Tecnotree Corporation Short Report 1[st] Jan - 30[th] Sep 2021 (Unaudited)

Tecnotree Corporation Stock Exchange Release 29 October 2021 at 9:00 EET

ROBUST REVENUE AND ORDER BOOK GROWTH CONTINUES

Third quarter (July – September 2021)

• Net sales were EUR 18.2 (14.7) million.
• The adjusted operating result was EUR 7.1 (6.9) million and the operating result was EUR 7.1 (6.9) million.
• The adjusted result was EUR 5.4 (4.4) million and the result was EUR 5.4 (4.4) million.
• The order book at the end of the period stood at EUR 58.6 (31 December 2020: 32.1) million.
• Cash flow after investments was EUR -3.3 (1.2) million.
• Earnings per share were EUR 0.02 (0.02).

January - September 2021

• Net sales were EUR 46.1 (38.6) million.
• The adjusted operating result was EUR 17.7 (15.0) million and the operating result was EUR 17.7 (14.3) million.
• The adjusted result was EUR 13.1 (9.9) million and the result was EUR 13.1 (9.3) million.
• Cash flow after investments was EUR 0.2 (4.7) million and the company’s cash and cash equivalents were EUR 13.9 (31 December 2020: 8.0) million.
• Earnings per share were EUR 0.05 (0.03).

CEO Padma Ravichander: Impressive Revenue and Order Book Growth Continues

Tecnotree delivered strong revenue growth and robust margins again in the third quarter. The revenue recorded is the highest in the last five years and order book is highest in the last nine years. Tecnotree continued to witness high acceptance for its Digital BSS Suite, especially in the Middle East and Africa (MEA) region. With each win and delivery, we continue to prove our product and scalable delivery capabilities including 5G, cloud native and remote deployment abilities. We expect the digital transformation to continue at a fast pace in the telecom industry thereby resulting in more global opportunities for Tecnotree. Additionally, Tecnotree has also made exciting advances in the B2B2C venture via its Tecnotree Moments platform.

In the third quarter, Tecnotree further enhanced its balance sheet position by raising ~EUR 22 million through directed share issue. We also retired the outstanding debt to become debt-free and came out of restructuring program which will help us in enhancing our customer portfolio and partnerships.

Tecnotree continues to monitor the Covid-19 pandemic situation and take necessary actions and mitigation steps to reduce any impact it may cause. We also continue to provide all possible assistance including vaccination drives to all our employees globally, to combat the pandemic. We also continue to expand our talent acquisition program globally to ensure we have the human resource redundancy globally to deliver in these times.

Revenue
Revenue in the third quarter was EUR 18.2 million and EUR 46.1 million during the first nine months of the year, witnessing 24.7% and 19.5% growth respectively compared to last year. MEA region recorded strong growth constituting 85.2% or EUR 15.5 million to the total third quarter revenue. Out of other regions, LATAM region demonstrated strong recovery by recording 46.1% growth in the third quarter revenue compared to last year.

Profitability
Operating result in the first nine months was EUR 17.7 million compared to EUR 14.3 million last year, witnessing EUR 3.5 million or 24.2% growth compared to last year. Net result for the first nine months was EUR 13.1 million being EUR 3.9 million or 41.6% higher compared to last year. Earnings per share (EPS) was 0.05 euros compared to 0.03 euros last year.

Order intake
During the third quarter, Tecnotree recorded multiple new wins including new logos. The total order intake during the first nine months was EUR 72.6 million being 82.3% higher compared to same period last year. Order book in the end of the third quarter was EUR 58.6 million.

Financial situation
In the third quarter, Tecnotree purchased all its outstanding debt held by Viking Acquisitions Corp. under the debt restructuring programme. This officially ended the restructuring program and the company became debt free, and its net gearing turned to negative demonstrating a very strong financial situation. In addition, cash proceeding received through directed share issues in the third quarter further strengthened the company’s liquidity as well as brought in new possibilities for strategic growth investments. Cash and cash equivalents at the end of the third quarter were EUR 13.9 million compared to EUR 6.8 million last year.

Other business updates
Tecnotree continues to be on the accelerated growth trajectory in its business across global markets by increasing the presence of its brand and taking advantage of the onset of digital transformation requirements of communication and digital service providers.

With Tecnotree Moments platform and its Fintech offerings, we hope to synergize new partnerships with communication and digital service providers, eco-system players and internet of things (IOT) providers, to introduce new revenue models and API frameworks to take advantage of the 5G roll-outs world-wide and forge new frontiers to empower digitally connected communities in the sectors of Education, Health, E-commerce, Gaming, Sports and Entertainment.

Further information
Padma Ravichander, CEO, tel +97 156 414 1420
Priyesh Ranjan, CFO, tel +971 50 955 1188

About Tecnotree
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.