Tecnotree Corporation Short Report 1 Jan – 30 Sep 2020 (unaudited)
TECNOTREE REPORTS A ROBUST THIRD QUARTER RESULT
|Net sales, MEUR||14.7||12.4||38.6||32.9||47.0|
|Adjusted operating result, MEUR 1||6.9||4.3||15.0||8.9||13.0|
|Operating result, MEUR||6.9||4.3||14.3||10.3||14.4|
|Result before taxes, MEUR||5.4||3.6||11.7||8.4||11.8|
|Adjusted result for the period, MEUR 2||4.4||2.1||9.9||3.5||6.3|
|Result for the period, MEUR||4.4||2.1||9.3||4.9||7.7|
|Earnings per share, basic, EUR||0.02||0.01||0.03||0.02||0.03|
|Order book, MEUR||26.7||26.3||25.5|
|Cash flow after investments, MEUR||1.2||2.1||4.7||1.4||0.1|
|Change in cash and cash equivalents, MEUR||1.1||2.1||3.5||1.3||-0.8|
|Cash and cash equivalents, MEUR||6.8||5.4||3.4|
|Equity ratio %||33.6||3.6||9.9|
|Net gearing %||43.5||702.6||292.2|
|Personnel at end of period||653||586||600|
1 Adjusted operating result = operating result without one-time items.
2 adjusted result for the period = result for the period without one-time items.
CEO Padma Ravichander: Continued positive growth and an improved EBIT
Tecnotree delivered a strong result for the third quarter. We continued strengthening our market position, especially in the Middle-east Africa region, and increased both revenue and profitability compared to previous quarter and the same quarter last year. Tecnotree Digital BSS suite 5 product offering and the company’s vast experience in driving digital transformation continue to generate interests in the Telecom industry markets, where digitalization has become a necessity to compete and survive in the post Covid-19 era
The revenue in the third quarter was EUR 14.7 million being 18% higher than the same quarter last year. The revenue in the first nine months was EUR 38.6 million being 17% higher than last year. The growth in revenue came from Middle-East and Africa region, that constituted 75% of the total revenue, and was 39% higher compared to last year.
The profitability in the third quarter was again record high with operating margin (EBIT) of 47% leading to EUR 6.9 million operating result. The adjusted operating margin in the first nine months was EUR 15.0 million with 39% margin compared to EUR 8.9 million with 27% margin last year. Net profit in the first nine months was EUR 9.3 million compared to EUR 4.9 million last year. Earnings per share (EPS) in the first nine months was 0.03 euros compared to 0.02 euros and equity per share was 0.06 euros compared 0.01 euros last year.
The net cash flow after investments in the third quarter was EUR 1.2 million positive and in the first nine months EUR 4.7 million positive. Cash and cash equivalents in the end of September was EUR 6.8 million. Liquidity wise the company is well-positioned to meet its operating expense, investment and debt repayment requirements.
Other business updates
Tecnotree continues robust growth in its business across global markets by increasing the presence of our brand and taking advantage of the onset of 5G implementations and the digital transformation requirements of our customers. We hope to synergize new partnerships with internet of things (IOT) providers, to increase our competitive edge, our reach to new markets and to strengthen our customer base globally, so that our customers may benefit from the full range of the Tecnotree Digital BSS Suite 5 products and our high quality digital Deployment, Operational and Managed Services capabilities
Padma Ravichander, CEO, tel +97 156 414 1420
Priyesh Ranjan, CFO, tel +971 50 955 1188
Tecnotree is the only full stack digital business management solution provider for digital service providers, with over 40 years of deep domain knowledge, proven delivery and transformation capability across the globe. Our open source technology based agile products and solutions comprise the full range (order-to-cash) of business process and subscription management for telecom and other digital service providers. Tecnotree products and platforms service over 800 million subscribers worldwide.Tecnotree is listed on Nasdaq Helsinki (TEM1V). For more information, please visit www.tecnotree.com.