Tecnomen Corporation INTERIM REPORT 28 April 2009 at 8.30 am TECNOMEN'S INTERIM REPORT 1 JANUARY - 31 MARCH 2009 (unaudited) Net sales in the first quarter of the year decreased 24.1 per cent from the corresponding period in the previous year to EUR 11.5 (15.2) million. The result for the period was EUR -1.7 (-1.3) million. The cash flow after investments was EUR 0.3 (-1.5) million. The order book at the close of the period stood at EUR 11.7 (16.8) million. -------------------------------------------------------------------------------- | KEY FIGURES | | 1-3/2009 | 1-3/2008 | 1-12/2008 | | -------------------------------------------------------------------------------- | Net sales, MEUR | | 11.5 | 15.2 | 77.2 | | -------------------------------------------------------------------------------- | Net sales, change % | | -24.1 | 37.4 | 10.1 | | -------------------------------------------------------------------------------- | Operating result, MEUR | | -1.7 | -0.4 | 11.5 | | -------------------------------------------------------------------------------- | % of net sales | | -14.9 | -2.6 | 14.9 | | -------------------------------------------------------------------------------- | Profit before taxes, MEUR | | -1.4 | -0.4 | 13.5 | | -------------------------------------------------------------------------------- | % of net sales | | -12.2 | -2.4 | 17.5 | | -------------------------------------------------------------------------------- | Result for the period | | -1.7 | -1.3 | 10.2 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, basic, | | -0.03 | -0.02 | 0.17 | | | EUR | | | | | | -------------------------------------------------------------------------------- | Earnings per share, diluted, | | -0.03 | -0.02 | 0.17 | | | EUR | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order book, MEUR | | 11.7 | 16.8 | 9.7 | | -------------------------------------------------------------------------------- | Cash flow, MEUR | | 0.3 | -5.6 | 33.8 | | -------------------------------------------------------------------------------- | Cash flow after investments, | | 0.3 | -1.5 | 17.9 | | | MEUR | | | | | | -------------------------------------------------------------------------------- | Cash funds, MEUR | | 51.5 | 11.8 | 51.0 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity ratio, % | | 69.7 | 83.9 | 70.3 | | -------------------------------------------------------------------------------- | Net gearing, % | | -38.5 | -16.2 | -37.2 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel at end of period | | 350 | 365 | 354 | | -------------------------------------------------------------------------------- President and CEO Jarmo Niemi: “As we stated in our stock exchange release on 23 January 2009, we succeeded very well in completing delivery projects towards the end of last year, and as a result the final quarter of the year was exceptionally strong. Another consequence was that net sales in the first quarter being reported now were lower than in the previous year and the operating result was negative. The cash flow from operations was positive and cash funds were extremely strong. “The first quarter for the Messaging business unit was weak, following the strong final quarter last year. The unit did not deliver any major new projects but won a new NGM customer in Africa. Net sales totalled EUR 4.9 million and the operating result was negative. “During the first quarter, the Charging business unit saw good progress in the degree of completion for major projects started in the previous year and in the maintenance contract base. The net sales and result for the quarter improved from the previous year.” Unless otherwise stated, all figures presented below are for the review period 1-3/2009 and the figures for comparison are for the corresponding period 1-3/2008. SALES AND NET SALES Tecnomen's net sales in the review period decreased by 24.1 per cent to EUR 11.5 (15.2) million. EUR 2.1 million of the sales in the review period has been recognised in accordance with IAS 11 (Construction contracts) and EUR 9.4 million in accordance with IAS 18 (Revenues). Net sales by geographical area were: Americas 60.6 per cent (26.0 %), EMEA 32.7 per cent (50.5 %) and APAC 6.7 per cent (23.6 %). Net sales by product line were: Messaging 42.3 per cent (81.7 %) and Charging 57.7 per cent (18.3 %). Sales through global partners totalled EUR 1.3 (2.7) million or 11.6 per cent (17.6 %) of net sales. Maintenance and service sales totalled EUR 3.9 (3.8) million or 33.8 per cent (25.0 %) of net sales. The order book stood at EUR 11.7 (16.8) million at the end of the review period. Americas accounted for 31.4 per cent of the order book, EMEA for 56.7 per cent and APAC for 11.9 per cent. OPERATING RESULT Net sales in the review period totalled EUR 11.5 (15.2) million and the operating result EUR -1.7 (-0.4) million. The effective completion of projects meant that net sales in 2008 were EUR 7.1 million higher than in the previous year. The recognition of major projects correspondingly reduced the order book at the end of 2008 and the net sales and operating profit for the first quarter of 2009. Capitalisation of research and development costs and amortisation of these had the net impact of weakening the result by EUR 1.2 million compared to the previous year. The operating result in the review period was -14.9% (-2.6%) of net sales. Tecnomen's business operations are based on project sales. The income and costs recorded for these vary considerably from one quarter to another. For this reason it is important to base an examination of the profitability of the company on the result for more then one quarter. The result for the period before taxes was EUR -1.4 (-0.4) million. Taxes for the period totalled EUR 0.3 (0.9) million, including a change in the deferred tax liability of EUR 0.1 (0.5) million recorded on the basis of the capitalization of R&D costs and withholding taxes recognised as parent company expenses of EUR 0.2 (0.2) million. Earnings per share were EUR -0.03 (-0.02). Equity per share at the end of the period was EUR 1.38 (1.23). FINANCING AND INVESTMENTS Tecnomen's liquid funds totalled EUR 51.5 (11.8) million. Liquid funds include a loan of EUR 20.0 million raised at the end of 2008 to finance the Lifetree acquisition. The cash flow for the review period was EUR 0.3 million. The balance sheet total on 31 March 2009 stood at EUR 117.4 (86.4) million. Interest-bearing liabilities were EUR 20.0 (0.0) million. The net debt to equity ratio (net gearing) was -38.5 per cent (-16.2 %). The balance sheet structure remained strong and the equity ratio on 31 March 2009 was 69.7 per cent (83.9 %). Tecnomen's gross capital expenditure during the review period, excluding the capitalisation of development costs, was EUR 0.3 (0.2) million or 2.8 per cent (1.3 %) of net sales. Financial income and expenses (net) during the year totalled EUR 0.3 (0.0) million. The increase in net financial income is mainly due to the exchange rate gains from US dollar deposits. -------------------------------------------------------------------------------- | CHANGE IN WORKING CAPITAL, MEUR | 1-3/2009 | 1-3/2008 | 1-12/2008 | | (increase - / decrease +) | | | | -------------------------------------------------------------------------------- | Change in trade receivables | 2.1 | 1.4 | 11.8 | -------------------------------------------------------------------------------- | Change in other current receivables | 0.4 | 0.9 | -0.6 | -------------------------------------------------------------------------------- | Change in inventories | -0.4 | -0.1 | 1.3 | -------------------------------------------------------------------------------- | Change in trade payables | 1.0 | -2.1 | -1.8 | -------------------------------------------------------------------------------- | Change in other current liabilities | -1.0 | 0.7 | -1.6 | -------------------------------------------------------------------------------- | CHANGE IN WORKING CAPITAL, TOTAL | 2.0 | 0.9 | 9.1 | -------------------------------------------------------------------------------- BUSINESS UNITS Messaging Sales in the first quarter were significantly lower than in the corresponding period in the previous year. During the quarter no major system expansions were supplied. Tecnomen added a new customer for an NGM system in Africa. Service and maintenance also continued its strong performance in all main market areas. Charging Net sales for the Charging business unit were higher than for the corresponding period in the previous year. Subscriber numbers in Africa and Latin America continued to grow. Good progress was made in the first quarter in the degree of completion of major projects begun in the previous year and in the maintenance contract base. RESEARCH AND DEVELOPMENT Research and development costs during the year totalled EUR 3.7 (4.3) million, corresponding to 31.8 per cent (28.3 %) of net sales. EUR 1.3 (2.4) million of development costs were capitalised and these will be amortised over 3-5 years from the start of commercial use. R&D costs of EUR 1.0 (0.8) million were amortised during the review period. PERSONNEL At the end of March 2009 Tecnomen employed 350 (365) persons, of whom 91 (92) worked in Finland and 259 (273) elsewhere. The company employed on average 353 (363) people during the period. Personnel by geographical area were as follows: -------------------------------------------------------------------------------- | | 1-3/2009 | 1-3/2008 | 1-12/2008 | -------------------------------------------------------------------------------- | Personnel, at end of period | 350 | 365 | 354 | -------------------------------------------------------------------------------- | Americas | 65 | 67 | 65 | -------------------------------------------------------------------------------- | EMEA | 263 | 269 | 264 | -------------------------------------------------------------------------------- | APAC | 22 | 29 | 25 | -------------------------------------------------------------------------------- | Personnel, average | 353 | 363 | 358 | -------------------------------------------------------------------------------- | Personnel expenses before R&D | 6.4 | 6.6 | 27.4 | | capitalisation (MEUR) | | | | -------------------------------------------------------------------------------- TECNOMEN SHARES AND SHARE CAPITAL At the end of March 2009 the shareholders' equity of Tecnomen Corporation stood at EUR 81.9 (72.6) million and the share capital was EUR 4,720,446.24, divided into 59,277,078 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 1.38 (1.23). A total of 2,567,897 Tecnomen shares (EUR 2,298,402) were traded on the Helsinki Exchanges during the period 2 January - 31 March 2009, representing 4.3 per cent of the total number of shares. The highest share price quoted in the period was EUR 0.96 and the lowest EUR 0.78. The average quoted price was EUR 0.89 and the closing price on 31 March 2009 was EUR 0.93. The market capitalisation of the share stock at the end of the period was EUR 55,127,683. ANNUAL GENERAL MEETING The Annual General Meeting of Tecnomen Corporation held on 19 March 2009 confirmed the financial statements and the consolidated financial statements for 2008 and discharged the Board of Directors and the President from liability for the financial year 2008. Acquisition of Lifetree Convergence Ltd The Annual General Meeting approved the agreements signed by Tecnomen through which the Company will acquire up to 96.6 % of the shares of Lifetree Convergence Ltd ('Lifetree'), as stated in the stock exchange release of 15 December 2008. Amendments to Articles of Association The Annual General Meeting approved the proposal of the Board of Directors to amend Article 1 regarding the company name as follows: “1 § Business name and domicile of Company The business name of the Company is Tecnomen Lifetree Oyj; in Swedish, Tecnomen Lifetree Abp; and in English, Tecnomen Lifetree Corporation. The Company is domiciled in Espoo.” The amendment is subject to the completion of the acquisition of the shares of Lifetree. In addition the Annual General Meeting confirmed, in accordance with the proposal of the Board of Directors, that Article 4 of the Articles of Association be amended to read as follows: “4 § The Board of Directors The Company's administration and the due organization of its operations shall be entrusted to the Board of Directors, which shall consist of at least three (3) and at most eight (8) ordinary members elected by the General Meeting. The term of office of a member of the Board of Directors expires at the end of the first Annual General Meeting following the election. The Board of Directors shall elect a Chairman and a Vice-Chairman from among its members until the end of the following Annual General Meeting. The Board of Directors shall constitute a quorum when more than half of its members are present at a meeting. Matters shall be resolved by a simple majority of the votes cast. In the event of a tie, the chairman shall have the deciding vote.” Issue of Stock Options The Annual General meeting confirmed the proposal of the Board of Directors to issue stock options to key personnel of the Tecnomen Group and to a wholly owned subsidiary of the Company. The stock options shall, in deviation from the shareholders' pre-emptive subscription rights, be issued to key personnel of the Group and to Tecnomen Japan Oy, a wholly owned subsidiary of the Company. It is proposed to deviate from the shareholders' pre-emptive subscription rights since the stock options are to form part of the Group's incentive and commitment programme for key personnel, and therefore it can be considered that there is a weighty financial reason for the deviation. The stock options will be issued without payment. It is proposed that a maximum of 6,840,036 options be issued. Of the stock options, 1,026,005 shall be marked with the symbol 2009A, 2,394,013 shall be marked with the symbol 2009B and 3,420,018 shall be marked with the symbol 2009C. Each option right entitles its holder to subscribe to one (1) share in the Company. As a result of the share subscriptions, the number of shares in the Company may be increased by a total maximum of 6,840,036 new shares. The share subscription price is EUR 0.86, based on the volume weighted average price of the share quoted on the NASDAQ OMX Helsinki Ltd. during the four week period ending 17 November 2008. The share subscription period for stock option 2009A shall be 1 April 2009 - 31 March 2011, for stock option 2009B 1 April 2010 - 31 March 2012 and for stock option 2009C 1 April 2011 - 31 March 2013. Notwithstanding the aforesaid, the share subscription periods for a maximum of two-thirds (2/3) of the 2009B and 2009C stock options shall be conditional on the Company achieving its revenue and profitability targets set by the Board of Directors. The share subscription price will be credited to the reserve for invested unrestricted equity in its entirety. Resolution on dividend payment The Annual General Meeting resolved, in accordance with the proposal of the Board of Directors, to authorise the Board to decide on paying a dividend of EUR 0.07 per share for the financial year ended on 31 December 2008. The Board of Directors shall decide on the dividend record date and payment date. The Board has not yet taken the decision on the payout date of the dividend. Board of Directors The Annual General Meeting confirmed that the Board of Directors will consist of six (6) members. However, should the acquisition of the shares of Lifetree take place, eight (8) members will be elected. Johan Hammarén, Harri Koponen, Carl-Johan Numelin, Christer Sumelius and Hannu Turunen were re-elected as Board members and Pentti Heikkinen was elected as a new member. In addition, Atul Chopra and David K. White were elected as board members, subject to the completion of the acquisition. The term of office of Atul Chopra and David K White shall commence at the completion of the acquisition. In accordance with the decision taken by the Board at its formative meeting after the AGM, Hannu Turunen was elected chairman and Carl-Johan Numelin vice-chairman of the Board. The term of office of the Board members expires at the end of the first Annual General Meeting following the election. Auditors KPMG Oy Ab, Authorised Public Accountants, will continue as the Company's auditor, with Sixten Nyman, APA, as principal auditor, until the end of the following Annual General Meeting. Authorisations The Annual General Meeting authorised the Board of Directors to decide on the acquisition of a maximum of 5,790,000 of the Company's own shares. The Company's own shares shall be acquired with unrestricted shareholders' equity otherwise than in proportion to the holdings of the shareholders through public trading of the securities on OMX Nordic Exchange Helsinki Ltd 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 will decide on other terms of the share acquisition. The authorisation shall replace the authorisation given by the Annual General Meeting on 12 March 2008 and will be valid for one year from the decision of the Annual General Meeting. SEGMENT INFORMATION As from 1 January 2009, Tecnomen is applying the new IFRS 8 standard. Like the former primary segments under IAS 14, Tecnomen Group's operating segments under IFRS 8 comprise the developing and supplying of messaging and charging solutions. The operating segments presented are the Messaging and Charging product lines. This is because these are clearly distinct businesses and they are monitored in the company's internal financial reporting as separate business units. Adopting IFRS 8 has not changed the principles for defining the items to be reported or excluded for the segments. Tecnomen's chief operating decision maker, as referred to in IFRS 8, is the Group's management board. The operating results for the operating segments and administrative expenses form the Group's operating profit or loss. STOCK OPTION PROGRAMMES During the review period the Company's current stock option programme was the 2006 stock option programme. The situation concerning the stock options on 31 March 2009 was as follows: -------------------------------------------------------------------------------- | Option | Maximum | Number of | Exercise period | Exercise | | series | number of | granted | | price | | | options | options | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 2006A | 667,000 | 304,000 | 1.4.2007-30.4.2010 | 2.54 | -------------------------------------------------------------------------------- | 2006B | 667,000 | 667,000 | 1.4.2008-30.4.2011 | 1.39 | -------------------------------------------------------------------------------- | 2006C | 667,000 | | 1.4.2009-30.4.2012 | 1.05 | -------------------------------------------------------------------------------- | Total | 2,001,000 | 971,000 | | | -------------------------------------------------------------------------------- Altogether 2,001,000 stock options remained on 31 March 2009 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 3.27 % of the Company's shares and the votes carried by the shares after any increase in share capital. On 31 March 2009 the Company still held 1,030,000 of all the current stock options. The issued stock options had a maximum diluting effect on 31 March 2009 of 1.61 %. Tecnomen's Annual General Meeting on 19 March 2009 decided on the 2009 stock option programme, but this is conditional on the closing of the acquisition of the shares of Lifetree Convergence Ltd. After closing the Company will have the following new stock option programme: -------------------------------------------------------------------------------- | Option | Maximum | Number of | Exercise period | Exercise | | series | number of | granted | | price | | | options | options | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 2009A | 1,026,005 | | 1.4.2009-31.3.2011 | 0.86 | -------------------------------------------------------------------------------- | 2009B | 2,394,013 | | 1.4.2010-31.3.2012 | 0.86 | -------------------------------------------------------------------------------- | 2009C | 3,420,018 | | 1.4.2011-31.3.2013 | 0.86 | -------------------------------------------------------------------------------- | Total | 6,840,036 | | | | -------------------------------------------------------------------------------- The Company's Board has decided to issue stock options such that they will be a maximum of 8.50 % of Tecnomen's fully diluted shares. RISKS AND UNCERTAINTY FACTORS The risks and uncertainty factors are explained in the report of the Board of Directors. The risks and uncertainties to which the company is exposed in the near future relate to major projects that are under negotiation and to their timing, and to changes in currency exchange rates. No significant changes have taken place in the company's risks and uncertainty factors compared to the previous interim report. EVENTS AFTER THE END OF THE PERIOD No major events have taken place after the end of period. PROSPECTS FOR 2009 Because of the overall economic situation, the state of the market in Tecnomen's business sector, and pending completion of the acquisition of Lifetree Convergence Ltd, the Company is not making any estimates for 2009 at this stage. Variations between quarterly figures are expected to be considerable. FINANCIAL INFORMATION Tecnomen will publish its following interim reports as follows: 1-6/2009 Wednesday, 12 August 1-9/2009 Wednesday, 29 October Tecnomen is holding a conference to announce its results for the first quarter of 2009 at 10.00 am on 28 April 2008 in the Pavilion room 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 NASDAQ OMX Helsinki Ltd Main media www.tecnomen.com This interim report has been prepared in accordance with IFRS reporting and evaluation principles and applying the same accounting principles as in the previous annual financial statements, but not complying with all the requirements of IAS 34 Interim Financial Reporting. The new IFRS regulations effective from 1 January 2009 have not had a significant impact on the accounting principles and methods used in preparing the Group's interim report. The financial figures in the income statement, the balance sheet and key indicators are presented in million euros. The figures shown here have been calculated using exact values. -------------------------------------------------------------------------------- | CONSOLIDATED INCOME | | | 1-3/2009 | 1-3/2008 | 1-12/2008 | | STATEMENT, MEUR | | | | | | -------------------------------------------------------------------------------- | NET SALES | | | 11.5 | 15.2 | 77.2 | -------------------------------------------------------------------------------- | Other operating income | | | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Materials and services | | | -2.0 | -4.3 | -16.7 | -------------------------------------------------------------------------------- | Employee benefit expenses | | | -5.6 | -5.5 | -24.0 | -------------------------------------------------------------------------------- | Depreciation | | | -1.4 | -1.4 | -5.6 | -------------------------------------------------------------------------------- | Other operating expenses | | | -4.2 | -4.3 | -19.4 | -------------------------------------------------------------------------------- | OPERATING RESULT | | | -1.7 | -0.4 | 11.5 | -------------------------------------------------------------------------------- | Financial income | | | 0.5 | 0.3 | 3.0 | -------------------------------------------------------------------------------- | Financial expenses | | | -0.2 | -0.2 | -1.1 | -------------------------------------------------------------------------------- | RESULT BEFORE TAXES | | | -1.4 | -0.4 | 13.5 | -------------------------------------------------------------------------------- | Income taxes | | | -0.3 | -0.9 | -3.3 | -------------------------------------------------------------------------------- | RESULT FOR THE PERIOD | | | -1.7 | -1.3 | 10.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, basic, | | | -0.03 | -0.02 | 0.17 | | EUR | | | | | | -------------------------------------------------------------------------------- | Earnings per share, diluted, | | | -0.03 | -0.02 | 0.17 | | EUR | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF | | | 1-3/2009 | 1-3/2008 | 1-12/2008 | | COMPREHENSIVE INCOME, Me | | | | | | -------------------------------------------------------------------------------- | RESULT FOR THE PERIOD | | | -1.7 | -1.3 | 10.2 | -------------------------------------------------------------------------------- | Other comprehensive income: | | | | | | -------------------------------------------------------------------------------- | Translation differences from | | | 0.1 | -0.0 | -0.5 | | foreign operations, net of | | | | | | | tax | | | | | | -------------------------------------------------------------------------------- | TOTAL COMPREHENSIVE INCOME | | | -1.6 | -1.3 | 9.6 | | FOR THE PERIOD | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET, | 31.3.2009 | 31.3.2008 | 31.12.2008 | | MEUR | | | | -------------------------------------------------------------------------------- | Assets | | | | -------------------------------------------------------------------------------- | Goodwill | 0.7 | 0.7 | 0.7 | -------------------------------------------------------------------------------- | Other intangible assets | 19.6 | 17.4 | 19.3 | -------------------------------------------------------------------------------- | Tangible assets | 7.0 | 3.6 | 7.0 | -------------------------------------------------------------------------------- | Long-term trade and other | 0.6 | 0.5 | 0.7 | | receivables | | | | -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Inventories | 1.5 | 2.5 | 1.1 | -------------------------------------------------------------------------------- | Trade receivables | 12.1 | 22.3 | 14.4 | -------------------------------------------------------------------------------- | Other receivables | 24.4 | 23.6 | 24.6 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 51.5 | 11.8 | 51.0 | -------------------------------------------------------------------------------- | Non-current assets held for sale* | | 4.1 | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 117.4 | 86.4 | 118.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 81.9 | 72.6 | 83.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 4.6 | 3.9 | 4.5 | -------------------------------------------------------------------------------- | Long-term non-interest-bearing | 0.0 | 0.0 | 0.0 | | liabilities | | | | -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Current interest-bearing | 20.0 | | 20.0 | | liabilities | | | | -------------------------------------------------------------------------------- | Trade and other payables | 11.0 | 10.0 | 10.8 | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES, TOTAL | 117.4 | 86.4 | 118.9 | -------------------------------------------------------------------------------- Tecnomen announced in a stock exchange release on 25 January 2008 that it was examining the possibility of selling the headquarters property it owns. Due to the downturn in the property market in 2008 the sale did not take place. The property was put back in tangible assets in the interim report for January - June 2008. STATEMENT OF CHANGE IN SHAREHOLDERS' EQUITY, MEUR -------------------------------------------------------------------------------- | MEUR | Shar | Shar | Own | Trans- | Invested | Other | Retain | Total | | | e | e | shar | lation | non-rest | re-se | -ed | | | | capi | prem | es | differ | rict-ed | rves | earn-i | | | | -tal | -ium | | ence | equity | | ngs | | | | | fund | | | reserve | | | | -------------------------------------------------------------------------------- | Shareholde | 4.7 | 0.8 | -0.1 | -0.1 | 0.3 | 50.6 | 27.3 | 83.5 | | rs' | | | | | | | | | | equity | | | | | | | | | | 1 Jan. | | | | | | | | | | 2009 | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | | 0.1 | | | -1.8 | -1.6 | | comprehens | | | | | | | | | | ive income | | | | | | | | | | for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Shareholde | 4.7 | 0.8 | -0.1 | 0.1 | 0.3 | 50.6 | 25.5 | 81.9 | | rs' equity | | | | | | | | | | 31 Mar. | | | | | | | | | | 2009 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | MEUR | Shar | Share | Own | Transla- | Inves- | Other | Retai | Total | | | e | premiu | shar | tion | ted | reser | ned | | | | capi | m fund | es | differen | non-re | ves | ear-n | | | | tal | | | ce | strict | | ings | | | | | | | | ed | | | | | | | | | | equity | | | | | | | | | | reserv | | | | | | | | | | e | | | | -------------------------------------------------------------------------------- | Sharehold | 4.7 | 0.8 | -0.1 | 0.2 | 0.3 | 54.7 | 17.4 | 78.0 | | ers' | | | | | | | | | | equi | | | | | | | | | | ty | | | | | | | | | | 1 Jan. | | | | | | | | | | 2008 | | | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | | -4.1 | | -4.1 | | paid | | | | | | | | | -------------------------------------------------------------------------------- | Share-bas | | | | | | | 0.1 | 0.1 | | ed | | | | | | | | | | payments | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | -0.2 | -0.2 | | adjustmen | | | | | | | | | | ts | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | | 0.0 | | | -1.3 | -1.3 | | comprehen | | | | | | | | | | sive | | | | | | | | | | income | | | | | | | | | | for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Sharehold | 4.7 | 0.8 | -0.1 | 0.2 | 0.3 | 50.6 | 16.1 | 72.6 | | ers' | | | | | | | | | | equity | | | | | | | | | | 31 Mar. | | | | | | | | | | 2008 | | | | | | | | | -------------------------------------------------------------------------------- In March 2008 a total dividend of EUR 4,138,209.46 was paid, or EUR 0.07 per share on 59,117,278 shares. -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW STATEMENT, | 1-3/2009 | 1-3/2008 | 1-12/2008 | | MEUR | | | | -------------------------------------------------------------------------------- | Cash flow from operating | | | | | activities | | | | -------------------------------------------------------------------------------- | Result for the period | -1.7 | -1.3 | 10.2 | -------------------------------------------------------------------------------- | Adjustments | 1.5 | 1.1 | 5.0 | -------------------------------------------------------------------------------- | Interest income | -0.2 | -0.3 | -0.7 | -------------------------------------------------------------------------------- | Interest expense | 0.2 | 0.2 | 0.1 | -------------------------------------------------------------------------------- | Income taxes | 0.3 | 0.9 | 3.3 | -------------------------------------------------------------------------------- | Other adjustments | 0.0 | -0.4 | 0.0 | -------------------------------------------------------------------------------- | Changes in working capital | 2.0 | 0.9 | 9.1 | -------------------------------------------------------------------------------- | Interest paid | -0.0 | -0.0 | -0.0 | -------------------------------------------------------------------------------- | Interest received | 0.2 | 0.2 | 0.7 | -------------------------------------------------------------------------------- | Income taxes paid | -0.2 | -0.2 | -1.4 | -------------------------------------------------------------------------------- | Net cash flow from operating | 2.0 | 1.1 | 26.1 | | activities | | | | -------------------------------------------------------------------------------- | Cash flow from investments | | | | -------------------------------------------------------------------------------- | Investments in intangible assets | -1.3 | -2.4 | -7.2 | -------------------------------------------------------------------------------- | Investments in tangible assets | -0.3 | -0.2 | -1.0 | -------------------------------------------------------------------------------- | Net cash flow from investments | -1.6 | -2.6 | -8.2 | -------------------------------------------------------------------------------- | Cash flow from financing | | | | | activities | | | | -------------------------------------------------------------------------------- | Shares subscribed with share | | | 0.0 | | options | | | | -------------------------------------------------------------------------------- | Proceeds from short-term | | | 20.0 | | borrowings | | | | -------------------------------------------------------------------------------- | Dividend paid | | -4.1 | -4.1 | -------------------------------------------------------------------------------- | Net cash flow from financing | - | -4.1 | 15.9 | | activities | | | | -------------------------------------------------------------------------------- | Increase (+) and decrease (-) in | 0.3 | -5.6 | 33.8 | | liquid funds | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liquid funds on 1 Jan. | 51.0 | 17.5 | 17.5 | -------------------------------------------------------------------------------- | Impact of changes in exchange | 0.1 | -0.1 | -0.3 | | rates | | | | -------------------------------------------------------------------------------- | Change in fair value of | 0.1 | -0.0 | 0.0 | | investments | | | | -------------------------------------------------------------------------------- | Liquid funds on 31 Dec. | 51.5 | 11.8 | 51.0 | -------------------------------------------------------------------------------- | Change | 0.3 | -5.6 | 33.8 | -------------------------------------------------------------------------------- SEGMENT INFORMATION -------------------------------------------------------------------------------- | OPERATING SEGMENTS | 1-3/2009 | 1-3/2008 | 1-12/2008 | | | | | | | NET SALES, MEUR | | | | -------------------------------------------------------------------------------- | Messaging | 4.9 | 12.4 | 40.4 | -------------------------------------------------------------------------------- | Charging | 6.6 | 2.8 | 36.8 | -------------------------------------------------------------------------------- | TOTAL | 11.5 | 15.2 | 77.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GEOGRAPHICAL AREAS | 1-3/2009 | 1-3/2008 | 1-12/2008 | | | | | | | NET SALES, MEUR | | | | -------------------------------------------------------------------------------- | Americas | 7.0 | 3.9 | 41.6 | -------------------------------------------------------------------------------- | EMEA | 3.8 | 7.7 | 27.6 | -------------------------------------------------------------------------------- | APAC | 0.8 | 3.6 | 8.0 | -------------------------------------------------------------------------------- | TOTAL | 11.5 | 15.2 | 77.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CONTINGENT | 31.3.2009 | 31.3.2008 | 31.12.2008 | | LIABILITIES, MEUR | | | | -------------------------------------------------------------------------------- | Pledges given | 0.1 | | 0.1 | -------------------------------------------------------------------------------- | Guarantees | | | | -------------------------------------------------------------------------------- | On own behalf | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Other liabilities | | | | -------------------------------------------------------------------------------- | Restriction related to real estate | 0.4 | 0.4 | 0.4 | | in Ireland | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING LEASES, MEUR | 31.3.2009 | 31.3.2008 | 31.12.2008 | -------------------------------------------------------------------------------- | Minimum lease payments on | | | | | non-cancellable operating leases: | | | | -------------------------------------------------------------------------------- | Operating leases | | | | -------------------------------------------------------------------------------- | Less than one year | 0.6 | 0.5 | 0.6 | -------------------------------------------------------------------------------- | Between one and five years | 0.4 | 0.7 | 0.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED KEY FINANCIAL | 1-3/2009 | 1-3/2008 | 1-12/2008 | | FIGURES, MEUR | | | | -------------------------------------------------------------------------------- | Return on investment, % | -4.6 | -0.7 | 16.0 | -------------------------------------------------------------------------------- | Return on equity, % | -8.4 | -6.7 | 12.6 | -------------------------------------------------------------------------------- | Equity ratio, % | 69.7 | 83.9 | 70.3 | -------------------------------------------------------------------------------- | Net gearing, % | -38.5 | -16.2 | -37.2 | -------------------------------------------------------------------------------- | Investments | 0.3 | 0.2 | 1.3 | -------------------------------------------------------------------------------- | % of net sales | 2.8 | 1.3 | 1.7 | -------------------------------------------------------------------------------- | Research and development | 3.7 | 4.3 | 15.5 | -------------------------------------------------------------------------------- | % of net sales | 31.8 | 28.3 | 20.0 | -------------------------------------------------------------------------------- | Order book | 11.7 | 16.8 | 9.7 | -------------------------------------------------------------------------------- | Personnel, average | 353 | 363 | 358 | -------------------------------------------------------------------------------- | Personnel, at end of period | 350 | 365 | 354 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED KEY FIGURES PER | 1-3/2009 | 1-3/2008 | 1-12/2008 | | SHARE, MEUR | | | | -------------------------------------------------------------------------------- | Earnings per share, basic, EUR | -0.03 | -0.02 | 0.17 | -------------------------------------------------------------------------------- | Earnings per share, diluted, EUR | -0.03 | -0.02 | 0.17 | -------------------------------------------------------------------------------- | Equity per share, EUR | 1.38 | 1.23 | 1.41 | -------------------------------------------------------------------------------- | Number of shares at end of period, | 59,142 | 59,252 | 59,142 | | x 1,000 | | | | -------------------------------------------------------------------------------- | Number of shares on average, x | 59,142 | 59,117 | 59,134 | | 1,000 | | | | -------------------------------------------------------------------------------- | Share price, EUR | | | | -------------------------------------------------------------------------------- | Average | 0.89 | 1.12 | 1.00 | -------------------------------------------------------------------------------- | Lowest | 0.78 | 0.95 | 0.75 | -------------------------------------------------------------------------------- | Highest | 0.96 | 1.27 | 1.27 | -------------------------------------------------------------------------------- | Share price at end of period | 0.93 | 1.07 | 0.84 | -------------------------------------------------------------------------------- | Market capitalisation of issued | 55.1 | 63.4 | 49.8 | | stock at end of period, MEUR | | | | -------------------------------------------------------------------------------- | Share turnover, million shares | 2.6 | 5.6 | 23.2 | -------------------------------------------------------------------------------- | Share turnover, % of total | 4.3 | 9.5 | 39.2 | -------------------------------------------------------------------------------- | Share turnover, MEUR | 2.3 | 6.3 | 23.2 | -------------------------------------------------------------------------------- | Dividend per share | | | 0.07 | -------------------------------------------------------------------------------- | Dividend per earnings, % | | | 0.41 | -------------------------------------------------------------------------------- | Effective dividend yield | | | 0.08 | -------------------------------------------------------------------------------- | Price/earnings ratio (P/E) | -31.68 | -50.32 | 4.88 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KEY FIGURES PER | 1Q/09 | 4Q/08 | 3Q/08 | 2Q/08 | 1Q/08 | 4Q/07 | | QUARTER, MEUR | | | | | | | -------------------------------------------------------------------------------- | Net sales, MEUR | 11.5 | 21.7 | 18.2 | 22.2 | 15.2 | 19.2 | -------------------------------------------------------------------------------- | Net sales, change % | -24.1 | 13.3 | -4.8 | 6.4 | 37.4 | -4.7 | -------------------------------------------------------------------------------- | Operating result, MEUR | -1.7 | 5.0 | 3.3 | 3.6 | -0.4 | 1.8 | -------------------------------------------------------------------------------- | % of net sales | -14.9 | 23.1 | 18.2 | 16.3 | -2.6 | 9.3 | -------------------------------------------------------------------------------- | Result before taxes, | -1.4 | 5.8 | 4.2 | 3.9 | -0.4 | 2.7 | | MEUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Personnel at end of | 350 | 354 | 354 | 359 | 365 | 355 | | period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, | -0.03 | 0.08 | 0.05 | 0.06 | -0.02 | 0.04 | | basic, EUR | | | | | | | -------------------------------------------------------------------------------- | Earnings per share, | -0.03 | 0.08 | 0.05 | 0.06 | -0.02 | 0.04 | | diluted, EUR | | | | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | 1.38 | 1.41 | 1.34 | 1.29 | 1.23 | 1.32 | -------------------------------------------------------------------------------- | Net interest-bearing | -31.5 | -31.0 | -25.2 | -15.5 | -11.8 | -17.5 | | liabilities, MEUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order book, MEUR | 11.7 | 9.7 | 17.2 | 25.1 | 16.8 | 17.5 | --------------------------------------------------------------------------------
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