TECNOMEN'S FINANCIAL STATEMENTS 1 JANUARY - 31 DECEMBER 2007 (unaudited)
Net sales in the fourth quarter of the year were EUR 19.2 (20.1) million, and the operating result was EUR 1.8 (0.6) million. The operating cash flow was good, EUR 8.1 (-3.4) million. Net sales for the whole year were EUR 70.1 (71.8) million. The operating result was EUR 8.9 (4.9) million. The operating cash flow was EUR 2.9 (-6.6) million. The order book at the close of the period stood at EUR 17.5 (15.0) million. -------------------------------------------------------------------------------- | KEY FIGURES | 10-12/07 | 10-12/06 | 2007 | 2006 | -------------------------------------------------------------------------------- | Net sales, MEUR | 19.2 | 20.1 | 70.1 | 71.8 | -------------------------------------------------------------------------------- | Net sales, change % | -4.7 | 12.5 | -2.4 | 4.1 | -------------------------------------------------------------------------------- | Operating result, MEUR | 1.8 | 0.6 | 8.9 | 4.9 | -------------------------------------------------------------------------------- | % of net sales | 9.3 | 3.0 | 12.7 | 6.8 | -------------------------------------------------------------------------------- | Profit before taxes, MEUR | 2.7 | 0.5 | 10.0 | 5.2 | -------------------------------------------------------------------------------- | % of net sales | 13.9 | 2.3 | 14.2 | 7.3 | -------------------------------------------------------------------------------- | Result for the period | 2.2 | -0.4 | 8.7 | 3.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, basic, | 0.04 | -0.01 | 0.15 | 0.06 | | EUR | | | | | -------------------------------------------------------------------------------- | Earnings per share, | 0.04 | -0.01 | 0.15 | 0.05 | | diluted, EUR | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order book, MEUR | | | 17.5 | 15.0 | -------------------------------------------------------------------------------- | Cash flow, MEUR | 8.3 | -3.3 | -2.8 | -13.0 | -------------------------------------------------------------------------------- | Operating cash flow, MEUR | 8.1 | -3.4 | 2.9 | -6.6 | -------------------------------------------------------------------------------- | Cash funds, MEUR | | | 17.5 | 20.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity ratio, % | | | 83.7 | 84.3 | -------------------------------------------------------------------------------- | Gearing, % | | | -22.4 | -27.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel at end of period | 355 | 374 | 355 | 374 | -------------------------------------------------------------------------------- President and CEO Jarmo Niemi: ”Tecnomen's result in 2007 was a clear improvement on the previous year. Growth in the Messaging business unit was strong. The unit's net sales rose 19% in 2007, and in the growing Middle East and Africa market much more strongly. Operating profit increased to 26% of net sales. Net sales of the Charging business unit declined 20% in 2007. Factors contributing to this were a poor first quarter and the continuing weakening of the US dollar during the year. The operating result for the year was 5% of net sales. Particularly encouraging during the past year was the strong growth in service and maintenance sales, from EUR 9.8 million to EUR 15.1 million. The cash flow from operations in the final quarter was EUR 8.1 million, and for the whole year was EUR 2.9 million. Payment was received in particular for major Charging projects. In the Messaging business, the investments made in the IP-based NGM platform increased the unit's net sales during 2007 and laid a foundation for strong profitability. We will continue to put our efforts into developing NGM, into customer support, especially in growing markets, and into sales through the global partner channel. During 2008 the main focus for investments is in developing the IP-based Convergent Charging product and opening up new market areas. These steps are expected to significantly boost growth and profitability in the Charging business in the coming years.” Unless otherwise stated, all figures presented below are for the review period 1-12/2007 and the figures for comparison are for the corresponding period 1-12/2006. SALES AND NET SALES Tecnomen's net sales in the review period decreased by 2.4% to EUR 70.1 (71.8) million. EUR 49.7 million of the sales in the review period have been recognised in accordance with IAS 11 (Construction contracts) and EUR 20.4 million in accordance with IAS 18 (Revenues). Net sales by geographical area were: Americas 53.8%(59.2%), EMEA 38.0%(31.3%) and APAC 8.2%(9.4%). Net sales by product line were: Messaging 54.7%(44.9%) and Charging 45.3%(55.1%). Sales through global partners totalled EUR 20.3 (16.4) million or 28.9%(22.8%) of net sales. Maintenance and service sales increased 54.8% and totalled EUR 15.1 (9.8) million or 21.5%(13.6%) of net sales. The order book stood at EUR 17.5 (15.0) million at the end of the review period. Americas accounted for 31.6%of the order book, EMEA for 57.8% and APAC for 10.6%. OPERATING RESULT The operating result for the review period was EUR 8.9 (4.9) million. Factors contributing to this improvement were lower project material and service costs than in the previous year, a larger share of operations accounted for by maintenance and service, and lower employee benefit costs due to the reduction in the number of personnel. The result for the period before taxes was EUR 10.0 (5.2) million. Earnings per share were EUR 0.15 (0.06). Equity per share at the end of the period was EUR 1.32 (1.27). FINANCING AND INVESTMENTS Tecnomen's liquid assets totalled EUR 17.5 (20.4) million. The cash flow for the review period was EUR -2.8 million. The last quarter cash flow was EUR 8.3 million. The first quarter cash flow included a repayment of capital to shareholders of EUR 5.9 million. The balance sheet total on 31 December 2007 stood at EUR 95.2 (88.8) million. Interest-bearing liabilities amounted to EUR 0.0 (0.0) million. The debt to equity ratio (gearing) was -22.4% (-27.4%). The balance sheet structure remained strong and the equity ratio on 31 December 2007 was 83.7%(84.3%). Tecnomen's gross capital expenditure during the review period, excluding the capitalisation of development costs, was EUR 1.2 (2.4) million or 1.8% (3.4%) of net sales. Financial income and expenses (net) during the review period totalled EUR 1.1 (0.3) million. The net effect of assessing foreign currency balance sheet items was EUR 0.7 (0.0) million, the loss from assessing the fair value of funds was EUR -0.2 (0.2) million, and other financial income totalled EUR 0.6 (0.1) million. -------------------------------------------------------------------------------- | CHANGE IN WORKING CAPITAL, MEUR (increase - / | 1-12/07 | 1-12/06 | | decrease +) | | | -------------------------------------------------------------------------------- | Change in accounts receivable | 2.3 | -5.3 | -------------------------------------------------------------------------------- | Change in other short-term receivables | -5.4 | -1.8 | -------------------------------------------------------------------------------- | Change in inventories | -0.4 | 0.3 | -------------------------------------------------------------------------------- | Change in accounts payable | 0.5 | 0.0 | -------------------------------------------------------------------------------- | Change in other current liabilities | 2.1 | 1.4 | -------------------------------------------------------------------------------- | CHANGE IN WORKING CAPITAL, TOTAL | -1.0 | -5.4 | -------------------------------------------------------------------------------- MARKETS Messaging During the year Tecnomen delivered major Messaging expansion orders in Europe, Asia, the Middle East, Africa and Latin America. Maintenance sales increased considerably during the year. Cash flow was strong in the second half of the year as several major delivery projects were completed. Charging The growth in subscriber numbers continued in South and Central America and in Africa. Tecnomen received major orders for system expansions in Latin America during the year. Several projects were successfully completed which created a strong cash in-flow in the final quarter. RESEARCH AND DEVELOPMENT Research and development costs during the review period were EUR 16.1 (13.2) million, corresponding to 22.9%(18.4%) of net sales. EUR 7.6 (6.0) million of development costs were capitalised during the review period and will be amortised over 3-5 years from the start of commercial use. R&D costs of EUR 2.4 (1.0) million were amortised during the review period. PERSONNEL At the end of December 2007 Tecnomen employed 355 (374) persons, of whom 89 (115) worked in Finland and 266 (259) elsewhere. The company employed on average 354 (387) people during the review period. Personnel by geographical area were as follows: -------------------------------------------------------------------------------- | | 2007 | 2006 | -------------------------------------------------------------------------------- | Personnel, at end of period | 355 | 374 | -------------------------------------------------------------------------------- | Americas | 67 | 65 | -------------------------------------------------------------------------------- | EMEA | 261 | 286 | -------------------------------------------------------------------------------- | APAC | 27 | 23 | -------------------------------------------------------------------------------- | Personnel, average | 354 | 387 | -------------------------------------------------------------------------------- | Personnel expenses before R&D | 25.3 | 27.5 | | capitalisation (MEUR) | | | -------------------------------------------------------------------------------- TECNOMEN SHARES AND SHARE CAPITAL At the end of December 2007 the shareholders' equity of Tecnomen Corporation stood at EUR 78.0 (74.6) million and the share capital was EUR 4,720,446.24, divided into 59,252,078 shares. The company held 134,800 of these shares, which represents 0.23%of the company's share capital and votes. Equity per share was EUR 1.32 (1.27). A total of 38,721,977 Tecnomen shares (EUR 53,923,125) were traded on the Helsinki Exchanges during the period 2 January - 31 December 2007, representing 65.35% of the total number of shares. The highest share price quoted in the period was EUR 1.83 and the lowest EUR 1.15. The average quoted price was EUR 1.40 and the closing price on 31 December 2007 was EUR 1.24. The market capitalisation of the share stock at the end of the period was EUR 73,472,577. CURRENT AUTHORISATIONS At the end of the year Tecnomen's Board of Directors had the following current authorisations given by the Annual General Meeting on 14 March 2007: Authorisation to decide on acquiring a maximum of 5,800,000 of the Company's own shares. Own shares may be acquired with unrestricted shareholders' equity at the market price of the shares at the time of the acquisition. The shares can be acquired for the purpose of developing the capital structure of the Company, carrying out corporate acquisitions or other business arrangements to develop the business of the Company, financing capital expenditure, to be used as part of the Company's incentive schemes, or to be otherwise retained in the possession of the Company, disposed of or nullified in the extent and manner decided by the Board of Directors. Authorisation to decide on issuing and/or conveying a maximum of 17,800,000 new shares and/or the Company's own shares either against payment or for free. The new shares may be issued and the Company's own shares may be conveyed to the Company's shareholders in proportion to their current shareholdings in the Company or waiving the shareholder's pre-emption right through a directed share issue, if the Company has weighty financial grounds for doing so. Such grounds could be the development of the capital structure of the Company, carrying out corporate acquisitions or other business arrangements to develop the business of the Company, financing capital expenditure or using the shares as part of the Company's incentive schemes in the extent and manner decided by the Board of Directors. Authorisation to decide on a free share issue to the Company itself. The number of shares to be issued to the Company together with the shares repurchased to the Company on the basis of the repurchase authorisation shall be a maximum of one tenth (1/10) of all the Company's shares. Authorisation to grant special rights by giving, against payment, new Company shares or the Company's own shares held by the Company. STOCK OPTION SCHEMES The company currently has a 2002 stock option scheme and a 2006 stock option scheme. In the 2002 stock option scheme, the 2002B, 2002C and 2002D stock options were current. The subscription period for the 2002B stock option was 1 April 2004 - 30 April 2007, for the 2002C stock option 1 April 2005 - 30 April 2007 and for the 2002D stock option 1 April 2006 - 30 April 2008. During the review period shares were subscribed with the 2002C and 2002D stock options. The share subscription price for stock option 2002C is EUR 0.24 and for stock option 2002D EUR 1.11. The amount of the capital repayment per share (EUR 0.10) has been deducted from the subscription prices. A total of 66,500 new shares were subscribed with the 2202C stock options and 180,000 new shares with the 2002D stock options. The payments received for share subscriptions were recorded in their entirety in the invested non-restricted equity reserve. The 2006 stock option programme is divided into three series: the 2006A, 2006B and 2006C stock options. A maximum of 2,001,000 stock options may be issued, which entitle holders to subscribe for altogether 2,001,000 Tecnomen shares. The subscription period for the 2006A stock option is 1 April 2007 - 30 April 2010, for the 2006B stock option 1 April 2008 - 30 April 2011 and for the 2006C stock option 1 April 2009 - 30 April 2012. The share subscription price for 2006A stock options is EUR 2.61, for 2006B stock options EUR 1.46, and for 2006C stock options the trade-weighted average price of the Company share on the Helsinki Exchanges during 1 January - 31 March 2008. The amount of the capital repayment per share (EUR 0.10) has been deducted from the subscription prices for the 2006A and 2006B stock options. Tecnomen's Board of Directors has issued 436,000 2006A stock options and 667,000 2006B stock options to key personnel of Tecnomen Group. The remaining 2006 stock options have been issued to Tecnomen Japan Oy, a wholly owned Tecnomen subsidiary, for issuing at a later date to current or future key Group personnel. Altogether 2,713,000 stock options remain on 31 December 2007 of all Tecnomen's stock options in circulation. The shares that can be subscribed on the basis of these stock options account for a maximum of 4.38% of the Company's shares and the votes carried by the shares after any increase in share capital. On 31 December 2007 the Company still held 1,087,000 of all the current stock options. The issued stock options had a maximum diluting effect on 31 December 2007 of 2.67%. SEGMENT INFORMATION The Group's organisation as from 1 October 2006 comprises the Messaging and Charging business units and support functions. Based on this organisation, as from the beginning of this year the primary segments in Tecnomen Group's financial reporting, in accordance with IFRS, are the Messaging and Charging product lines. This is because these are two clearly distinct businesses and they are also being monitored in the company's internal financial reporting as separate business units as from the beginning of this year. RISK MANAGEMENT AND UNCERTAIN FACTORS The greatest risks in Tecnomen's operations are related to major customer and partner relationships, to agreements made with these, and to the correct timing of its product development. Tecnomen's largest customers are much bigger businesses than the company itself and the five largest customers account for more than half of net sales. The relationship between the company and its major customers is one of interdependence, which poses a potential risk but also offers significant new business opportunities. Certain commitments are associated with the project and maintenance agreements made by the company, and unforeseen costs may arise in the future from these agreements. The company aims to limit these liabilities with limitation of liability clauses in customer contracts. In addition the company has a current global liability insurance to cover any liabilities that may materialise in connection with customer projects. Project deliveries result in large accounts receivable. The payment record of customers and the situation concerning receivables are actively monitored and credit rating checks are made on new customers before confirming an offer. Changes in exchange rates create risks especially in sales activities. A significant part of the company's net sales is in US dollars. The company hedges its currency denominated net position for a maximum period of 12 months, using currency forward contracts and currency options. Liquid funds are invested, avoiding credit and liquidity risks, in money-market deposits and short-term interest funds with a good credit rating. Carrying out projects creates risks. They are contained for example in projects that require new product development, where creating new product features may prove more difficult than anticipated. Another problem with project sales arises from variations in net sales and profit during the different quarters of the year. Forecasting these variations is often difficult. Tecnomen operates in a rapidly changing sector. When making R&D decisions there is the risk that the choice made may not bring the expected returns. Tecnomen's risks and uncertainties in the near future relate to major projects that are under negotiation and to their timing. EVENTS AFTER THE END OF THE PERIOD Tecnomen has decided to examine the option of liquidizing its assests from the real estate owned by the company, and has given Catella Corporate Finance Oy the task of exploring the possibility of selling the Tecnomen headquarters property in Espoo. If the real estate is sold, Tecnomen will continue functioning on the premises as a tenant. An investigation into the possibility of selling the real estate owned by Tecnomen in Shannon, Ireland will also be made. Tecnomen expects to book a profit by selling the real estate in Espoo. It is not certain that the sale will take place. If it does, it is expected to take place in the second quarter of 2008. PROSPECTS The overall market for Messaging and Charging in 2008 is expected to remain unchanged from the previous year. The market for conventiona proprietary systems is declining but for IP-based solutions the market is growing. Net sales in 2008 are expected to be similar to those in 2007. To safeguard its growth potential in the coming years and, through this, better profits, Tecnomen is putting much effort in 2008 into the new convergent charging products and into new markets of its Charging business. Because of these major efforts, it is estimated that the 2008 operating profit will be smaller than the 2007 figure. Variations between quarterly figures are expected to be considerable. PROPOSAL FOR DISTRIBUTION OF PROFITS Tecnomen's Board of Directors proposes to the Annual General Meeting to be held on 12 March 2008 that a dividend of EUR 0.07 per share be paid for the fiscal year ended on 31 December 2007. The dividend will be paid to shareholders who are registered on the record date of 17 March 2008 in the company's shareholder register maintained by the Finnish Central Securities Depository Ltd. The Board proposes to the AGM that the dividend is paid on 26 March 2008. FINANCIAL INFORMATION Tecnomen is holding a conference to announce its fiscal year 2007 results at 10.00 am on 6 February 2008 in the Tapiola conference room at the Scandic Hotel Simonkenttä, Helsinki. The material presented at the press conference will be available at www.tecnomen.com. TECNOMEN CORPORATION Board of Directors FURTHER INFORMATION Mr Jarmo Niemi, President and CEO, tel. +358 (0)9 8047 8799 Mr Tuomas Wegelius, CFO, tel. +358 (0)9 8047 8650 DISTRIBUTION Helsinki Exchanges Main media -------------------------------------------------------------------------------- | CONSOLIDATED INCOME | Note | 10-12/07 | 10-12/06 | 2007 | 2006 | | STATEMENT, MEUR | | | | | | -------------------------------------------------------------------------------- | NET SALES | 2 | 19.2 | 20.1 | 70.1 | 71.8 | -------------------------------------------------------------------------------- | Other operating income | | 0.0 | 0.0 | 0.2 | 0.3 | -------------------------------------------------------------------------------- | Materials and services | | -4.6 | -5.4 | -15.2 | -18.8 | -------------------------------------------------------------------------------- | Employee benefit | | -6.7 | -7.0 | -23.3 | -25.6 | | expenses | | | | | | -------------------------------------------------------------------------------- | Depreciation | | -1.5 | -0.9 | -4.6 | -3.0 | -------------------------------------------------------------------------------- | Other operating | | -4.6 | -6.2 | -18.4 | -19.8 | | expenses | | | | | | -------------------------------------------------------------------------------- | OPERATING RESULT | | 1.8 | 0.6 | 8.9 | 4.9 | -------------------------------------------------------------------------------- | Financial income | | 0.5 | 0.5 | 1.5 | 2.1 | -------------------------------------------------------------------------------- | Financial expenses | | 0.4 | -0.7 | -0.5 | -1.7 | -------------------------------------------------------------------------------- | RESULT BEFORE TAXES | | 2.7 | 0.5 | 10.0 | 5.2 | -------------------------------------------------------------------------------- | Income taxes | | -0.5 | -0.9 | -1.3 | -2.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | RESULT FOR THE PERIOD | | 2.2 | -0.4 | 8.7 | 3.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, | | 0.04 | -0.01 | 0.15 | 0.06 | | basic, EUR | | | | | | -------------------------------------------------------------------------------- | Earnings per share, | | 0.04 | -0.01 | 0.15 | 0.05 | | diluted, EUR | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET, | Note | 31.122007 | 31.12.2006 | | MEUR | | | | -------------------------------------------------------------------------------- | Assets | | | | -------------------------------------------------------------------------------- | Goodwill | | 0.7 | 0.7 | -------------------------------------------------------------------------------- | Other intangible assets | 3 | 15.8 | 10.6 | -------------------------------------------------------------------------------- | Tangible assets | 4 | 8.1 | 8.8 | -------------------------------------------------------------------------------- | Long-term trade and other | | 0.2 | 0.5 | | receivables | | | | -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Inventories | 5 | 2.4 | 1.9 | -------------------------------------------------------------------------------- | Trade receivables | | 25.8 | 26.2 | -------------------------------------------------------------------------------- | Other receivables | | 24.8 | 19.7 | -------------------------------------------------------------------------------- | Cash and cash equivalents | | 17.5 | 20.5 | -------------------------------------------------------------------------------- | TOTAL ASSETS | | 95.2 | 88.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | | 78.0 | 74.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Long-term non-interest | | 0.0 | 0.0 | | bearing liabilities | | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | | 3.4 | 2.6 | -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Short-term non-interest | | 13.8 | 11.5 | | bearing liabilities | | | | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | 95.2 | 88.8 | -------------------------------------------------------------------------------- CHANGE IN SHAREHOLDERS' EQUITY, MEUR -------------------------------------------------------------------------------- | MEUR | Shar | Share | Other | Own | Transla- | Inves- | Retai | Total | | | e | premiu | reser | shar | tion | ted | ned | | | | capi | m fund | ves | es | differ-e | non-re | ear-n | | | | tal | | | | nce | strict | ings | | | | | | | | | ed | | | | | | | | | | equity | | | | | | | | | | reserv | | | | | | | | | | e | | | -------------------------------------------------------------------------------- | Sharehold | 4.7 | 0.8 | 60.6 | -0.1 | 0.2 | 0.0 | 8.4 | 74.6 | | ers' | | | | | | | | | | equi | | | | | | | | | | ty | | | | | | | | | | 1 Jan. | | | | | | | | | | 2007 | | | | | | | | | -------------------------------------------------------------------------------- | Translati | | | | | 0.0 | | | 0.0 | | on | | | | | | | | | | differenc | | | | | | | | | | e | | | | | | | | | -------------------------------------------------------------------------------- | Net gain | | | | | 0.0 | | | 0.0 | | recognise | | | | | | | | | | d | | | | | | | | | | directly | | | | | | | | | | in | | | | | | | | | | sharehold | | | | | | | | | | ers' | | | | | | | | | | equity | | | | | | | | | -------------------------------------------------------------------------------- | Result | | | | | | | 8.7 | 8.7 | | for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | | | 0.0 | | 8.7 | 8.7 | | profits | | | | | | | | | | and | | | | | | | | | | losses | | | | | | | | | | recognise | | | | | | | | | | d | | | | | | | | | | during | | | | | | | | | | pe | | | | | | | | | | riod | | | | | | | | | -------------------------------------------------------------------------------- | Capital | | | -5.9 | | | | | -5.9 | | repayment | | | | | | | | | -------------------------------------------------------------------------------- | Options | | | | | | 0.2 | | 0.2 | | exercised | | | | | | | | | -------------------------------------------------------------------------------- | Share-bas | | | | | | | 0.2 | 0.2 | | ed | | | | | | | | | | payments | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | 0.1 | 0.1 | | adjustmen | | | | | | | | | | ts | | | | | | | | | -------------------------------------------------------------------------------- | Sharehold | 4.7 | 0.8 | 54.7 | -0.1 | 0.2 | 0.2 | 17.4 | 78.0 | | ers' | | | | | | | | | | equity | | | | | | | | | | 31 Dec. | | | | | | | | | | 2007 | | | | | | | | | -------------------------------------------------------------------------------- In March 2007 a capital repayment of altogether EUR 5,883,317.80, or EUR 0.10 per share, was made on 58,833,178 shares. -------------------------------------------------------------------------------- | MEUR | Share | Share | Othe | Own | Transla | Inves-t | Retaine | Tota | | | capita | premiu | r | shar | tion | ed | d | l | | | l | m fund | rese | es | differe | non-res | earning | | | | | | rves | | nce | tricted | s | | | | | | | | | equity | | | | | | | | | | reserve | | | -------------------------------------------------------------------------------- | Shareho | 4.6 | 66.2 | 0.3 | -0.1 | 0.2 | | 6.0 | 77.3 | | lders' | | | | | | | | | | equity | | | | | | | | | | 1 Jan. | | | | | | | | | | 2006 | | | | | | | | | -------------------------------------------------------------------------------- | Transla | | | | | 0.0 | | | 0.0 | | tion | | | | | | | | | | di | | | | | | | | | | fferenc | | | | | | | | | | e | | | | | | | | | -------------------------------------------------------------------------------- | Net | | | | | 0.0 | | | 0.0 | | gain | | | | | | | | | | recogni | | | | | | | | | | sed | | | | | | | | | | directl | | | | | | | | | | y in | | | | | | | | | | shareho | | | | | | | | | | lders' | | | | | | | | | | equity | | | | | | | | | -------------------------------------------------------------------------------- | Result | | | | | | | 3.2 | 3.2 | | for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | | | 0.0 | | 3.2 | 3.2 | | profits | | | | | | | | | | and | | | | | | | | | | losses | | | | | | | | | | recogni | | | | | | | | | | sed | | | | | | | | | | during | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Dividen | | | | | | | -1.2 | -1.2 | | d paid | | | | | | | | | -------------------------------------------------------------------------------- | Options | 0.1 | 0.8 | | | | 0.0 | | 0.9 | | exercis | | | | | | | | | | ed | | | | | | | | | -------------------------------------------------------------------------------- | Share-b | | | | | | | 0.4 | 0.4 | | ased | | | | | | | | | | payment | | | | | | | | | | s | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | -0.2 | -0.2 | | adjustm | | | | | | | | | | ents | | | | | | | | | -------------------------------------------------------------------------------- | Capital | | -5.9 | | | | | | -5.9 | | repayme | | | | | | | | | | nt | | | | | | | | | -------------------------------------------------------------------------------- | Transfe | | -60.3 | 60.3 | | | | | | | r of | | | | | | | | | | share | | | | | | | | | | premium | | | | | | | | | | fund to | | | | | | | | | | fund in | | | | | | | | | | non-res | | | | | | | | | | tricted | | | | | | | | | | equity | | | | | | | | | -------------------------------------------------------------------------------- | Shareho | 4.7 | 0.8 | 60.6 | -0.1 | 0.2 | 0.0 | 8.4 | 74.6 | | lders' | | | | | | | | | | equity | | | | | | | | | | 31 Dec. | | | | | | | | | | 2006 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW STATEMENT, MEUR | 1-12/2007 | 1-12/2006 | -------------------------------------------------------------------------------- | Cash flow from operating activities | | | -------------------------------------------------------------------------------- | Result for the period | 8.7 | 3.2 | -------------------------------------------------------------------------------- | Adjustments | 3.3 | 2.5 | -------------------------------------------------------------------------------- | Interest income | -0.8 | -0.8 | -------------------------------------------------------------------------------- | Interest expense | 0.2 | 1.4 | -------------------------------------------------------------------------------- | Income taxes | 1.3 | 2.0 | -------------------------------------------------------------------------------- | Other adjustments | 0.1 | -0.3 | -------------------------------------------------------------------------------- | Changes in working capital | -1.0 | -5.4 | -------------------------------------------------------------------------------- | Interest paid | -0.0 | -0.4 | -------------------------------------------------------------------------------- | Interest received | 0.6 | 0.5 | -------------------------------------------------------------------------------- | Income taxes paid | -0.3 | -0.7 | -------------------------------------------------------------------------------- | Net cash flow from operating activities | 12.1 | 2.0 | -------------------------------------------------------------------------------- | Cash flow from investments | | | -------------------------------------------------------------------------------- | Investments in intangible assets | -7.6 | -6.0 | -------------------------------------------------------------------------------- | Investments in tangible assets | -1.6 | -2.4 | -------------------------------------------------------------------------------- | Net cash flow from investments | -9.2 | -8.3 | -------------------------------------------------------------------------------- | Cash flow from financing activities | | | -------------------------------------------------------------------------------- | Shares subscribed with share options | 0.2 | 1.0 | -------------------------------------------------------------------------------- | Repayment of current loans | | -0.1 | -------------------------------------------------------------------------------- | Repayment of non-current loans | | -0.4 | -------------------------------------------------------------------------------- | Dividend paid | | -1.0 | -------------------------------------------------------------------------------- | Capital repayment | -5.9 | -5.9 | -------------------------------------------------------------------------------- | Net cash flow from financing | -5.7 | -6.4 | -------------------------------------------------------------------------------- | Increase (+) and decrease (-) in liquid | -2.8 | -12.8 | | funds | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liquid funds on 1 Jan. | 20.4 | 33.2 | -------------------------------------------------------------------------------- | Impact of changes in exchange rates | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Change in fair value of investments | -0.2 | 0.0 | -------------------------------------------------------------------------------- | Liquid funds on 31 Dec. | 17.5 | 20.4 | -------------------------------------------------------------------------------- | Change | -2.8 | -12.8 | -------------------------------------------------------------------------------- 1. ACCOUNTING PRINCIPLES AND BASIS FOR PREPARING CONSOLIDATED FINANCIAL STATEMENTS The Group's interim report has been prepared in accordance with the international financial reporting standard IAS 34 Interim Financial Reporting. The formulas for calculating the key figures presented and the accounting principles for the interim report are the same as the principles published in the 2006 Annual Report, apart from the change mentioned below in the presentation of segment information. 2. SEGMENT INFORMATION Tecnomen Group reports on the Messaging and Charging business units as its primary segments. The geographical areas are reported as secondary segments. Tecnomen Group operates in three geographical areas: Americas (North, Central and South America), EMEA (Europe, the Middle East and Africa) and APAC (Asia Pacific). Unallocated items include taxes, financial items and corporate assets and expenses. Net sales for the geographical segments are presented based on the location of customers. In reporting on the new segments, the figures for comparison for 2006 will not be presented for the new primary segments since the only information available for the new segments is net sales. -------------------------------------------------------------------------------- | BUSINESS SEGMENTS | 2007 | 2006 | | (primary segment information) | | | | NET SALES, MEUR | | | -------------------------------------------------------------------------------- | Messaging | 38.3 | 32.2 | -------------------------------------------------------------------------------- | Charging | 31.8 | 39.6 | -------------------------------------------------------------------------------- | TOTAL | 70.1 | 71.8 | -------------------------------------------------------------------------------- | OPERATING PROFIT, MEUR | 2007 | | -------------------------------------------------------------------------------- | Messaging | 10.0 | | -------------------------------------------------------------------------------- | Charging | 1.4 | | -------------------------------------------------------------------------------- | Unallocated items | -2.5 | | -------------------------------------------------------------------------------- | TOTAL | 8.9 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GEOGRAPHICAL SEGMENTS | 2007 | 2006 | | (secondary segment information) | | | | NET SALES, MEUR | | | -------------------------------------------------------------------------------- | Americas | 37.7 | 42.5 | -------------------------------------------------------------------------------- | EMEA | 26.6 | 22.5 | -------------------------------------------------------------------------------- | APAC | 5.8 | 6.8 | -------------------------------------------------------------------------------- | TOTAL | 70.1 | 71.8 | -------------------------------------------------------------------------------- 3. INTANGIBLE ASSETS During the review period EUR 7.6 million of development costs have been capitalised (EUR 6.0 million during 1 Jan-31 Dec 2006) and will be amortised over 3-5 years from the start of commercial use. Research and development costs of EUR 2.4 (EUR 1.0 million during 1 Jan-31 Dec 2006) were amortised during the review period. 4. TANGIBLE ASSETS Acquisitions of tangible assets in the review period totalled EUR 1.1 million (EUR 2.0 million during 1 Jan-31 Dec 2006). Disposals during the review period were EUR -0.3 million (EUR -0.1 million during 1 Jan-31 Dec 2006). 5. INVENTORIES An expense of EUR 0.2 million was recorded in the review period for writing down the carrying value of inventories to their net realisable value (EUR 0.5 million in 2006). 6.OPERATING LEASES, MEUR -------------------------------------------------------------------------------- | Operating leases | 2007 | 2006 | -------------------------------------------------------------------------------- | Less than one year | 0.5 | 0.5 | -------------------------------------------------------------------------------- | Between one and five years | 0.7 | 0.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 7. CONSOLIDATED CONTINGENT LIABILITIES, | 2007 | 2006 | | MEUR | | | -------------------------------------------------------------------------------- | Pledges given | | 0.6 | -------------------------------------------------------------------------------- | For other own commitments | | | -------------------------------------------------------------------------------- | Mortgages | | 0.6 | -------------------------------------------------------------------------------- | Pledges | | | -------------------------------------------------------------------------------- | On own behalf | 0.0 | 0.1 | -------------------------------------------------------------------------------- | Other liabilities | | | -------------------------------------------------------------------------------- | Restriction related to real estate in | 0.4 | 1.0 | | Ireland | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 8. CONSOLIDATED KEY FINANCIAL FIGURES, | 2007 | 2006 | | MEUR | | | -------------------------------------------------------------------------------- | Return on investment, % | 13.6 | 9.1 | -------------------------------------------------------------------------------- | Return on equity, % | 11.4 | 4.3 | -------------------------------------------------------------------------------- | Equity ratio, % | 83.7 | 84.3 | -------------------------------------------------------------------------------- | Debt/equity ratio (gearing), % | -22.4 | -27.4 | -------------------------------------------------------------------------------- | Investments | 1.2 | 2.4 | -------------------------------------------------------------------------------- | % of net sales | 1.8 | 3.4 | -------------------------------------------------------------------------------- | Research and development | 16.1 | 13.2 | -------------------------------------------------------------------------------- | % of net sales | 22.9 | 18.4 | -------------------------------------------------------------------------------- | Order book | 17.5 | 15.0 | -------------------------------------------------------------------------------- | Personnel, average | 354 | 387 | -------------------------------------------------------------------------------- | Personnel, at end of period | 355 | 374 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED KEY FIGURES PER SHARE, | 2007 | 2006 | | MEUR | | | -------------------------------------------------------------------------------- | Earnings per share, basic, EUR | 0.15 | 0.06 | -------------------------------------------------------------------------------- | Earnings per share, diluted, EUR | 0.15 | 0.05 | -------------------------------------------------------------------------------- | Equity per share, EUR | 1.32 | 1.27 | -------------------------------------------------------------------------------- | Number of shares at end of period, x | 59,252 | 59,006 | | 1,000 | | | -------------------------------------------------------------------------------- | Number of shares on average, x 1,000 | 58,965 | 58,673 | -------------------------------------------------------------------------------- | Share price, EUR | | | -------------------------------------------------------------------------------- | Average | 1.40 | 2.01 | -------------------------------------------------------------------------------- | Lowest | 1.15 | 1.38 | -------------------------------------------------------------------------------- | Highest | 1.83 | 3.06 | -------------------------------------------------------------------------------- | Share price at end of period | 1.24 | 1.68 | -------------------------------------------------------------------------------- | Market capitalisation of issued stock | 73.3 | 99.1 | | at end of period, MEUR | | | -------------------------------------------------------------------------------- | Share turnover, million shares | 38.7 | 59.8 | -------------------------------------------------------------------------------- | Share turnover, % of total | 65.4 | 101.4 | -------------------------------------------------------------------------------- | Share turnover, MEUR | 53.9 | 122.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KEY FIGURES PER | 4Q/07 | 3Q707 | 2Q/07 | 1Q/07 | 4Q/06 | 3Q/06 | | QUARTER, MEUR | | | | | | | -------------------------------------------------------------------------------- | Net sales, MEUR | 19.2 | 19.1 | 20.8 | 11.0 | 20.1 | 16.9 | -------------------------------------------------------------------------------- | Net sales, change % | -4.7 | 12.9 | 6.2 | -27.3 | 12.5 | -13.2 | -------------------------------------------------------------------------------- | Operating result, MEUR | 1.8 | 5.2 | 3.9 | -2.0 | 0.6 | 0.9 | -------------------------------------------------------------------------------- | % of net sales | 9.3 | 27.2 | 18.6 | -17.7 | 3.0 | 5.3 | -------------------------------------------------------------------------------- | Result before taxes, | 2.7 | 4.8 | 4.2 | -1.7 | 0.5 | 1.7 | | MEUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel at end of | 355 | 352 | 347 | 352 | 374 | 395 | | period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, | 0.04 | 0.08 | 0.06 | -0.03 | -0.01 | 0.02 | | basic, EUR | | | | | | | -------------------------------------------------------------------------------- | Earnings per share, | 0.04 | 0.07 | 0.06 | -0.03 | -0.01 | 0.02 | | diluted, EUR | | | | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | 1.32 | 1.28 | 1.21 | 1.15 | 1.27 | 1.27 | -------------------------------------------------------------------------------- | Net interest-bearing | -17.5 | -9.2 | -6.3 | -7.3 | -20.4 | -23.5 | | liabilities, MEUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order book, MEUR | 17.5 | 17.1 | 20.5 | 15.9 | 15.0 | 18.5 | -------------------------------------------------------------------------------- The financial figures in the income statement, the balance sheet and key indicators are presented in EUR million. The figures shown here have been calculated using exact values.
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