Stonesoft Corporation Stock Exchange Release 23 October 2008
STONESOFT CORPORATION'S INTERIM REPORT FOR JANUARY-SEPTEMBER 2008
StoneGate sales grew by 64%, net sales by 45% in the third quarter
The sales of Stonesoft's main product portfolio, the StoneGate
product line, increased by 64% and the company's net sales by 45%
during the third quarter compared to the corresponding period in the
previous year. The positive development of sales and net sales as
well as the cash flow has continued for four consecutive quarters.
Summary
The comparable figures from the corresponding period in the previous
year are in brackets and refer to the figures of continuing
operations.
JULY-SEPTEMBER 2008
- Stonesoft's core business, the sales of the StoneGate product
family, EUR 3.3 (2.0) million, growth 64%
- Net sales EUR 5.9 (4.0) million, growth 45%
- Operating result EUR -0.5 (-1.6) million
- Operating result as percentage of net sales -9% (-41%)
- Earnings per share EUR -0.01 (-0.03)
- Equity per share EUR 0.06 (0.12)
- Cash flow EUR -0.6 (-1.8) million
- Liquid assets at the end of the period EUR 7.3 (9.1) million
January-September 2008
- Stonesoft's core business, the sales of the StoneGate product
family, EUR 10.5 (7.0) million, growth 50%
- Net sales EUR 17.5 (13.2) million, growth 32%
- The operating result EUR -2.1 (-5.3) million
- The operating result as percentage of net sales -12% (-40%)
- Earnings per share EUR -0.4 (-0.9)
- Equity per share EUR 0.06 (0.12)
- Cash flow EUR -1.7 (-5.2) million. The total cash flow, including
the last payment of the selling price of Embe Systems Oy, EUR 0.8
million, was EUR -1.0 million euros.
CEO Ilkka Hiidenheimo
During the third quarter of 2008, the sales of the StoneGate product
family grew by 64% and net sales by 45% compared to the corresponding
period in the previous year. The sales of StoneGate products were EUR
3.3 million. The positive development has continued for four
consecutive quarters. Also the cash flow and operating result of the
company developed positively.
In July we signed a significant strategic co-operation agreement with
Algeria Telecom, the leading Algerian telecom operator. The first
order related to the co-operation at the value of more than EUR 0.7
million was delivered to the Algerian Ministry of Healthcare already
during the second quarter of the year. In September we received an
order at the value of EUR 1.9 million from a major Russian telecom
operator. These events significantly strengthen our position on the
emerging markets and demonstrate that we have chosen the right
strategy and made profitable investments in these areas. However, in
the United States we did not meet our targets, due to, among other
things, the low number of purchases by the government and the
postponement of individual deals because of the economical
uncertainty. In our view, the cost-efficiency of our products and the
benefits they bring to our customers become even more important
during economically difficult times, although the insecurity of the
finance markets may also have a negative effect on the purchase
decisions of our customers.
During the third quarter of the year we introduced the virtual
intrusion prevention system (IPS) for protecting internal networks.
The solution complements our product offering for the VMware virtual
environment and meets the demand created by the strong growth of
virtualization of IT systems. The first deliveries of the StoneGate
Virtual Firewall and Virtual IPS solution have already been made to
customers.
NET SALES AND RESULT
July-September 2008 (hereinafter 'reporting period')
The group's net sales in the reporting period were EUR 5.9 (4.0)
million. The growth compared to the corresponding period in the
previous year was EUR 1.8 million, or 45%. The operating result
(EBIT) was EUR -0.5 (-1.6) million and the result after taxes was EUR
-0.5 (-1.8) million.
The group's core business, the sales of the main product portfolio
StoneGate, comprising of a firewall, VPN, SSL VPN and IPS (Intrusion
detection and Prevention System), were EUR 3.3 (2.0) million, an
increase of 64% compared to the corresponding period in the previous
year.
The geographical distribution of net sales was as follows: Europe 62%
(63%), Emerging Markets (Russia, North Africa and Middle East) 17%
(8%) Americas (North and South America) 15% (23%) and APAC
(Asia-Pacific) 6% (6%).
January - September 2008 (hereinafter 'fiscal period')
The group's net sales in the fiscal period were EUR 17.5 (13.2)
million. The growth compared with the previous year's corresponding
period was EUR 4.3 million, or 32%. The operating result (EBIT) was
EUR -2.1 (-5.3) million and the loss after taxes was EUR -1.9 (-3.1)
million.
The sales of the group's main product portfolio StoneGate were EUR
10.5 (7.0) million, an increase of 50% compared to the corresponding
period in the previous year.
The geographical distribution of net sales was as follows: Europe 61%
(61%), Emerging Markets (Russia, North Africa and Middle East) 16%
(11%), Americas (North and South America) 19% (22%) and APAC
(Asia-Pacific) 4% (6%).
Finance and investments
At the end of the fiscal period, the group's total assets were EUR
15.2 (16.5) million. The equity ratio was 46% (62%) and gearing (the
ratio of net debt to shareholder's equity) -1.95 (-1.34).
The group has no interest-bearing debt and the consolidated liquid
assets of the group at the end of the fiscal period totaled EUR 7.3
(9.1) million. Investments in tangible and intangible assets were EUR
0.41 (0.34) million.
DEVELOPMENT OF BUSINESS OPERATIONS
Main business events in the reporting period
In July, Stonesoft entered a strategic partnership with the leading
national telecommunications company in Algeria, Algeria Telecom. The
first order related to the partnership at the value of more than EUR
0.7 million was delivered to the Algerian Ministry of Healthcare
already at the end of the second quarter in June 2008.
In August, Stonesoft certified the VMware ESX server as a supported
environment and became a member of the VMware VMsafe(TM) technology
program. In September, Stonesoft's StoneGate Virtual Security
Solutions received the VMware certification.
In September, Stonesoft introduced the StoneGate Virtual IPS 4.3.1
(Intrusion Prevention System) to protect internal networks from
malicious traffic.
In September, Stonesoft received an order from a major Russian
telecom operator at the value of USD 1.9 million. The order is
strategically significant to the company and a very large one-time
order in this category. The delivery of the products will take place
during this year and the order will have an impact mainly on the
operating result of the last quarter of the year.
MAJOR EVENTS AFTER THE FISCAL PERIOD
In October, Stonesoft and Magirus, one of the leading IT solution
providers in Europe extended their distribution agreement to cover
the whole Europe. The agreement covered originally Germany, Austria,
Switzerland and Italy, and now it has been extended to include Great
Britain, Denmark, Sweden, the Netherlands, France, Spain, Portugal
and the Middle East.
In October, Stonesoft introduced the StoneGate FW-310 firewall, which
provides enhanced network security for the remote offices of
geographically distributed organizations.
REVIEW OF RESEARCH AND DEVELOPMENT ACTIVITIES
Stonesoft continued its strong investments in R&D. The R&D
investments during the fiscal period totaled EUR 3.8 (3.7) million,
which represented 22% (21%) of operating expenses.
R&D employed 67 (64) persons at the end of the reporting period.
SHARE CAPITAL AND STOCK OPTION PROGRAMS
At the end of the fiscal period, Stonesoft's share capital recorded
in the Trade Register totaled EUR 1 146 054.64. The number of shares
was 57 302 732. The share capital remained unchanged.
Stock option programs
The company has two valid stock option programs, the Stock Option
Program 2004-2010, the subscription price of which is EUR 0.56, and
the Stock Option Program 2008-2014, the subscription price of which
is EUR 0.30. During the fiscal period no subscriptions were made on
the basis of the stock option programs for the key personnel of the
company.
DEVELOPMENT OF SHARE PRICES AND TURNOVER
In the beginning of the fiscal period, the price of Stonesoft's share
was EUR 0.29 (0.47). At the end of the fiscal period the price was
EUR 0.38(0.41). The highest price was EUR 0.50 (0.56) and the lowest
EUR 0.24 (0.37). The share price divided by earnings per share (P/E)
at the end of the fiscal period was -10.7 (-4.5). During the fiscal
period the total turnover of Stonesoft shares amounted to EUR 4.0
(6.2) million. Based on the share price at the end of the fiscal
period, Stonesoft's market value was EUR 21.8 (23.5) million.
NOTICES IN CHANGE OF OWNERSHIP
During the fiscal period, the company gave no notices of changes in
ownership.
ACQUISITIONS AND CHANGES IN GROUP STRUCTURE
No acquisitions were made and no other changes in the group structure
were implemented during the reporting period.
PERSONNEL
At the end of the fiscal period, the group's personnel totaled 188
(183).
AUTHORIZATIONS OF THE BOARD OF DIRECTORS
The Annual General Meeting of Shareholders (AGM) held on April 23,
2008, decided to grant the Board of Directors a new authorization and
to cancel the authorization granted by the AGM in 2007.
According to the new authorization, the Board of Directors is
authorized to issue new shares and to grant stock option rights and
other special rights, in one or several tranches, to the extent that
the total number of shares or rights to the shares issued may be
11.450.000 at the maximum.
The new shares to be issued in a new issue and/or the stock option or
special rights may be offered for subscription either according to
the shareholders' pre-emptive subscription rights or in deviation
from the shareholders' pre-emptive subscription right, in case the
deviation is justified by a weighty financial reason for the company,
such as financing of an acquisition, enabling of a joint venture
transaction, providing of additional financial alternatives, and/or
an arrangement for incentive program directed to the company's
personnel.
The issue may be directed partly or in full to the company's main
shareholders, Ilkka Hiidenheimo and Hannu Turunen, who have
reconfirmed to be ready to invest at least three (3) million Euros in
the company in form of convertible bond in order to strengthen the
company's capital structure with an additional cash reserve and to
ensure the continuance of the positive development in the future in
line with the company's strategy and growth plan. The commitment
given by the main shareholders is in force until the end of the AGM
in 2009.
The Board of Directors was authorized to decide other terms and
conditions related to the share issues and to the issuance of stock
option or other special rights. The authorization is in force until
the end of the AGM in 2009.
Based on the authorization given, the Board of Directors of Stonesoft
Corporation decided in its meeting on 6 May 2008 to approve the Stock
Option Plan 2008, according to which new stock option rights can be
granted to the members of the Board of Directors, other management
and key persons in the personnel of the companies of Stonesoft Group.
The total amount of stock option rights that can be granted is
3.000.000 and they entitle to subscribe, in total, 3.000.000 shares
in the Stonesoft Corporation. The stock option rights of the Stock
Option Plan 2008 are divided into four series, each having an own
subscription period as follows:
Series A on March 1, 2010 - December 31, 2014,
Series B on March 1, 2011 - December 31, 2014,
Series C on March 1, 2012 - December 31, 2014, and
Series D on March 1, 2013 - December 31, 2014.
The subscription prices of the shares correspond to the
volume-weighted average share price of the Company during the last 90
trading days on the NASDAQ OMX Helsinki Ltd before the Board Meeting
deciding on this plan. The subscription price of a share with stock
options is EUR 0.30.
In its meeting held on 17 June 2008, the Board of Directors of
Stonesoft Corporation decided to supplement the terms in paragraph II
6 and II 7 of the Stock Option Plan 2008 approved earlier in order to
grant to a stock option holder the same or equal rights as a
shareholder has in case of issuance of new shares, stock options or
other specific rights prior to share subscriptions as well as in
certain other special cases.
The terms and conditions of the Stock Option Plan 2008 are available
in full on the company website at http://www.stonesoft.com.
The company does not own its shares and the Board of Directors does
not have an authorization to acquire its own shares.
CORPORATE GOVERNANCE
Stonesoft Corporation complies with the Corporate Governance
Recommendation for listed companies issued by the NASDAQ OMX Helsinki
Ltd, as described on the web pages of the company.
RISKS AND BUSINESS UNCERTAINTIES IN THE NEAR FUTURE
In the current fiscal period, Stonesoft's main risks and business
uncertainties relate to the realization timetable of the sales
projects and possible productions disruption of our subcontractors
and suppliers as well as to the fact that the general economic
uncertainty has increased. Of these risks, the general economic
uncertainty has clearly increased lately, and it may have even a
strong impact on Stonesoft's business and operating result.
FUTURE OUTLOOK
According to the Research Institute Infonetics, the Firewall/VPN and
IPS Intrusion detection and prevention market will grow globally
roughly by 8% in 2008. The market will continue to be dynamic.
Companies will continue to network with their partners and
subcontractors, and this development will create even higher
requirements for network security and availability. At the same time,
the demand for outsourcing solutions and services will grow. Managed
service providers (MSPs) have a growing need to provide their
customers with the possibility to track the status of their network
security while maintaining an overview of their own data network.
According to the company's view combining security and high
availability, which is the cornerstone of StoneGate(TM) product
design, will prove its strength even better in this development.
The convergence of voice, video and data on IP-based networks will
create more demand for capacity and drive the adoption of 10 Gbps
networks. The growing demand for added bandwidth together with new
protocols in the IP networks is expected to increase the general
demand for better reporting, monitoring and analysis tools. This
development will support Stonesoft in achieving its year 2008 growth
plan, since these features are the cornerstones in StoneGate(TM)
Management Center's functionality.
The strong growth of virtualization has created a demand for ensuring
network security and business continuity also in virtual
environments. StoneGate products are better suited for virtual
environments than the competitors' hardware-based products because
they are based on software solutions.
As security threats in the public sector are increasing, more and
more governments have started improving their protection against
network attacks and cyber espionage. StoneGate products offer
comprehensive, centrally managed protection and suit well to the
needs of the public sector.
Stonesoft will continue its decisive and persistent efforts to
increase its net sales and to improve the profitability of the
company. The company's main target in 2008 is to have a strong growth
of net sales generating improved profitability. By extension of the
product portfolio and improved competitiveness, we aim to win even
larger individual deals.
In spite of the positive development of the operating result brought
along by the strong growth of the sales during this year and the
present strong sales pipeline, the company does at this stage not
consider it justified to adjust its previous estimate regarding the
development of the annual operating result (EBIT), due to the general
economic uncertainty that has increased in the market. Instead, the
company considers it appropriate to adjust its previous estimate on
the operative result.
Based on the above, the company renews its previous estimate whereby
the company expects to have an annual overall net sales of roughly
EUR 24 million (+/- 10%) while the comparable net sales figure during
the previous financial year was EUR 19.0 million, and adjusts its
previous estimate on the development of its result as follows: the
annual operating result (EBIT) is expected to improve by EUR 3.5 -
4.5 million compared to the previous year. In its previous estimate
the company estimated its annual operating result (EBIT) to improve
by EUR 2.5 - 4.5 million. Also the cash flow is expected to develop
favorably.
With regard to the development of the turnover and the operating
result, we expect a significant variation between the quarters in
comparison to the corresponding quarter during the previous year as
well as to the previous quarter as a consequence of, among others,
long sales cycles, a relatively big impact of individual deals, and
the variation between the quarters in the previous year.
Stonesoft Group
Income Statement 7-9/2008 7-9/2007 1-9/2008 1-9/2007 1-12/2007
(1000 Euro)
Continuing operations
Net sales 5 861 4 040 17 491 13 205 19020
Other operating
income 299 374 871 738 1144
Materials and
services -792 -643 -2 686 -1 927 -3064
Personnel expenses -3 511 -3 083 -10 797 -10 120 -14 218
Depreciation -135 -113 -364 -341 -449
Other operating
expenses -2 234 -2 216 -6 622 -6 828 -8946
Operating result -511 -1 641 -2 108 -5 274 -6 514
Financial income and
expenses 97 -89 216 131 202
Result before taxes -415 -1 730 -1 892 -5 143 -6 312
Taxes -51 -42 -150 -136 -213
Result from continuing
operations -466 -1 772 -2 042 -5 279 -6 525
Result from
discontinued operations 0 0 186 2 217 2 312
Result for the
accounting period -466 -1 772 -1 856 -3 062 -4 212
Basic earnings per
share (EUR),
continuing operations -0,01 -0,03 -0,04 -0,09 -0,11
Diluted earnings per
share (EUR),
continuing operations -0,01 -0,03 -0,04 -0,09 -0,11
Basic earnings per
share (EUR),
discontinued operations 0,00 0,00 0,00 0,04 0,04
Diluted earnings per
share (EUR),
discontinued operations 0,00 0,00 0,00 0,04 0,04
Stonesoft Group
Balance Sheet (1000 Euro) 30.9.2008 30.9.2007 31.12.2007
ASSETS
Non-Current Assets
Tangible assets 724 651 709
Intangible assets 114 87 82
Other investments 10 0 0
Deferred tax assets 0 2 1
Total 848 739 793
Current assets
Inventories 852 980 1 069
Trade and other receivables 6 115 5 437 7 498
Prepayments 110 179 97
Marketable securities 6 543 7 907 7 571
Cash and cash equivalents 711 1 237 640
Total 14 331 15 740 16 874
Total assets 15 179 16 479 17 666
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent company
Share capital 1 146 1 146 1 146
Share premium account 77 004 76 971 76 981
Conversion differences -950 -903 -927
Retained earnings -73 478 -70 472 -71 622
Total 3 722 6 742 5 579
Long-term liabilities
Provisions 36 164 56
Interest bearing liabilities 0 11 0
Other long-term liabilities 2 160 1 466 1 722
Total 2 196 1 641 1 779
Short-term liabilities
Trade and other payables 9 090 7 757 10 018
Tax liability 39 87 85
Provisions 127 166 131
Short-term interest bearing
liabilities 5 86 75
Total 9 261 8 096 10 309
Total liabilities 11 457 9 737 12 088
Total equity and liabilities 15 179 16 479 17 666
Stonesoft Group
Statement of changes in
equity
(1000 Euro)
Share Share Conversion Retained
capital premium differences earnings Total
Shareholders' equity at
1.1.2007 1 146 76 897 -867 -67 410 9 767
Conversion differences -36 -36
Result for the period -3 062 -3 062
Total recognized income
and
expense for the period -36 -3 062 -3 098
Stock options exercised 73 73
Shareholders' equity at
30.9.2007 1 146 76 971 -903 -70 472 6 742
Share Share Conversion Retained
capital premium differences earnings Total
Shareholders' equity at
1.1.2008 1 146 76 981 -927 -71 622 5 579
Conversion differences -23 -23
Result for the period -1 856 -1 856
Total recognized income
and
expense for the period -23 -1 856 -1 879
Stock options exercised 23 23
Shareholders' equity at
30.9.2008 1 146 77 004 -950 -73 478 3 722
Stonesoft Group
Cash flow statement (1000 Euro) 1.1. 1.1. 1.1.
-30.9.2008 -30.9.2007 -31.12.2007
Cash flow from operating activities
Operating Result -2 108 -5 274 -6 514
Adjustments 350 438 417
Change in net working capital 639 113 687
Taxes paid -149 -136 -212
Net cash flow from operating
activities continuing operations -1 268 -4 859 -5 622
Net cash flow from operating
activities discontinued
operations 0 0 0
Total cash flow from operating
activities -1 268 -4 859 -5 622
Cash flow from investing activities
Investments in tangible assets -345 -306 -463
Investments in intangible assets -66 -28 -32
Investments in affiliated
company 0 0 -1
Investments in other shares -10 0 0
Net cash flow investing
activities continuing operations -421 -334 -496
Net cash flow investing
activities discontinued
operations 761 -448 -448
Total cash flow investing
activities 340 -782 -944
Cash flow from financing activities
Payments of financial leasing
liabilities -69 -73 -95
Total cash flow from financing
activities -69 -73 -95
Change in cash and cash equivalents
Cash and cash equivalents
at beginning of period 8 210 14 370 14 370
Conversion differences -23 -36 -60
Changes in the market value of
investments 64 32 69
Discontinued operations 0 492 492
Total cash and cash
equivalents at end of period *) 7 254 9 144 8 210
*) Total cash and cash equivalents
at
end of the period contains pledged
securities 282 290 281
Stonesoft Group
Geographical segments 1.1.-30.9.2008 1.1.-30.9.2007 1.1.-31.12.2007
(1000 Euro)
Net sales
Europe 10 593 8 027 12 075
Emerging Market 2 864 1 513 2 004
Americas 3 262 2 870 3 906
APAC 772 794 1 036
Total net sales 17 491 13 205 19 020
Operating profit
Europe -1 025 -3 398 -4 119
Emerging Market 78 -175 -231
Americas -1 097 -1 570 -2 038
APAC -63 -131 -126
Total operating profit -2 108 -5 274 -6 514
Stonesoft Group
Contingent
liabilities 1.1.-30.9.2008 1.1.-30.9.2007 1.1.-31.12.2007
(1000 Euro)
Contingent
off-balance sheet
Non-cancelable
other leases 3 711 4 730 4 624
Contingent
liabilities for the
Company 27 20 20
Contingent
liabilities for
inventories 0 240 0
Stonesoft Group
Related party
information 1.1.-30.9.2008 1.1.-30.9.2007 1.1.-31.12.2007
(1000 Euro)
Consultation fees paid
to the Board of
Directors 0 44 73
Stonesoft Group
Quarterly development Q3 / Q2 / Q1 / Q4 / Q3 / Q2 / Q1 /
(Euro Millions) 2008 2008 2008 2007 2007 2007 2007 2007
Security software and
appliances 3,3 4,1 3,2 3,7 2,0 2,7 2,3 10,7
Services 2,4 2,3 2,2 2,2 2,1 2,1 2,0 8,4
Other products 0,1 0,0 -0,1 -0,1 0,0 0,0 0,0 -0,1
Net sales continuing
operations 5,9 6,4 5,3 5,8 4,0 4,8 4,3 19,0
Change-% from previous
year 45 32 22 35 -9 32 7 15
Net sales discontinuing
operations 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
Change-% from previous
year - - - - - - - -
Net sales total 5,9 6,4 5,3 5,8 4,0 4,8 4,3 19,0
Change-% from previous
year 45 32 22 0 -27 -4 -22 -13
Sales margin 5,1 5,4 4,3 4,7 3,4 4,1 3,8 16,0
Sales margin % 86 85 82 80 84 85 87 84
Operative expenses 5,9 6,0 5,8 6,2 5,4 5,8 6,0 23,4
Operating profit (EBITA) -0,5 -0,4 -1,2 -1,2 -1,6 -1,5 -2,1 -6,5
% of net sales -9 -6 -24 -21 -41 -32 -48 -34
Result before taxes -0,4 -0,3 -1,2 -1,2 -1,7 -1,4 -2,0 -6,3
% of net sales -7 -4 -23 -20 -43 -30 -46 -33
Stonesoft Group
Key ratios 1.1.-30.9.2008 1.1.-30.9.2007 1.1.-31.12.2007
(1000 Euro)
Net sales total 17 491 13 205 19 020
Net sales change-% 32 -18 -13
Net sales, continuing
operations 17 491 13 205 19 020
Net sales change-% 32 9 15
Net sales,
discontinued
operations 0 0 0
Net sales change-% - - -
Operating result
total -2 108 -5 274 -6 514
% of net sales -12 -40 -34
Operating result,
continuing operations -2 108 -5 274 -6 514
% of net sales -12 -40 -34
Operating result,
discontinued
operations 0 0 0
% of net sales - - -
Operating result
before taxes -1 892 -5 143 -6 312
% of net sales -11 -39 -33
ROE - %, annualized,
continuing operations -59 -85 -85
ROI - %, annualized -51 -78 -78
Equity ratio-% 46 62 52
Net gearing -1,95 -1,34 -1,46
Total Assets 15 179 16 479 17 666
Capital expenditure 411 335 500
Capital disposals 0 -1 -5
R&D costs 3 849 3 656 5 285
% of net sales 22 28 28
Number of employees
(weighted average) 182 181 181
Number of employees
(end of the period 188 183 181
Share Specific Ratios
Earnings per share,
continuing operations -0,04 -0,09 -0,11
Earnings per share,
discontinued
operations 0,00 0,04 0,04
Equity per share 0,06 0,12 0,10
Dividend 0,00 0,00 0,00
Dividend per share
(EUR) 0,00 0,00 0,00
Dividend / Profit-% 0 0 0
Calculation of
indicators
Return on equity (ROE) % (Profit before taxes - income taxes) x
= 100 /
Shareholders' equity + minority interest
(average)
Return on invested
capital (ROI)% = (Profit before extraordinary items+
interest and other financial expenses)
x100 /
Balance sheet total - non-interest bearing
debt (average)
Equity ratio % = (Equity + minority interest) x 100 /
Balance sheet total - advances
received
Interest bearing net debt - cash in
Net gearing = hand and
on deposit - marketable securities /
Equity + minority interest
Earning per share (EPS) Profit before taxes - minority interest -
= income taxes /
Average number of shares adjusted for
dilutive effect of options
Equity per share = Equity /
Number of shares at end of period
ACCOUNTING PRINCIPLES
This Interim Report is prepared in accordance with IAS 34 standard.
Stonesoft Group has changed its bookkeeping practice regarding
consulting fees for consults working full-time for Stonesoft sales
and presales functions starting from January 1, 2008. According to
the new practice these fees are included in the other operating
expenses. The figures of the previous year have been adjusted to be
comparable with the new bookkeeping practice. In all other aspects
the Group has adapted the same accounting principles and reporting
standards as in the Financial Statement for 2007.
FORWARD-LOOKING STATEMENTS
This report contains statements concerning, among other things,
Stonesoft's financial condition and the results of operations that
are forward-looking in nature. Such statements are not historical
facts, but rather represent Stonesoft's future expectations. The
company believes that the expectations reflected in these
forward-looking statements are based on reasonable assumptions.
However, these forward-looking statements involve inherent risks and
uncertainties, which could cause actual results or outcomes to differ
materially from those anticipated in the statements. These risks and
uncertainties may include, among other things, (1) changes in our
market position or in the Firewall/VPN and Intrusion detection and
protection market in general; (2) the effects of competition; (3) the
success, financial condition, and performance of our collaboration
partners, suppliers and customers;(4) the company's ability to source
quality components without interruption and at acceptable prices;(5)
the company's ability to recruit, retain and develop appropriately
skilled employees;(6) exchange rate fluctuations, including, in
particular, fluctuations between the Euro, which is our reporting
currency, and the US dollar;(7) other factors related to sale of
products, economic situation, business, competition or legislation
affecting the business of Stonesoft or the industry in general and
(8) our ability to control the variety of factors affecting our
ability to reach our targets and give accurate forecasts.
The presented figures are unaudited.
PRESS CONFERENCE
A press conference for analysts and investors will be held on 23
October at 10.30 am at the Stonesoft headquarters, street address
Itälahdenkatu 22 A, 00210 Helsinki.
For additional information, please contact:
Ilkka Hiidenheimo, CEO, Stonesoft Corporation
Tel. +358 9 476 711
E-mail: ilkka.hiidenheimo@stonesoft.com
Mikael Nyberg, CFO, Stonesoft Corporation
Tel. +358 9 476 711
E-mail: mikael.nyberg@stonesoft.com
Stonesoft Corporation
Ilkka Hiidenheimo
CEO
This release and the presentation material related to this report are
also available on Stonesoft's web site at www.stonesoft.com.
Distribution:
NASDAQ OMX Helsinki Ltd
www.stonesoft.com
STONESOFT CORPORATION'S INTERIM REPORT FOR JANUARY-SEPTEMBER 2008
| Source: Stonesoft
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