Stonesoft Corporation Stock Exchange Release 15 February 2008
CORRECTIONS TO STONESOFT CORPORATION'S FINANCIAL STATEMENTS RELEASE
FOR JANUARY-DECEMBER 2007
There have been two corrections to the Financial Statements release
of Stonesoft Corporation published on 15 February 2008.The Assets
part of the information in the Balance Sheet was missing and there
was a language error in executive management section.
The corrected Financial Statements Release:
STRONG GROWTH IN THE LAST QUARTER OF THE YEAR
A press conference for analysts and investors will be held on 15
February at 10.30 am at the Stonesoft headquarters, Itälahdenkatu 22
A, 00210 Helsinki.
The sales of Stonesoft's main products, the StoneGate product line,
increased by 59% and the overall net sales increased by 35% during
the last quarter of the year compared to the corresponding period in
the previous year. The company consolidated its market position from
a network security provider to a provider of integrated network
security and business continuity, which was shown as strong growth in
the net sales and the sales pipeline.
SUMMARY
The comparable figures from the corresponding period in the previous
year are in brackets and refer to the figures of continuing
operations.
October - December 2007
- Net sales EUR 5.8 million (EUR 4.3 million), growth 35%
- Stonesoft's core business, the sales of the StoneGate product
family, EUR 3.6 million (EUR 2.3 million), growth 59%
- Operating result EUR -1.2 million (EUR -1.9 million)
- Operating result as percentage of net sales -21% (-44%)
- Earnings per share -0.02 EUR (-0.03 EUR)
- Cash flow EUR -0.9 million (EUR -1,6 million)
January - December 2007
- Net sales EUR 19.0 million (EUR 16.5 million), growth 15%
- Stonesoft's core business, the sales of the StoneGate product
family, EUR 10.6 million (EUR -8.3 million), growth 28%
- Operating result EUR -6.5 million (EUR -6.6 million)
- Operating result as percentage of net sales -34% (-40%)
- Earnings per share EUR -0.11 (EUR -0.11)
- Equity per share 0.10 EUR (0.17 EUR)
- Cash flow EUR -6.2 million (EUR -7.4 million)
- Liquid assets at the end of the period EUR 8.2 million (EUR 14.4
million)
CEO Ilkka Hiidenheimo
Stonesoft increased the net sales by 15% and the sales of the
company's main product StoneGate by 28% during the year 2007. During
the last quarter, StoneGate sales were the highest ever in the
company's history and exceeded the sales in the corresponding period
in the previous year by 59%. The growth of the sales during the last
quarter was based on successes on several market areas, not on
individual large deals.
In order to further improve the profitability of the company through
increased sales we have made strong investments in extending our
product line and increasing our competitiveness, among other things
by launching SSL VPN solutions and a cost-effective FW-100 product
suitable for remote offices and locations.
Enhanced efficiency of sales management and increased communications
has resulted in a steady growth of our sales pipeline. The company
has increased visibility in its main market areas and the awareness
of the company and its products among the customers has grown.
During 2007, the company's position from a network security provider
to a provider of integrated network security and business continuity
was confirmed. The company aims to further strengthen this position
by launching new StoneGate products, among others, to MSPs (managed
service providers) and MSSPs (managed security services providers),
whose market position is still growing strongly. We are also among
the first to launch new products to VMware virtual environments to
respond to the rapidly increasing demand of virtualization of IT
infrastructure. The virtual firewall will be launched during the
first quarter and the virtual IPS solution for protecting the
internal network later during the year 2008.
The comparable cash flow developed positively during the last quarter
and the positive development is estimated to continue during the
first quarter of 2008. In order to strengthen the company's capital
structure and to ensure the positive development of the company's
strategy and growth plan also in the future, the main shareholders of
the company announced in October 2007 their willingness to invest at
least EUR 3 million in the company in the form of a convertible bond.
Based on this information, the Board of Directors has started
preparations with the intention to introduce a proposal of the
convertible bond to the Annual General Meeting of the shareholders in
the spring of 2008.
NET SALES AND RESULT
October - December 2007 (hereinafter 'reporting period')
The group's net sales totaled EUR 5.8 million (EUR 4.3 million). The
growth compared to the corresponding period in the previous year was
EUR 1.5 million, or 35%. The operating result (EBIT) was EUR -1.2
million (EUR -1.9 million) and the result after taxes was EUR -1.1
million (EUR -2.0 million).
Stonesoft's core business, the sales of the main portfolio StoneGate,
which comprises of a firewall, VPN, SSL VPN and IPS (intrusion
detection and prevention system), totaled EUR 3.6 million (EUR 2.3
million), an increase of 59% compared to previous year's
corresponding quarter.
The geographical distribution of net sales was as follows: EMEA
(Europe, Middle East and Africa) 78% (80%), Americas (North and South
America) 18% (14%) and APAC (Asia-Pacific) 4% (6%).
January - December 2007 (hereinafter 'fiscal period')
The group's net sales totaled EUR 19.0 million (EUR 16.5 million).
The growth compared to the corresponding period in the previous year
was EUR 2.5 million, or 15%. The operating result (EBIT) was EUR -6.5
million (EUR -6.6 million).
The sales of the main portfolio StoneGate totaled EUR 10.6 million
(EUR 8.3 million), an increase of 28% compared to previous year.
The geographical distribution of net sales was as follows: EMEA
(Europe, Middle East and Africa) 74% (70%), Americas (North and South
America) 21% (22%) and APAC (Asia-Pacific) 5% (8%).
The operating result (EBIT) grew by EUR 0.1 million compared to the
previous year. The result after taxes was EUR -4.2 million (EUR -6.4
million).
Finance and investments
At the end of reporting period, the group's total assets were EUR
17.7 million (EUR 24.5 million). The equity ratio was 52% (66%) and
gearing (the ratio of net debt to shareholder's equity) -1.46
(-1.50). Consolidated liquid assets of the group at the end of
reporting period totaled EUR 8.2 million (EUR 14.4 million).
Investments in tangible and intangible assets were EUR 0.5 million
(EUR 0.4 million).
DEVELOPMENT OF BUSINESS OPERATIONS
Main business events in 2007
- Swisscom Mobile chose StoneGate firewalls to protect their network
infrastructure.
- Stonesoft extended its product offering to mobile users. The
company signed a cooperation agreement with Portwise AB, which
specializes in a browser-based SSL VPN solution for mobile and remote
use. Deliveries of StoneGate SSL VPN solution for mobile users
started in June.
- French LPG (gas) distributor Antargaz selected StoneGate firewalls
to protect their network architecture.
- Stonesoft launched first members of the new StoneGate product line,
StoneGate IPS-6000 and FW-5100 products for large and demanding
network environments.
- Stonesoft launched the new StoneGate firewalls FW-1200, FW-1050 and
FW-1020 and StoneGate IPS-2000, to secure flexibly the growing and
changing networks.
- Stonesoft complemented its StoneGate secure connectivity solution
by new features. StoneGate Management Center 4.0 offers advanced
navigation, sophisticated log filters and search tools as well as
innovative disaster recovery.
- Stonesoft launched StoneGate IPS 4.0 intrusion detection and
prevention system.
- Stonesoft launched StoneGate FW-300 and IPS-400 providing
uncompromised security for remote offices.
- Stonesoft extended its StoneGate secure connectivity solution with
the new StoneGate Transparent Access Control (TAC) module, which
unifies IPS and firewall functionalities. The module allows network
segmentation and transparent access control without the need to
change existing network configurations.
- Stonesoft was granted two patents: 'Method and device for handling
related connections in a firewall' and 'An intrusion detection method
and system'.
- Research company Gartner Inc. listed Stonesoft in their renowned
Magic Quadrant research report. The report analyzes the market
development of enterprise level firewalls and positions the leading
industry vendors by their ability to execute and the completeness of
the vision.
- The StoneGate SSL VPN for secure mobile and remote use received the
international interoperability certification from the Virtual Private
Network Consortium (VPNC).
- Stonesoft announced its products will support the new Internet
protocol IPv6 by the end of 2008.
REVIEW OF MAJOR RESEARCH AND DEVELOPMENT ACTIVITIES
Stonesoft continued its strong investments in R&D. The company's R&D
investments during the fiscal period totaled EUR 5.3 million (EUR 4.8
million). This represented 22% (22%) of operating expenses. R&D
employed 69 (67) persons at the end of the fiscal period.
SHARE CAPITAL AND STOCK OPTION PROGRAMS
At the end of the fiscal period, Stonesoft's share capital recorded
in the Trade Register totaled EUR 1 146 054.64 euros. The number of
shares was 57 302 732. The share capital remained unchanged.
Stock option programs
The company has one valid stock option program, Stock Option Program
2004-2010, the subscription price of which is EUR 0.56. During the
fiscal period no subscriptions were made on the basis of the stock
option programs for the key personnel of the company.
SHAREHOLDERS
At the end of year 2007, the company had 6034 (6935) shareholders.
Nominee registered holdings represented 8.4% of the share capital.
The company gave 5 notices in change of ownership during the fiscal
period.
DEVELOPMENT OF SHARE PRICES AND TURNOVER
In the beginning of the fiscal period on 2 January 2007, the price of
Stonesoft share was EUR 0.47. At the end of the fiscal period on 28
December 2007 the price was EUR 0.29. The highest price was EUR 0.56
and the lowest EUR 0.22. During the year the total turnover of
Stonesoft shares amounted to EUR 8.4 million and the price of
Stonesoft share declined by 38.3%. Based on the share price on 28
December 2007, Stonesoft's market value was EUR 16.6 million.
ACQUISITIONS AND CHANGES IN GROUP STRUCTURE
No acquisitions were made during the reporting period.
Stonesoft Corporations's Swiss subsidiary StoneGate AG was closed
down in August 2007. There were no other changes in the group
structure.
ENVIRONMENT
Due to the nature of Stonesoft's business, the direct environmental
impacts of Stonesoft's operations are fairly limited. The activities
include internal software development and purchasing of external
hardware assembly services and related installation services from a
subcontractor. Stonesoft is a member of PYR (The International
Register of Packaging PYR ltd.) Stonesoft's products are compliant
with RoHS and WEEE directives (directives for restrictions of
hazardous substances in electric appliances and recycling of
electronic appliances).
PROPOSAL BY THE BOARD OF DIRECTORS FOR DISTRIBUTION OF PROFIT
The parent company's operating result (EBIT) was EUR -7.2 million. At
the end of fiscal period, neither the group nor the parent company
had any distributable funds in its shareholders' equity. The Board of
Directors proposes that the parent pay does not distribute dividend
and that the loss be debited to the Profit/Loss account.
PERSONNEL
At the end of fiscal period, the group's personnel totaled 187 (186),
of which 171 were employees and 16 had contractual relationships as
full-time sales representatives or consultants.
The salaries and other remuneration paid to the employees, including
social security payments, were EUR 13.9 million (EUR 13.1 million).
At the end of fiscal period, Stonesoft's personnel were distributed
geographically as follows:
EMEA 159 (155)
AMERICAS 23 (23)
APAC 5 (8)
Total 187 (186)
THE COMPANY'S BOARD OF DIRECTORS, EXECUTIVE MANAGEMENT AND AUDITORS
In 2007 Ilkka Hiidenheimo was the CEO of the company. The CEO is in
charge of the day-to-day management of the company in accordance with
the instructions and orders given by the Board of Directors, as well
as by the Companies Act.
The Annual General Meeting held on March 21, 2007 elected five
members to the Board of Directors. Pertti Ervi, Ilkka Hiidenheimo,
Topi Piela and Matti Viljo were re-elected to the Board and Hannu
Turunen was elected as a new member to the Board. In its
Statutory meeting on April 24, 2007, the Board elected Pertti Ervi as
Chairman of the Board and Topi Piela as Vice Chairman.
The members of the executive management were Ilkka Hiidenheimo, Kim
Fagernäs, Juha Kivikoski, Saara Laine, Mikael Nyberg, Mika Rautila
and Outi Torniainen.
In 2007, authorized public accountants Ernst & Young Oy, acted as
Stonesoft's auditor, and authorized public accountant Pekka Luoma as
the main auditor.
AUTHORIZATIONS OF THE BOARD OF DIRECTORS
The Annual General Meeting held on March 21, 2007 authorized the
Board of Directors to issue new shares in one or several issues and
to grant option and other special rights. The total number of shares
or rights to the shares issued may be 11.450.000 at the maximum.
The new shares to be issued in a new issue and/or the stock option or
special rights may be offered for subscription either according to
the shareholders' pre-emptive subscription rights or in deviation
from the shareholders' pre-emptive subscription right, in case the
deviation is justified by a weighty financial reason for the company,
such as financing of an acquisition, enabling of a joint venture
transaction, providing of additional financial alternatives, and/or
an arrangement for incentive program directed to the company's
personnel.
The Board of Directors was authorized to decide other terms and
conditions related to the share issues and to the issuance of option
or other special rights. The authorization is in force until the end
of the 2009 Annual General Meeting.
The granted authorization was not used in 2007.
The company does not own its shares and the Board of Directors does
not have an authorization to acquire its own shares.
CORPORATE GOVERNANCE
Stonesoft complies with the Corporate Governance Recommendation for
listed companies issued by OMX Nordic Exchange Helsinki, as outlined
on the corporate website www.stonesoft.com.
MAJOR EVENTS AFTER THE REPORTING PERIOD
- Stonesoft's StoneGate IPS intrusion detection and prevention system
received the Network IPS certification from the US-based ICSA Labs.
Stonesoft is one of the few vendors whose product has passed the ICSA
Labs tests.
- Stonesoft launched StoneGate FW-5100 appliances with 10 Gbps
interfaces and IPS-6100, which have been designed especially for the
needs of high capacity networks.
- Stonesoft became a member of the Technology Alliance Partner (TAP)
Program of VMware, the leading provider of virtualization solutions,
and announced it will introduce a virtual StoneGate firewall/VPN
appliance that protects corporate networks and ensures business
continuity in virtual and physical network environments.
- The final selling price of Embe Systems Oy will be higher than
previously estimated. According to our estimate, this will improve
the result of the first quarter of 2008 by EUR 0.2 million.
- Mika Jalava was nominated as the new CTO and member of the
Executive Management at the year-end to replace Mika Rautila, who
left the company to join the State Technical Research Centre as a
professor of Information Security Technology.
SHORT-TERM RISKS AND RISK MANAGEMENT
In the near future, Stonesoft's main risks and business uncertainties
relate to the realization timetable of the sales projects and
possible production disruption of our subcontractors and suppliers.
General economic uncertainty has increased. In other respects there
have been no other significant changes in Stonesoft's risks and
business uncertainties during the reporting period.
The target of risk management is to identify and acknowledge the
risks that may prevent the company from achieving its business
targets and to ensure proper management of these risks. The company's
risk management policy includes the group's risk management
principles and processes. The CEO is responsible for organizing risk
management for the group, and the CFO (Chief Financial Officer), as
the coordinator of risk management, develops risk management tools
and reporting systems and establishes global insurance policies. The
directors of the business units are responsible for identifying and
managing risks in their units.
With respect to operational risks Stonesoft constantly develops its
sales processes and related control systems. Product sales and the
sales of related services are made mainly through a global channel.
The sales are supported by the legal department, which seeks to
reduce the legal risks related to business operations through
continuously developing, managing and giving guidance related to
Stonesoft agreements, and by making legal risk assessments for
business plans before their implementation. The company has worldwide
insurances to cover operational risks. Stonesoft manages and
safeguards its critical business information by stringent internal
policies and processes as well as by having an efficient network
security in place. The company uses widely its own network security
technology to ensure continuing operation of its networks for its
customers and personnel. All critical components are duplicated and,
in addition, the company has a continuously updated back-up system
placed in another physical location.
The goal of the management of financial risks is to identify and
evaluate these risks and actively seek to prevent them. The most
significant currency in addition to Euro is US dollar. The company's
costs occur mostly in Euros. The company operates actively to
minimize the exchange rate risks.
The main principles of the treasury policy of the company are (i) to
ensure the short-term liquidity of the company, (ii) to guarantee
efficient circulation and short-term investments of the operational
cash flows and (iii) to follow prudent and transparent investment
policy for the cash reserves, aiming at guaranteeing competitive
return on the selected risk level. The company's reserves are all
invested in interest-bearing low risk instruments.
The company's operations and related costs are continuously
controlled. The company does not have a separate internal audit
organization or a separate audit committee.
FUTURE OUTLOOK
According to the Research Institute Infonetics, the Firewall/VPN and
IPS Intrusion detection and prevention market will grow globally
roughly by 8% in 2008. The market will continue to be dynamic.
Companies will continue to network with their partners and
subcontractors, and this development will create even higher
requirements for network security and availability. At the same time,
the demand for outsourcing solutions and services will grow. Managed
service providers (MSPs) have a growing need to provide their
customers with the possibility to track the status of their network
security while maintaining an overview of their own data network.
According to the company's view combining security and high
availability, which is the cornerstone of StoneGate product design,
will prove its strength even better in this development.
The convergence of voice, video and data on IP-based networks will
create more demand for capacity and drive the adoption of 10 Gbps
networks. The growing demand for added bandwidth together with new
protocols in the IP networks is expected to increase the general
demand for better reporting, monitoring and analysis tools. This
development will support Stonesoft in achieving its year 2008 growth
plan, since these are the cornerstones in StoneGate Management
Center's functionality.
The strong growth of virtualization has created a demand for ensuring
network security and business continuity also in virtual
environments. StoneGate products are better suited for virtual
environments than the competitors' products because they are based on
software solutions.
Stonesoft will continue its decisive and persistent efforts to
increase its net sales and to improve the profitability of the
company. The company's main target in 2008 is to have a strong growth
of net sales generating improved profitability. By extension of the
product portfolio and improved competitiveness, we aim to win even
larger individual deals.
Based on the extension of the product portfolio, intensification of
sales efforts and the present sales pipeline, the company expects to
have an annual overall net sales of roughly EUR 24 million (+/- 10%)
while the comparable net sales figure during the previous financial
year was EUR 19.0 million. Through increased sales and cost control,
the annual operating result (EBIT) is expected to improve by EUR 2.5
- 4.5 million compared to the previous year. Also the cash flow is
expected to develop favorably.
With regard to the development of the turnover and the operating
result, we expect a significant variation between the quarters in
comparison to the corresponding quarter during the previous year as
well as to the previous quarter as a consequence of, among others,
long sales cycles, a relatively big impact of individual deals, and
the variation between the quarters in the previous year.
Stonesoft Group
Income Statement 10-12/2007 10-12/2006 1-12/2007 1-12/2006
(1000 Euro)
Continuing operations
Net sales 5 815 4 319 19 020 16 479
Other operating
income 406 185 1 144 766
Materials and
services -1 137 -496 -3 064 -1 915
Personnel expenses -4 011 -3 512 -13 930 -13 135
Depreciation -108 -120 -449 -512
Other operating
expenses -2 205 -2 278 -9 234 -8 292
Operating result -1 240 -1 902 -6 514 -6 608
Financial income and
expenses 71 94 202 382
Result before taxes -1 169 -1 808 -6 312 -6 226
Taxes -76 -103 -213 -262
Result from continuing
operations -1 245 -1 911 -6 525 -6 488
Result from discontinued
operations 95 -111 2 312 40
Result for the
accounting period -1 150 -2 022 -4 212 -6 448
Basic earnings per share
(EUR),
continuing operations -0,02 -0,03 -0,11 -0,11
Diluted earnings per
share (EUR),
continuing operations -0,02 -0,03 -0,11 -0,11
Basic earnings per share
(EUR),
discontinued operations 0,00 0,00 0,04 0,00
Diluted earnings per
share (EUR),
discontinued operations 0,00 0,00 0,04 0,00
Stonesoft Group
Balance Sheet (1000 Euro) 31.12.2007 31.12.2006
ASSETS
Non-Current Assets
Tangible assets 709 608
Intangible assets 82 137
Deferred tax assets 1 2
Total 793 747
Current assets
Inventories 1 069 912
Trade and other receivables 7 498 5 522
Prepayments 97 98
Marketable securities 7 571 13 755
Cash and cash equivalents 640 616
Total 16 874 20 902
Asset held for sales 0 2 859
Total assets 17 666 24 507
EQUITY AND LIABILITIES
Equity attributable to equity holders of the
parent company
Share capital 1 146 1 146
Share premium account 76 981 76 897
Conversion differences -927 -867
Retained earnings -71 622 -67 410
Total 5 579 9 767
Long-term liabilities
Provisions 56 112
Interest bearing
liabilities 0 62
Other long-term liabilities 1 722 1 296
Total 1 779 1 470
Short-term liabilities
Trade and other payables 10 018 12 041
Tax liability 85 116
Provisions 131 84
Short-term interest bearing
liabilities 75 107
Total 10 309 12 348
Liabilities held for sales 0 922
Total liabilities 12 088 14 740
Total equity and liabilities 17 666 24 507
Stonesoft
Group
Statement of
changes in
equity
(1000 Euro)
Share Share Conversion Retained
capital premium differences earnings Total
Shareholders'
equity at 16
01.01.2006 1 146 76 845 -849 -60 961 181
Conversion
differences -18 -18
Result for -6
the period -6 448 448
Total recognized
income and expense -6
for the period -18 -6 448 467
Stock options
exercised 52 52
Shareholders'
equity at
31.12.2006 1 146 76 897 -867 -67 410 9 767
Share Share Conversion Retained
capital premium differences earnings Total
Shareholders'
equity at
01.01.2007 1 146 76 897 -867 -67 410 9 767
Conversion
differences -60 -60
Result for -4
the period -4 212 212
Total recognized
income and expense -4
for the period -60 -4 212 272
Stock options
exercised 84 84
Shareholders'
equity at
31.12.2007 1 146 76 981 -927 -71 622 5 579
Stonesoft Group
Cash flow statement (1000 Euro) 1.1.-31.12.2007 1.1.-31.12.2006
Cash flow from operating activities
Operating Result -6 514 -6 608
Adjustments 417 1 062
Change in net working capital 687 -1 318
Taxes paid -212 -261
Net cash flow from operating
activities continuing operations -5 622 -7 125
Net cash flow from operating
activities discontinued operations 0 114
Total cash flow from operating
activities -5 622 -7 011
Cash flow from investing activities
Investments in tangible assets -463 -216
Investments in intangible assets -32 -50
Investments in affiliated company -1 3 631
Net cash flow investing activities
continuing operations -496 3 365
Net cash flow investing activities
discontinued operations -448 -131
Total cash flow investing activities -944 3 233
Cash flow from financing activities
Payments of financial leasing
liabilities -95 -166
Total cash flow from financing
activities -95 -166
Change in cash and cash equivalents
Cash and cash equivalents at
beginning of period 14 370 18 097
Conversion differences -60 -18
Changes in the market value of
investments 69 -39
Discontinued operations 492 274
Total cash and cash equivalents at
end of period *) 8 210 14 370
*) Total cash and cash equivalents at
end of the period
contains pledged securities 281 3
Stonesoft Group
Geographical segments 1.1.-31.12.2007 1.1.-31.12.2006
(1000 Euro)
Net sales
EMEA 14 078 16 938
AMER 3 906 3 571
APAC 1 036 1 370
Total net sales 19 020 21 879
Operating profit
EMEA -4 350 -4 131
AMER -2 038 -2 040
APAC -126 -366
Total operating profit -6 514 -6 536
Stonesoft Group
Contingent liabilities 1.1.-31.12.2007 1.1.-31.12.2006
(1000 Euro)
Contingent off-balance sheetNon-cancelable other leases 4 624 6 103
Contingent liabilities for the
Company 20 323
Pledged shares 0 585
Contingent liabilities for
inventories 0 0
Stonesoft Group
Related party information 1.1.-31.12.2007 1.1.-31.12.2006
(1000 Euro)
Consultation fees paid to the Board
of Directors 73 9
Stonesoft Group
Quarterly
development Q4 / Q3 / Q2 / Q1 / Q4 / Q3 / Q2 / Q1 /
(Euro Millions) 2007 2007 2007 2007 2007 2006 2006 2006 2006 2006
Security
software and
appliances 3,7 2,0 2,7 2,3 10,7 2,3 2,3 1,7 2,1 8,5
Services 2,2 2,1 2,1 2,0 8,4 2,1 2,0 2,0 2,0 8,1
Other products -0,1 0,0 0,0 0,0 -0,1 -0,1 0,1 0,0 0,0 -0,1
Net sales
continuing
operations 5,8 4,0 4,8 4,3 19,0 4,3 4,4 3,7 4,1 16,5
Change-% from
previous year 35 -9 32 7 15 -2 24 -20 4 0
Net sales
discontinuing
operations 0,0 0,0 0,0 0,0 0,0 1,5 1,1 1,4 1,5 5,4
Change-% from
previous year 4 -3 -13 -12 -7
Net sales total 5,8 4,0 4,8 4,3 19,0 5,8 5,5 5,0 5,5 21,9
Change-% from
previous year 0 -27 -4 -22 -13 1 17 -18 -1 -2
Sales margin 4,7 3,4 4,1 3,8 16,0 5,3 5,0 4,6 5,0 20,0
Sales margin % 80 84 85 87 84 91 90 92 91 91
Operative expenses 6,2 5,4 5,8 6,0 23,4 7,5 6,4 6,8 6,5 27,2
Operating profit
(EBITA) -1,2 -1,6 -1,5 -2,1 -6,5 -2,0 -1,3 -2,0 -1,3 -6,5
% of net sales -21 -41 -32 -48 -34 -34 -23 -39 -23 -30
Result before taxes -1,2 -1,7 -1,4 -2,0 -6,3 -1,9 -1,2 -1,9 -1,2 -6,2
% of net sales -20 -43 -30 -46 -33 -33 -22 -37 -22 -28
Stonesoft Group
Key ratios 1.1.-31.12.2007 1.1.-31.12.2006
(1000 Euro)
Net sales total 19 020 21 879
Net sales change-% -13 -2
Net sales, continuing operations 19 020 16 479
Net sales change-% 15 16
Net sales, discontinued operations 0 5 400
Net sales change-% - -7
Operating result total -6 514 -6 536
% of net sales -34 -30
Operating result, continuing
operations -6 514 -6 608
% of net sales -34 -40
Operating result, discontinued
operations 0 72
% of net sales - 1
Operating result before taxes -6 312 -6 170
% of net sales -33 -28
ROE - %, annualized, continuing
operations -85 -50
ROI - %, annualized -78 -46
Equity ratio-% 52 66
Net gearing -1,46 -1,50
Total Assets 17 666 24 507
Capital expenditure 500 416
Capital disposals -5 -165
R&D costs 5 285 4 804
% of net sales 28 22
Number of employees (weighted
average) 181 251
Number of employees (end of the
period) 181 254
Share Specific Ratios
Earnings per share, continuing
operations -0,11 -0,11
Earnings per share, discontinued
operations 0,04 0,00
Equity per share 0,10 0,17
Dividend 0,00 0,00
Dividend per share (EUR) 0,00 0,00
Dividend / Profit-% 0 0
Calculation of indicators
Return on equity
(ROE) % = (Profit before taxes - income taxes) x 100/
Shareholders' equity + minority interest
(average)
Return on invested (Profit before extraordinary items+interest and
capital (ROI)% = other financial expenses) x100/
Balance sheet total - non-interest bearing
debt (average)
Equity ratio % = (Equity + minority interest) x 100/
Balance sheet total - advances received
Interest bearing net debt-cash in hand and on
Net gearing = deposit-marketable securities/
Equity + minority interest
Earning per share Profit before taxes - minority interest -
(EPS) = income taxes/
Average number of shares adjusted for
dilutive effect of options
Equity per share = Equity/
Number of shares at end of period
FORWARD-LOOKING STATEMENTS
This report contains statements concerning, among other things,
Stonesoft's financial condition and the results of operations that
are forward-looking in nature. Such statements are not historical
facts, but rather represent Stonesoft's future expectations. The
company believes that the expectations reflected in these
forward-looking statements are based on reasonable assumptions.
However, these forward-looking statements involve inherent risks and
uncertainties, which could cause actual results or outcomes to differ
materially from those anticipated in the statements. These risks anduncertainties may include, among other things, (1) changes in our
market position or in the Firewall/VPN and Intrusion detection and
protection market in general; (2) the effects of competition; (3) the
success, financial condition, and performance of our collaboration
partners, suppliers and customers;(4) our ability to source quality
components without interruption and at acceptable prices;(5) our
ability to recruit, retain and develop appropriately skilled
employees;(6) exchange rate fluctuations, including, in particular,
fluctuations between the Euro, which is our reporting currency, and
the US dollar;(7) other factors related to sale of products, economic
situation, business, competition or legislation affecting the
business of Stonesoft or the industry in general and (8) our ability
to control the variety of factors affecting our ability to reach our
targets and give accurate forecasts.
The presented figures are unaudited.
For additional information, please contact:
Ilkka Hiidenheimo, CEO, Stonesoft Corporation
Tel. +358 9 476 711
E-mail: ilkka.hiidenheimo@stonesoft.com
Mikael Nyberg, CFO, Stonesoft Corporation
Tel. +358 9 476 711
E-mail: mikael.nyberg@stonesoft.com
Stonesoft Corporation
Ilkka Hiidenheimo
CEO
This release and the presentation material related to this report are
also available on Stonesoft's web site at www.stonesoft.com.
Distribution:
The Helsinki Stock Exchange
Main media
CORRECTIONS TO STONESOFT CORPORATION'S FINANCIAL STATEMENTS RELEASE FOR JANUARY-DECEMBER 2007
| Source: Stonesoft
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