DONE SOLUTIONS CORPORATION?S INTERIM REP
Done Solutions Corporation
Stock Exchange Release August 10, 2004, at 9:00 a.m.
DONE SOLUTIONS CORPORATIONS INTERIM REPORT FOR Q1-Q2/2004
- Consolidated net sales came to EUR 9.9 million (EUR 12.3 million in
Q1-Q2/2003).
- Consolidated operating loss came to EUR 0.2 million (a loss of EUR
1.0 million), or 1.8 percent of net sales (8.0 percent), including
EUR 0.7 million of sales profit.
- Net loss for the period totaled EUR 0.3 million (a loss of EUR 1.3
million), or 2.6 percent of net sales (10.3 percent).
- Earnings per share were EUR 0.005 (EUR 0.026), while equity ratio
stood at 14.3 percent (33.0 percent).
- In Q2, the Groups balance sheet became healthier than in Q1. The
equity ratio improved from the first quarters 10.0 percent to 14.3
percent, and liquid assets rose correspondingly from EUR 0.6 million to
EUR 1.6 million (EUR 1.1 million Q2/2003).
- Due to the slow recovery of investment demand for solutions provided
by Done Logistics and the divestment of Done Informations Software
unit, consolidated net sales for 2004 will be lower than in the
previous year. The Group expects to make an operating loss for 2004.
NET SALES AND PROFITABILITY
MEUR Q1/2004 Q2/2004 Total
Net sales 5.2 4.7 9.9
Operating profit/loss -0.5 0.3 -0.2
Profit/loss before extraordinary items 0.5 0.2 -0.3
Net profit/loss for the period -0.5 0.2 -0.3
Q2/2004 operating profit includes sales profit of EUR 0.7 million from
Software Solutions.
Done Logistics
Within Done Logistics, second-quarter demand was fair for management
systems software and maintenance services, while materials-handling
systems reported low order volumes despite the mild recovery of demand,
which had a major impact on the units profit performance. The largest
orders reported for the period included material handling systems for
the paper processing and beverage industries.
Providor Logistics
The Q2 volume and profit performance of Providor Logistics were at the
planned level, while the largest customers for the period were food and
consumer goods industries and commercial companies.
Done Information
The Q2 volume and profit performance of multilingual documentation as
well as Translation and Localization services were as planned. On April
28, 2004, Done Information sold its Software Solutions unit (a staff of
26) to SysOpen Plc.
The largest orders reported for the period included multilingual
documentation services for Finnish machine and equipment manufacturers,
software companies and the public sector.
Net sales and profitability by business unit:
Net Sales Net Sales Operating Profit/Loss
Q1-Q2/2004 Q1-Q2/2003 Q1-Q2/2004 Q1-Q2/2003
MEUR Share MEUR Share MEUR % MEUR %
Done Logistics 1.6 16% 3.3 27% -0.8 54 0.6 -21
Providor Logistics 5.2 53% 4.9 40% 0.1 2 -0.0 -0
Done Information 3.1 31% 4.1 33% 0.5 17 -0.3 -8
Done Solutions group 9.9 100% 12.3 100% -0.3 2 -1.0 -8
Done Informations Q2/2004 operating profit includes sales profit of
EUR 0.7 million from Software Solutions.
FINANCIAL POSITION
Period-end consolidated balance sheet total amounted to EUR 5.9 million
(EUR 9.3 million on June 30, 2003) while shareholders equity came to
EUR 0.8 million (EUR 3.0 million). Parent company shareholders equity
amounted to EUR 3.8 million (EUR 6.9 million). At period-end, equity
ratio was 14.3 percent (33.0 percent), gearing stood at -61.9 percent
(4.2 percent) and interest-bearing liabilities totaled EUR 1.1 million
(EUR 1.2 million). Earnings per share came to EUR 0.005 (EUR 0.026).
Equity per share was EUR 0.016 (EUR 0.061). Liquid assets totaled EUR
1.6 million (EUR 1.1 million) at the end of the period. The period
under review saw a positive cash flow from business operations, EUR 0.5
million (EUR -0.6 million).
The Group expects to show a positive cash flow from business operations
over the next twelve months. The company estimates that its liquid
assets will suffice during the next 12-month period.
INVESTMENTS, DIVESTMENTS AND R&D
On April 28, 2004, Done sold its Software Solutions unit (a staff of
26) within Done Information to SysOpen Plc for EUR 0.8 million of which
Done Solutions booked EUR 0.7 million profit.
Product development costs for the period came to EUR 0.1 million, or
0.7 percent of net sales.
HUMAN RESOURCES
At the end of the period, the Group had a total staff of 162. Done
Logistics had a staff of 67, Providor Logistics 15 and Done Information
80. A year ago, the Groups staff numbered 238.
In addition, Ametro Oy, a staffing services provider in which Done
Solutions has a 30 percent holding, had a staff of 141 at the end of
the report period.
SHARE CAPITAL, SHARES AND SHAREHOLDERS
On June 30, 2004 Done Solutions had a share capital of EUR 3,957,398.72
and the number of shares totaled 49,467,484.
The companys largest shareholders are listed on Dones website at
www.donesolutions.com (Investors / Largest shareholders).
The highest share quotation for the period was EUR 0.28 and the lowest
EUR 0.12. With an average price of EUR 0.21, the companys share closed
at EUR 0.14 on June 30, 2004. The reported share turnover was EUR 2.3
million, or 11,026,686 shares, and the companys market capitalization
on June 30, 2004 came to EUR 6.9 million.
The unexercised share-issue authorization given by the Annual General
Meeting of March 26, 2004 to the Board of Directors applied to
9,893,496 shares on June 30, 2004. As of the same date, the company
held no treasury shares.
MAJOR EVENTS
Please refer to the NET SALES AND PROFITABILITY section for
information on major events during the report period. The period was
still characterized by difficult market conditions within Done
Logistics. Other units experienced satisfactory demand and
profitability levels during the report period.
MAJOR EVENTS AFTER THE PERIOD
Kari Åkman will step down as CEO of Done Solutions Corporation at the
end of September 2004. The company started to look for a new CEO in
August 2004.
FUTURE PROSPECTS
Done Logistics will continue to face difficult market conditions,
whereas Done Informations prospects of present businesses are expected
to develop favorably. Prospects for Providor Logistics businesses are
expected to continue on the present level during the rest of the year.
Due to the slow recovery in investment demand for solutions provided by
Done Logistics and the divestment of Done Informations Software unit,
consolidated net sales for 2004 will be lower than in the previous
year. The Group expects to make an operating loss for 2004 as a whole.
Done Solutions Corporation
Board of Directors
For further information, please contact:
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
With its shares having been quoted on the Helsinki Exchanges NM list
since 2001, the company is organized into three business units: Done
Logistics provides comprehensive logistics systems, based on automated
materials-handling and supporting information systems. Providor
Logistics provides distribution and warehousing services. Done
Information provides multilingual documentation services. The largest
customers are in the Nordic countries, Central Europe and the United
States.
GROUP KEY FIGURES AND RATIOS (MEUR) Q1-Q2/2004 Q1-Q2/2003 2003
Net Sales 9.9 12.3 22.6
Operating profit (loss) -0.2 -1.0 -2.5
Operating profit (loss), % -1.8 -8.0 -11.0
Profit (loss) before extraordinary -0.3 -1.1 -2.8
items
Profit (loss) before extraordinary -2.6 -8.6 -12.3
items, %
Net profit (loss) for the period -0.3 -1.3 -3.2
Net profit (loss) for the period % -2.6 -10.3 -14.2
Gross capital expenditure 0.0 0.0 0.1
Gearing % -61.9 4.2 4.5
Equity ratio % 14.3 33.0 16.7
Earnings per share, EUR -0.005 -0.026 -0.065
Equity per share, EUR 0.016 0.061 0.022
Average personnel for the period 178 240 232
Cash flow from business operations 0.6 -0.5 -0.6
Cash flow from investments -0.0 0.0 0.0
Cash flow from financing -0.0 -0.1 -0.0
Total cash flow 0.5 -0.6 -0.6
CONSOLIDATED INCOME STATEMENT (MEUR) Q1-Q2/2004 Q1-Q2/2003 2003
NET SALES 9.9 12.3 22.6
Operating income, total 10.7 12.5 22.8
Materials and services -5.4 -5.8 -11.0
Personnel expenses -3.4 -4.7 -8.5
Depreciation -0.4 -0.8 -1.5
Other operating expenses -1.6 -2.2 -4.4
OPERATING PROFIT (LOSS) -0.2 -1.0 -2.5
Financial income 0.0 0.0 0.1
Financial expenses -0.1 -0.1 -0.4
PROFIT (LOSS) BEFORE EXTRAORDINARY
ITEMS -0.3 -1.1 -2.8
Extraordinary income 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0
PROFIT (LOSS) BEFORE APPROPRIATIONS
AND TAXES -0.3 -1.1 -2.8
Direct taxes -0.0 -0.2 -0.4
Minority interest 0.0 0.0 0.0
NET PROFIT (LOSS) FOR THE PERIOD -0.3 -1.3 -3.2
CONSOLIDATED BALANCE SHEET June 30, 2004 June 30, 2003 Dec. 31, 2003
(MEUR)
ASSETS
FIXED AND OTHER NON-CURRENT ASSETS
Intangible assets 0.1 0.9 0.4
Tangible assets 0.4 0.8 0.5
Total long-term investments 0.7 1.0 0.8
FIXED AND OTHER NON-CURRENT ASSETS 1.2 2.7 1.7
INVENTORIES AND CURRENT ASSETS
Inventories 0.1 0.1 0.1
Long-term receivables 0.3 1.0 0.9
Short-term receivables 2.8 4.4 2.8
Short-term investments 0.0 0.0 0.0
Cash and cash equivalents 1.6 1.1 1.1
INVENTORIES AND CURRENT ASSETS, TOTAL 4.7 6.6 4.8
ASSETS TOTAL 5.9 9.3 6.5
LIABILITIES AND SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY
Share capital 4.0 7.4 7.4
Issue premium fund 0.4 0.4 0.4
Other funds 0.2 0.2 0.2
Retained earnings (loss) -3.5 -3.7 -3.7
Net profit (loss) for the period -0.3 -1.3 -3.2
Subordinated loans 0.0 0.0 0.0
SHAREHOLDERS EQUITY, TOTAL 0.8 3.0 1.1
DEPRECIATION DIFFERENCES AND
VOLUNTARY RESERVES 0.0 0.0 0.0
STATUTORY RESERVES 1.1 1.1 1.2
MINORITY INTEREST 0.0 0.0 0.0
Long-term liabilities 0.0 0.1 1.0
Short-term liabilities 3.9 5.1 3.2
LIABILITIES TOTAL 3.9 5.2 4.2
LIABILITIES AND SHAREHOLDERS EQUITY 5.9 9.3 6.5
The data in this Interim Report are based on unaudited figures.
