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