TECNOMEN´S INTERIM REPORT 1 January - 31 March 2007 (unaudited)
Net sales in the review period declined on account of postponed orders by 27.3
per cent to EUR 11.0 (15.2) million, the operating result was EUR -2.0 (0.4)
million, and operating cash flow EUR -7.1 (-5.3)million. The order book stood at
the close of the period at EUR 15.9 (21.3) million. The company has received two
major new orders in April with a value of EUR 10 million.
--------------------------------------------------------------------------------
| KEY FIGURES | 1-3/07 | 1-3/06 | 2006 |
--------------------------------------------------------------------------------
| Net sales, MEUR | 11.0 | 15.2 | 71.8 |
--------------------------------------------------------------------------------
| Net sales, change % | -27.3 | 20.9 | 4.1 |
--------------------------------------------------------------------------------
| Operating result, MEUR | -2.0 | 0.4 | 4.9 |
--------------------------------------------------------------------------------
| % of net sales | -17.7 | 2.6 | 6.8 |
--------------------------------------------------------------------------------
| Profit before taxes, MEUR | -1.7 | 0.3 | 5.2 |
--------------------------------------------------------------------------------
| % of net sales | -15.3 | 1.8 | 7.3 |
--------------------------------------------------------------------------------
| Result for the period | -1.5 | -0.1 | 3.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, basic, EUR | -0.03 | -0.00 | 0.06 |
--------------------------------------------------------------------------------
| Earnings per share, diluted, EUR | -0.03 | -0.00 | 0.05 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book, MEUR | 15.9 | 21.3 | 15.0 |
--------------------------------------------------------------------------------
| Cash flow, MEUR | -13.0 | -5.3 | -12.8 |
--------------------------------------------------------------------------------
| Operating cash flow, MEUR | -7.1 | -5.3 | -6.6 |
--------------------------------------------------------------------------------
| Cash funds, MEUR | 7.3 | 27.8 | 20.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio, % | 85.1 | 84.1 | 84.3 |
--------------------------------------------------------------------------------
| Gearing, % | -10.8 | -36.0 | -27.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel at end of period | 352 | 387 | 374 |
--------------------------------------------------------------------------------
The interim report has been prepared in accordance with IFRS recognition and
measurement principles. Unless otherwise stated, all figures presented below are
for the review period 1-3/2007 and the figures for comparison are for the
corresponding period 1-3/2006.
The formula and principles for calculating the key figures presented in the
interim report are the same as those published in the 2006 Annual Report.
SALES AND NET SALES
Tecnomen's net sales in the review period declined due to postponed orders by
27.3 per cent to EUR 11.0 (15.2) million.
EUR 6.1 million of the sales in the review period has been recognised in
accordance with IAS 11 (Construction contracts) and EUR 4.9 million in
accordance with IAS 18 (Revenues).
Net sales by geographical area were: Americas 44.9 per cent (58.8 %), EMEA 52.2
per cent (24.9 %) and APAC 2.9 per cent (16.2 %).
Net sales by product line were: Messaging 71.6 per cent (43.1 %) and Charging
28.4 per cent (56.9 %).
Sales through global partners totalled EUR 3.2 (4.4) million or 28.6 per cent
(28.8 %) of net sales.
Maintenance and service sales totalled EUR 3.2 million or 29.1 per cent (15.3 %)
of net sales.
The order book stood at EUR 15.9 (21.3) million at the end of the review period.
Americas accounted for 30.5 per cent of the order book, EMEA for 61.5 per cent
and APAC for 8.1 per cent.
OPERATING RESULT
The operating result for the review period was EUR -2.0 (0.4) million.
The result for the period before taxes was EUR -1.7 (0.3) million.
The result for the review period was a loss due to low net sales. Tecnomen was
negotiating for major orders but these did not come during the first quarter.
Earnings per share were EUR -0.03 (-0.00). Equity per share at the end of the
period was EUR 1.15 (1.30).
FINANCING AND INVESTMENTS
Tecnomen's liquid assets totalled EUR 7.3 (27.8) million. Factors contributing
to the reduction in liquid assets from the previous year were the repayments of
capital to shareholders made in September 2006 and March 2007 totalling EUR 11.8
million. The balance sheet total on 31 March 2007 stood at EUR 79.6 (92.0)
million. Interest-bearing liabilities amounted to EUR 0.0 (0.5) million. The
debt to equity ratio (gearing) was -10.8 per cent (-36.0 %). The balance sheet
structure remained strong and the equity ratio on 31 March 2007 was 85.1 per
cent (84.1 %).
Tecnomen's gross capital expenditure during the review period, excluding the
capitalisation of development costs, was EUR 0.5 (0.6) million or 4.2 per cent
(3.9 %) of net sales.
The cash flow in the review period was EUR -13.0 million; the capital repayment
to shareholders accounted for EUR -5.9 million of this.
Financial income and expenses during the review period totalled EUR 0.3 (-0.1)
million. The net effect of assessing foreign currency balance sheet items was
EUR 0.1 (- 0.3) million, loss from assessing the fair value of reserves was EUR
-0.2 (0.1) million, and other financial income totalled EUR 0.3 (0.1) million.
--------------------------------------------------------------------------------
| CHANGE IN WORKING CAPITAL, MEUR (increase - / | 1-3/07 | 1-3/06 |
| decrease +) | | |
--------------------------------------------------------------------------------
| Change in accounts receivable and advances | -2.0 | 0.3 |
--------------------------------------------------------------------------------
| Change in other short-term receivables, | -0.7 | -3.2 |
| non-interest bearing | | |
--------------------------------------------------------------------------------
| Change in inventories | -0.7 | -2.1 |
--------------------------------------------------------------------------------
| Change in accounts payable and advances | -0.8 | 2.2 |
--------------------------------------------------------------------------------
| Change in other current liabilities, | 0.0 | -1.0 |
| non-interest bearing | | |
--------------------------------------------------------------------------------
| CHANGE IN WORKING CAPITAL, TOTAL | -4.3 | -3.8 |
--------------------------------------------------------------------------------
MARKETS
Messaging
During the first quarter Tecnomen continued several delivery projects for orders
received at the end of the previous year in Africa, the Middle East and Asia. In
addition Tecnomen obtained new orders for Messaging system expansions in Latin
America and signed a major new order in Africa. Net sales from service and
maintenance agreements are at a strong level especially in Europe.
Charging
The growth in subscriber numbers for prepaid systems continued at an encouraging
rate in Latin America and Africa. During the first quarter Tecnomen continued to
complete major projects that had started the previous year. Major expansion
orders are expected to take place later than in the previous year.
RESEARCH AND DEVELOPMENT
Research and development costs during the review period were EUR 4.0 (3.2)
million, corresponding to 36.1 per cent (21.2 %) of net sales. EUR 1.5 (1.8)
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 0.5 (0.1) million were amortised during the review period.
PERSONNEL
At the end of March 2007 Tecnomen employed 352 (387) persons, of whom 94 (127)
worked in Finland and 258 (260) elsewhere. The company employed on average 358
(379) people during the review period. Personnel by geographical area were as
follows:
--------------------------------------------------------------------------------
| | 1-3/2007 | 1-3/2006 | 2006 |
--------------------------------------------------------------------------------
| Personnel, at end of period | 352 | 387 | 374 |
--------------------------------------------------------------------------------
| Americas | 64 | 65 | 65 |
--------------------------------------------------------------------------------
| EMEA | 263 | 297 | 286 |
--------------------------------------------------------------------------------
| APAC | 25 | 25 | 23 |
--------------------------------------------------------------------------------
| Personnel, average | 358 | 379 | 387 |
--------------------------------------------------------------------------------
| Personnel expenses before R&D | 6.4 | 6.5 | 27.5 |
| capitalisation (MEUR) | | | |
--------------------------------------------------------------------------------
TECNOMEN SHARES AND SHARE CAPITAL
At the end of March 2007 the shareholders' equity of Tecnomen Corporation stood
at EUR 67.5 (75.8) million and the share capital was EUR 4,720,446.24, divided
into 59,005,578 shares. The company held 134,800 of these shares, which
represents 0.23 per cent of the company's share capital and votes. The shares
held by the company have an aggregate nominal value of EUR 10,784. Equity per
share was EUR 1.15 (1.30).
A total of 11,839,735 Tecnomen shares (EUR 18,484,570) were traded on the
Helsinki Exchanges during the period 2 January - 31 March 2007, representing
20.07 per cent of the total number of shares.
The highest share price quoted in the period was EUR 1.83 and the lowest EUR
1.29. The average quoted price was EUR 1.56 and the closing price on 31 March
2007 was EUR 1.44. The market capitalisation of the share stock at the end of
the period was EUR 84,968,032.
ANNUAL GENERAL MEETING
The Annual General Meeting of Tecnomen Corporation held on 14 March 2007
approved the 2006 financial statements and discharged the Board of Directors and
President from liability for the 2006 financial year. The AGM resolved, in
accordance with the Board of Directors' proposal, to distribute EUR 0.10 per
share from the unrestricted equity fund to the shareholders in proportion to
their holdings. Payment was made to shareholders registered on 19 March 2007 in
the company's shareholder register maintained by the Finnish Central Securities
Depository Ltd. The capital repayment date was 26 March 2007. The payment was
made on altogether 58,833,178 shares, giving an aggregate total payment of EUR
5,883,317.80. The capital repayment was not made on the shares in the company's
own possession (134,800 shares).
Board of Directors
The Annual General Meeting confirmed that Tecnomen's Board of Directors would
have six (6) members. The following Board members were re-elected: Lauri Ratia,
Carl-Johan Numelin, Keijo Olkkola, Christer Sumelius and Timo Toivila. Johan
Hammarén was elected as a new member 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 2008 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
2008 Annual General Meeting of Shareholders.
CURRENT AUTHORISATIONS
The Board of Directors was authorised 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 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
15 March 2006 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 15 March 2006 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.
The subscription periods for the 2002 stock options are: for the 2002B stock
option 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. The
share subscription price for stock option 2002B is EUR 1.46, for stock option
2002C EUR 0.24 and for stock option 2002D EUR 1.11. The subscription prices have
been reduced by the amount of the capital repayment per share (EUR 0.10).
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
company's share capital can rise by a maximum of EUR 160,080 as a result of
share subscriptions made with these stock options. 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. Tecnomen's Board of Directors has issued
436,000 2006A 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.
The company's share capital can rise in consequence of share subscriptions made
with the outstanding stock options by a maximum of EUR 243,080, which
corresponds to 5.15 per cent of the company's shares and votes carried by the
shares after the share subscriptions.
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.
EVENTS AFTER THE END OF THE PERIOD
On 17 April 2007 Tecnomen announced that it had won two major orders with a
total value of EUR 10 million. One order is for an expansion to a Convergent
Charging system in Latin America and the other is from a new client for
Messaging products in Africa. These projects will be delivered during the second
and third quarters of this year.
These orders are of significance because of their size, and they further
strengthen the position of both the Charging and the Messaging business units in
emerging markets where subscriber numbers continue to grow rapidly.
PROSPECTS
Net sales and operating result in 2007 are expected to be at the same level as
in 2006. The variations between the different quarters of the year are
considerable and similar to those in previous years. The largest orders in 2007
are expected later in the year than in 2006, so the second half of the year is
expected to make a greater contribution to net sales and operating result.
FINANCIAL INFORMATION
Tecnomen will publish its following interim reports as follows:
1-6/2007 Wednesday, 15 August
1-9/2007 Wednesday, 24 October
Tecnomen is holding a conference to announce its results for the first qarter of
2007 at 10.00 am on 25 April 2007 at the Bank Restaurant, Unioninkatu 22,
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 | 1-3/2007 | 1-3/2006 | 2006 |
| STATEMENT, MEUR | | | |
--------------------------------------------------------------------------------
| NET SALES | 11.0 | 15.2 | 71.8 |
--------------------------------------------------------------------------------
| Other operating income | 0.0 | 0.1 | 0.3 |
--------------------------------------------------------------------------------
| Materials and services | -1.6 | -4.4 | -18.8 |
--------------------------------------------------------------------------------
| Employee benefit expenses | -6.1 | -5.8 | -25.6 |
--------------------------------------------------------------------------------
| Depreciation | -1.0 | -0.6 | -3.0 |
--------------------------------------------------------------------------------
| Other operating expenses | -4.3 | -4.1 | -19.8 |
--------------------------------------------------------------------------------
| OPERATING RESULT | -2.0 | 0.4 | 4.9 |
--------------------------------------------------------------------------------
| Financial income | 0.7 | 0.5 | 2.1 |
--------------------------------------------------------------------------------
| Financial expenses | -0.4 | -0.6 | -1.7 |
--------------------------------------------------------------------------------
| RESULT BEFORE TAXES | -1.7 | 0.3 | 5.2 |
--------------------------------------------------------------------------------
| Income taxes | 0.1 | -0.4 | -2.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RESULT FOR THE PERIOD | -1.5 | -0.1 | 3.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, basic, | -0.03 | -0.00 | 0.06 |
| EUR | | | |
--------------------------------------------------------------------------------
| Earnings per share, diluted, | -0.03 | -0.00 | 0.05 |
| EUR | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.15 | 1.30 | 1.27 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET, | 31.3.2007 | 31.03.2006 | 31.12.2006 |
| MEUR | | | |
--------------------------------------------------------------------------------
| Long-term assets | | | |
--------------------------------------------------------------------------------
| Fixed assets | 21.0 | 16.6 | 20.1 |
--------------------------------------------------------------------------------
| Other long-term assets | 0.6 | 0.6 | 0.5 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 2.6 | 4.4 | 1.9 |
--------------------------------------------------------------------------------
| Account receivables | 28.4 | 21.9 | 26.2 |
--------------------------------------------------------------------------------
| Other financial assets | 19.8 | 20.7 | 19.7 |
--------------------------------------------------------------------------------
| Financial securities | 2.2 | 21.8 | 9.4 |
--------------------------------------------------------------------------------
| Cash and bank balances | 5.1 | 6.0 | 11.1 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| ASSETS | 79.6 | 92.0 | 88.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity | 67.5 | 75.8 | 74.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-term liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 0.0 | 0.4 | 0.0 |
--------------------------------------------------------------------------------
| Non-interest bearing | 0.1 | 0.3 | 0.0 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 2.4 | 1.9 | 2.6 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Non-interest bearing | 9.7 | 13.5 | 11.5 |
| liabilities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 79.6 | 92.0 | 88.8 |
--------------------------------------------------------------------------------
CHANGE IN SHAREHOLDERS' EQUITY, MEUR
--------------------------------------------------------------------------------
| MEUR | Shar | Share | Other | Own | Translati | Inves- | Retai | Total |
| | e | premi | reser | sha- | on | ted | ned | |
| | capi | um | -ves | res | differenc | non-re | ear-n | |
| | -tal | fund | | | e | strict | ings | |
| | | | | | | ed | | |
| | | | | | | equity | | |
| | | | | | | reserv | | |
| | | | | | | e | | |
--------------------------------------------------------------------------------
| Sharehol | 4.7 | 0.8 | 60.6 | -0.1 | 0.2 | 0.0 | 8.4 | 74.6 |
| ders' | | | | | | | | |
| eq | | | | | | | | |
| uity | | | | | | | | |
| 1 Jan. | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Translat | | | | | 0.0 | | | 0.0 |
| ion | | | | | | | | |
| differen | | | | | | | | |
| ce | | | | | | | | |
--------------------------------------------------------------------------------
| Net gain | | | | | 0.0 | | | 0.0 |
| recognis | | | | | | | | |
| ed | | | | | | | | |
| directly | | | | | | | | |
| in | | | | | | | | |
| sharehol | | | | | | | | |
| ders' | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Result | | | | | | | -1.5 | -1.5 |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | | 0.0 | 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 | 54.7 | -0.1 | 0.2 | 0.0 | 7.1 | 67.5 |
| ders' | | | | | | | | |
| equity | | | | | | | | |
| 31 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.
--------------------------------------------------------------------------------
| MEUR | Share | Share | Other | Own | Translati | Retaine | Total |
| | capi | premi | reserv | share | on | d | |
| | tal | um | es | s | differ | earni | |
| | | fund | | | ence | ngs | |
--------------------------------------------------------------------------------
| Sharehold | 4.6 | 66.2 | 0.3 | -0.1 | 0.2 | 6.0 | 77.3 |
| ers' | | | | | | | |
| equity | | | | | | | |
| 1 Jan. | | | | | | | |
| 2006 | | | | | | | |
--------------------------------------------------------------------------------
| Translati | | | | | -0.2 | | -0.2 |
| on | | | | | | | |
| differ | | | | | | | |
| ence | | | | | | | |
--------------------------------------------------------------------------------
| Net gain | | | | | -0.2 | | -0.2 |
| recognise | | | | | | | |
| d | | | | | | | |
| directly | | | | | | | |
| in | | | | | | | |
| sharehold | | | | | | | |
| ers' | | | | | | | |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Result | | | | | | -0.1 | -0.1 |
| for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | | -0.2 | -0.1 | -0.3 |
| profits | | | | | | | |
| and | | | | | | | |
| losses | | | | | | | |
| recognise | | | | | | | |
| d during | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | -1.2 | -1.2 |
| paid | | | | | | | |
--------------------------------------------------------------------------------
| Share-bas | | | | | | 0.1 | 0.1 |
| ed | | | | | | | |
| payments | | | | | | | |
--------------------------------------------------------------------------------
| Sharehold | 4.6 | 66.2 | 0.3 | -0.1 | 0.0 | 4.8 | 75.8 |
| ers' | | | | | | | |
| equity | | | | | | | |
| 31 | | | | | | | |
| Mar. 2006 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT, MEUR | 1-3/2007 | 1-3/2006 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | |
--------------------------------------------------------------------------------
| Result for the period | -1.5 | -0.1 |
--------------------------------------------------------------------------------
| Adjustments | 0.6 | 0.8 |
--------------------------------------------------------------------------------
| Interest income | -0.6 | -0.2 |
--------------------------------------------------------------------------------
| Interest expense | 0.3 | 0.1 |
--------------------------------------------------------------------------------
| Income taxes | 0.1 | 0.4 |
--------------------------------------------------------------------------------
| Other adjustments | -0.1 | -0.1 |
--------------------------------------------------------------------------------
| Changes in working capital | -4.3 | -3.8 |
--------------------------------------------------------------------------------
| Interest paid | -0.0 | -0.0 |
--------------------------------------------------------------------------------
| Interest received | 0.4 | 0.0 |
--------------------------------------------------------------------------------
| Income taxes paid | -0.0 | -0.0 |
--------------------------------------------------------------------------------
| Net cash flow from operating activities | -5.1 | -2.9 |
--------------------------------------------------------------------------------
| Cash flow from investments | | |
--------------------------------------------------------------------------------
| Investments in intangible assets | -1.5 | -1.8 |
--------------------------------------------------------------------------------
| Investments in tangible assets | -0.5 | -0.7 |
--------------------------------------------------------------------------------
| Net cash flow from investments | -2.0 | -2.5 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | | |
--------------------------------------------------------------------------------
| Repayment of current loans | | -0.0 |
--------------------------------------------------------------------------------
| Capital repayment | -5.9 | |
--------------------------------------------------------------------------------
| Net cash flow from financing | -5.9 | -0.0 |
--------------------------------------------------------------------------------
| Increase (+) and decrease (-) in liquid | -13.0 | -5.3 |
| 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 | -0.1 |
--------------------------------------------------------------------------------
| Liquid funds on 31 March | 7.3 | 27.8 |
--------------------------------------------------------------------------------
| Change | -13.0 | -5.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED KEY FINANCIAL | 1-3/2007 | 1-3/2006 | 2006 |
| FIGURES, MEUR | | | |
--------------------------------------------------------------------------------
| Return on investment, % | -7.3 | 4.8 | 9.1 |
--------------------------------------------------------------------------------
| Return on equity, % | -8.7 | -0.7 | 4.3 |
--------------------------------------------------------------------------------
| Equity ratio, % | 85.1 | 84.1 | 84.3 |
--------------------------------------------------------------------------------
| Debt/equity ratio (gearing), % | -10.8 | -36.0 | -27.4 |
--------------------------------------------------------------------------------
| Investments | 0.5 | 0.6 | 2.4 |
--------------------------------------------------------------------------------
| % of net sales | 4.2 | 3.9 | 3.4 |
--------------------------------------------------------------------------------
| Research and development | 4.0 | 3.2 | 13.2 |
--------------------------------------------------------------------------------
| % of net sales | 36.1 | 21.2 | 18.4 |
--------------------------------------------------------------------------------
| Order book | 15.9 | 21.3 | 15.0 |
--------------------------------------------------------------------------------
| Personnel, average | 358 | 379 | 387 |
--------------------------------------------------------------------------------
| Personnel, at end of period | 352 | 387 | 374 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED KEY FIGURES PER | 1-3/2007 | 1-3/2006 | 2006 |
| SHARE, MEUR | | | |
--------------------------------------------------------------------------------
| Earnings per share, basic, EUR | -0.03 | -0.00 | 0.06 |
--------------------------------------------------------------------------------
| Earnings per share, diluted, | -0.03 | -0.00 | 0.05 |
| EUR | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.15 | 1.30 | 1.27 |
--------------------------------------------------------------------------------
| Number of shares at end of | 59,006 | 58,309 | 59,006 |
| period, x 1,000 | | | |
--------------------------------------------------------------------------------
| Number of shares on average, x | 58,871 | 58,309 | 58,673 |
| 1,000 | | | |
--------------------------------------------------------------------------------
| Share price, EUR | | | |
--------------------------------------------------------------------------------
| Average price | 1.56 | 2.73 | 2.01 |
--------------------------------------------------------------------------------
| Lowest price | 1.29 | 2.46 | 1.38 |
--------------------------------------------------------------------------------
| Highest price | 1.83 | 3.06 | 3.06 |
--------------------------------------------------------------------------------
| Share price at end of period | 1.44 | 2.97 | 1.68 |
--------------------------------------------------------------------------------
| Market capitalisation of issued | 85.0 | 173.2 | 99.1 |
| stock at end of period, MEUR | | | |
--------------------------------------------------------------------------------
| Share turnover, million shares | 11.8 | 11.7 | 59.8 |
--------------------------------------------------------------------------------
| Share turnover, % of total | 20.1 | 20.1 | 101.4 |
--------------------------------------------------------------------------------
| Share turnover, MEUR | 18.5 | 32.1 | 122.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CONTINGENT | 1-3/2007 | 1-3/2006 | 2006 |
| LIABILITIES, MEUR | | | |
--------------------------------------------------------------------------------
| Pledges given | | 0.6 | 0.6 |
--------------------------------------------------------------------------------
| For own debts | | | |
--------------------------------------------------------------------------------
| Mortgages | | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| For other own commitments | | | |
--------------------------------------------------------------------------------
| Mortgages | | 1.3 | 0.6 |
--------------------------------------------------------------------------------
| Chattel mortgages | | 0.2 | 0.0 |
--------------------------------------------------------------------------------
| Other own liabilities | 2.1 | 2.8 | 2.5 |
--------------------------------------------------------------------------------
| DERIVATIVE FINANCIAL | | | |
| INSTRUMENTS, MEUR | | | |
--------------------------------------------------------------------------------
| Currency forward contracts | | | |
--------------------------------------------------------------------------------
| Fair value | 6.0 | 2.6 | 13.0 |
--------------------------------------------------------------------------------
| Value of underlying instruments | 6.2 | 2.7 | 12.6 |
--------------------------------------------------------------------------------
| Flexible forwards | | | |
--------------------------------------------------------------------------------
| Fair value | 1.6 | | 11.7 |
--------------------------------------------------------------------------------
| Value of underlying instruments | 1.5 | | 11.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BUSINESS SEGMENTS | 1-3/2007 | 1-3/2006 |
| (primary segment information) | | |
| NET SALES, MEUR | | |
--------------------------------------------------------------------------------
| Messaging | 7.9 | 6.5 |
--------------------------------------------------------------------------------
| Charging | 3.1 | 8.6 |
--------------------------------------------------------------------------------
| TOTAL | 11.0 | 15.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GEOGRAPHICAL SEGMENTS | 1-3/2007 | 1-3/2006 |
| (secondary segment information) | | |
| NET SALES, MEUR | | |
--------------------------------------------------------------------------------
| Americas | 5.0 | 8.9 |
--------------------------------------------------------------------------------
| EMEA | 5.8 | 3.8 |
--------------------------------------------------------------------------------
| APAC | 0.3 | 2.5 |
--------------------------------------------------------------------------------
| TOTAL | 11.0 | 15.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES PER | 1Q/07 | 4Q/06 | 3Q/06 | 2Q/06 | 1Q/06 | 4Q/05 |
| QUARTER, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Net sales, MEUR | 11.0 | 20.1 | 16.9 | 19.6 | 15.2 | 17.9 |
--------------------------------------------------------------------------------
| Net sales, change % | -27.3 | 12.5 | -13.2 | 2.9 | 20.9 | 44.7 |
--------------------------------------------------------------------------------
| Operating result, MEUR | -2.0 | 0.6 | 0.9 | 3.0 | 0.4 | 3.2 |
--------------------------------------------------------------------------------
| % of net sales | -17.7 | 3.0 | 5.3 | 15.2 | 2.6 | 17.9 |
--------------------------------------------------------------------------------
| Result before taxes, | -1.7 | 0.5 | 1.7 | 2.8 | 0.3 | 3.2 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel at end of | 352 | 374 | 395 | 393 | 387 | 373 |
| period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | -0.03 | -0.01 | 0.02 | 0.01 | -0.00 | 0.05 |
| basic, EUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | -0.03 | -0.01 | 0.02 | 0.01 | -0.00 | 0.05 |
| diluted, EUR | | | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.15 | 1.27 | 1.27 | 1.35 | 1.30 | 1.33 |
--------------------------------------------------------------------------------
| Net interest-bearing | -7.3 | -20.4 | -23.5 | -27.5 | -27.3 | -32.8 |
| liabilities, MEUR | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book, MEUR | 15.9 | 15.0 | 18.5 | 16.0 | 21.3 | 27.9 |
--------------------------------------------------------------------------------
SHAREHOLDERS
The company's ten largest shareholders, excluding nominee registrations, on 31
March 2007:
--------------------------------------------------------------------------------
| | No. of shares | % |
--------------------------------------------------------------------------------
| Sampo Life Insurance Co. Ltd | 3,083,400 | 5.23 |
--------------------------------------------------------------------------------
| Hammaren Lars-Olof | 2,164,300 | 3.67 |
--------------------------------------------------------------------------------
| Sumelius Henning | 2,022,300 | 3.43 |
--------------------------------------------------------------------------------
| FIM Fenno Fund | 1,466,600 | 2.49 |
--------------------------------------------------------------------------------
| Kaleva Mutual Insurance Company | 1,300,000 | 2.20 |
--------------------------------------------------------------------------------
| Suupohja Cooperative Bank | 1,200,000 | 2.03 |
--------------------------------------------------------------------------------
| Sumelius Johanna Marina | 1,122,400 | 1.90 |
--------------------------------------------------------------------------------
| EQ Pikkujättiläiset/EQ Fund Corp. | 1,000,000 | 1.69 |
--------------------------------------------------------------------------------
| Varma, Mutual Employee Pension | 990,000 | 1.68 |
| Insurance Company | | |
--------------------------------------------------------------------------------
| Investsum Oy | 947,500 | 1.61 |
--------------------------------------------------------------------------------
| TOTAL | 15,296,500 | 25.93 |
--------------------------------------------------------------------------------
Ownership of Tecnomen shares, 31 March 2007
--------------------------------------------------------------------------------
| Shares | Holders | % | Shares and votes | % |
--------------------------------------------------------------------------------
| 1-100 | 474 | 7.46 | 27,889 | 0.05 |
--------------------------------------------------------------------------------
| 101-500 | 2,256 | 35.52 | 598,564 | 1.01 |
--------------------------------------------------------------------------------
| 501-1,000 | 1,125 | 17.71 | 921,031 | 1.56 |
--------------------------------------------------------------------------------
| 1,001-5,000 | 1,629 | 25.65 | 4,024,464 | 6.82 |
--------------------------------------------------------------------------------
| 5,001-10,000 | 419 | 6.60 | 3,249,317 | 5.51 |
--------------------------------------------------------------------------------
| 10,001-50,000 | 315 | 4.96 | 7,195,295 | 12.19 |
--------------------------------------------------------------------------------
| 50,001-100,000 | 49 | 0.77 | 3,479,353 | 5.90 |
--------------------------------------------------------------------------------
| 100,001-500,000 | 64 | 1.01 | 13,821,490 | 23.42 |
--------------------------------------------------------------------------------
| 500,001< | 20 | 0.32 | 25,650,575 | 43.47 |
--------------------------------------------------------------------------------
| Joint account | | | 37,600 | 0.06 |
--------------------------------------------------------------------------------
| Total | 6,351 | 100.00 | 59,005,578 | 100.00 |
--------------------------------------------------------------------------------
Ownership structure by sector, 31 March 2007
--------------------------------------------------------------------------------
| | No. of shares | % |
--------------------------------------------------------------------------------
| Companies | 5,377,689 | 9.11 |
--------------------------------------------------------------------------------
| Finance houses and insurance companies | 15,295,728 | 25.92 |
--------------------------------------------------------------------------------
| Public sector | 1,035,800 | 1.76 |
--------------------------------------------------------------------------------
| Non-profit making associations | 3,198,250 | 5.42 |
--------------------------------------------------------------------------------
| Households and private persons | 32,374,657 | 54.87 |
--------------------------------------------------------------------------------
| Foreign holders | 1,685,854 | 2.86 |
--------------------------------------------------------------------------------
| TOTAL | 58,967,978 | 99.94 |
--------------------------------------------------------------------------------
| Joint account | 37,600 | 0.06 |
--------------------------------------------------------------------------------
| Share capital | 59,005,578 | 100.00 |
--------------------------------------------------------------------------------
| Nominee registrations | 5,545,779 | 9.40 |
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Tecnotree Corporation, Finnoonniitynkuja 7, FIN-02271 Espoo, Finland, Tel +358 9 804 781 | Privacy Statement | Personal Profile
Tecnotree VAT no. FI16515770