BASWARE’S RESTATED FIGURES FOR Q1 2005–Q3 2006

BASWARE CORP. STOCK EXCHANGE RELEASE FEBRUARY 1, 2007 


As announced on January 15, BasWare Corp. adjusts its accounting 
principles regarding the revenue recognition of license sales, as 
recommended by the new auditor. The Company will prepare the 2006 
Financial Statements according to the adjusted principles and restates 
the interim reports for the first three quarters of 2006 and the 2005 
comparative figures for all four quarters. 

BasWare has previously in some cases at the end of the quarters entered 
license sales as revenue based on agreements where the actual license 
delivery has been delayed by some days. As a result, license sales have 
been recognized as revenue a month beforehand. For the 2006 Financial
Statements, valuation principles have also been tightened with regards
to accounts receivables. 

Additionally, the accounting principles regarding the revenue recognition 
of license sales have been adjusted for 2006.
 
The now applied principles will also be applied in the future Financial 
Statements and Interim Reports of the Company. 

The attached tables present the restated as well as the previously 
reported key figures published in respective Q1 2005–Q3 2006 interim
reports.


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

 


PREVIOUSLY REPORTED QUARTERLY GROUP KEY FIGURES

EUR thousand            1-3/    1-6/    1-9/   1-12/    1-3/    1-6/    1-9/
                        2005    2005    2005    2005    2006    2006    2006

Net sales              8 527  20 490  29 780  42 810  14 243  30 056  42 715
Growth of
net sales, %           16.2%   25.9%   27.6%   26.3%   67.0%   46.7%   43.4%
Operating profit         534   1 884   2 451   4 756   1 339   3 749   5 540
Growth of
operating profit      -57.3%  -37.8%  -43.0%  -24.0%  150.7%   99.0%  126.0%
   % of net sales       6.3%    9.2%    8.2%   11.1%    9.4%   12.5%   13.0%
Profit before tax        539   1 901   2 482   4 792   1 417   3 866   5 725
   % of net sales       6.3%    9.3%    8.3%   11.2%    9.9%   12.9%   13.4%
Profit for the period    117   1 270   1 806   3 097   1 112   2 570   3 951
   % of net sales       1.4%    6.2%    6.1%    7.2%    7.8%    8.6%    9.3%

Return on equity, %     3.1%   16.0%   14.6%   17.4%   13.7%   16.7%   15.3%
Return on
investment, %          13.3%   22.2%   18.7%   25.5%   17.6%   22.7%   21.7%
Interest bearing
liabilities            1 514   1 635   1 673   1 230   1 113     990     870
Cash and
liquid assets *)      10 847  10 058  10 514   9 987  11 153  11 312   9 909
Gearing, %            -51.3%  -43.0%  -42.4%  -37.4%  -24.3%  -23.6%  -19.9%
Equity ratio, %        67.5%   62.8%   64.4%   69.1%   69.2%   71.7%   76.9%
Total assets          26 927  31 192  32 374  33 912  59 674  61 136  59 182

Gross investments **)    492   4 330   6 164   6 925  21 695  23 074  24 492
   % of net sales       5.8%   21.1%   20.7%   16.2%  152.3%   76.8%   57.3%
Capital expenditure      303     515     600     749     158     450     510
   % of net sales       3.6%    2.5%    2.0%    1.7%    1.1%    1.5%    1.2%
Research and
development costs      1 319   3 099   4 370   6 204   2 639   5 445   7 640
   % of net sales      15.5%   15.1%   14.7%   14.5%   18.5%   18.1%   17.9%


Unrestated Share Indicators
Earnings per share,
EUR                     0.01    0.14    0.19    0.33    0.11    0.24    0.36
Earnings per share,
EUR (diluted)           0.01    0.14    0.19    0.32    0.11    0.23    0.35
Equity per share, EUR   1.91    2.04    2.16    2.37    3.64    3.84    3.97

*) Includes cash, cash equivalents and financial assets at fair value
through profit or loss
**) Includes acquisitions, share investments and capitalized R&D costs.



RESTATED QUARTERLY GROUP KEY FIGURES

EUR thousand           1-3/    1-6/   1-9/   1-12/      1-3/    1-6/    1-9/
                       2005    2005   2005    2005      2006    2006    2006

Net sales             8 136  20 016 30 843  41 666    15 432  30 083  43 446
Growth of
net sales, %          10.9%   23.0%  32.2%   29.4%     89.7%   50.3%   40.9%
Operating profit        143   1 409  3 514   3 611     2 529   3 776   6 271
Growth of
operating profit,    -88.6%  -53.5% -18.2%  -20.8%  1 665.6%  168.1%   78.5%
   % of net sales      1.8%    7.0%  11.4%    8.7%     16.4%   12.6%   14.4%
Profit before tax       148   1 426  3 546   3 647     2 606   3 894   6 457
   % of net sales      1.8%    7.1%  11.5%    8.8%     16.9%   12.9%   14.9%
Profit for the period  -188     912  2 590   2 229     1 994   2 795   4 460
Return on equity, %   -2.3%    4.6%   8.4%    5.4%     12.9%    9.3%   10.3%

Return on equity, %   -5.5%   12.6%  35.0%   13.9%     26.0%   17.8%   18.2%
Return on
investment, %          4.3%   18.3%  41.2%   21.4%     33.5%   24.3%   25.8%
Interest bearing
liabilities           1 514   1 635  1 673   1 230     1 113     990     870
Cash and
liquid assets *)     10 847  10 058 10 514   9 987    11 153  11 312   9 909
Gearing, %           -56.2%  -46.9% -43.4%  -41.1%    -25.1%  -24.8%  -20.6%
Equity ratio, %       66.2%   61.6%  64.1%   68.2%     68.8%   71.1%   76.6%

Total assets         25 105  29 163 31 777  31 228    58 237  58 655  57 293


Gross investments **)   492   4 330  1 834   6 925    21 695  23 501  24 492
   % of net sal        6.0%   21.6%  16.9%   16.6%    140.6%   78.1%   56.4%
Capital expenditure     303     515     85     749       158     368     510
   % of net sal        3.7%    2.6%   0.8%    1.8%      1.0%    1.2%    1.2%
Research and
development costs     1 319   3 099  1 271   6 204     2 639   5 445   7 640
   % of net sales     16.2%   15.5%  11.7%   14.9%     17.1%   18.1%   17.6%


Restated Share Indicators

Earnings per share,
EUR                   -0.02    0.10   0.28    0.24      0.19    0.26    0.40
Earnings per share,
EUR (diluted)         -0.02    0.10   0.27    0.23      0.19    0.25    0.40
Equity per share,
EUR                    1.75    1.87   2.11    2.16      3.53    3.67    3.83

*) Includes cash, cash equivalents and financial assets at fair value
through profit or loss
**) Includes acquisitions, share investments and capitalized R&D costs.



RESTATED GROUP QUARTERLY INCOME STATEMENT

                 1-3/    1-6/    1-9/   1-12/   1-3/    1-3/   1-6/    1-12/
EUR thousand     2005    2005    2005    2005   2005    2006    2006    2006

NET SALES       8 136  11 879  10 827  10 823 41 666  15 432  14 651  13 363

Other operating
income             21      13      13      13     60      41      61      25

Materials and
services         -694   -1031    -778    -669 -3 172    -778    -689    -468
Employee benefits
expenses       -4 743  -6 375  -4 847  -6 604 -22 56  -8 259  -8 710  -6 942
Depreciation and
amortization     -217    -267    -316    -277 -1 077    -453    -488    -520
Other operatin
expenses       -2 360  -2 953  -2 794  -3 190 -11 29  -3 454  -3 578  -2 963
Operating
profit            143   1 266   2 105      97  3 611   2 529   1 247   2 495
%                1.8%   10.7%   19.4%    0.9%   8.7%   16.4%    8.5%   18.7%

Finance income     23      40      39      44    146     138      48      56
Finance expenses  -18     -28     -25     -40   -111     -60      -8      12
Profit before tax 148   1 278   2 119     101  3 647   2 606   1 287   2 563
%                1.8%   10.8%   19.6%    0.9%   8.8%   16.9%    8.8%   19.2%

Tax on income
from operations  -336    -179    -441    -462 -1 417    -613    -486    -898

PROFIT FOR
THE PERIOD       -188   1 099   1 679    -361  2 229   1 994     801   1 665
%               -2.3%    9.3%   15.5%   -3.3%   5.4%   12.9%    5.5%   12.5%


RESTATED GROUP QUARTERLY INCOME STATEMENT

                 1-3/    1-6/    1-9/   1-12/   1-3/    1-3/   1-6/    1-12/
EUR thousand     2005    2005    2005    2005   2005    2006    2006    2006


NET SALES       8 136  11 879  10 827  10 823 41 666  15 432  14 651  13 363

Other operating
income             21      13      13      13     60      41      61      25

Materials
and services     -694   -1031    -778    -669 -3 172    -778    -689    -468
Employee
benefits
expenses       -4 743  -6 375  -4 847  -6 604 -22 56  -8 259  -8 710  -6 942
Depreciation and
amortization     -217    -267    -316    -277 -1 077    -453    -488    -520
Other operating
expenses       -2 360  -2 953  -2 794  -3 190 -11 29  -3 454  -3 578  -2 963
Operating
profit            143   1 266   2 105      97  3 611   2 529   1 247   2 495
%                1.8%   10.7%   19.4%    0.9%   8.7%   16.4%    8.5%   18.7%

Finance income     23      40      39      44    146     138      48      56
Finance expenses  -18     -28     -25     -40   -111     -60      -8      12
Profit
before tax        148   1 278   2 119     101  3 647   2 606   1 287   2 563
%                1.8%   10.8%   19.6%    0.9%   8.8%   16.9%    8.8%   19.2%

Tax on income
from operations  -336    -179    -441    -462 -1 417    -613    -486    -898

PROFIT
FOR THE PERIOD   -188   1 099   1 679    -361  2 229   1 994     801   1 665
%               -2.3%    9.3%   15.5%   -3.3%   5.4%   12.9%    5.5%   12.5%


RESTATED GROUP BALANCE SHEET


EUR thousand            31.3.   30.6.   30.9.  31.12.   31.1.   30.6.   30.9.
                         2005    2005    2005    2005    2006    2006    2006

ASSETS

NON-CURRENT ASSETS
Intangible assets       1 986   3 075   3 853   4 040   9 103   9 428   9 384
Goodwill                  982   3 372   4 168   4 481  17 763  18 350  18 228
Tangible assets           740     804     747     729   1 013     962     841
Investments in associates   3       3      10       3       3       3       3
Available-for-sale
investments                                             2 606   2 612   2 612
Trade and other
receivables                16      34      33      24      12      12      12
Deferred tax assets     2 084   2 762   2 698   3 296   4 056   3 588   3 446

Non-current assets      5 811  10 050  11 509  12 573  34 557  34 955  34 527

CURRENT ASSETS
Inventories                30      26      24       9      21      14       8
Trade and other
receivables             8 417   9 029   9 731   8 616  12 434  12 262  12 724
Income tax
receivables                                        43      72     112     125
Financial assets
at fair value
through profit and loss                                 5 835   5 873   5 915
Cash and cash
equivalents            10 847  10 058  10 514   9 987   5 318   5 439   3 993

Current assets         19 294  19 113  20 268  18 655  23 680  23 700  22 766

TOTAL ASSETS           25 105  29 163  31 777  31 228  58 237  58 655  57 293

EQUITY AND LIABILITIES

SHAREHOLDERS’ EQUITY
Share capital           2 851   2 875   2 900   2 963   3 402   3 404   3 440
Share premium
account                12 659  13 030  13 639  15 010  32 213  32 444  33 127
Other reserves                                                    540     514
Translation
differences               -22    -140     -40    -203     163     381     211
Retained earnings       1 121   2 192   3 881   3 527   4 282   4 915   6 584

Shareholders' equity   16 610  17 956  20 380  21 296  40 061  41 685  43 877

NON-CURRENT LIABILITIES
Deferred tax liability            179     326     283   1 541   1 457   1 415
Interest-bearing
liabilities             1 037   1 054     868     757     653     545     437

Non-current
liabilities             1 037   1 233   1 194   1 040   2 195   2 001   1 851

CURRENT LIABILITIES
Interest-bearing
liabilities               478     581     806     474     459     445     433
Trade payables and
other liabilities       5 899   9 014   9 130   8 066  14 575  13 738  10 085
Tax liability from
income tax              1 081     379     268     352     947     786   1 046

Current liabilities     7 458   9 974  10 203   8 892  15 982  14 969  11 565

TOTAL EQUITY
AND LIABILITIES        25 105  29 163  31 777  31 228  58 237  58 655  57 293



PREVIOUSLY REPORTED GROUP BALANCE SHEET


EUR thousand            31.3.   30.6.   30.9.  31.12.   31.1.   30.6.   30.9.
                         2005    2005    2005    2005    2006    2006    2006

ASSETS

NON-CURRENT ASSETS
Intangible assets       1 986   3 075   3 853   4 040   9 103   9 428   9 384
Goodwill                  982   3 372   4 168   4 481  17 763  18 350  18 228
Tangible assets           740     804     747     729   1 013     962     841
Investments in
associates                  3       3      10       3       3       3       3
Available-for-sale
investments                                             2 606   2 612   2 612
Trade and other
receivables                16      34      33      24      12      12      12
Deferred tax assets     1 559   2 208   2 541   2 582   3 651   2 924   2 958

Non-current assets      5 287   9 496  11 352  11 859  34 152  34 291  34 039

CURRENT ASSETS
Inventories                30      26      24       9      21      14       8
Trade and other
receivables            10 763  11 612  10 485  12 014  14 332  15 407  15 102
Income tax
receivables                                        43      72     112     125
Financial assets
at fair value
through profit and loss                                 5 835   5 873   5 915
Cash and cash
equivalents            10 847  10 058  10 514   9 987   5 318   5 439   3 993

Current assets         21 640  21 696  21 023  22 053  25 578  26 844  25 143

TOTAL ASSETS           26 927  31 192  32 374  33 912  59 730  61 136  59 182

EQUITY AND LIABILITIES

SHAREHOLDERS’ EQUITY
Share capital           2 851   2 875   2 900   2 963   3 402   3 404   3 440
Share premium
account                12 659  13 030  13 639  15 010  32 213  32 444  33 127
Other reserves                                                    540     514
Translation
differences               -22    -140     -40    -211     163     381     211
Retained earnings       2 691   3 814   4 356   5 662   5 526   6 808   8 191

Shareholders' equity   18 179  19 578  20 855  23 424  41 304  43 578  45 484

NON-CURRENT LIABILITIES
Deferred tax liability            179     326     283   1 541   1 457   1 415
Interest-bearing
liabilities             1 037   1 054     868     757     653     545     437
Non-current
liabilities             1 037   1 233   1 194   1 040   2 195   2 001   1 851

CURRENT LIABILITIES
Interest-bearing
liabilities               478     581     806     474     459     445     433
Trade payables and
other liabilities       6 152   9 421   9 252   8 623  14 824  14 080  10 368
Tax liability from
income tax              1 081     379     268     352     947   1 032   1 046
Current liabilities     7 711  10 381  10 326   9 448  16 231  15 557  11 847

TOTAL EQUITY
AND LIABILITIES        26 927  31 192  32 374  33 912  59 730  61 136  59 182



BASWARE CORP.
Ilkka Sihvo


Distribution:
Helsinki Stock Exchange
Principal media
www.basware.com

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