QPR SOFTWARE PLC STOCK EXCHANGE RELEASE OCTOBER 22, 2009 9.30 AM
INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2009
QPR SOFTWARES' THIRD QUARTER RESULTS IMPROVED FROM LAST YEAR,
OPERATING MARGIN WAS 10.6%
SUMMARY
July - September 2009:
- Net sales EUR 1.501 million (July - September
2008: EUR 1.485 million)
- Operating profit EUR 0.159 million (0.063)
- Operating margin 10.6 percent of net
sales (4.2)
- Earnings per share were EUR 0.01
(0.00)
January - September 2009:
- Net sales EUR 4.817
million (January - September 2008: EUR 5.453 million)
- Operating profit
EUR 0.486 million (0.478)
- Operating
margin 10.1 percent of net sales (8.8)
-
Earnings per share were EUR 0.03 (0.03)
QPR Software´s operating profit from July - September improved
significantly
from last year, mainly due to successful cost control. Net
sales rose to EUR
1.501 million (1.485). Net sales in Finland increased
28.8 per cent from last
year, leading to improved profitability. Net sales
in QPR´s international
operations decreased, but at a markedly lower
pace than in the first two
quarters of 2009.
QPR Software estimates that its
operating profit in the second half of 2009
remains on the level achieved
in the first half of 2009 (January - September
2009: EUR 0.327 million) or
improves.
KEY FIGURES
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|
(EUR 1.000) | 7-9/ | 7-9/ | Change-| 1-9/ | 1-9/ | Change- |
1-12/
| | 2009 | 2008 | % | 2009 | 2008 | % |
2008
--------------------------------------------------------------------------
------
|
Net sales | 1,501 | 1,485 | 1.1 | 4,817 | 5,454 | -11.7 |
7,512
-------------------------------------------------------------------------
-------
|
Operating profit | 159 | 63 | 152.3 | 486 | 478 | 1.7 |
893
---------------------------------------------------------------------------
-----
|
% of net sales | 10.6 | 4.2 | | 10.1 | 8.8 | |
11.9
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------
|
Profit before | 149 | 75 | 98.2 | 477 | 493 | -3.2 |
927
| tax | | | | | | |
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--
|
Profit for the | 116 | 59 | 96.6 | 383 | 385 | -0.5 |
928
| period | | | | | | |
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--
|
% of net sales | 7.7 | 4.0 | | 8.0 | 7.1 | |
12.4
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------
------------------------------------------------------------------------
--------
|
Earnings per | | | | 0.03 | 0.03 | |
0.08
| share, EUR | | | | | | |
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--
|
EPS (diluted), | | | | 0.03 | 0.03 | |
0.07
| EUR | | | | | | |
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--
|
Equity per | | | | 0.22 | 0.18 | |
0.22
| share, EUR | | | | | | |
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--
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----
|
Cash flow from | | | | 399 | 955 | |
1,518
| operating | | | | | | |
| activities | | | | | |
|
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--
|
Cash and cash | | | 2,042 | 1,530 | |
1,716
| equivalents | | | | | |
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--
|
Net liabilities | | | | -842 | -1,269 | |
-1,534
------------------------------------------------------------------------
--------
|
Gearing, % | | | | -31.4 | -56.5 | |
-56.1
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-------
|
Equity ratio, % | | | | 50.9 | 55.1 | |
54.9
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------
|
Return on | | | | 18.9 | 22.8 | |
37.1
| equity, % | | | | | | |
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--
|
Return on | | | | 19.7 | 25.8 | |
33.6
| investment, % | | | | | | |
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--
REPORTING
This
interim report complies with accounting and valuation principles of IFRS,
but in preparations not all the requirements of IAS 34-standard have been
considered. The accounting and valuation principles are the same as they
were in
2008 financial statements. This interim report is not audited.
QPR Software´s business consists of software sales, software
maintenance sales
and professional services.
As of January 1, 2009 QPR Software Plc has three
business segments: Software
Sales International (software license and
maintenance sales outside of Finland),
Software Sales Finland (software
license and maintenance sales in Finland) and
Service and Solutions (global
professional service sales).
The company has
re-defined reporting principles, and does not anymore monitor
minor
inter-segment net sales or report it. The company has also revised
accordingly the segment information provided in the 2008 Annual Report.
The geographical segments used by the Company are Domestic (Finland) and
International markets.
JULY - SEPTEMBER 2009 COMPARED WITH JULY - SEPTEMBER 2008
THE GROUP
Group net sales by geography, (EUR 1,000):
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----
|
(EUR 1 000) | 7-9/ | Share- | 7-9/ | Share- | Change- | 1-12/
|
| | 2009 | % | 2008 | % | % |
2008
|
-----------------------------------------------------------------------------
---
|
Domestic | 577 | 38.4 | 448 | 30.2 | 28.8 | 2,634
|
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---
|
International | 924 | 61.6 | 1,037 | 69.8 | -10.9 | 4,878
|
-----------------------------------------------------------------------------
---
|
Total | 1,501 | 100.0 | 1,485 | 100.0 | 1.1 | 7,512
|
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---
QPR
Software Group´s net sales in the third quarter of 2009 were EUR 1.501
million (1.485), representing a growth of 1.1 per cent, Software Sales
Finland´s
net sales and profitability developed very favorably, but
international net
sales decreased by 10.9 per cent. The decline in
international net sales was,
however, clearly smaller than in the two first
quarters of 2009.
The Company has this year offered, as an
alternative for software license sales,
a pricing model based on subscription
fees. The new pricing model has been well
received in the markets. The share
of subscription sales of QPR´s net sales are
expected to remain, however,
relatively small in the short term future.
The Company´s and its
resellers´ offer portfolio grew from previous year, but
the customers´
software purchase processes remained clearly slower than in
previous
year.
Group net sales divided into software licenses, maintenance services and
professional services as follows, (EUR 1,000):
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----
|
| 7-9/ | Share- | 7-9/ | Share- | Change- | 1-12/
|
| | 2009 | % | 2008 | % | % |
2008
|
-----------------------------------------------------------------------------
---
|
Software licenses | 494 | 32,9 | 562 | 37.9 | -12.1 | 3,617
|
-----------------------------------------------------------------------------
---
|
Maintenance | 812 | 54.1 | 734 | 49.4 | 10.6 | 2,957
|
| services | | | | | |
|
-----------------------------------------------------------------------------
---
|
Professional | 195 | 13.0 | 189 | 12.7 | 3.2 | 938
|
| services | | | | | |
|
-----------------------------------------------------------------------------
---
|
Total | 1,501 | 100.0 | 1,485 | 100.0 | 1.1 | 7,512
|
-----------------------------------------------------------------------------
---
Software
license sales decreased somewhat from last year and were EUR 0.494
million
(0.562). The decrease was mainly attributable to current stringent
economic situation and the Company´s initiative to offer subscription based
pricing model as an alternative to software license sales.
Maintenance services sales rose to EUR 0.812 million (0.734). The
migration of
maintenance customers to the new QPR 8.0 software version,
launched at the end
of 2008, continued swiftly.
EUR 0.039 million maintenance sales increase was due
to business acquired from
Mawell Ltd, QPR bought at the end of December 2008
all Mawell Ltd´s customer
contracts regarding QPR ProcessGuide, QPR
ScoreCard and CostPerform software
products.
Operating profit in July -
September improved significantly to EUR 0.159 million
(0.063), mainly due to
successful cost control. Operating margin rose to 10.6%
(4.2)
Depreciation
grew to EUR 0.126 million (0.069), which was partly due to
amortization of the purchase price of the business acquired from Mawell Ltd.
Net profit after tax in July - September was EUR 0.116 million (0.059),
which
corresponded to 7.7% (4.0) of net sales.
In the Group´s balance sheet as of September 30, 2009, the
remaining amount of
deferred tax is EUR 0.464 million (0.435).
The (diluted) earnings per share were EUR 0.01
(0.00).
BUSINESS SEGMENTS
Group net sales by primary business
segments, (EUR 1,000):
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|
| 7-9/ | Share- | 7-9/ | Share- | Change-
|
| | 2009 | % | 2008 | % |
%
|
-----------------------------------------------------------------------------
---
|
Software Sales | 917 | 61.1 | 1,009 | 63.2 | -9.2
|
| International | | | | |
|
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---
|
Software Sales Finland | 410 | 27.3 | 292 | 24.3 | 40.6
|
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---
|
Service and Solutions | 174 | 11.6 | 184 | 12.5 | -5.5
|
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---
|
Total | 1,501 | 100.0 | 1,485 | 100.0 | 1.1
|
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---
Group
operating profit by business segments, (EUR 1,000):
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----
|
| 7-9/ | Share- | 7-9/ | Share- | Change-
|
| | 2009 | % | 2008 | % |
%
|
-----------------------------------------------------------------------------
---
|
Software Sales | 165 | 104.0 | 122 | 192.8 | 35.6
|
| International | | | | |
|
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---
|
Software Sales Finland | 109 | 68.8 | 37 | 58.9 | 193.7
|
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---
|
Service and Solutions | -24 | -15.5 | -34 | -54.0 | 27.9
|
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---
|
Not allocated | -91 | -57.3 | -62 | -97.7 | -47.5
|
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---
|
Total | 159 | 100.0 | 63 | 100.0 | 151.5
|
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---
Software
Sales International
Software Sales International business segment´s net sales in July -
September
decreased in a stringent economic situation to EUR 0.917 million
(1.009).
Thanks to improved efficiency operating profit increased to EUR 0.165
million
(0.122).
The largest export markets were South-Africa, Mexico,
Sweden, Belgium and Great
Britain. QPR delivered software, among others, in
Bulgaria to Unimasters
Logistics Plc, in Chile to the Supreme Court,
in South-Africa to Nampak Ltd and
the Dr Kenneth Kaunda District Municipality
Cape Peninsula, in Dubai to Gulf
Agency Company, in Japan to the Bank of
Yokohama, in Malaysia to Jabatan Kerja
Raya (the Public Works Department),
in Sweden to Ludvika council, in Turkey to
the University of Tehnology
(Istanbul University) and Mercedes-Benz Turkey, and
to Russia to Armtek,
Econica, Losinoostrovsky Electrode Plan and to the biggest
mobile operator in
the Russian Federation, MTS.
Software Sales
Finland
Software
Sales Finland -business segment´s net sales in July - September rose to
EUR
0.410 million (0.292), thanks to increased software license and maintenance
sales. Also operating profit rose, due to increased sales, to EUR 0.109
million
(0.037).
In Finland QPR delivered software, among others, to Enfo Oyj,
Cargotec
Corporation, Onninen Group, Pohjola Bank, the social and
healthcare services
district of Etelä-Karjala, Laurea university of
applied sciences and to the
local government IT management unit of
Ministry of Finance (KuntaIT).
Service and Solutions
Service and Solutions business
segment´s net sales decreased mainly due to
lower international professional
service sales than in the previous year. Net
sales were EUR 0.174 million
(0.184). The operating loss improved to EUR -0.024
million (-0.034). Net sales
in the review period were mainly derived from
Finland.
In its professional service offering. QPR focuses especially
on business process
consulting, in which QPR experts have significant
experience across the
industries.
JANUARY - SEPTEMBER 2009 COMPARED WITH
JANUARY - SEPTEMBER 2008
THE GROUP
QPR Software Group´s net sales in January -
September 2009 were EUR 4.817
million (5.454).
The decrease in net sales was due to
lower international software sales than in
the previous year. However, the
decrease in the international software sales was
substantially more moderate
in the third quarter than during the two first
quarters of 2009.
International net sales in January - September were EUR 2.714
million (3.641)
Net sales
in Finland grew and were EUR 2.103 million (1.813). The increase was
boosted
by increased software and license sales and QPR´s expansion to
healthcare sector in the beginning of 2009.
Group net sales by geography, (EUR 1,000):
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|
| 1-9/ | Share- | 1-9/ | Share- % | Change- | 1-12/
|
| | 2009 | % | 2008 | | % |
2008
|
-----------------------------------------------------------------------------
---
|
Domestic | 2,103 | 43.7 | 1,813 | 33.2 | 16.0 | 2,634
|
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---
|
International | 2,714 | 56.3 | 3,641 | 66.8 | -25.5 | 4,878
|
-----------------------------------------------------------------------------
---
|
Total | 4,817 | 100.0 | 5,454 | 100.0 | -11.7 | 7,512
|
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---
Group
net sales divided into software licenses, maintenance services and
professional services as follows, (EUR 1,000):
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----
|
| 1-9/ | Share- | 1-9/ | Share- % | Change- | 1-12/
|
| | 2009 | % | 2008 | | % |
2008
|
-----------------------------------------------------------------------------
---
|
Software licenses | 1,652 | 34,3 | 2,558 | 46.9 | -35,4 | 3,617
|
-----------------------------------------------------------------------------
---
|
Maintenance | 2,522 | 52.4 | 2,218 | 40.7 | 13.7 | 2,957
|
| services | | | | | |
|
-----------------------------------------------------------------------------
---
|
Professional | 643 | 13.3 | 678 | 12.4 | -5.2 | 938
|
| services | | | | | |
|
-----------------------------------------------------------------------------
---
|
Total | 4,817 | 100.0 | 5,454 | 100.0 | -11.7 | 7,512
|
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---
Maintenance
service sales increased to EUR 2.522 million (2.218). The migration
of
maintenance customers to the new QPR 8.0 software version, launched at the
end of 2008, continued swiftly. EUR 0.165 million maintenance sales increase
was
due to business acquired from Mawell Ltd. The transfer of contracts was
finalized during the second quarter.
Professional services net sales was EUR 0.643 million (0.678). Its
share of
Group's net sales increased slightly and was 13.3 percent
(12.4).
Operating profit in January - September increased to
EUR 0.486 million (0.478)
thanks to successful cost control. Operating
margin was 10.1% (8.8).
Depreciation grew to EUR 0.335 million
(0.208), which was partly due to
depreciation the purchase price of
the business acquired from Mawell Ltd.
Cash flow from operating
activities was positive EUR 0.399 million (0.955).
Net profit after tax
in January - September was EUR 0.383 million (0.385), which
corresponded to
8.0% of net sales (7.1).
Earnings
per share (diluted) were EUR 0.03 (0.03).
BUSINES SEGMENTS
Group net sales by primary business segments, (EUR 1,000):
----------------------------------------------------------------------------
----
|
| 1-9/ | Share- | 1-9/ | Share- | Change-
|
| | 2009 | % | 2008 | % |
%
|
-----------------------------------------------------------------------------
---
|
Software Sales | 2,664 | 55.3 | 3,536 | 64.8 | -24.7
|
| International | | | | |
|
-----------------------------------------------------------------------------
---
|
Software Sales Finland | 1,547 | 32.1 | 1,275 | 23.4 | 21.4
|
-----------------------------------------------------------------------------
---
|
Service and Solutions | 606 | 12.6 | 643 | 11.8 | -5.7
|
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---
|
Total | 4,817 | 100.0 | 5,454 | 100.0 | -11.7
|
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---
Group
operating profit by business segments, (EUR 1,000):
----------------------------------------------------------------------------
----
|
| 1-9/ | Share- | 1-9/ | Share- | Change-
|
| | 2009 | % | 2008 | % |
%
|
-----------------------------------------------------------------------------
---
|
Software Sales | 254 | 52.2 | 458 | 95.9 | -44.6
|
| International | | | | |
|
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---
|
Software Sales Finland | 525 | 108.0 | 333 | 69.7 | 57.5
|
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---
|
Service and Solutions | -21 | -4.3 | 30 | 6.3 | -169.8
|
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---
|
Not allocated | -272 | -55.9 | -343 | -71.9 | 20.9
|
-----------------------------------------------------------------------------
---
|
Total | 486 | 100.0 | 478 | 100.0 | 1.7
|
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---
Software
Sales International
Software Sales International business segment´s net sales decreased in
January - September to EUR 2.664 million (3.536), due to lower software
license
sales. For the same reason, the segment´s operating profit decreased
to EUR
0.254 million (0.458).
The largest export markets were Russian Federation, Sweden,
South-Africa,
Mexico, Japan, United Arab Emirates and Switzerland.
Software Sales Finland
Software Sales Finland business segment´s net
sales in January - September rose
to EUR 1.547 million (1.275) thanks to
increased software license and
maintenance sales. Operating profit
rose due to increased sales to EUR 0.525
million (0.333).
Service and Solutions
Service and Solutions
business segment´s net sales in January - September was
EUR 0.606 million
(0.643). Operating profit turned slightly negative and totaled
to EUR -0.021
million (0.030). The decrease was due to lower international
professional
service sales than in the previous year. Net sales were mainly
derived from
Finland.
FINANCE AND INVESTMENTS
The value of total assets at the end of September 2009 was EUR 6.170
million
(5.147). The Group´s investments in the review period totaled to
EUR 0.649
million (0.161).
Cash flow from operating activities was EUR 0.399 million
(0.955). The main
reason for decreased cash flow is the increase of
working capital during the
review period. Cash and cash equivalents at the
end of the review period were
EUR 2.042 (1.530). The dividend of EUR 0.368
was paid in the reporting period
(0.368).
The Group´s interest bearing
liabilities increased to EUR 1.200 million (0.261)
due to EUR 1.1 million
pension loan withdrawn during the review period. The
gearing ratio on
September 30, 2009 was -31.4% (-56.5). Return on capital
employed was
19.7% (25.8).
Short-term liabilities include deferred revenue in total of EUR 0.901
million
(1.072). At the end of reporting period, quick ratio was 2.50
(2.42).
At the end of the reporting period, the Group equity
stood at EUR 2.684 million
(2.244), and equity to assets ratio was 50.9%
(55.1). Return on equity was 18.9%
(22.8).
PERSONNEL
At the end of the September, the
Group employed a total of 59 persons (54).
Average number of personnel
was 56 (53).
PRODUCT DEVELOPMENT
The amount of R&D
expenses in the review period were EUR 0.844 million (1.142),
representing
18.3% of net sales (20.9 %).
In the
review period, R&D expenses have been activated as assets for a total
amount of EUR 0.087 million (0.095). The depreciation period of capitalized
R&D
expenses is 4 years. The depreciation of activated R&D expense was EUR
0.118
million (0.065).
Product development employed 20 people (14) at the end of the
review period,
corresponding to 34 % of the total personnel (26 %). The
core know-how of
product development remains centralized within the own
organization. Long-term
co-operation continued with established
subcontractors. QPR Software has been a
Microsoft Gold Certified Partner
since 2007.
In the review period,
Research & Development activities focused on the
development of a
new version of the QPR product family, QPR 8.1, released in
October 2009.
The new version will broaden the integration between the QPR
software
products and the Microsoft Office product family by e.g enabling
publishing and distribution of process, quality, performance and risk
information through Microsoft Office SharePoint Server portals. As part of
the
new release, the QPR product family will also become fully compatible
with
Microsoft Windows 7™. QPR's desktop process modeling tool. QPR
ProcessGuide
Xpress, has already during the review period been certified
for Windows 7™.
QPR offers an easy-to-use, ready-to-run software that
combines process modeling
and analysis (QPR ProcessGuide), business process
automation (QPR WorkFlow),
performance management and measurement (QPR
ScoreCard), and business
intelligence (QPR FactView) into one
complete solution for process management,
quality management, risk
management and compliance.
With the help of QPR
software solutions, organizations optimize business
processes, take
control of risk and compliance issues, improve operational
performance
and drive strategy throughout their organization in order to comply
with
rules and regulation as well as manage transition caused by strategic or
regulatory demands.
The software products developed by QPR are fast to implement and adapt to
customers' evolving requirements and their chosen management
methodology. QPR
software applications are especially designed to be
compatible with Microsoft
software products and are scalable from a
single-user to an organization-wide
management system.
The QPR product family has been
localized into 26 languages (24).
COMPANY SHARES AND TRADING
IN COMPANY SHARES
The Company's share
capital on September 30, 2009 was EUR 1.359 million divided
into 12,444,863
shares. QPR Software Plc has one share class. The book counter
value is EUR
0.11.
At the
end of review period, the Company had a total of 579 shareholders. In
January - September, trading in company shares amounted to EUR 0.511 million.
i.e. an average of EUR 2,717 per trading day. Trading in shares was in
total
592,817 shares, giving an average of 3,153 shares per trading day.
Turnover in
shares corresponds to 4.76% of the total shares and the average
price was EUR
0.86 per share.
The total market value of the company shares was EUR
10.846 million at September
30, 2009 closing price of EUR 0.89.
OWN SHARES
The number of acquired own shares in
January - September was 97,850 At the end
of September the Company held
258,000 of its own shares with a total book
counter value of EUR 28,433
and a total purchase price of EUR 209,102.83. Own
shares held by the
company represented 2.07% of the Company´s capital stock
(1.04).
The Board
of Directors has been granted by the Annual Shareholders Meeting of
March
12, 2009 a share repurchases authorization, valid until next Annual
Shareholders Meeting, to repurchase company shares in total of 250,000 shares
at
maximum. According to the authorization the company may acquire own shares
in
order to strengthen the company's capital structure, to be used as
payment in
corporate acquisitions or when the company acquires assets
related to its
business or as part of the company's incentive programs
in a manner and to the
extent decided by the Board of Directors, or to be
transferred for other
purposes or to be cancelled.
OTHER EVENTS
QPR Software's new business organization
came effective as of January 1, 2009.
From the same day, the Executive
Management Team consists of the following
persons: Chief Executive
Officer Jari Jaakkola (chairman), Vice President
Software Sales
International Antti Ainasoja, Vice President Software Sales
Finland
Matti Erkheikki, Vice President Services and Solutions Maija Erkheikki,
Vice
President Marketing and Business Development Teemu Lehto, acting CFO Päivi
Vahvelainen (until August 9, 2009) and Vice President Products and Technology
Tony Virtanen.
M.Sc. (Eng) Kari Pihlatie (52) started on August 10, 2009 as the Chief
Financial Officer and Member of the Executive Management Team. He
joined the
company from Metsaliitto Finnforest and has previously held
several financial
management leadership positions, among others, in M-real
Corporation and Metsa
Tissue Corporation.
In its meeting on January 19, 2009 the QPR Board
of Directors approved 67,000
share subscriptions made under QPR Software
Plc Stock Option Plan 2003/III A and
2003/B. The new shares were entered into
the Trade Register in February 10,
2009, after which the number of
company´s shares rose to 12,444,863. The company
has no option schemes in
effect.
The Board of
Directors of QPR Software Plc decided on February 11, 2009 to
withdraw a
pension loan of EUR 1.1 million, with loan period of 5 years. The
loan was
fully withdrawn during the second quarter.
In
its meeting on September 23, 2009 the QPR Board of Directors approved
Company's new principles for risk management reporting. Application of the
principles starts in the third quarter financial reporting.
STRATEGY
According to the strategic guidelines of the Company, QPR aims to
substantially
increase the number of QPR software users both in new and
existing customer
organizations. The Company believes that this will have a
positive effect also
on the sales of professional services. Pricing will be
further simplified, and
affordable solutions are offered also to
organizations with large number of
users.
The company aims to accelerate its
software sales process and deployment of its
customer solutions by creating
service concepts around QPR software, and
offering replicable
frameworks that are based on target group specific needs.
In
international markets QPR focuses on further diversifying and strengthening
its sales channel by entering in co-operation agreements with e.g. Microsoft
resellers and health care consultancies. In the near regions QPR will
invest
especially in sales to Russia.
Product development is focused on supporting the chosen service
offering, by
utilizing both the existing QPR products and their strong
Microsoft
compatibility.
The Company continues to follow the structural
developments in the software
Industry, and aims actively to participate
in it.
DECISIONS MADE BY THE ANNUAL
SHAREHOLDERS' MEETING AND GOVERNANCE
The Annual Shareholders'
Meeting held on March 12, 2009 made the following
decisions:
The Annual
Shareholders' Meeting confirmed the company's financial statements
and the
group's financial statements for the financial period of January
1 -
December 31, 2008 and released the Board of Directors and the Managing
Directors from liability.
The Annual Shareholders' Meeting approved the Board's proposal that a
per-share
dividend of EUR 0.03, a total of EUR 368,262.39, be paid for the
financial year
2008. The dividend was paid to shareholders entered in the
company's shareholder
register, maintained by Euroclear Finland Oy, on the
record date of March 17,
2009. The dividend payment date was March 26,
2009.
The Annual Shareholders' Meeting resolved
that the Board of Directors shall
consist of five ordinary members. The
Annual Shareholders' Meeting elected the
following members to the Board of
Directors: Jyrki Kontio, Vesa-Pekka Leskinen,
Jarmo Niemi, Asko Piekkola and
Topi Piela. In its first meeting immediately
following the Annual
Shareholders' Meeting, the Board of Directors elected
Vesa-Pekka
Leskinen as Chairman of the Board.
KPMG
Oy Ab, Authorized Public Accountants, continues as QPR Software Plc's
Auditors.
The Annual Shareholders' Meeting decided to keep the Board of Directors´
yearly
emoluments the same as in previous year. A yearly emolument of EUR
25,230 is
paid to the Chairman of the Board and EUR 16,820 to the other
Members of the
Board.
The Annual Shareholders' Meeting decided to authorize
the Board of Directors to
decide on an issue of new shares and conveyance of
the own shares held by the
company (share issue) either in one or in
several occasions. The share issue can
be carried out as a share issue against
payment or without consideration on
terms to be determined by the Board
of Directors.
The authorization also includes
the right to issue special rights, in the
meaning of Chapter 10 Section
1 of the Companies Act, which entitle to the
company's new shares or the
company's own shares held by the company against
payment. In the share
issue and/or based on the special rights a maximum of
4,000,000 new
shares can be issued and a maximum of 250,000 own shares held by
the company
can be conveyed. The authorization is in force until the next
Annual
Shareholders' Meeting.
The Annual Shareholders' Meeting decided to authorize the Board of
Directors to
decide on an acquisition of own shares. Based on the
authorization own shares
may be acquired, either in one or in several
occasions, the aggregate maximum
amount of 250,000 shares. The
authorization is in force until the next Annual
Shareholders´ Meeting.
Further, the Annual
Shareholders' Meeting decided to authorize the Board of
Directors to
decide on potential distribution of assets from the invested
unrestricted equity fund, provided that the evaluations of the financial
situation of the company and its market outlook are in favor of such a
decision.
The maximum distribution of assets is EUR 0.02 per share. The
authorization is
in force until the next Annual Shareholders´ Meeting. The
Board of Directors
must make the decision no later than 31 December, 2009.
The conditions of all authorizations of the Board
are available in their
entirety on the investors section of the
company's web site, and on the stock
exchange release, published by the
company on March 12, 2009.
CORPORATE GOVERNANCE
QPR Software Plc complies
with the NASDAQ OMX Helsinki Ltd's Guidelines for
Insiders issued on June
2, 2008 and the Corporate Governance Code, including its
transitional
provisions, effective as of January 1, 2009.
The
Company's Corporate Governance Statement is available in the Investor
section of the Company's website, www.qpr.com. Also available in the
investor section is further information, such as, administration of
insiders
register, public insiders register, list of major shareholders,
articles of
association, charter of the Board, description of how
internal control and
internal audit is organized, introductions of the
members of the Board and
Executive Management Team, and the information
published by the company in the
review period.
SHORT-TERM RISKS AND UNCERTAINTIES
Internal control and risk management
in QPR Software Plc aims to ensure that the
Company operates efficiently and
effectively, distributes reliable
information, complies to
regulations and operational principles, reaches its
strategic goals and
ensures continuity of its business.
It is the duty
of the Board of Directors to monitor the appropriateness,
effectiveness and efficiency of risk management and internal control in QPR
Software Group. The Board of Directors also monitors that the Company has
defined operational principles for internal control and that the Company
monitors the effectiveness of internal control. Risk management report
is
presented to the Board in connection with quarterly financial
reporting.
Coordination of risk management and internal control and
related reporting is
the responsibility of the Chief Financial Officer. QPR
Software identifies the
risks by their essentiality: if actualized, the
risks selected for monitoring
would have a material impact on the Company's
business operations.
QPR has identified the following four
groups of risks related to its operations:
risks related to business
operations (country, customer, result forecasting
process, personnel,
legal, financial), risks related to company's general
operational
environment (economic fluctuations), risks related to information
and
products (QPR products, IPR, data security) and risks related to financing
(foreign currency, bad debt). Property, operational and liability risks are
covered by insurance.
Reasonable credit risk concerning individual business partners is
characteristic
to any international business. QPR seeks to limit this credit
risk by continuous
monitoring of standard payment terms, receivables and
credit limits. The
management of QPR estimates that the company´s
credit loss risk is on customary
and reasonable level.
External business environment changes,
such as economic fluctuations, are
included in the Company´s market and
customer risks. General decline in business
activity has been exceptionally
abrupt since autumn 2008, and this has created
economic unrest in all
markets. The general economic uncertainty, continuation
of negative
development or deepening of such a development may have a negative
impact on
software market and thus, also to QPR´s business operations.
QPR´s
market and customer risks are mitigated by the following factors: the
Company conducts business in over 50 countries, both in public and private
sector as well as in several different business verticals. In addition, the
customer benefits produced by QPR´s products and solutions are related to
optimization and streamlining of operations, strategy implementation as
well as
risk management and compliance. QPR believes, based on its earlier
experiences
from cyclical fluctuations that demand for these customer
benefits remains
relatively strong even in recession.
No significant changes have taken place in QPR's
short-term risks and
uncertainties during the financial period.
Risks related to QPR Software´s business
are further described in the Annual
Report 2008, page 23
(www.qpr.com/annual-reports.html).
FUTURE OUTLOOK
Market
forecasts published in the first half of 2009 estimate that total
corporate IT investments will decrease in 2009. The estimated decrease
varies,
and is usually between 3 and 10%, depending on the publisher of the
forecast and
its timing.
Based on current software market growth forecasts, QPR´s own
forecasts and
resellers' forecasts. QPR Software estimates that its
operating profit in the
second half of 2009 remains on the level achieved
in the first half of 2009
(January - July 2009: EUR 0.327 million) or
improves.
The nature of the software license
business of the QPR Group is seasonal.
Seasonality of large software
deals can affect significantly net sales and
profit of one individual
quarter.
QPR SOFTWARE PLC'S
FINANCIAL INFORMATION
QPR Software
Plc will publish Financial Statements Bulletin for 2009 on
Thursday,
February 18, 2010
QPR
SOFTWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0)40 5026 397
www.qpr.com
DISTRIBUTION
OMX Nordic Exchange Helsinki
Main Media
Neither this press release nor any copy of it may
be taken, transmitted into or
distributed in the United States of America or
its territories or possessions.
APPENDIX: TABLE SECTION
------------------------------------------------------------------------------
--
|
CONSOLIDATED INCOME | | | | |
|
| STATEMENT | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
(EUR 1,000) | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/
|
| | 2009 | 2008 | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Net sales | 1,501 | 1,485 | 4,817 | 5,454 | 7,512
|
-----------------------------------------------------------------------------
---
|
Other operating income | 3 | 7 | 35 | 39 | 51
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Material and services | 134 | 225 | 363 | 757 | 875
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Employee benefits | 748 | 733 | 2,533 | 2,662 | 3,653
|
| expenses | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 126 | 69 | 335 | 208 | 301
|
-----------------------------------------------------------------------------
---
|
Other operating expenses | 337 | 402 | 1,135 | 1,388 | 1,841
|
-----------------------------------------------------------------------------
---
|
Operating profit | 159 | 63 | 486 | 478 | 893
|
-----------------------------------------------------------------------------
---
|
Financial income and | -10 | 12 | -9 | 15 | 34
|
| expenses | | | | |
|
-----------------------------------------------------------------------------
---
|
Profit before tax | 149 | 75 | 477 | 493 | 927
|
-----------------------------------------------------------------------------
---
|
Income tax expense | -33 | -16 | -94 | -108 | 1
|
-----------------------------------------------------------------------------
---
|
Profit for the period | 116 | 59 | 383 | 385 | 928
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Other comprehensive income statement items: | | |
|
-----------------------------------------------------------------------------
---
|
Exchange differences on | 15 | 6 | 10 | -4 | -35
|
| translating foreign | | | | |
|
| operations | | | | |
|
-----------------------------------------------------------------------------
---
|
Income tax relating to | - | - | - | - | -
|
| components of other | | | | |
|
| comprehensive income | | | | |
|
-----------------------------------------------------------------------------
---
|
Other comprehensive | 15 | 6 | 10 | -4 | -35
|
| income, | | | | |
|
| net of tax | | | | |
|
-----------------------------------------------------------------------------
---
|
Total comprehensive | 131 | 65 | 393 | 381 | 893
|
| income | | | | |
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
Profit attributable to: | | | | |
|
| Equity holders of the | | | | |
|
-----------------------------------------------------------------------------
---
|
parent company | 116 | 59 | 383 | 385 | 928
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total comprehensive | | | | |
|
| income attributable to: | | | | |
|
-----------------------------------------------------------------------------
---
|
Equity holders of the | 131 | 65 | 393 | 381 | 893
|
| parent company | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Earnings per share | 0.01 | 0.00 | 0.03 | 0.03 | 0.07
|
| (diluted), EUR | | | | |
|
-----------------------------------------------------------------------------
---
|
Earnings per share, EUR | 0.01 | 0.00 | 0.03 | 0.03 | 0.08
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
CONSOLIDATED BALANCE SHEET | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
(EUR 1,000) | Sept 30 | Sept 30 | Dec 31
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Assets | | |
|
-----------------------------------------------------------------------------
---
|
Non-current assets | | |
|
-----------------------------------------------------------------------------
---
|
Tangible assets | 163 | 256 | 226
|
-----------------------------------------------------------------------------
---
|
Other intangible assets | 1,258 | 466 | 1,078
|
-----------------------------------------------------------------------------
---
|
Trade and other receivables | 5 | 5 | 5
|
-----------------------------------------------------------------------------
---
|
Deferred tax assets | 464 | 435 | 539
|
-----------------------------------------------------------------------------
---
|
Total non-current assets | 1,890 | 1,162 | 1,848
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Current assets | | |
|
-----------------------------------------------------------------------------
---
|
Trade and other receivables | 2,238 | 2,455 | 2,483
|
-----------------------------------------------------------------------------
---
|
Cash and cash equivalents | 2,042 | 1,530 | 1,716
|
-----------------------------------------------------------------------------
---
|
Total current assets | 4,280 | 3,985 | 4,199
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total assets | 6,170 | 5,147 | 6,047
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Equity and liabilities | Sept 30 | Sept 30 | Dec 31
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Equity | | |
|
-----------------------------------------------------------------------------
---
|
Share capital | 1,359 | 1,359 | 1,359
|
-----------------------------------------------------------------------------
---
|
Share premium | 0 | 0 | 0
|
-----------------------------------------------------------------------------
---
|
Reserve fund | 21 | 21 | 21
|
-----------------------------------------------------------------------------
---
|
Invested non-restricted | 371 | 235 | 360
|
| equity fund | | |
|
-----------------------------------------------------------------------------
---
|
Translation differences | -95 | -74 | -105
|
-----------------------------------------------------------------------------
---
|
Treasure shares | -209 | -101 | -125
|
-----------------------------------------------------------------------------
---
|
Retained earnings | 1,237 | 804 | 1,222
|
-----------------------------------------------------------------------------
---
|
Equity attributable to | 2,684 | 2,244 | 2,732
|
| shareholders of the | | |
|
| parent company | | |
|
-----------------------------------------------------------------------------
---
|
Total equity | 2,684 | 2,244 | 2,732
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Non-current liabilities | | |
|
-----------------------------------------------------------------------------
---
|
Interest-bearing liabilities | 974 | 182 | 79
|
-----------------------------------------------------------------------------
---
|
Total non-current liabilities | 974 | 182 | 79
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Current liabilities | | |
|
-----------------------------------------------------------------------------
---
|
Accounts payables and other | 2,286 | 2,642 | 3,133
|
| payables | | |
|
-----------------------------------------------------------------------------
---
|
Interest-bearing liabilities | 226 | 79 | 103
|
-----------------------------------------------------------------------------
---
|
Total current liabilities | 2,512 | 2,721 | 3,236
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total liabilities | 3,486 | 2,903 | 3,315
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total equity and liabilities | 6,170 | 5,147 | 6,047
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
CONSOLIDATED CASH FLOW | | | |
|
| STATEMENT | | | |
|
-----------------------------------------------------------------------------
---
|
(EUR 1,000) | 1.1.-30.9 | 1.1.-30.9. | 1.1.-31.12 |
|
| | 2009 | 2008 | 2008 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Cash flow from operating | | | |
|
| activities | | | |
|
-----------------------------------------------------------------------------
---
|
Profit for the period | 383 | 385 | 928 |
|
-----------------------------------------------------------------------------
---
|
Adjustments for the profit | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 335 | 208 | 301 |
|
-----------------------------------------------------------------------------
---
|
Non-cash transactions | -58 | 92 | 83 |
|
-----------------------------------------------------------------------------
---
|
Changes in working capital | | | |
|
-----------------------------------------------------------------------------
---
|
Changes in trade and | 245 | 98 | -67 |
|
| other receivables | | | |
|
-----------------------------------------------------------------------------
---
|
Changes in accounts payable and | -461 | 184 | 275 |
|
| other liabilities | | | |
|
-----------------------------------------------------------------------------
---
|
Interest expense and other | -21 | -4 | -10 |
|
| financial expenses | | | |
|
-----------------------------------------------------------------------------
---
|
Interest income and other | 8 | 17 | 38 |
|
| financial income | | | |
|
-----------------------------------------------------------------------------
---
|
Income taxes paid | -32 | -25 | -30 |
|
-----------------------------------------------------------------------------
---
|
Net cash from operating | 399 | 955 | 1,518 |
|
| activities | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Cash flow from investing | | | |
|
| activities | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Purchases of tangible assets | -27 | -36 | -54 |
|
-----------------------------------------------------------------------------
---
|
Purchases of intangible assets | -622 | -125 | -382 |
|
-----------------------------------------------------------------------------
---
|
Net cash used in investing | -649 | -161 | -436 |
|
| activities | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Cash flow from financing | | | |
|
| activities | | | |
|
-----------------------------------------------------------------------------
---
|
Proceeds from issuance of | 11 | 4 | 4 |
|
| share capital | | | |
|
-----------------------------------------------------------------------------
---
|
Proceeds from long-term loans | 1,131 | 0 | 0 |
|
-----------------------------------------------------------------------------
---
|
Repayments of financial leases | -113 | -108 | -187 |
|
-----------------------------------------------------------------------------
---
|
Purchases of own shares | -84 | -37 | -60 |
|
-----------------------------------------------------------------------------
---
|
Dividends paid | -368 | -368 | -368 |
|
-----------------------------------------------------------------------------
---
|
Net cash used in financing | 576 | -509 | -611 |
|
| activities | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net change in cash and cash | 326 | 285 | 471 |
|
| equivalents | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Cash and cash equivalents in | 1,716 | 1,245 | 1,245 |
|
| the beginning of period | | | |
|
-----------------------------------------------------------------------------
---
|
Cash and cash equivalents in | 2,042 | 1,530 | 1,716 |
|
| the end of period | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
|
| JANUARY 1 - SEPTEMBER 30, 2009
|
-----------------------------------------------------------------------------
---
|(EUR
1,000)| Share | Reserve| Trans- | Trea- |Invested|Retained| Total |
|
| capital| fund | lation | sury | non- |earnings| |
|
| | | differ. | shares |resstr. | |
|
| | | | | | equity | |
|
| | | | | | fund | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Share- | 1,359 | 21 | -105 | -125 | 360 | 1,222 | 2,732
|
| holders' | | | | | | |
|
| equity | | | | | | |
|
| Jan 1, | | | | | | |
|
| 2009 | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Shares | | | | | 11 | | 11
|
| issued | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Dividends | | | | | | -368 | -368
|
| paid | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Purchase | | | | -84 | | | -84
|
| of own | | | | | | |
|
| shares | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Compre- | | | 10 | | | 383 | 393
|
| hensive | | | | | | |
|
| income | | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Change in | 0 | 0 | 10 | -84 | 11 | 15 | -48
|
| share- | | | | | | |
|
| holders' | | | | | | |
|
| equity | | | | | | |
|
| 1-9 | | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Share- | 1,359 | 21 | -95 | -209 | 371 | 1,237 | 2,684
|
| holders' | | | | | | |
|
| equity | | | | | | |
|
| Sept 30, | | | | | | |
|
| 2009 | | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
|
| JANUARY 1 - SEPTEMBER 30, 2008
|
-----------------------------------------------------------------------------
---
|(EUR
1,000)| Share | Reserve| Trans- | Trea- |Invested|Retained| Total |
|
| capital| fund | lation | sury | non- |earnings| |
|
| | | differ. | shares |resstr. | |
|
| | | | | | equity | |
|
| | | | | | fund | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Share- | 1,359 | 253 | -70 | -65 | 0 | 787 | 2,264
|
| holders' | | | | | | |
|
| equity | | | | | | |
|
| Jan 1, | | | | | | |
|
| 2008 | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Shares | | | | | 3 | | 3
|
| issued | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Dividends | | | | | | -368 | -368
|
| paid | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Purchase | | | | -36 | | | -36
|
| of own | | | | | | |
|
| shares | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Compre- | | | -4 | | | 385 | 381
|
| hensive | | | | | | |
|
| income | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Transfer | | -232 | | | 232 | |
|
| of | | | | | | |
|
| Share | | | | | | |
|
| premium | | | | | | |
|
| fund | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Change in | 0 | -232 | -4 | -36 | 235 | 17 | -20
|
| share- | | | | | | |
|
| holders' | | | | | | |
|
| equity | | | | | | |
|
| 1-9 | | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Share- | 1,359 | 21 | -74 | -101 | 235 | 804 | 2,244
|
| holders' | | | | | | |
|
| equity | | | | | | |
|
| Sept 30, | | | | | | |
|
| 2008 | | | | | | |
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
|
| JANUARY 1 - DECEMBER 31, 2008
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|(EUR
1,000)| Share | Reserve| Trans- | Trea- |Invested|Retained| Total |
|
| capital| fund | lation | sury | non- |earnings| |
|
| | | differ. | shares |resstr. | |
|
| | | | | | equity | |
|
| | | | | | fund | |
|
-----------------------------------------------------------------------------
---
|
Share- | 1,359 | 253 | -70 | -65 | 0 | 787 | 2,264
|
| holders' | | | | | | |
|
| equity | | | | | | |
|
| Jan 1, | | | | | | |
|
| 2008 | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Shares | | | | | 3 | | 3
|
| issued | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Dividends | | | | | | -368 | -368
|
| paid | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Purchase | | | | -60 | | | -60
|
| of own | | | | | | |
|
| shares | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Compre- | | | -35 | | | 928 | 893
|
| hensive | | | | | | |
|
| income | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Transfer | | -232 | | | 357 | -125 | 0
|
| of share | | | | | | |
|
| premium | | | | | | |
|
| fund | | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Change in | 0 | -232 | -35 | -60 | 360 | 435 | 468
|
| share- | | | | | | |
|
| holders' | | | | | | |
|
| equity | | | | | | |
|
| 1-12 | | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Share- | 1,359 | 21 | -105 | -125 | 360 | 1,222 | 2,732
|
| holders' | | | | | | |
|
| equity | | | | | | |
|
| Dec 31, | | | | | | |
|
| 2008 | | | | | | |
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
GROUP COMMITMENTS AND CONTINGENT | | |
|
| LIABILITIES | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
(EUR 1,000) | Sept 30 | Sept 30 | Dec 31
|
| | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Business mortgage | 1,337 | 0 | 0
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Current lease liabilities | | |
|
-----------------------------------------------------------------------------
---
|
Liabilities maturing during one year | 146 | 339 | 284
|
-----------------------------------------------------------------------------
---
|
Liabilities maturing 2-5 years | 33 | 33 | 23
|
-----------------------------------------------------------------------------
---
|
Total | 179 | 372 | 307
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total commitments and contingent | 1,516 | 372 | 307
|
| liabilities | | |
|
-----------------------------------------------------------------------------
---
|
GROUP INTANGIBLE AND TANGIBLE ASSETS | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Change in intangible | | | |
|
| assets | | | |
|
-----------------------------------------------------------------------------
---
|
(EUR 1,000) | Sept 30 | Sept 30 | Dec 31 |
|
| | 2009 | 2008 | 2008 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Acquisition cost Jan 1 | 2,528 | 1,744 | 1,744 |
|
-----------------------------------------------------------------------------
---
|
Increase | 424 | 125 | 784 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Change in tangible assets | | | |
|
-----------------------------------------------------------------------------
---
|
(EUR 1,000) | Sept 30 | Sept 30 | Dec 31 |
|
| | 2009 | 2008 | 2008 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Acquisition cost Jan 1 | 1,099 | 1,045 | 1,045 |
|
-----------------------------------------------------------------------------
---
|
Increase | 27 | 36 | 54 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
CHANGE IN GROUP INTEREST BEARING LOANS | | |
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
(EUR 1,000) | Sept 30 | Sept 30 | Dec 31 |
|
| | 2009 | 2008 | 2008 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Interest bearing loans | 182 | 369 | 369 |
|
| Jan 1 | | | |
|
-----------------------------------------------------------------------------
---
|
Withdrawals | 1,131 | 0 | 0 |
|
-----------------------------------------------------------------------------
---
|
Repayments | -113 | -108 | -187 |
|
-----------------------------------------------------------------------------
---
|
Interest bearing | 1,200 | 261 | 182 |
|
| loans September 30/ | | | |
|
| December 31 | | | |
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
NET SALES BY BUSINESS SEGMENT (primary segments) | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
July 1 - September 30, 2009 | | | | |
|
-----------------------------------------------------------------------------
---
|
(EUR 1,000) | Software | Service | Software| Elimi- | Not | Group
|
| | Sales | & Solu-| Sales | nations | allo- |
Total |
| | Interna- | tions | Finland | | cated
| |
| | tional | | | |
|
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
INCOME STATEMENT INFORMATION | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net sales | 917 | 174 | 410 | 0 | 0 | 1,501
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Operating profit | 165 | -24 | 109 | 0 | -91 | 159
|
| of segment | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating profit | | | | | | 159
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Finance income and expenses | | | | -10 | -10
|
-----------------------------------------------------------------------------
---
|
Income tax expense | | | | | -33 | -33
|
-----------------------------------------------------------------------------
---
|
Profit for the | 165 | -24 | 109 | 0 | -134 | 116
|
| period | | | | | |
|
-----------------------------------------------------------------------------
---
|
Profit for the | | | | | | 116
|
| period | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Other information | | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 61 | 11 | 54 | 0 | 0 | 126
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
-------------------------------------------------------------------------
-------
|
January 1 - September 30, 2009 | | | | |
------------------------------------------------------------------------------
--
|
(EUR 1,000) | Software | Service | Software| Elimi- | Not | Group
|
| | Sales | & Solu-| Sales | nations | allo- |
Total |
| | Interna- | tions | Finland | | cated
| |
| | tional | | | |
|
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
INCOME STATEMENT INFORMATION | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net sales | 2,664 | 606 | 1 547 | 0 | 0 | 4,817
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Operating profit | 254 | -21 | 525 | | -272 | 486
|
| of segment | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating profit | | | | | | 486
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Finance income and expenses | | | | -9 | -9
|
-----------------------------------------------------------------------------
---
|
Income tax expense | | | | | -94 | -94
|
-----------------------------------------------------------------------------
---
|
Profit for the | 254 | -21 | 525 | 0 | -375 | 383
|
| period | | | | | |
|
-----------------------------------------------------------------------------
---
|
Profit for the | | | | | | 383
|
| period | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Other information | | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 175 | 31 | 129 | 0 | 0 | 335
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
July 1 - September 30, 2008 | | | | |
|
-----------------------------------------------------------------------------
---
|
(EUR 1,000) | Software | Service | Software| Elimi- | Not | Group
|
| | Sales | & Solu-| Sales | nations | allo- |
Total |
| | Interna- | tions | Finland | | cated
| |
| | tional | | | |
|
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
INCOME STATEMENT INFORMATION | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net sales | 1,009 | 184 | 292 | 0 | 0 | 1,485
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Operating profit | 122 | -34 | 37 | 0 | -62 | 63
|
| of segment | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating profit | | | | | | 63
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Finance income and expenses | | | | 12 | 12
|
-----------------------------------------------------------------------------
---
|
Income tax expense | | | | | -16 | -16
|
-----------------------------------------------------------------------------
---
|
Profit for the | 122 | -34 | 37 | 0 | -66 | 59
|
| period | | | | | |
|
-----------------------------------------------------------------------------
---
|
Profit for the | | | | | | 59
|
| period | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Other information | | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 47 | 9 | 14 | 0 | 0 | 69
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
-------------------------------------------------------------------------
-------
|
January 1 - September 30, 2008 | | | |
|
------------------------------------------------------------------------------
--
|
(EUR 1,000) | Software | Service | Software| Elimi- | Not | Group
|
| | Sales | & Solu-| Sales | nations | allo- |
Total |
| | Interna- | tions | Finland | | cated
| |
| | tional | | | |
|
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
INCOME STATEMENT INFORMATION | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net sales | 3,536 | 643 | 1,275 | 0 | 0 | 5,454
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Operating profit | 458 | 30 | 333 | | -343 | 478
|
| of segment | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating profit | | | | | | 478
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Finance income and expenses | | | | 15 | 15
|
-----------------------------------------------------------------------------
---
|
Income tax expense | | | | | -108 | -108
|
-----------------------------------------------------------------------------
---
|
Profit for the | 458 | 30 | 333 | 0 | -436 | 385
|
| period | | | | | |
|
-----------------------------------------------------------------------------
---
|
Profit for the | | | | | | 385
|
| period | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Other information | | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 136 | 24 | 48 | 0 | 0 | 208
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
CONSOLIDATED INCOME STATEMENT PER QUARTER | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
(EUR 1,000) | 1-3/ | 1-3/ | 4-6/ | 4-6/ | 7-9/ | 7-9/ | 10-12/
|
| | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net sales | 1,628 |1,754 | 1,688 | 2,215 | 1,501 | 1,485 | 2,058
|
-----------------------------------------------------------------------------
---
|
Other operating | 7 | 11 | 25 | 21 | 3 | 7 | 12
|
| income | | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Material and | 112 | 259 | 117 | 273 | 134 | 225 | 118
|
| services | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Employee benefits | 895 | 943 | 890 | 986 | 748 | 733 | 991
|
| expenses | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 114 | 70 | 95 | 69 | 126 | 69 | 93
|
-----------------------------------------------------------------------------
---
|
Other operating | 371 | 402 | 427 | 584 | 337 | 402 | 453
|
| expenses | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating profit | 143 | 91 | 184 | 324 | 159 | 63 | 415
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Financial income | 6 | -2 | -5 | 6 | -10 | 12 | 19
|
| and expenses | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Profit before tax | 149 | 89 | 179 | 330 | 149 | 75 | 434
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Income tax | -27 | -11 | -34 | -81 | -33 | -16 | 109
|
| expenses | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Profit for the | 122 | 78 | 145 | 249 | 116 | 59 | 543
|
| period | | | | | | |
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
GROUP KEY FIGURES | | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
(EUR 1,000) | 1-9/ | 1-9/ | 1-6/ | 1-6/ | 1-3/ | 1-3/ | 1-12/
|
| | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 |
2008
|
-----------------------------------------------------------------------------
---
|
Net sales | 4,817| 5,454 | 3,316 | 3,969 | 1,628 | 1,754 | 7,512
|
-----------------------------------------------------------------------------
---
|
Net sales growth. % | -11.7| 7.7 | -16.5 | 2.9 | -7.2 | 7.3 | 6.4
|
-----------------------------------------------------------------------------
---
|
Operating profit | 486 | 478 | 327 | 415 | 143 | 91 | 893
|
-----------------------------------------------------------------------------
---
|
% of net sales | 10.1 | 8.8 | 9.9 | 10.5 | 8.8 | 5.2 | 11.9
|
-----------------------------------------------------------------------------
---
|
Profit or loss | 477 | 493 | 328 | 419 | 149 | 90 | 927
|
| before tax | | | | | | |
|
-----------------------------------------------------------------------------
---
|
% of net sales | 9.9 | 9.0 | 9.9 | 10.6 | 9.2 | 5.1 | 12.3
|
-----------------------------------------------------------------------------
---
|
Profit for the | 383 | 385 | 267 | 327 | 122 | 78 | 928
|
| period | | | | | | |
|
-----------------------------------------------------------------------------
---
|
% of net sales | 8.0 | 7.1 | 8.1 | 8.2 | 7.5 | 4.5 | 12.4
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Return on equity,% | 18.9 | 22.8 | 20.2 | 29.2 | 18.6 | 14.8 | 37.1
|
-----------------------------------------------------------------------------
---
|
Return on | 19.7 | 25.8 | 19.8 | 32.8 | 21.4 | 14.7 | 33.6
|
| investment,% | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Interest bearing |1,200 | 261 | 1,313 | 285 | 182 | 369 | 182
|
| liabilities | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Cash and cash |2,042 | 1,530 | 2,105 | 1,397 | 1,163 | 1,077 | 1,716
|
| equivalents | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Net liabilities | -842 |-1,269 | -792 | -1,112 | -981 | -708 |-1,534
|
-----------------------------------------------------------------------------
---
|
Equity |2,684 | 2,244 | 2,568 | 2,214 | 2,495 | 1,968 | 2,732
|
-----------------------------------------------------------------------------
---
|
Gearing,% |-31.4 | -56.5 | -30.8 | -50.2 | -39.3 | -36.0 | -56.1
|
-----------------------------------------------------------------------------
---
|
Equity ratio,% | 50.9 | 55.1 | 51.1 | 53.8 | 66.2 | 53.1 | 54.9
|
-----------------------------------------------------------------------------
---
|
Total balance sheet |6,170 | 5,147 | 6,599 | 5,926 | 5,501 | 5,158 | 6,047
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Investments in | 649 | 161 | 559 | 91 | 96 | 37 | 837
|
| non-current assets | | | | | | |
|
-----------------------------------------------------------------------------
---
|
% of net sales | 13.5 | 3.0 | 16.9 | 2.3 | 5.9 | 2.1 | 11.1
|
-----------------------------------------------------------------------------
---
|
Research and | 884 | 1,142 | 575 | 770 | 308 | 384 | 1,540
|
| development | | | | | | |
|
| expenses | | | | | | |
|
-----------------------------------------------------------------------------
---
|
% of net sales | 18.4 | 20.9 | 17.3 | 19.4 | 18.9 | 21.9 | 20.5
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Average number of | 56 | 53 | 56 | 53 | 57 | 55 | 53
|
| personnel | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Personnel at the | 55 | 58 | 55 | 58 | 55 | 58 | 58
|
| beginning of period | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Personnel at the | 59 | 54 | 56 | 54 | 57 | 52 | 55
|
| end of period | | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Earnings per share, | 0.03 | 0.03 | 0.02 | 0.03 | 0.01 | 0.01 | 0.08
|
| € | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Earnings per share | 0.03 | 0.03 | 0.02 | 0.03 | 0.01 | 0.01 | 0.07
|
| (diluted), € | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Equity per share. € | 0.22 | 0.18 | 0.21 | 0.18 | 0.20 | 0.16 | 0.22
|
-----------------------------------------------------------------------------
---
The
Company has re-defined the booking principles of deferred revenues as of
July
1, 2009. The Company has also revised accordingly the Equity ratio
figures for previous periods.
----------------------------------------------------------------------------
----
|
MAJOR SHAREHOLDERS 30.9.2009 | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
| Number of | Percentage of
|
| | shares | shares
and |
| | |
votes
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Ulkomarkkinat Oy | 1,600,000 | 12.86 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Jouko Pelkonen | 419,000 | 3.37 %
|
-----------------------------------------------------------------------------
---
|
Pohjolan Rahoitus Oy | 734,150 | 5.90 %
|
-----------------------------------------------------------------------------
---
|
Electrosale Oy | 200,000 | 1.61 %
|
-----------------------------------------------------------------------------
---
|
Total | 1,353,150 | 10.87 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Vesa-Pekka Leskinen | 851,400 | 6.84 %
|
-----------------------------------------------------------------------------
---
|
Kauppamainos Oy | 475,170 | 3.82 %
|
-----------------------------------------------------------------------------
---
|
Total | 1,326,570 | 10.66 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Alesco S.A | 1,300,000 | 10.45 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Autocarrera Oy Ab | 1,245,817 | 10.01 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Kari Junkkonen | 512,016 | 4.11 %
|
-----------------------------------------------------------------------------
---
|
Fortel Invest Oy | 425,326 | 3.42 %
|
-----------------------------------------------------------------------------
---
|
SR Fides New Media | 341,800 | 2.75 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Päivi Marttila | 292,972 | 2.35 %
|
-----------------------------------------------------------------------------
---
|
Edina Oy | 33,900 | 0.27 %
|
-----------------------------------------------------------------------------
---
|
Total | 326,872 | 2.63 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Asko Piekkola | 316,438 | 2.54 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Jari Jaakkola | 220,000 | 1.77 %
|
-----------------------------------------------------------------------------
---
|
Value FM Oy | 30,000 | 0.24 %
|
-----------------------------------------------------------------------------
---
|
Total | 250,000 | 2.01 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Esa Pääkkönen | 246,054 | 1.98 %
|
-----------------------------------------------------------------------------
---
|
Veli-Mikko Leskinen | 232,530 | 1.87 %
|
-----------------------------------------------------------------------------
---
|
Matti Kanninen | 197,601 | 1.59 %
|
-----------------------------------------------------------------------------
---
|
Tony Virtanen | 172,112 | 1.38 %
|
-----------------------------------------------------------------------------
---
|
Teemu Lehto | 153,304 | 1.23 %
|
-----------------------------------------------------------------------------
---
|
Janne Laakso | 140,287 | 1.13 %
|
-----------------------------------------------------------------------------
---
|
Kai-Erik Becker | 140,000 | 1.12 %
|
-----------------------------------------------------------------------------
---
|
Other shareholders | 2,164,986 | 17.40 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total | 12,444,863 | 100.0 %
|
-----------------------------------------------------------------------------
---
CALCULATION
OF KEY INDICATORS:
Return
on equity (ROE), % (counted on yearly level):
Profit for the period x 100
________________________________________________
Shareholders' equity + minority interest (average)
Return on capital employed (ROCE), % (counted on yearly level):
Profit before taxes + interest and other financial expenses x 100
__________________________________________________________________
Balance sheet total - non-interest bearing liabilities (average)
Equity ratio, %:
Shareholders' equity x 100
______________________________________
Balance sheet total - deferred revenue
Gearing, %:
Interest bearing liabilities - cash and cash
equivalents x 100
______________________________________________________________
Shareholders' equity
Earnings per share., Euro:
Profit for the period attributable to
parent company shareholders
_________________________________________________________________
Adjusted number of shares over the financial year (average)
Equity per share, Euro:
Profit for the period attributable to parent company shareholders
_________________________________________________________________
Adjusted number of shares at the end of the financial period
Dividend per share, Euro:
Total dividend paid
___________________________________________________________
Adjusted number of shares at the end of the financial period
Market value of share capital:
(Number of shares - own shares) x share price at the end of the
financial
period
Turnover of shares. % of share capital:
Turnover (number of shares) x 100
_________________________________
Number of shares issued (average)
Quick ratio:
Current assets - inventories
______________________________________
Current liabilities - deferred
revenue
|