Aldata Solution Oyj STOCK EXCHANGE RELEASE 8 May 2008 at 9.00 a.m. (EET) ALDATA SOLUTION INTERIM REPORT JANUARY - MARCH 2008 (unaudited) Aldata in Q1 2008 (compared to Q1 2007) The quarterly figures are prepared according to the principles of International Financial Reporting Standards (IFRS). * Net sales increased by 4% to EUR 19.1 million (EUR 18.3 million). * Gross profit increased by 15% to EUR 17.1 million (EUR 14.9 million) and EBITDA was EUR 1.5 million (EUR -1.7 million). * Operating profit, EBIT, increased to EUR 1.1 million (EUR -2.0 million) and operating profit excluding option expenses was EUR 1.2 million (EUR -1.9 million). * Profit before taxes was EUR 0.6 million (EUR -2.1 million). * Net profit was EUR 0.5 million (EUR -2.1 million) and earnings per share, EPS, were 0.007 EUR (-0.031 EUR). * Cash flow from operating activities was EUR 1.0 million (EUR 1.3 million). At the end of March 2008, Aldata Group's cash, cash equivalents and marketable securities amounted to EUR 8.6 million (EUR 6.7 million). The Group had interest-bearing debt EUR 3.5 million (EUR 0.0 million). Message from CEO Bertrand Sciard 2008 started strongly for Aldata with a solid profitable performance in Q1 without the help of any large contract signings. The combination of our lower cost base and focus on profitable services revenues is now providing a stable and consistent platform for the planned growth of the business. Alongside that stable platform our sales pipeline is developing well with both existing and new customers planning to invest more in our solutions and services. Our strategy of focusing on both global retailers and more specialist sectors is gaining traction in the market and providing new business opportunities for us on both sides of the Atlantic. We have also, following the review period, made some senior management changes to focus on three critical areas for our growth. These are; mergers and acquisitions, regional business development, and global financial management and governance. As part of these changes Aïssa Azzouzi, an experienced international software and services CFO, has joined as our new Chief Financial Officer. Thomas Hoyer will now focus his entire attention on our mergers and acquisitions activities, an area where he has specific skills. During Q1 we successfully commenced the first stage of our planned off-shoring strategy and during Q2 these facilities will come online to supplement our existing development and services resources. This strategy will add strength to our quality assurance teams, expand customer development capabilities, and enable us to maintain our high standards of service efficiently and flexibly as we scale up our operations to serve more customers. January - March 2008 financial performance The Group's net sales were EUR 19.1 million (EUR 18.3 million), which represents an increase of 0.8 million euros compared to the previous year's first quarter net sales. Product sales, which include licenses on standard products, customer specific developments and maintenance revenues, accounted for 43% (41%) of the total net sales. Consulting services accounted for 47% (48%) and third party licenses and hardware accounted for 10% (11%). The Group's gross profit was EUR 17.1 million (EUR 14.9 million), which represents an 89% (81%) gross margin. Operating profit, EBIT, totaled EUR 1.1 million (EUR -2.0 million) and operating profit excluding expenses for option plans was EUR 1.2 million (EUR -1.9 million). Pre-tax profit was EUR 0.6 million (EUR -2.1 million), net profit was EUR 0.5 million (EUR -2.1 million) and earnings per share, EPS, were 0.007 euros (-0.031 euros). Research and development costs in the financial period totaled EUR 2.1 million (EUR 2.7 million), of which EUR 0.3 million, thus 12% (4%), were capitalized. The amortization on capitalized development costs was EUR 0.1 million (EUR 0.1 million). Aldata's reported order backlog includes product and third party product sales, which will be recognized as revenues during the following twelve months. At the end of March 2008, the order backlog was EUR 20.1 million (EUR 17.9 million at the end of March 2007 and EUR 18.5 million at the end of 2007). In order to lower its cost base and streamline its organizational structure Aldata implemented in the fourth quarter 2007 a restructuring plan. The plan included a personnel reduction, a reduction of office space and discontinuing uneconomical business operations. Restructuring costs and provisions related to the program amount to EUR 8.7 million. During the first quarter of 2008, EUR 0.3 million of the restructuring provision was utilized and the remaining provision at March 31, 2008, amounted to EUR 3.8 million. Finance and investments Cash flow from operating activities was in the first quarter EUR 1.0 million (EUR 1.3 million) and net cash flow was EUR -0.6 million (EUR 1.0 million). At the end of March 2008, Aldata Group's cash, cash equivalents and marketable securities amounted to EUR 8.6 million (EUR 6.7 million) and total assets were EUR 56.1 million (EUR 55.3 million). The Group had interest-bearing debt EUR 3.5 million (EUR 0.0 million) and interest-bearing net liabilities totaled EUR -4.2 million (EUR -6.0 million). Short term receivables totaled 32.4 EUR million (EUR 34.0 million). The Group's solvency ratio was 37.6 % (51.3%), gearing was -20.4 % (-21.6%), and shareholders' equity per share was 0.300 EUR (0.409 EUR). The Group's capital expenditure on hardware and software purchases amounted to EUR 0.4 million (EUR 0.4 million). A total of EUR 0,3 million (EUR 0.1 million) of development costs were capitalized during the period. Business units Net sales of the Supply Chain Management (SCM) Software business unit were EUR 15.2 million (EUR 15.0 million). The gross profit was EUR 13.3 (EUR 12.4) million and the operating profit, EBIT, was EUR 0.9 (EUR -1.8) million. Net sales of the In-Store Software business unit were EUR 3.9 million (EUR 3.3 million). The gross profit was EUR 3.1 million (EUR 2.5 million) and the operating profit, EBIT, was EUR 0.8 (EUR -0.3) million. There were no internal sales between the Group's business segments. The unallocated costs, Group's shared items netted, decreased the Group's operating profit, EBIT, with EUR 0.6 million (increase EUR 0.1 million). Research and Development Aldata's research and development costs were EUR 2.1 million (EUR 2.7 million) and made up 11% (15%) of net sales. A total of EUR 0.3 million (EUR 0.1 million) of development costs were capitalized during the period. The amortization on capitalized development costs was EUR 0.1 million (EUR 0.1 million). At the end of the review period 156 (179) employees were involved in R&D activities. This represents 29% (29%) of the Group's total personnel. Aldata's R&D centers are located in Paris, France and in Vantaa, Finland. Personnel Aldata Group employed 538 (629) persons at the end of March 2008, and on average had 546 (632) employees during the period. Mar 31, 2008 Mar 31, 2007 By Business Units Persons % Persons % SCM Software 447 83 504 80 In-Store Software 82 15 114 18 Group administration 9 2 11 2 Total 538 100 629 100 Approximately 58% of personnel were employed by Aldata companies in France, 13% in Finland, 11% in Germany, 6% in Sweden, 5% in the US, 3% in Slovenia, 3% in the UK and 1% in Russia. Share performance The highest price of the Aldata Solution Oyj share during January - March 2008 was 1.25 EUR and the lowest price 0.96 EUR. The average price was 1.07 EUR and the closing price 1.02 EUR. The trading volume on the Helsinki Stock Exchange was EUR 3.2 million and altogether 3.0 million shares were traded, which represents 4.4% of the shares. Aldata Solution Oyj has 68.7 million shares outstanding. The number of shares outstanding has increased by 80.000 shares during the period. The number of shareholders was 4 410 and the free float was 100% of the share capital at the end of March 2008. A total of 50.0% of Aldata Solution Oyj's shares were owned by foreign investors at the end of the period. Extraordinary General Meeting The Company held an Extraordinary General Meeting in Vantaa, Finland on 21 February 2008. The Meeting resolved, in accordance with the Board's proposals, on * Nullification of stock options 2006; and * Issuance of stock options 2008A-F. Annual General Meeting 2008 The Annual General Meeting of Aldata Solution Oyj was held in Vantaa, Finland on 1 April 2008. The meeting approved the parent company's financial statements and the consolidated financial statements for the year 2007 and decided according to the Board's proposal that no dividend will be distributed on the year 2007. The result for the year will be carried forward to the retained earnings account. The Board members and the Managing Director were discharged from liability for the fiscal year 2007. The Meeting resolved, in accordance with the Board's proposals, on * Authorizing the Board to decide on a repurchase of the company's own shares up to maximum of 6,800,000 shares; * Authorizing the Board to decide on issuing and/or conveying new shares and/or the Company's own shares and to decide on granting the special rights referred to in Chapter 10, Section 1 of the Companies Act. The Board of Directors is entitled to issue and/or convey a maximum of 14,000,000 shares in the company. * Completing the Terms and Conditions of the Stock Options 2008A - 2008F; and * Issuance of the stock options 2008G to the members of the Board of Directors of the company who are considered as independent from the Company and/or Company's significant shareholders. The maximum number of stock options is 90,000 which entitle to subscribe for a maximum of 90,000 shares in Aldata Solution. The Annual General Meeting elected the following persons to the Board of Directors: Mr Bertrand Sciard and Mr William Chisholm as re-elected members and Mr Aarne Aktan, Mr Tommy Karlsson and Mr Thomas Peterson as new members. Aldata Solution Oyj's new Board convened after the Annual General Meeting. In the meeting Mr William Chisholm was elected as the Chairman of the Board and Mr Bertrand Sciard as the Vice Chairman of the Board. Ernst & Young Oy was re-appointed to be the company's auditor, under the supervision of principal auditor Tomi Englund (APA). Events after the review period On 22 April 2008 Aldata Solution Oyj announced changes to its Corporate Management Team (CMT) and Management Council (MC). Within the CMT Aïssa Azzouzi joins as the new Chief Financial Officer. Thomas Hoyer takes on the position of SVP Mergers & Acquisitions. Dominique Chambas takes on a new role as SVP South Europe, Middle East and Africa. Patrick Buellet and Allan Davies continue in their respective roles as Chief Technology Officer and Chief Marketing Officer. Within the MC Albert Cherbit takes on the new role of VP Northern Europe and North America and Graham Howell joins as VP Group Financial Controller. On 5 May 2008 Aldata announced that Price Chopper, the 26th largest supermarket chain in the U.S., has selected the Aldata G.O.L.D. Retail Supply Chain Suite to centralize merchandising and procurement and to improve replenishment management operations across 116 grocery stores throughout New York, Pennsylvania, Connecticut, Massachusetts, Vermont and New Hampshire. Outlook for 2008 After a very challenging 2007 with external factors, such as the public tender offer process, affecting the business negatively, the Company views the year ahead positively. Aldata today enjoys strong support from its customers, employees and shareholders. Positive transformation developments during the fourth quarter of 2007 and the first quarter of 2008 are beginning to demonstrate that the Company can execute on it's declared strategy of planned profitable growth. In 2008 the Company expects to organically grow its revenues to approximately EUR 80 million and to report operating profit, EBIT, of at least EUR 6 million. In addition to organically growing the business, the Company is looking to make targeted acquisitions in the retail software sector and has started to implement off-shoring activities for software development and services. These measures should further support both growth and profitability. Helsinki, 8 May 2008 Aldata Solution Oyj Board of Directors Further information: Aldata Solution Oyj, Bertrand Sciard, President and CEO, tel. +358 10 820 8000 / Aldata Solution Oyj. Aldata will arrange a press conference for media and financial analysts in Helsinki on 8 May, at 12.00 (EET) in Hotel Kämp. Aldata in brief At Aldata 100% of our business is dedicated to retail and wholesale business improvement. We provide our customers with modern, flexible and integrated software solutions specifically designed to increase productivity, performance and profitability. With over 24,000 successful installations across 52 countries, from convenience store to hypermarket, 480+ live warehouses and customers with 5 to 5,000 outlets, we consistently deliver the goods for retail and wholesale business improvement. Aldata Solution is a public company quoted on OMX Nordic Exchange Helsinki Oy with the identifier ALD1V. More information at: www.aldata-solution.com. Distribution: OMX Nordic Exchange Helsinki Oy Media APPENDICES 1 Income Statement 2 Balance Sheet 3 Statement of Changes in Equity 4 Cash Flow 5 Contingent Liabilities 6 Key Figures 7 Segment Information 8 Quarterly Income Statement and Balance Sheet 9 Quarterly Key Figures * APPENDIX 1 INCOME STATEMENT MEUR MEUR Change % MEUR Jan-Mar/ Jan-Mar/ Total 2008 2007 2007 Net sales 19,1 18,3 4,3 % 74,7 Other operating income 0,3 0,2 95,1 % 0,4 Operating expenses -17,9 -20,2 11,1 % -84,8 Depreciations and impairments -0,3 -0,3 -14,1 % -1,4 Operating profit 1,1 -2,0 157,4 % -11,1 Financial items -0,6 -0,1 -398,7 % -0,6 Profit before taxes 0,6 -2,1 127,9 % -11,7 Income taxes -0,1 0,0 -743,6 % 0,0 Minority interest 0,0 0,0 873,8 % 0,0 Profit for the financial period 0,5 -2,1 122,4 % -11,7 Earnings per share, EUR 0,007 -0,031 -0,171 Earnings per share, EUR (EPS), adjusted for dilution effect 0,007 -0,030 -0,170 APPENDIX 2 BALANCE SHEET MEUR MEUR MEUR 31 Mar 2008 31 Mar 2007 31 Dec 2007 ASSETS NON-CURRENT ASSETS Goodwill 9,4 9,4 9,4 Capitalized development cost 2,3 1,4 2,2 Intangible assets 0,3 0,3 0,3 Tangible assets 1,5 1,5 1,6 Investments 0,1 0,0 0,0 Other long-term assets 0,1 0,8 0,1 Deferred tax assets 1,0 0,5 0,9 NON-CURRENT ASSETS TOTAL 14,8 14,0 14,6 CURRENT ASSETS Inventories 0,3 0,6 0,3 Short-term receivables 32,4 34,0 26,7 Cash and cash equivalents 8,6 6,7 9,1 CURRENT ASSETS TOTAL 41,3 41,4 36,7 ASSETS TOTAL 56,1 55,3 51,3 SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity 20,6 27,9 19,6 Minority interest 0,1 0,1 0,1 Non-current liabilities 4,2 1,7 4,2 Current liabilities 31,2 25,6 27,3 EQUITY AND LIABILITIES TOTAL 56,1 55,3 51,3 APPENDIX 3 STATEMENT OF CHANGES IN EQUITY Share Share premium Translation Retained TEUR capital fund difference earnings Total EQUITY 1.1.2006 674 17 002 -75 7 476 25 078 Translation difference 0 0 42 0 42 Result of the financial year 0 0 0 2 526 2 526 Total 0 0 42 2 526 2 568 Issue of share capital 6 1 143 0 0 1 149 Exercise of options 1 146 0 0 147 Share based payments recognised against equity 0 0 0 860 860 Total 7 1 289 0 860 2 156 EQUITY 31.12.2006 681 18 291 -33 10 862 29 802 Translation difference 0 0 396 0 396 Result of the financial -11 year 0 0 0 -11 729 729 -11 Total 0 0 396 -11 729 333 Exercise of options 5 705 0 0 710 Share based payments recognised against equity 0 0 0 440 440 Total 5 705 0 440 1 150 EQUITY 31.12.2007 686 18 996 363 -426 19 619 Translation difference 0 0 411 0 411 Result of the financial year 0 0 0 466 466 Total 0 0 411 466 877 Exercise of options 1 82 0 0 83 Share based payments recognised against equity 0 0 0 50 50 Total 1 82 0 50 133 EQUITY 31.3.2008 687 19 078 774 90 20 629 APPENDIX 4 CASH FLOW STATEMENT MEUR MEUR MEUR Jan-Mar/ 2008 Jan-Mar/ 2007 2007 Cash flow from operating activities Operating result 1,2 -2,0 -11,1 Adjustment to operating result -0,9 0,3 6,8 Change in working capital 0,6 3,1 4,8 Interest received and other financial income 0,1 0,0 0,2 Interest paid and other financial expenses -0,2 -0,1 -0,2 Taxes paid 0,4 0,0 -0,8 Net cash from operating activities 1,0 1,3 -0,4 Cash flow from investing activities Investments in tangible and intangible assets -0,3 -0,3 -1,8 Net cash used in investing activities -0,3 -0,3 -1,8 Cash flow before financing activities 0,7 1,0 -2,2 Cash flow from financing activities Long-term loans, repayments 0,0 0,0 -0,1 Short-term loans, received 0,2 0,0 5,0 Short-term loans, repayments -1,5 0,0 0,0 Share issue 0,1 0,0 0,7 Net cash used in financing activities -1,3 0,0 5,7 Net cash flow, total -0,6 1,0 3,5 Change in cash and cash equivalents -0,6 1,0 3,5 Cash and cash equivalents in the beginning of the period 9,1 5,7 5,7 Cash and cash equivalents at the end of the period 8,6 6,7 9,1 APPENDIX 5 COMMITMENTS AND CONTINGENCIES MEUR MEUR MEUR 31 Mar 2008 31 Mar 2007 31 Dec 2007 Loans from financial institutions 3,5 0,0 5,0 Mortages 5,4 5,4 5,4 Leasing liabilities 12,8 17,2 10,8 Guarantees on behalf of company debt 0,1 0,1 0,1 APPENDIX 6 Jan-Mar KEY FIGURES, MEUR Jan-Mar /2008 /2007 Total 2007 Scope of Operations Net sales, MEUR 19,1 18,3 74,7 Average number of personnel 546 632 625 Profitability Operating profit , MEUR 1,1 -2,0 -11,1 Operating profit, % of net sales 6,0 -10,9 -14,9 Profit before taxes and minority interest, MEUR 0,6 -2,1 -11,7 Profit before taxes and minority interest, % of net sales 3,1 -11,5 -15,7 Return on equity, % (ROE) 9,2 -28,8 -47,4 Return on investment, % (ROI) 19,4 -25,3 -37,8 Financial Standing Quick ratio 1,3 1,6 1,3 Current ratio 1,3 1,6 1,3 Equity ratio, % 37,6 51,3 38,6 Interest-bearing net debt, MEUR -4,2 -6,0 -3,3 Gearing, % -20,4 -21,6 -16,6 Per Share Data Earnings per share, EUR (EPS) 0,007 -0,031 -0,171 Earnings per share, EUR (EPS), adjusted for dilution effect 0,007 -0,030 -0,170 Shareholders' equity per share, EUR 0,300 0,409 0,286 APPENDIX 7 SEGMENT INFORMATION, MEUR BUSINESS SEGMENTS Jan-Mar/2008 Jan-Mar/2007 Total 2007 Net sales to external customers Supply Chain Management Software 15,2 15,0 58,1 In-Store Software 3,9 3,3 16,6 Total 19,1 18,3 74,7 Operating result, continuing operations Supply Chain Management Software 0,9 -1,8 -8,2 In-Store Software 0,8 -0,3 -0,2 Total 1,7 -2,1 -8,4 Unallocated items -0,6 0,1 -2,7 Operating profit 1,1 -2,0 -11,1 Financial income and expenses -0,6 -0,1 -0,6 Result before taxes and minority interest 0,6 -2,1 -11,7 Taxes -0,1 0,0 0,0 Minority interest 0,0 0,0 0,0 Result from continuing operations 0,5 -2,1 -11,7 Result for the financial period 0,5 -2,1 -11,7 APPENDIX 8 INCOME STATEMENT MEUR MEUR MEUR MEUR MEUR quarterly figures Q1/2008 Q4/2007 Q3/2007 Q2/2007 Q1/2007 Net sales 19,1 20,6 16,6 19,1 18,3 Other operating income 0,3 0,0 0,1 0,1 0,2 Operating expenses -17,9 -26,0 -18,2 -20,4 -20,2 Depreciations and impairments -0,3 -0,4 -0,4 -0,3 -0,3 Operating profit 1,1 -5,8 -1,8 -1,5 -2,0 Financial items -0,6 -0,3 -0,2 0,0 -0,1 Profit before taxes 0,6 -6,1 -2,0 -1,5 -2,1 Income taxes -0,1 0,1 0,1 -0,2 0,0 Minority interest 0,0 0,0 0,0 0,0 0,0 Profit for the financial period 0,5 -6,0 -1,9 -1,7 -2,1 INCOME STATEMENT MEUR MEUR MEUR MEUR MEUR cumulative 1-3/08 1-12/07 1-9/07 1-6/07 1-3/07 Net sales 19,1 74,7 54,1 37,5 18,3 Other operating income 0,3 0,4 0,4 0,2 0,2 Operating expenses -17,9 -84,8 -58,8 -40,6 -20,2 Depreciations and impairments -0,3 -1,4 -1,0 -0,6 -0,3 Operating profit 1,1 -11,1 -5,3 -3,5 -2,0 Financial items -0,6 -0,6 -0,3 -0,2 -0,1 Profit before taxes 0,6 -11,7 -5,6 -3,6 -2,1 Income taxes -0,1 0,0 -0,1 -0,2 0,0 Minority interest 0,0 0,0 0,0 0,0 0,0 Profit for the financial period 0,5 -11,7 -5,7 -3,8 -2,1 BALANCE SHEET MEUR MEUR MEUR MEUR MEUR 31.3.08 31.12.07 30.9.07 30.6.07 31.3.07 ASSETS NON-CURRENT ASSETS Goodwill 9,4 9,4 9,4 9,4 9,4 Capitalized development cost 2,3 2,2 1,8 1,6 1,4 Intangible assets 0,3 0,3 0,4 0,3 0,3 Tangible assets 1,5 1,6 1,7 1,6 1,5 Investments 0,1 0,0 0,0 0,0 0,0 Other long-term assets 0,1 0,1 0,7 0,7 0,8 Deferred tax assets 1,0 0,9 0,4 0,3 0,5 NON-CURRENT ASSETS TOTAL 14,8 14,6 14,6 14,0 14,0 CURRENT ASSETS Inventories 0,3 0,3 0,6 0,4 0,6 Short-term receivables 32,4 26,7 27,4 31,3 34,0 Cash and cash equivalents 8,6 9,1 7,7 4,3 6,7 CURRENT ASSETS TOTAL 41,3 36,7 35,7 36,0 41,4 ASSETS TOTAL 56,1 51,3 50,4 50,1 55,3 SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity 20,6 19,6 25,3 27,0 27,9 Minority interest 0,1 0,1 0,1 0,1 0,1 Non-current liabilities 4,2 4,2 2,0 1,7 1,7 Current liabilities 31,2 27,3 23,0 21,3 25,6 EQUITY AND LIABILITIES TOTAL 56,1 51,3 50,4 50,1 55,3 APPENDIX 9 KEY FIGURES, MEUR Q1/2008 Q4/2007 Q3/2007 Q2/2007 Q1/2007 quarterly figures Scope of Operations Net sales, MEUR 19,1 20,6 16,6 19,1 18,3 Average number of personnel, cumulative 546 625 630 634 632 Profitability Operating profit , MEUR 1,1 -5,8 -1,8 -1,5 -2,0 Operating profit, % of net sales 6,0 -28,2 -10,8 -7,8 -10,9 Profit before taxes and minority interest, MEUR 0,6 -6,1 -2,0 -1,5 -2,1 Profit before taxes and minority interest, % of net sales 3,1 -29,7 -11,9 -8,0 -11,5 Return on equity, % (ROE) 9,2 -47,4 -27,5 -27,0 -28,8 Return on investment, % (ROI) 19,4 -37,8 -21,7 -22,0 -25,3 Financial Standing Quick ratio 1,3 1,3 1,5 1,7 1,6 Current ratio 1,3 1,3 1,6 1,7 1,6 Equity ratio, % 37,6 38,6 51,0 54,7 51,3 Interest-bearing net debt, MEUR -4,2 -3,3 -3,2 -3,6 -6,0 Gearing, % -20,4 -16,6 -12,7 -13,2 -21,6 Per Share Data Earnings per share, EUR (EPS) 0,007 -0,088 -0,027 -0,026 -0,031 Earnings per share, EUR (EPS), adjusted for dilution effect 0,007 -0,088 -0,027 -0,025 -0,030 Shareholders' equity per share, EUR 0,300 0,286 0,369 0,396 0,409
ALDATA SOLUTION INTERIM REPORT JANUARY - MARCH 2008 (unaudited)
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