Tecnotree Corporation Interim Report 1 January – 31 March 2012 (unaudited)
Tecnotree Corporation
Interim Report
April 27, 2012 at 8.30 am (CET+1)
Tecnotree is a global supplier of telecom IT solutions, providing products and services for charging, billing, customer care, and messaging and content services. The company’s product portfolio comprises virtually the full range of business management systems for telecom operators, with standard solutions for fixed networks, mobile services and broad band and for managing subscriptions, services and cash flows for prepaid and post-paid customers. Tecnotree has a strong footing especially in developing markets.
Net sales low but order book high
- Net sales for the review period were EUR 10.0 million (EUR 10.6 million for the same period in the previous year) and the adjusted operating result was EUR -5.8 (-4.9) million. The operating result was EUR -7.2 (-8.3) million and the result for the period EUR -8.8 (-8.1) million.
- First quarter net sales were low, which is quite typical for the company.
- The order book at the end of the period stood at EUR 36.2 (22.1) million. The high order book was due to the USD 30.5 million sale in Latin America announced by the company on 20 December 2011. EUR 1.4 million of this has been recorded in net sales for this period.
- After the close of the period the company has announced a new order received for USD 24 million, so that the order book at publication of this release stands at a record level.
To finance the company’s working capital and improve liquidity, Tecnotree is planning to obtain at least EUR 10 million in additional financing during 2012.
| KEY FIGURES | 1-3/2012 | 1-3/2011 | 1-12/2011 |
| Net sales, MEUR | 10.0 | 10.6 | 62.3 |
| Adjusted operating result, MEUR* | -5.8 | -4.9 | -1.7 |
| Operating result, MEUR | -7.2 | -8.3 | -11.1 |
| Result before taxes, MEUR | -8.0 | -7.8 | -9.9 |
| Result for the period, MEUR | -8.8 | -8.1 | -15.6 |
| Earnings per share, basic, EUR | -0.12 | -0.11 | -0.21 |
| Order book, MEUR | 36.2 | 22.1 | 40.4 |
| Cash flow after investments, MEUR | 0.3 | -6.7 | -18.1 |
| Change in cash and cash equivalents, MEUR | -0.7 | -3.7 | -9.8 |
| Cash and cash equivalents, MEUR | 6.0 | 12.8 | 6.7 |
| Equity ratio % | 48.6 | 61.3 | 50.7 |
| Net gearing % | 50.9 | 13.7 | 43.1 |
| Personnel at end of period | 981 | 914 | 926 |
* Adjusted operating result = operating result before R & D capitalisation, amortisation of this and one-time costs. Details of these are given in the section “Result analysis”.
Unless otherwise stated, all figures presented below are for the review period 1-3/2012 and the figures for comparison are for the corresponding period 1-3/2011
President and CEO Kaj Hagros:
”Net sales in the first quarter of 2012 totalled EUR 10.0 million, slightly down on the same period in the previous year (EUR 10.6 million). Low net sales for the first quarter are quite typical for the company. Many service contracts are renewed in the second quarter. At the end of 2011 the company received the biggest order in its history. Deliveries for this USD 30.5 million order have begun, but most of it will be recorded in the income statement during the coming periods. Thanks to this and the USD 24 million order we announced in April 2012, our order book has almost tripled from its level one year ago, showing that the change in strategy announced in 2011 is bearing fruit. We are planning to obtain additional financing to finance growth.”
Events after the end of period
After the end of the period the Company has announced that it has won a major new contract with a value of USD 24 million in Latin America.
Prospects in 2012
Tecnotree estimates that net sales and the operating result in 2012 will be better than in 2011. The adjusted operating result is estimated to be positive. Variations in the quarterly figures will be considerable. The cash flow after investments is also expected to improve compared to 2011. The adjusted operating result is the operating result before R&D capitalisation, amortisation of this and one-time costs.
Financial information
Tecnotree will publish its following interim reports as follows:
1-6/2012 Wednesday, 8 August
1-9/2012 Wednesday, 31 October
Tecnotree is holding a conference for analysts and the media to announce its results for the first quarter of 2012 at 10.00 am on 27 April 2012 in the Freda conference room at the Scandic Hotel Simonkenttä, Simonkatu 9, Helsinki. The interim review will be presented by CEO Kaj Hagros and the conference will be held in Finnish. The material to be presented at the press conference will be available at www.tecnotree.com.
TECNOTREE CORPORATION
Board of Directors
FURTHER INFORMATION
Kaj Hagros, President and CEO, tel. +358 40 849 1749
Tuomas Wegelius, CFO, tel. +358 400 433 228
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main media
www.tecnotree.com
About Tecnotree
Tecnotree is a global provider of a broad range of telecom IT solutions focused on charging, billing, customer care, messaging and content services. Tecnotree empowers communication service providers to create and monetize a broad marketplace of digital services, and augment value across the customer lifecycle. Acknowledged for agility and commitment, Tecnotree has more than 900 employees serving over 100 operators globally. Tecnotree is listed on the main list of NASDAQ OMX Helsinki Ltd. with the trading code TEM1V. For more information on Tecnotree visit www.tecnotree.com