English

BASWARE CORPORATION'S FINANCIAL RESULT TO BE WEAKER THAN EXPECTED

Report this content 
BasWare Corporation  Stock Exchange Release        15 January, 2007


BASWARE CORPORATION'S FINANCIAL RESULT TO BE WEAKER THAN EXPECTED

According to the auditor's recommendation, BasWare Corp. has adjusted its
Financial Statements' accounting principles with regards to revenue recognition
of license sales and accounts receivables. As stated in the stock exchange
release published earlier today, the Company will prepare the 2006 Financial
Statements and the comparative figures according to the new accounting principles
as well as restate the 2006 interim reports and the comparative figures. A stock
exchange release was published earlier today on this matter.

BasWare Corp.'s key figures for 2006 according to the new accounting principles
are currently estimated to be the following:

    - Net sales was EUR 60.8 million
    - Operating profit was EUR 9.0 million
    - Operating profit was approximately 14.8 percent of net sales

BasWare Corp.'s restated key figures for 2005 are currently estimated to be the
following:

    - Restated net sales was EUR 41.8 million (unrestated EUR 42.8 million)
    - Restated operating profit was EUR 3.7 million (unrestated EUR 4.8 million)
    - Restated operating profit percent was 8.9 of net sales (unrestated 11.1%)

The Company has previously estimated that net sales compared with the previous
year would grow by approximately 45%, corresponding to approximately EUR 62.0
million. Operating profit was estimated to represent over 15% of net sales,
corresponding to an operating profit of EUR 9.3 million euros. The Company now
estimates that the 2006 net sales fall below the expected with EUR 0.3 million
and the 2005 restated operating profit is EUR 1.1 million lower than the reported
figure.

Falling below the official guidance is due to slightly weaker product sales. In
addition, part of the 2006 deals have been realized as Software as a Service
(SaaS) deliveries instead of one-off items. Net sales accumulate then gradually
due to monthly revenue recognition.

Contrary to the previously announced date, BasWare Corp. will publish the 2006
Financial Statements on February 1, 2007. The restated comparative figures for
2005 as well as the 2006 interim reports for the three first quarters will be
published on the same date. The Annual General Meeting is postponed to be held on
February 26, 2007.


BASWARE CORP.
Ilkka Sihvo


For further information, please contact:
 
CEO Ilkka Sihvo, BasWare Corp., tel. +358 40 501 8251

Subscribe