Tecnotree Corporation Interim Review 1 January – 30 September 2013 (unaudited)
Tecnotree Corporation
Interim Review
30th October, 2013 at 8.30 am
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.
Profitability improved
Third quarter
- Third quarter net sales were EUR 17.4 (19.7) million.
- The adjusted operating result for the quarter was EUR 1.0 (-0.8) million and the result was EUR 0.4 (-3.0) million.
- The order book at the end of the period stood at EUR 48.0 (31 December 2012: 54.2) million.
- Third quarter cash flow after investments was EUR -2.0 (-7.4) million.
- On 30 August 2013 Tecnotree reached agreement with its bank on the renewal of its loan financing and on additional financing of EUR 5 million. The agreement is in force until 30 June 2018. In addition the company obtained a EUR 2 million bank guarantee limit.
- Earnings per share were EUR 0.00 (-0.02)
January - September 2013
- Net sales for the review period increased 5.6 per cent from the corresponding period in the previous year to EUR 53.9 (51.0) million.
- The adjusted operating result improved EUR 4.3 million from the previous year to EUR ‑0.3 (-4.6) million. The operating result was EUR -2.0 (-8.7) million and the result for the period EUR -3.0 (-10.7) million.
- Cash flow after investments for the review period was EUR -6.9 (-6.3) million and the company’s cash and cash equivalents were EUR 7.0 (31 December 2012: 11.3) million.
- Earnings per share were EUR 0.0 (-0.02)
| KEY FIGURES | 7-9/ 2013 | 7-9/ 2012 | 1-9/ 2013 | 1-9/ 2012 | 1-12/ 2012 |
| Net sales, MEUR | 17.4 | 19.7 | 53.9 | 51.0 | 73.4 |
| Adjusted operating result, MEUR* | 1.0 | -0.8 | -0.3 | -4.6 | -4.9 |
| Operating result, MEUR | 0.5 | -2.1 | -2.0 | -8.7 | -12.4 |
| Result before taxes, MEUR | 1.9 | -3.0 | 0.5 | -10.6 | -13.7 |
| Result for the period | 0.4 | -3.0 | -3.0 | -10.7 | -17.0 |
| Earnings per share, basic, EUR ** | 0.00 | -0.02 | -0.02 | -0.11 | -0.16 |
| Order book, MEUR | 48.0 | 59.2 | 54.2 | ||
| Cash flow after investments, MEUR | -2.0 | -7.4 | -6.9 | -6.3 | -1.3 |
| Change in cash and cash equivalents, MEUR | 3.7 | -7.4 | -3.5 | -3.0 | 4.8 |
| Cash and cash equivalents, MEUR | 7.0 | 3.7 | 11.3 | ||
| Equity ratio % | 32.2 | 46.1 | 42.2 | ||
| Net gearing % | 101.7 | 50.7 | 47.5 | ||
| Personnel at end of period | 1,053 | 1131 | 1,116 |
* Adjusted operating result = operating result before R & D capitalisation, amortisation of this and one-time costs.“Result analysis” is presented in the interim report.
** The key figure is adjusted for the comparative periods to reflect the share issue.
Unless otherwise stated, all figures presented below are for the reviewed period 1-9/2013 and the figures for comparison are for the corresponding period 1-9/2012.
CEO Ilkka Raskinen:
“We are happy with the improvement in profitability as planned; this period was the second profit-making quarter in a row. The improvement was mainly due to improved sales margins and keeping costs under control.
Positive factors in net sales have been the growth in the share of net sales accounted for by maintenance and services and short-term projects. If this trend continues it will reduce the amount of working capital tied up and improve the predictability of business operations.
Q4 net sales are usually higher than average. They are expected to come particularly from customers in the MEA and Americas regions. Another typical feature of Q4 is a better cash flow than average. Overall, the company’s performance in 2013 is expected to go according to plan. “
Events after the end of period
No significant events have occurred after the end of the period.
Prospects in 2013
Tecnotree’s order book at the end of 2012 stood at EUR 54.2 million, so the company moved into 2013 in a good position. The company estimates that its net sales and operating result will improve from the previous year. Variations in the quarterly figures will be considerable.
Prospects have not changed from the previous interim review.
Financial information
Tecnotree is holding a conference for analysts, investors and the media to announce its third quarter results on 30th October 2013 at 10.00 am in the Tapiola conference room at the Scandic Hotel Simonkenttä, Simonkatu 9, Helsinki. The interim review will be presented by CEO Ilkka Raiskinen 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
Ilkka Raiskinen, CEO, tel. +358 (0)45 311 3113
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 telecom IT solutions for the management of products, customers and revenue. Tecnotree helps communications service providers to transform their business towards a marketplace of digital services. Tecnotree empowers service providers to monetise on service bundles, provide personalised user experiences and augment value throughout the customer lifecycle. With over 1100 telecom experts, Tecnotree serves more than 100 service providers in over 70 countries. Tecnotree is listed on the main list of NASDAQ OMX Helsinki with the trading code TEM1V. For more information on Tecnotree, please visit www.tecnotree.com