TECNOMEN'S INTERIM REPORT 1 JANUARY - 31 MARCH 2008 (unaudited)
Tecnomen Corporation INTERIM REPORT 23 April 2008 at 8.30 am TECNOMEN'S INTERIM REPORT 1 JANUARY - 31 MARCH 2008 (unaudited) Net sales in the review period totalled EUR 15.2 (11.0) million, the operating result was EUR -0.4 (-2.0) million, and cash flow from operations was EUR -1.5 (-7.1) million. The order book at the close of the period stood at EUR 16.8 (15.9) million. Tecnomen has received major orders in April in Latin America for expansions to the Tecnomen Convergent Charging system. These orders have a combined value of USD 7.5 million. -------------------------------------------------------------------------------- | KEY FIGURES | 1-3/08 | 1-3/07 | 2007 | -------------------------------------------------------------------------------- | Net sales, MEUR | 15.2 | 11.0 | 70.1 | -------------------------------------------------------------------------------- | Net sales, change % | 37.4 | -27.3 | -2.4 | -------------------------------------------------------------------------------- | Operating result, MEUR | -0.4 | -2.0 | 8.9 | -------------------------------------------------------------------------------- | % of net sales | -2.6 | -17.7 | 12.7 | -------------------------------------------------------------------------------- | Profit before taxes, MEUR | -0.4 | -1.7 | 10.0 | -------------------------------------------------------------------------------- | % of net sales | -2.4 | -15.3 | 14.2 | -------------------------------------------------------------------------------- | Result for the period | -1.3 | -1.5 | 8.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, basic, EUR | -0.02 | -0.03 | 0.15 | -------------------------------------------------------------------------------- | Earnings per share, diluted, EUR | -0.02 | -0.03 | 0.15 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order book, MEUR | 16.8 | 15.9 | 17.5 | -------------------------------------------------------------------------------- | Cash flow, MEUR | -5.6 | -13.0 | -2.8 | -------------------------------------------------------------------------------- | Operating cash flow, MEUR | -1.5 | -7.1 | -2.9 | -------------------------------------------------------------------------------- | Cash funds, MEUR | 11.8 | 7.3 | 17.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity ratio, % | 83.9 | 85.1 | 83.7 | -------------------------------------------------------------------------------- | Gearing, % | -16.2 | -10.8 | -22.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel at end of period | 365 | 352 | 355 | -------------------------------------------------------------------------------- President and CEO Jarmo Niemi: ”A typical feature in Tecnomen's business is for the first quarter to be weaker than the remaining quarters of the year. Taking this into account I am satisfied with the first quarter of 2008, since net sales and the operating result clearly improved from the previous year. Cash flow from operations was also much better than in the previous year, and our balance sheet remained strong, with cash funds of almost EUR 12 million. The order book exceeded the corresponding figure for the previous year, and service and maintenance net sales continued to grow from the previous year. A higher than normal proportion of materials depressed the profit margin for the period, because hardware accounted for a major part of projects. The continuing decline of the US dollar also weakened the result. The performance of the Messaging business unit remained strong. The unit's net sales increased 58% and the operating profit was at an encouraging level. Net sales of the Charging business unit were low, as in the previous year, and the operating result was a loss. Major orders for expansions have already been received since the end of the first quarter. Deliveries for these will be made mainly during the second quarter, which will improve its figures. We are continuing our investments in the IP-based NGM platform, which are generating increased net sales and healthy profits. During 2008 the main focus for investments is in further developing the IP-based Convergent Charging product and in opening up new market areas. The impact of these investments can be seen in the increased capitalization of development costs in the first quarter, and these steps are expected to significantly boost growth and profitability in the Charging business in the coming years.” SALES AND NET SALES Tecnomen's net sales in the review period increased by 37.4 per cent to EUR 15.2 (11.0) million. EUR 10.1 million of the sales in the review period has been recognised in accordance with IAS 11 (Construction contracts) and EUR 5.0 million in accordance with IAS 18 (Revenues). Net sales by geographical area were: Americas 26.0 per cent (44.9 %), EMEA 50.5 per cent (52.2 %) and APAC 23.6 per cent (2.9 %). Net sales by product line were: Messaging 81.7 per cent (71.6 %) and Charging 18.3 per cent (28.4 %). Sales through global partners totalled EUR 2.7 (3.2) million or 17.6 per cent (28.6 %) of net sales. Maintenance and service sales totalled EUR 3.8 million or 25.0 per cent (29.1 %) of net sales. The order book stood at EUR 16.8 (15.9) million at the end of the review period. Americas accounted for 35.1 per cent of the order book, EMEA for 42.4 per cent and APAC for 22.4 per cent. OPERATING RESULT The operating result for the review period was EUR -0.4 (-2.0) million. The result for the period before taxes was EUR -0.4 (-1.7) million. The result for the review period was weakened by higher than normal costs for projects recognized in the period and by the impact of the declining US dollar, for which an exchange rate difference was recorded that reduced the operating profit by EUR 1.0 million. Net sales were higher than in the 2007 period for comparison but much lower than the average per quarter for the past two years. Earnings per share were EUR -0.02 (-0.03). Equity per share at the end of the period was EUR 1.23 (1.15). FINANCING AND INVESTMENTS Tecnomen's liquid assets totalled EUR 11.8 (7.3) million. The balance sheet total on 31 March 2008 stood at EUR 86.4 (79.6) million. Interest-bearing liabilities amounted to EUR 0.0 (0.0) million. The debt to equity ratio (gearing) was -16.2 per cent (-10.8 %). The balance sheet structure remained strong and the equity ratio on 31 March 2008 was 83.9 per cent (85.1 %). Tecnomen's gross capital expenditure during the review period, excluding the capitalisation of development costs, was EUR 0.2 (0.5) million or 1.3 per cent (4.2 %) of net sales. The cash flow in the review period was EUR -5.6 million, which included dividend payments of EUR 4.1 million. Financial income and expenses during the review period totalled EUR 0.0 (0.3) million. The net effect of assessing foreign currency balance sheet items was EUR -0.1 (0.1) million, loss from assessing the fair value of reserves was EUR -0.0 (-0.2) million, and other financial income totalled EUR 0.2 (0.3) million. At the end of the review period, the company had hedged 88 % of its foreign currency position, which includes balance sheet items and also the order book. -------------------------------------------------------------------------------- | CHANGE IN WORKING CAPITAL, MEUR (increase - / | 1-3/08 | 1-3/07 | | decrease +) | | | -------------------------------------------------------------------------------- | Change in accounts receivable and advances | 1.4 | -2.0 | -------------------------------------------------------------------------------- | Change in other short-term receivables, | 0.9 | -0.7 | | non-interest bearing | | | -------------------------------------------------------------------------------- | Change in inventories | -0.1 | -0.7 | -------------------------------------------------------------------------------- | Change in accounts payable and advances | -2.1 | -0.8 | -------------------------------------------------------------------------------- | Change in other current liabilities, | 0.7 | 0.0 | | non-interest bearing | | | -------------------------------------------------------------------------------- | CHANGE IN WORKING CAPITAL, TOTAL | 0.9 | -4.3 | -------------------------------------------------------------------------------- MARKETS Messaging Tecnomen delivered Messaging expansions in the Asia Pacific region and in Latin America. NGM systems were delivered mainly in Europe. Several maintenance contracts were renewed for 2008. Charging The growth in subscriber numbers continued in South and Central America and in Africa. During the first quarter Tecnomen continued to complete major projects that had started the previous year. Maintenance contracts were renewed and major expansion orders are expected to take place during the second quarter (see ‘Events after the end of the period'). RESEARCH AND DEVELOPMENT Research and development costs during the review period were EUR 4.3 (4.0) million, corresponding to 28.3 per cent (36.1 %) of net sales. EUR 2.4 (1.5) million of development costs have been capitalised during the review period and will be amortised over 3-5 years from the start of commercial use. R&D costs of EUR 0.8 (0.5) million were amortised during the review period. PERSONNEL At the end of March 2008 Tecnomen employed 365 (352) persons, of whom 92 (94) worked in Finland and 273 (258) elsewhere. The company employed on average 363 (358) people during the review period. Personnel by geographical area were as follows: -------------------------------------------------------------------------------- | | 1-3/2008 | 1-3/2007 | 2007 | -------------------------------------------------------------------------------- | Personnel, at end of period | 365 | 352 | 355 | -------------------------------------------------------------------------------- | Americas | 67 | 64 | 67 | -------------------------------------------------------------------------------- | EMEA | 269 | 263 | 261 | -------------------------------------------------------------------------------- | APAC | 29 | 25 | 27 | -------------------------------------------------------------------------------- | Personnel, average | 363 | 358 | 354 | -------------------------------------------------------------------------------- | Personnel expenses before R&D | 6.4 | 6.4 | 25.3 | | capitalisation (MEUR) | | | | -------------------------------------------------------------------------------- TECNOMEN SHARES AND SHARE CAPITAL At the end of March 2008 the shareholders' equity of Tecnomen Corporation stood at EUR 72.6 (67.5) 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 per cent of the company's share capital and votes. Equity per share was EUR 1.23 (1.15). A total of 5,612,046 Tecnomen shares (EUR 6,297,657) were traded on the Helsinki Exchanges during the period 2 January - 31 March 2008, representing 9.47 per cent of the total number of shares. The highest share price quoted in the period was EUR 1.27 and the lowest EUR 0.95. The average quoted price was EUR 1.12 and the closing price on 31 March 2008 was EUR 1.07. The market capitalisation of the share stock at the end of the period was EUR 63,399,723. ANNUAL GENERAL MEETING The Annual General Meeting of Tecnomen Corporation held on 12 March 2008 approved the 2007 financial statements and discharged the Board of Directors and President from liability for the 2007 financial year. The AGM resolved, in accordance with the Board of Directors' proposal, to pay a dividend of EUR 0.07 per share for 2007. The dividend was paid to shareholders who were registered on the record date 17 March 2008 in the company's shareholder register maintained by the Finnish Central Securities Depository Ltd. The dividend was paid on 26 March 2008. Board of Directors The Annual General Meeting confirmed that Tecnomen's Board of Directors would have seven (7) members. The following Board members were re-elected: Lauri Ratia, Carl-Johan Numelin, Christer Sumelius, Timo Toivila and Johan Hammarén. Harri Koponen and Hannu Turunen were elected as new members to the Board. According to the decision taken at the preliminary meeting of the Board, Lauri Ratia continues as Chairman and Carl-Johan Numelin as Vice Chairman of the Board. The period of office for Tecnomen's current Board of Directors will end at the end of the 2009 Annual General Meeting. Auditors KPMG Oy Ab, Authorised Public Accountants, will continue as the company's auditors, with Sixten Nyman, APA, as responsible auditor, until the end of the 2009 Annual General Meeting of Shareholders. CURRENT AUTHORISATIONS The Board of Directors was authorised to decide on acquiring a maximum of 5,790,000 of the Company's own shares. Own shares may be acquired with unrestricted shareholders' equity otherwise than in proportion to the holdings of the shareholders through public trading of the securities on the Helsinki Stock Exchange at the market price of the shares in public trading 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. The Board of Directors has the right to decide on other terms of the share acquisition. This authorisation replaces the authorisation given by the Annual General Meeting on 14 March 2007 and is valid for one year from the decision of the Annual General Meeting. The Board was authorised 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. The Board was authorised 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. The Board of Directors also has the right to grant the special rights referred to in Chapter 10, Section 1 of the Companies Act, which carry the right to receive, against payment, new shares of the Company or the Company's own shares held by the Company in such a manner that the subscription price of the shares is paid in cash or by using the subscriber's receivable to set off the subscription price. The subscription price of the new shares and the consideration payable for the Company's own shares may be recorded partially or fully in the invested non-restricted equity fund or in the share capital in the extent and manner decided by the Board of Directors. The Board of Directors shall decide on other terms and conditions related to the share issues and granting of the special rights. These authorisations replace the authorisations given by the Annual General Meeting on 14 March 2007 and are valid for two years from the decision of the Annual General Meeting. STOCK OPTION PROGRAMMES The company currently has a 2002 stock option programme and a 2006 stock option programme. In the 2002 stock option scheme, the current series were the 2002D stock option. The subscription period for them is 1 April 2006 - 30 April 2008. The share subscription price for the 2002D stock option is EUR 1.04. The subscription price for the 2002D stock option has been reduced by the amount of the dividend paid per share (EUR 0.07). During the review period no shares were subscribed with the stock options. 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 2.54, for 2006B stock options EUR 1.39, and for 2006C stock options EUR 1.05. The subscription prices for the 2006A, 2006B and 2006C stock options have been reduced by the amount of the dividend paid per share (EUR 0.07). 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 2,591,000 stock options remain on 31 March 2008 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 4.19% of the Company's shares and the votes carried by the shares after any increase in share capital. On 31 March 2008 the Company still held 965,000 of all the current stock options. The issued stock options had a maximum diluting effect on 31 March 2008 of 2.67%. 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 and success 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. SALE OF PROPERTY Tecnomen announced in a stock exchange release on 25 January 2008 that it was examining the possibility of selling the headquarters property it owns. On 10 March 2008 the Group signed a letter of intent with a buyer, and management consider it likely that the sale will be completed during the second quarter of 2008. The asset, which is classified as held for sale, is shown in the balance sheet of 31 March 2008 as a separate item under ‘Non-current assets held for sale'. In segment reporting the asset is split between the business segments such that the Messaging product line has 75 % and Charging has 25 %. EVENTS AFTER THE END OF THE PERIOD Tecnomen has received major orders in April in Latin America for expansions to the Tecnomen Convergent Charging system. These orders have a combined value of USD 7.5 million and will be delivered in the second quarter of 2008. PROSPECTS in 2008 The overall market for Messaging and Charging in 2008 is expected to remain unchanged from the previous year. The market for conventional proprietary systems is declining but for IP-based solutions the market is growing. Uncertainty has increased in the global economy and this, coupled with changes in exchange rates, is intensifying competition in certain markets. Net sales in 2008 are expected to be at the same level as in 2007. To safeguard its growth potential in the coming years and through this a better financial performance, Tecnomen has decided to put much effort into the new convergent charging products of its Charging business and into new markets. 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. FINANCIAL INFORMATION Tecnomen will publish its following interim reports as follows: 1-6/2008 Wednesday, 13 August 1-9/2008 Wednesday, 22 October Tecnomen is holding a conference to announce its results for the first quarter of 2008 at 10.00 am on 23 April 2008 at the Hotel Scandic Simonkenttä, Simonkatu 9, 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 OMX Nordic Exchange Helsinki Oy Main media www.tecnomen.com -------------------------------------------------------------------------------- | CONSOLIDATED INCOME | 1-3/2008 | 1-3/2007 | 2007 | | STATEMENT, MEUR | | | | -------------------------------------------------------------------------------- | NET SALES | 15.2 | 11.0 | 70.1 | -------------------------------------------------------------------------------- | Other operating income | 0.0 | 0.0 | 0.2 | -------------------------------------------------------------------------------- | Materials and services | -4.3 | -1.6 | -15.2 | -------------------------------------------------------------------------------- | Employee benefit expenses | -5.5 | -6.1 | -23.3 | -------------------------------------------------------------------------------- | Depreciation | -1.4 | -1.0 | -4.6 | -------------------------------------------------------------------------------- | Other operating expenses | -4.3 | -4.3 | -18.4 | -------------------------------------------------------------------------------- | OPERATING RESULT | -0.4 | -2.0 | 8.9 | -------------------------------------------------------------------------------- | Financial income | 0.3 | 0.7 | 1.5 | -------------------------------------------------------------------------------- | Financial expenses | -0.2 | -0.4 | -0.5 | -------------------------------------------------------------------------------- | RESULT BEFORE TAXES | -0.4 | -1.7 | 10.0 | -------------------------------------------------------------------------------- | Income taxes | -0.9 | 0.1 | -1.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | RESULT FOR THE PERIOD | -1.3 | -1.5 | 8.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, basic, | -0.02 | -0.03 | 0.15 | | EUR | | | | -------------------------------------------------------------------------------- | Earnings per share, diluted, | -0.02 | -0.03 | 0.15 | | EUR | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET, | 31.3.2008 | 31.12.2007 | 31.3.2007 | | MEUR | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Goodwill | 0.7 | 0.7 | 0.7 | -------------------------------------------------------------------------------- | Other intangible assets | 17.4 | 15.8 | 11.7 | -------------------------------------------------------------------------------- | Tangible assets | 3.6 | 8.1 | 8.6 | -------------------------------------------------------------------------------- | Long-term trade and other | 0.5 | 0.2 | 0.6 | | receivables | | | | -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Inventories | 2.5 | 2.4 | 2.6 | -------------------------------------------------------------------------------- | Trade receivables | 22.3 | 25.8 | 28.4 | -------------------------------------------------------------------------------- | Other receivables | 23.6 | 24.8 | 19.8 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 11.8 | 17.5 | 7.3 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Non-current assets held for | 4.1 | | | | sale | | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 86.4 | 95.2 | 79.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 72.6 | 78.0 | 67.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Long-term non-interest bearing | 0.0 | 0.0 | 0.1 | | liabilities | | | | -------------------------------------------------------------------------------- | Deferred tax liability | 3.9 | 3.4 | 2.4 | -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Short-term | 10.0 | 13.8 | 9.7 | | non-interest-bearing | | | | | liabilities | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | 86.4 | 95.2 | 79.6 | -------------------------------------------------------------------------------- CHANGE IN SHAREHOLDERS' EQUITY, MEUR -------------------------------------------------------------------------------- | MEUR | Share | Shar | Own | Transla | Invested | Other | Other | Total | | | capi- | e | sha | tion | non-rest | reser | reserve | | | | tal | prem | res | differe | ricted | -ves | s | | | | | ium | | nce | equity | | | | | | | fund | | | reserve | | | | -------------------------------------------------------------------------------- | Sharehol | 4.7 | 0.8 | -0. | 0.2 | 0.3 | 54.7 | 17.4 | 78.0 | | ders' | | | 1 | | | | | | | eq | | | | | | | | | | uity | | | | | | | | | | 1 Jan. | | | | | | | | | | 2008 | | | | | | | | | -------------------------------------------------------------------------------- | Translat | | | | | -0.0 | | | -0.0 | | ion | | | | | | | | | | differen | | | | | | | | | | ce | | | | | | | | | -------------------------------------------------------------------------------- | Net gain | | | | | -0.0 | | | -0.0 | | recognis | | | | | | | | | | ed | | | | | | | | | | directly | | | | | | | | | | in | | | | | | | | | | sharehol | | | | | | | | | | ders' | | | | | | | | | | equity | | | | | | | | | -------------------------------------------------------------------------------- | Result | | | | | | | -1.3 | -1.3 | | for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | | | -0.0 | | -1.3 | -1.3 | | profits | | | | | | | | | | and | | | | | | | | | | losses | | | | | | | | | | recognis | | | | | | | | | | ed | | | | | | | | | | during | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | | -4.1 | | -4.1 | | paid | | | | | | | | | -------------------------------------------------------------------------------- | Share-ba | | | | | | | 0.1 | 0.1 | | sed | | | | | | | | | | payments | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | -0.2 | -0.2 | | adjustme | | | | | | | | | | nts | | | | | | | | | -------------------------------------------------------------------------------- | Sharehol | 4.7 | 0.8 | -0. | 0.2 | 0.3 | 50.6 | 16.3 | 72.6 | | ders' | | | 1 | | | | | | | equity | | | | | | | | | | 31 Mar. | | | | | | | | | | 2008 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | MEUR | Share | Share | Own | Transl | Investe | Other | Retai | Total | | | capi | premi | shar | ation | d | reser | ned | | | | tal | um | es | differ | non-res | ves | e | | | | | fund | | ence | tricted | | arnin | | | | | | | | equity | | gs | | | | | | | | reserve | | | | -------------------------------------------------------------------------------- | Sharehol | 4.7 | 0.8 | -0.1 | 0.2 | 0.0 | 60.6 | 8.4 | 77.3 | | ders' | | | | | | | | | | equity | | | | | | | | | | 1 Jan. | | | | | | | | | | 2007 | | | | | | | | | -------------------------------------------------------------------------------- | Translat | | | | 0.0 | | | | 0.0 | | ion | | | | | | | | | | diff | | | | | | | | | | erence | | | | | | | | | -------------------------------------------------------------------------------- | Net gain | | | | 0.0 | | | | 0.0 | | recognis | | | | | | | | | | ed | | | | | | | | | | directly | | | | | | | | | | in | | | | | | | | | | sharehol | | | | | | | | | | ders' | | | | | | | | | | equity | | | | | | | | | -------------------------------------------------------------------------------- | Result | | | | | | | -1.5 | -1.5 | | for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | | 0.0 | | | -1.5 | -1.5 | | profits | | | | | | | | | | and | | | | | | | | | | losses | | | | | | | | | | recognis | | | | | | | | | | ed | | | | | | | | | | during | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Capital | | | | | | -5.9 | | -5.9 | | repaymen | | | | | | | | | | t | | | | | | | | | -------------------------------------------------------------------------------- | Share-ba | | | | | | | 0.1 | 0.1 | | sed | | | | | | | | | | payments | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | 0.1 | 0.1 | | adjustme | | | | | | | | | | nts | | | | | | | | | -------------------------------------------------------------------------------- | Sharehol | 4.7 | 0.8 | -0.1 | 0.2 | | 54.7 | 7.1 | 67.5 | | ders' | | | | | | | | | | equity | | | | | | | | | | 3 | | | | | | | | | | 1 Mar. | | | | | | | | | | 2007 | | | | | | | | | -------------------------------------------------------------------------------- A capital repayment of altogether EUR 5,883,317.80, or EUR 0.10 per share, was made on 58,833,178 shares in March 2007. -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW STATEMENT, | 1-3/2008 | 1-3/2007 | | | MEUR | | | | -------------------------------------------------------------------------------- | Cash flow from operating activities | | | | -------------------------------------------------------------------------------- | Result for the period | -1.3 | -1.5 | | -------------------------------------------------------------------------------- | Adjustments | 1.1 | 0.6 | | -------------------------------------------------------------------------------- | Interest income | -0.3 | -0.6 | | -------------------------------------------------------------------------------- | Interest expense | 0.2 | 0.3 | | -------------------------------------------------------------------------------- | Income taxes | 0.9 | 0.1 | | -------------------------------------------------------------------------------- | Other adjustments | -0.4 | -0.1 | | -------------------------------------------------------------------------------- | Changes in working capital | 0.9 | -4.3 | | -------------------------------------------------------------------------------- | Interest paid | -0.0 | -0.0 | | -------------------------------------------------------------------------------- | Interest received | 0.2 | 0.4 | | -------------------------------------------------------------------------------- | Income taxes paid | -0.2 | -0.0 | | -------------------------------------------------------------------------------- | Net cash flow from operating | 1.1 | -5.1 | | | activities | | | | -------------------------------------------------------------------------------- | Cash flow from investments | | | | -------------------------------------------------------------------------------- | Investments in intangible assets | -2.4 | -1.5 | | -------------------------------------------------------------------------------- | Investments in tangible assets | -0.2 | -0.5 | | -------------------------------------------------------------------------------- | Net cash flow from investments | -2.6 | -2.0 | | -------------------------------------------------------------------------------- | Cash flow from financing activities | | | | -------------------------------------------------------------------------------- | Capital repayment | | -5.9 | | -------------------------------------------------------------------------------- | Dividends paid | -4.1 | | | -------------------------------------------------------------------------------- | Net cash flow from financing | -4.1 | -5.9 | | -------------------------------------------------------------------------------- | Increase (+) and decrease (-) in | -5.6 | -13.0 | | | liquid funds | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liquid funds on 1 Jan. | 17.5 | 20.4 | | -------------------------------------------------------------------------------- | Impact of changes in exchange rates | -0.1 | 0.0 | | -------------------------------------------------------------------------------- | Change in fair value of investments | -0.0 | -0.2 | | -------------------------------------------------------------------------------- | Liquid funds on 31 March | 11.8 | 7.3 | | -------------------------------------------------------------------------------- | Change | -5.6 | -13.0 | | -------------------------------------------------------------------------------- | SEGMENT INFORMATION | | | | -------------------------------------------------------------------------------- | BUSINESS SEGMENTS | 1-3/2008 | 1-3/2007 | 2007 | | (primary segment information) | | | | | NET SALES, MEUR | | | | -------------------------------------------------------------------------------- | Messaging | 12.4 | 7.9 | 38.3 | -------------------------------------------------------------------------------- | Charging | 2.8 | 3.1 | 31.8 | -------------------------------------------------------------------------------- | TOTAL | 15.2 | 11.0 | 70.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GEOGRAPHICAL SEGMENTS | 1-3/2008 | 1-3/2007 | 2007 | | (secondary segment information) | | | | | NET SALES, MEUR | | | | -------------------------------------------------------------------------------- | Americas | 3.9 | 5.0 | 37.7 | -------------------------------------------------------------------------------- | EMEA | 7.7 | 5.8 | 26.6 | -------------------------------------------------------------------------------- | APAC | 3.6 | 0.3 | 5.8 | -------------------------------------------------------------------------------- | TOTAL | 15.2 | 11.0 | 70.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED KEY FINANCIAL | 1-3/2008 | 1-3/2007 | 2007 | | FIGURES, MEUR | | | | -------------------------------------------------------------------------------- | Return on investment, % | -0.7 | -7.3 | 13.6 | -------------------------------------------------------------------------------- | Return on equity, % | -6.7 | -8.7 | 11.4 | -------------------------------------------------------------------------------- | Equity ratio, % | 83.9 | 85.1 | 83.7 | -------------------------------------------------------------------------------- | Debt/equity ratio (gearing), % | -16.2 | -10.8 | -22.4 | -------------------------------------------------------------------------------- | Investments | 0.2 | 0.5 | 1.2 | -------------------------------------------------------------------------------- | % of net sales | 1.3 | 4.2 | 1.8 | -------------------------------------------------------------------------------- | Research and development | 4.3 | 4.0 | 16.1 | -------------------------------------------------------------------------------- | % of net sales | 28.3 | 36.1 | 22.9 | -------------------------------------------------------------------------------- | Order book | 16.8 | 15.9 | 17.5 | -------------------------------------------------------------------------------- | Personnel, average | 363 | 358 | 354 | -------------------------------------------------------------------------------- | Personnel, at end of period | 365 | 352 | 355 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED KEY FIGURES PER | 1-3/2008 | 1-3/2007 | 2007 | | SHARE, MEUR | | | | -------------------------------------------------------------------------------- | Earnings per share, basic, EUR | -0.02 | -0.03 | 0.15 | -------------------------------------------------------------------------------- | Earnings per share, diluted, | -0.02 | -0.03 | 0.15 | | EUR | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | 1.23 | 1.15 | 1.32 | -------------------------------------------------------------------------------- | Number of shares at end of | 59,252 | 59,006 | 59,252 | | period, x 1,000 | | | | -------------------------------------------------------------------------------- | Number of shares on average, x | 59,117 | 58,871 | 58,965 | | 1,000 | | | | -------------------------------------------------------------------------------- | Share price, EUR | | | | -------------------------------------------------------------------------------- | Average price | 1.12 | 1.56 | 1.40 | -------------------------------------------------------------------------------- | Lowest price | 0.95 | 1.29 | 1.15 | -------------------------------------------------------------------------------- | Highest price | 1.27 | 1.83 | 1.83 | -------------------------------------------------------------------------------- | Share price at end of period | 1.07 | 1.44 | 1.24 | -------------------------------------------------------------------------------- | Market capitalisation of issued | 63.4 | 85.0 | 73.3 | | stock at end of period, MEUR | | | | -------------------------------------------------------------------------------- | Share turnover, million shares | 5.6 | 11.8 | 38.7 | -------------------------------------------------------------------------------- | Share turnover, % of total | 9.5 | 20.1 | 65.4 | -------------------------------------------------------------------------------- | Share turnover, MEUR | 6.3 | 18.5 | 53.9 | -------------------------------------------------------------------------------- OPERATING LEASES, MEUR -------------------------------------------------------------------------------- | Operating leases | 1-3/2008 | 2007 | -------------------------------------------------------------------------------- | Less than one year | 0.5 | 0.5 | -------------------------------------------------------------------------------- | Between one and five years | 0.7 | 0.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CONTINGENT LIABILITIES, | 1-3/2008 | 2007 | | MEUR | | | -------------------------------------------------------------------------------- | Pledges given | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Other own liabilities | | | -------------------------------------------------------------------------------- | Restriction on real estate in Ireland | 0.4 | 0.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KEY FIGURES PER | 1Q/08 | 4Q/07 | 3Q/07 | 2Q/07 | 1Q/07 | 4Q/06 | | QUARTER, MEUR | | | | | | | -------------------------------------------------------------------------------- | Net sales, MEUR | 15.2 | 19.2 | 19.1 | 20.8 | 11.0 | 20.1 | -------------------------------------------------------------------------------- | Net sales, change % | 37.4 | -4.7 | 12.9 | 6.2 | -27.3 | 12.5 | -------------------------------------------------------------------------------- | Operating result, MEUR | -0.4 | 1.8 | 5.2 | 3.9 | -2.0 | 0.6 | -------------------------------------------------------------------------------- | % of net sales | -2.6 | 9.3 | 27.2 | 18.6 | -17.7 | 3.0 | -------------------------------------------------------------------------------- | Result before taxes, | -0.4 | 2.7 | 4.8 | 4.2 | -1.7 | 0.5 | | MEUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel at end of | 365 | 355 | 352 | 347 | 352 | 374 | | period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, | -0.02 | 0.04 | 0.08 | 0.06 | -0.03 | -0.01 | | basic, EUR | | | | | | | -------------------------------------------------------------------------------- | Earnings per share, | -0.02 | 0.04 | 0.07 | 0.06 | -0.03 | -0.01 | | diluted, EUR | | | | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | 1.23 | 1.32 | 1.28 | 1.21 | 1.15 | 1.27 | -------------------------------------------------------------------------------- | Net interest-bearing | -11.8 | -17.5 | -9.2 | -6.3 | -7.3 | -20.4 | | liabilities, MEUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order book, MEUR | 16.8 | 17.5 | 17.1 | 20.5 | 15.9 | 15.0 | -------------------------------------------------------------------------------- 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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