DONE SOLUTIONS CORPORATION?S INTERIM REP
Done Solutions Corporation
Stock Exchange Release April 29, 2004, at 9:00 a.m.
DONE SOLUTIONS CORPORATIONS INTERIM REPORT FOR Q1/2004
- Consolidated net sales came to EUR 5.2 million (EUR 6.2 million in
Q1/2003).
- Consolidated operating loss amounted to EUR 0.5 million (a loss of
EUR 0.6 million), or -8.8 percent of net sales (-9.0 percent).
- Net loss for the period totaled EUR 0.5 million (a loss of EUR 0.7
million), or -9.5 percent of net sales (-11.3 percent).
- Earnings per share were EUR -0.010 (EUR -0.014), while equity ratio
stood at 10.0 percent (35.9 percent).
- Period-end liquid assets were EUR 0.6 million (EUR 1.2 million).
- Due to slower-than-expected recovery in investment demand for
solutions provided by Done Logistics, coupled with 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.
NET SALES AND PROFITABILITY
MEUR Q1/2004 Q1/2003
Net sales 5.2 6.3
Operating profit/loss -0.5 -0.6
Profit/loss before extraordinary items -0.5 -0.6
Net profit/loss for the period -0.5 -0.7
Done Logistics
Within Systems & Software, first-quarter demand was fair 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. Customers continued to postpone their
investment decisions until a later date. As a result, the unit
continued to restructure its operations in Q1. Following the joint
discussions with employees (based on Statutory Information and
Consultation procedure), the unit may, as of April 1, lay off a maximum
of 60 employees on a fixed-term basis and/or dismiss a maximum of 10
employees by the end of the year, depending on manpower requirements.
Providor Logistics
On January 1, 2004, the Group spun off its subsidiary Done Logistics
Oys Distribution unit, provider of distribution and warehousing
services, as part of Providor Logistics Oy. The Q1 volume and profit
performance of Providor Logistics were at the planned levels.
Done Information
The Q1 volume and profit performance of multilingual documentation
services were as planned. With higher-than-expected profit, Translation
and Localization services showed good performance. Sales of software
solutions remained at low levels.
The largest orders reported for the period included multilingual
documentation services for Finnish machine and equipment manufacturers
and software companies.
Net sales and profitability by business unit:
Net Sales Net Sales Operating Profit/Loss
Q1/2004 Q1/2003 Q1/2004 Q1/2003
MEUR Share MEUR Share MEUR % MEUR %
Done Logistics 0.9 18% 2.0 32% -0.4 -47 -0.3 -16
Providor Logistics 2.5 48% 2.1 34% 0.0 2 -0.0 -2
Done Information 1.8 34% 2.2 34% -0.1 -3 -0.2 -9
Done Solutions group 5.2 100% 6.2 100% -0.5 -9 -0.6 -9
FINANCIAL POSITION
Period-end consolidated balance sheet total amounted to EUR 5.8 million
(EUR 10.1 million on March 31, 2003) while shareholders equity came to
EUR 0.6 million (EUR 3.6 million). Parent company shareholders equity
amounted to EUR 4.0 million (EUR 7.5 million). At period-end, equity
ratio was 10.0 percent (35.9 percent), gearing stood at 82.2 percent
(0.2 percent) and interest-bearing liabilities totaled EUR 1.1 million
(EUR 1.1 million). Earnings per share came to EUR -0.010 (EUR -0.014).
Equity per share was EUR 0.012 (EUR 0.070). Liquid assets totaled EUR
0.6 million (EUR 1.2 million) at the end of the period.
The Group expects that it will 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.
CAPITAL EXPENDITURE AND R&D
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
1.4 percent of net sales.
HUMAN RESOURCES
At the end of the period, the Group had a total staff of 188. Done
Logistics had a staff of 69, Providor Logistics 14 and Done Information
105. A year ago, the Groups staff numbered 235.
In addition, Ametro Oy, a staffing services 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
The AGM of March 26, 2004 decided that the companys registered share
capital of EUR 7,420,122.60 would be reduced, without consideration, by
EUR 3,462,723.88, based on the reduction of a shares book counter
value, with the result that the new reduced share capital to be
registered would total EUR 3,957,398.72, consisting of 49,467,484
shares, with each share carrying a book counter value of EUR 0.08. The
AGM decided that this EUR 3,462,723.88, corresponding to the value of
reduction, would be immediately used for covering the loss indicated by
the adopted balance sheet. As a result of the share capital reduction
registered with the Trade Register on March 31, 2004, the companys
registered share capital decreased by EUR 3,462,723.88, to EUR
3,957,398.72. Following the registration on March 31, 2004, the
companys and the Groups restricted shareholders equity now totals
EUR 4,524,836.88, consisting of registered share capital of EUR
3,957,398.72, issue premium fund of EUR 375,177.66 and other funds of
EUR 192,260.50.
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 0.28 and the lowest
EUR 0.16. With an average price of EUR 0.22, the companys share closed
at EUR 0.18 on March 31, 2004. The reported share turnover was EUR 2.1
million, or 9,592,400 shares, and the companys market capitalization
on March 31, 2004 came to EUR 8.9 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 March 31, 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 and Done Informations Software unit. Other units experienced
satisfactory demand and profitability levels during the report period.
DECISIONS BY THE ANNUAL GENERAL MEETING
Done Solutions Corporations (Done) Annual General Meeting (AGM) on
March 26, 2004 made the following decisions:
1. Financial statements, Board of Directors and auditors
The AGM adopted the financial statements and discharged the Board
members and the President and CEO from liability for the fiscal year of
January 1-December 31, 2003. The AGM approved the proposal by the Board
of Directors for the allocation of losses of EUR 3,773,900.67 for the
fiscal year to be entered in retained loss. No dividends shall be
distributed.
The AGM elected Jaakko Asanti, Jyri Merivirta and Pekka Pystynen to
Dones Board of Directors. Following the AGM, the Board of Directors
elected at their organizing meeting on March 26, 2003 Pekka Pystynen as
the Chairman of the Board.
Deloitte & Touche Oy, Authorized Public Accountants, was elected as
Dones auditor, with Eero Lumme, Authorized Public Accountant, acting
as the regular auditor. Jonathan Bäck, Authorized Public Accountant,
was elected as deputy auditor.
2. Reduction of the companys registered share capital
The AGM decided the reduction of the companys registered share capital
described in section "SHARE CAPITAL, SHARES AND SHAREHOLDERS".
3. Share-issue authorization
The AGM authorized the Board of Directors to decide, within one year
following the AGM, to issue convertible bonds and/or stock options, and
increase share capital through one or more issues in such a way that
the votes entitled by shares to be issued correspond to a maximum of
one-fifth of the votes of the shares registered with the Trade Register
on the date of the AGMs decision on Board authorization and on the
date of the Boards decision on the share capital increase, and that
the total share capital increase accounts for a maximum of one-fifth of
the share capital registered with the Trade Register on the date of the
AGMs decision on Board authorization and on the date of the Boards
decision on the share capital increase.
4. Change in stock-option scheme
The AGM decided to amend the terms of the stock-option scheme, decided
by the AGM on April 12, 2002, in such a way that the stock options
under the said stock-option scheme will entitle their holders to
subscribe for the companys shares, with each share carrying a book
counter value of EUR 0.08.
MAJOR EVENTS AFTER THE PERIOD
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.
FUTURE PROSPECTS
Done Logistics will continue to face difficult market conditions,
whereas Done Informations prospects look bright. Prospects for
Providor Logistics businesses are expected to continue to develop as
planned during the rest of the year.
The Board of Directors has taken measures to improve the companys
equity ratio. The divestment of Done Informations Software unit will
raise the ratio by 5-10 percentage units in the second half.
Due to slower-than-expected 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 areas: 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 and software
solutions. Done Solutions Corporation operates in selected industries
in the Nordic countries, Central Europe and the United States.
GROUP KEY FIGURES AND RATIOS (MEUR) Q1/2004 Q1/2003 2003
Net Sales 5.2 6.2 22.6
Operating profit (loss) -0.5 -0.6 -2.5
Operating profit (loss), % -8.8 -9.0 -11.0
Profit (loss) before extraordinary -0.5 -0.6 -2.8
items
Profit (loss) before extraordinary -9.5 -9.6 -12.3
items, %
Net profit (loss) for the period -0.5 -0.7 -3.2
Net profit (loss) for the period % -9.5 -11.3 -14.2
Gross capital expenditure 0.0 0.0 0.1
Gearing % 82.2 0.2 4.5
Equity ratio % 10.0 35.9 16.7
Earnings per share, EUR -0.010 -0.014 -0.065
Equity per share, EUR 0.012 0.070 0.022
Average personnel for the period 192 242 232
Cash flow from business operations -0.4 -0.4 -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 -0.4 -0.5 -0.6
CONSOLIDATED INCOME STATEMENT (MEUR) Q1/2004 Q1/2003 2003
NET SALES 5.2 6.2 22.6
Operating income, total 5.2 6.4 22.8
Materials and services -2.7 -2.9 -11.0
Personnel expenses -1.9 -2.5 -8.5
Depreciation -0.2 -0.4 -1.5
Other operating expenses -0.9 -1.2 -4.4
OPERATING PROFIT (LOSS) -0.5 -0.6 -2.5
Financial income 0.0 0.0 0.1
Financial expenses -0.0 -0.1 -0.4
PROFIT (LOSS) BEFORE EXTRAORDINARY
ITEMS -0.5 -0.6 -2.8
Extraordinary income 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0
PROFIT (LOSS) BEFORE APPROPRIATIONS
AND TAXES -0.5 -0.6 -2.8
Direct taxes -0.0 -0.1 -0.4
Minority interest 0.0 0.0 0.0
NET PROFIT (LOSS) FOR THE PERIOD -0.5 -0.7 -3.2
CONSOLIDATED BALANCE SHEET March 31, 2004 March 31, 2003 Dec. 31, 2003
(MEUR)
ASSETS
FIXED AND OTHER NON-CURRENT ASSETS
Intangible assets 0.2 1.2 0.4
Tangible assets 0.4 0.8 0.5
Total long-term investments 0.8 1.0 0.8
FIXED AND OTHER NON-CURRENT ASSETS 1.4 3.1 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 3.3 4.7 2.8
Short-term investments 0.0 0.0 0.0
Cash and cash equivalents 0.6 1.2 1.1
INVENTORIES AND CURRENT ASSETS, TOTAL 4.3 7.0 4.8
ASSETS TOTAL 5.8 10.1 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 -0.5 -0.7 -3.2
Subordinated loans 0.0 0.0 0.0
SHAREHOLDERS EQUITY, TOTAL 0.6 3.6 1.1
DEPRECIATION DIFFERENCES AND
VOLUNTARY RESERVES 0.0 0.0 0.0
STATUTORY RESERVES 1.2 1.1 1.2
MINORITY INTEREST 0.0 0.0 0.0
Long-term liabilities 0.0 0.1 1.0
Short-term liabilities 4.0 5.2 3.2
LIABILITIES TOTAL 4.0 5.4 4.2
LIABILITIES AND SHAREHOLDERS EQUITY 5.8 10.1 6.5
The data in this Interim Report are based on unaudited figures.
