No other significant changes have taken place in QPR's short-term risks and
uncertainties during the reporting period. Risks related to the Company's
business are further described in the Annual Report 2011, page 16 onwards
(www.qpr.com/annual-reports.html).
FUTURE OUTLOOK
Recent forecasts published by market research firms estimate that the value of
global software sales will increase approximately 6% and global professional
services sales will increase almost 5% in 2012 compared to 2011. In 2013, the
value of global software sales is estimated to grow approximately 7% and global
professional services sales to grow close to 6%.
In July, based on good first half of the year, QPR Software upgraded its
estimate for 2012. Now the Company keeps this estimate intact and estimates its
net sales to grow approximately 18 - 24% in 2012. Software license net sales in
the current quarter will determine the exact growth inside the given forecast
range. QPR's software rental and professional service net sales are estimated
to show continued strong growth, especially in enterprise architecture
services. The Company estimates its operating profit in euros to improve
slightly from the previous year (2011: EUR 755 thousand), despite increasing
outlays in its growth businesses.
In 2012, QPR aims to make significant investments in the development of its new
software products QPR ProcessAnalyzer and QPR EnterpriseArchitect, as well as
related services. This will, in the short term, have a negative impact on
profitability. The Company believes that these outlays are well justified,
since these businesses have good growth prospects.
The Company focuses on recruiting new channel partners especially for its QPR
ProcessAnalyzer and QPR EnterpriseArchitect software products. In the beginning
of September, the Company established a Global OEM Business team to speed up
the international growth for QPR ProcessAnalyzer and to search for OEM partners
who will include QPR's products as part of their software or services.
The Company also increases significantly its personnel for service offering
development in 2012. Through service offering development the Company aims to
grow its local business in Finland, and to accelerate its international
software sales by offering complementary service concepts and solutions to its
channel partners.
QPR SOFWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0) 40 5026 39
www.qpr.com
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
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.
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) July - July - Change Jan - Jan - Change Jan -
Sept, Sept, , % Sept, Sept, , % Dec,
2012 2011 2012 2011 2011
Net sales 2,011 1,772 13.5 6,628 5,324 24.5 7,539
Other operating 18 12 50.0 54 50 8.0 79
income
Materials and 100 78 28.2 302 184 64.1 250
services
Employee benefit 1,211 1,058 14.5 3,865 3,233 19.5 4,594
expenses
Other operating 379 339 11.8 1,411 1,048 34.6 1,448
expenses
--------------------------------------------------------------------------------
EBITDA 339 309 9.7 1,104 909 21.5 1,326
Depreciation and 174 157 10.8 510 421 21.1 572
amortization
--------------------------------------------------------------------------------
Operating profit 165 152 8.6 594 488 21.7 755
Financial income 4 -2 300.0 -32 -26 -23.1 -50
and expenses
--------------------------------------------------------------------------------
Profit before 169 150 12.7 562 462 21.6 705
tax
Income taxes -17 -36 52.8 -137 -102 34.3 -184
--------------------------------------------------------------------------------
Profit for the 152 113 34.5 425 360 18.1 521
period
Profit for the
period
attributable
to:
Shareholder of 140 116 459 368 530
the
parent company
Non-controlling 12 -3 -34 -8 -9
interests
--------------------------------------------------------------------------------
152 113 425 360 521
Earnings per 0.01 0.01 0.03 0.03 0.04
share
(diluted), EUR
Earnings per 0.01 0.01 0.03 0.03 0.04
share, EUR
Consolidated statement of
comprehensive income:
Profit for the 152 113 425 360 521
period
Exchange rate 1 -26 -84 -41 4
differences
from translating
foreign
operations
Income tax - - - - -
relating to
components of
other
comprehensive
income
--------------------------------------------------------------------------------
Total 153 87 341 319 525
comprehensive
income
Total comprehensive income
attributable to:
Shareholder of 141 90 375 327 534
the parent
company
Non-controlling 12 -3 -34 -8 -9
interests
--------------------------------------------------------------------------------
153 87 341 319 525
CONSOLIDATED BALANCE SHEET
(EUR 1,000) Sept 30, Dec 31, Sept 30,
2012 2011 2011
Assets
Non-current assets
Intangible assets 1,629 1,760 1,760
Goodwill 513 513 513
Tangible assets 128 118 115
Other non-current assets 129 102 199
--------------------------------------------------------------------------------
Total non-current assets 2,399 2,493 2,587
Current assets
Trade and other receivables 2,644 4,248 3,096
Cash and cash equivalents 1,797 1,020 913
--------------------------------------------------------------------------------
Total current assets 4,441 5,268 4,009
Total assets 6,840 7,761 6,596
================================================================================
Equity and liabilities Sept 30, Dec 31, Sept 30,
2012 2011 2011
Equity
Share capital 1,359 1,359 1,359
Other funds 21 21 21
Treasury shares -251 -158 -133
Translation differences -150 -66 -112
Invested non-restricted equity fund 5 5 5
Retained earnings 1,912 1,820 1,660
--------------------------------------------------------------------------------
Equity attributable to shareholders of the 2,896 2,981 2,800
parent company
Non-controlling interests -42 -8 -7
--------------------------------------------------------------------------------
Total equity 2,854 2,973 2,793
Non-current liabilities
Interest-bearing liabilities 113 340 340
Non-interest-bearing liabilities 0 146 56
--------------------------------------------------------------------------------
Total non-current liabilities 113 486 396
Current liabilities
Trade and other payables 3,647 4,076 3,181
Interest-bearing liabilities 226 226 226
--------------------------------------------------------------------------------
Total current liabilities 3,873 4,302 3,407
Total liabilities 3,986 4,788 3,803
Total equity and liabilities 6,840 7,761 6,596
================================================================================
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) Jan -Sept, Jan - Sept, Jan - Dec,
2012 2011 2011
Cash flow from operating activities
Profit for the period 425 360 521
Adjustments for the profit 423 488 718
Working capital changes 1,137 196 28
Interest and other financial expenses -31 -16 -23
paid
Interest and other financial income 6 18 27
received
Income taxes paid -98 0 -10
--------------------------------------------------------------------------------
Net cash from operating activities 1,862 1,046 1,261
Cash flow from investing activities
Acquired subsidiaries 0 -565 -565
Purchases of tangible and intangible -398 -605 -691
assets
--------------------------------------------------------------------------------
Net cash used in investing activities -398 -1,170 -1,256
Cash flow from financing activities
Repayments of long-term borrowings -226 -226 -226
Repurchase of shares -93 -75 -100
Dividends paid -367 -362 -362
--------------------------------------------------------------------------------
Net cash used in financing activities -686 -663 -688
Net change in cash and cash equivalents 778 -787 -683
Cash and cash equivalents at the 1,020 1,702 1,702
beginning of the period
Effects of exchange rate changes on cash -1 -2 1
and cash equivalents
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of 1,797 913 1,020
the period
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
JANUARY 1 - SEPTEMBER 30, 2012
(EUR Share Other Translat Treasu Invested Retain Non-cont Total
1,000) capita funds ion ry non-restric ed rolling
l differen shares ted equity earnin interest
ces fund gs s
Equity 1,359 21 -66 -158 5 1,820 -8 2,973
Jan 1,
2012
Dividend -367 -367
s paid
Repurcha -93 -93
se of
shares
Comprehe -84 459 -34 341
nsive
income
--------------------------------------------------------------------------------
Change 0 0 -84 -93 0 92 -34 -119
in
equity
--------------------------------------------------------------------------------
Equity 1,359 21 -150 -251 5 1,912 -42 2,854
Sept
30,
2012
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
JANUARY 1 - DECEMBER 31, 2011
(EUR Share Other Translat Treasu Invested Retain Non-cont Total
1,000) capita funds ion ry non-restric ed rolling
l differen shares ted equity earnin interest
ces fund gs s
Equity 1,359 21 -70 -275 5 1,653 1 2,694
Jan 1,
2011
Dividend -362 -362
s paid
Repurcha -100 -100
se of
shares
Disposal 217 217
of
treasur
y shares
Comprehe 4 529 -9 524
nsive
income
--------------------------------------------------------------------------------
Change 0 0 4 117 0 167 -9 279
in
equity
--------------------------------------------------------------------------------
Equity 1,359 21 -66 -158 5 1,820 -8 2,973
Dec 31,
2011
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
JANUARY 1 - SEPTEMBER 30, 2011
(EUR Share Other Translat Treasu Invested Retain Non-cont Total
1,000) capita funds ion ry non-restric ed rolling
l differen shares ted equity earnin interest
ces fund gs s
Equity 1,359 21 -70 -275 5 1,653 1 2,694
Jan 1,
2011
Dividend -362 -362
s paid
Repurcha -75 -75
se of
shares
Disposal 217 217
of
treasur
y shares
Comprehe -42 369 -8 319
nsive
income
--------------------------------------------------------------------------------
Change 0 0 -42 142 0 7 -8 99
in
equity
--------------------------------------------------------------------------------
Equity 1,359 21 -112 -133 5 1,660 -7 2,793
Sept
30,
2011
NOTES TO INTERIM FINANCIAL STATEMENTS
ACCOUNTING PRICIPLES
This interim report complies with requirements of IAS 34 ”Interim Financial
Reporting”. Starting from the beginning of the reporting period, the Group has
applied certain new or revised IFRS standards and IFRIC interpretations as
described in the Consolidated Financial Statements 2011. The implementation of
these new and revised requirements have not materially impacted the reported
figures. For all other parts, the accounting and valuation principles are the
same as they were in the 2011 financial statements.
When preparing the consolidated financial statements, management is required to
make estimates and assumptions regarding the future and to consider the
appropriate application of accounting principles, which means that actual
results may differ from those estimated.
All amounts presented in this interim report are consolidated figures, unless
otherwise noted.
The amounts presented in the report are rounded, so the sum of individual
figures may differ from the sum reported. This interim report is unaudited.
GROUP COMMITMENTS AND CONTINGENT LIABILITIES
(EUR 1,000) Sept 30, Dec 31, Sept 30,
2012 2011 2011
Business mortgage 1,337 1,337 1,337
Current lease liabilities
Liabilities maturing during one year 176 231 334
Liabilities maturing 2-5 years 43 77 71
--------------------------------------------------------------------------------
Lease liabilities total 219 308 405
Total commitments and contingent 1,556 1,645 1,742
liabilities
GROUP INTANGIBLE AND TANGIBLE ASSETS
Increases in intangible assets
(EUR 1,000) Sept 30, 2012 Dec 31, Sept 30, 2011
2011
Acquisition cost Jan 1 4,839 3,608 3,608
Increase 336 1,396 1,231
Increases in tangible assets
(EUR 1,000) Sept 30, 2012 Dec 31, Sept 30, 2011
2011
Acquisition cost Jan 1 1,158 1,021 1,021
Increase 62 137 56
CHANGE IN GROUP INTEREST-BEARING LOANS
(EUR 1,000) Sept 30, 2012 Dec 31, Sept 30, 2011
2011
Interest-bearing loans Jan 1 566 792 792
Repayments -226 -226 -226
---------------------------------------------------------------------
Interest-bearing loans 340 566 566
Sept 30/Dec 31
CONSOLIDATED INCOME STATEMENT BY QUARTER
(EUR 1,000) July - April- Jan - Oct - July - April - Jan -
Sept, June, March, Dec, Sept, June, March,
2012 2012 2012 2011 2011 2011 2011
Net sales 2,011 2,404 2,212 2,215 1,772 1,784 1,768
Other 18 21 15 29 12 17 21
operating
income
Materials and 100 115 87 66 78 72 34
services
Employee 1,211 1,360 1,294 1,361 1,058 1,053 1,122
benefit
expenses
Other 379 552 480 400 339 363 346
operating
expenses
--------------------------------------------------------------------------------
EBITDA 339 398 366 417 309 313 287
Depreciation 174 168 167 151 157 134 130
and
amortization
--------------------------------------------------------------------------------
Operating 165 230 199 267 152 179 157
profit
Financial 4 -34 -2 -24 -2 -8 -16
income and
expenses
--------------------------------------------------------------------------------
Profit before 169 196 197 243 150 171 141
tax
Income taxes -17 -72 -48 -82 -36 -24 -41
--------------------------------------------------------------------------------
Profit for 152 124 149 161 113 147 100
the period
SEGMENT INFORMATION
(1,000 EUR) July - July - Jan - Jan - Jan - Dec,
Sept, 2012 Sept, 2011 Sept, 2012 Sept, 2011 2011
Net sales
Software Sales 804 845 2,778 2,761 3,836
International
Business 1,207 927 3,850 2,563 3,703
Operations
Finland
------------------------------------------------------------------------------
Total net sales 2,011 1,772 6,628 5,324 7,539
EBITDA
Software Sales 174 139 532 514 764
International
Business 250 265 859 661 925
Operations
Finland
Not allocated -85 -95 -287 -266 -363
------------------------------------------------------------------------------
Total EBITDA 339 309 1,104 909 1,326
Operating profit
Software Sales 103 67 324 309 472
International
Business 147 180 557 445 646
Operations
Finland
Not allocated -85 -95 -287 -266 -363
------------------------------------------------------------------------------
Total operating 165 152 594 488 755
profit
Financial income and 4 -2 -32 -26 -50
expenses
Income taxes -17 -36 -137 -102 -184
--------------------------------------------------------------------------------
Profit for the 152 113 425 360 521
period
Other information
Depreciation and amortization
Software Sales 71 72 208 205 292
International
Business 103 85 302 216 280
Operations
Finland
------------------------------------------------------------------------------
Total depreciation 174 157 510 421 572
and amortization
GROUP KEY FIGURES
EUR (1,000) Jan - Sept, Jan - Sept, Jan - Dec,
2012 2011 2011
Net sales 6,628 5,324 7,539
Net sales growth, % 24.5 6.1 8.7
Operating profit 594 488 755
% of net sales 9.0 9.2 10.0
Profit before tax 562 462 705
% of net sales 8.5 8.7 9.4
Profit for the period 425 360 521
% of net sales 6.4 6.8 6.9
Return on equity, % 19.5 17.5 18.4
Return on investment ,% 23.5 19.0 21.5
Interest-bearing liabilities 340 566 566
Cash and cash equivalents 1,797 913 1,020
Free cash flow 1,464 -124 570
Net liabilities -1,457 -347 -454
Equity 2,854 2,793 2,973
Gearing, % -51.2 -12.4 -15.3
Equity ratio, % 53.9 52.7 44.2
Total balance sheet 6,940 6,596 7,761
Investments in non-current 398 1,324 1,478
assets
% of net sales 6.0 24.9 19.6
Product development expenses 1,217 1,011 1,313
% of net sales 18.4 19.0 17.4
Average number of personnel 78 71 72
Personnel at the beginning of 73 65 65
period
Personnel at the end of period 80 78 73
Earnings per share, € 0.03 0.03 0.04
Earnings per share (diluted), € 0.03 0.03 0.04
Equity per share, € 0.23 0.22 0.24
Definitions of key figures are presented on page 45 in the Annual Report 2011.
© 2024 Nasdaq, Inc. All Rights Reserved |