STOCKHOLM, Sweden, April 25, 2002 (PRIMEZONE) -- Trio:
* Net sales in Q1 totalled SEK 22.8 million (SEK 31.5 m) * The net loss in Q1 was SEK 23.1 million (-SEK 15.2 m) * Order inflow rose 95 % to SEK 39 million (SEK 20 m) * Trio expects net sales to double in Q2 * The forecast of continued organic growth and an operating profit in 2002 remains unchanged
Q 1 2002 Q 1 2001 Full Year Full Year
SEK million 2001 2000
Inflow of orders 39 20 157 105
Net sales 22.8 31.5 165.2 104.0
Total expenses* -45.6 -46.7 -194.5 -214.1
Profit and loss prior to -22.8 -15.2 -24.6 -124.6
goodwill depreciation
Profit and loss for the -23.1 -15.2 -25.0 -271.6
period
*Items affecting comparability are not included
The operations
Trio is a telecommunications company that develops systems for call handling at companies, enabling them to improve both internal efficiency and customer service levels. Almost 2,000 systems have been delivered in the Nordic region, mainly to large and medium-sized companies. Trio's customers include five of the leading Nordic mobile operators. Trio operates in Sweden, Finland, Norway and Denmark and has three business and product areas.
Trio PresentOffice (former System Products) offers integrated telephony and advanced call and message handling. Integrated telephony means that companies' fixed, mobile and IP telephony are connected to form a single virtual telephony system.
Trio Mobile Office (former Operator Solutions) enables a complete transition from fixed to mobile telephony. The solution is subscribed to as a service from mobile operators. Trio Mobile Office can also be included as a component in Trio's integrated telephony.
Objecta TeleVoice (former Customized Systems) offers solutions for customer support. These include interactive voice response systems, such as telephone banking, flexible contact and call centre solutions and speech recognition.
Sales and profit trend
The Trio Group's net sales came to SEK 22.8 million (SEK 31.5 m) during the first three months of the year, and the Group reported a net loss for the period of SEK 23.1 million (-SEK 15.2 m). This is a trend previously mentioned in the preliminary year-end report for 2001 and is a consequence of the weak economic climate that has led to declining interest in investments in IT infrastructure solutions. The trend has primarily affected the Swedish operations in Trio PresentOffice and Objecta TeleVoice.
The inflow of orders strengthened towards the end of Q1, and Trio expects to double its net sales in Q2 2002 as compared with Q1. Solutions for mobile operators accounted for two-thirds of the order inflow in Q1, mainly benefiting Trio Mobile Office and Trio PresentOffice. Objecta TeleVoice also saw an increase in the inflow of orders.
Trio PresentOffice reported net sales of SEK 12.4 million (SEK 19.0 m) in Q1, as well as an operating loss before goodwill of SEK 12.9 million (-SEK 9.7 m). Objecta TeleVoice posted net sales of SEK 3.9 million (SEK 8.0 m) in Q1 and an operating loss before goodwill of SEK 5.2 million (- SEK 1.0 m). Net sales for Trio Mobile Office totalled SEK 6.5 million (SEK 4.5 m) in Q1, and the business area reported an operating loss before goodwill of SEK 4.7 million (-SEK 4.5 m).
Key events in the first quarter
In February, Trio signed an order with Telenor Mobile for the expansion of the mobile operator's mobile office solution in the Norwegian corporate market. Telia Mobile, Telenor Mobile, Europolitan Vodafone (now Vodafone), Sonera and TDC Mobil have all previously invested in Trio's mobile office solutions.
Trio's unique position is based on call handling solutions for integrated telephony that include fixed, mobile and IP telephony. Integrated telephony is based on Trio PresentOffice and was launched last year. Trio signed orders for integration solutions during the last quarter with Ernst & Young and Kristianstad University, among others.
In March, Trio signed an agreement with Cygate concerning the sale of solutions for the integration of IP telephony with fixed telephony in Sweden, Finland, Denmark, Estonia and Lithuania. The company also signed an agreement with the University of Sodertorn for an IP telephony solution with 1,000 extensions.
Trio's bid for Netwise
On 25 October 2001, Trio submitted a public bid to the shareholders of Netwise with a view to acquiring all outstanding shares and warrants in the company. On 8 March 2002, the Board of Directors of Trio decided against extending the bid, since it would not be possible to acquire 90 percent of the capital and votes. When the expiry date of the bid had passed, Trio owned shares in Netwise corresponding to approximately 32 per cent of the capital and around 26 per cent of the votes.
Staff
The number of employees at the Group at the end of the period was 109 (145). The fall in this figure is mainly due to the sale of operations at the subsidiary, Trio Technology Business, to Technology Nexus. A total of 27 people moved to Technology Nexus during 2001.
Investments
Investments in equipment and computers during Q1 came to SEK 0.2 million (SEK 0.4 m). Depreciation according to plan and including goodwill totalled SEK 1.3 million (SEK 1.6 m).
Financial position and liquidity
Liquid assets on 31 March 2002 totalled SEK 45.0 million (SEK 83.7 m). The Group's shareholders' equity on 31 March 2002 came to SEK 93.5 million (SEK 112.9 m), while the equity/assets ratio was 65 (70) per cent.
Outlook for 2002
At Group level, organic growth is expected to continue, and an operating profit before goodwill amortisation is also expected for the full year 2002, even though it got off to a poor start. Interest in Trio's integration solutions and Trio Mobile Office is increasing steadily and is expected to contribute strongly to the company's anticipated growth in 2002. Trio expects net sales to double in Q2 2002 compare to Q1
A higher proportion of major orders, however, will lead to substantial quarterly fluctuations in orders signed, net sales, profit/loss and cash flow.
The Board of Directors is continuously evaluating possible structural deals, as well as opportunities for initiating working partnerships with other companies.
Events since the end of the period
Trio has signed an agreement with 3Com concerning the development and sale of IP telephony systems in Sweden, Norway and Denmark. An initial order based on the products of both companies has been received.
Dates for future financial information
The Q2 Interim Report will be published on 25 July. The Q3 Interim Report will be published on 24 October.
Stockholm 25 April 2002
Trio AB (publ)
The Board of Directors
For more information, please contact Sverker Hannervall, CEO, tel: +46 8 457 30 05, or Ion Bogdaneris, Chairman of the Board, tel: +44 77 969 38 326
This report has not been subjected to a special review by the company's auditors.This information was brought to you by Waymaker http://www.waymaker.net
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