COMPTEL
Stock exchange release
22 October 2008 at 8.00 am
INTERIM REPORT OF COMPTEL CORPORATION
1 JANUARY - 30 SEPTEMBER 2008
Net sales and order backlog increased from the previous year. Operating profit
excluding one-off items on the previous year level.
Key figures for the third quarter:
- Net sales EUR 21.0 million (July-September 2007: 19.8)
- Operating profit excluding one-off items EUR 2.7 million (4.0)
- Operating profit EUR 2.4 million (4.0)
- Earnings per share EUR 0.01 (0.02)
- Order backlog EUR 30.0 million (22.8)
- Outlook remains the same
Sami Erviö, President and CEO:
”Comptel's business environment has remained favourable so far in spite of the
uncertainty of global economy. The order backlog grew and order prospects
remained good. Net sales grew approximately six per cent in July-September based
on the acquisition of Axiom Systems. The profitability was weakened by an
operating loss of Axiom Systems and by one-off items related to the Axiom
integration. The integration has proceeded as planned and will be completed by
the end of this year.
We signed a significant agreement to deliver and maintain AXIOSS suite for the
broadband services of a leading telecom operator in India. In total, we closed
five new core licenses during the third quarter, two in Europe and Asia and one
in the Middle East.”
Business Review of January-September 2008
The net sales of Comptel Group in January-September grew by 5.7 per cent from
the previous year and were EUR 61.7 million (58.4). Excluding the weakening of
US dollar during the first half of the year, the growth of net sales would have
been 9.9 per cent in January-September. In July-September the net sales
increased by 5.9 per cent from the previous year and were EUR 21.0 million
(19.8). The growth in the third quarter was due to the consolidation of Axiom
Systems starting from 21 April 2008.
The Group's operating profit in January-September was EUR 8.5 million (9.0),
which corresponds 13.8 per cent of the net sales (15.4). The operating profit
excluding approximately EUR 0.7 million one-off items related to the integration
of Axiom Systems was EUR 9.2 million, which corresponds 14.9 per cent of the net
sales. The profitability of the review period was weakened by an approximately
EUR 2.0 million operating loss for Axiom Systems. In July-September the
operating profit was EUR 2.4 million (4.0), which corresponds 11.6 per cent of
the net sales (20.2).
The tax rate according to income statement was 50.9 per cent in the review
period. In January-September, withholding taxes of EUR 1.8 million were paid,
out of which EUR 1.3 million were booked as tax expenses according to the
taxation of previous years. Comptel will continue its measures to prevent double
taxation.
The order backlog was EUR 30.0 million at the end of the review period, showing
an increase of 31.6 per cent from the same period last year.
In April, Comptel strengthened its position as a leading provider of service
fulfillment solutions by acquiring Axiom Systems, a UK-based software product
company. The acquisition gives Comptel a strong position to capitalize the
growing investments of telecom service providers to new IP-based services, like
VoIP and IPTV. Axiom is specialised in the broadband market and has a good
market position in Europe as well as key customers in Asia-Pacific.
Business Areas
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| Net sales, EUR | 1-9 | 1-9 | Chang | 7-9 | 7-9 | Change | 2007 |
| million | 2008 | 2007 | e % | 2008 | 2007 | % | |
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| Europe | 31.0 | 35.9 | -13.6 | 9.1 | 11.4 | -20.5 | 48.5 |
--------------------------------------------------------------------------------
| Middle East and | 10.2 | 6.9 | 47.9 | 3.8 | 2.5 | 53.8 | 9.8 |
| Africa | | | | | | | |
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| Americas | 6.3 | 5.4 | 17.3 | 2.4 | 1.8 | 31.8 | 7.2 |
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| Asia-Pacific | 14.1 | 10.1 | 39.1 | 5.7 | 4.1 | 38.3 | 16.9 |
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| Total | 61.7 | 58.4 | 5.7 | 21.0 | 19.8 | 5.9 | 82.4 |
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| Operating profit | | | | | | | |
| by market area, | | | | | | | |
| EUR million | | | | | | | |
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| Europe | 16.2 | 21.2 | -23.7 | 4.3 | 7.2 | -40.3 | 28.3 |
--------------------------------------------------------------------------------
| Middle East and | 5.8 | 4.0 | 43.0 | 2.5 | 1.5 | 68.6 | 5.7 |
| Africa | | | | | | | |
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| Americas | 1.9 | 3.2 | -40,3 | 0.1 | 1.1 | -88.0 | 3.9 |
--------------------------------------------------------------------------------
| Asia-Pacific | 7.6 | 5.1 | 50.7 | 3.6 | 2.2 | 59.7 | 9.5 |
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| Unallocated costs | -23.0 | -24.5 | -6.3 | -8.1 | -8.1 | - | -30.9 |
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| Total | 8.5 | 9.0 | -5.4 | 2.4 | 4.0 | -39.3 | 16.5 |
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| Operating profit, | | | | | | | |
| as per cent of | | | | | | | |
| net sales | | | | | | | |
--------------------------------------------------------------------------------
| Europe | 52.2 | 59.1 | - | 47.7 | 63.5 | - | 58.3 |
--------------------------------------------------------------------------------
| Middle East and | 56.4 | 58.3 | - | 65.8 | 60.0 | - | 58.4 |
| Africa | | | | | | | |
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| Americas | 30.4 | 59.7 | - | 5.5 | 60.5 | - | 54.1 |
--------------------------------------------------------------------------------
| Asia-Pacific | 54.1 | 50.0 | - | 62.6 | 54.2 | - | 56.5 |
--------------------------------------------------------------------------------
| Total | 13.8 | 15.4 | - | 11.6 | 20.2 | - | 20.0 |
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During January-September and the third quarter, operations grew significantly in
all areas except Europe. In Europe the net sales were decreased by a partial
postponing of the customer specific solution deliveries offered in Norway and
Finland.
During January-September, Comptel closed 12 new core license agreements (1-9
2007: 13): six Comptel Mediation and Charging Solutions, four Comptel
Provisioning and Activation Solutions, one Comptel Fulfillment Solution and one
Comptel Interconnect Billing Solution.
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| Net sales | 1-9 | 1-9 | Chang | 7-9 | 7-9 | Change | 2007 |
| breakdown by | 2008 | 2007 | e % | 2008 | 2007 | % | |
| type, EUR million | | | | | | | |
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| Licenses | 19.3 | 17.7 | 8.8 | 6.7 | 5.5 | 20.7 | 27.8 |
--------------------------------------------------------------------------------
| Services and | 42.4 | 40.7 | 4.4 | 14.3 | 14.3 | 0.1 | 54.6 |
| Maintenance | | | | | | | |
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| Total | 61.7 | 58.4 | 5.7 | 21.0 | 19.8 | 5.9 | 82.4 |
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There were no significant changes in the breakdown of net sales.
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| Net sales by | 1-9 | 1-9 | Chang | 7-9 | 7-9 | Change | 2007 |
| sales channel, | 2008 | 2007 | e % | 2008 | 2007 | % | |
| EUR million | | | | | | | |
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| Direct Sales | 44.0 | 45.6 | -3.5 | 14.1 | 15.0 | -5.5 | 60.6 |
--------------------------------------------------------------------------------
| Partner Sales | 17.7 | 12.8 | 38.4 | 6.9 | 4.9 | 40.7 | 21.8 |
--------------------------------------------------------------------------------
| Total | 61.7 | 58.4 | 5.7 | 21.0 | 19.8 | 5.9 | 82.4 |
--------------------------------------------------------------------------------
Partner sales increased significantly as a result of the long-term agreement
signed with IBM India in the first quarter.
Financial Position
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| EUR million | 30 Sep 2008 | 31 Dec 2007 | Change % |
--------------------------------------------------------------------------------
| Balance sheet total | 81.1 | 73.6 | 10.1 |
--------------------------------------------------------------------------------
| Liquid assets | 9.6 | 14.7 | -34.4 |
--------------------------------------------------------------------------------
| Trade receivables | 22.6 | 27.1 | -16.6 |
--------------------------------------------------------------------------------
| Accrued income | 9.5 | 8.6 | 10.9 |
--------------------------------------------------------------------------------
| Deferred income related to partial | 1.9 | 2.7 | -30.0 |
| debiting | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 68.7 | 77.6 | - |
--------------------------------------------------------------------------------
The Group had EUR 3.0 million of interest-bearing debt at the end of the review
period. A dividend payment of EUR 6.4 million (5.4) and the acquisition of Axiom
Systems decreased liquid assets and equity ratio compared to the year-end.
Group's liquidity has remained on a good level and there is a EUR 12.0 million
credit facility available.
The Group's operating cash flow was EUR 12.3 million (6.7) in January-September.
The operating cash flow was remarkably strengthened due to trade receivables
decreasing to EUR 22.6 million (31 December 2007: 27.1) during the period. In
the third quarter the operating cash flow was EUR 4.1 million (3.6).
Investments, Research and Development (R&D)
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| EUR million | 1-9 | 1-9 | Chang | 7-9 | 7-9 | Change | 2007 |
| | 2008 | 2007 | e % | 2008 | 2007 | % | |
--------------------------------------------------------------------------------
| Gross investments | 10.5 | 1.7 | 512.1 | 0.2 | 1.0 | -79.2 | 1.9 |
| in intangible and | | | | | | | |
| tangible assets | | | | | | | |
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| Direct R&D | 10.0 | 7.4 | 35.6 | 4.0 | 2.4 | 65.7 | 10.3 |
| expenditure and | | | | | | | |
| investments | | | | | | | |
--------------------------------------------------------------------------------
| Capitalisation of | 3.6 | 1.9 | 90.4 | 1.0 | 0.9 | 22.1 | 2.9 |
| R&D expenditure | | | | | | | |
| according to IAS | | | | | | | |
| 38 | | | | | | | |
--------------------------------------------------------------------------------
Comptel Corporation acquired Axiom Systems for GBP 7.0 million (EUR 8.9 million)
on 21 April 2008. The acquisition was financed through Comptel Corporation's
liquid assets and by raising a debt. Comptel Corporation will pay an additional
purchase price if Axiom Systems' audited net sales in 2008 are more than EUR
13.5 million. The additional price may vary between GBP 4 and 16 million. The
maximum amount will be paid if Axiom Group's audited net sales in 2008 reach EUR
21.6 million. The additional purchase price comprises of both cash and Comptel
shares. In case an additional purchase price is paid, a maximum of 4.8 million
new Comptel shares will be issued. Net sales of Axiom were GBP 7.8 million (EUR
11.5 million) and the company was EBITDA negative in 2007. At the time of
acquisition Axiom had 87 employees.
Excluding the Axiom acquisition, gross investments in tangible and intangible
assets were EUR 1.0 million and comprised of investments in devices, software
and furnishing. The investments were financed by funds from operations.
The increase in the direct R&D expenditure and investments was due to the effect
of Axiom acquisition. To meet the requirements of IAS 38, Comptel has modified
its accounting principles for the capitalisation of development costs and of
costs related to internal projects. A share of the fixed costs defined
separately, is included in the cost of development and internal projects to
which they are related. In the review period, these costs amounted to EUR 0.7
million. The change has a positive impact on the operating profit.
Comptel's R&D expenditure and investments were mainly targeted to develop new
dynamic end-to-end solutions, which shorten time-to-market for new services and
enable service providers to charge for them.
Personnel
--------------------------------------------------------------------------------
| | 30 Sep | 30 Sep | Change % | 31 Dec 2007 |
| | 2008 | 2007 | | |
--------------------------------------------------------------------------------
| Number of employees at | 624 | 558 | 11.8 | 554 |
| the end of period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-9 2008 | 1-9 2007 | Change % | 2007 |
--------------------------------------------------------------------------------
| Average number of | 593 | 554 | 7.0 | 555 |
| personnel during the | | | | |
| period | | | | |
--------------------------------------------------------------------------------
Number of employees grew significantly following the acquisition of Axiom
Systems. In addition, Comptel strengthened especially its regional organisation
with new experts.
The personnel expenses in January-September were 47.0 per cent of net sales
(43.6) and in July-September 48.0 per cent of the net sales (37.7).
At the end of the period under review 48.4 per cent (60.8) of the personnel were
located in Finland, 14.3 per cent (17.9) in Norway, 13.3 per cent (10.4) in
Malaysia and 10.9 per cent in the United Kingdom (0.5).
Comptel's share
The closing price of Comptel's share on 30 September 2008 was EUR 1.25 (1.96).
Comptel's market value at the end of the period was EUR 133.7 million (209.8).
--------------------------------------------------------------------------------
| Comptel share | 1-9 | 1-9 | Change | 7-9 | 7-9 | Change | 2007 |
| | 2008 | 2007 | % | 2008 | 2007 | % | |
--------------------------------------------------------------------------------
| Shares traded, | 23.2 | 40.6 | -42.8 | 6.0 | 17.2 | -64.9 | 57.5 |
| million | | | | | | | |
--------------------------------------------------------------------------------
| Shares traded, | 32.8 | 80.1 | -59.1 | 8.4 | 33.3 | -74.9 | 106.0 |
| EUR million | | | | | | | |
--------------------------------------------------------------------------------
| Highest price, | 1.58 | 2.29 | -31.0 | 1.55 | 2.29 | -32.3 | 2.29 |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Lowest price, | 1.21 | 1.70 | -28.8 | 1.21 | 1.70 | -28.8 | 1.36 |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
Of Comptel's outstanding shares, 7.1 per cent were nominee registered or held by
foreign shareholders at the end of the review period.
During the review period, Comptel Corporation disposed gratuitously 110,463
shares to persons involved in the 2007 share-based incentive program and 45,871
shares to the members of the Board of Directors as a part of their annual
compensation.
Of the share options 2006C distributed during the review period, a total of
1,312,000 are held by the key personnel of Comptel Corporation. The current
share subscription price for option 2006C is EUR 1.48, which corresponds to the
trade volume weighted average quotation of the Comptel Corporation share on the
OMX Nordic Exchange in Helsinki during 1 April - 30 April 2008.
During the review period, also a number of 210,000 share options 2006B were
distributed. Of the share options 2006B, a total of 1,268,000 are held by the
key personnel of Comptel Corporation. The current share subscription price for
option 2006B is EUR 1.93, which corresponds to the trade volume weighted average
quotation of the Comptel Corporation share on the OMX Nordic Exchange in
Helsinki during 1 April - 30 April 2007 deducted by the dividend paid for the
year 2007.
The company held 92,654 of its own shares at the end of the period under review,
which is 0.09 per cent of the total number of its shares. The total counter-book
value of the shares held by the company was EUR 1,853.
Near-term Risks and Uncertainties
Comptel has described risks related to its operations as a part of the financial
statements for 2007. The risks are divided into strategic, financial, operative
and losses. Despite the further increased uncertainty in the markets and the
impaired visibility, there have not been any significant changes in Comptel's
risks and factors of uncertainty during the review period.
Comptel's main business currencies are the Euro and the US dollar. Changes in
exchange rates may affect the price level of the markets. Comptel hedges the
cash flows from orders. Changes in the US dollar rate may impact net sales and
profitability.
Comptel reorganised its operations in January 2008. Comptel's global success is
based on skilled personnel and a responsive customer-oriented organisation. This
requires intensifying the operations in the new organisation, constant
recruitment of skilled employees, keeping them in service and developing their
skills. If the company does not succeed in this and if the turnover of personnel
increases, it may significantly impair Comptel's operating results.
The application submitted by Comptel to prevent double taxation is still pending
in the Ministry of Finance. The company believes the treatment of its
withholding taxation will be changed. However, double taxation has an impact on
company's earnings per share in near term.
If Comptel encounters problems in turnover of personnel or its relationship with
customers or partners while integrating Axiom Systems, it may have a significant
impact on company's operating result in near term.
Outlook
The worldwide economic situation has raised further uncertainty and weakened the
visibility, which has not so far been seen in the global Operations Support
Systems (OSS) market. Thus Comptel's business prospects are expected to remain
favourable during the rest of the year.
However, the US dollar rate remaining below the level recorded in the previous
year or its weakening from the current level will slow down the growth of net
sales in Euro terms. A significant part of Comptel's business will continue to
comprise customer specific solutions for Elisa and Telenor. Its share of the
Group's net sales is not predicted to grow. The order backlog is on the good
level, mainly as a result of a strong stock of maintenance agreements.
It is estimated that Comptel's net sales will increase over 10 per cent in 2008.
Comptel's operating profit is expected to be 15-20 per cent of net sales before
the estimated EUR 1 million one-off costs related to integration of Axiom
Systems.
An increasing portion of Comptel's business will come from services for existing
customers, which, to some extent, lessens the fluctuation from one quarter to
another. Single business contracts or delivery projects may continue to have a
significant influence on a quarter's result.
TABLE PART
The interim financial statements have been prepared in accordance with IAS 34,
Interim Financial Reporting, as adopted by the EU. The accounting policies
adopted are mainly consistent with those of the annual statement for the year
ended 2007. Information about the changes in the accounting policies is given in
the notes.
All figures in the financial report have been rounded and consequently the sum
of the individual figures can deviate from the sum figure. The interim report is
unaudited.
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| Consolidated Income Statement | 1 Jan - | 1 Jan - | 1 Jul - | 1 Jul- |
| (EUR 1,000) | 30 Sep | 30 Sep | 30 Sep 2008 | 30 Sep |
| | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 61,688 | 58,367 | 21,009 | 19,847 |
--------------------------------------------------------------------------------
| Other operating income | 68 | 12 | 67 | 11 |
--------------------------------------------------------------------------------
| Materials and services | -4,831 | -6,588 | -1,634 | -2,718 |
--------------------------------------------------------------------------------
| Employee benefits | -28,993 | -25,466 | -10,076 | -7,483 |
--------------------------------------------------------------------------------
| Depreciation, amortisation and | -3,752 | -3,269 | -1,373 | -1,304 |
| impairment charges | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -15,656 | -14,045 | -5,562 | -4,351 |
--------------------------------------------------------------------------------
| | -53,232 | -49,369 | -18,645 | -15,857 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 8,525 | 9,010 | 2,430 | 4,001 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 841 | 477 | 464 | 221 |
--------------------------------------------------------------------------------
| Financial expenses | -1,120 | -757 | -286 | -472 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before income taxes | 8,245 | 8,730 | 2,608 | 3,750 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -4,197 | -2,902 | -1,222 | -1,223 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | 4,049 | 5,829 | 1,387 | 2,527 |
--------------------------------------------------------------------------------
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| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | 4,049 | 5,829 | 1,387 | 2,527 |
| company | | | | |
--------------------------------------------------------------------------------
| Minority interests | - | - | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders of the parent | | | | |
| company: | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.04 | 0.05 | 0.01 | 0.02 |
--------------------------------------------------------------------------------
| Earnings per share, diluted, | 0.04 | 0.05 | 0.01 | 0.02 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated Balance Sheet (EUR 1,000) | 30 Sep 2008 | 31 Dec 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Goodwill | 20,708 | 10,832 |
--------------------------------------------------------------------------------
| Other intangible assets | 12,253 | 8,312 |
--------------------------------------------------------------------------------
| Tangible assets | 2,651 | 2,400 |
--------------------------------------------------------------------------------
| Investments in associates | 513 | 513 |
--------------------------------------------------------------------------------
| Available-for sale financial assets | 87 | 87 |
--------------------------------------------------------------------------------
| Deferred tax assets | 1,174 | 782 |
--------------------------------------------------------------------------------
| Other non-current assets | 294 | - |
--------------------------------------------------------------------------------
| | 37,682 | 22,926 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 33,750 | 35,997 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 9,646 | 14,708 |
--------------------------------------------------------------------------------
| | 43,397 | 50,705 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 81,079 | 73,631 |
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--------------------------------------------------------------------------------
| Equity and liabilities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to equity holders | | |
| of the parent company | | |
--------------------------------------------------------------------------------
| Share capital | 2,141 | 2,141 |
--------------------------------------------------------------------------------
| Fund of invested non-restricted equity | 7,433 | 7,368 |
--------------------------------------------------------------------------------
| Translation difference | -912 | -817 |
--------------------------------------------------------------------------------
| Retained earnings | 41,514 | 43,338 |
--------------------------------------------------------------------------------
| | 50,177 | 52,030 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 63 | 116 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity | 50,239 | 52,147 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 4,613 | 2,660 |
--------------------------------------------------------------------------------
| Provisions | 3,458 | 776 |
--------------------------------------------------------------------------------
| Other non-current liabilities | 27 | - |
--------------------------------------------------------------------------------
| | 8,097 | 3,437 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Trade and other current liabilities | 22,742 | 18,048 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 30,839 | 21,485 |
--------------------------------------------------------------------------------
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| Total equity and liabilities | 81,079 | 73,631 |
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--------------------------------------------------------------------------------
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| Consolidated statement of cash flows | 1 Jan -30 Sep | 1 Jan -30 Sep 2007 |
| (EUR 1,000) | 2008 | |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Cash flows from operating activities | | |
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| Profit for the period | 4,049 | 5,829 |
--------------------------------------------------------------------------------
| Adjustments: | | |
--------------------------------------------------------------------------------
| Transactions without cash flow effect | 4,780 | 4,293 |
--------------------------------------------------------------------------------
| Interest and other financial expenses | 127 | 22 |
--------------------------------------------------------------------------------
| Interest income | -204 | -253 |
--------------------------------------------------------------------------------
| Income taxes | 4,197 | 2,902 |
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| Change in working capital: | | |
--------------------------------------------------------------------------------
| Change in trade and other receivables | 6,808 | -751 |
--------------------------------------------------------------------------------
| Change in inventories | - | 18 |
--------------------------------------------------------------------------------
| Change in trade and other current | -4,325 | -3,030 |
| liabilities | | |
--------------------------------------------------------------------------------
| Change in provisions | 10 | 632 |
--------------------------------------------------------------------------------
| Interest paid | -57 | -22 |
--------------------------------------------------------------------------------
| Interest received | 166 | 253 |
--------------------------------------------------------------------------------
| Income taxes paid | -3,230 | -3,198 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash from operating activities | 12,322 | 6,695 |
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| | | |
--------------------------------------------------------------------------------
| Cash flows from investing activities | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries, net of | -9,333 | - |
| cash | | |
--------------------------------------------------------------------------------
| Investments in tangible assets | -987 | -1,321 |
--------------------------------------------------------------------------------
| Investments in intangible assets | -36 | -666 |
--------------------------------------------------------------------------------
| Investments in development projects | -3,591 | -1,886 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash used in investing activities | -13,948 | -3,873 |
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| Cash flows from financing activities | | |
--------------------------------------------------------------------------------
| Dividends paid | -6,415 | -5,365 |
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| Acquisition of Corporation's own | - | -792 |
| shares | | |
--------------------------------------------------------------------------------
| Proceeds from borrowings | 3,000 | - |
--------------------------------------------------------------------------------
| Change in liabilities | -20 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash used in financing activities | -3,436 | -6,156 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net change in cash and cash | -5,062 | -3,334 |
| equivalents | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 14,708 | 12,934 |
| beginning of the period | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the end | 9,646 | 9,600 |
| of the period | | |
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| Change | -5,062 | -3,334 |
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| | | |
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| Consolidated statement of changes in equity | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | | | |
| of the parent company | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | Share | Other | Translati | Fair value | |
| | capital | reserves | on | reserve | |
| | | | differenc | | |
| | | | es | | |
--------------------------------------------------------------------------------
| Equity at 31 | 2,141 | 7,368 | -674 | -37 | |
| Dec 2006 | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | | |
| hedges: | | | | | |
--------------------------------------------------------------------------------
| gains and | | | | 199 | |
| losses | | | | | |
| taken to equity | | | | | |
--------------------------------------------------------------------------------
| Translation | | | 110 | | |
| difference | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | 110 | 199 | |
| recognized | | | | | |
| income and | | | | | |
| expense for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | | | | |
| Corporation's | | | | | |
| own shares | | | | | |
--------------------------------------------------------------------------------
| Transfer of | | | | | |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | |
| compensation | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | 2,141 | 7,368 | -564 | 163 | |
| Sep 2007 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | | Minority | Equity |
| | | | | interest | total |
--------------------------------------------------------------------------------
| EUR 1,000 | Treasur | Retained | Total | | |
| | y | earnings | | | |
| | shares | | | | |
--------------------------------------------------------------------------------
| Equity at 31 | - | 37,818 | 46,616 | 145 | 46,761 |
| Dec 2006 | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | | |
| hedges: | | | | | |
--------------------------------------------------------------------------------
| gains and | | | 199 | | 199 |
| losses taken | | | | | |
| to equity | | | | | |
--------------------------------------------------------------------------------
| Translation | | | 110 | | 110 |
| difference | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | 5,829 | 5,829 | - | 5,829 |
| period | | | | | |
--------------------------------------------------------------------------------
| Total | - | 5,829 | 6,138 | - | 6,138 |
| recognized | | | | | |
| income and | | | | | |
| expense for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Dividends | | -5,332 | -5,332 | -34 | -5,367 |
--------------------------------------------------------------------------------
| Acquisition of | -792 | | -792 | | -792 |
| Corporation's | | | | | |
| own shares | | | | | |
--------------------------------------------------------------------------------
| Transfer of | 365 | -365 | - | | - |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Share-based | | 543 | 543 | | 543 |
| compensation | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | -427 | 38,492 | 47,173 | 110 | 47,284 |
| Sep 2007 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of changes in equity | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | | | |
| of the parent company | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | Share | Other | Translati | Fair value | |
| | capital | reserves | on | reserve | |
| | | | differenc | | |
| | | | es | | |
--------------------------------------------------------------------------------
| Equity at 31 | 2,141 | 7,368 | -817 | 78 | |
| Dec 2007 | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | | |
| hedges: | | | | | |
--------------------------------------------------------------------------------
| gains and | | | | -226 | |
| losses | | | | | |
| taken to equity | | | | | |
--------------------------------------------------------------------------------
| Translation | | | -95 | | |
| difference | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | -95 | -226 | |
| recognized | | | | | |
| income and | | | | | |
| expense for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | |
--------------------------------------------------------------------------------
| Transfer of | | 65 | | | |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | |
| compensation | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | 2,141 | 7,433 | -912 | -148 | |
| Sep 2008 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | | Minority | Equity |
| | | | | interest | total |
--------------------------------------------------------------------------------
| EUR 1,000 | Treasur | Retained | Total | | |
| | y | earnings | | | |
| | shares | | | | |
--------------------------------------------------------------------------------
| Equity at 31 | -427 | 43,686 | 52,031 | 116 | 52,147 |
| Dec 2007 | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | | |
| hedges: | | | | | |
--------------------------------------------------------------------------------
| gains and | | | -226 | | -226 |
| losses taken | | | | | |
| to equity | | | | | |
--------------------------------------------------------------------------------
| Translation | | | -95 | | -95 |
| difference | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | 4,049 | 4,049 | - | 4,049 |
| period | | | | | |
--------------------------------------------------------------------------------
| Total | - | 4,049 | 3,727 | - | 3,727 |
| recognized | | | | | |
| income and | | | | | |
| expense for the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Dividends | | -6,415 | -6,415 | | -6,415 |
--------------------------------------------------------------------------------
| Transfer of | 302 | -302 | 65 | | 65 |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Share-based | | 769 | 769 | | 769 |
| compensation | | | | | |
--------------------------------------------------------------------------------
| Change in group | | | | -54 | -54 |
| structure1) | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | -125 | 41,787 | 50,176 | 63 | 50,239 |
| Sep 2008 | | | | | |
--------------------------------------------------------------------------------
1) The shares of Business Tools Oy transferred to Comptel Corporation's direct
holding
Notes
1. Changes in accounting principles
To meet the requirements of IAS 38, Comptel has modified its accounting
principles for the capitalisation of development costs and of costs related to
internal projects. A share of the fixed costs defined separately, is included in
the cost of development and internal projects to which they are related. The
management estimates the impact to be approximately EUR 900 thousand this year.
The estimate may differ from the actual result, as the costs of the projects to
be capitalised according to IAS 38 may vary during the financial period.
2. Net sales and operating profit by segment
Net sales by segment
--------------------------------------------------------------------------------
| EUR 1,000 | 1 Jan - 30 | 1 Jan - 30 | 1 Jul - 30 | 1 Jul - 30 |
| | Sep 2008 | Sep 2007 | Sep 2008 | Sep 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Europe | 30,997 | 35,894 | 9,069 | 11,405 |
--------------------------------------------------------------------------------
| Middle East and | 10,233 | 6,919 | 3,819 | 2,484 |
| Africa | | | | |
--------------------------------------------------------------------------------
| Americas | 6,347 | 5,411 | 2,404 | 1,824 |
--------------------------------------------------------------------------------
| Asia-Pacific | 14,112 | 10,143 | 5,717 | 4,134 |
--------------------------------------------------------------------------------
| Total | 61,688 | 58,367 | 21,009 | 19,847 |
--------------------------------------------------------------------------------
Operating profit by segment
--------------------------------------------------------------------------------
| EUR 1,000 | 1 Jan - 30 | 1 Jan - 30 | 1 Jul - 30 | 1 Jul - 30 |
| | Sep 2008 | Sep 2007 | Sep 2008 | Sep 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Europe | 16,177 | 21,204 | 4,326 | 7,247 |
--------------------------------------------------------------------------------
| Middle East and | 5,771 | 4,037 | 2,511 | 1,490 |
| Africa | | | | |
--------------------------------------------------------------------------------
| Americas | 1,926 | 3,230 | 133 | 1,104 |
--------------------------------------------------------------------------------
| Asia-Pacific | 7,638 | 5,068 | 3,578 | 2,241 |
--------------------------------------------------------------------------------
| Group unallocated | -22,988 | -24,529 | -8,118 | -8,081 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Total | 8,525 | 9,010 | 2,430 | 4,001 |
--------------------------------------------------------------------------------
3. Business combinations
On 21 April 2008, Comptel Corporation acquired all the shares of Axiom Systems
Holdings Limited. UK-based Axiom Systems is specialised in the broadband
fulfillment market. The acquisition puts Comptel in a strong position to
capitalize on the growing investments being made by service providers in new
IP-based services, like VoIP and IPTV.
The purchase price of GBP 7.0 million (EUR 8.9 million) was paid in cash.
Comptel Corporation will pay an additional purchase price if Axiom Group's
audited net sales in 2008 are more than EUR 13.5 million. The additional price
may vary between GBP 4 and 16 million. The maximum amount will be paid if Axiom
Group's audited net sales in 2008 reach EUR 21.6 million. The additional
purchase price will comprise of both cash and Comptel shares. In case the
additional purchase price is paid, a maximum of 4.8 million new Comptel shares
will be issued. The additional purchase price cannot be measured reliably at
this stage and has therefore not been included in the calculation of the
goodwill.
The actual purchase price of EUR 8.9 million, costs directly attributable to the
acquisition are EUR 0.7 million and the fair value of allocations to the
identifiable net assets is EUR 3.0, therefore the goodwill according to IFRS 3
is EUR 9.7 million. EUR 3.0 million was allocated to intangible assets, which
are amortised over 5 years.
The goodwill is attributable to the synergies expected to arise subsequent to
the acquisition. The acquisition is in line with Comptel's long-term growth
strategy to become world's leading supplier of telecom software. According to
the Comptel management, the goodwill is mainly based on the fact that Axiom's
solutions for IP services will complement Comptel's existing portfolio, the
common sales network will enable cross selling to Axiom's and Comptel's
customers, and the combined R&D will strengthen the operations. The
professionally skilled workforce is also part of the goodwill.
Axiom Group's loss for the period 21 April to 30 September 2008, EUR 2.0
million, is included in the Comptel Group result. Comptel Group net sales for
January - September would have been EUR 64.2 million and profit EUR 3.2 million
if Axiom had been consolidated from the beginning of the year 2008.
The values of the assets and liabilities arising from the acquisition were as
follows:
--------------------------------------------------------------------------------
| EUR 1,000 | Recognised fair values | Pre-acquisition carrying |
| | on acquisition | amounts |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Technology (incl. in | 3,001 | - |
| intangible assets) | | |
--------------------------------------------------------------------------------
| Machinery and equipment | 289 | 289 |
--------------------------------------------------------------------------------
| Deferred tax assets | 233 | 233 |
--------------------------------------------------------------------------------
| Trade receivables and | 4,246 | 4,246 |
| other receivables | | |
--------------------------------------------------------------------------------
| Cash and cash | 124 | 124 |
| equivalents | | |
--------------------------------------------------------------------------------
| Total assets | 7,894 | 4,892 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deferred tax | 901 | - |
| liabilities | | |
--------------------------------------------------------------------------------
| Other non-interest | 7,195 | 7,195 |
| bearing liabilities | | |
--------------------------------------------------------------------------------
| Interest bearing | 89 | 89 |
| liabilities | | |
--------------------------------------------------------------------------------
| Total liabilities | 8,184 | 7,284 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets | -291 | -2,392 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost | 9,457 | |
--------------------------------------------------------------------------------
| Goodwill | 9,748 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchase price paid in | 9,457 | |
| cash | | |
--------------------------------------------------------------------------------
| Cash and cash | -124 | |
| equivalents in acquired | | |
| subsidiary | | |
--------------------------------------------------------------------------------
| Total net cash outflow | 9,333 | |
| on the acquisition | | |
--------------------------------------------------------------------------------
4. Income tax expense
Tax rate according to the income statement for the period was 50.9% (33.2%).
The tax rate is very high due to double taxation. In 2006 Adjustment of the Tax
Office for Major Corporations refused to accept the crediting of taxes withheld
at source in taxation of 2004 and 2005. Comptel continues its activities to
attain an adjustment to the decision to avoid double taxation. The issue has
been transferred to the Ministry of Finance. Comptel believes the treatment of
its withholding taxation will be changed.
According to the Board of Adjustment's decision currently in force, Comptel
Corporation has expensed taxes withheld at source amounting to EUR 1,310
thousand in January - September
(EUR 685 thousand).
5. Tangible assets
--------------------------------------------------------------------------------
| EUR 1,000 | 1 Jan - 30 Sep | 1 Jan - 30 Sep |
| | 2008 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Additions | 999 | 1,319 |
--------------------------------------------------------------------------------
| Business combinations | 289 | - |
--------------------------------------------------------------------------------
| Disposals | -5 | -28 |
--------------------------------------------------------------------------------
6. Related party transactions
The Comptel Group has a related party relationship with its associates, the
Board of Directors, CEO and deputy CEO and the members of the Executive Board.
Transactions, which have been entered into with related parties (associates),
are as follows:
--------------------------------------------------------------------------------
| EUR 1,000 | 1 Jan - 30 Sep | 1 Jan - 30 Sep |
| | 2008 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchases of goods and services | 1,025 | 2,063 |
--------------------------------------------------------------------------------
| Interest income | 38 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | 30 Sep 2008 | 31 Dec 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trade and other current receivables | 188 | 179 |
--------------------------------------------------------------------------------
| Trade and other current liabilities | 260 | 416 |
--------------------------------------------------------------------------------
Remuneration to key management
The key management personnel compensation includes the employee benefits of the
CEO, deputy CEO, the members and deputy members of the Board of Directors and
the members of the Executive Board.
--------------------------------------------------------------------------------
| EUR 1,000 | 1 Jan - 30 Sep | 1 Jan - 30 Sep |
| | 2008 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Salaries and other short-term employee | 1,368 | 1,204 |
| benefits | | |
--------------------------------------------------------------------------------
| Share-based payments | 407 | 414 |
--------------------------------------------------------------------------------
7. Commitments
Minimum lease payments on non-cancellable office facilities and other operating
leases are payable as follows:
--------------------------------------------------------------------------------
| EUR 1,000 | 30 Sep 2008 | 31 Dec 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Less than one year | 4,006 | 3,411 |
--------------------------------------------------------------------------------
| Between one and five years | 12,934 | 11,560 |
--------------------------------------------------------------------------------
| More than five years | 3,611 | 4,595 |
--------------------------------------------------------------------------------
| Total | 20,551 | 19,567 |
--------------------------------------------------------------------------------
The group has no material capital commitments for the purchase of tangible
assets
as at 30 September 2008.
8. Contingent liabilities
--------------------------------------------------------------------------------
| EUR 1,000 | 30 Sep 2008 | 31 Dec 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Bank guarantees | 823 | 1,132 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9. Key figures
--------------------------------------------------------------------------------
| Financial summary | 1 Jan - 30 | 1 Jan - 30 | 1 Jan - 31 Dec |
| | Sep 2008 | Sep | 2007 |
| | | 2007 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, EUR 1,000 | 61,688 | 58,367 | 82,399 |
--------------------------------------------------------------------------------
| Net sales, change % | 5.7 | 1.3 | 2.4 |
--------------------------------------------------------------------------------
| Operating profit, EUR 1,000 | 8,525 | 9,010 | 16,518 |
--------------------------------------------------------------------------------
| Operating profit, change % | -5.4 | 41.8 | 47.1 |
--------------------------------------------------------------------------------
| Operating profit, as % of | 13.8 | 15.4 | 20.0 |
| net sales | | | |
--------------------------------------------------------------------------------
| Profit before taxes, EUR | 8,245 | 8,730 | 16,396 |
| 1,000 | | | |
--------------------------------------------------------------------------------
| Profit before taxes, as % of | 13.4 | 15.0 | 19.9 |
| net sales | | | |
--------------------------------------------------------------------------------
| Return on equity, % | - | - | 21.9 |
--------------------------------------------------------------------------------
| Return on investment, % | - | - | 32.9 |
--------------------------------------------------------------------------------
| Equity ratio, % 1) | 68.7 | 76.7 | 77.6 |
--------------------------------------------------------------------------------
| Gross investments in | 10,497 | 1,715 | 1,908 |
| tangible and intangible | | | |
| assets, EUR 1,000 2) | | | |
--------------------------------------------------------------------------------
| Gross investments in | 17.0 | 2.9 | 2.3 |
| tangible and intangible | | | |
| assets, as % of net sales | | | |
--------------------------------------------------------------------------------
| Capitalisations according to | 3,591 | 1,886 | 2,921 |
| IAS 38 to intangible assets | | | |
--------------------------------------------------------------------------------
| Research and development | 10,043 | 7,404 | 10,333 |
| expenditure, EUR 1,000 | | | |
--------------------------------------------------------------------------------
| Research and development | 16.3 | 12.7 | 12.5 |
| expenditure, as % of net | | | |
| sales | | | |
--------------------------------------------------------------------------------
| Order backlog, EUR 1,000 3) | 30,038 | 22,818 | 35,051 |
--------------------------------------------------------------------------------
| Average number of employees | 593 | 554 | 555 |
| during the period | | | |
--------------------------------------------------------------------------------
| Interest-bearing net | -6,573 | -9,600 | -14,708 |
| liabilities, EUR 1,000 | | | |
--------------------------------------------------------------------------------
| Gearing ratio, % | -13.1 | -20.3 | -28.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) When calculating the equity ratio for 2007, those | |
| deferred income items recognised on the basis of the | |
| percentage of completion method as well as deferred income | |
| arising from sales accruals were accounted for as advances | |
| received. The figure for September 2007 has been restated. | |
--------------------------------------------------------------------------------
| 2) Includes acquisition of Axiom Systems. Gross | |
| investments excluding the acquisition were EUR 1,040 | |
| thousand which amount to 1.7 percent of net sales. | |
--------------------------------------------------------------------------------
| 3) The order book may vary significantly during the | |
| financial period. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Per share data | 1 Jan - 30 | 1 Jan - 30 | 1 Jan - 31 |
| | Sep 2008 | Sep 2007 | Dec 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | 0.04 | 0.05 | 0.10 |
--------------------------------------------------------------------------------
| EPS diluted, EUR | 0.04 | 0.05 | 0.10 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 0.47 | 0.44 | 0.49 |
--------------------------------------------------------------------------------
| Dividend per share, EUR | - | - | 0.06 |
--------------------------------------------------------------------------------
| Dividend per earnings, % | - | - | 59.1 |
--------------------------------------------------------------------------------
| Effective dividend yield, % | - | - | 4.2 |
--------------------------------------------------------------------------------
| P/E ratio | - | - | 14.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjusted number of shares at the | 107,054,810 | 107,054,810 | 107,054,810 |
| end of the period | | | |
--------------------------------------------------------------------------------
| - of which the number of | 92,654 | 234,746 | 240,341 |
| treasury shares | | | |
--------------------------------------------------------------------------------
| Outstanding shares | 106,962,156 | 106,820,064 | 106,814,469 |
| Adjusted average number of | 106,930,610 | 106,859,259 | 106,848,199 |
| shares during the period | | | |
--------------------------------------------------------------------------------
| Average number of shares, | 106,930,610 | 106,859,259 | 106,848,199 |
| dilution included | | | |
--------------------------------------------------------------------------------
10. Definition of key figures
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating margin % | = | Operating profit/loss | x 100 |
--------------------------------------------------------------------------------
| | | Net sales | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit margin (before | = | Profit/loss before taxes | x 100 |
| income taxes) % | | | |
--------------------------------------------------------------------------------
| | | Net sales | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity % (ROE) | = | Profit/loss | x 100 |
--------------------------------------------------------------------------------
| | | Shareholders' equity (average | |
| | | during year) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investment % | = | Profit/loss before taxes + | x 100 |
| (ROI) | | financial expenses | |
--------------------------------------------------------------------------------
| | | Shareholders' equity - interest | |
| | | bearing liabilities | |
| | | (average during the year) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio % | = | Shareholders' equity | x 100 |
--------------------------------------------------------------------------------
| | | Balance sheet total - advances | |
| | | received | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross investments in | = | Gross investments in tangible and | x 100 |
| tangible and intangible | | intangible assets | |
| assets, as % of net | | | |
| sales | | | |
--------------------------------------------------------------------------------
| | | Net sales | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Research and development | = | Research and development | x 100 |
| expenditure, as % of net | | expenditure | |
| sales | | | |
--------------------------------------------------------------------------------
| | | Net sales | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gearing ratio % | = | Interest-bearing liabilities - | x 100 |
| | | cash and cash equivalents | |
--------------------------------------------------------------------------------
| | | Shareholders' equity | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS) | = | Net profit for the financial year | |
| | | attributable to equity | |
| | | shareholders | |
--------------------------------------------------------------------------------
| | | Average number of outstanding | |
| | | shares for the financial year | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per share | = | Equity attributable to the equity | |
| | | holders of the parent company | |
--------------------------------------------------------------------------------
| | | Adjusted number of outstanding | |
| | | shares at balance sheet date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend per share | = | Dividend | |
--------------------------------------------------------------------------------
| | | Adjusted number of outstanding | |
| | | shares at balance sheet date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend per earnings % | = | Dividend per share | x 100 |
--------------------------------------------------------------------------------
| | | Earnings per share (EPS) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effective dividend yield | = | Dividend per share | x 100 |
| % | | | |
--------------------------------------------------------------------------------
| | | Share closing price at balance | |
| | | sheet date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P/E ratio | = | Share closing price at balance | |
| | | sheet date | |
--------------------------------------------------------------------------------
| | | Earnings per share (EPS) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPTEL CORPORATION
Board of Directors
Additional information:
Mr. Sami Erviö, President and CEO, tel. +358 9 700 1131
Mr. Veli Matti Salmenkylä, CFO, tel. +358 50 2813
Mr. Samppa Seppälä, Director, IR and Corporate Communications, tel. +358 50 568
0533
Distribution:
NASDAQ OMX Helsinki
Major media