QPR SOFTWARE PLC STOCK EXCHANGE RELEASE 6 AUGUST, 2010 9.15 AM
INTERIM REPORT 1 JANUARY - 30 JUNE, 2010
QPR SOFTWARE'S NET SALES ROSE TO EUR 3,443 THOUSAND,
OPERATING MARGIN WAS 9.2%, EARNINGS PER SHARE EUR 0.02
Summary
April-June 2010:
- Net sales EUR 1,773 thousand (April-June 2009: 1,688)
- Operating profit EUR 171 thousand (184)
- Operating margin 9.6% of net sales (10.9)
- Cash flow from operations rose to EUR 139 thousand (-8)
- Earnings per share EUR 0.01 (0.01).
January-June 2010:
- Net sales EUR 3,443 thousand (January-June 2009:
3,316)
- Operating profit EUR 316 thousand (327)
- Operating margin 9.2% of net sales (9.9)
- Cash flow from operations rose to EUR 488
thousand (243)
- Earnings per share EUR 0.02 (0.02).
QPR Software's net sales increased by
5.0% in April-June 2010 compared to the
same period in the previous year
and were EUR 1,773 thousand (4-6/2009: 1,688).
Professional services net
sales increased substantially (+64.7%) from the last
year thanks to new
packaged service products and improved general economic
situation in
Finland. However, software net sales decreased 3.9% from the
previous year.
This was due to the transition to software subscription sales in
the Finnish
home market. As a result, the net sales from domestic software
sales decreased
markedly (-26.0%). The company estimates that the transition to
subscription
sales will, however, have a positive impact on net sales in
Finland in the
longer term.
Operating profit in April-June remained somewhat lower compared to the
previous
year and was EUR 171 thousand (184). This was attributable to
outlays made in
commencing direct sales in the Russian market and higher
personnel expenses than
last year.
The outlook remains unchanged. QPR Software
estimates the Group´s net sales and
operating profit to grow in 2010 compared
to the previous year (net sales in
2009: EUR 6,618 thousand; operating
profit: EUR 705 thousand). Maintenance,
subscription and professional services
net sales are expected to show clear
improvement in the second half of 2010
compared to the same period in 2009.
The
interim report has been prepared in accordance with the IAS 34 standard,
“Interim reports”. The information presented in this interim report is
unaudited.
KEY FIGURES
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|
(EUR 1,000) | Apr- | Apr- |Change,| Jan- | Jan- | Change,| Jan-
|
| | June, | June,| % | June, | June, | % |
Dec, |
| | 2010 | 2009 | | 2010 | 2009 | |
2009
|
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---
|
Net sales | 1,773 |1,688 | 5.0 | 3,443 | 3,316 | 3.8 | 6,618
|
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|
Operating profit | 171 | 184 | -7.1 | 316 | 327 | -3.4 | 705
|
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---
|
% of net sales | 9.6 | 10.9 | | 9.2 | 9.9 | | 10.6
|
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---
|
Profit before tax | 126 | 179 | -29.6 | 246 | 328 | -25.0 | 668
|
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|
Profit for the | 93 | 145 | -35.9 | 188 | 267 | -29.6 | 517
|
| period | | | | | | |
|
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|
% of net sales | 5.2 | 8.6 | | 5.5 | 8.1 | | 7.8
|
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|
Earnings per | | | | 0.02 | 0.02 | | 0.04
|
| share, EUR | | | | | | |
|
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|
EPS (diluted), | | | | 0.02 | 0.02 | | 0.04
|
| EUR | | | | | | |
|
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|
Equity per share, | | | | 0.20 | 0.21 | | 0.21
|
| EUR | | | | | | |
|
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---
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|
Cash flow from | | | | 488 | 243 | | 953
|
| operating | | | | | | |
|
| activities | | | | | | |
|
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|
Cash and cash | | | | 1,742 | 2,105 | | 1,929
|
| equivalents | | | | | | |
|
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|
Net liabilities | | | | -758 | -792 | | -831
|
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|
Gearing, % | | | | -30.7 | -30.8 | | -32.3
|
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|
Equity ratio, % | | | | 42.2 | 51.1 | | 42.5
|
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|
Return on equity,%| | | | 14.9 | 20.2 | | 19.5
|
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|
Return on | | | | 15.2 | 19.8 | | 21.4
|
| investment, % | | | | | | |
|
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APRIL-JUNE
2010 COMPARED WITH APRIL-JUNE 2009
THE
GROUP
Group net sales by geography, (EUR 1,000):
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|
| Apr- | Share, | Apr- | Share, | Change, |
|
| | June, | % | June, | % | % |
|
| | 2010 | | 2009 | | |
|
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|
Domestic | 730 | 41.2 | 768 | 45.5 | -4.9 |
|
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|
International | 1,043 | 58.8 | 920 | 54.5 | 13.4 |
|
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|
Total | 1,773 | 100.0 | 1,688 | 100.0 | 5.0 |
|
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QPR
Software Group´s net sales in the second quarter of 2010 were EUR 1,773
thousand (1,688), representing a growth of 5.0% compared to the same period
in
2009. International net sales increased 13.4%, but the domestic net sales
decreased 4.9%. The rapid growth of professional services net sales had
a
positive impact on domestic net sales, but the transition to software
subscription sales in the home market had a clearly lowering effect
to it. The
company estimates that the transition to subscription sales will,
however, have
a positive impact on net sales in Finland in the longer term.
The estimated revenue to be recognized for current
subscription agreements in
the next twelve months is EUR 267 thousand,
assuming similar churn rate as in
maintenance service contracts. QPR
reports software subscription net sales as
part of maintenance services. In
subscription based model, net sales are
accumulated in a slower manner
than in license sales, but the share of recurring
revenue is significantly
larger.
International net
sales improved 13.4%, which was mainly attributable to
increase in
maintenance services net sales and professional services net sales
linked to
software implementations.
Group
net sales divided into software licenses, maintenance services and
professional services as follows, (EUR 1,000):
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|
| Apr- | Share, | Apr- | Share, | Change, |
|
| | June, | % | June, | % | % |
|
| | 2010 | | 2009 | | |
|
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---
|
Software | 484 | 27.3 | 628 | 37.2 | -22.9 |
|
| licenses | | | | | |
|
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---
|
Maintenance | 930 | 52.5 | 842 | 49.9 | 10.5 |
|
| services | | | | | |
|
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---
|
Professional | 359 | 20.2 | 218 | 12.9 | 64.7 |
|
| services | | | | | |
|
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---
|
Total | 1,773 | 100.0 | 1,688 | 100.0 | 5.0 |
|
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---
Software
license sales decreased compared to last year and were EUR 484
thousand (628).The decrease was mainly due to transition to subscription
sales
in Finland. In addition, software sales development in Russia was not
satisfactory as customers postponed their software acquisition
decisions.
Maintenance services net sales (including software
subscription sales) were EUR
930 thousand (842). The increase is mainly
attributable to the introduction of
software subscription sales in the
second half of 2009.
Professional services net
sales rose 64.7% to EUR 359 thousand (218). Net sales
growth was accelerated
by the new packaged service products offered by the
company and the
improved economic situation. Also the launch of direct sales in
Russia had a
positive impact on professional services sales.
Operating profit in April-June was EUR 171 thousand (184). Costs increased
from
previous year by 5.4%, which was mainly due to outlays made in launching
direct
sales operations in Russia and increase in personnel costs. Operating
margin was
9.6% (10.9) of net sales.
Depreciation and amortization grew to EUR 151 thousand (95).
This was mainly
attributable to the acquisition of the Russian businesses
in the end of 2009 and
amortization of R&D expenses. Net profit before tax was
EUR 126 thousand (179),
and after tax EUR 93 thousand (145).
Earnings per share (diluted) were EUR 0.01
(0.01).
BUSINESS SEGMENTS
Group net sales by business
segments, (EUR 1,000):
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|
| Apr- | Share, | Apr- | Share, | Change, |
|
| | June, | % | June, | % | % |
|
| | 2010 | | 2009 | | |
|
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|
Software Sales | 1,017 | 57.4 | 901 | 53.4 | 12.9 |
|
| International | | | | | |
|
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|
Software Sales Finland | 427 | 24.1 | 577 | 34.2 | -26.0 |
|
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|
Service and Solutions | 329 | 18.5 | 210 | 12.4 | 56.7 |
|
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|
Total | 1,773 | 100.0 | 1,688 | 100.0 | 5.0 |
|
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---
Group
operating profit by business segments, (EUR 1,000):
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|
| Apr- | Share,| Apr- | Share, | Change, |
|
| | June,| % | June, | % | % |
|
| | 2010 | | 2009 | | |
|
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---
|
Software Sales | 163 | 95.3 | 66 | 35.9 | 147.0 |
|
| International | | | | | |
|
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|
Software Sales Finland | 49 | 28.7 | 218 | 118.5 | -77.5 |
|
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|
Service and Solutions | 41 | 24.0 | -13 | -7.1 | 415.4 |
|
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|
Not allocated | -82 | -48.0 | -87 | -47.3 | 5.7 |
|
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---
|
Total | 171 | 100.0 | 184 | 100.0 | -7.1 |
|
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---
Software
Sales International
Software Sales International business segment´s net sales in April - June
rose 12.9% and were EUR 1,017 thousand (901). The growth is attributable
to
higher international professional and maintenance services sales.
Professional
services sales to Russia increased, but software sales
development was
unsatisfactory as customers postponed their software
acquisition decisions. QPR
resellers' software net sales increased somewhat.
The segment's operating profit
increased markedly to EUR 163 thousand (66).
QPR delivered software, among others, in
Abu Dhabi to Ernst & Young, in Belgium
to Umicore, in Denmark to Danish
Railways (DSB), in Estonia to Elisa Eesti AS,
in France to Renault Dacia
Automobile, in Kazakhstan to Kazzinc, in Russia to
TNK-Nyagan, in South
Africa to PetroSA and in the USA to Aramark.
Software Sales
Finland
Software
Sales Finland business segment´s net sales in April - June
decreased 26% due to decline in software license sales and were EUR 427
thousand
(577). The decline is attributable to the Company´s transition to
subscription
software sales in Finland. Software Sales Finland, however,
acquired clearly
more new customers than in previous year, and the Company
sees good potential
for add-on sales to these new customers. Furthermore,
the Company believes that
the subscription based business model enables
significant expansion in its
potential customer base. Operating profit
declined, due to decreased net sales,
to EUR 49 thousand (218).
In Finland QPR delivered software,
among others, to Aalto University, Cargotec
Corporation, Enfo Oyj, The
Finnish Medicines Agency Fimea, Fira Oy, Lindorff Oy,
HAMK University of
Applied Sciences, Laurea University of Applied Sciences, Oy
Transmeri Ab,
Peab Oy, SRV Asunnot Oy and to the KuntaIT unit of the Finnish
ministry of
Finance.
Service
and Solutions
Service and Solutions business segment´s net sales and operating profit in
April - June 2010 increased significantly due to good demand for service
products and improved economic situation. Especially demand for Process
management framework -service product increased markedly during the
period.
Segment's net sales rose 56.7% and were EUR 329 thousand (210).
Operating profit
improved to EUR 41 thousand (-13) due to improved net sales.
JANUARY-JUNE 2010 COMPARED WITH JANUARY-JUNE 2009
THE GROUP
QPR Software Group´s net sales in the January -
June 2010 were EUR 3,443
thousand (3,316)
The growth was attributable to good
demand for service products in the domestic
market and increased professional
services and maintenance services sales in the
international market.
International net sales in January - June were EUR 2,003
thousand (1,790)
Domestic net
sales decreased and were EUR 1,440 thousand (1,526). Change from
the
previous year is attributable to transition to subscription based software
pricing.
Group net sales by geography, (EUR 1,000):
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|
| Jan- | Share, | Jan- | Share, | Change, | Jan-
|
| | June, | % | June, | % | % |
Dec, |
| | 2010 | | 2009 | | |
2009
|
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|
Domestic | 1,440 | 41.8 | 1,526 | 46.0 | -5.6 | 2,783
|
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|
International | 2,003 | 58.2 | 1,790 | 54.0 | 11.9 | 3,835
|
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---
|
Total | 3,443 | 100.0 | 3,316 | 100.0 | 3.8 | 6,618
|
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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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----
|
| Jan- | Share, | Jan- | Share, | Change, | Jan-
|
| | June, | % | June, | % | % |
Dec, |
| | 2010 | | 2009 | | |
2009
|
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---
|
Software | 969 | 28.1 | 1,157 | 34.9 | -16.2 | 2,394
|
| licenses | | | | | |
|
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---
|
Maintenance | 1,808 | 52.5 | 1,710 | 51.6 | 5.7 | 3,338
|
| services | | | | | |
|
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---
|
Professional | 666 | 19.4 | 449 | 13.5 | 48.3 | 886
|
| services | | | | | |
|
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---
|
Total | 3,443 | 100.0 | 3,316 | 100.0 | 3.8 | 6,618
|
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Maintenance
net sales increased mainly due to improved subscription software
sales to
EUR 1,808 thousand (1,710).
Professional services net sales were EUR 666 thousand (499). Its share
of Group's net sales increased and was 19.4% (13.5).
Operating profit
in January - June decreased somewhat due to increased
operational
costs and was EUR 316 thousand (327). Accordingly, the share of
operating
profit decreased to 9.2% from net sales (9.9). Depreciation and
amortization grew to EUR 280 thousand (209) mainly due to the acquisition of
Russian business operations in the end of 2009 and amortization of
R&D
expenses.
Net profit after tax in January-June was EUR 188 thousand
(267), which
corresponded to 5.5% of net sales (8.1).
Earnings per share (diluted) were EUR 0.02 (0.02).
BUSINESS SEGMENTS
Group net sales by business segments, (EUR
1,000):
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|
| Jan- | Share,| Jan- | Share, | Change, | Jan-
|
| | June, | % | June, | % | % |
Dec, |
| | 2010 | | 2009 | | |
2009
|
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---
|
Software Sales | 1,972 | 57.3 | 1,747 | 52.7 | 12.9 | 3,728
|
| International | | | | | |
|
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|
Software Sales Finland | 851 | 24.7 | 1,137 | 34.3 | -25.2 | 2,042
|
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|
Service and Solutions | 620 | 18.0 | 432 | 13.0 | 43.5 | 848
|
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|
Total | 3,443 | 100.0 | 3,316 | 100.0 | 3.8 | 6,618
|
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Group
operating profit by business segments, (EUR 1,000):
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----
|
| Jan- | Share, | Jan-| Share, | Change, | Jan-
|
| | June, | % | June, | % | % |
Dec, |
| | 2010 | | 2009 | | |
2009
|
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---
|
Software Sales | 312 | 98.7 | 88 | 26.9 | 254.5 | 503
|
| International | | | | | |
|
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---
|
Software Sales Finland | 83 | 26.3 | 416 | 127.2 | -80.0 | 668
|
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|
Service and Solutions | 82 | 25.9 | 4 | 1.2 | 1,950.0 | -67
|
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|
Not allocated | -161 | -50.9 | -181 | -55.3 | 11.0 | -400
|
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---
|
Total | 316 | 100.0 | 327 | 100.0 | -3.4 | 705
|
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Software
Sales International
Software Sales International business segment´s net sales in January - June
increased due to improved software sales and implementation related
professional
services sales to EUR 1,972 thousand (1,747). Accordingly,
operating profit
increased to EUR 312 thousand (88).
Software Sales Finland
Software Sales Finland -business segment´s net
sales in January - June decreased
to EUR 851 thousand (1,137) due to the
Company´s transition to subscription
software sales. Operating profit
decreased, due to lower net sales, to EUR 83
thousand (416).
Service and Solutions
Service and Solutions
business segment´s net sales and operating profit in
January - June 2010
increased markedly due to good demand for packaged service
products and
improved economic situation. Segment's net sales improved to EUR
620
thousand (432) and operating profit to EUR 82 thousand (4).
FINANCE AND INVESTMENTS
The value of total assets at the end of June 2010 was EUR 6,917
thousand
(6,599).
Cash flow from operating activities was EUR 488 thousand
(243). The main reason
for increase in cash flow is change in working capital
compared to respective
period in 2009. Cash and cash equivalents at the end
of the review period were
EUR 1,742 thousand (2,105). A dividend of EUR 244
thousand (368) and a
distribution of EUR 122 thousand from the
invested non-restricted equity fund
(0) were paid during the reporting
period.
The Group´s investments in the
review period totaled to EUR 169 thousand (397),
which is mainly attributable
to R&D investments. No business acquisitions took
place during the reporting
period.
The Group´s interest
bearing liabilities decreased and were EUR 984 thousand
(1,313) at the end
of the reporting period. The gearing ratio was -30.7%
(-30.8). Return
on capital employed was 15.2% (19.8).
Short-term
liabilities include deferred revenue in total of EUR 1,080 thousand
(1,049).
At the end of reporting period, quick ratio was 2.14 (3.69).
At the end of
the reporting period, the Group equity stood at EUR 2,457 thousand
(2,568),
and equity to assets ratio was 42.2% (51.1). The decrease in equity to
assets
ratio is attributable to the Russian business acquisition in the end of
2009
and acquisition of own shares. Return on equity was 14.9% (20.2).
In the Group´s balance sheet as of 30 June, 2010, the remaining amount of
deferred tax is EUR 353 thousand (494). The full amount is in the books
of the
parent company.
PERSONNEL
At the end of the June 2010, the Group employed a total of 66
persons (56). Out
of them nine were employed by QPR's Russian subsidiary, OOO
QPR Software, in
Moscow. Average number of personnel in the review period
was 63 (56).
PRODUCT DEVELOPMENT
The amount of R&D expenses in the review period
were EUR 697 thousand (575),
representing 20.2% of net sales (17.3%).
During the review period, R&D expenses have
been activated as assets for a total
amount of EUR 97 thousand (48). The
depreciation period of capitalized R&D
expenses is 4 years. The
depreciation of activated R&D expense was EUR 82
thousand (77).
Product
development employed 17 people (17) at the end of the review period,
corresponding to 26% of the total personnel (30%).
The core know-how of product development remains centralized within the
own
organization. Long-term co-operation continued with established
subcontractors.
A pilot project with new a subcontractor was also carried out
during the review
period. QPR Software is a Microsoft Gold Certified Partner
since 2007.
During the review period, Research & Development
activities focused on the
development of a new version of the QPR
product family, QPR 8.2, planned to be
released in the first half of 2011 as
well as developing concepts and prototypes
for new software products
broadening the QPR offering. In addition development
of a new tool for
automatic process analysis, QPR ProcessAnalyzer, was started.
QPR offers
an, easy-to-use, ready-to-run software that combines enterprise
architecture, process modeling and analysis (QPR ProcessGuide), 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 (26).
COMPANY SHARES AND TRADING IN COMPANY SHARES
The Company's share capital on 30 June, 2010 was EUR
1,359,089.93 divided into
12,444,863 shares. QPR Software Plc has one share
class. The book counter value
is EUR 0.11. Each share has one vote and equal
right to dividend. The shares are
incorporated to the book-entry system
maintained by Euroclear Finland Oy.
At the end of review period, the
Company had a total of 621 shareholders (562).
In January — June 2010 trading
in company shares amounted to EUR 471 thousand
(400), i.e. an average of
EUR 3,829 per trading day (3,365). Trading in share
was in total 507,051
shares (487,196), giving an average of 4,122 shares per
trading day
(3,961). Turnover in shares corresponds to 4.1% of the total shares
(3.9) and
the average price was EUR 0.93 per share (0.85). The highest closing
price
during the period was EUR 0.99 (0.98) and the lowest EUR 0.89 (0.76).
The total market value of the company shares was EUR 10,828 thousand
(11,106)
with closing price of EUR 0.89 (0.91) at 30 June, 2010.
OWN SHARES
The Company acquired 20,249 own shares in January - June
2010. At the end of
June the Company held 278,249 of its own shares with a
total book counter value
of EUR 30,607.39 and a total purchase price of EUR
236,391.48. Own shares held
by the company represented 2.24% of the
Company´s capital stock (1.93).
The Board of Directors has been
granted by the Annual Shareholders Meeting of
March 18, 2010 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 IN THE REPORTING PERIOD
Subsidiary OOO QPR Software started its operations in Russian
Federation and CIS
countries as of 2 March, 2010. The company is a fully owned
subsidiary of QPR
Software's subsidiary QPR CIS Oy. OOO QPR Software is
domiciled and located in
Moscow and employed nine persons at the end of
June.
The distribution of EMT responsibilities
were reorganized as of 18 February
2010 when EMT's secretary Jyrki Karasvirta
received responsibility for
Company's marketing and communications as an EMT
member and Teemu Lehto for
business development.
EVENTS AFTER THE REPORTING PERIOD
The Executive Management Team of
QPR Software Plc consists of the following
persons as of 1 July, 2010:
Chief Executive Officer Jari Jaakkola (chairman),
Vice President Software
Sales International Antti Ainasoja, Vice President
Business Operations
Finland Matti Erkheikki, Vice President Marketing and
Communications
Jyrki Karasvirta, Vice President Business Development Teemu
Lehto, Chief
Financial Officer Päivi Martti (previously Vahvelainen) and Vice
President
Products and Technology Tony Virtanen.
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. 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 18 March, 2010 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 1 January - 31
December, 2009 and released the Board of Directors and the Managing Director
from liability.
The Annual Shareholders' Meeting approved the Board's proposals that a
per-share
dividend of EUR 0.02, a total of EUR 243,737.26 is paid and a
distribution of
EUR 0.01 per share, totaling in EUR 121,868.63 is made to
the shareholders from
the invested non-restricted equity fund. The payments
were made to shareholders
who were entered in the company's shareholder
register, maintained by Euroclear
Finland Oy, on the record date of 23 March,
2010. The date of both payments was
6 April, 2010.
The Annual Shareholders' Meeting
resolved that the Board of Directors consists
of five (5) ordinary members.
The Annual Shareholders' Meeting elected the
following members to the
Board of Directors: Aino-Maija Fagerlund, Jyrki Kontio,
Antti Laine,
Vesa-Pekka Leskinen and Asko Piekkola.
In its
first meeting immediately following the Annual Shareholders' Meeting,
the
Board of Directors elected Vesa-Pekka Leskinen as Chairman of the Board.
The
Board of Directors noted that both new members, Aino-Maija Fagerlund
and Antti
Laine, are independent from the Company and its main shareholders.
KPMG Oy Ab, Authorized Public Accountants, continues as QPR
Software Plc's
Auditors.
The Annual Shareholders' Meeting decided to keep the
Board of Directors'
emolument the same as in 2009. A yearly emolument
of EUR 25,230 will be 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
consideration.
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 550,000 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 on
the following conditions. 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.
The conditions of
all authorizations of the Board are available in their
entirety on the
investors section of the company's web site, www.qpr.com, and on
the stock
exchange release, published by the company on 18 March, 2010.
CORPORATE GOVERNANCE
QPR Software Plc complies with the NASDAQ OMX Helsinki Ltd's Guidelines
for
Insiders issued on 9 October, 2009 and the Corporate Governance Code
effective
as of 1 January, 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 with 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, net sales 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.
Financial risks include reasonable credit risk
concerning individual business
partners, which 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
a customary and reasonable level.
External business
environment changes, such as economic fluctuations, are
included in the
Company´s market and customer risks. The general economic
uncertainty
or continuation of negative financial 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 conducted business in several countries (in 53 during
January-June
2010), 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 2009, page 25 onwards (www.qpr.com/annual-reports.html).
FUTURE OUTLOOK
Market forecasts published in the beginning of 2010
estimate that value of
global software sales will increase 5-7% and
global professional services sales
will increase 4-5% in 2010 compared to
2009.
Based on current software market
growth forecasts, QPR´s own forecasts and
resellers' forecasts, QPR
Software estimates net sales and operating profit to
grow in 2010 compared
to 2009 (net sales in 2009: EUR 6,618 thousand; operating
profit: EUR 705
thousand). 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 IN 2010
The Interim Report from January-September 2010 is published on
Friday, 22
October, 2010.
QPR SOFTWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0)40 5026 397
www.qpr.com
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
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.
----------------------------------------------------------------------------
----
|
CONSOLIDATED INCOME STATEMENT
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
(EUR 1,000) | Apr- | Apr- | Jan- | Jan- | Jan-
|
| | June, | June, | June, | June, |
Dec, |
| | 2010 | 2009 | 2010 | 2009 |
2009
|
-----------------------------------------------------------------------------
---
|
Net sales | 1,773 | 1,688 | 3,443 | 3,316 | 6,618
|
-----------------------------------------------------------------------------
---
|
Other operating income | 3 | 25 | 37 | 32 | 35
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Material and services | 63 | 117 | 110 | 229 | 451
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Employee benefits | 1,040 | 890 | 2,049 | 1,785 | 3,524
|
| expenses | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 151 | 95 | 280 | 209 | 466
|
-----------------------------------------------------------------------------
---
|
Other operating expenses | 351 | 427 | 726 | 798 | 1,508
|
-----------------------------------------------------------------------------
---
|
Operating profit | 171 | 184 | 316 | 327 | 705
|
-----------------------------------------------------------------------------
---
|
Financial income and | -45 | -5 | -69 | 1 | -37
|
| expenses | | | | |
|
-----------------------------------------------------------------------------
---
|
Profit before tax | 126 | 179 | 246 | 328 | 668
|
-----------------------------------------------------------------------------
---
|
Income tax expense | -33 | -34 | -58 | -61 | -150
|
-----------------------------------------------------------------------------
---
|
Profit for the period | 93 | 145 | 188 | 267 | 517
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Profit for the period attributable to:
|
-----------------------------------------------------------------------------
---
|
Equity holders of the | | | | |
|
| parent company | 100 | 145 | 195 | 267 |
517
|
-----------------------------------------------------------------------------
---
|
Non-controlling interest | -7 | 0 | -7 | 0 | 0
|
-----------------------------------------------------------------------------
---
|
| 93 | 145 | 188 | 267 | 517
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Earnings per share | 0.01 | 0.01 | 0.02 | 0.02 | 0.04
|
| (diluted), EUR | | | | |
|
-----------------------------------------------------------------------------
---
|
Earnings per share, EUR | 0.01 | 0.01 | 0.02 | 0.02 | 0.04
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Consolidated Statement of comprehensive income
|
-----------------------------------------------------------------------------
---
|
Profit for the period | 93 | 145 | 188 | 267 | 517
|
-----------------------------------------------------------------------------
---
|
Exchange differences on | 45 | -10 | 93 | -5 | 11
|
| translating foreign | | | | |
|
| operations | | | | |
|
-----------------------------------------------------------------------------
---
|
Income tax relating to | - | - | - | - | -
|
| components of other | | | | |
|
| comprehensive income | | | | |
|
-----------------------------------------------------------------------------
---
|
Total comprehensive | 138 | 135 | 281 | 262 | 528
|
| income | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total comprehensive income attributable to:
|
-----------------------------------------------------------------------------
---
|
Equity holders of the | | | | |
|
| parent company | 145 | 135 | 288 | 262 |
528
|
-----------------------------------------------------------------------------
---
|
Non-controlling interest | -7 | 0 | -7 | 0 | 0
|
-----------------------------------------------------------------------------
---
|
| 138 | 135 | 281 | 262 | 528
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
CONSOLIDATED BALANCE SHEET
|
-----------------------------------------------------------------------------
---
|
(EUR 1,000) | June 30, | June 30, | Dec 31, |
|
| | 2010 | 2009 | 2009 |
|
-----------------------------------------------------------------------------
---
|
Assets | | | |
|
-----------------------------------------------------------------------------
---
|
Non-current assets | | | |
|
-----------------------------------------------------------------------------
---
|
Tangible assets | 117 | 188 | 145 |
|
-----------------------------------------------------------------------------
---
|
Other intangible assets | 1,637 | 1,305 | 1,720 |
|
-----------------------------------------------------------------------------
---
|
Other investments | 5 | 5 | 5 |
|
-----------------------------------------------------------------------------
---
|
Deferred tax assets | 353 | 494 | 413 |
|
-----------------------------------------------------------------------------
---
|
Total non-current assets | 2,112 | 1,992 | 2,283 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Current assets | | | |
|
-----------------------------------------------------------------------------
---
|
Trade and other | 3,063 | 2,502 | 2,662 |
|
| receivables | | | |
|
-----------------------------------------------------------------------------
---
|
Cash and cash | 1,742 | 2,105 | 1,929 |
|
| equivalents | | | |
|
-----------------------------------------------------------------------------
---
|
Total current assets | 4,805 | 4,607 | 4,591 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total assets | 6,917 | 6,599 | 6,874 |
|
-----------------------------------------------------------------------------
---
|
Equity and liabilities | June 30, | June 30, | Dec 31, |
|
| | 2010 | 2009 | 2009 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Equity | | | |
|
-----------------------------------------------------------------------------
---
|
Share capital | 1,359 | 1,359 | 1,359 |
|
-----------------------------------------------------------------------------
---
|
Reserve fund | 21 | 21 | 21 |
|
-----------------------------------------------------------------------------
---
|
Invested non-restricted | 5 | 371 | 127 |
|
| equity fund | | | |
|
-----------------------------------------------------------------------------
---
|
Translation differences | -1 | -110 | -94 |
|
-----------------------------------------------------------------------------
---
|
Treasure shares | -236 | -194 | -209 |
|
-----------------------------------------------------------------------------
---
|
Retained earnings | 1,315 | 1,121 | 1,371 |
|
-----------------------------------------------------------------------------
---
|
Equity attributable to | 2,463 | 2,568 | 2,575 |
|
| shareholders of the | | | |
|
| parent company | | | |
|
-----------------------------------------------------------------------------
---
|
Non-controlling interest | -6 | 0 | 0 |
|
-----------------------------------------------------------------------------
---
|
Total equity | 2,457 | 2,568 | 2,575 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Non-current liabilities | | | |
|
-----------------------------------------------------------------------------
---
|
Interest-bearing | 679 | 984 | 793 |
|
| liabilities | | | |
|
-----------------------------------------------------------------------------
---
|
Non-Interest-bearing | 460 | 0 | 460 |
|
| liabilities | | | |
|
-----------------------------------------------------------------------------
---
|
Total non-current | 1,139 | 984 | 1,253 |
|
| liabilities | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Current liabilities | | | |
|
-----------------------------------------------------------------------------
---
|
Accounts payables and | 3,016 | 2,718 | 2,741 |
|
| other payables | | | |
|
-----------------------------------------------------------------------------
---
|
Interest-bearing | 305 | 329 | 305 |
|
| liabilities | | | |
|
-----------------------------------------------------------------------------
---
|
Total current | 3,321 | 3,047 | 3,046 |
|
| liabilities | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total liabilities | 4,460 | 4,031 | 4,299 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total equity and | 6,917 | 6,599 | 6,874 |
|
| liabilities | | | |
|
-----------------------------------------------------------------------------
---
|
CONSOLIDATED CASH FLOW STATEMENT | | |
|
-----------------------------------------------------------------------------
---
|
(EUR 1,000) | Jan - June, | Jan - June, | Jan - Dec,
|
| | 2010 | 2009 |
2009
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Cash flow from operating | | |
|
| activities | | |
|
-----------------------------------------------------------------------------
---
|
Profit for the period | 188 | 267 | 517
|
-----------------------------------------------------------------------------
---
|
Adjustments for the profit | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 280 | 209 | 466
|
-----------------------------------------------------------------------------
---
|
Non-cash transactions | 85 | -2 | 11
|
-----------------------------------------------------------------------------
---
|
Changes in working capital | | |
|
-----------------------------------------------------------------------------
---
|
Changes in trade and other | -341 | 19 | -53
|
| receivables | | |
|
-----------------------------------------------------------------------------
---
|
Changes in accounts payable and | 306 | -253 | 61
|
| other liabilities | | |
|
-----------------------------------------------------------------------------
---
|
Interest expense and other | -21 | -5 | -31
|
| financial expenses | | |
|
-----------------------------------------------------------------------------
---
|
Interest income and other | 4 | 8 | 20
|
| financial income | | |
|
-----------------------------------------------------------------------------
---
|
Income taxes paid | -13 | 0 | -38
|
-----------------------------------------------------------------------------
---
|
Net cash from operating | 488 | 243 | 953
|
| activities | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Cash flow from investing | | |
|
| activities | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Purchases of tangible assets | -22 | -24 | -38
|
-----------------------------------------------------------------------------
---
|
Purchases of intangible assets | -147 | -535 | -932
|
-----------------------------------------------------------------------------
---
|
Net cash used in investing | -169 | -559 | -970
|
| activities | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Cash flow from financing | | |
|
| activities | | |
|
-----------------------------------------------------------------------------
---
|
Proceeds from issuance of share | 0 | 11 | 11
|
| capital | | |
|
-----------------------------------------------------------------------------
---
|
Proceeds from long-term loans | 0 | 1,131 | 1,132
|
-----------------------------------------------------------------------------
---
|
Repayments of long term loans | -113 | 0 | -217
|
-----------------------------------------------------------------------------
---
|
Purchases of own shares | -27 | -69 | -84
|
-----------------------------------------------------------------------------
---
|
Invested non-restricted equity | -122 | 0 | -244
|
| fund distribution | | |
|
-----------------------------------------------------------------------------
---
|
Dividends paid | -244 | -368 | -368
|
-----------------------------------------------------------------------------
---
|
Net cash used in financing | -506 | 705 | 230
|
| activities | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net change in cash and cash | -187 | 389 | 213
|
| equivalents | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Cash and cash equivalents in the | 1,929 | 1,716 | 1,716
|
| beginning of period | | |
|
-----------------------------------------------------------------------------
---
|
Cash and cash equivalents in the | 1,742 | 2,105 | 1,929
|
| end of period | | |
|
-----------------------------------------------------------------------------
---
------------------------------------------------------------------------------
--
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
|
| 1 JANUARY - 30 JUNE, 2010
|
-----------------------------------------------------------------------------
---
|
(EUR | Share |Reserve| Trans-| Trea- | In- | Retai- | Non- | Total
|
| 1,000) |capital| fund |lation | sury |vested | ned | cont-|
|
| | | |differ.| shares| non- | earn- |rolling |
|
| | | | | | restr.| ings |interest|
|
| | | | | | equity| |
| |
| | | | | | fund | |
|
|
-----------------------------------------------------------------------------
---
|
Share- | 1,359 | 21 | -94 | -209 | 127 | 1,371 | 0 | 2,575
|
| holders' | | | | | | | |
|
| equity | | | | | | | |
|
| Jan 1, 2010| | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Dividends | | | | | | -244 | | -244
|
| paid | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Invested | | | | | -122 | | | -122
|
| non-res- | | | | | | | |
|
| triccted | | | | | | | |
|
| equity | | | | | | | |
|
| fund | | | | | | |
| |
| distribu- | | | | | | |
| |
| tion | | | | | | |
|
|
-----------------------------------------------------------------------------
---
|
Purchase | | | | -27 | | | | -27
|
| of own | | | | | | | |
|
| shares | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Comprehen- | | | 93 | | | 188 | | 281
|
| sive income| | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Non-controlling | | | | | | -6 | -6
|
| Interest | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Change in | 0 | 0 | 93 | -27 | -122 | -56 | -6 | -118
|
| share-
holders' | | | | | | |
| |
| equity | | | | | | |
| |
| Jan - June | | | | | |
| |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Share- | 1,359 | 21 | -1 | -236 | 5 | 1,315 | -6 | 2,457
|
| holders'
equity | | | | | | |
| |
| June 30, | | | | | |
| | |
| 2010 | | | | | |
| |
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY
|
| 1 JANUARY - 30 JUNE, 2009
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
(EUR 1,000) | Share |Reserve| Trans- | Treasury| Invested | Retained| Total
|
| |capital| fund | lation | shares |non-restr.| earnings|
|
| | | | differ.| | equity | |
|
| | | | | | fund | |
|
-----------------------------------------------------------------------------
---
|
Share- | 1,359 | 21 | -105 | -125 | 360 | 1,222 | 2,732
|
| holders' | | | | | | |
|
| equity | | | | | | |
|
| 1 Jan, 2009 | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Shares | | | | | 11 | | 11
|
| issued | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Dividends | | | | | | -368 | -368
|
| paid | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Purchase of | | | | -69 | | | -69
|
| own shares | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Comprehen- | | | -5 | | | 267 | 262
|
| sive income | | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Change in | 0 | 0 | -5 | -69 | 11 | -101 | -164
|
| share- | | | | | | |
|
| holders'
equity
| Jan - June | | | | |
| |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Share- | 1,359 | 21 | -110 | -194 | 371 | 1,121 | 2,568
|
| holders' | | | | | | |
|
| equity June | | | | | | |
|
| 30,2009 | | | | | | |
|
-----------------------------------------------------------------------------
---
APPENDIX:
ACCOUNTING PRINCIPLES
The Interim consolidated financial statements are in compliance with
IAS 34
“Interim Financial Reporting”. Apart from the changes in
accounting principles
stated below, the accounting principles applied in the
interim report are the
same as in the financial statements at December 31,
2009.
Changes in the accounting principles
The Group adopted the following standards,
amendments to standard
interpretations from 1 January 2010
onwards:
- Revised IFRS 3 Business
Combinations
- Revised IAS 27 Consolidated and Separate Financial Statements.
Following newly adopted standards and interpretations have not had any
effect on
interim financial statements:
- Revised IFRS 2 Share-based Payment
- Revised IAS 39 Financial
Instruments: recognition and measurement
- IFRIC 17 Distributions of Non-cash
Assets to Owners
- IFRIC 18 transfer of Assets from customers
QPR
Software´s business consists of software license sales, software
subscription sales, software maintenance sales and professional services.
Software subscription net sales are reported as part of maintenance
services net
sales.
QPR Software Plc has three business segments: Software Sales
International
(software license, subscription and maintenance sales
outside of Finland),
Software Sales Finland (software license,
subscription and maintenance sales in
Finland) and Service and Solutions
(global professional service sales).
The geographical segments used
by the Company are Domestic (Finland) and
International markets. The
Company introduced hedging for its foreign currency
cash flows in June.
----------------------------------------------------------------------------
----
|
GROUP COMMITMENTS AND CONTINGENT LIABILITIES
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
(EUR 1,000) | June 30,| June 30,| Dec 31, |
| 2010 | 2009 | 2009 |
------------------------------------------------------------------------------
--
----------------------------------------------------------------------------
----
|
Business | 1,337 | 1,337 | 1,337 |
|
| mortgage | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Current lease liabilities
|
-----------------------------------------------------------------------------
---
|
Liabilities | 231 | 166 | 222 |
|
| maturing | | | |
|
| during one | | | |
|
| year | | | |
|
-----------------------------------------------------------------------------
---
|
Liabilities | 168 | 12 | 261 |
|
| maturing 2-5 | | | |
|
| years | | | |
|
-----------------------------------------------------------------------------
---
|
Total | 399 | 178 | 483 |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total | 1,736 | 1,515 | 1,820 |
|
| commitments | | | |
|
| and contingent | | | |
|
| liabilities | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Currency | June 30,| June 30,| Dec 31,|
|
| Hedging | 2010 | 2009 | 2009 |
|
| (EUR 1,000) | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Nominal value | 510 | 0 | 0 |
|
-----------------------------------------------------------------------------
---
|
Current value | -11 | 0 | 0 |
|
-----------------------------------------------------------------------------
---
GROUP
INTANGIBLE AND TANGIBLE ASSETS (EUR
1,000)
----------------------------------------------------------------------
----------
|
CHANGE IN INTANGIBLE ASSETS
------------------------------------------------------------------------------
--
|
June 30,| June 30,| Dec 31, |
| 2010 | 2009 | 2009 |
------------------------------------------------------------------------------
--
----------------------------------------------------------------------------
----
|
Acquisition | 3,494 | 2,528 | 2,506 |
| cost Jan 1 | |
| |
------------------------------------------------------------------------------
--
|
Increase | 147 | 374 | 988 |
------------------------------------------------------------------------------
--
----------------------------------------------------------------------------
----
|
CHANGE IN TANGIBLE ASSETS
|
-----------------------------------------------------------------------------
---
|
| June 30,| June 30,| Dec 31, |
| 2010 | 2009 | 2009 |
------------------------------------------------------------------------------
--
----------------------------------------------------------------------------
----
|
Acquisition | 983 | 1,099 | 945 |
| cost Jan 1 | |
| |
------------------------------------------------------------------------------
--
|
Increase | 22 | 23 | 38 |
------------------------------------------------------------------------------
--
----------------------------------------------------------------------------
----
|
CHANGE IN GROUP INTEREST BEARING LOANS
------------------------------------------------------------------------------
--
--------------------------------------------------------------------------
------
|
| June 30,| June 30,| Dec 31, |
| 2010 | 2009 | 2009 |
------------------------------------------------------------------------------
--
----------------------------------------------------------------------------
----
|
Interest | 1,098 | 182 | 182 |
|
| bearing | | | |
|
| loans | | | |
|
| Jan 1 | | | |
|
-----------------------------------------------------------------------------
---
|
Withdrawals | 0 | 1,131 | 1,132|
|
-----------------------------------------------------------------------------
---
|
Repayments | -113 | 0 | -217|
|
-----------------------------------------------------------------------------
---
|
Interest | 984 | 1,313 | 1,098 |
|
| bearing | | | |
|
| loans | | | |
|
| 30 June / | | | |
|
| 31 December | | | |
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
NET SALES BY BUSINESS SEGMENT | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
1 April - 30 June 2010 | | | |
------------------------------------------------------------------------------
--
|
(1,000 EUR) | Software | Service | Software | Not | Group
|
| | Sales | & | Sales | allo- |
Total|
| | Inter-| Solutions| Finland | cated |
|
| | national | | |
|
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
INCOME STATEMENT INFORMATION | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net sales | 1,017 | 329 | 427 | 0 | 1,773
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Operating profit | 163 | 41 | 49 | -82 | 171
|
|----------------------------------------------------------------------------
---
-
------------------------------------------------------------------------------
--
|
Finance income and | | | | -45 | -45
|
| expenses | | | | |
|
-----------------------------------------------------------------------------
---
|
Income tax expense | | | | -33 | -33
|
-----------------------------------------------------------------------------
---
|
Profit for the period | 163 | 41 | 49 | -160 | 93
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
OTHER INFORMATION | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 84 | 9 | 58 | 0 | 151
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
1 April- 30 June, 2009
|
-----------------------------------------------------------------------------
---
|
(1,000 EUR) | Software | Service | Software | Not | Group
|
| | Sales | & | Sales | allo- |
Total|
| | Inter-| Solutions| Finland | cated |
|
| | national | | |
|
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
INCOME STATEMENT INFORMATION | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net sales | 901 | 210 | 577 | 0 | 1,688
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Operating profit | 66 | -13 | 218 | -87 | 184
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Finance income and | | | | -5 | -5
|
| expenses | | | | |
|
-----------------------------------------------------------------------------
---
|
Income tax expense | | | | -34 | -34
|
-----------------------------------------------------------------------------
---
|
Profit for the period | 66 | -13 | 218 | -126 | 145
|
-----------------------------------------------------------------------------
---
|--------------------------------------------------------------------------
-----
-
| OTHER INFORMATION | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 56 | 9 | 30 | 0 | 95
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
1 January - 30 June, 2010
|
-----------------------------------------------------------------------------
---
|
(1,000 EUR) | Software | Service | Software | Not | Group
|
| | Sales | & | Sales | allo- |
Total|
| | Inter-| Solutions| Finland | cated |
|
| | national | | |
|
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
INCOME STATEMENT INFORMATION | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net sales | 1,972 | 620 | 851 | 0 | 3,443
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Operating profit | 312 | 82 | 83 | -161 | 316
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Finance income and | | | | -69 | -69
|
| expenses | | | | |
|
-----------------------------------------------------------------------------
---
|
Income tax expense | | | | -58 | -58
|
-----------------------------------------------------------------------------
---
|
Profit for the period | 312 | 82 | 83 | -288 | 188
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
OTHER INFORMATION | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 146 | 19 | 115 | 0 | 280
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
1 January - 30 June, 2009
|
-----------------------------------------------------------------------------
---
|
(1,000 EUR) | Software | Service | Software | Not | Group
|
| | Sales | & | Sales | allo- |
Total|
| | Inter-| Solutions| Finland | cated |
|
| | national | | |
|
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
INCOME STATEMENT INFORMATION | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net sales | 1,747 | 432 | 1,137 | 0 | 3,316
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Operating profit | 88 | 4 | 416 | -181 | 327
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Finance income and | | | | 1 | 1
|
| expenses | | | | |
|
-----------------------------------------------------------------------------
---
|
Income tax expense | | | | -61 | -61
|
-----------------------------------------------------------------------------
---
|
Profit for the period | 88 | 4 | 416 | -241 | 267
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
OTHER INFORMATION | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 114 | 20 | 75 | 0 | 209
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
CONSOLIDATED INCOME STATEMENT PER QUARTER | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
(EUR 1,000) | Jan- | Jan- | Apr- | Apr- | Jul- | Oct-
|
| | March, | March,| June, | June, | Sept, |
Dec, |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
2009
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net sales | 1,671 | 1,628 | 1,773 | 1,688 | 1,501 | 1,801
|
-----------------------------------------------------------------------------
---
|
Other operating | 34 | 7 | 3 | 25 | 3 | 0
|
| income | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Material and services | 47 | 112 | 63 | 117 | 134 | 88
|
-----------------------------------------------------------------------------
---
|
Employee benefits | 1,009 | 895 | 1,040 | 890 | 748 | 991
|
| expenses | | | | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation | 129 | 114 | 151 | 95 | 126 | 131
|
-----------------------------------------------------------------------------
---
|
Other operating | 375 | 371 | 351 | 427 | 337 | 373
|
| expenses | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating profit | 145 | 143 | 171 | 184 | 159 | 218
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Financial income and | -25 | 6 | -45 | -5 | -10 | -28
|
| expenses | | | | | |
|
-----------------------------------------------------------------------------
---
|
Profit before tax | 120 | 149 | 126 | 179 | 149 | 190
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Income tax expenses | -25 | -27 | -33 | -34 | -33 | -56
|
-----------------------------------------------------------------------------
---
|
Profit for the period | 95 | 122 | 93 | 145 | 116 | 134
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
GROUP KEY FIGURES | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
EUR (1,000) | Jan- | Jan- | Jan- | Jan- | Jan-
|
| | June, | June, | March, | March, |
Dec, |
| | 2010 | 2009 | 2010 | 2009 |
2009
|
-----------------------------------------------------------------------------
---
|
Net sales | 3,443 | 3,316 | 1,671 | 1,628 | 6,618
|
-----------------------------------------------------------------------------
---
|
Net sales growth, % | 3.8 | -16.5 | 2.6 | -7.2 | -11.9
|
-----------------------------------------------------------------------------
---
|
Operating profit | 316 | 327 | 145 | 143 | 705
|
-----------------------------------------------------------------------------
---
|
% of net sales | 9.2 | 9.9 | 8.7 | 8.8 | 10.6
|
-----------------------------------------------------------------------------
---
|
Profit or loss before tax | 246 | 328 | 120 | 149 | 668
|
-----------------------------------------------------------------------------
---
|
% of net sales | 7.1 | 9.9 | 7.2 | 9.2 | 10.1
|
-----------------------------------------------------------------------------
---
|
Profit for the period | 188 | 267 | 95 | 122 | 517
|
-----------------------------------------------------------------------------
---
|
% of net sales | 5.5 | 8.1 | 5.7 | 7.5 | 7.8
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Return on equity,% | 14.9 | 20.2 | 14.4 | 18.6 | 19.5
|
-----------------------------------------------------------------------------
---
|
Return on investment,% | 15.2 | 19.8 | 14.2 | 21.4 | 21.4
|
-----------------------------------------------------------------------------
---
|
Interest bearing | 984 | 1,313 | 984 | 182 | 1,098
|
| liabilities | | | | |
|
-----------------------------------------------------------------------------
---
|
Cash and cash equivalents | 1,742 | 2,105 | 2,091 | 1,163 | 1,929
|
-----------------------------------------------------------------------------
---
|
Net liabilities | -758 | -792 | -1,107 | -981 | -831
|
-----------------------------------------------------------------------------
---
|
Equity | 2,457 | 2,568 | 2,709 | 2,495 | 2,575
|
-----------------------------------------------------------------------------
---
|
Gearing,% | -30.7 | -30.8 | -40.8 | -39.3 | -32.3
|
-----------------------------------------------------------------------------
---
|
Equity ratio,% | 42.2 | 51.1 | 43.5 | 66.2 | 42.5
|
-----------------------------------------------------------------------------
---
|
Total balance sheet | 6,917 | 6,599 | 7,285 | 5,501 | 6,874
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Investments in | 169 | 397 | 65 | 96 | 1,026
|
| non-current assets | | | | |
|
-----------------------------------------------------------------------------
---
|
% of net sales | 4.9 | 12.0 | 3.9 | 5.9 | 15.5
|
-----------------------------------------------------------------------------
---
|
Research and development | 697 | 575 | 353 | 308 | 1,325
|
| expenses | | | | |
|
-----------------------------------------------------------------------------
---
|
% of net sales | 20.2 | 17.3 | 21.1 | 18.9 | 20.0
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Average number of | 63 | 56 | 59 | 57 | 57
|
| personnel | | | | |
|
-----------------------------------------------------------------------------
---
|
Personnel at the | 57 | 55 | 57 | 55 | 55
|
| beginning of period | | | | |
|
-----------------------------------------------------------------------------
---
|
Personnel at the end of | 66 | 56 | 60 | 57 | 57
|
| period | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Earnings per share,€ | 0.02 | 0.02 | 0.01 | 0.01 | 0.04
|
-----------------------------------------------------------------------------
---
|
Earnings per share | 0.02 | 0.02 | 0.01 | 0.01 | 0.04
|
| (diluted), € | | | | |
|
-----------------------------------------------------------------------------
---
|
Equity per share, € | 0.20 | 0.21 | 0.22 | 0.20 | 0.21
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Company has redefined the booking principles of received advance payments as
|
| of July 1, 2009. Equity ratio figures for previous periods have been
revised |
| accordingly.
|
-----------------------------------------------------------------------------
---
-------------------------------------------------------------------------
-------
|
MAJOR SHAREHOLDERS 30 JUNE, 2010 | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
| Number of | Percentage of
|
| | shares | shares
and |
| | |
votes
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Ulkomarkkinat Oy | 1,600,000 | 12.86 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Jouko Pelkonen | 462,000 | 3.71 %
|
-----------------------------------------------------------------------------
---
|
Pohjolan Rahoitus Oy | 868,000 | 6.97 %
|
-----------------------------------------------------------------------------
---
|
Electrosale Oy | 22,300 | 0.18 %
|
-----------------------------------------------------------------------------
---
|
Total | 1,352,300 | 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 | 422,321 | 3.39 %
|
-----------------------------------------------------------------------------
---
|
SR Eq Technology | 330,850 | 2.66 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
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 | 230,000 | 1.85 %
|
-----------------------------------------------------------------------------
---
|
Value FM Oy | 20,000 | 0.16 %
|
-----------------------------------------------------------------------------
---
|
Total | 250,000 | 2.01 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Esa Pääkkönen | 246,054 | 1.98 %
|
-----------------------------------------------------------------------------
---
|
Veli-Mikko Leskinen | 232,530 | 1.87 %
|
-----------------------------------------------------------------------------
---
|
Matti Kanninen | 195,826 | 1.57 %
|
-----------------------------------------------------------------------------
---
|
Tony Virtanen | 172,112 | 1.38 %
|
-----------------------------------------------------------------------------
---
|
Janne Laakso | 140,287 | 1.13 %
|
-----------------------------------------------------------------------------
---
|
Kai-Erik Becker | 140,000 | 1.12 %
|
-----------------------------------------------------------------------------
---
|
Teemu Lehto | 136,468 | 1.10 %
|
-----------------------------------------------------------------------------
---
|
Other shareholders | 2,198,402 | 17.67 %
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
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
|