DONE SOLUTIONS? INTERIM REPORT FOR Q1-Q3
Done Solutions Corporation
Stock Exchange Release October 30, 2003 at 9.00 a.m.
DONE SOLUTIONS INTERIM REPORT FOR Q1-Q3/2003
- Consolidated net sales for the period came to EUR 17.4 million (EUR
24.8 million in Q1-Q3/2002, comparable net sales were EUR 22.6 million
in Q1-Q3/2002)
- Consolidated operating loss amounted to EUR 1.6 million (a loss of
EUR 4.0 million), or 9.3 percent of net sales (16.0 percent), and net
loss for the period totaled EUR 2.2 million (a loss of EUR 6.3
million), or 12.6 percent of net sales (25.4 percent).
- Earnings per share were EUR 0.045 (EUR 0.096), while equity ratio
stood at 28.6 percent (41.5 percent).
- Liquid assets were EUR 0.6 million (EUR 0.9 million).
- The company improved its profit performance during the report period,
although still showing a loss.
- The company estimates that its net sales for the second half will be
slightly lower than those for the first half, while showing operating
results similar to those of the first half. The company expects to show
an operating loss for 2003. The company is expected to show a neutral
cashflow during the second half and a slightly negative cashflow during
2003 as a whole.
NET SALES AND PROFITABILITY
MEUR Q1/2003 Q2/2003 Q3/2003 Total
Net sales 6.3 6.0 5.1 17.4
Operating profit/loss -0.6 -0.4 -0.6 -1.6
Profit/loss before extraordinary items 0.6 -0.5 -0.8 -1.9
Net profit/loss for the period -0.7 -0.6 -0.9 -2.2
Done Logistics
Within Systems & Software, third-quarter demand was satisfactory for
management systems software and maintenance services while materials
handling systems reported low order volumes, which had a major impact
on the units profit performance. As a result, the unit began to
restructure its operations during Q3, with a view to boosting sales and
improving project implementation methods. Following the joint
discussions with employees (based on statutory information and
consultation), the unit decided to lay off 21 employees for a maximum
of 90 days by the end of December, and, depending on manpower
requirements, a maximum of 40 employees for a maximum of 90 days by the
end of March. Distribution showed satisfactory order volumes and
operating profit.
Done Information
Within Software & Services, the Q3 volume and profit performance of
multilingual documentation services remained weaker than planned,
whereas the units Translation and Localization services met volume and
profit performance targets. Sales of the units software solutions
remained at low levels, even though the market showed signs of
rebounding demand. As a result of joint discussions with employees
(based on statutory information and consultation), the Software unit
decided to lay off a maximum of 17 employees for a maximum of 90 days
by the end of December.
Within Engineering, demand remained subdued for new projects, whereas
that for projects with current customers remained at a satisfactory
level. Due to the low order volumes the unit showed a weak profit
performance. New project launches were postponed until a later date, as
customers refrained from investments.
Done Information and Done Logistics net sales and profitability are
summarized below:
Net Sales Net Sales Operating Profit/Loss
Q1-Q3/2003 Q1-Q3/2002 Q1-Q3/2003 Q1-Q3/2002
MEUR Share MEUR Share MEUR % MEUR %
Done Logistics
Systems&Software 4.6 27% 9.0 36% -1.1 23% 1.7 -19%
Distribution 7.1 41% 7.4 30% 0.1 1% 0.7 10%
Total 11.8 68% 16.4 66% 1.0 9% 2.4 15%
Done Information
Software&Services 4.6 27% 5.9 24% -0.0 -0% -0,2 -3%
Engineering 1.0 6% 2.5 10% 0.6 -62% -1.4 -56%
Total 5.6 32% 8.4 34% -0.6 -11% -1.6 -18%
Done Solutions 17.4 100% 24.8 100% -1.6 9% -4.0 -16%
While year-on-year net sales fell across the board, operating results
in euros improved within all units.
Net sales Net sales Net sales Net sales
Q1/2003 Q2/2003 Q3/2003 Total
MEUR Share MEUR Share MEUR Share MEUR Share
Done Logistics
Systems&Software 2.0 32% 1.3 22% 1.4 27% 4.6 27%
Distribution 2.1 34% 2.8 47% 2.2 43% 7.1 41%
Total 4.1 66% 4.1 68% 3.6 70% 11.8 68%
Done Information
Software&Services 1.7 27% 1.6 26% 1.4 27% 4.6 27%
Engineering 0.5 8% 0.3 6% 0.1 3% 1.0 6%
Total 2.2 34% 1.9 32% 1.5 30% 5.6 32%
Done Solutions 6.3 100% 6.0 100% 5.1 100% 17.4 100%
Operating profit/loss Operating profit/loss
Q1/2003 Q2/2003 Q3/2003 Total
MEUR % MEUR % MEUR % MEUR %
Done Logistics
Systems&Software -0.3 -16% -0.3 -27% -0.4 -30% -1.1 -23%
Distribution -0.0 -2% 0.0 2% 0.0 3% 0.1 1%
Total -0.4 -9% -0.3 7% -0.3 -10% -1.0 -9%
Done Information
Software&Services 0.0 -2% 0.1 4% -0.0 -2% -0.0 -0%
Engineering -0.2 -35% -0.2 50% -0.3 -184% -0.6 -62%
Total -0.2 -9% -0.1 -6% -0.3 -19% -0.6 -11%
Done Solutions -0.6 -9% -0.4 -7% -0.6 -13% -1.6 -9%
The comparable figures for 2002 include Done Logistics Ab (Done
Solutions Swedish subsidiary) and its subsidiary, Actipac Ab, both
declared bankrupt in April 2002, until March 31, 2002. Their combined
net sales for JanuaryMarch 2002 totaled EUR 2.2 million (Done
Logistics Systems & Software accounting for EUR 1.8 million
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 items include EUR 0.15 million expense from associated
company Ametro Oy which made one-time write-downs of goodwill.
Taxes for the period include EUR 0.3 million write-downs of avoir
fiscal receivables.
FINANCIAL POSITION
Period-end consolidated balance sheet total amounted to EUR 7.3 million
(EUR 14.0 million on September 30, 2002) while shareholders equity
came to EUR 2.1 million (EUR 5.7 million). The shareholders equity of
the parent company amounted to EUR 6.3 million (EUR 13.0 million). At
period-end, the consolidated equity ratio was 28.6 percent (41.5
percent), gearing stood at 27.6 percent (34.5 percent) and interest-
bearing liabilities EUR 1.1 million (EUR 2.9 million). Earnings per
share came to EUR 0.045 (EUR 0.096). Equity per share was EUR 0.042
(EUR 0.115). Liquid assets totaled EUR 0.6 million (EUR 0.9 million) at
the end of the period.
The Group forecasts that its cashflow from business operations will be
positive over the next twelve months. The company estimates that its
liquid assets will suffice during the next 12-month period.
INVESTMENTS AND PRODUCT DEVELOPMENT
The company did not make any major investments or divestments during
the report period.
Product development costs for the period came to EUR 0.1 million, or
0.6 percent of net sales.
HUMAN RESOURCES
At the end of the period, the Group had a total staff of 218. Done
Logistics Systems & Software unit had a staff of 71, Distribution 18,
Done Informations Software & Services 98 and Engineering 31. A year
ago, the Groups staff numbered 264.
In addition, Ametro Oy, a staffing service provider in which Done
Solutions has a 30 percent holding, had a staff of 159 at the end of
the report period.
SHARE CAPITAL, SHARES AND SHAREHOLDERS
On September 30, 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 are 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 0.10. With an average price of EUR 0.13, the companys share closed
at EUR 0.14 on September 30, 2003. The reported value of share turnover
was EUR 0.7 million, or 5,347,173 shares, and the companys market
capitalization on September 30, 2003 was EUR 6.9 million.
The unexercised share-issue authorization given by the Annual General
Meeting of March 21, 2003 to the Board of Directors applies to
9,893,496 shares on September 30, 2003. As of the same date, the
company held no treasury shares.
MAJOR EVENTS DURING THE PERIOD
Please refer to the öNET SALES AND PROFITABILITYö section for
information on major events during the report period. The period was
still characterized by difficult market conditions, and the company
continued its streamlining and restructuring program, with the aim of
matching the current business volume.
MAJOR EVENTS AFTER THE PERIOD
Done Solutions has reached agreement on the remaining purchase price
for Done Information, Inc. (formerly Dialogue Marketing, Inc.). Done
Solutions was paid EUR 0.3 million on October 15, 2003. After the write-
downs of 2002, the agreement will not considerably contribute to the
results of 2003.
Done Solutions has decided to spin off the Distribution business within
Done Logistics. The January 1, 2003 starting company will be named
Providor Logistics Oy.
FUTURE PROSPECTS
The company estimates that the second half net sales will fall slightly
below the first-half levels, and the operating loss will be at the firs-
half level. The company expects to show a loss for 2003. The company is
expected to show a neutral cashflow during the second half and a
slightly negative cashflow during 2003 as whole.
Done Solutions Corporation
Board of Directors
For further information, please contact:
Kari Åkman, President and CEO, tel. + 358 (0)205 253427, gsm 040 586
5927, kari.akman@donesolutions.com
Mika Söyring, Controller, tel. + 358 (0)205 253425, gsm 040 777 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-Q3/2003 Q1-Q3/2002 2002
Net Sales 17.4 24.8 32.0
Operating profit (loss) -1.6 -4.0 -5.0
Operating profit (loss), % -9.3 -16.0 -15.7
Profit (loss) before extraordinary -1.9 -4.7 -6.0
items
Profit (loss) before extraordinary -10.8 -19.0 -18.6
items, %
Net profit (loss) for the period -2.2 -6.3 -7.7
Net profit (loss) for the period % -12.6 -25.4 -24.1
Gross capital expenditure 0.2 1.1 1.1
Gearing % 27.6 34.5 -8.5
Equity ratio % 28.6 41.5 37.0
Earnings per share, EUR -0.045 -0.096 -0.127
Equity per share, EUR 0.042 0.115 0.087
Average personnel for the period 233 309 300
Cash flow from business operations -0.9 -7.1 -4.8
Cash flow from investments -0.0 1.1 1.1
Cash flow from financing -0.2 4.3 2.6
Total cash flow -1.1 -1.7 -1.0
CONSOLIDATED INCOME STATEMENT (MEUR) Q1-Q3/2003 Q1-Q3/2002 2002
NET SALES 17.4 24.8 32.0
Operating income, total 17.6 25.4 32.6
Materials and services -8.4 -12.4 -15.5
Personnel expenses -6.5 -9.9 -12.4
Depreciation -1.1 -1.4 -1.9
Other operating expenses -3.2 -5.7 -7.8
OPERATING PROFIT (LOSS) -1.6 -4.0 -5.0
Financial income 0.0 0.1 0.1
Financial expenses -0.3 -0.8 -1.1
PROFIT (LOSS) BEFORE EXTRAORDINARY
ITEMS -1.9 -4.7 -6.0
Extraordinary income 0.0 0.0 0.0
Extraordinary expenses 0.0 -1.6 -1.4
PROFIT (LOSS) BEFORE APPROPRIATIONS
AND TAXES -1.9 -6.3 -7.4
Direct taxes -0.3 -0.0 -0.3
Minority interest 0,0 0,0 0,0
NET PROFIT (LOSS) FOR THE PERIOD -2.2 -6.3 -7.7
CONSOLIDATED BALANCE SHEET Sept 30, 2003 Sept 30, 2002 Dec. 31, 2002
(MEUR)
ASSETS
FIXED AND OTHER NON-CURRENT ASSETS
Intangible assets 0.7 2.0 1.6
Tangible assets 0.7 1.1 0.9
Total long-term investments 0.8 1.0 1.0
FIXED AND OTHER NON-CURRENT ASSETS 2.1 4.1 3.5
INVENTORIES AND CURRENT ASSETS
Inventories 0.1 0.1 0.1
Long-term receivables 0.7 1.4 1.2
Short-term receivables 3.8 7.5 5.4
Short-term investments 0.0 0.0 0.0
Cash and cash equivalents 0.6 0.9 1.7
INVENTORIES AND CURRENT ASSETS, TOTAL 5.2 9.9 8.4
ASSETS TOTAL 7.3 14.0 11.9
LIABILITIES AND SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY
Share capital 7.4 7.4 7.4
Issue premium fund 0.4 4.8 4.8
Other funds 0.2 0.2 0.2
Other unrestricted funds 0.0 3.7 3.7
Retained earnings (loss) -3.7 -4.2 -4.2
Net profit (loss) for the period -2.2 -6.3 -7.7
Subordinated loans 0.0 0.0 0.0
SHAREHOLDERS EQUITY, TOTAL 2.1 5.7 4.3
DEPRECIATION DIFFERENCES AND
VOLUNTARY RESERVES 0.0 0.0 0.0
STATUTORY RESERVES 0.9 0.7 1.2
MINORITY INTEREST 0.0 0.0 0.0
Long-term liabilities 0.1 0.4 0.2
Short-term liabilities 4.2 7.2 6.2
LIABILITIES TOTAL 4.3 7.6 6.4
LIABILITIES AND SHAREHOLDERS EQUITY 7.3 14.0 11.9
The figures in this Interim Report are unaudited.
