Aldata Solution Oyj Stock Exchange Release May 3rd, 2007 at 9.00
a.m. (EET)
Aldata in Q1 2007 (compared to Q1 2006)
The quarterly figures are prepared according to the principles of
International Financial Reporting Standards (IFRS).
* Net sales decreased by 18% to EUR 18.3 million (EUR 22.4
million).
* Gross profit decreased by 13% to EUR 14.9 million (EUR 17.2
million).
* Operating profit, EBIT, decreased to EUR -2.0 million (EUR 1.4
million) and operating profit excluding option expenses was EUR
-1.9 million (EUR 1.7 million).
* Profit before taxes was EUR -2.1 million (EUR 1.3 million).
* Net profit was EUR -2.1 million (EUR 0.8 million) and earnings
per share, EPS, were -0.031 euros (0.011 EUR).
* Cash flow from operating activities was EUR 1.3 million (EUR 0.1
million) and cash and cash equivalents amounted at the end of
March 2007 to EUR 6.7 million (EUR 9.0 million).
Market overview
After the challenging year 2006, the market for software solutions to
the retail and logistics sectors has been turning to more positive.
There is an increased interest among retailers and logistics
companies to replace their existing legacy systems with standard
application software. With over 250 existing customers and prospects
attending Aldata's annual user conference, the Club G.O.L.D., in
March, the participation was higher than ever. This is a strong sign
of long term demand for Aldata's offering and it also proves that
Aldata is a recognized leader in the area of standard application
software solutions for retailers.
However, the sales cycles for large replacement projects remain long,
resulting in the fact that Aldata did not close new corporate wide
projects with large international retailers in the first quarter.
Aldata did close projects with national and regional retailers and
logistics companies in the first quarter, thus continuing its planned
penetration into the market of mid- and small-sized businesses.
January - March 2007 financial performance
The Group's net sales were EUR 18.3 million (EUR 22.4 million), which
represents a decline of 4.1 million euros compared to the previous
year's first quarter net sales. Net sales were affected particularly
by a decrease in sales of customer specific developments and of
standard licenses.
Product sales, which include licenses on standard products, licenses
on customer specific developments and maintenance revenues, accounted
for 41% (45%) of the total net sales. Consulting services accounted
for 48% (46%) and third party licenses and hardware accounted for 11%
(9%).
The Group's gross profit was EUR 14.9 million (EUR 17.2 million),
which represents a 81% (77%) gross margin. Operating profit, EBIT,
totaled EUR -2.0 million (EUR 1.4 million) and operating profit
excluding expenses for option plans was EUR -1.9 million (EUR 1.7
million).
Pre-tax profit was EUR -2.1 million (EUR 1.3 million), net profit was
EUR -2.1 million (EUR 0.8 million) and earnings per share, EPS, were
-0.031 euros (0.011 euros).
Research and development costs in the financial period totaled EUR
2.7 million (EUR 3.3 million), of which EUR 0.1 million, thus 4%,
were capitalized. The amortization on capitalized development costs
was EUR 0.1 million (EUR 0.1 million).
Taxes for the financial period were EUR 0.0 million (EUR 0.5 million)
and tax rate was 0% (41%).
Aldata's reported order backlog includes product and third party
product sales, which will be recognized as revenues during the
following twelve months. At the end of March 2007, the order backlog
was EUR 17.9 million (EUR 21.1 million at the end March 2006 and EUR
19.1 million at the end of 2006).
Finance and investments
Cash flow from operating activities was in the first quarter EUR 1.3
million (EUR 0.1 million)
and net cash flow was EUR 1.0 million (EUR -0.4 million).
At the end of March 2007, Aldata Group's cash, cash equivalents and
marketable securities amounted to EUR 6.7 million (EUR 9.0 million)
and total assets were EUR 55.3 million (EUR 52.6 million). The Group
had no interest-bearing debt (EUR 0.0 million) and interest-bearing
net liabilities totaled EUR -6.0 million (EUR -8.4 million). Short
term receivables totaled 34.0 EUR million (EUR 31.0 million). The
Group's solvency ratio was 51.3% (52.0%), gearing was -21.6%
(-31.7%), and shareholders' equity per share was 0.409 EUR (0.386
EUR).
The Group's capital expenditure on hardware and software purchases
amounted to EUR 0.4 million (EUR 0.5 million). A total of EUR 0.1
million (EUR 0.1 million) of development costs were capitalized
during the period.
Business units
Net sales of the Supply Chain Management (SCM) Software business unit
were EUR 15.0 million (EUR 18,9 million). The gross profit was EUR
12.4 (EUR 14.6) million and the operating profit, EBIT, was EUR -1.8
(EUR 1.3) million.
Net sales of the In-Store Software business unit were EUR 3.3 million
(EUR 3.5 million). The gross profit was EUR 2.5 million (EUR 2.6
million) and the operating profit, EBIT, was EUR -0.3 (EUR 0.4)
million.
There were no internal sales between the Group's business segments.
The unallocated costs, Group's shared items netted, increased the
Group's operating profit, EBIT, with EUR 0.1 million (EUR -0.4
million).
Research and Development
Aldata's research and development costs were EUR 2.7 million (EUR 3.3
million) and made up 15% (15%) of net sales. A total of EUR 0.1
million (EUR 0.1 million) of development costs were capitalized
during the period. The amortization on capitalized development costs
was EUR 0.1 million (EUR 0.1 million).
At the end of the review period 179 (220) employees were involved in
R&D activities. This represents 29% (36%) of the Group's total
personnel. Aldata's R&D centers are located in Paris, France and in
Helsinki, Finland.
Personnel
Aldata Group employed 629 (604) persons at the end of March 2007, and
on average had 632 (595) employees during the period. The personnel
growth rate was 2% (20%) in the Supply Chain Management Software
business unit and 11% (0%) in the In-Store Software business unit.
Mar 31, 2007 Mar 31, 2006
By Business Units Persons % Persons %
SCM Software 504 80 492 81
In-Store Software 114 18 102 17
Group administration 11 2 10 2
Total 629 100 604 100
Approximately 53% of personnel were employed by Aldata companies in
France, 15% in Finland, 12% in Germany, 7% in Sweden, 5% in the US,
4% in Slovenia, 3% in the UK and 1% in Russia.
Share performance
The highest price of the Aldata Solution Oyj share during January -
March 2007 was 1.78 EUR and the lowest price 1.33 EUR. The average
price was 1.57 EUR and the closing price 1.75 EUR. The trading volume
on the Helsinki Stock Exchange was EUR 13.1 million and altogether
8.5 million shares were traded, which represents 12% of the shares.
Aldata Solution Oyj has 68.1 million shares outstanding. The number
of shares outstanding has remained unchanged during the period.
The number of shareholders was 5 865 and the free float was 99.8% of
the share capital at the end of March 2007. A total of 51.2% of
Aldata Solution Oyj's shares were owned by foreign investors at the
end of the period.
Annual General Meeting 2007
The Annual General Meeting of Aldata Solution Oyj was held in
Helsinki, Finland on March 29th, 2007.
The meeting approved the parent company's financial statements and
the consolidated financial statements for the year 2006 and decided
according to the Board's proposal that no dividend will be
distributed on the year 2006. The profit for the year will be carried
forward to the retained earnings account.
The Board members and the Managing Director were discharged from
liability for the fiscal year 2006.
The Meeting resolved, in accordance with the Board's proposals, to:
* approve the amendments to the company's Articles of Association;
* authorize the Board to decide on a repurchase of the company's
own shares;
* authorize the Board to decide on issuing new shares and on
conveying the own shares held by the company.
The amendments to the Articles of Association were entered in the
Trade Register on April 26th, 2007. The amended Articles of
Association have been published on the Company's website at
www.aldata-solution.com.
The Annual General Meeting elected the following persons to the Board
of Directors: Mr. Peter Titz and Mr. Pekka Vennamo as old members and
Mr. Bertrand Sciard and Mr. William Chisholm as new members.
The Board convened after the Annual General Meeting. In the meeting
Mr. Peter Titz was elected as the Chairman of the Board and Mr.
Bertrand Sciard as the Vice Chairman of the Board.
Ernst & Young Oy was re-appointed to be the company's auditor, under
the supervision of principal auditor Tomi Englund (APA).
Outlook for 2007
The first quarter was negatively effected by lower development
revenues as a result of the move from two yearly G.O.L.D. releases to
one and by decreased sales of standard licenses. Also, the services
teams' utilizations were at a low level in some regions.
Currently, there is a clear improvement in the activity level both
within the development and project teams and therefore the financial
performance in the second quarter is expected to be better than in
the first quarter. For the full year 2007 the company expects growth
in net sales, a significant increase in operating margin, compared to
2006, and a positive operating cash flow. The positive expectations
for the full year are based on the strong growth in the prospect
base, the current activity in project and development teams and on
the improvement of efficiency, resulting from the restructuring
measures taken in the fourth quarter of 2006. Also, the Company
expects to benefit from the network and experience, especially
regarding the North-American market, that its new large shareholder,
Symphony Technology, brings.
Helsinki, May 3rd, 2007
Aldata Solution Oyj
Board of Directors
Further information:
Aldata Solution Oyj, René Homeyer, President and CEO, tel. +33 683
810 888
Aldata Solution Oyj, Thomas Hoyer, CFO, tel. +358 45 670 0491
Aldata will arrange a press conference for media and financial
analysts in Helsinki on May 3rd, at 15.00 (EET) in the Scandic Hotel
Simonkenttä (Simonkatu 9) in the Espa cabinet on the ground floor.
The presentation material will be published on the Group's website at
www.aldata-solution.com
Aldata in brief
Aldata Solution is one of the global leaders in supply chain software
for retail, wholesale and logistics companies. The company's
comprehensive range of Supply Chain Management and In-Store solutions
enable its more than 300 customers across 50 countries to enhance
productivity, profitability, performance and competitiveness. Aldata
develops and supports its software through more than 600 Aldata
professionals and a global partner network. Aldata is a public
company quoted on the Helsinki Stock Exchange with the identifier
ALD1V. More information at: www.aldata-solution.com
Distribution:
OMX Helsinki Stock Exchange
Media
APPENDICES
1 Income Statement
2 Balance Sheet
3 Statement of Changes in Equity
4 Cash Flow
5 Contingent Liabilities
6 Key Figures
7 Segment Information
8 Quarterly Income Statement and Balance Sheet
9 Quarterly Key Figures
APPENDIX 1
INCOME STATEMENT MEUR MEUR Change % MEUR
Jan-Mar Total
/2007 Jan-Mar/ 2006 2006
Net sales 18,3 22,4 -18% 88,8
Other operating income 0,2 0,2 5,5% 0,4
Operating expenses -20,2 -20,8 3,2% -82,5
Depreciations and impairments -0,3 -0,3 -6,1% -1,1
Operating profit -2,0 1,4 -243,8% 5,5
Financial items -0,1 0,0 -179,8% -0,1
Profit before taxes -2,1 1,3 -256,3% 5,5
Income taxes 0,0 -0,5 103,5% -2,9
Minority interest 0,0 0,0 99,2% 0,0
Profit for the financial period -2,1 0,8 -374,4% 2,5
Earnings per share, EUR -0,031 0,011 0,037
Earnings per share, EUR (EPS),
adjusted for dilution effect -0,030 0,011 0,037
APPENDIX 2
BALANCE SHEET MEUR MEUR MEUR
31 Mar 2007 31 Mar 2006 31 Dec 2006
ASSETS
NON-CURRENT ASSETS
Goodwill 9,4 8,5 9,4
Capitalized development cost 1,4 1,0 1,4
Intangible assets 0,3 0,1 0,2
Tangible assets 1,5 1,7 1,5
Investments 0,0 0,0 0,0
Other long-term assets 0,8 0,5 1,0
Deferred tax assets 0,5 0,4 0,5
NON-CURRENT ASSETS TOTAL 14,0 12,3 14,1
CURRENT ASSETS
Inventories 0,6 0,2 0,5
Short-term receivables 34,0 31,0 34,9
Cash and cash equivalents 6,7 9,0 5,7
CURRENT ASSETS TOTAL 41,4 40,3 41,2
ASSETS TOTAL 55,3 52,6 55,3
SHAREHOLDERS' EQUITY AND
LIABILITIES
Shareholders' equity 27,9 26,1 29,8
Minority interest 0,1 0,4 0,1
Non-current liabilities 1,7 2,1 1,7
Current liabilities 25,6 24,0 23,7
EQUITY AND LIABILITIES TOTAL 55,3 52,6 55,3
APPENDIX 3
STATEMENT OF CHANGES IN EQUITY(1000 EUR)
Share
Share premium Translation Retained
TEUR capital fund difference earnings Total
EQUITY 01.01.2005 674 17 002 126 3 559 21 361
Translation difference 0 0 -201 0 -201
Result of the financial
year 0 0 0 3 401 3 401
Total 0 0 -201 3 401 3 200
Share based payments
recognised against
equity 0 0 0 516 516
EQUITY 31.12.2005 674 17 002 -75 7 476 25 078
Issue of share capital 6 1 143 0 0 1 149
Exercise of options 1 146 0 0 147
Translation difference 0 0 42 0 42
Result of the financial
year 0 0 0 2 526 2 526
Total 7 1 289 42 2 526 3 864
Share based payments
recognised against
equity 0 0 0 860 860
EQUITY 31.12.2006 681 18 291 -33 10 862 29 802
Share based payments
recognised against
equity 0 0 0 124 124
Translation difference 0 0 31 0 31
Result of the financial
period 0 0 0 -2054 -2054
EQUITY 31.3.2007 681 18 291 -2 8 932 27 903
APPENDIX 4
CASH FLOW STATEMENT
MEUR MEUR MEUR
1-3/2007 1-3/2006 2006
Cash flow from operating activities
Operating result -2,0 1,4 5,5
Adjustment to operating result 0,3 0,5 1,7
Change in working capital 3,1 -1,8 -6,3
Interest received and other financial income 0,0 0,1 0,2
Interest paid and other financial expenses -0,1 -0,1 -0,1
Taxes paid 0,0 -0,1 -3,2
Net cash from operating activities 1,3 0,1 -2,2
Cash flow from investing activities
Group companies acquired 0,0 0,0 -0,1
Investments in tangible and intangible assets -0,3 -0,4 -1,3
Loans granted 0,0 -0,1 -0,2
Net cash used in investing activities -0,3 -0,5 -1,6
Cash flow before financing activities 1,0 -0,4 -3,8
Cash flow from financing activities
Long-term loans, repayments 0,0 0,0 -0,1
Share issue 0,0 0,0 0,1
Net cash used in financing activities 0,0 0,0 0,1
Net cash flow, total 1,0 -0,4 -3,7
Change in cash and cash equivalents 1,0 -0,4 -3,7
Cash and cash equivalents 1 Jan. 5,7 9,4 9,4
Cash and cash equivalents 31 Dec. 6,7 9,0 5,7
APPENDIX 5
COMMITMENTS AND CONTINGENCIES MEUR MEUR MEUR
31 Mar 2007 31 Mar 2006 31 Dec 2006
Mortages 5,4 5,4 5,4
Leasing liabilities 17,2 8,2 16,1
Guarantees on behalf of company
debt 0,1 0,2 0,2
APPENDIX 6
KEY FIGURES, MEUR Jan-Mar /2007 Jan-Mar /2006 Total 2006
Scope of Operations
Net sales, MEUR 18,3 22,4 88,8
Average number of personnel 632 595 614
Profitability
Operating profit , MEUR -2,0 1,4 5,5
Operating profit, % of net
sales -10,9 6,2 6,2
Profit before taxes and
minority interest, MEUR -2,1 1,3 5,5
Profit before taxes and
minority interest, % of net
sales -11,5 6,0 6,2
Return on equity, % (ROE) -28,8 12,3 9,2
Return on investment, % (ROI) -25,3 22,0 21,0
Financial Standing
Quick ratio 1,6 1,7 1,7
Current ratio 1,6 1,7 1,7
Equity ratio, % 51,3 52,0 54,5
Interest-bearing net debt,
MEUR -6,0 -8,4 -5,1
Gearing, % -21,6 -31,7 -16,9
Per Share Data
Earnings per share, EUR (EPS) -0,031 0,011 0,037
Earnings per share, EUR (EPS),
adjusted for dilution effect -0,030 0,011 0,037
Shareholders' equity per
share, EUR 0,409 0,386 0,372
APPENDIX 7
SEGMENT INFORMATION, MEUR
BUSINESS SEGMENTS Jan-Mar/2007 Jan-Mar/2006 Jan-Dec/2006
Net sales to external
customers
Supply Chain Management
Software 15,0 18,9 74,2
In-Store Software 3,3 3,5 14,6
Total 18,3 22,4 88,8
Operating result, continuing
operations
Supply Chain Management
Software -1,8 1,3 5,1
In-Store Software -0,3 0,4 2,6
Total -2,1 1,8 7,7
Unallocated items 0,1 -0,4 -2,1
Operating profit -2,0 1,4 5,5
Financial income and expenses -0,1 0,0 0,0
Result before taxes and
minority interest -2,1 1,3 5,5
Taxes 0,0 -0,5 -2,9
Minority interest 0,0 0,0 0,0
Result from continuing
operations -2,1 0,8 2,5
Result for the financial
period -2,1 0,8 2,5
APPENDIX 8
INCOME STATEMENT MEUR MEUR MEUR MEUR MEUR
quarterly figures Q1/2007 Q4/2006 Q3/2006 Q2/2006 Q1/2006
Net sales 18,3 25,3 19,9 21,2 22,4
Other operating income 0,2 0,0 0,1 0,1 0,2
Operating expenses -20,2 -23,8 -18,2 -19,6 -20,8
Depreciations and -0,3 -0,3 -0,3 -0,3 -0,3
impairments
Operating profit -2,0 1,3 1,5 1,4 1,4
Financial items -0,1 0,0 0,1 -0,1 0,0
Profit before taxes -2,1 1,2 1,6 1,3 1,3
Income taxes 0,0 -0,9 -0,7 -0,8 -0,5
Minority interest 0,0 0,0 0,0 0,0 0,0
Profit for the -2,1 0,3 0,9 0,5 0,8
financial period
INCOME STATEMENT MEUR MEUR MEUR MEUR MEUR
cumulative 1-3/07 1-12/06 1-9/06 1-6/06 1-3/06
Net sales 18,3 88,8 63,5 43,6 22,4
Other operating income 0,2 0,4 0,4 0,3 0,2
Operating expenses -20,2 -82,5 -58,7 -40,5 -20,8
Depreciations and -0,3 -1,1 -0,8 -0,6 -0,3
impairments
Operating profit -2,0 5,5 4,3 2,8 1,4
Financial items -0,1 -0,1 0,0 -0,1 0,0
Profit before taxes -2,1 5,5 4,2 2,7 1,3
Income taxes 0,0 -2,9 -2,0 -1,3 -0,5
Minority interest 0,0 0,0 0,0 -0,1 0,0
Profit for the -2,1 2,5 2,2 1,3 0,8
financial period
BALANCE SHEET MEUR MEUR MEUR MEUR MEUR
31.3.07 31.12.06 30.9.06 30.6.06 31.3.06
ASSETS
NON-CURRENT ASSETS
Goodwill 9,4 9,4 9,4 8,5 8,5
Capitalized development 1,4 1,4 1,3 1,2 1,0
cost
Intangible assets 0,3 0,2 0,2 0,1 0,1
Tangible assets 1,5 1,5 1,5 1,6 1,7
Investments 0,0 0,0 0,0 0,0 0,0
Other long-term assets 0,8 1,0 0,6 0,6 0,5
Deferred tax assets 0,5 0,5 0,5 0,4 0,4
NON-CURRENT ASSETS 14,0 14,1 13,6 12,4 12,3
TOTAL
CURRENT ASSETS
Inventories 0,6 0,5 0,3 0,5 0,2
Short-term receivables 34,0 35,0 31,2 28,2 31,0
Cash and cash 6,7 5,7 5,5 9,2 9,0
equivalents
CURRENT ASSETS TOTAL 41,4 41,2 37,2 38,0 40,3
ASSETS TOTAL 55,3 55,3 50,8 50,4 52,6
SHAREHOLDERS' EQUITY
AND LIABILITIES
Shareholders' equity 27,9 29,8 29,2 26,8 26,1
Minority interest 0,1 0,1 0,1 0,5 0,4
Non-current liabilities 1,7 1,7 1,9 1,9 2,1
Current liabilities 25,6 23,7 19,6 21,2 24,0
EQUITY AND LIABILITIES 55,3 55,3 50,8 50,4 52,6
TOTAL
APPENDIX 9
KEY FIGURES, MEUR Q1/2007 Q4/2006 Q3/2006 Q2/2006 Q1/2006
quarterly figures
Scope of Operations
Net sales, MEUR 18,3 25,3 19,9 21,2 22,4
Average number of personnel,
cumulative 632 614 609 603 595
Profitability
Operating profit , MEUR -2,0 1,3 1,5 1,4 1,4
Operating profit,
% of net sales -10,9 4,9 7,5 6,6 6,2
Profit before taxes and
minority interest, MEUR -2,1 1,2 1,6 1,3 1,3
Profit before taxes and
Minority interest,
% of net sales -11,5 4,8 7,9 6,3 6,0
Return on equity, % (ROE) -28,8 9,2 10,9 10,3 12,3
Return on investment, %
(ROI) -25,3 21,0 21,9 22,1 22,0
Financial Standing
Quick ratio 1,6 1,7 1,9 1,8 1,7
Current ratio 1,6 1,7 1,9 1,8 1,7
Equity ratio, % 51,3 54,5 58,5 55,4 52,0
Interest-bearing net debt,
MEUR -6,0 -5,1 -4,9 -8,6 -8,4
Gearing, % -21,6 -16,9 -16,7 -31,8 -31,7
Per Share Data
Earnings per share, EUR
(EPS) -0,031 0,005 0,014 0,008 0,011
Earnings per share, EUR
(EPS),
adjusted for dilution effect -0,030 0,005 0,014 0,008 0,011
Shareholders' equity per
share,
EUR 0,409 0,437 0,428 0,397 0,386
ALDATA SOLUTION INTERIM REPORT JANUARY - MARCH 2007
| Source: Aldata Solution Oyj