QPR SOFTWARE PLC STOCK EXCHANGE RELEASE 24 July 2008 9.30 AM
INTERIM REPORT JANUARY 1 - JUNE 30, 2008
QPR SOFTWARE´S NET SALES EUR 2.2 MILLION IN THE SECOND QUARTER,
OPERATING PROFIT ROSE TO 14.6 % OF NET SALES, EARNINGS PER SHARE EUR 0.02
JANUARY - JUNE NET SALES EUR 4 MILLION, OPERATING PROFIT 10.5 %, EARNINGS PER
SHARE EUR 0.03
QPR Software Group´s net sales in April - June were on last year´s level and
EUR 2.215 million (2.225). Net sales in April - June showed 26 % growth
compared to the previous quarter January - March. Net sales in the second
quarter were positively affected by significant software deliveries to Standard
Bank of South Africa both in reporting period and last year.
Operating profit improved 39% in the second quarter and rose to EUR 0.324
million (0.233), representing 14.6 % of net sales. Profit before taxes was EUR
0.330 million (0.241).
January - June net sales grew 3 % and were EUR 3.969 million (3.859). Cash flow
from operating activities showed very positive development and rose to EUR
0.693 million (0.325). Operating profit for the reporting period improved 65 %
from previous year and was EUR 0.415 million (0.252), representing 10.5 % of
net sales. Profit before taxes was EUR 0.419 million (0.275) and profit for the
period EUR 0.327 million (0.203). Earnings per share rose to EUR 0.03 (0.02).
QPR Software´s management estimates, based on business prospects and reseller
forecasts, the Group´s net sales and operating profit to increase from the
previous year.
KEY FIGURES
(EUR 1,000) 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
2008 2007 % 2008 2007 % 2007
Net sales 2,215 2,225 -0.4 3,969 3,859 2.9 7,059
Operating profit 324 233 39.1 415 252 64.7 31
% of net sales 14.6 10.5 10.5 6.5 0.4
Profit before tax 330 241 36.9 419 275 52.4 64
Profit for the period 249 183 36.1 327 203 61.1 204
% of net sales 11.2 8.2 8.2 5.2 2.9
Earnings per share, EUR 0.03 0.02 0.02
EPS (diluted), EUR 0.03 0.02 0.02
Equity per share, EUR 0.18 0.19 -5.3 0.18
Cash flow from
operating activities 693 325 438
Cash and cash equivalents 1,397 1,389 1,245
Net liabilities -1,112 -996 -876
Gearing, % -50.2 -42.9 -38.7
Equity ratio, % 53.8 52.0 57.0
Return on equity, % 29.2 16.5 8.4
Return on capital employed, % 32.8 19.3 2.5
OUTLOOK FOR YEAR 2008
QPR Software´s management estimates, based on business prospects and reseller
forecasts, the Group´s net sales and operating profit to increase from the
previous year.
The nature of 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 unaudited financial report has been prepared in accordance with the
accounting policies set forth in International Accounting Standard 34 on
Interim Financial Reporting and in the Group´s Consolidated Financial
Statements for 2007.
RESULTS
Q2 2008 COMPARED WITH Q2 2007
QPR Software Group´s net sales were on last year´s level and reached EUR 2.215
million (2.225). Currency exchange rate changes during the quarter, mainly
weakening of the U.S. dollar and South African rand to euro, had a negative
impact of MEUR 0.056 to net sales. The impact of exchange rate changes is
recorded in its entirety in software license sales.
Net sales outside Finland developed very favorably compared with the first
quarter of 2008, but fell compared with the first quarter of 2007. Negative
development was mainly due to lower sales to Japanese market and exchange rate
changes. QPR technology based solution sales to Japanese stock exchange
companies for local securities market act (J-SOX) compliance were lower than
last year.
QPR delivered software licenses and services in April-June to 32 countries. The
Group made software license deliveries to Standard Bank of South Africa, Banco
Espirito Santo (Portugal), North Lanarkshire Council and Cardiff Bus Company
(UK) and City of Lodz (Poland), among others.
The company launched QPR ProcessGuide Xpress, a new desk top version of its
process modeling and analysis product, in May. The first sales of QPR
ProcessGuide Xpress were made already in the second quarter.
Operations of the Group´s Finnish business unit developed very favorably and
its net sales rose to EUR 0.759 million (0.582). Growth was attributable to
sales increase in software licenses and professional services. HK Ruokatalo,
Kastelli-Talot, Peikko Group, Pohjola Pankki and Sodexo were new customers,
among others. Co-operation with the local government IT management unit of
Ministry of Finance (Kunta-IT) expanded.
The Group´s net sales are accrued in its entirety from software business, with
the following break-down during the review period, (EUR 1,000):
4-6/ Share- 4-6/ Share- Change-
2008 % 2007 % %
Software licenses 1,179 53.2 1,338 60.1 -11.9
Maintenance services 749 33.8 664 29.8 12.8
Professional services 287 13.0 224 10.1 28.1
Total 2,215 100.0 2,225 100.0 -0.4
The geographical break-down of net sales was as follows, (EUR 1,000):
4-6/ Share- 4-6/ Share- Change-
2008 % 2007 % %
Finland 759 34.3 582 26.2 30.4
International 1,456 65.7 1,643 73.8 -11.4
Total 2,215 100.0 2,225 100.0 -0.4
Operating profit rose to EUR 0.324 million (0.233), and represented 14.6 %
(10.5) of net sales. Growth in operating profit is mainly attributable to
increase in operational efficiency and lower costs. Operating profit was
negatively affected by the recorded bad debt provisions of EUR 0.114 million
(0.128).
Net profit for the period was EUR 0.249 million (0.183), representing 11.2 % of
Group net sales (8.2).
RESULTS
JANUARY-JUNE 2008 COMPARED WITH JANUARY-JUNE 2007
The Group´s net sales for the reporting period rose 3 % compared with the
equivalent period last year and reached EUR 3.969 million (3.859). Currency
exchange rate changes during the reporting period, mainly weakening of the U.S.
dollar and South African rand to euro, had a negative impact of EUR 0.086
million to
net sales. The impact of exchange rate changes is recorded in its entirety in
software license sales.
Net sales outside Finland fell almost 6%, mainly due to lower sales in Japan
and exchange rate changes. The Group delivered software and services to 43
countries in the reporting period. The Group´s largest exports markets were
South Africa, the United States, Russia, Sweden and Japan.
Operations of the Group´s Finnish business unit developed very favorably; its
net sales increased by almost 25 % in the reporting period. Growth is
attributable to increased software license sales especially to private sector
and also to increased service sales in the second quarter.
The Group´s net sales are accrued in its entirety from software business, with
the following break-down during the review period, (EUR 1,000):
1-6/ Share- 1-6/ Share- Change- 1-12/
2008 % 2007 % % 2007
Software licenses 1,996 50.3 2,079 53.9 -4.0 3,489
Maintenance services 1,484 37.4 1,331 34.5 11.5 2,764
Professional services 489 12.3 449 11.6 8.9 806
Total 3,969 100.0 3,859 100.0 2.9 7,059
The geographical break-down of net sales was as follows, (EUR 1,000):
1-6/ Share- 1-6/ Share- Change- 1-12/
2008 % 2007 % % 2007
Finland 1,365 34.4 1,096 28.4 24.5 2,117
International 2,604 65.6 2,763 71.6 -5.8 4,942
Total 3,969 100.0 3,859 100.0 2.9 7,059
Operating profit was EUR 0.415 million (0.252), and represented 10.5 % (6.5) of
net sales. Growth in operating profit is mainly attributable to improved sales
and also to increased operational efficiency and lower costs. Operating profit
was negatively affected by the recorded bad debt provisions of EUR 0.130
million (0.145).
Net profit January-June was EUR 0.327 million (0.203). Earnings per share were
EUR 0.03 (0.02).
FINANCE AND INVESTMENTS
The value of total assets was at the end of June 2008 EUR 5.926 million
(6.191). The
Group´s investments in non-current assets during the review period totaled to
EUR 0.091 million (0.279).
Cash flow from operating activities was EUR 0.693 million (0.325). Cash and
cash equivalents at the end of the review period were EUR 1.397 (1.389) at the
end of the reporting period. The dividend of EUR 0.368 (0.489) was paid in the
reporting period.
The Group´s interest bearing liabilities were EUR 0,285 million (0.393). The
gearing
ratio as of 30 June 2008 was -50.2% (42.9 % as of June 30, 2007). Return on
capital employed was 32.8 % (19.3).
Short-term liabilities include deferred revenue in total of EUR 1.808 million
(1.728).
At the end of reporting period, quick ratio was 2.77 (2.76).
At the end of the reporting period, the Group equity stood at EUR 2.214 million
(2.320), and equity to assets ratio reached 53.8% (52.0%). Return on equity was
29.2% (16.5%). A total of 22,500 new shares were subscribed under the QPR
Software Plc Stock Option Plan 2003/III: 7,500 new shares were subscribed under
Option Plan 2003/III A and 15,000 new shares were subscribed under Option Plan
2003/III B. According to decision made by Annual General Meeting on 12 March
2008, subscription prices of the shares subscribed based on the option
rights were entered into the invested non-restricted equity fund.
PERSONNEL
At the end of the review period, the Group employed a total of 54 people (63).
For incentive and commitment purposes, the Group has personnel bonus scheme
covering the whole personnel and personnel stock option plan.
PRODUCT DEVELOPMENT
The amount of R&D expenses in the review period totaled to EUR 0.770 million
(0.736), representing 19.4% (19.1) of net sales.
During the review period, R&D expenses have been activated as assets for a
total amount of EUR 59 thousand (117). The depreciation period of capitalized
R&D expenses is four years.
Product development employed 16 (14) people at the end of the review period,
corresponding to 30 % of the total personnel. The core know-how of product
development remains centralized in the own organization. Long-term co-operation
continues with established subcontractors.
During the review period, Research & Development activities focused on the
development of a new version of the QPR product family, QPR 8, to be released
in the second half of 2008. The new version will broaden the scope of the QPR
software offering particularly in the area of risk identification, risk
assessment and control activity management as well as improve the integration
between QPR products and Microsoft Office.
QPR offers an interactive, easy-to-use, ready-to-run software that combines
process modeling and analysis (QPR ProcessGuide), business process automation
(QPR WorkFlow), performance management and measurement (QPR ScoreCard), and
business intelligence (QPR FactView) into one complete solution for risk
management and compliance. With the help of QPR software solutions,
organizations take control of risk and compliance issues, optimize business
processes, improve operational performance and drive strategy throughout their
organizations. Customers can utilize QPR solutions in order to comply with
rules and regulations as well as manage transitions caused by strategic or
regulatory demands. The software products developed by QPR are fast to
implement and adapt to customers' evolving requirements and their chosen
management methodology. QPR software applications are scalable from a
single-user to an organization-wide management system, and integrate seamlessly
to the customers' existing information systems.
The QPR product family has been localized into 24 languages.
DECISION MADE BY THE ANNUAL SHAREHOLDER´S MEETING AND GOVENANCE
The Annual Shareholders' Meeting held on 12 March 2008 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 2007 and released the Board of Directors and the Managing Directors
from liability.
The Annual Shareholders' Meeting approved the Board's proposal that a per-share
dividend of EUR 0.03, a total of EUR 368,106.06, be paid for the financial year
2007. The dividend was paid to shareholders entered in the company's
shareholder register, maintained by Finnish Central Securities Depository Ltd.,
on the record date of 17 March 2008. The dividend payment date was 26 March
2008.
The Annual Shareholders' Meeting resolved that the Board of Directors consist
of five (5) ordinary members. The Annual Shareholders' Meeting elected the
following persons to members of the Board of Directors: Jyrki Kontio,
Vesa-Pekka Leskinen, Jarmo Niemi, Asko Piekkola and Topi Piela. 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, Authorised Public Accountants, continues as QPR Software Plc's
Auditors, 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 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 web site, and on the
stock exchange release, published by the company on 12 March 2008.
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 web
site, and on the stock exchange release, published by the company on 12 March
2008.
The Annual Shareholders' Meeting decided to decrease the share premium reserve
as shown in the balance sheet as per 31 December 2007 by the total amount of
the share premium reserve of EUR 356 539.89 by transferring the decreased
amount to the invested non-restricted equity fund of the company. After the
decrease the amount of the share premium reserve shall be zero and it is
abolished.
The Annual Shareholders' Meeting further resolved to amend the decisions made
on 1 October 2003 and on 15 March 2005 regarding the issue of option rights so
that the subscription prices of the shares subscribed based on the option
rights will be entered into the invested non-restricted equity fund.
COMPANY SHARES AND TRADING IN COMPANY SHARES 1-6/2008
The Company's share capital at the end of the reporting period was EUR
1,359,089.93 divided into 12,377,863 shares. Based on stock option program the
company has issued, a maximum of 301,290 shares can be subscribed.
At the end of review period, the Company had a total of 578 shareholders. In
the reporting period, trading in company shares amounted to MEUR 0.201, i.e. an
average of EUR 1,913 per trading day. Trading in shares totaled 240,369 shares,
giving an average of 2,289 shares per trading day. Turnover in shares
corresponds to 1.9% of the total shares and the average price was EUR 0.84 per
share.
At the end of the reporting period, the total market value of the company
shares was MEUR 9.283 at the review period's closing price of EUR 0.75.
The Group announced the following holding change in the reporting period in
accordance with chapter 2, section 10 of the security market act:
- On 15 January, 2008: The total holding of Jouko Antero Pelkonen and his
controlled companies Electrosale Oy (company ID 0252032-5) and Pohjolan
Rahoitus Oy (company ID 0486816-5) in QPR Software Plc has increased above
one-tenth (1/10) to 10.098% of QPR Software Plc's share capital and votes.
OWN SHARES
QPR Software Plc has one share class. At the end of the reporting period the
company held 85,161 of its own shares with a total nominal value of EUR
9,367.71 and a total purchase price of EUR 67,353.85. The number of acquired
own shares in the reporting period was 3 400. Own shares held by the company
represent 0.69% of the Company´s capital stock.
The Board of Directors has been granted by the Annual Shareholders Meeting of
12 March 2008, a share repurchases authorization, valid until next Annual
Shareholders Meeting, to repurchase company shares in total of 250,000 shares
at maximum. According to the authorization the company may acquire own shares
in order to strengthen the company's capital structure, to be used as payment
in corporate acquisitions or when the company acquires assets related to its
business or as part of the company's incentive programs in a manner and to the
extent decided by the Board of Directors, or to be transferred for other
purposes or to be cancelled.
STOCK OPTION PROGRAMS
In the review period, the Company had two 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 second quarter, based on stock option program 2003/III, in total
of 180.000 hitherto unconverted stock options have been issued, and 121,290
stock options are held by the Company's subsidiary. The subscription time will
end December 31, 2008.
Based on stock option program 2005/I, there are no more unconverted stock
options as on 30 June, 2008. QPR Software Plc`s subsidiary held still 150,401
stock options, but their subscription period has ended.
At the end of the review period, a total of 180,000 hitherto unconverted stock
options have been issued, and in addition, a total of 121,290 stock options
were in the possession of the Company's subsidiary, to be subscribed by the
present and future employees and management.
CORPORATE GOVERNANCE
QPR Software Plc complies with the Helsinki Exchanges' Guidelines for Insiders
issued on 2 June 2008 and the Recommendation on Corporate Governance issued on
1 July 2004. The Company's Corporate Governance Statement is available in the
Investor section of the Company's website, http://www.qpr.com. Also, available
in the investor section is further information, such as, administration of
insiders register, public insiders register, list of major shareholders,
articles of association, charter of the Board, description of how internal
control and internal audit is organized, introductions of the members of the
Board and Executive Management Team, and the information published by the
company in the financial year.
OTHER EVENTS IN THE REPORTING PERIOD
The Board of Directors appointed B.A., MBA Jari Jaakkola, 46, as new Chief
Executive Officer. Jaakkola has worked as SVP, Business Operations for QPR
Software since August 2006. QPR Software Plc´s Chief Executive Officer Matti
Kanninen resigned from his position as of 3 January, 2008.
QPR Software´s Executive Management Teams comprises of CEO Jari Jaakkola
(chairman), VP, Channel Sales (Asia & Africa) Antti Ainasoja, VP, Channel Sales
(Europe & Americas) Maija Erkheikki, VP, Sales (Finland) Matti Erkheikki, VP,
Marketing & Solutions Development Teemu Lehto, acting CFO Päivi Vahvelainen and
VP, Products & Support Tony Virtanen.
RISKS AND FACTORS OF UNCERTAINTY IN THE NEAR FUTURE
In the financial statements of 2007 the risks related to the company's
activities have been reported in more detail. In the reporting period, there
were no changes in risks and factors of uncertainty in the near future. 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 standard payment terms, receivables and credit
limits. The management of QPR estimates that the company´s credit loss risk is
on customary and reasonable level.
FUTURE OUTLOOK
QPR Software´s management estimates, based on business prospects and reseller
forecasts, the Group´s net sales and operating profit in 2008 to increase from
the previous year. 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.
Closer co-operation with the company´s largest resellers will be reinforced in
international channel management this year. In marketing, the company
prioritizes web marketing and solutions development, and increases their weight
significantly in marketing mix from previous years.
The Company focuses its development resources on ready-to-run software products
for risk management and compliance, business performance management and
measurement, and business process modeling and analysis. New product versions
will be released to increase value of the software to customers by broadening
the solution scope and by introducing functionality enhancements especially in
the area of risk management and compliance.
In addition, the Company continues to follow the structural developments in the
software industry, and aims actively to participate in it.
QPR SOFTWARE PLC'S FINANCIAL INFORMATION IN 2008
In 2008, QPR Software Plc will publish its financial information as follows:
Interim Report 1-9/2008 Thursday, October 23, 2008
ENCLOSURES
GROUP INCOME STATEMENT
(EUR 1,000) 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2008 2007 2008 2007 2007
Net Sales 2,215 2,225 3,969 3,859 7,059
Other operating income 21 17 32 36 46
Material and services 273 383 532 456 689
Employee benefits expenses 986 1,059 1,929 2,103 4,048
Depreciation 69 48 139 90 214
Other operating expenses 584 518 986 993 2,123
Operating profit 324 233 415 252 31
Financial income and
expenses 6 8 4 23 33
Profit before tax 330 241 419 275 64
Income tax expense -81 -58 -92 -73 140
Profit for the period 249 183 327 203 204
Attributable to:
Equity holders of the
parent company 249 183 327 203 204
Earnings per share
(diluted), EUR 0.02 0.02 0.03 0.02 0.02
Earnings per share, EUR 0.02 0.02 0.03 0.02 0.02
GROUP'S BALANCE SHEET 30.6.2008
(EUR 1,000)
Assets 30.6.2008 30.6.2007 31.12.2007
Non-current assets
Tangible assets 274 343 321
Other intangible assets 447 365 448
Trade and other receivables 5 75 5
Deferred tax assets 435 284 502
Total non-current assets 1,161 1,067 1,276
Current assets
Trade and other receivables 3,368 3,734 2,570
Cash and cash equivalents 1,397 1,389 1,245
Total current assets 4,765 5,123 3,815
Total assets 5,926 6,191 5,091
Equity and Liabilities 30.6.2008 30.6.2007 31.12.2007
Equity
Share capital 1,359 1,359 1,359
Share premium 231 231 231
Reserve fund 22 22 21
Invested non-restricted equity fund 3 0 0
Translation differences -79 -60 -70
Treasure shares -67 0 -65
Retained earnings 745 768 787
Equity attributable to shareholders
of the parent company 2,214 2,320 2,264
Total equity 2,214 2,320 2,264
Non-current liabilities
Interest-bearing liabilities 182 285 182
Total non-current liabilities 182 285 182
Current liabilities
Accounts payables and other
payables 3,427 3,477 2,458
Interest-bearing liabilities 103 108 187
Total current liabilities 3,530 3,585 2,645
Total liabilities 3,712 3,871 2,827
Total equity and liabilities 5,926 6,191 5,091
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 reporting period
nor earlier, are approximately EUR 1.0 million, corresponding to approximately
EUR 0.3 million deferred tax assets. In the Group´s balance sheet as of 30
June, 2008, the remaining amount of deferred tax is EUR 0.435 million. The
retained losses of the U.S. subsidiary QPR Software, Inc., are approximately
EUR 0.7 million, for which no entry has been made as deferred tax assets.
GROUP'S CASH FLOW STATEMENT
(EUR 1,000) 1.1.- 1.1.- 1.1.-
30.6.2008 30.6.2007 31.12.2007
Cash flow from operating activities
Profit for the period 386 202 204
Adjustments for the profit
Depreciation 139 90 214
Non-cash transactions 29 73 -140
Changes in working capital
Changes in trade and other
receivables -804 -663 560
Changes in accounts payable and
other liabilities 972 627 -401
Interest expense and other
financial expenses 2 -4 -8
Interest income and other
financial income -6 27 41
Income taxes paid -25 -27 -32
Net cash from operating activities 693 325 438
Cash flow from investing activities
Purchases of tangible assets -22 -94 -140
Purchases of intangible assets -69 -185 -324
Net cash used in investing activities -91 -279 -464
Cash flow from financing activities
Proceeds from issuance of
share capital 4 49 49
Repayments of financial leases -83 -83 -108
Purchases of own shares -3 -18 -65
Dividends paid -368 -489 -489
Net cash used in financing activities -450 -542 -613
Net change in cash and
cash equivalents 152 -495 -639
Cash and cash equivalents in the
beginning of period 1,245 1,884 1,884
Cash and cash equivalents in the
end of period 1,397 1,389 1,245
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY 1.1.2007-30.6.2007
(EUR 1,000)
Invested
non-
Share Trans- restr.
holders' Share lation Treasure equity Retained
equity premium differ. shares fund earnings Total
Equity
1.1.2007 1,346 217 -49 0 0 1,072 2,586
Shares
issued 13 13
Issue
premium 36 36
Dividends
paid -489 -489
Translation
differences -11 -11
Purchase of
own shares -18 -18
Profit for
the period 203 203
Change in
shareholders'
equity 1-6 13 36 -11 0 0 -304 -266
Equity
30.6.2007 1,359 253 -60 0 0 768 2,320
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY 1.1.2008-30.6.2008
(EUR 1,000)
Invested
non-
Share Trans- restr.
holders' Share lation Treasure equity Retained
equity premium differ. shares fund earnings Total
Equity
1.1.2008 1,359 253 -70 -65 0 787 2,264
Shares
issued 3 3
Dividends
paid -368 -368
Translation
differences -10 -10
Purchase of
own shares -2 -2
Profit for
the period 327 327
Change in
shareholders'
equity 1-6 0 0 -10 -2 3 -41 -50
Equity
30.6.2008 1,359 253 -80 -67 3 746 2,214
GROUP COMMITMENTS AND CONTINGENT LIABILITIES
(EUR 1,000) 30.6.2008 31.12.2007
Commitments and contingent liabilities
Lease liabilities 355 460
Current lease liabilities
Lease liabilities maturing during one year 41 30
Lease liabilities maturing 2-5 years 36 21
Total 77 51
Total commitments and contingent liabilities 432 511
CHANGE IN GROUP'S INTEREST BEARING LIABILITIES
(EUR 1,000)
30.6.2008 30.6.2007 31.12.2007
Interest bearing
liabilities 1.1. 369 476 476
Change -84 0 -108
Interest bearing liabilities
30.6. / 31.12. 285 476 369
GROUP'S INTANGIBLE AND TANGIBLE ASSETS
Change in intangible assets
(EUR 1,000)
30.6.2008 30.6.2007 31.12.2007
Acquisition cost 1.1. 1,744 437 437
Increase 69 185 350
Change in tangible assets
30.6.2008 30.6.2007 31.12.2007
Acquisition cost 1.1. 1,045 748 748
Increase 22 94 140
GROUP INCOME STATEMENT PER QUARTER
1-3/ 1-3/ 4-6/ 4-6/ 7-9/ 10-12/
(EUR 1,000) 2008 2007 2008 2007 2007 2007
Net Sales 1,754 1,634 2,215 2,225 1,205 1,995
Other operating income 11 19 21 17 7 3
Material and services 259 73 273 383 82 151
Employee benefits
expenses 943 1,044 986 1,059 879 1,065
Depreciation 70 42 69 48 56 67
Other operating
expenses 402 476 584 518 488 642
Operating profit 91 19 324 233 -293 72
Financial income and
expenses -2 15 6 8 4 6
Profit before tax 89 34 330 241 -289 78
Income tax expenses -11 -15 -81 -58 68 144
Profit for the period 78 19 249 183 -221 222
GROUP KEY FIGURES
EUR (1,000) 1-6/ 1-6/ 1-3/ 1-3/
2008 2007 2008 2007 2007
Net sales 3,969 3,859 1,754 1,634 7,059
Net sales growth, % 2.9 2.9 7.3 -2.2 2.3
Operating profit 415 252 91 19 31
% of net sales 10.5 6.5 5.2 1.2 0.4
Profit or loss before tax 419 275 90 34 64
% of net sales 10.6 7.1 5.1 2.1 0.9
Profit for the period 327 203 78 19 204
% of net sales 8.2 5.2 4.5 1.2 2.9
Return on equity,% 29.2 16.5 14.8 3.3 8.4
Return on capital employed,% 32.8 19.3 14.7 5.1 2.5
Interest bearing liabilities 285 393 369 476 369
Cash and cash equivalents 1,397 1,389 1,077 1,244 1,245
Net liabilities -1,112 -996 -708 -768 -876
Equity 2,214 2,320 1,968 2,111 2,264
Gearing,% -50.2 -42.9 -36.0 -36.4 -38.7
Equity ratio,% 53.8 52.0 53.1 52.0 57.0
Total balance sheet 5,926 6,191 5,158 5,876 5,091
Investments in non-current
assets 91 279 37 104 463
% of net sales 2.3 7.2 2.1 6.4 6.6
Research and and development
expenses 770 736 384 344 1,502
% of net sales 19.4 19.1 21.9 21.0 21.3
Average number of personnel 53 61 55 59 58
Personnel at the beginning
of period 58 58 58 58 58
Personnel at the end of period 54 63 52 59 58
Earnings per share,€ 0.03 0.02 0.01 0.00 0.02
Earnings per share
(diluted), € 0.03 0.02 0.01 0.00 0.02
Equity per share, € 0.18 0.19 0.16 0.17 0.18
CALCULATION OF KEY INDICATORS:
Return on equity (ROE), % (counted on yearly level):
Profit for the period x 100
__________________________________________________
Shareholders' equity + minority interest (average)
Return on capital employed (ROCE), % (counted on yearly level):
Profit before taxes + interest and other financial
expenses x 100
________________________________________________________________
Balance sheet total - non-interest bearing liabilities (average)
Equity ratio, %:
Shareholders' equity x 100
______________________________________________
Balance sheet total - deferred revenue
Gearing, %:
Interest bearing liabilities - cash and cash equivalents x 100
______________________________________________________________
Shareholders' equity
Earnings per share, euro:
Profit for period
_______________________________________________________________
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
Dividend per share, euro:
Total dividend paid
____________________________________________________________
Adjusted number of shares at the end of the financial period
Market value of share capital:
(Number of shares - own shares) x share price at the end of the
financial period
Turnover of shares, % of share capital:
Turnover (number of shares) x 100
_______________________________________
Number of shares issued (average)
Quick ratio:
Current assets - inventories
_________________________________________
Current liabilities - advances received
MAJOR SHAREHOLDERS 30.6.2008
%-share
Number of Shares and
Shares votes
Ulkomarkkinat Oy 1,600,000 12.93%
Jouko Pelkonen 421,000 3.40%
Pohjolan Rahoitus Oy 601,000 4.86%
Electrosale Oy 322,000 2.60%
Yhteensä 1,344,000 10.86%
Vesa-Pekka Leskinen 851,400 6.88%
+ Kauppamainos Oy 475,170 3.84%
Yhteensä 1,326,570 10.72%
Alesco S.A 1,300,000 10.50%
Autocarrera Oy Ab 1,235,917 9.98%
Kari Junkkonen 512,016 4.14%
Fortel Invest Oy 425,326 3.44%
SR EQ Technology 376,000 3.04%
Päivi Marttila 293,072 2.37%
Edina Oy 33,900 0.27%
Yhteensä 326,972 2.64%
Asko Piekkola 316,438 2.56%
Jaakkola Jari 220,000 1.78%
Value FM Oy 55,000 0.44%
Yhteensä 275,000 2.22%
Esa Pääkkönen 246,054 1.99%
Veli-Mikko Leskinen 232,530 1.88%
Matti Kanninen 199,107 1.61%
Tony Virtanen 172,112 1.39%
Teemu Lehto 153,654 1.24%
Kai-Erik Becker 140,000 1.13%
Muut osakkeenomistajat 2,196,167 17.74%
Yhteensä 12,377,863 100.0%
Helsinki 24 July 2008
QPR SOFTWARE PLC
The Board of Directors
For more information, please contact:
QPR SOFTWARE PLC
Jari Jaakkola, CEO
Tel. +35840 502 6397
jari.jaakkola@qpr.com
http://www.qpr.com