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Tecnotree Corporation Interim Report 1 January - 30 September 2011 (unaudited)

Tecnotree Corporation
Stock Exchange Release
26 October 2011 at 8.30 am

Positive profit performance continues

Disclosure Procedure

Tecnotree Corporation follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority and hereby publishes its interim report January-September 2011 enclosed to this stock exchange release. Tecnotree’s interim report January-September 2011 is attached to this release in pdf format and is also available on the company's web site at www.tecnotree.com.

 

• Third quarter net sales totalled EUR 17.2 million (EUR 13.3 million in the previous year).
• The adjusted operating profit* was EUR 1.9 (-0.7) million.
• Net sales for the full nine-month period were EUR 46.2 (46.7) million and the adjusted operating profit was EUR 0.3 (0.7) million.

• The order book at the end of the period stood at EUR 21.0 million (31 December 2010: EUR 14.3 million).

   

* Adjusted operating result = operating result before R & D capitalisation, amortization of this and one-time costs. Details of these are given in the section “Result analysis”.

Unless otherwise stated, all figures presented below are for the review period 1-9/2011 and the figures for comparison are for the corresponding period 1-9/2010.

President and CEO Kaj Hagros:

“Net sales in the first nine months of 2011 totalled EUR 46.2 million, which is virtually the same as in the same period in the previous year (EUR 46.7 million). However, third quarter net sales were 29% higher than in the corresponding period in 2010. After a weak first quarter in 2011, the second and third quarters were both improved periods and resulted positive adjusted result. Sales in Latin America, Middle East and Africa, and Europe were similar to that recorded in 2010, but the Asia and Pacific region produced a weaker result. Since the end of the third quarter the company has reorganized, with the aim of increasing productivity and profitability and providing higher quality customer service in 2012. The order book has recovered since the end of 2010. The strained economic situation has so far not had a noticeable impact on operators’ investment plans, which are critical for Tecnotree. Net sales and the adjusted operating result for 2011 are estimated to be at the same level as in 2010 or better than this.”

Prospects in 2011

The company is currently carrying out its strategy based on an expanded product range. Tecnotree is turning into an advanced supplier of telecommunications system solutions, operating in a broad sector. The company is anticipating new growth based on the new range of products and solutions that it announced on 14 February 2011.

Net sales and the adjusted operating result are expected to match or exceed the 2010 figures. Quarterly variations will be considerable.

The adjusted operating result is the operating result before capitalisation of development costs, amortization of these and one-time costs.

Financial information

Tecnotree is holding a conference for analysts and the media to announce its results for the third quarter of 2011 at 10.00 am on 26 October 2011 in the Pavilion conference room at the Scandic Hotel Simonkenttä, Simonkatu 9, Helsinki. The interim review will be presented by CEO Kaj Hagros and the conference will be held in Finnish. The material to be presented at the press conference will be available at www.tecnotree.com.


TECNOTREE CORPORATION

Board of Directors


FURTHER INFORMATION
Kaj Hagros, President and CEO, tel. +358 40 849 1749
Tuomas Wegelius, CFO, tel. +358 400 433 228


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

About Tecnotree
Tecnotree is a global provider of a broad range of telecom IT solutions focused on charging, billing, customer care, messaging and content services. Tecnotree empowers communication service providers to create and monetize a broad marketplace of digital services, and augment value across the customer lifecycle. Acknowledged for agility and commitment, Tecnotree has more than 900 employees serving over 120 operators globally. Tecnotree is listed on the main list of NASDAQ OMX Helsinki Ltd. with the trading code TEM1V. For more information on Tecnotree visit www.tecnotree.com .