Tecnotree Corporation Interim Review 1 January – 31 March 2014 (unaudited)

Tecnotree Corporation
Interim Review
29^th April, 2014 at 8.30 am EEST

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.

First quarter with normal seasonal fluctuations

First quarter

• First quarter net sales were EUR 14.4 (13.9) million.
• The adjusted operating result was EUR -1.8 (-4.0) million, operating result EUR ‑1.8 (-4.6) million and the result for the period was EUR -4.8 (-5.5) million.
• The order book at the end of the period stood at EUR 49.1 (31 December 2013: 45.0) million.
• First quarter cash flow after investments was EUR -3.2 (1.7) million and cash and cash equivalents at the end of the period were EUR 2.9 (31 December 2013: 6.6) million.
• Earnings per share were EUR -0.04 (-0.04).

¹ Adjusted operating result = operating result before R & D capitalisation, amortisation of this and one-time costs.“Result analysis” is presented in the interim review.
² This key figure has been corrected for the period 1-3/2013, see note 4 in the table section in the interim review.

Unless otherwise stated, all figures presented below are for the reviewed period 1-3/2014 and the figures for comparison are for the corresponding period 1-3/2013.

CEO Ilkka Raskinen:
”This was now the fourth quarter in succession when we improved our operating profit from the corresponding period in the previous year. Demand for our new products has remained strong, and the order book in the MEA area grew strongly to EUR 22.4 million compared to EUR 14.4 million in the previous year. The major projects in Latin America are progressing on schedule, and new business in this region is increasingly becoming product and service business. Cash flow management is still a priority for the year.”

Events after the end of period
No significant events have occurred after the end of the period.

Prospects in 2014
Tecnotree estimates that its net sales and operating result will improve from 2013.
Variations in the quarterly figures will be considerable.

Financial information
Tecnotree is holding a conference for analysts, investors and the media to announce its first quarter  results on 29^th April 2014 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