TELESTE CORPORATION STOCK EXCHANGE RELEASE 17.7.2007 AT 13:00
TELESTE CORPORATION INTERIM REPORT 1 JANUARY TO 30 JUNE 2007
- Net sales grew by 35.8% over the previous year amounting to EUR 61.8 million
- Operating profit stood at EUR 5.5 million, an increase of 33.8% over the
previous year; undiluted result per share grew by 26.6% to EUR 0.22 per share
- Orders received improved by 22.5% over the previous year standing at EUR 59.3
million
- Broadband Cable Networks' orders received increased by 23.0% over the previous
year
- Video Networks' orders received were up by 18.5% over the previous year
Improved Net Sales and Profitability
Year-on-year net sales increased by 35.8% standing at EUR 61.8 (45.5) million.
Over the previous year operating profit grew by 33.8% standing at EUR 5.5 (4.1)
million making 8.9% (9.0%) of net sales. Undiluted result per share equalled EUR
0.22 (EUR 0.18). Orders received improved by 22.5% from the previous year
standing at EUR 59.3 (48.4) million. Order backlog totalled EUR 25.7 (25.7)
million. No major delivery delays occurred at the end of the period under
review.
Net sales in Q2 amounted to EUR 30.3 (22.7) million while operating profit
equalled EUR 2.7 (1.9) million making 8.9% (8.6%) of net sales. Orders received
in Q2 stood at EUR 23.0 (21.5) million. Accrual of orders received was affected
by fluctuation of volumes ordered within the frame agreements.
In April 2007 Teleste strengthened its service business by acquiring the DINH
Telecom companies.
Business Areas
Broadband Cable Networks
Broadband Cable Networks' year-on-year net sales grew by 42.6% (21.1%) standing
at EUR 54.3 (38.1) million. Operating profit stood at EUR 5.9 (3.9) million
making 10.8% (10.3%) of the net sales. This improvement in the operating profit
is mainly attributed to increased net sales. Orders received increased by 23.0%
(34.8%) over the previous year to EUR 52.4 (42.6) million. Order backlog
totalled EUR 24.4 (23.9) million.
Q2 net sales for the business was EUR 26.3 (19.1) million. Operating profit
stood at EUR 2.6 (1.9) million making 9.8% (10.0%) of the net sales. Orders
received in Q2 stood at EUR 19.7 (18.4) million.
Several EttH 100 Mbps deliveries are at testing and test-run stages.
In June the business area entered into a three-year frame agreement with Canal
Digital Nordic on deliveries of cable network equipment.
In April 2007 the Belgian DINH Telecom was acquired to strengthen growth in the
Broadband Cable Networks' service business.
Video Networks
Net sales of Video Networks amounted to EUR 7.5 (7.4) million. Operating profit
remained EUR -0.4 (0.19) million in the red. Orders received by Video Networks
increased by 18.5 % (9.3%) over the year of comparison to EUR 6.9 (5.8) million.
Order backlog totalled EUR 1.3 (1.8) million.
Q2 net sales for the business totalled EUR 4.1 (3.5) million. Operating profit
stood at EUR 0.1 (0.04) million making 2.7% (1.1%) of the net sales. Orders
received in Q2 stood at 3.3 (3.0) million.
Significant Short-Term Risks and Uncertainty Factors for the Business Areas
As no essential changes have taken place in the short-term business risks and
uncertainty factors our view remains in line with that issued in the interim
report published on 24 April 2007.
Ownership rearrangements among our clientele may slow down the folding out of
some investments in the business of Broadband Cable Networks. Strengthening of
order backlog for Video Networks is dependent on timing of public sector
decisions. Introduction to the market of new competing technologies is a
characteristic risk factor for both of our business areas.
Personnel
At the end of June the number of people employed by the Group was 721 (662), out
of which 530 (490) were stationed in Finland. The number of personnel includes
70 (55) summer substitutes. Temporary labour, equalling 75 (37) at the end of
June, is not included in the stated number of personnel.
In June 2007 Johan Slotte was appointed company deputy CEO responsible for the
company business development, marketing, quality and IT, human resources and
legal affairs. Hanno Narjus was appointed Senior Vice President of Video
Networks.
R&D and Investments
At the end of June Teleste's R&D personnel included 148 (128) persons. The R&D
expenditure for the review period totalled EUR 6.6 (4.3) million making 10.7%
(9.6%) of net sales. Activated R&D expenses stood at EUR 1.2 million (EUR 0.7
million). This growth in activated resources over the previous year was due to
development work involving IP HeadEnd, the IP based video processing product
family. Depreciation on previous R&D investments amounted to EUR 0.6 (0.4)
million. In April 2007 the National Technology Agency of Finland (Tekes) decided
to continue its contribution to the development of broadband integrated services
digital networks. The total amount of development support stands at EUR 2.9
million spanning the period 2 January 2007 to 30 June 2008. Investments for the
Group totalled EUR 9.9 (4.5) million of which EUR 6.1 million involved the
acquisition of DINH Telecom. Other investments focussed mainly on the new SMT
line (1.4 million), R&D (1.2 million), production measuring instruments, air
conditioning on production premises and information technology. The effect of
the final price of S-Link shares on the investments for the period under review
amounted to EUR 0.1 million.
Finance
Operating cash flow for the period under review stood at EUR 2.7 (-4.3) million.
Short-term receivables for the period under review grew by EUR 7.1 million,
inventories increased by EUR 2.1 million and non-interest bearing short-term
debt by EUR 2.6 million. As to the growth in working capital for the period EUR
2.2 million was attributed to the extended Group structure. At the end of the
review period, liquid funds stood at EUR 10.7 (8.2) million. At the end of June
the Group's interest-bearing debt amounted to EUR 20.6 (14.8) million. The
interest-bearing debt for the period increased by 12.6 million. The increased
interest-bearing funds were used to finance investments and growth in working
capital and to pay the dividend. At the end of June, in addition to liquid funds
the company's unused stand-by credits amounted to EUR 12.0 (17.0) million. The
Group's gearing ratio was 25.0% (20.1%) and the equity ratio was 46.1% (47.7%).
Teleste hedges main exchange rate risks of forecasted currency flows for six
months ahead.
Shares and Shareholders
In the period under review the share price fluctuated between EUR 9.99 and EUR
12.34. The closing price at the end of June was EUR 10.79 (9.84). According to
the Finnish Central Security Depository, the number of shareholders at the end
of the period was 5,277 (5,755) while foreign ownership accounted for 21.7%
(19.5%). The value of shares traded on OMX Nordic Exchange was EUR 43.3 (89.5)
million while the number thereof equalled 3.8 (9.2) million. At the end of June
the number of own shares in Teleste' possession was 352,482 equalling 2.0% of
the entire capital stock. In February 2007 10,180 own shares, 0.06% of the
capital stock, were conveyed to the share bonus scheme of the Management Group.
In April 2007 92,338 own shares, 0.53% of the capital stock, were conveyed in
the context of the DINH acquisition arrangement.
Decisions by the Annual General Meeting
The Annual General Meeting on 3 April 2007 confirmed the financial statements
for 2006 and discharged the Board and the CEO from liability for the financial
period. The AGM confirmed the dividend of EUR 0.20 per share as proposed by the
Board of Directors. The dividend was paid out on 17 April 2007.
Composition of Teleste's Board remained unchanged: Mr. Tapio Hintikka was
re-elected as Chairman whilst Mr. Tero Laaksonen, Mr. Pertti Raatikainen, Mr.
Timo Toivila and Mr. Pekka Vennamo continued as members on the Board of
Directors.
Authorised Public Accountants KPMG Oy Ab continue as the auditor until the next
AGM.
The AGM authorised the Board to acquire the maximum of 1,290,000 of the
company's own shares and to convey the maximum of 1,730,000 company's own
shares. Based on authorisations of 2001 and 2002 the company is in the
possession of 352,482 of its own shares. The AGM also authorised the company to
issue 4,500,000 new shares. Maximum number of significant shares accommodated by
the special rights granted by the company equals 1,730,000. These authorisations
will be valid until the AGM due to be held in 2008. Nominal value of the company
share was renounced. The AGM accepted a share option plan involving key
personnel. The plan authorises a subscription of 840,000 new shares.
Events after the End of the Period
Broadband Cable Networks obtained a significant order involving a network
planning project from England. To implement the project 30 fixed-term network
designers will be hired in England in line with the service business strategy.
Outlook
Broadband Cable Networks will continue to develop favourably. We believe the
frame agreement accrual to stay on a good level. Sustained profitable growth
will be secured by the control over material expenses, active development of the
service business and its increasing demand.
Prospect list of Video Networks involving traffic control and urban area
surveillance solutions is on a sound level. We believe the order accrual and
deliveries to pick up in the second half of the year.
In our view Teleste's net sales for the current year will grow and the
profitability will improve in comparison with the previous year.
Teleste's interim report for the January to September period will be published
on 23 October 2007.
17.7.2007
Teleste Corporation Jukka Rinnevaara
The Board of Directors President and CEO
This interim report has been compiled in compliance with IFRS 34 using the
recognition and valuation principles identical with those used in the Annual
Report. The data stated in this interim report is unaudited.
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| CONSOLIDATED STATEMENT OF | 1-6/2007 | 1-6/2006 | Change | 1-12/2006 |
| INCOME (tEUR) | | | % | |
--------------------------------------------------------------------------------
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| Turnover | 61 757 | 45 480 | 35.8 % | 101 773 |
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| | Change in inventories | 1 849 | 2 358 | -21.6 | 6 066 |
| | of finished goods | | | % | |
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| | Other operating income | 866 | 1 242 | -30.3 | 2 158 |
| | | | | % | |
--------------------------------------------------------------------------------
| | Materials and services | -32 653 | -22 935 | 42.4 % | -54 743 |
--------------------------------------------------------------------------------
| | Personnel expenses | -15 361 | -13 259 | 15.9 % | -27 100 |
--------------------------------------------------------------------------------
| | Other operating | -9 481 | -7 627 | 24.3 % | -16 006 |
| | expenses | | | | |
--------------------------------------------------------------------------------
| | Depreciation | -1 486 | -1 158 | 28.3 % | -2 393 |
--------------------------------------------------------------------------------
| Operating profit | 5 490 | 4 102 | 33.8 % | 9 755 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Financial income and | -335 | -149 | 124.8 | -467 |
| | expenses | | | % | |
--------------------------------------------------------------------------------
| Profit after financial | 5 155 | 3 953 | 30.4 % | 9 288 |
| items | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before taxes | 5 155 | 3 953 | 30.4 % | 9 288 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Taxes | -1 329 | -956 | 39.0 % | -2 408 |
--------------------------------------------------------------------------------
| Net profit | 3 826 | 2 997 | 27.6 % | 6 879 |
--------------------------------------------------------------------------------
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| Attributable to: | | | | |
--------------------------------------------------------------------------------
| | Equity holders of the | 3 826 | 2 997 | 27.6 % | 6 879 |
| | parent | | | | |
--------------------------------------------------------------------------------
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| Earnings per share for profit of the year attributable to the equity holders |
| of the parent |
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| (expressed in EUR per | | | | |
| share) | | | | |
--------------------------------------------------------------------------------
| | Basic | 0.22 | 0.18 | 26.6 % | 0.41 |
--------------------------------------------------------------------------------
| | Diluted | 0.21 | 0.17 | 24.6 % | 0.38 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated Statement of | 4-6/2007 | 4-6/2006 | Change | |
| Income (tEUR) | | | % | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Turnover | 30 342 | 22 669 | 33.8 % | |
--------------------------------------------------------------------------------
| | Change in | 2 465 | 2 331 | 5.7 % | |
| | inventories of | | | | |
| | finished goods | | | | |
--------------------------------------------------------------------------------
| | Other operating | 824 | 539 | 52.8 % | |
| | income | | | | |
--------------------------------------------------------------------------------
| | Materials and | -17 085 | -12 796 | 33.5 % | |
| | services | | | | |
--------------------------------------------------------------------------------
| | Personnel expenses | -8 098 | -6 571 | 23.2 % | |
--------------------------------------------------------------------------------
| | Other operating | -4 979 | -3 659 | 36.1 % | |
| | expenses | | | | |
--------------------------------------------------------------------------------
| | Depreciation | -776 | -565 | 37.4 % | |
--------------------------------------------------------------------------------
| Operating profit | 2 693 | 1 949 | 38.2 % | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Financial income and | -99 | -126 | -21.2 | |
| | expenses | | | % | |
--------------------------------------------------------------------------------
| Profit after financial | 2 593 | 1 823 | 42.3 % | |
| items | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before taxes | 2 593 | 1 823 | 42.3 % | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Taxes | -635 | -382 | 66.2 % | |
--------------------------------------------------------------------------------
| Net profit | 1 959 | 1 441 | 35.9 % | |
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| BALANCE SHEET (tEUR) | 30.6. | 30.6. | Change | 31.12. |
| | 2007 | 2006 | % | 2006 |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| | Property,plant, | 7 362 | 5 774 | 27.5 % | 5 578 |
| | equipment | | | | |
--------------------------------------------------------------------------------
| | Goodwill | 12 731 | 12 581 | 1.2 % | 12 127 |
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| | Intangible assets | 5 761 | 2 536 | 127.2 | 3 614 |
| | | | | % | |
--------------------------------------------------------------------------------
| | Investments | 1 423 | 1 116 | 27.5 % | 1 116 |
--------------------------------------------------------------------------------
| | | 27 277 | 22 007 | 23.9 % | 22 435 |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| | Inventories | 18 700 | 14 047 | 33.1 % | 16 604 |
--------------------------------------------------------------------------------
| | Other current assets | 29 514 | 25 498 | 15.8 % | 22 409 |
--------------------------------------------------------------------------------
| | Liquid funds | 10 745 | 8 152 | 31.8 % | 6 789 |
--------------------------------------------------------------------------------
| | | 58 959 | 47 697 | 23.6 % | 45 802 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 86 236 | 69 704 | 23.7 % | 68 236 |
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--------------------------------------------------------------------------------
| Shareholder's equity and | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Share capital | 6 967 | 6 942 | 0.4 % | 6 955 |
--------------------------------------------------------------------------------
| Other equity | 32 703 | 26 280 | 24.4 % | 30 706 |
--------------------------------------------------------------------------------
| | | 39 670 | 33 222 | 19.4 % | 37 661 |
--------------------------------------------------------------------------------
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| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Provisions | 425 | 515 | -17.5 | 425 |
| | | | % | |
--------------------------------------------------------------------------------
| Non interest bearing | 832 | 0 | n/a | 368 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Interest bearing | 1 930 | 1 227 | 57.3 % | 742 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | | 3 187 | 1 742 | 83.0 % | 1 535 |
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| Short-term liabilities | | | | |
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| Trade payables and other | 23 527 | 19 786 | 18.9 % | 20 920 |
| s-t liabilities | | | | |
--------------------------------------------------------------------------------
| Provisions | 1 135 | 1 356 | -16.3 | 850 |
| | | | % | |
--------------------------------------------------------------------------------
| S-t interest bearing | 18 717 | 13 598 | 37.6 % | 7 270 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | | 43 379 | 34 740 | 24.9 % | 29 040 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholder's equity | 86 236 | 69 704 | 23.7 % | 68 236 |
| and liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash-flow (tEUR) | 1-6/2007 | 1-6/2006 | Change % | 1-12/2006 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash-flow from | 2 746 | -4 336 | n/a | 2 675 |
| operation | | | | |
--------------------------------------------------------------------------------
| | Cash in | 58 024 | 39 234 | 47.9 % | 103 931 |
--------------------------------------------------------------------------------
| | Cash out | -55 278 | -43 570 | 26.9 % | -101 256 |
--------------------------------------------------------------------------------
| Cash-flow from | -6 153 | -3 278 | 87.7 % | -5 136 |
| investments | | | | |
--------------------------------------------------------------------------------
| | Cash in | 377 | 315 | 19.8 % | 376 |
--------------------------------------------------------------------------------
| | Cash out | -6 530 | -3 593 | 81.7 % | -5 512 |
--------------------------------------------------------------------------------
| Cash-flow from finance | 7 381 | 7 226 | 2.1 % | 731 |
--------------------------------------------------------------------------------
| | Cash in | 11 325 | 10 051 | 12.7 % | 4 161 |
--------------------------------------------------------------------------------
| | Cash out | -532 | -128 | 315.9 % | -733 |
--------------------------------------------------------------------------------
| | Paid dividend | -3 412 | -2 697 | 26.5 % | -2 697 |
--------------------------------------------------------------------------------
| Other items | -18 | 17 | n/a | -5 |
--------------------------------------------------------------------------------
| | Effect of | -18 | 17 | n/a | -5 |
| | currency rates | | | | |
--------------------------------------------------------------------------------
| Change in liquid funds | 3 956 | -372 | n/a | -1 735 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Key figures | 1-6/2007 | 1-6/2006 | Change % | 1-12/2 |
| | | | | 006 |
--------------------------------------------------------------------------------
| | Earnings per share, | 0.22 | 0.18 | 26.6 % | 0.41 |
| | EUR | | | | |
--------------------------------------------------------------------------------
| | Earnings per share | 0.21 | 0.17 | 24.6 % | 0.38 |
| | fully diluted, EUR | | | | |
--------------------------------------------------------------------------------
| | Shareholders' equity | 2.33 | 1.97 | 18.4 % | 2.22 |
| | per share, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Return on equity | 19.8 % | 18.3 % | 8.1 % | 19.7 % |
--------------------------------------------------------------------------------
| | Return on capital | 20.9 % | 19.3 % | 8.3 % | 24.3 % |
| | employed | | | | |
--------------------------------------------------------------------------------
| | Equity ratio | 46.1 % | 47.7 % | -3.3 % | 55.3 % |
--------------------------------------------------------------------------------
| | Gearing | 25.0 % | 20.1 % | 24.2 % | 3.2 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Investments, tEUR | 9 863 | 4 511 | 118.6 % | 6 160 |
--------------------------------------------------------------------------------
| | Investments % of net | 16.0 % | 9.9 % | 61.0 % | 6.1 % |
| | sales | | | | |
--------------------------------------------------------------------------------
| | Order backlog, tEUR | 25 685 | 25 663 | 0.1 % | 28 120 |
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| | Personnel, average | 666 | 590 | 12.9 % | 608 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Number of shares | 17 409 | 17 343 | 0.4 % | 17 363 |
| | (thousands) | | | | |
| | including own shares | | | | |
--------------------------------------------------------------------------------
| | Highest share price, | 12.34 | 12.75 | -3.2 % | 12.75 |
| | EUR | | | | |
--------------------------------------------------------------------------------
| | Lowest share price, | 9.99 | 6.46 | 54.6 % | 6.46 |
| | EUR | | | | |
--------------------------------------------------------------------------------
| | Average share price, | 11.31 | 9.83 | 15.1 % | 9.83 |
| | EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Turnover, in million | 3.8 | 9.2 | -58.4 % | 14.2 |
| | shares | | | | |
--------------------------------------------------------------------------------
| | Turnover, in MEUR | 43.3 | 89.5 | -51.7 % | 138.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent liabilities and pledged assets (tEUR) |
--------------------------------------------------------------------------------
| For own debt |
--------------------------------------------------------------------------------
| | Guarantees | 414 | 888 | -53.4 % | 819 |
--------------------------------------------------------------------------------
| | Other securities | 365 | 0 | n/a | 731 |
--------------------------------------------------------------------------------
| Leasing and rent | 2 550 | 2 159 | 18.1 % | 2 865 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | | 3 329 | 3 047 | 9.3 % | 4 415 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instruments (tEUR) |
| |
--------------------------------------------------------------------------------
| | Value of underlying | 9 013 | 18 212 | -50.5 % | 9 980 |
| | forward contracts | | | | |
--------------------------------------------------------------------------------
| | Market value of | 8 981 | 18 271 | -50.8 % | 10 124 |
| | forward contracts | | | | |
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| Taxes are computed on the basis of the tax on the profit for the period. |
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| Primary segments | 1-6/2007 | 1-6/2006 | Change % | 1-12/2 |
| information (tEUR) | | | | 006 |
--------------------------------------------------------------------------------
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| Broadband Cable Networks |
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| | Order intake | 52 402 | 42 603 | 23.0 % | 92 821 |
--------------------------------------------------------------------------------
| | Net sales | 54 287 | 38 080 | 42.6 % | 85 551 |
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| | EBIT | 5 890 | 3 912 | 50.6 % | 9 055 |
--------------------------------------------------------------------------------
| | EBIT% | 10.8 % | 10.3 % | 5.6 % | 10.6 % |
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| Video Networks |
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| | Order intake | 6 920 | 5 840 | 18.5 % | 14 380 |
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| | Net sales | 7 470 | 7 400 | 0.9 % | 16 222 |
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| | EBIT | -400 | 190 | n/a | 700 |
--------------------------------------------------------------------------------
| | EBIT% | -5.4 % | 2.6 % | n/a | 4.3 % |
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| Total |
--------------------------------------------------------------------------------
| | Order intake | 59 322 | 48 443 | 22.5 % | 107 |
| | | | | | 201 |
--------------------------------------------------------------------------------
| | Net sales | 61 757 | 45 480 | 35.8 % | 101 |
| | | | | | 773 |
--------------------------------------------------------------------------------
| | EBIT | 5 490 | 4 102 | 33.8 % | 9 755 |
--------------------------------------------------------------------------------
| | EBIT% | 8.9 % | 9.0 % | -1.4 % | 9.6 % |
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--------------------------------------------------------------------------------
| Information per | 4-6/07 | 1-3/07 | 10-12/06 | 7-9/06 | 4-6/06 | 7/2006- |
| quarter (tEUR) | | | | | | 6/2007 |
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| Broadband Cable Networks |
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| | Order | 19 659 | 32 743 | 29 777 | 20 441 | 18 435 | 102 620 |
| | intake | | | | | | |
--------------------------------------------------------------------------------
| | Net sales | 26 279 | 28 008 | 23 844 | 23 627 | 19 121 | 101 758 |
--------------------------------------------------------------------------------
| | EBIT | 2 585 | 3 305 | 1 849 | 3 294 | 1 909 | 11 033 |
--------------------------------------------------------------------------------
| | EBIT % | 9.8 % | 11.8 % | 7.8 % | 13.9 % | 10.0 % | 10.8 % |
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| Video Networks |
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| | Order | 3 300 | 3 620 | 4 162 | 4 428 | 3 045 | 15 510 |
| | intake | | | | | | |
--------------------------------------------------------------------------------
| | Net sales | 4 063 | 3 407 | 4 579 | 4 243 | 3 548 | 16 292 |
--------------------------------------------------------------------------------
| | EBIT | 108 | -508 | 313 | 197 | 40 | 110 |
--------------------------------------------------------------------------------
| | EBIT % | 2.7 % | -14.9 % | 6.8 % | 4.6 % | 1.1 % | 0.7 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total |
--------------------------------------------------------------------------------
| | Order | 22 959 | 36 363 | 33 939 | 24 869 | 21 480 | 118 130 |
| | intake | | | | | | |
--------------------------------------------------------------------------------
| | Net sales | 30 342 | 31 415 | 28 423 | 27 870 | 22 669 | 118 050 |
--------------------------------------------------------------------------------
| | EBIT | 2 693 | 2 797 | 2 162 | 3 491 | 1 949 | 11 143 |
--------------------------------------------------------------------------------
| | EBIT % | 8.9 % | 8.9 % | 7.6 % | 12.5 % | 8.6 % | 9.4 % |
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| Attributable to | Share | Share | Trans-la | Retained | Invested | Total |
| equity holders | capit | premiu | tion | earnings | non-restri | |
| of the parent | al | m | differen | | cted | |
| (tEUR) | | | -ces | | equity | |
| | | | | | fund | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholder's | 6 955 | 1 417 | 65 | 29 224 | 0 | 37 661 |
| equity 1.1.2007 | | | | | | |
--------------------------------------------------------------------------------
| | Translation | | | -18 | | | -18 |
| | differences | | | | | | |
--------------------------------------------------------------------------------
| | Profit of | | | | 3 826 | | 3 826 |
| | the period | | | | | | |
--------------------------------------------------------------------------------
| | Equity-sett | 12 | 87 | | -3 087 | 1 189 | -1 799 |
| | led | | | | | | |
| | share-based | | | | | | |
| | payments | | | | | | |
--------------------------------------------------------------------------------
| Shareholder's | 6 967 | 1 504 | 47 | 29 963 | 1 189 | 39 670 |
| equity | | | | | | |
| 30.6.2007 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholder's | 6 935 | 1 276 | 70 | 24 025 | 0 | 32 306 |
| equity 1.1.2006 | | | | | | |
--------------------------------------------------------------------------------
| | Translation | | | 17 | | | 17 |
| | differences | | | | | | |
--------------------------------------------------------------------------------
| | Profit of | | | | 2 997 | | 2 997 |
| | the period | | | | | | |
--------------------------------------------------------------------------------
| | Equity-sett | 7 | 45 | | -2 150 | | -2 098 |
| | led | | | | | | |
| | share-based | | | | | | |
| | payments | | | | | | |
--------------------------------------------------------------------------------
| Shareholder's | 6 942 | 1 321 | 87 | 24 872 | 0 | 33 222 |
| equity | | | | | | |
| 30.6.2006 | | | | | | |
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ACQUISITIONS 2007
The range of products and services of Broadband Cable Networks was strengthened
by acquisition of 100% of shares of Belgian DINH Telecom SA at 4 April 2007. The
purchase price was 6.1 MEUR. Treasury shares was conveyed as a part of the
payment for the consideration of 1 MEUR i.e. 92.338 numbers. The conveyance was
based on authorisation granted by the annual meeting of Teleste Corporation at 3
April 2007. The shares conveyed were measured at the average trading share price
quoted in Helsinki Stock Exchange between 5 March and 30 March 2007, which was
10.83 EUR/share. The number of shares then conveyed accounted for 0.53 per cent
of the shares of the Teleste Corporation.
The acquisition resulted in 1.785 thousand of intangible assets, which was
allocated to trade marks, customer relationships and technology. The goodwill,
amounted 460 thousand, is mainly due to synergy effects in the future.
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| 1 000 tEUR | Recognised fair |
| | values on |
| | acquisition |
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| Fair values used in consolidation | |
--------------------------------------------------------------------------------
| Trade marks (inc. in intangible assets) | 400 |
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| Customer relationship (inc. in intangible assets) | 893 |
--------------------------------------------------------------------------------
| Technology (inc. in intangible assets) | 492 |
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| Book values used in consolidation | |
--------------------------------------------------------------------------------
| Tangible assets | 481 |
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| Shares and other rights | 307 |
--------------------------------------------------------------------------------
| Inventories | 548 |
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| Trade receivables | 1 064 |
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| Other receivables | 2 850 |
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| Cash and cash equivalents | 377 |
--------------------------------------------------------------------------------
| Total assets | 7 412 |
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| Book values used in consolidation | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 253 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 464 |
--------------------------------------------------------------------------------
| Other liabilities | 1 065 |
--------------------------------------------------------------------------------
| Total liabilities | 1 782 |
--------------------------------------------------------------------------------
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| Net identifiable assets and liabilities | 5 630 |
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| Total consideration | 6 000 |
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| Other acquisition costs | 90 |
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| Goodwill on acquisition | 460 |
--------------------------------------------------------------------------------
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| Consideration paid in cash | -5 000 |
--------------------------------------------------------------------------------
| Cash and cash equivalents in acquired subsidiary | 377 |
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| Total net cash outflow on the acquisition | -4 623 |
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| Sector Dispersion | Shares | % |
--------------------------------------------------------------------------------
| Companies | 1 659 369 | 9.50% |
--------------------------------------------------------------------------------
| Financial institutions | 5 349 657 | 30.63% |
--------------------------------------------------------------------------------
| Public institutions | 2 470 738 | 14.15% |
--------------------------------------------------------------------------------
| Nonprofit organisations | 1 063 211 | 6.09% |
--------------------------------------------------------------------------------
| Private individuals | 3 137 941 | 17.97% |
--------------------------------------------------------------------------------
| Foreign and nominee-registered | 3 783 352 | 21.66% |
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| Total | 17 464 268 | 100.00% |
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| Major Shareholders | Shares | % |
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| 1. | Sampo Life Insurance Company Ltd | 1 624 200 | 9.30% |
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| 2. | Ilmarinen Mutual Pension Insurance | 1 076 538 | 6.16% |
| | Company | | |
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| 3. | Kaleva Mutual Insurance Company | 785 900 | 4.50% |
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| 4. | FIM Fenno Mutual Fund | 542 639 | 3.11% |
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| 5. | Aktia Capital Mutual Fund | 521 450 | 2.99% |
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| 6. | State Pension Fund | 500 000 | 2.86% |
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| 7. | Op-Suomi Pienyhtiöt | 478 289 | 2.74% |
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| 8. | Varma Mutual Pension Insurance Company | 474 150 | 2.71% |
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| 9. | Fondita Nordic Small Cap Placfond | 360 000 | 2.06% |
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| 10. | Teleste Corporation | 352 482 | 2.02% |
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FOR MORE INFORMATION:
Mr Jukka Rinnevaara President and CEO, tel +358 2 2605 866 or +358 400 747 488
DISTRIBUTION:
OMX Nordic Exchange Helsinki Oy
Media
www.teleste.com