DONE SOLUTIONS? INTERIM REPORT FOR Q1/20
Done Solutions Corporation
Stock Exchange Release April 29, 2003 at 9.00 a.m.
DONE SOLUTIONS INTERIM REPORT FOR Q1/2003
- Consolidated net sales came to EUR 6.2 million (EUR 10.4 million in
2002, when comparable proforma net sales came to EUR 8.2 million).
- Consolidated operating loss totalled EUR 0.6 million (a loss of 2.0
million), accounting for 9.0 percent of net sales (-18.8 percent).
- Earnings per share came to EUR 0.01 (EUR -0.04), and the equity ratio
was 35.9 percent (24.1 percent).
- Liquid assets were EUR 1.2 million (EUR 1.2 million euros).
- As yet, the companys main business areas show no signs of a revival
in demand, and Done forecasts that this years comparable net sales will
be lower than in 2002, while operating profit remains slightly in the
red, albeit with a positive cash flow.
NET SALES, PROFITABILITY AND PROFIT BY BUSINESS AREA
Done Logistics
Demand for management systems, particularly for the Warehouse Management
Systems provided by the Systems & Software unit to the Nordic beverages
industry, was moderate, whereas demand for the materials handling
systems the unit provides was subdued, with no revival in sight. This
led to joint discussions in March in order to trim costs accordingly,
and through the resulting lay-offs and dismissals Done aims to generate
EUR 0.3 million in cost savings by the end of August.
Major orders during the first quarter included a Warehouse Management
System and packing system for the brewery and beverages industry, reel
handling system extensions for the paper industry and a terminal and
distribution contract concluded with a food manufacturer.
Done Information
Demand for multi-lingual documentation services remained at a
satisfactory level, while volumes and profits for translation and
localisation services came in according to plan. Demand for software
solutions was once again subdued, with the unit seeing new business
managers appointed during the period, and the provision of new
technology training to software developers to meet market demand more
effectively.
Despite a downturn in demand, the profitability of the Engineering
units services improved, although the business remained in the red. The
value added this business provides will be enhanced through measures
which include productizing some services and integrating them with those
of Software & Services.
Major orders during the period included multilingual documentation
projects for software firms, the vehicle manufacturing industry and a
hardware manufacturer, placed with the Software & Services unit.
Meanwhile, Engineering received orders for its product development and
design services from the electrical equipment and machine industry, and
for design work for ship renovation projects and the machine industry.
Done Information and Done Logistics net sales and profitability are
summarized below:
Net Sales Net Sales Operating Profit Operating Profit
Q1/2003 Q1/2002 Q1/2003 Q1/2002
MEUR share MEUR share MEUR % MEUR %
Done Logistics
Systems&Software 2.0 32% 4.4 42% -0.3 16% -0.9 19%
Distribution 2.1 34% 3.0 29% -0.0 -2% -0.3 -10%
Total 4.1 66% 7.4 71% -0.4 9% -1.2 15%
Done Information
Software&Services 1.7 27% 2.0 19% -0.0 -2% -0.1 -5%
Engineering 0.5 8% 1.0 9% -0.2 35% -0.7 73%
Total 2.2 34% 3.0 29% -0.2 9% -0.8 27%
Done Solutions 6.2 100% 10.4 100% -0.6 9% -2.0 19%
While net sales fell across the board in comparison to last year,
profitability improved within all units.
The comparable figures for 2002 include the Swedish Done Logistics AB
and its subsidiary Actipac AB, both declared bankrupt in April 2002,
until March 31, 2002. Their combined first-quarter net sales totaled EUR
2.2 million (Done Logistics Systems & Software accounting for EUR 1.8
million and Distribution for EUR 0.4 million), while their operating
loss amounted to EUR 0.4 million (Systems & Software EUR 0.4 million
and Distribution EUR 0.0 million).
FINANCIAL POSITION
The period-end consolidated balance sheet total amounted to EUR 10.1
million (EUR 18.1 million on March 31, 2002) while shareholders equity
came to EUR 3.6 million (EUR 4.3 million). The equity ratio was 35.9
percent (24.1 percent), gearing 0.2 percent (64.1 percent), net interest-
bearing liabilities were EUR 0.0 million (EUR 2.7 million). Earnings per
share came to EUR 0.01 (EUR -0.04). Equity per share was EUR 0.07 (EUR
0.08) while liquid assets totaled EUR 1.2 million (EUR 1.2 million) at
the end of the period.
The company forecasts that its cash flow will be positive over the next
twelve months and, as a result, the company anticipates that liquid
assets will prove sufficient over the same period.
INVESTMENTS AND DIVESTMENTS
The company did not made any major investments or divestments during the
quarter.
PRODUCT DEVELOPMENT
Product development costs for the period came to EUR 0.1 million, or 1.3
percent of net sales.
PERSONNEL
At the end of the period, the Group had a staff of 235, 3 of whom worked
abroad. On March 31, 2003, Done Logistics Systems & Software unit had
a staff of 86, Distribution 15, Done Informations Software & Services
79 and Engineering 55. A year ago the Groups staff numbered 344, 60 of
whom worked abroad.
In addition, Ametro Oy, a staffing service provider in which Done
Solutions has a 30 percent holding, had a staff of 129 at the end of the
report period.
SHARE CAPITAL, SHARES AND SHAREHOLDERS
On 31 March, 2003 Done Solutions had a share capital of EUR 7,420,122.60
and the number of shares totaled 49,467,484.
The companys largest shareholders will be listed on Dones website at
www.donesolutions.com (investors / financial information / largest
shareholders).
The highest share quotation for the period was EUR 0.20 and the lowest
EUR 0.12. With an average share price of EUR 0.16, the companys share
closed at EUR 0.13 on March 31, 2003. The reported value of share
turnover was EUR 0.2 million, or 1,052,589 shares, and the companys
market capitalization on that day was EUR 6.4 million.
The unexercised share-issue authorization given by the Annual General
Meeting of March 21, 2003 to the Board of Directors applied to 9,893,496
shares on March 31, 2003. As of the same date, the company held no
treasury shares.
MAJOR EVENTS DURING THE PERIOD
During the first quarter of 2003, the company continued to focus on
improving profitability and turning its cash flow positive. The
improvement in operating profit was the result of cost-cutting measures
and the streamlining of its operations. The period saw 1no revival in
demand.
The Group continued to restructure and streamline its operations, and
the dissolution of Done Logistics Oys Estonian subsidiaries, which had
no business operations, was registered in March 2003. The dissolution
had no significant impact on the results.
The AGM was held on March 21, 2003. The following essential decisions
were reached:
The AGM re-elected Jaakko Asanti, Jyri Merivirta and Pekka Pystynen as
Board members and elected Tapio Sarpola (M.Phil.) as a new Board member.
The AGM appointed Deloitte & Touche Oy, Authorized Public Accountants,
as Dones auditor, with Eero Lumme, Authorized Public Accountant, acting
as the principal auditor and Jonathan Bäck, Authorized Public
Accountant, as deputy auditor.
The AGM decided to cancel the share issue authorization given by the AGM
of May 13, 2002 to the extent that it had not yet been exercised and to
authorize the Board of Directors, within one year following the AGM, to
decide on issuing convertible bonds and/or stock options and/or
increasing the companys share capital through one or more issues in
such a way that the votes entitled by the shares to be issued account
for a maximum of one-fifth of the votes registered with the Trade
Register on the date of the AGMs decision on the Board authorization,
and the total share capital increase accounts for a maximum of one fifth
of the share capital registered with the Trade Register on the same
date.
Done issued a stock exchange release on the decisions of the AGM on
March 21, 2003.
MAJOR EVENTS AFTER THE PERIOD
A subsidiary in Sweden, which has no business operations, will be
dissolved some time this year. The dissolution will have no significant
impact on the results.
FUTURE PROSPECTS
As yet, there are no signs of a revival in demand in the companys main
business areas. Done Logistics business area is heavily dependent on
the size of the investments made by its main customers, the paper and
beverage industries. Neither of these areas showed signs of recovery
during the first quarter. Done Informations main customers are found
among machine and equipment manufacturers, and other areas of the metal
and electronics industries. Demand in this market segment has also
continued to languish at last years sluggish levels.
Done forecasts that its comparable net sales for the year will remain
lower than last years, and its operating profit will be slightly in the
red, albeit with a positive cash flow.
Done Solutions Corporation
Board of Directors
Further Information:
Kari Åkman, President and CEO, tel. + 358 (0)205 253427, gsm +358 (0)40 586
5927, kari.akman@donesolutions.com
Mika Söyring, Controller, tel. + 358 (0)205 253425, gsm +358 (0)40 777 0033,
mika.soyring@donesolutions.com
http://www.donesolutions.com
Distribution:
Helsinki Exchanges
Major Media
Done Solutions shares have been quoted on the Helsinki Exchanges NM
list since 2001, and the company is organized into two business areas:
Done Logistics provides comprehensive logistics systems, based on the
automation of materials handling, the supporting information systems and
outsourcing services. Done Information provides information solutions,
from design and documentation to after-sales marketing. Done Solutions
operates in selected industries in the Nordic countries, Central Europe
and the United States, and its customers typically represent leading
international companies in their industries.
GROUP KEY FIGURES AND RATIOS (MEUR) Q1/2003 Q1/2002 2002
Net Sales 6.2 10.4 32.0
Operating profit (loss) -0.6 -2.0 -5.0
Operating profit (loss), % -9.0 -18.8 -15.7
Profit (loss) before extraordinary -0.6 -2.2 -6.0
items
Profit (loss) before extraordinary -9.6 -21.5 -18.6
Items, %
Net profit (loss) for the period -0.7 -3.8 -7.7
Net profit (loss) for the period % -11.3 -35.9 -24.1
Gross capital expenditure (on 0.0 0.5 1.1
fixed and other non-current assets)
Net interest-bearing liabilities 0.0 2.7 -0.4
Gearing % 0.2 64.1 -8.5
Equity ratio % 35.9 24.1 37.0
Earnings per share, EUR -0.01 -0.04 -0.12
Equity per share, EUR 0.07 0.08 0.08
Average personnel for the period 242 368 300
Cash flow from business operations -0.4 -3.3 -4.8
Cash flow from investments 0.0 0.5 1.1
Cash flow from financing -0.1 1.3 2.6
Total cash flow -0.5 -1.5 -1.0
CONSOLIDATED INCOME STATEMENT (MEUR) Jan.- Jan.- Jan.-
Mar. Mar. Dec.
2003 2002 2002
NET SALES 6.2 10.4 32.0
Operating income, total 6.4 10.8 32.6
Materials and services -2.9 -5.6 -15.5
Personnel expenses -2.5 -4.3 -12.4
Depreciation -0.4 -0.4 -1.9
Other operating expenses -1.2 -2.3 -7.8
OPERATING PROFIT (LOSS) -0.6 -2.0 -5.0
Financial income 0.0 0.0 0.1
Financial expenses -0.1 -0.3 -1.1
PROFIT (LOSS) BEFORE EXTRAORDINARY
ITEMS -0.6 -2.2 -6.0
Extraordinary income 0.0 0.0 0.0
Extraordinary expenses 0.0 -1.5 -1.4
PROFIT (LOSS) BEFORE APPROPRIATIONS
AND TAXES -0.6 -3.7 -7.4
Direct taxes -0.1 -0.0 -0.3
Minority interests 0,0 0,0 0,0
NET PROFIT (LOSS) FOR THE PERIOD -0.7 -3.8 -7.7
CONSOLIDATED BALANCE SHEET March 31, 2003 March 31, 2002 Dec. 31, 2002
(MEUR)
ASSETS
FIXED AND OTHER NON-CURRENT ASSETS
Intangible assets 1.2 2.4 1.6
Tangible assets 0.8 1.6 0.9
Total long-term investments 1.0 1.6 1.0
FIXED AND OTHER NON-CURRENT ASSETS 3.1 5.5 3.5
INVENTORIES AND CURRENT ASSETS
Inventories 0.1 0.1 0.1
Long-term receivables 1.0 1.5 1.2
Short-term receivables 4.7 9.7 5.4
Short-term investments 0.0 0.5 0.0
Cash and cash equivalents 1.2 0.8 1.7
INVENTORIES AND CURRENT ASSETS, TOTAL 7.0 12.6 8.4
ASSETS TOTAL 10.1 18.1 11.9
LIABILITIES AND SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY
Share capital 7.4 7.4 7.4
Issue premium fund 0.4 11.4 4.8
Other funds 0.2 0.2 0.2
Other unrestricted funds 0.0 0.0 3.7
Retained earnings (loss) -3.7 -11.0 -4.2
Net profit (loss) for the period -0.7 -3.8 -7.7
Subordinated loans 0.0 0.0 0.0
SHAREHOLDERS EQUITY, TOTAL 3.6 4.3 4.3
DEPRECIATION DIFFERENCES AND
VOLUNTARY RESERVES 0.0 0.0 0.0
STATUTORY RESERVES 1.1 0.1 1.2
MINORITY INTEREST 0.0 0.0 0.0
Long-term liabilities 0.1 0.3 0.2
Short-term liabilities 5.2 13.4 6.2
LIABILITIES TOTAL 5.4 13.7 6.4
LIABILITIES AND SHAREHOLDERS EQUITY 10.1 18.1 11.9
The figures in this Interim Report are unaudited.
