TELESTE CORPORATION INTERIM REPORT 1 JAN TO 30 SEP 2011
TELESTE CORPORATION INTERIM REPORT 26.10.2011 AT 08:30
TELESTE CORPORATION INTERIM REPORT 1 JAN TO 30 SEP 2011
Third quarter of 2011
– Net sales grew by 21.6% amounting to EUR 47.0 (38.6) million
– Operating profit grew by 91.4% equaling EUR 3.8 (2.0) million
- Undiluted result per share stood at EUR 0.15 (EUR 0.07)
– Orders received improved by 9.8% standing at EUR 43.8 (39.9) million
– Orders received by Video and Broadband Solutions increased by 5.3% over the period of comparison and amounted to EUR 22.3 (21.2) million
– Orders received by Network Services increased by 14.9% over the period of comparison and stood at EUR 21.5 (18.7) million
– Operating cash flow stood at EUR -0.5 (0.8) million
Outlook for 2011
We keep the outlook for 2011 unchanged. We estimate net sales to increase slightly and the operating profit to improve somewhat over the 2010 level.
Comments on Q3 by CEO Jukka Rinnevaara
The operator clientele of Video and Broadband Solutions continued to increase the capacity of their networks and kept on investing in new services. Year-on-year orders received by the business area picked up slightly while net sales and operating profit increased significantly. In Q3, we enhanced our production capacity to match the increased demand. The level of profitability in Q3 was good. The first significant deliveries of the Luminato headend solution to Russia started in the third quarter. Similarly, deliveries involving optical equipment were on a sound level.
Year-on-year orders received, net sales and operating profit of Network Services increased significantly. Deliveries involving German network services and UK network planning operations developed favorably. The development program for the German services operations proceeded according to plan, but the costs went up to some extent because of the limited availability of certain subcontractor resources.
The Group's Business in the Third Quarter of 2011
Net sales grew by 21.6% amounting to EUR 47.0 (38.6) million. Operating profit stood at EUR 3.8 (2.0) million making 8.1% (5.1%) of the net sales. Undiluted result per share was EUR 0.15 (0.07). Orders received stood at EUR 43.8 (39.9) million, i.e. 9.8% above the period of comparison. Order backlog totaled EUR 21.4 (13.3) million. The increase in order backlog was mostly attributable to the German market.
Operating cash flow stood at EUR -0.5 (0.8) million. Inventories and short-term receivables grew over the year of comparison. Increase in inventories over the period of comparison by EUR 5.5 million was mainly due to incompleteness of certain customer deliveries by Video and Broadband Solutions. Year-on-year short-term receivables grew by EUR 8.7 million. This growth was mainly due to a change in payment terms conducted in late 2010 by the German main client of our Network Services.
Group Operations – January to September 2011
Net sales grew by 7.4% amounting to EUR 130.2 (121.2) million. Operating profit grew by 17.5% equaling EUR 5.2 (4.5) million. Undiluted result per share was EUR 0.20 (0.15). Year-on-year orders received improved by 15.7% standing at EUR 134.6 (116.4) million. Operating cash flow stood at EUR -2.4 (4.5) million.
Video and Broadband Solutions in Q3
Net sales grew by 20.2% amounting to EUR 23.9 (19.9) million. Operating profit stood at EUR 3.4 (2.0) million making 14.3% (9.8%) of the net sales. Even relative profitability improved as a result of the increase in net sales. Orders received totaled EUR 22.3 (21.2) million. Order backlog totaled EUR 18.8 (13.3) million.
R&D expenses for the business area amounted to EUR 2.8 (2.2) million making 11.7% (11.2%) of the area's net sales. Increase in R&D expenses was due to investments in the Luminato video processing system and the video surveillance transfer solution (standard H.264). Some 60% (60%) of product development expenses involved further development of product platforms currently in production, maintenance, and customer-specific product applications. Out of the R&D expenses EUR 0.7 (0.4) million were capitalized, which involved mainly the Luminato video processing system and the video surveillance transfer system in line with standard H.264. Depreciation on activated R&D expenses amounted to EUR 0.5 (0.6) million.
Video and Broadband Solutions – January to September
Net sales grew by 4.8% amounting to EUR 62.0 (59.2) million. Operating profit increased by 29.7% standing at EUR 5.2 (4.0) million making 8.3% (6.7%) of the net sales. Product development expenses equaled EUR 8.6 (7.7), in other words 13.9% (12.9%) of the net sales. Orders received improved by 8.7% standing at EUR 64.6 (59.5) million.
Network Services in Q3
Net sales amounted to EUR 23.0 (18.7) million. Net sales grew in all target markets of the business area. Operating profit stood at EUR 0.4 (0.03) million making 1.6% (0.2%) of the net sales. The development program for the German services operations proceeded according to plan, but the costs went up to some extent because of the limited availability of certain subcontracting resources. Orders received in Q3 stood at EUR 21.5 (18.7) million. Order backlog totaled EUR 2.6 (0.0) million.
Network Services – January to September
Net sales grew by 9.9% amounting to EUR 68.2 (62.0) million. Operating profit fell over the comparative period standing at EUR 0.1 (0.5) million, which is 0.1% (0.8%) of the net sales. In H1 of the period under review, this decline in operating profit involved Germany, and was due to increased costs related to both construction work mainly carried out by means of subcontracting and those involving added resources in fiber-optic projects. Over the comparative period, clearly more working capital was committed to accounts receivable due to a change of a payment term in late 2010 by the German main client. Orders received improved by 23.0% standing at EUR 70.0 (56.9) million.
Investment and Financing – January to September
Investments by the Group for the period under review totaled EUR 5.2 (9.2) million accounting for 4.0% (7.6%) of the net sales. Investments made in the comparative period include two acquisitions. Out of these investments EUR 1.1 (0.4) million involved the extension of premises in Finland. Product development investments totaled EUR 2.1 (1.2) million. As to other investments, EUR 1.1 million was allocated in tools and equipment for Network Services, 0.4 million in machinery and equipment for Video and Broadband Solutions. Investments made in corporate reporting and computing totaled EUR 0.5 million. As to investments for the period, EUR 0.4 (0.1) million was carried out by means of financial leasing.
Operating cash flow stood at EUR -2.4 (4.5) million. In the review period, working capital was committed, in particular, to the accounts receivable and inventories. At the end of the period under review, the amount of unused binding stand-by credits amounted to EUR 7.5 (18.5) million. The current binding stand-by credits of EUR 40.0 million run till November 2013. The Group's equity ratio equaled 41.4% (41.5%) and net gearing 44.1% (26.7%). Interest bearing debt on 30 September 2011 stood at EUR 33.4 (22.9) million.
Personnel and Organization – January to September
In January to September 2011, the Group employed an average of 1,290 people (1,221/2010, 1,090/2009). At the end of the review period, the number of Group's employees was 1,311 (1,231/2010, 1,230/2009), of whom 755 (664) worked for Network Services and 556 (567) for Video and Broadband Solutions. Employees stationed outside Europe accounted for less than 5% of the Group's personnel. At the end of the review period, the number of rented personnel involved in production in Finland was 24. Expenditure on employee benefits amounted to EUR 39.1 (36.7/January-September/2010, EUR 31.2/January-September/2009) million.
Essential Operational Risks of the Business Areas
Founded in 1954, Teleste is a technology and service provider consisting of two business areas: Video and Broadband Solutions and Network Services. With Europe as the main market area, our most significant clients include European cable operators and specified organizations in the public sector.
Concerning Video and Broadband Solutions, integrated deliveries of solutions create favorable conditions for growth, even if the involved resource allocation and technical implementation pose a challenge involving, therefore, also reasonable risks. The still ongoing difficult market situation may delay the implementation of investment plans among the clientele. Network investments carried out by the clients vary based on their need for upgrading and their capital structure. Much of Teleste's competition comes from the USA so the exchange rate of euro up against the US dollar affects our competitiveness. Teleste hedges against short-term currency exposure by means of forward contracts. Correct technological choices and their timing are vital for our success.
Net sales for Network Services comes, for the most part, from a small number of large European customers, so a change in the demand for services by any one of them is reflected in the actual deliveries. The services provided by this business area include planning, new construction and maintenance of cable and fiber networks. Implementation and scope of the relevant services vary by client ranging from stand-alone applications to integrated turnkey deliveries. Most deliveries are based on frame agreements. The services also include Teleste's own product solutions. Our know-how in services covers all the sectors related to the cable and fiber-optic network technology from installation and maintenance of headends to upgrading of house networks. Services will also be implemented through a network of subcontracting, so the sufficiency of our subcontractor network capacity may limit our ability to deliver. To ensure quality of services and cost-efficiency, along with an efficient service process management, customer satisfaction requires innovative solutions in terms of processes, products and logistics. As far as technical management of the networks and functional product solutions are concerned, ensuring smooth operation of the operators' networks requires constant focus on the development of qualifications of Teleste's own and its suppliers' personnel.
It is equally important for our business areas to take into account any market developments such as consolidations taking place among the clientele and competition. Also the European financial market instability including the difficult economic situation of the public sector affects the demand for our products and services, either directly or indirectly. Weather conditions in our target markets affect the delivery conditions of products and services of our business areas.
The Board of Directors annually reviews any essential risks related to the company operation and the management thereof. Risk management constitutes an integral part of the strategic and operative practices of our business areas. Risks and their probability are reported to the Board by regular monthly reports.
The company has covered risks involving damage to operative functions of the business areas mainly through insurance policies. These insurances do not include credit loss risks. In the period under review, no such risks materialized, and no legal proceedings or judicial procedures were pending that would have had any essential significance for the Group operation.
Group Structure
Parent company Teleste has branch offices in Australia, the Netherlands, China and Denmark with subsidiaries in 12 countries outside Finland. Teleste Management Oy, founded in March 2010, has been consolidated in the Teleste Group figures on account of financial arrangements.
Decisions by the Annual General Meeting
The Annual General Meeting (AGM) of Teleste Corporation on 08.04.11 confirmed the financial statements for 2010 and discharged the Board of Directors and the CEO from liability for the financial period. The AGM confirmed the dividend of EUR 0.12 per share proposed by the Board. The dividend was paid out on 20 April 2011.
The AGM elected Marjo Miettinen, Pertti Ervi, Tero Laaksonen, Pertti Raatikainen, Kai Telanne and Petteri Walldén members of the Board. Marjo Miettinen was elected Chair of the Board in the organizational meeting held immediately after the AGM.
Authorized Public Accountants KPMG Oy Ab continue as the auditor until the next AGM. Accountant authorized by the Central Chamber of Commerce of Finland Esa Kailiala was chosen auditor-in-charge.
The AGM authorized the Board to acquire the maximum of 1,400,000 of the company's own shares and to convey the maximum of 1,779,985 company's own shares. The AGM also authorized the company Board to issue 5,000,000 new shares. Pursuant to the special rights provided by the company, the maximum number of significant shares is 2,500,000; these special rights are included in the authorization to issue 5,000,000 new shares.
Shares and Changes in Share Capital
On 30 September 2011, EM Group Oy was the largest single shareholder with a holding of 21.55%.
In the period under review, the lowest company share price was EUR 2.61 (3.63) and the highest was EUR 4.82 (5.33). Closing price on 30 September 2011 stood at EUR 2.71 (4.91). According to Euroclear Finland Ltd the number of shareholders at the end of the period under review was 5,090 (5,306). Foreign ownership accounted for 8.0% (8.5%). From 1 January to 30 September 2011, trading with Teleste share at NASDAQ OMX Helsinki amounted to EUR 4.8 (11.6) million. In the period under review, 1.2 (2.6) million Teleste shares were traded on the stock exchange.
At the end of September 2011, the number of own shares in the Group possession stood at 760,985 (760,985) out of which parent company Teleste Corporation had none (0) while other Group or controlled companies had 760,985 shares, respectively. At the end of the period, the Group's holding of the total amount of shares amounted to 4.18% (4.18%).
On 30 September 2011, the registered share capital of Teleste stood at EUR 6,966,932.80 divided in 18,186,590 shares.
Outlook
In 2011, deliveries of equipment and solutions by Video and Broadband Solutions to its customer base of operators in our target markets will, in our estimation, at least achieve the level of 2010. European telecom operators have launched their investments into the TV distribution infrastructure, and we believe that our video headend and optical network products will be competitive in this new emerging market. Due to postponements in a number of medium-sized projects Teleste's deliveries related to security and traffic control will remain at the level of the comparative period.
On the annual basis, demand by our current clientele for the services provided by Network Services will remain relatively active. We expect that in Germany, the main market, profitability for the current year will improve from the 2010 level with the increase in net sales and the gradual introduction of the streamlining measures.
We keep the outlook for 2011 unchanged. We estimate net sales to increase slightly and the operating profit to improve somewhat over the 2010 level.
26 October 2011
Teleste Corporation Jukka Rinnevaara
Board of Directors CEO
This interim report has been compiled in compliance with IAS 34, as it is accepted within EU, using the recognition and valuation principles with those used in the Annual Report. The data stated in this report is unaudited.
| STATEMENT OF COMPREHENSIVE INCOME (tEUR) | 7-9/2011 | 7-9/2010 | Change % | |||
| Net Sales | 46,960 | 38,625 | 21.6 % | |||
| Other operating income | 461 | 363 | 27.2 % | |||
| Materials and services | -23,039 | -18,650 | 23.5 % | |||
| Personnel expenses | -13,106 | -11,624 | 12.7 % | |||
| Other operating expenses | -6,172 | -5,080 | 21.5 % | |||
| Depreciation | -1,308 | -1,650 | -20.7 % | |||
| Operating profit | 3,796 | 1,984 | 91.4 % | |||
| Financial income and expenses | -98 | -111 | -11.7 % | |||
| Profit after financial items | 3,698 | 1,873 | 97.5 % | |||
| Profit before taxes | 3,698 | 1,873 | 97.5 % | |||
| Taxes | -1,103 | -635 | 73.7 % | |||
| Net profit | 2,595 | 1,238 | 109.7 % | |||
| Attributable to: | ||||||
| Equity holders of the parent | 2,595 | 1,238 | 109.7 % | |||
| Earnings per share for result of the year attributable to the equity holders of the parent | ||||||
| (expressed in € per share) | ||||||
| Basic | 0.15 | 0.07 | 109.7 % | |||
| Diluted | 0.15 | 0.07 | 112.9 % | |||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (tEUR) | ||||||
| Net profit | 2,595 | 1,238 | 109.7 % | |||
| Translation differences | -87 | -67 | 29.9 % | |||
| Fair value reserve | 0 | 7 | n/a | |||
| Total comprehensive income for the period | 2,508 | 1,178 | 113.0 % | |||
| Attributable to: | ||||||
| Equity holders of the parent | 2,508 | 1,178 | 113.0 % | |||
| STATEMENT OF COMPREHENSIVE INCOME (tEUR) | 1-9/2011 | 1-9/2010 | Change % | 1-12/2010 | ||
| Net Sales | 130,183 | 121,193 | 7.4 % | 167,836 | ||
| Other operating income | 1,383 | 971 | 42.5 % | 1,460 | ||
| Materials and services | -65,184 | -59,980 | 8.7 % | -82,054 | ||
| Personnel expenses | -39,080 | -36,684 | 6.5 % | -50,824 | ||
| Other operating expenses | -18,108 | -16,492 | 9.8 % | -23,090 | ||
| Depreciation | -3,946 | -4,543 | -13.1 % | -5,896 | ||
| Operating profit | 5,248 | 4,465 | 17.5 % | 7,432 | ||
| Financial income and expenses | -398 | -497 | -19.9 % | -689 | ||
| Profit after financial items | 4,850 | 3,968 | 22.2 % | 6,743 | ||
| Profit before taxes | 4,850 | 3,968 | 22.2 % | 6,743 | ||
| Taxes | -1,426 | -1,288 | 10.7 % | -1,959 | ||
| Net profit | 3,424 | 2,680 | 27.8 % | 4,784 | ||
| Attributable to: | ||||||
| Equity holders of the parent | 3,424 | 2,680 | 27.8 % | 4,784 | ||
| Earnings per share for result of the year attributable to the equity holders of the parent | ||||||
| (expressed in € per share) | ||||||
| Basic | 0.20 | 0.15 | 27.8 % | 0.27 | ||
| Diluted | 0.20 | 0.15 | 29.7 % | 0.27 | ||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (tEUR) | ||||||
| Net profit | 3,424 | 2,680 | 27.8 % | 4,784 | ||
| Translation differences | -286 | -125 | 128.8 % | 277 | ||
| Fair value reserve | 96 | -150 | n/a | -70 | ||
| Total comprehensive income for the period | 3,234 | 2,405 | 34.5 % | 4,991 | ||
| Attributable to: | ||||||
| Equity holders of the parent | 3,234 | 2,405 | 34.5 % | 4,991 | ||
| STATEMENT OF FINANCIAL POSITION (tEUR) | 30.09.2011 | 30.09.2010 | Change % | 31.12.2010 | ||
| Non-current assets | ||||||
| Property,plant,equipment | 10,445 | 9,020 | 15.8 % | 8,836 | ||
| Goodwill | 30,959 | 36,914 | -16.1 % | 30,959 | ||
| Intangible assets | 6,314 | 7,021 | -10.1 % | 6,709 | ||
| Investments | 713 | 713 | 0.0 % | 713 | ||
| 48,431 | 53,668 | -9.8 % | 47,217 | |||
| Current assets | ||||||
| Inventories | 25,118 | 19,623 | 28.0 % | 21,000 | ||
| Other current assets | 42,170 | 33,438 | 26.1 % | 32,819 | ||
| Liquid funds | 10,600 | 10,063 | 5.3 % | 15,203 | ||
| 77,888 | 63,124 | 23.4 % | 69,022 | |||
| Total assets | 126,319 | 116,792 | 8.2 % | 116,239 | ||
| Shareholder's equity and liabilities | ||||||
| Share capital | 6,967 | 6,967 | 0.0 % | 6,967 | ||
| Other equity | 44,402 | 40,902 | 8.6 % | 43,143 | ||
| Non-controlling interest | 318 | 319 | -0.3 % | 292 | ||
| 51,687 | 48,188 | 7.3 % | 50,402 | |||
| Non-current liabilities | ||||||
| Provisions | 361 | 513 | -29.6 % | 511 | ||
| Non interest bearing liabilities | 4,499 | 10,720 | -58.0 % | 4,522 | ||
| Interest bearing liabilities | 10,937 | 11,676 | -6.3 % | 11,847 | ||
| 15,797 | 22,909 | -31.0 % | 16,880 | |||
| Short-term liabilities | ||||||
| Trade payables and other s-t liabilities | 35,063 | 33,212 | 5.6 % | 31,401 | ||
| Provisions | 1,313 | 1,227 | 7.0 % | 1,313 | ||
| S-t interest bearing liabilities | 22,459 | 11,256 | 99.5 % | 16,243 | ||
| 58,835 | 45,695 | 28.8 % | 48,957 | |||
| Total shareholder's equity and liabilities | 126,319 | 116,792 | 8.2 % | 116,239 | ||
| CONSOLIDATED CASH FLOW STATEMENT (tEUR) | 1-9/2011 | 1-9/2010 | Change % | 1-12/2010 | ||
| Cash flows from operating activities | ||||||
| Profit for the period | 3,424 | 2,680 | 27.8 % | 4,784 | ||
| Adjustments | 5,912 | 6,517 | -9.3 % | 6,143 | ||
| Interest and other financial expenses and incomes | -398 | -497 | -19.9 % | -481 | ||
| Paid Taxes | -2,000 | -378 | 429.1 % | -786 | ||
| Change in working capital | -9,378 | -3,805 | 146.5 % | -4,248 | ||
| Cash flow from operating activities | -2,440 | 4,517 | n/a | 5,412 | ||
| Cash flow from investing activities | ||||||
| Acquisition of subsidiary, net of cash acquired | 0 | -3,120 | n/a | -3,643 | ||
| Purchases of property, plant and equipment (PPE) | -2,223 | -620 | 258.5 % | -716 | ||
| Purchases of intangible assets | -2,869 | -1,006 | 185.2 % | -1,499 | ||
| Net cash used in investing activities | -5,092 | -4,746 | 7.3 % | -5,858 | ||
| Cash flow from financing activities | ||||||
| Proceeds from borrowings | 6,000 | 0 | n/a | 5,520 | ||
| Payments of borrowings | -694 | -966 | -28.2 % | -1,562 | ||
| Dividends paid | -2,091 | -1,394 | 50.0 % | -1,394 | ||
| Proceeds from issuance of ordinary shares | 0 | 259 | n/a | 289 | ||
| Net cash used in financing activities | 3,215 | -2,101 | n/a | 2,853 | ||
| Change in cash | ||||||
| Cash in the beginning | 15,203 | 12,518 | 21.4 % | 12,518 | ||
| Change in cash during period | -4,317 | -2,330 | 85.3 % | 2,408 | ||
| Effect of currency changes | -286 | -125 | 128.8 % | 277 | ||
| Cash at the end | 10,600 | 10,063 | 5.3 % | 15,203 | ||
| KEY FIGURES | 1-9/2011 | 1-9/2010 | Change % | 1-12/2010 | ||
| Earnings per share, EUR | 0.20 | 0.15 | 27.8 % | 0.27 | ||
| Earnings per share fully diluted, EUR | 0.20 | 0.15 | 29.7 % | 0.27 | ||
| Shareholders' equity per share, EUR | 2.97 | 2.77 | 7.3 % | 2.90 | ||
| Return on equity | 8.9 % | 7.5 % | 18.6 % | 9.9 % | ||
| Return on capital employed | 8.8 % | 8.6 % | 1.8 % | 10.2 % | ||
| Equity ratio | 41.4 % | 41.5 % | -0.4 % | 43.6 % | ||
| Gearing | 44.1 % | 26.7 % | 65.1 % | 25.5 % | ||
| Investments, tEUR | 5,195 | 9,232 | -43.7 % | 3,765 | ||
| Investments % of net sales | 4.0 % | 7.6 % | -47.6 % | 2.2 % | ||
| Order backlog, tEUR | 21,420 | 13,271 | 61.4 % | 17,000 | ||
| Personnel, average | 1,290 | 1,221 | 5.7 % | 1,215 | ||
| Number of shares (thousands) | 18,094 | 18,062 | 0.2 % | 18,094 | ||
| including own shares | ||||||
| Highest share price, EUR | 4.82 | 5.33 | -9.6 % | 5.33 | ||
| Lowest share price, EUR | 2.61 | 3.63 | -28.1 % | 3.64 | ||
| Average share price, EUR | 3.89 | 4.44 | -12.4 % | 4.49 | ||
| Turnover, in million shares | 1.2 | 2.6 | -53.2 % | 3.2 | ||
| Turnover, in MEUR | 4.8 | 11.6 | -59.0 % | 14.2 | ||
| Treasury shares | ||||||
| Number | % of | % of | ||||
| of shares | shares | votes | ||||
| Teleste companies owns own shares | 760,985 | 4.18 % | 4.18 % | |||
| Contingent liabilities and pledged assets (tEUR) | ||||||
| For own debt | ||||||
| Other securities | 0 | 120 | n/a | 640 | ||
| Leasing and rent liabilities | 9,210 | 6,518 | 41.3 % | 6,481 | ||
| 9,210 | 6,638 | 38.7 % | 7,121 | |||
| Derivative instruments (tEUR) | ||||||
| Value of underlying forward contracts | 6,181 | 5,285 | 17.0 % | 8,283 | ||
| Market value of forward contracts | -10 | -176 | -94.3 % | -293 | ||
| Interest rate swap | 11,500 | 11,500 | 0.0 % | 11,500 | ||
| Market value of interest swap | -186 | -266 | -30.1 % | -236 | ||
| Taxes are computed on the basis of the tax on the profit for the period. | ||||||
| OPERATING SEGMENTS (tEUR) | 1-9/2011 | 1-9/2010 | Change % | 1-12/2010 | ||
| Video and Broadband Solutions | ||||||
| Order intake | 64,600 | 59,450 | 8.7 % | 86,530 | ||
| Net sales | 62,018 | 59,159 | 4.8 % | 82,007 | ||
| EBIT | 5,158 | 3,976 | 29.7 % | 6,345 | ||
| EBIT% | 8.3 % | 6.7 % | 23.8 % | 7.7 % | ||
| Network Services | ||||||
| Order intake | 70,003 | 56,914 | 23.0 % | 80,675 | ||
| Net sales | 68,165 | 62,034 | 9.9 % | 85,829 | ||
| EBIT | 90 | 489 | -81.6 % | 1,087 | ||
| EBIT% | 0.1 % | 0.8 % | -83.2 % | 1.3 % | ||
| Total | ||||||
| Order intake | 134,603 | 116,364 | 15.7 % | 167,205 | ||
| Net sales | 130,183 | 121,193 | 7.4 % | 167,836 | ||
| EBIT | 5,248 | 4,465 | 17.5 % | 7,432 | ||
| EBIT% | 4.0 % | 3.7 % | 9.4 % | 4.4 % | ||
| Financial items | -398 | -497 | -19.9 % | -689 | ||
| Operating segments net profit before taxes | 4,850 | 3,968 | 22.2 % | 6,743 | ||
| Information per quarter (tEUR) | 7-9/11 | 4-6/11 | 1-3/11 | 10-12/10 | 7-9/10 | 10/2010- 9/2011 | |
| Video and Broadband Solutions | |||||||
| Order intake | 22,300 | 24,827 | 17,473 | 27,080 | 21,170 | 91,680 | |
| Net sales | 23,947 | 19,517 | 18,554 | 22,882 | 19,915 | 84,900 | |
| EBIT | 3,420 | 1,332 | 406 | 2,365 | 1,955 | 7,523 | |
| EBIT % | 14.3 % | 6.8 % | 2.2 % | 10.3 % | 9.8 % | 8.9 % | |
| Network Services | |||||||
| Order intake | 21,503 | 25,744 | 22,756 | 23,761 | 18,710 | 93,764 | |
| Net sales | 23,013 | 22,396 | 22,756 | 23,761 | 18,710 | 91,926 | |
| EBIT | 376 | -422 | 136 | 603 | 28 | 693 | |
| EBIT % | 1.6 % | -1.9 % | 0.6 % | 2.5 % | 0.2 % | 0.8 % | |
| Total | |||||||
| Order intake | 43,803 | 50,571 | 40,229 | 50,841 | 39,880 | 185,444 | |
| Net sales | 46,960 | 41,913 | 41,310 | 46,643 | 38,625 | 176,826 | |
| EBIT | 3,796 | 910 | 542 | 2,968 | 1,984 | 8,216 | |
| EBIT % | 8.1 % | 2.2 % | 1.3 % | 6.4 % | 5.1 % | 4.6 % | |
| Attributable to equity holders of the parent (tEUR) | ||||||||||
| Share capital | Share premium | Trans lation diffe rences | Retained earnings | Invested free capital | Other funds | Total | Share of non-cont -roll-ing Inte-rest | Total equity | ||
| Share-holder's equity 1.1.2011 | 6,967 | 1,504 | -95 | 39,183 | 2,737 | -186 | 50,110 | 292 | 50,402 | |
| Total compre- hensive income for the period | -286 | 3,424 | 96 | 3,234 | 0 | 3,234 | ||||
| Paid dividend | -2,137 | -2,137 | 46 | -2,091 | ||||||
| Equity-settled share-based payments | 142 | 0 | 0 | 142 | 0 | 142 | ||||
| Changes in subsi-diary interest | 20 | 20 | -20 | 0 | ||||||
| Share-holder's equity 30.9.2011 | 6,967 | 1,504 | -381 | 40,632 | 2,737 | -90 | 51,369 | 318 | 51,687 | |
| Share-holder's equity 1.1.2010 | 6,967 | 1,504 | -372 | 35,949 | 2,737 | -116 | 46,669 | 0 | 46,669 | |
| Profit of the period | -125 | 2,680 | -150 | 2,405 | 0 | 2,405 | ||||
| Share issue | 0 | 289 | 289 | |||||||
| Paid dividend | -1,394 | -1,394 | 30 | -1,364 | ||||||
| Equity-settled share-based payments | 189 | 0 | 0 | 189 | 0 | 189 | ||||
| Share-holder's equity 30.9.2010 | 6,967 | 1,504 | -497 | 37,424 | 2,737 | -266 | 47,869 | 319 | 48,188 | |
CALCULATION OF KEY FIGURES
| Return on equity: | Profit/loss for the financial period ------------------------------ * 100 Shareholders’ equity (average) |
| Return on capital employed: | Profit/loss for the period after financial items + financing charges ------------------------------ * 100 Total assets - non-interest-bearing liabilities (average) |
| Equity ratio: | Shareholders' equity ----------------------------- * 100 Total assets - advances received |
| Gearing: | Interest bearing liabilities - cash in hand and in bank - interest bearing assets ----------------------------- * 100 Shareholders' equity |
| Earnings per share: | Profit for the period attributable to equity holder of the parent ---------------------------------------------- Weighted average number of ordinary shares outstanding during the period |
| Earnings per share, diluted: | Profit for the period attributable to equity holder of the parent (diluted) ----------------------------------------------- Average number of shares - own shares + number of options at the period-end |
| SHAREHOLDERS 30.9.2011 | Shares | % | |||||
| EM Group Oy | 3,918,513 | 21.55 | |||||
| Mandatum Life | 1,679,200 | 9.23 | |||||
| Ilmarinen Mutual Pension Insurance Company | 936,776 | 5.15 | |||||
| Kaleva Mutual Pension Insurance Company | 824,641 | 4.53 | |||||
| Op-Suomi Small Cap | 545,925 | 3.00 | |||||
| Varma Mutual Pension Insurance Company | 521,150 | 2.87 | |||||
| State Pension Fund | 500,000 | 2.75 | |||||
| Aktia Capital Mutual Fund | 450,000 | 2.47 | |||||
| Skagen Vekst Verdipapierfond | 437,000 | 2.40 | |||||
| Teleste Management Oy | 381,000 | 2.09 | |||||
| | Shareholders | % | Shares | % | |||
| Corporations | 290 | 5.69 | 5,914,717 | 32.52 | |||
| Financial and insurance corporations | 10 | 0.19 | 3,638,526 | 20.00 | |||
| Public institutions | 9 | 0.17 | 2,327,976 | 12.80 | |||
| Non-profit institutions | 35 | 0.68 | 369,811 | 2.03 | |||
| Households | 4,710 | 92.53 | 4,474,136 | 24.60 | |||
| Foreign countries and nominee registered | 36 | 0.70 | 1,461,424 | 8.03 | |||
| Total | 5,090 | 100 | 18.186,590 | 100 | |||
| HOLDING DISPERSION 30.9.2011 | Owners | % | Shares | % |
| 0 - 100 | 1,137 | 22.33 | 78,649 | 0.43 |
| 101 – 1 000 | 2,965 | 58.25 | 1,242,903 | 6.83 |
| 1 001 – 10 000 | 894 | 17.56 | 2,550,965 | 14.02 |
| 10 001 – 100 000 | 76 | 1.49 | 1,894,204 | 10.41 |
| 100 001 – 1 000 000 | 16 | 0.31 | 6,822,156 | 37.51 |
| 1 000 001 - | 2 | 0.03 | 5,597,713 | 30.77 |
| Total | 5,090 | 100.00 | 18,186,590 | 100.00 |
| Final calculation of recognised fair values on acquisition of Satlan | ||
| 1 000 EUR | ||
| Fair values used in consolidation | ||
| Trade marks (inc. in intangible assets) | 154 | |
| Customer relationship (inc. in intangible assets) | 843 | |
| Inventories | 1,314 | |
| Trade receivables | 1,305 | |
| Book values used in consolidation | ||
| Tangible assets | 51 | |
| Other receivables | 219 | |
| Liquid funds | 333 | |
| Total assets | 4,219 | |
| Book values used in consolidation | ||
| Deferred tax liabilities | 259 | |
| Other liabilities | 2,363 | |
| Total liabilities | 2,622 | |
| Net identifiable assets and liabilities | 1,597 | |
| Total consideration | 6,330 | |
| Goodwill on acquisition | 4,733 | |
| Consideration paid in cash | -2,780 | |
| Cash and cash equivalents in acquired subsidiary | 333 | |
| Total net cash outflow on the acquisition | -2,447 | |
ADDITIONAL INFORMATION:
CEO Jukka Rinnevaara, tel +358 2 2605 866 or +358 400 747 488
DISTRIBUTION:
NASDAQ OMX Helsinki
Media
www.teleste.com