TECNOMEN'S INTERIM REPORT 1 JANUARY - 31 MARCH 2008 (unaudited)
Tecnomen Corporation INTERIM REPORT 23 April 2008 at 8.30 am
TECNOMEN'S INTERIM REPORT 1 JANUARY - 31 MARCH 2008 (unaudited)
Net sales in the review period totalled EUR 15.2 (11.0) million, the operating
result was EUR -0.4 (-2.0) million, and cash flow from operations was EUR -1.5
(-7.1) million. The order book at the close of the period stood at EUR 16.8
(15.9) million. Tecnomen has received major orders in April in Latin America for
expansions to the Tecnomen Convergent Charging system. These orders have a
combined value of USD 7.5 million.
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| KEY FIGURES | 1-3/08 | 1-3/07 | 2007 |
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| Net sales, MEUR | 15.2 | 11.0 | 70.1 |
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| Net sales, change % | 37.4 | -27.3 | -2.4 |
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| Operating result, MEUR | -0.4 | -2.0 | 8.9 |
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| % of net sales | -2.6 | -17.7 | 12.7 |
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| Profit before taxes, MEUR | -0.4 | -1.7 | 10.0 |
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| % of net sales | -2.4 | -15.3 | 14.2 |
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| Result for the period | -1.3 | -1.5 | 8.7 |
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| Earnings per share, basic, EUR | -0.02 | -0.03 | 0.15 |
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| Earnings per share, diluted, EUR | -0.02 | -0.03 | 0.15 |
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| Order book, MEUR | 16.8 | 15.9 | 17.5 |
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| Cash flow, MEUR | -5.6 | -13.0 | -2.8 |
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| Operating cash flow, MEUR | -1.5 | -7.1 | -2.9 |
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| Cash funds, MEUR | 11.8 | 7.3 | 17.5 |
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| Equity ratio, % | 83.9 | 85.1 | 83.7 |
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| Gearing, % | -16.2 | -10.8 | -22.4 |
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| Personnel at end of period | 365 | 352 | 355 |
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President and CEO Jarmo Niemi:
”A typical feature in Tecnomen's business is for the first quarter to be weaker
than the remaining quarters of the year. Taking this into account I am satisfied
with the first quarter of 2008, since net sales and the operating result clearly
improved from the previous year. Cash flow from operations was also much better
than in the previous year, and our balance sheet remained strong, with cash
funds of almost EUR 12 million. The order book exceeded the corresponding figure
for the previous year, and service and maintenance net sales continued to grow
from the previous year. A higher than normal proportion of materials depressed
the profit margin for the period, because hardware accounted for a major part of
projects. The continuing decline of the US dollar also weakened the result.
The performance of the Messaging business unit remained strong. The unit's net
sales increased 58% and the operating profit was at an encouraging level.
Net sales of the Charging business unit were low, as in the previous year, and
the operating result was a loss. Major orders for expansions have already been
received since the end of the first quarter. Deliveries for these will be made
mainly during the second quarter, which will improve its figures.
We are continuing our investments in the IP-based NGM platform, which are
generating increased net sales and healthy profits. During 2008 the main focus
for investments is in further developing the IP-based Convergent Charging
product and in opening up new market areas. The impact of these investments can
be seen in the increased capitalization of development costs in the first
quarter, and these steps are expected to significantly boost growth and
profitability in the Charging business in the coming years.”
SALES AND NET SALES
Tecnomen's net sales in the review period increased by 37.4 per cent to EUR 15.2
(11.0) million.
EUR 10.1 million of the sales in the review period has been recognised in
accordance with IAS 11 (Construction contracts) and EUR 5.0 million in
accordance with IAS 18 (Revenues).
Net sales by geographical area were: Americas 26.0 per cent (44.9 %), EMEA 50.5
per cent (52.2 %) and APAC 23.6 per cent (2.9 %).
Net sales by product line were: Messaging 81.7 per cent (71.6 %) and Charging
18.3 per cent (28.4 %).
Sales through global partners totalled EUR 2.7 (3.2) million or 17.6 per cent
(28.6 %) of net sales.
Maintenance and service sales totalled EUR 3.8 million or 25.0 per cent (29.1 %)
of net sales.
The order book stood at EUR 16.8 (15.9) million at the end of the review period.
Americas accounted for 35.1 per cent of the order book, EMEA for 42.4 per cent
and APAC for 22.4 per cent.
OPERATING RESULT
The operating result for the review period was EUR -0.4 (-2.0) million.
The result for the period before taxes was EUR -0.4 (-1.7) million.
The result for the review period was weakened by higher than normal costs for
projects recognized in the period and by the impact of the declining US dollar,
for which an exchange rate difference was recorded that reduced the operating
profit by EUR 1.0 million. Net sales were higher than in the 2007 period for
comparison but much lower than the average per quarter for the past two years.
Earnings per share were EUR -0.02 (-0.03). Equity per share at the end of the
period was EUR 1.23 (1.15).
FINANCING AND INVESTMENTS
Tecnomen's liquid assets totalled EUR 11.8 (7.3) million. The balance sheet
total on 31 March 2008 stood at EUR 86.4 (79.6) million. Interest-bearing
liabilities amounted to EUR 0.0 (0.0) million. The debt to equity ratio
(gearing) was -16.2 per cent (-10.8 %). The balance sheet structure remained
strong and the equity ratio on 31 March 2008 was 83.9 per cent (85.1 %).
Tecnomen's gross capital expenditure during the review period, excluding the
capitalisation of development costs, was EUR 0.2 (0.5) million or 1.3 per cent
(4.2 %) of net sales.
The cash flow in the review period was EUR -5.6 million, which included dividend
payments of EUR 4.1 million.
Financial income and expenses during the review period totalled EUR 0.0 (0.3)
million. The net effect of assessing foreign currency balance sheet items was
EUR -0.1 (0.1) million, loss from assessing the fair value of reserves was EUR
-0.0 (-0.2) million, and other financial income totalled EUR 0.2 (0.3) million.
At the end of the review period, the company had hedged 88 % of its foreign
currency position, which includes balance sheet items and also the order book.
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| CHANGE IN WORKING CAPITAL, MEUR (increase - / | 1-3/08 | 1-3/07 |
| decrease +) | | |
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| Change in accounts receivable and advances | 1.4 | -2.0 |
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| Change in other short-term receivables, | 0.9 | -0.7 |
| non-interest bearing | | |
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| Change in inventories | -0.1 | -0.7 |
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| Change in accounts payable and advances | -2.1 | -0.8 |
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| Change in other current liabilities, | 0.7 | 0.0 |
| non-interest bearing | | |
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| CHANGE IN WORKING CAPITAL, TOTAL | 0.9 | -4.3 |
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MARKETS
Messaging
Tecnomen delivered Messaging expansions in the Asia Pacific region and in Latin
America. NGM systems were delivered mainly in Europe. Several maintenance
contracts were renewed for 2008.
Charging
The growth in subscriber numbers continued in South and Central America and in
Africa. During the first quarter Tecnomen continued to complete major projects
that had started the previous year. Maintenance contracts were renewed and major
expansion orders are expected to take place during the second quarter (see
‘Events after the end of the period').
RESEARCH AND DEVELOPMENT
Research and development costs during the review period were EUR 4.3 (4.0)
million, corresponding to 28.3 per cent (36.1 %) of net sales. EUR 2.4 (1.5)
million of development costs have been capitalised during the review period and
will be amortised over 3-5 years from the start of commercial use. R&D costs of
EUR 0.8 (0.5) million were amortised during the review period.
PERSONNEL
At the end of March 2008 Tecnomen employed 365 (352) persons, of whom 92 (94)
worked in Finland and 273 (258) elsewhere. The company employed on average 363
(358) people during the review period. Personnel by geographical area were as
follows:
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| | 1-3/2008 | 1-3/2007 | 2007 |
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| Personnel, at end of period | 365 | 352 | 355 |
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| Americas | 67 | 64 | 67 |
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| EMEA | 269 | 263 | 261 |
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| APAC | 29 | 25 | 27 |
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| Personnel, average | 363 | 358 | 354 |
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| Personnel expenses before R&D | 6.4 | 6.4 | 25.3 |
| capitalisation (MEUR) | | | |
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TECNOMEN SHARES AND SHARE CAPITAL
At the end of March 2008 the shareholders' equity of Tecnomen Corporation stood
at EUR 72.6 (67.5) million and the share capital was EUR 4,720,446.24, divided
into 59,252,078 shares. The company held 134,800 of these shares, which
represents 0.23 per cent of the company's share capital and votes. Equity per
share was EUR 1.23 (1.15).
A total of 5,612,046 Tecnomen shares (EUR 6,297,657) were traded on the Helsinki
Exchanges during the period 2 January - 31 March 2008, representing 9.47 per
cent of the total number of shares.
The highest share price quoted in the period was EUR 1.27 and the lowest EUR
0.95. The average quoted price was EUR 1.12 and the closing price on 31 March
2008 was EUR 1.07. The market capitalisation of the share stock at the end of
the period was EUR 63,399,723.
ANNUAL GENERAL MEETING
The Annual General Meeting of Tecnomen Corporation held on 12 March 2008
approved the 2007 financial statements and discharged the Board of Directors and
President from liability for the 2007 financial year. The AGM resolved, in
accordance with the Board of Directors' proposal, to pay a dividend of EUR 0.07
per share for 2007. The dividend was paid to shareholders who were registered on
the record date 17 March 2008 in the company's shareholder register maintained
by the Finnish Central Securities Depository Ltd. The dividend was paid on 26
March 2008.
Board of Directors
The Annual General Meeting confirmed that Tecnomen's Board of Directors would
have seven (7) members. The following Board members were re-elected: Lauri
Ratia, Carl-Johan Numelin, Christer Sumelius, Timo Toivila and Johan Hammarén.
Harri Koponen and Hannu Turunen were elected as new members to the Board.
According to the decision taken at the preliminary meeting of the Board, Lauri
Ratia continues as Chairman and Carl-Johan Numelin as Vice Chairman of the
Board. The period of office for Tecnomen's current Board of Directors will end
at the end of the 2009 Annual General Meeting.
Auditors
KPMG Oy Ab, Authorised Public Accountants, will continue as the company's
auditors, with Sixten Nyman, APA, as responsible auditor, until the end of the
2009 Annual General Meeting of Shareholders.
CURRENT AUTHORISATIONS
The Board of Directors was authorised to decide on acquiring a maximum of
5,790,000 of the Company's own shares. Own shares may be acquired with
unrestricted shareholders' equity otherwise than in proportion to the holdings
of the shareholders through public trading of the securities on the Helsinki
Stock Exchange at the market price of the shares in public trading at the time
of the acquisition. The shares can be acquired for the purpose of developing the
capital structure of the Company, carrying out corporate acquisitions or other
business arrangements to develop the business of the Company, financing capital
expenditure, to be used as part of the Company's incentive schemes, or to be
otherwise retained in the possession of the Company, disposed of or nullified in
the extent and manner decided by the Board of Directors. The Board of Directors
has the right to decide on other terms of the share acquisition. This
authorisation replaces the authorisation given by the Annual General Meeting on
14 March 2007 and is valid for one year from the decision of the Annual General
Meeting.
The Board was authorised to decide on issuing and/or conveying a maximum of
17,800,000 new shares and/or the Company's own shares either against payment or
for free. The new shares may be issued and the Company's own shares may be
conveyed to the Company's shareholders in proportion to their current
shareholdings in the Company or waiving the shareholder's pre-emption right
through a directed share issue, if the Company has weighty financial grounds for
doing so. Such grounds could be the development of the capital structure of the
Company, carrying out corporate acquisitions or other business arrangements to
develop the business of the Company, financing capital expenditure or using the
shares as part of the Company's incentive schemes in the extent and manner
decided by the Board of Directors.
The Board was authorised to decide on a free share issue to the Company itself.
The number of shares to be issued to the Company together with the shares
repurchased to the Company on the basis of the repurchase authorisation shall be
a maximum of one tenth (1/10) of all the Company's shares.
The Board of Directors also has the right to grant the special rights referred
to in Chapter 10, Section 1 of the Companies Act, which carry the right to
receive, against payment, new shares of the Company or the Company's own shares
held by the Company in such a manner that the subscription price of the shares
is paid in cash or by using the subscriber's receivable to set off the
subscription price.
The subscription price of the new shares and the consideration payable for the
Company's own shares may be recorded partially or fully in the invested
non-restricted equity fund or in the share capital in the extent and manner
decided by the Board of Directors.
The Board of Directors shall decide on other terms and conditions related to the
share issues and granting of the special rights. These authorisations replace
the authorisations given by the Annual General Meeting on 14 March 2007 and are
valid for two years from the decision of the Annual General Meeting.
STOCK OPTION PROGRAMMES
The company currently has a 2002 stock option programme and a 2006 stock option
programme.
In the 2002 stock option scheme, the current series were the 2002D stock option.
The subscription period for them is 1 April 2006 - 30 April 2008. The share
subscription price for the 2002D stock option is EUR 1.04. The subscription
price for the 2002D stock option has been reduced by the amount of the dividend
paid per share (EUR 0.07).
During the review period no shares were subscribed with the stock options.
The 2006 stock option programme is divided into three series: the 2006A, 2006B
and 2006C stock options. A maximum of 2,001,000 stock options may be issued,
which entitle holders to subscribe for altogether 2,001,000 Tecnomen shares. The
subscription period for the 2006A stock option is 1 April 2007 - 30 April 2010,
for the 2006B stock option 1 April 2008 - 30 April 2011 and for the 2006C stock
option 1 April 2009 - 30 April 2012. The share subscription price for 2006A
stock options is EUR 2.54, for 2006B stock options EUR 1.39, and for 2006C stock
options EUR 1.05. The subscription prices for the 2006A, 2006B and 2006C stock
options have been reduced by the amount of the dividend paid per share (EUR
0.07). Tecnomen's Board of Directors has issued 436,000 2006A stock options and
667,000 2006B stock options to key personnel of Tecnomen Group. The remaining
2006 stock options have been issued to Tecnomen Japan Oy, a wholly owned
Tecnomen subsidiary, for issuing at a later date to current or future key Group
personnel.
Altogether 2,591,000 stock options remain on 31 March 2008 of all Tecnomen's
stock options in circulation. The shares that can be subscribed on the basis of
these stock options account for a maximum of 4.19% of the Company's shares and
the votes carried by the shares after any increase in share capital. On 31 March
2008 the Company still held 965,000 of all the current stock options. The issued
stock options had a maximum diluting effect on 31 March 2008 of 2.67%.
RISK MANAGEMENT AND UNCERTAIN FACTORS
The greatest risks in Tecnomen's operations are related to major customer and
partner relationships, to agreements made with these, and to the correct timing
and success of its product development.
Tecnomen's largest customers are much bigger businesses than the company itself
and the five largest customers account for more than half of net sales. The
relationship between the company and its major customers is one of
interdependence, which poses a potential risk but also offers significant new
business opportunities.
Certain commitments are associated with the project and maintenance agreements
made by the company, and unforeseen costs may arise in the future from these
agreements. The company aims to limit these liabilities with limitation of
liability clauses in customer contracts. In addition the company has a current
global liability insurance to cover any liabilities that may materialise in
connection with customer projects.
Project deliveries result in large accounts receivable. The payment record of
customers and the situation concerning receivables are actively monitored and
credit rating checks are made on new customers before confirming an offer.
Changes in exchange rates create risks especially in sales activities. A
significant part of the company's net sales is in US dollars. The company hedges
its currency denominated net position for a maximum period of 12 months, using
currency forward contracts and currency options. Liquid funds are invested,
avoiding credit and liquidity risks, in money-market deposits and short-term
interest funds with a good credit rating.
Carrying out projects creates risks. They are contained for example in projects
that require new product development, where creating new product features may
prove more difficult than anticipated. Another problem with project sales arises
from variations in net sales and profit during the different quarters of the
year. Forecasting these variations is often difficult.
Tecnomen operates in a rapidly changing sector. When making R&D decisions there
is the risk that the choice made may not bring the expected returns.
Tecnomen's risks and uncertainties in the near future relate to major projects
that are under negotiation and to their timing.
SALE OF PROPERTY
Tecnomen announced in a stock exchange release on 25 January 2008 that it was
examining the possibility of selling the headquarters property it owns. On 10
March 2008 the Group signed a letter of intent with a buyer, and management
consider it likely that the sale will be completed during the second quarter of
2008. The asset, which is classified as held for sale, is shown in the balance
sheet of 31 March 2008 as a separate item under ‘Non-current assets held for
sale'. In segment reporting the asset is split between the business segments
such that the Messaging product line has 75 % and Charging has 25 %.
EVENTS AFTER THE END OF THE PERIOD
Tecnomen has received major orders in April in Latin America for expansions to
the Tecnomen Convergent Charging system. These orders have a combined value of
USD 7.5 million and will be delivered in the second quarter of 2008.
PROSPECTS in 2008
The overall market for Messaging and Charging in 2008 is expected to remain
unchanged from the previous year. The market for conventional proprietary
systems is declining but for IP-based solutions the market is growing.
Uncertainty has increased in the global economy and this, coupled with changes
in exchange rates, is intensifying competition in certain markets.
Net sales in 2008 are expected to be at the same level as in 2007. To safeguard
its growth potential in the coming years and through this a better financial
performance, Tecnomen has decided to put much effort into the new convergent
charging products of its Charging business and into new markets.
Because of these major efforts, it is estimated that the 2008 operating profit
will be smaller than the 2007 figure.
Variations between quarterly figures are expected to be considerable.
FINANCIAL INFORMATION
Tecnomen will publish its following interim reports as follows:
1-6/2008 Wednesday, 13 August
1-9/2008 Wednesday, 22 October
Tecnomen is holding a conference to announce its results for the first quarter
of 2008 at 10.00 am on 23 April 2008 at the Hotel Scandic Simonkenttä, Simonkatu
9, Helsinki. The material presented at the press conference will be available at
www.tecnomen.com.
TECNOMEN CORPORATION
Board of Directors
FURTHER INFORMATION
Mr Jarmo Niemi, President and CEO, tel. +358 (0)9 8047 8799
Mr Tuomas Wegelius, CFO, tel. +358 (0)9 8047 8650
DISTRIBUTION
OMX Nordic Exchange Helsinki Oy
Main media
www.tecnomen.com
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| CONSOLIDATED INCOME | 1-3/2008 | 1-3/2007 | 2007 |
| STATEMENT, MEUR | | | |
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| NET SALES | 15.2 | 11.0 | 70.1 |
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| Other operating income | 0.0 | 0.0 | 0.2 |
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| Materials and services | -4.3 | -1.6 | -15.2 |
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| Employee benefit expenses | -5.5 | -6.1 | -23.3 |
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| Depreciation | -1.4 | -1.0 | -4.6 |
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| Other operating expenses | -4.3 | -4.3 | -18.4 |
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| OPERATING RESULT | -0.4 | -2.0 | 8.9 |
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| Financial income | 0.3 | 0.7 | 1.5 |
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| Financial expenses | -0.2 | -0.4 | -0.5 |
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| RESULT BEFORE TAXES | -0.4 | -1.7 | 10.0 |
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| Income taxes | -0.9 | 0.1 | -1.3 |
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| RESULT FOR THE PERIOD | -1.3 | -1.5 | 8.7 |
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| Earnings per share, basic, | -0.02 | -0.03 | 0.15 |
| EUR | | | |
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| Earnings per share, diluted, | -0.02 | -0.03 | 0.15 |
| EUR | | | |
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| CONSOLIDATED BALANCE SHEET, | 31.3.2008 | 31.12.2007 | 31.3.2007 |
| MEUR | | | |
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| Non-current assets | | | |
--------------------------------------------------------------------------------
| Goodwill | 0.7 | 0.7 | 0.7 |
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| Other intangible assets | 17.4 | 15.8 | 11.7 |
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| Tangible assets | 3.6 | 8.1 | 8.6 |
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| Long-term trade and other | 0.5 | 0.2 | 0.6 |
| receivables | | | |
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| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 2.5 | 2.4 | 2.6 |
--------------------------------------------------------------------------------
| Trade receivables | 22.3 | 25.8 | 28.4 |
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| Other receivables | 23.6 | 24.8 | 19.8 |
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| Cash and cash equivalents | 11.8 | 17.5 | 7.3 |
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| | | | |
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| Non-current assets held for | 4.1 | | |
| sale | | | |
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| TOTAL ASSETS | 86.4 | 95.2 | 79.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity | 72.6 | 78.0 | 67.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Long-term non-interest bearing | 0.0 | 0.0 | 0.1 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 3.9 | 3.4 | 2.4 |
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| Current liabilities | | | |
--------------------------------------------------------------------------------
| Short-term | 10.0 | 13.8 | 9.7 |
| non-interest-bearing | | | |
| liabilities | | | |
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| | | | |
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| EQUITY AND LIABILITIES | 86.4 | 95.2 | 79.6 |
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CHANGE IN SHAREHOLDERS' EQUITY, MEUR
--------------------------------------------------------------------------------
| MEUR | Share | Shar | Own | Transla | Invested | Other | Other | Total |
| | capi- | e | sha | tion | non-rest | reser | reserve | |
| | tal | prem | res | differe | ricted | -ves | s | |
| | | ium | | nce | equity | | | |
| | | fund | | | reserve | | | |
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| Sharehol | 4.7 | 0.8 | -0. | 0.2 | 0.3 | 54.7 | 17.4 | 78.0 |
| ders' | | | 1 | | | | | |
| eq | | | | | | | | |
| uity | | | | | | | | |
| 1 Jan. | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Translat | | | | | -0.0 | | | -0.0 |
| ion | | | | | | | | |
| differen | | | | | | | | |
| ce | | | | | | | | |
--------------------------------------------------------------------------------
| Net gain | | | | | -0.0 | | | -0.0 |
| recognis | | | | | | | | |
| ed | | | | | | | | |
| directly | | | | | | | | |
| in | | | | | | | | |
| sharehol | | | | | | | | |
| ders' | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Result | | | | | | | -1.3 | -1.3 |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | | -0.0 | | -1.3 | -1.3 |
| profits | | | | | | | | |
| and | | | | | | | | |
| losses | | | | | | | | |
| recognis | | | | | | | | |
| ed | | | | | | | | |
| during | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | -4.1 | | -4.1 |
| paid | | | | | | | | |
--------------------------------------------------------------------------------
| Share-ba | | | | | | | 0.1 | 0.1 |
| sed | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | -0.2 | -0.2 |
| adjustme | | | | | | | | |
| nts | | | | | | | | |
--------------------------------------------------------------------------------
| Sharehol | 4.7 | 0.8 | -0. | 0.2 | 0.3 | 50.6 | 16.3 | 72.6 |
| ders' | | | 1 | | | | | |
| equity | | | | | | | | |
| 31 Mar. | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR | Share | Share | Own | Transl | Investe | Other | Retai | Total |
| | capi | premi | shar | ation | d | reser | ned | |
| | tal | um | es | differ | non-res | ves | e | |
| | | fund | | ence | tricted | | arnin | |
| | | | | | equity | | gs | |
| | | | | | reserve | | | |
--------------------------------------------------------------------------------
| Sharehol | 4.7 | 0.8 | -0.1 | 0.2 | 0.0 | 60.6 | 8.4 | 77.3 |
| ders' | | | | | | | | |
| equity | | | | | | | | |
| 1 Jan. | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Translat | | | | 0.0 | | | | 0.0 |
| ion | | | | | | | | |
| diff | | | | | | | | |
| erence | | | | | | | | |
--------------------------------------------------------------------------------
| Net gain | | | | 0.0 | | | | 0.0 |
| recognis | | | | | | | | |
| ed | | | | | | | | |
| directly | | | | | | | | |
| in | | | | | | | | |
| sharehol | | | | | | | | |
| ders' | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Result | | | | | | | -1.5 | -1.5 |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | 0.0 | | | -1.5 | -1.5 |
| profits | | | | | | | | |
| and | | | | | | | | |
| losses | | | | | | | | |
| recognis | | | | | | | | |
| ed | | | | | | | | |
| during | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Capital | | | | | | -5.9 | | -5.9 |
| repaymen | | | | | | | | |
| t | | | | | | | | |
--------------------------------------------------------------------------------
| Share-ba | | | | | | | 0.1 | 0.1 |
| sed | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | 0.1 | 0.1 |
| adjustme | | | | | | | | |
| nts | | | | | | | | |
--------------------------------------------------------------------------------
| Sharehol | 4.7 | 0.8 | -0.1 | 0.2 | | 54.7 | 7.1 | 67.5 |
| ders' | | | | | | | | |
| equity | | | | | | | | |
| 3 | | | | | | | | |
| 1 Mar. | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
A capital repayment of altogether EUR 5,883,317.80, or EUR 0.10 per share, was
made on 58,833,178 shares in March 2007.
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| CONSOLIDATED CASH FLOW STATEMENT, | 1-3/2008 | 1-3/2007 | |
| MEUR | | | |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | |
--------------------------------------------------------------------------------
| Result for the period | -1.3 | -1.5 | |
--------------------------------------------------------------------------------
| Adjustments | 1.1 | 0.6 | |
--------------------------------------------------------------------------------
| Interest income | -0.3 | -0.6 | |
--------------------------------------------------------------------------------
| Interest expense | 0.2 | 0.3 | |
--------------------------------------------------------------------------------
| Income taxes | 0.9 | 0.1 | |
--------------------------------------------------------------------------------
| Other adjustments | -0.4 | -0.1 | |
--------------------------------------------------------------------------------
| Changes in working capital | 0.9 | -4.3 | |
--------------------------------------------------------------------------------
| Interest paid | -0.0 | -0.0 | |
--------------------------------------------------------------------------------
| Interest received | 0.2 | 0.4 | |
--------------------------------------------------------------------------------
| Income taxes paid | -0.2 | -0.0 | |
--------------------------------------------------------------------------------
| Net cash flow from operating | 1.1 | -5.1 | |
| activities | | | |
--------------------------------------------------------------------------------
| Cash flow from investments | | | |
--------------------------------------------------------------------------------
| Investments in intangible assets | -2.4 | -1.5 | |
--------------------------------------------------------------------------------
| Investments in tangible assets | -0.2 | -0.5 | |
--------------------------------------------------------------------------------
| Net cash flow from investments | -2.6 | -2.0 | |
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | |
--------------------------------------------------------------------------------
| Capital repayment | | -5.9 | |
--------------------------------------------------------------------------------
| Dividends paid | -4.1 | | |
--------------------------------------------------------------------------------
| Net cash flow from financing | -4.1 | -5.9 | |
--------------------------------------------------------------------------------
| Increase (+) and decrease (-) in | -5.6 | -13.0 | |
| liquid funds | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds on 1 Jan. | 17.5 | 20.4 | |
--------------------------------------------------------------------------------
| Impact of changes in exchange rates | -0.1 | 0.0 | |
--------------------------------------------------------------------------------
| Change in fair value of investments | -0.0 | -0.2 | |
--------------------------------------------------------------------------------
| Liquid funds on 31 March | 11.8 | 7.3 | |
--------------------------------------------------------------------------------
| Change | -5.6 | -13.0 | |
--------------------------------------------------------------------------------
| SEGMENT INFORMATION | | | |
--------------------------------------------------------------------------------
| BUSINESS SEGMENTS | 1-3/2008 | 1-3/2007 | 2007 |
| (primary segment information) | | | |
| NET SALES, MEUR | | | |
--------------------------------------------------------------------------------
| Messaging | 12.4 | 7.9 | 38.3 |
--------------------------------------------------------------------------------
| Charging | 2.8 | 3.1 | 31.8 |
--------------------------------------------------------------------------------
| TOTAL | 15.2 | 11.0 | 70.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GEOGRAPHICAL SEGMENTS | 1-3/2008 | 1-3/2007 | 2007 |
| (secondary segment information) | | | |
| NET SALES, MEUR | | | |
--------------------------------------------------------------------------------
| Americas | 3.9 | 5.0 | 37.7 |
--------------------------------------------------------------------------------
| EMEA | 7.7 | 5.8 | 26.6 |
--------------------------------------------------------------------------------
| APAC | 3.6 | 0.3 | 5.8 |
--------------------------------------------------------------------------------
| TOTAL | 15.2 | 11.0 | 70.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED KEY FINANCIAL | 1-3/2008 | 1-3/2007 | 2007 |
| FIGURES, MEUR | | | |
--------------------------------------------------------------------------------
| Return on investment, % | -0.7 | -7.3 | 13.6 |
--------------------------------------------------------------------------------
| Return on equity, % | -6.7 | -8.7 | 11.4 |
--------------------------------------------------------------------------------
| Equity ratio, % | 83.9 | 85.1 | 83.7 |
--------------------------------------------------------------------------------
| Debt/equity ratio (gearing), % | -16.2 | -10.8 | -22.4 |
--------------------------------------------------------------------------------
| Investments | 0.2 | 0.5 | 1.2 |
--------------------------------------------------------------------------------
| % of net sales | 1.3 | 4.2 | 1.8 |
--------------------------------------------------------------------------------
| Research and development | 4.3 | 4.0 | 16.1 |
--------------------------------------------------------------------------------
| % of net sales | 28.3 | 36.1 | 22.9 |
--------------------------------------------------------------------------------
| Order book | 16.8 | 15.9 | 17.5 |
--------------------------------------------------------------------------------
| Personnel, average | 363 | 358 | 354 |
--------------------------------------------------------------------------------
| Personnel, at end of period | 365 | 352 | 355 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED KEY FIGURES PER | 1-3/2008 | 1-3/2007 | 2007 |
| SHARE, MEUR | | | |
--------------------------------------------------------------------------------
| Earnings per share, basic, EUR | -0.02 | -0.03 | 0.15 |
--------------------------------------------------------------------------------
| Earnings per share, diluted, | -0.02 | -0.03 | 0.15 |
| EUR | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.23 | 1.15 | 1.32 |
--------------------------------------------------------------------------------
| Number of shares at end of | 59,252 | 59,006 | 59,252 |
| period, x 1,000 | | | |
--------------------------------------------------------------------------------
| Number of shares on average, x | 59,117 | 58,871 | 58,965 |
| 1,000 | | | |
--------------------------------------------------------------------------------
| Share price, EUR | | | |
--------------------------------------------------------------------------------
| Average price | 1.12 | 1.56 | 1.40 |
--------------------------------------------------------------------------------
| Lowest price | 0.95 | 1.29 | 1.15 |
--------------------------------------------------------------------------------
| Highest price | 1.27 | 1.83 | 1.83 |
--------------------------------------------------------------------------------
| Share price at end of period | 1.07 | 1.44 | 1.24 |
--------------------------------------------------------------------------------
| Market capitalisation of issued | 63.4 | 85.0 | 73.3 |
| stock at end of period, MEUR | | | |
--------------------------------------------------------------------------------
| Share turnover, million shares | 5.6 | 11.8 | 38.7 |
--------------------------------------------------------------------------------
| Share turnover, % of total | 9.5 | 20.1 | 65.4 |
--------------------------------------------------------------------------------
| Share turnover, MEUR | 6.3 | 18.5 | 53.9 |
--------------------------------------------------------------------------------
OPERATING LEASES, MEUR
--------------------------------------------------------------------------------
| Operating leases | 1-3/2008 | 2007 |
--------------------------------------------------------------------------------
| Less than one year | 0.5 | 0.5 |
--------------------------------------------------------------------------------
| Between one and five years | 0.7 | 0.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CONTINGENT LIABILITIES, | 1-3/2008 | 2007 |
| MEUR | | |
--------------------------------------------------------------------------------
| Pledges given | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Other own liabilities | | |
--------------------------------------------------------------------------------
| Restriction on real estate in Ireland | 0.4 | 0.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES PER | 1Q/08 | 4Q/07 | 3Q/07 | 2Q/07 | 1Q/07 | 4Q/06 |
| QUARTER, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Net sales, MEUR | 15.2 | 19.2 | 19.1 | 20.8 | 11.0 | 20.1 |
--------------------------------------------------------------------------------
| Net sales, change % | 37.4 | -4.7 | 12.9 | 6.2 | -27.3 | 12.5 |
--------------------------------------------------------------------------------
| Operating result, MEUR | -0.4 | 1.8 | 5.2 | 3.9 | -2.0 | 0.6 |
--------------------------------------------------------------------------------
| % of net sales | -2.6 | 9.3 | 27.2 | 18.6 | -17.7 | 3.0 |
--------------------------------------------------------------------------------
| Result before taxes, | -0.4 | 2.7 | 4.8 | 4.2 | -1.7 | 0.5 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel at end of | 365 | 355 | 352 | 347 | 352 | 374 |
| period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | -0.02 | 0.04 | 0.08 | 0.06 | -0.03 | -0.01 |
| basic, EUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | -0.02 | 0.04 | 0.07 | 0.06 | -0.03 | -0.01 |
| diluted, EUR | | | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.23 | 1.32 | 1.28 | 1.21 | 1.15 | 1.27 |
--------------------------------------------------------------------------------
| Net interest-bearing | -11.8 | -17.5 | -9.2 | -6.3 | -7.3 | -20.4 |
| liabilities, MEUR | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book, MEUR | 16.8 | 17.5 | 17.1 | 20.5 | 15.9 | 15.0 |
--------------------------------------------------------------------------------
The financial figures in the income statement, the balance sheet and key
indicators are presented in EUR million. The figures shown here have been
calculated using exact values.