QPR SOFTWARE PLC STOCK EXCHANGE RELEASE 25 July 2007
at 10.00 AM
INTERIM REPORT JANUARY 1 - JUNE 30, 2007
QPR SOFTWARE PLC´S NET SALES REACHED MEUR 2.2 IN THE SECOND
QUARTER, OPERATING PROFIT WAS 10.5% OF NET SALES
JANUARY-JUNE NET SALES WERE MEUR 3.9, OPERATING PROFIT 6.5% OF
NET SALES, EARNINGS PER SHARE WAS 0.02 EURO
QPR Software Group's net sales grew 6.9% in the second quarter of
2007 and reached MEUR 2.225 (2.081). Net sales from international
operations increased 9.9% compared to the corresponding period
previous year and were MEUR 1.643 (1.494). Operating profit grew
MEUR 2.3% and reached MEUR 0.233 (0.228), which corresponded to
10.5% (11.0%) of the total net sales.
In January-June, the Group net sales reached MEUR 3.859 (3.752)
and grew 2.9%. Operating profit reached MEUR 0.252 (0.460),
corresponding to 6.5% (12.3%) of the net sales. Earnings per
share were 0.02 (0.03). Net sales from QPR Software´s
international operations grew 14.2% in January-June and the Group
delivered software licenses to 45 countries. The international
operations represented 71.6% (64.5%) of the net sales.
QPR Software estimates its net sales and operating profit in year 2007
to increase from the previous year.
KEY FIGURES
(EUR 1000) 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
2007 2006 % 2007 2006 % 2006
Net Sales 2 225 2 081 6.9 3 859 3 752 2.9 6 901
Operating profit 233 228 2.3 252 460 -45.2 517
% of net sales 10.5 11.0 6.5 12.3 7.5
Profit before tax 241 236 2.0 275 494 -44.2 577
Profit for the period 183 184 -0.2 203 370 -45.2 702
% of net sales 8.2 8.8 5.2 9.9 10.2
Earnings per share, EUR 0.02 0.03 -45.7 0.06
EPS (diluted), EUR 0.02 0.03 -45.3 0.06
Equity per share, EUR 0.19 0.18 2.7 0.21
Cash flow from operating activities 325 650 976
Cash and cash equivalents 1 389 1 748 1 884
Net liabilities -996 -1 271 -1 408
Gearing, % -42.9 -57.1 -54.4
Equity ratio, % 52.0 56.1 59.0
Return on equity, % 16.5 34.3 30.0
Return on investment, % 19.3 34.7 19.2
OUTLOOK FOR YEAR 2007
QPR Software´s target is to grow its sales especially in the
international markets in 2007. The Group's delivery and service
capabilities are strengthened cost-efficiently in cooperation with
the key business partners in the most important export markets.
The management of QPR Software estimates an increase from the
previous year to the Group's net sales and operating profit in
2007. 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.
REPORTING
This interim report complies with interim reporting standard IAS
34 implemented in EU. The accounting- and valuation principles are
the same as they were in 2006 financial statements. This interim
report is not audited.
BUSINESS HIGHLIGHTS IN THE SECOND QUARTER
QPR Software Group's net sales rose to MEUR 2.225 (2.081).
Software license and service sales in Finland decreased slightly
compared with the corresponding quarter previous year, whereas the
Group's international operations continued to grow sales both in
software licenses and maintenance services.
The Group delivered software licenses to 33 different countries in
the second quarter. Largest net sales were in South Africa and
Japan. The success of South Africa was positively affected by a
significant software license deal to a company operating in
financial sector. QPR Software Plc´s subsidiary in South Africa
started its operations during the second quarter and the local
sales resources were increased. In Japan, sales development for
QPR´s and its local partner´s solution to respond to the
challenges of the local security market law was very good. The new
security markets law came in force at the beginning of this year
in Japan, and QPR estimates that demand for the said software
solution remains good among the Japanese listed companies during
this year and next year.
Among others, the following customers acquired QPR software
products in the second quarter: Brasil Telecom, Emirates Identity
Authority, Ferris University (USA), InBev (Belgium), Kameda General
Hospital (Japan), Newcastle upon Tyne Hospitals NHS Foundation
Trust (UK), Onninen, Raisio Yhtymä, San Diego County Airport (USA)
and Tata Teleservices (India).
Net sales from international operations grew 9.9% in the second
quarter compared to the corresponding period last year and were
MEUR 1.643 (1.494), and corresponded to 73.8% (71.8%) of the
Group´s total net sales.
In the second quarter, the software license net sales rose to MEUR
1.338 (1.204). Software license sales and maintenance service sales
represented 90.0% (87.8%) of the total net sales of the Group.
The geographical break-down of the net sales was as follows, (EUR 000):
4-6/ Share-% 4-6/ Share-% Change-%
2007 2006
Finland 582 26.2 587 28.2 -0.9
International 1 643 73.8 1 494 71.8 9.9
Total 2 225 100.00 2 081 100.0 6.9
The Groups net sales are accrued in its entirety from software
business, with the following break-down during the review period,
(EUR 000):
4-6/ Share-% 4-6/ Share-% Change-%
2007 2006
Software licenses 1 338 60.1 1 204 57.8 11.1
Maintenance services 664 29.8 623 29.9 6.5
Professional services 224 10.0 254 12.2 -12.0
Total 2 225 100.0 2 081 100.0 6.9
Operating profit of the second quarter was MEUR 0.233 (0.228),
representing 10.5% (11.0%) of net sales. Operating profit
was negatively affected by the recorded bad debt provisions in the
second quarter of MEUR 0.128 (0.092). Net profit of the second quarter
was MEUR 0.183 (0.184), representing 8.2% (8.8%) of net sales.
NET SALES AND FINANCIAL PERFORMANCE 1-6/2007
In January-June QPR Software Group´s net sales grew 2.9% and
reached MEUR 3.859 (3.752). Net sales from international
operations increased 14.2% and the Group delivered software
licenses to 45 countries in total. The share of international
business rose to 71.6% (64.5%) of the net sales.
Geographically, the biggest export markets during the period January
through June were Japan, England, Sweden and South Africa.
The geographical break-down of the net sales was as follows, (EUR 000):
1-6/ Share-% 1-6/ Share-% Change-% 1-12/
2007 2006 2006
Domestic 1 096 28.4 1 333 35.5 -17.8 2 288
International 2 763 71.6 2 419 64.5 14.2 4 613
Total 3 859 100.0 3 752 100.0 2.9 6 901
The Group´s net sales are accrued in its entirety from software
business, with the following break-down during the review period,
(EUR 000):
1-6/ Share-% 1-6/ Share-% Change-% 1-12/
2007 2006 2006
Software licenses 2 079 53.9 1 969 52.5 5.6 3 256
Maintenance services 1 331 34.5 1 204 32.1 10.6 2 509
Professional services 449 11.6 579 15.4 -22.6 1 136
Total 3 859 100.0 3 752 100.0 2.9 6 901
Operating profit in the review period was 0.252 (0.460), and
its share from net sales was 6.5% (12.3%). Net profit was MEUR
0.203 (0.370), representing 5.2% (9.9%) of the Group´s
total net sales.
The retained losses, for which no entry has been made in the
parent company's books as deferred tax assets, neither in the
closure of the review period nor earlier, are approximately MEUR
2.0, corresponding to approximately MEUR 0.5 deferred tax assets.
During January through June 2007, the deferred tax assets have
been diminished by 46 thousand euros, based upon the taxable
income during that period. In the Group´s balance sheet as of
June 30, 2007, the remaining amount of deferred tax is 284
thousand euros.
Diluted earnings per share were EUR 0.02 (0.03).
FINANCE AND INVESTMENTS
The value of the total assets was MEUR 6.191 (5.697) at the end of
June 2007. The Group's investments in fixed assets during the
review period totaled to MEUR 0.279 (0.155).
Cash flow from operating activities was positive during the review
period and reached MEUR 0.325 (0.650). Cash and cash equivalents
at the end of the review period were MEUR 1.389 (1.748).
The Group's interest-bearing liabilities decreased by MEUR 0,083
during the review period and were MEUR 0,393 (0,476). Gearing was
-42.9% (-57.1%). Return on investment was 19.3% (34.7%).
The total amount of dividend paid was MEUR 0.489 (0.243) in the
review period.
Short-term liabilities contain deferred revenue in total of MEUR
1.728 (1.725). At the end of review period, quick ratio was 2.8 (3.9).
At the end of the review period, the Group's equity stood at MEUR
2,320 (2,228), and the Group's equity ratio reached 52.0% (56.1%).
Return on equity was 16.5% (34.3%).
PERSONNEL
At the end of the review period, the Group employed a total of 63
people (56).
For incentive and commitment purposes, the Group has personnel
bonus scheme covering the whole personnel and personnel stock
option plan.
TRANSACTIONS OF THE INSIDERS
QPR Software Plc`s Board members and their related parties held on
June 30, 2007 in total of 2,253,090 QPR Software Plc´s shares,
which represented 18.7% of Group´s shares and votes.
Corresponding ownership was 18.3% on December 31, 2006. These
figures include their own holdings and the holdings of their spouses,
persons under guardianships and controlled corporations.
The Board members and managing director (and their related parties)
did not hold any issued options as at June 30, 2007.
The Group`s management, Board members, managing director and
executive management team, received salaries, compensation fees and
fringe benefits in total of EUR 327 thousand (321) in the review period.
PRODUCT DEVELOPMENT
The amount of R&D expenses in the review period totaled to MEUR
0.736 (0.687), representing 19.1% (18.3%) of net sales.
During the review period, R&D expenses have been capitalized for a
total amount of 117 thousand euros (35). The depreciation period
of capitalized R&D expenses is 4 years.
Product development employed 14 (12) people at the end of the
review period, corresponding to 22% of the total personnel. The
core know-how of product development remains centralized in the
own organization. Long-term co-operation continued with
established subcontractors.
In the review period, Research & Development activities
focused on the development work of the QPR 7 product family and on
the completion of a new product version to be released in the
second half of 2007. The new version will broaden the scope of the
QPR software offering particularly in the area of Business Process
Management (BPM) by introducing full support for the BPMN and BPEL
standards and workflow modeling. As part of the new release, the
QPR product family will also become fully compatible with
Microsoft Windows Vista™. As a proof of this compatibility QPR
ProcessGuide was Certified for Microsoft Windows Vista™ in the review
period.
QPR 7 suite is an interactive, easy-to-use, ready-to-run software
solution that combines strategic performance management (QPR
ScoreCard), business process management (QPR ProcessGuide) and
business analytics (QPR FactView) into one complete collaborative
management solution (QPR Collaborative Management Suite). With the
help of QPR software solutions, organizations improve their
business processes and bring clarity to organizations' objectives,
support their people's commitment hereto and improve their ability
to change. The software products developed by QPR are fast to
implement and adapt to the changes in the customer's business
environment and the management methodologies deployed. QPR´s
software applications are scalable from a single-user to an
organization-wide management system, and integrate seamlessly to
the customer's other information systems.
QPR 7 product family has been localized into 22 languages.
DECISIONS MADE BY THE ANNUAL SHAREHOLDERS' MEETING, AND GOVERNANCE
The Annual Shareholders' Meeting held on 14 March 2007 made the
following decisions:
The Annual Shareholders' Meeting confirmed the company's financial
statements and the group's financial statements for the financial
period 1 January - 31 December 2006 and released the Board of
Directors and the Managing Director from liability.
The Annual Shareholders' Meeting approved the Board's proposal
that a per-share dividend of EUR 0.04, a total of EUR 489,430.56,
be paid for the financial year 2006. The record date for the
payment of dividend was 19 March 2007 and the dividend payment
date was 26 March 2007.
The Annual Shareholders' Meeting resolved that the Board of
Directors consist of five (5) ordinary members. The Annual
Shareholders' Meeting elected the following members to the Board
of Directors: Vesa-Pekka Leskinen, Asko Piekkola, Topi Piela,
Jarmo Niemi and Niklas Sonkin. In its first meeting immediately
following the Annual Shareholders' Meeting, the Board of Directors
elected Vesa-Pekka Leskinen as Chairman of the Board.
KPMG Oy Ab, Authorized Public Accountants, continues as QPR
Software Plc's auditor, and Authorized Public Accountant Sixten
Nyman as the principle auditor.
The Annual Shareholders' Meeting decided that the emoluments to
the Chairman of the Board and the other Members of the Board shall
be the same as in previous year.
The Annual Shareholders' Meeting decided to renew the articles of
association. The primary content of the amendment was as follows:
- The provisions on minimum and maximum share capital were
deleted (3§);
- The provisions on minimum and maximum amount of shares were
deleted (4 §);
- The provisions on the record date were deleted (6§);
- The provisions on representation of the company were amended
to correspond to the terminology of the new Companies Act 8§);
- The Articles of Association were amended so that the company
has one (1) auditor, which is required to be an auditing company
approved by the Central Chamber of Commerce (9§);
- The agenda of the Annual Shareholders Meeting was amended to
Correspond to the contents of the new Companies Act and the
Article 13 of the current Articles Of Association - according
to which the Annual Shareholders' Meeting shall be held in
Helsinki, Espoo or Vantaa as decided by the Board of Directors -
was included to the same section (11§); and
- The numbering of the Articles of Association was amended
accordingly.
The company's articles of association is available in its entirety
on the investors section of the company's internet pages, and on
the stock exchange release, published by the company on 14 March
2007.
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. 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 250,000 own shares held by the company can be
conveyed. The authorization shall be in force until the next
Annual Shareholders' Meeting. The conditions of the authorization
of the Board are available in their entirety on the investors
section of the company's internet pages, and on the stock exchange
release, published by the company on 14 March 2007.
The Annual Shareholders' Meeting decided to authorize the Board of
Directors to decide on an acquisition of own shares. 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 shall be in force until the next Annual
Shareholders' Meeting. The conditions of the authorization of the
Board are available in their entirety on the investors section of
the company's internet pages, and on the stock exchange release,
published by the company on 14 March 2007.
COMPANY SHARES AND TRADING IN COMPANY SHARES 1-6/2007
The Company's share capital at the end of the review period was
EUR 1,359,089.93 divided into 12,355,363 shares, the book-counter
value being EUR 0.11.
The share capital was increased once during the review period when
119,599 new shares were subscribed based on the stock option
programs 2003/II, 2003/III and 2005/I. The corresponding increase
of EUR 13,155.89 in the Company's share capital was entered in the
Finnish trade register on June 11, 2007.
At the end of review period, the Company had a total of 685
shareholders. During the review period, trading in company shares
amounted to MEUR 1.335, i.e. an average of EUR 10,766 per trading
day. Trading in shares totaled 1,606,675 shares, giving an average
of 12,957 shares per trading day. Turnover in shares corresponds
to 13% of the total shares and the average price was EUR 0.83 per
share.
At the end of the review period, the total market value of the
company shares was MEUR 9.267 at the review period's closing price
of EUR 0.75.
OWN SHARES
QPR Software Plc has one share class and company has repurchased
23,600 of its shares during the review period for an average
price of EUR 0.78 per share.
At the end of the review period the company held 23,600 of its shares
with a total nominal value of EUR 2,596 and a total purchase price
of EUR 18,318. These shares represent 0.2% of the company´s
capital stock. The purchase cost has been deducted from
shareholders´equity in the consolidated financial statements.
The Board of Directors has been granted by the Annual Shareholder´s
Meeting of 14 March 2007, a share repurchase authorization, valid
until next Annual Shareholders´ Meeting, to repurchase company shares
in total of 250,000 shares at maximum.
STOCK OPTION PROGRAMS
During the review period, the Company had three prevailing stock
option programs. Each stock option issued under these stock option
programs entitle to subscribe one new share in the Company.
At the end of the review period there were no unconverted stock options
left of the stock option program 2003/II, and QPR Software Plc or any
of its subsidiaries held no more stock options of the stock option
program 2003/II.
At the end of the review period, based on stock option program 2003/III,
in total of 202,500 hitherto unconverted stock options have been issued,
and 121,290 stock options are held by the Company's subsidiary.
Based on stock option program 2005/I, there are no more
unconverted stock options as on 30 June 2007. QPR Software Plc´s subsidiary
held still 150,401 stock options, but their subscription period has ended.
At the end of the review period, in total of 202,500 hitherto
unconverted stock options have been issued, and in addition, in
total of 121,290 stock options were in the possession of the
Company's subsidiary, to be given to present and future employees
and management.
OTHER EVENTS IN THE REVIEW PERIOD
QPR Software has on 21 May 2007 appointed M.Sc.(Eng) Matti Erkheikki
as Vice President for Business Operations in Finland and member of
the executive management team as of 1st July, 2007.
CORPORATE GOVERNANCE
QPR Software Plc complies with the Helsinki Exchanges' Guidelines
for Insiders entered into force on 1 January 2006 and the
Recommendation on Corporate Governance entered into force on 1
July 2004. The Company's Corporate Governance Statement is
available in the Investor sector of the Company's website.
EVENTS AFTER THE REVIEW PERIOD
No essential events have occured after the review period.
RISKS AND FACTORS OF UNCERTAINTY IN THE NEAR FUTURE
In the financial statements of 2006 the risks related to the company's
activities have been reported in more detail. It is the duty of the Board
of Directors to approve QPR's risk management and reporting procedures, and to
monitor the adequacy, appropriateness and effectiveness of the company's risk
management. Risk management relating to company's business operations is
supported by continuous development of the company´s operating processes.
Reasonable credit risk concerning individual business partners is
characteristic to any international business.QPR seeks to limit this
credit risk by continuous monitoring of receivables and credit limits.
The growth of QPR´s international business and growing average deal size
have caused the amount of due accounts receivable to increase.
To prepare for possible credit losses, the Group recorded MEUR 0.128
bad debt provision during the second quarter.
FUTURE OUTLOOK
The management of QPR Software Group estimates, based on its view of the
business for the rest of the year, that net sales and operating profit in year
2007 will increase from the previous year. Net sales and operating profit
are estimated to be emphasized, similar to the previous years, to the last
quarter of the year. QPR Software´s target is to grow its sales
especially in the international markets in 2007. The Group's delivery
and service capabilities are strengthened cost-efficiently in cooperation
with the key business partners in the most important export markets.
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.
The Company aims at strengthening its product offering portfolio
by establishment of business alliances with selected software
product vendors, and by investments into its internal product
development. In this Autumn, the Company complements its product
offering portfolio by launching an OEM-technology based software
product, QPR WorkFlow, for effective execution of business process.
The Company's product development will continue to
focus on developing ready-to-run software products for business
performance management and business process management. Product
versions will be released to offer added value through expansion
to new solution areas, and by introducing further versatility of
product functionality.
In addition, the Company further intends to follow the
developments in the re-structuring of software industry, and aims
to actively participate in it.
ENCLOSURES: TABLE PART
GROUP`S INCOME STATEMENT 1.1.-30.6.2007
(EUR 1000) 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2007 2006 2007 2006 2006
NET SALES 2 225 2 081 3 859 3 752 6 901
Other operating income 17 2 36 161 268
Material and services 383 273 456 393 736
Employee benefits expenses 1 059 960 2 103 1 907 3 846
Depreciation 48 49 90 98 206
Other operating expenses 518 572 993 1 055 1 864
OPERATING PROFIT 233 228 252 460 517
Finance income and expenses 8 8 23 33 60
PROFIT BEFORE TAX 241 236 275 494 577
Income tax expense -58 -53 -73 -124 125
PROFIT FOR THE PERIOD 183 184 203 370 702
Sharing of profit:
To the parent company's
shareholders 183 184 203 370 702
Earnings per share (diluted),EUR 0.02 0.03 0.06
Earnings per share, EUR 0.02 0.03 0.06
GROUP`S BALANCE SHEET 30.6.2007
NON-CURRENT ASSETS
(EUR 1000) 30.6.2007 30.6.2006 31.12.2006
NON-CURRENT ASSETS
Tangible assets 343 290 307
Other intangible assets 365 131 213
Trade and other receivables 75 266 75
Deferred tax assets 284 64 330
NON-CURRENT ASSETS 1 067 752 925
CURRENT ASSETS
Trade and other receivables 3 734 3 197 3 104
Cash and cash equivalents 1 389 1 748 1 884
CURRENT ASSETS 5 123 4 945 4 988
TOTAL ASSETS 6 191 5 697 5 913
EQUITY AND LIABILITIES
(EUR 1000)
EQUITY
Share capital 1 359 1 341 1 346
Share premium 231 189 195
Reserve fund 22 21 21
Translation difference -60 -52 -49
Retained earnings 768 729 1 072
PARENT COMPANY'S SHAREHOLDERS'
INTEREST 2 320 2 228 2 586
TOTAL EQUITY 2 320 2 228 2 586
NON-CURRENT LIABILITIES
Interest-bearing liabilities 285 476 285
NON-CURRENT LIABILITIES 285 476 285
CURRENT LIABILITIES
Trade and other payables 3 477 2 993 2 850
Interest-bearing liabilities 108 0 191
CURRENT LIABILITIES 3 585 2 993 3 041
LIABILITIES 3 871 3 470 3 327
TOTAL EQUITY AND LIABILITIES 6 191 5 697 5 913
GROUP`S CASH FLOW STATEMENT
(EUR 1000) 1.1.-30.6/ 1.1.-30.6/ 1.1.-31.12/
2007 2006 2006
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period 202 370 702
Adjustment for the profit
Deprecation 90 98 206
Non-cash transactions 73 -102 -354
Changes in working capital:
Changes in trade and other receivables -663 -44 55
Changes in trade payables and other 627 294 323
liabilities
Interest expense and other -4 7 5
financial liabilities
Interest income and other 27 26 55
and other financial income
Income taxes paid -27 2 -16
Net cash from operating activities 325 650 976
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of tangible assets -94 -93 -173
Purchases of tangible assets -185 -62 -188
Net cash used in investing activities -279 -155 -361
CASH FLOWS FROM FINANCING ACTIVITIES
Equity issued 49 13 25
Repayments of financial leases 0 -2 0
Repayments of long term borrowings -83 -98 -95
Purchase of own shares -18 0 0
Dividends paid -489 -243 -243
Net cash used in financing activities -542 -330 -313
Net change in cash and cash equivalents -495 166 302
Cash and cash equivalents at the
beginning of period 1 884 1 582 1 582
Cash and cash equivalents at the
end of period 1 389 1 748 1 884
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´EQUITY 1.1.-30.6.2007
Share- Trans-
holders' Share Share lation Retained
equity issue premium differ. earnings Total
SHAREHOLDERS´ 1 346 0 217 -49 1 072 2 586
EQUITY 1.1.2007
Shares issued 13 13
Issue premium 36 36
Employees options 0 0
Dividends paid -489 -489
Translation differences -11 -11
Purchase of own shares -18 -18
Profit for the period 203 203
CHANGE IN SHAREHOLDERS' 13 0 36 -11 -304 -266
EQUITY 1-6
EQUITY 30.6.2007 1 359 0 253 -60 768 2320
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´EQUITY 1.1.-30.6.2006
Share- Trans-
(EUR 1.000) holders' Share Share lation Retained
equity issue premium differ. earnings Total
EQUITY 1.1.2006 1 335 0 203 -48 602 2 091
Shares issued 6 6
Issue premium 7 7
Dividends paid -243 -243
Translation differences -4 -4
Profit for the period 370 370
CHANGE IN SHAREHOLDERS' 6 0 7 -4 127 136
EQUITY 1-6
EQUITY 30.6.2006 1 341 0 210 -52 729 2 228
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´EQUITY 1.1.-31.12.2006
Share- Trans-
(EUR 1.000) holders' Share Share latio Retained
equity issue premium differ. earnings Total
EQUITY 1.1.2006 1 335 0 203 -48 602 2 091
Shares issued 11 11
Share premium 14 14
Employees options 10 10
Dividends paid -243 -243
Translation differences -1 -1
Profit for the period 702 702
CHANGE IN SHAREHOLDERS' 11 0 14 -1 470 494
EQUITY 1-12
EQUITY 31.12.2006 1 346 0 217 -49 1 072 2 586
GROUP´S COMMITMENTS AND CONTINGENT LIABILITIES
(EUR 000) 30.6.2007 31.12.2006
Commitments
Lease leabilities 566 636
Total 566 636
Current lease liabilities
Lease liabilities maturing during one year 30 15
Lease liabilities maturing 2-5 years 36 18
Total 66 33
Total commitments and contingent 631 669
liabilities
GROUP`S INTANGIBLE AND TANGIBLE ASSETS
Intangible assets:
Computer software and R&D expenses
(EUR 000) 30.6.2007 30.6.2006 31.12.2006
Cost 1.1. 437 238 238
Increase 185 63 199
Tangible assets:
Machinery and equipments
(EUR 000) 30.6.2007 30.6.2006 31.12.2006
Cost 1.1. 748 586 586
Increase 94 93 162
GROUP INCOME STATEMENT PER QUARTER
1-3/ 1-3/ 4-6/ 4-6/ 7-9/ 10-12/
(EUR 1000) 2007 2006 2007 2006 2006 2006
Net sales 1 634 1 671 2 225 2 081 1 362 1 787
Other operating income 19 159 17 2 0 107
Material and services 73 120 383 273 126 217
Employee benefits expenses 1 044 948 1 059 960 799 1 140
Depreciation 42 48 48 49 50 58
Other operating expenses 476 482 518 572 374 436
OPERATING PROFIT 19 232 233 228 13 43
Financial income/expenses 15 25 8 8 12 15
Profit before tax 34 257 241 236 26 58
Income tax -15 -71 -58 -53 -7 256
PROFIT FOR THE PERIOD 19 186 183 184 18 314
GROUP KEY FIGURES
Key figures illustrating the financial development of the Group
EUR (000) 1-6/ 1-6/ 1-3/ 1-3/ 2006
2007 2006 2007 2006
Net sales 3 859 3 752 1 634 1 671 6 901
Growth of net sales % 2.9 15.8 -2.2 5.3 8.4
Operating profit 252 460 19 232 517
% of net sales 6.5 12.3 1.2 13.9 7.5
Profit or loss before tax 275 494 34 257 577
% of net sales 7.1 13.2 2.1 15.4 8.4
Profit for the period 203 370 19 186 702
% of net sales 5.2 9.9 1.2 11.1 10.2
Return on equity,% 16.5 34.3 3.3 35.9 30.0
Return on investment,% 19.3 34.7 5.1 0.4 19.2
Interest bearing liabilities 393 476 476 563 476
Cash and cash equivalents 1 389 1 748 1 244 1 932 1 884
Net liabilities -996 -1 271 -768 -1 369 -1 408
Equity 2 320 2 228 2 111 2 059 2 586
Gearing,% -42.9 -57.1 -36.4 -66.6 -54.4
Equity ratio, % 52.0 56.1 52.0 53.9 59.0
Total balance sheet 6 191 5 697 5 876 5 534 5 913
Investment in non-current assets 279 155 104 73 361
% of net sales 7.2 4.1 6.4 4.4 5.2
Research and development expenses 736 687 344 411 1 245
% of net sales 19.1 18.3 21.0 24.6 18.0
Personnel average for period 61 56 59 55 59
Personnel at the beginning of 58 56 58 56 56
period
Personnel at the end of period 63 56 59 54 58
Earnings per share ,e 0.02 0.03 0.00 0.02 0.06
Earnings per share /diluted), e 0.02 0.03 0.00 0.02 0.06
Equity per share, e 0.19 0.18 0.17 0.17 0.21
*) Return on equity and return on investments 1-6/2006 have been
adjusted to correspond the yearly returns.
CALCULATION OF KEY INDICATORS
Return on equity (ROE), % (counted on yearly level):
Profit/loss before tax - taxes x 100
__________________________________________________
Shareholders' equity + minority interest (average)
Return on investment (ROI), (counted on yearly level) %:
Profit/loss before tax + interest and other financial expenses x 100
____________________________________________________________________
Balance sheet total - non-interest bearing liabilities (average)
Equity ratio, %:
Shareholders' equity + minority interest x 100
______________________________________________
Balance sheet total - advances received
Gearing, %:
Interest bearing liabilities - cash and cash equivalents x 100
______________________________________________________________
Shareholders' equity + minority interest
Earnings per share, Euro:
Profit before tax - taxes -/+ minority interest
___________________________________________________________
Adjusted number of shares over the financial year (average)
Equity per share, Euro:
Shareholders' equity
____________________________________________________________
Adjusted number of shares at the end of the financial period
Quick ratio:
Current assets - inventories
_______________________________________
Current liabilities - advances received
*) Return on equity and return on investment are adjusted to
correspond the yearly level returns by multiplying the profit for
period.
MAJOR SHAREHOLDERS 30.6.2007
Number of Shares and votes
shares %
Ulkomarkkinat Oy 1 600 000 12.95 %
Vesa-Pekka Leskinen 851 400 6.89 %
+ Kauppamainos Oy 707 700 5.73 %
Total 1 559 100 12.62 %
Alesco S.A 1 300 000 10.52 %
Jouko Pelkonen 359 000 2.91 %
Pohjolan Rahoitus Oy 414 100 3.35 %
Electrosale Oy 313 000 2.53 %
Total 1 086 100 8.79 %
Kari Junkkonen 512 016 4.14 %
Fortel Invest Oy 425 326 3.44 %
Fides New Media, investment fund 376 000 3.04 %
Procurator-Holding Oy 338 000 2.74 %
Päivi Marttila 293 072 2.37 %
Edina Oy 33 900 0.27 %
Total 326 972 2.65 %
Jaakkola Jari 260 000 2.10 %
Value FM Oy 57 000 0.46 %
Total 317 000 2.57 %
Asko Piekkola 316 438 2.56 %
Pääkkönen Esa 246 054 1.99 %
other shareholders 3 952 357 31.99 %
Total 12 355 363 100.00 %
Helsinki 25 July 2007
QPR SOFTWARE PLC
The Board of Directors
QPR Software Plc´s next interim report 1-9/2007 will be published
on Thursday, 25 October 2007.
For more information, please contact:
QPR SOFTWARE PLC
Matti Kanninen, CEO
Tel. +358 40 545 5877
matti.kanninen@qpr.com
http://www.qpr.com
QPR SOFTWARE PLC´S NET SALES REACHED MEUR 2.2 IN THE SECOND QUARTER, OPERATING PROFIT WAS 10.5% OF NET SALES
| Source: QPR Software Oyj