QPR SOFTWARE OYJ STOCK EXCHANGE RELEASE 12 FEBRUARY 2009 AT 09.30 AM
FINANCIAL STATEMENTS 1 JANUARY - 31 DECEMBER, 2008
QPR SOFTWARE PLC´S NET SALES GREW TO EUR 2.058 MILLION IN THE FOURTH QUARTER,
OPERATING PROFIT WAS 20.2% OF NET SALES
NET SALES IN 2008 GREW 6.4% AND WERE 7.512 MILLION EUROS, OPERATING
PROFIT WAS 11.9% OF NET SALES, EARNINGS PER SHARE WAS EUR 0.08
- QPR Software Group´s net sales in 2008 rose to EUR 7.512 million (7.059).
- Operating profit increased significantly and was EUR 0.893 million (0.031).
- Operating profit margin was 11.9% (0.4%) of net sales.
- Cashflow from operating activities rose to EUR 1.518 million (438).
- Profit before tax was EUR 0.927 million (0.064).
- Profit after tax was EUR 0.928 million (0.204)
- Earnings per share were EUR 0.08 (0.02), and diluted earnings per share were
EUR 0.07 (0.02)
- Return on equity was 37.1% (8.4%)
- Equity ratio stood at the end of the review period at 61.5% (57.0%)
- Return on investment was 33.6% (2.5%).
In October-December, Group net sales rose to EUR 2.058 million (1.995).
Operating profit was EUR 0.415 million (0.072),equaling 20.2% of revenue (3.6)
The Group delivered software licenses and services in the financial year to 52
countries. Software licenses were sold by 58 resellers in various parts of the
world.
The Board of Directors proposes that a dividend of EUR 0.03 per share (0.03) be
paid for the financial year 2008. The Board of Directors also decided to start
preparations for a potential distribution of assets of maximum EUR 0.02 per
share from the invested unrestricted equity fund to shareholders.
QPR Software´s operating profit in 2009 is expected to remain on the level of
previous year.
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| KEY FIGURES | | | | | | |
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| (EUR 1,000) | 10-12/ | 10-12/| Change | 1-12/ | 1-12/ | Change |
| | 2008 | 2007 | % | 2008 | 2007 | % |
--------------------------------------------------------------------------------
| Net sales | 2,058 | 1,995 | 3.2 | 7,512 | 7,059 | 6.4 |
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| Operating profit | 415 | 72 | -476.4 | 893 | 31 | |
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| % of net sales | 20.2 | 3.6 | | 11.9 | 0.4 | |
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| Profit before tax | 434 | 78 | -456.4 | 927 | 64 | |
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| Profit for the | 543 | 222 | -144.6 | 928 | 204 | |
| period | | | | | | |
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| % of net sales | 26.4 | 11.1 | | 12.4 | 2.9 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | | | | 0.08 | 0.02 | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| EPS (diluted), EUR | | | | 0.07 | 0.02 | |
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| Equity per share, | | | | 0.22 | 0.18 | 20.0 |
| EUR | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from | | | | 1,518 | 438 | |
| operating | | | | | | |
| activities | | | | | | |
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| Cash and cash equivalents | | | 1,716 | 1,245 | |
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| Net liabilities | | | | -1,269 | -876 | |
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| Gearing, % | | | | -56.1 | -38.7 | |
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| Equity ratio, % | | | | 61.5 | 57.0 | |
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| Return on equity, % | | | | 37.1 | 8.4 | |
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| Return of | | | | 33.6 | 2.5 | |
| investment, % | | | | | | |
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OUTLOOK FOR YEAR 2009
General decline in business activity has been exceptionally abrupt in the past
few months, and this has created economic unrest in all markets. Based on
current business prospects on software markets, the Company´s own forecasts and
QPR reseller forecasts, QPR Software expects its operating profit in 2009 to
stay on the level of previous year.
The nature of the software license business of the QPR Group is seasonal.
Seasonality of large software deals can affect significantly net sales and
profit of one individual quarter.
REPORTING
This interim report complies with accounting and valuation principles of IFRS,
but in preparations all the requirements of IAS 34-standard have not been
considered. The accounting and valuation principles are the same as they were
in 2007 financial statements. This interim report is not audited.
RESULTS
Q4 2008 COMPARED WITH Q4 2007
QPR Software Group's net sales in the fourth quarter of the year 2008 rose to
EUR 2.058 million (1.995). The increase in net sales was due to positive sales
development in Finland. In Finland, software licenses were delivered, among
others, to Helsinki University, HKScan, Metsa-Botnia, Neste Oil, Outokumpu,
Suomen Lähikauppa and the local government IT management unit of Ministry of
Finance (Kunta-IT).
The largest export markets in the fourth quarter were Russia, United Kingdom,
South Africa, Belgium and Sweden. QPR delivered software licenses in the fourth
quarter, among others, to Eandis CVBA in Belgium, Emirates Post Group Holding,
African Bank in South Africa, DHL in United Kingdom, Wind in Italy, Vattenfallen
in Sweden and the City of Moscow, Econica and MTS in Russia.
Software license sales and maintenance service sales corresponded to 87% (88%)
of the total net sales of the Group. Professional services sales rose to 13% of
net sales, due to increased sales activities and resourcing in consultancy
services. QPR aims at increasing the scale and impact of its solutions by
delivering its customers professional services that enhance their implementation
projects.
The geographical break-down of the net sales was as follows, (EUR 1,000):
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| | 10-12/ | Share-% | 10-12/ | Share-% | Change-% |
| | 2008 | | 2007 | | |
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| Domestic | 821 | 39.9 | 639 | 32.0 | 28.5 |
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| International | 1,237 | 60.1 | 1,356 | 68.0 | -8.8 |
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| Total | 2,058 | 100.0 | 1,995 | 100.0 | 3.2 |
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Break-down of software sales and related services, EUR (1,000):
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| | 10-12/ | Share- % | 10-12/ | Share- % | Change- |
| | 2008 | | 2007 | | % |
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| Software licenses | 1,059 | 51.5 | 1,057 | 53.0 | 0.2 |
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| Maintenance services | 739 | 35.9 | 707 | 35.5 | 4.5 |
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| Professional services | 260 | 12.6 | 230 | 11.5 | 13.0 |
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| Total | 2,058 | 100.0 | 1,995 | 100.0 | 3.2 |
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Operating profit in the fourth quarter was MEUR 0.415 (0.072), and its share
corresponded to 20.2% (3.6%) of net sales. The significant improvement is mainly
due to lower expenses than previous year and rapid growth in direct sales in
Finland. In the fourth quarter operating profit was affected negatively EUR
0.102 million (0.113) by the recorded bad debt provisions.
Cash flow from operating activities developed very favorably and reached EUR
0.563 million (-0.412). This positive development was mainly due to increased
profits and increased efficiency in working capital.
Profit of the fourth quarter was EUR 0.543 million (0.222), and includes
an effect of an increase of EUR 0.239 million (0.160) in deferred tax assets of
the parent company. The profit for the period represented 26.4% (11.1%) of net
sales.
RESULTS
YEAR 2008 COMPARED TO 2007
QPR Software Group´s net sales grew by 6.4% compared to previous year and were
MEUR 7.512 (7.059). Currency exchange rate changes during the reporting period,
mainly weakening of the U.S. dollar and South African rand to euro, had a
negative impact of EUR 0.055 million to net sales. The impact of exchange rate
changes is recorded in its entirety in software license sales.
Net sales in international operations were EUR 4.878 million (4.942) and the
Group delivered software licenses and services to a total of 52 countries. The
share of international business of the total net sales was 65.0%. Lower sales to
Japanese market and exchange rate changes had negative impact on net sales in
international operations.
The largest export markets in 2008 were South Africa, Russia, the United States,
United Kingdom and Belgium. Fastest growing export market was Russia.
Business operations in Finland showed very positive development. Net sales
increased in EUR 2.634 million (2.117), which was mainly due to 57% growth in
license sales. Professional services sales increased towards the end of the year
and exceeded previous year´s sales.
The company launched QPR ProcessGuide Xpress, a new desk top version of its
process modeling and analysis product in May. The first sales of QPR
ProcessGuide Xpress were made in the second quarter. In November the Company
launched the new 8.0 generation of its entire product family.
Geographical break-down of the net sales was as follows, EUR 1,000:
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| | 1-12/ | Share-% | 1-12/ | Share-% | Change-% |
| | 2008 | | 2007 | | |
--------------------------------------------------------------------------------
| Domestic | 2,634 | 35.1 | 2,117 | 30.0 | 24.4 |
--------------------------------------------------------------------------------
| International | 4,878 | 64.9 | 4,942 | 70.0 | -1.3 |
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| Total | 7,512 | 100.0 | 7,059 | 100.0 | 6.4 |
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Break-down of software sales and related services in the financial
year, EUR 1,000:
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| | 1-12/ | Share- | 1-12/ | Share- | Change- |
| | 2008 | % | 2007 | % | % |
----------------------------------------------------------------------
| Software licenses | 3,617 | 48.1 | 3,489 | 49.4 | 3.7|
----------------------------------------------------------------------
| Maintenance | 2,957 | 39.4 | 2,764 | 39.2 | 7.0 |
| services | | | | | |
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| Professional | 938 | 12.5 | 806 | 11.4 | 16.4 |
| services | | | | | |
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| Total | 7,512 | 100.0 | 7,059 | 100.0 | 6.4 |
----------------------------------------------------------------------
Operating profit in the financial year was MEUR 0.893 (0.031), and its share of
net sales was 11.9% (0.4%). Operating profit was negatively affected by the
recorded bad debt provisions MEUR 0.269 (0.318).
Cash flow from operating activities developed very favorably and reached EUR
1.518 million (0.438). This positive development was mainly due to increased
profits and increased efficiency in working capital.
Net profit after tax for the financial year was EUR 0.928 million (0.204), which
corresponded 12.4% (2.9%) from net sales. Net profit after tax includes
an effect of an increase of EUR 0.239 million (0.160) in deferred tax assets of
the parent company. Parent company has no retained losses after the booking, for
which the company could entry any differed tax assets. In the Group´s balance
sheet as of December 31, 2008, the remaining amount of deferred tax is EUR 0.539
million, and an amount of EUR 0.526 million is in the books of the parent
company.
Earnings per share were EUR 0.08 (0.02) and diluted earnings per share were EUR
0.07 (0.02).
ACQUISITIONS
QPR bought at the end of December 2008 all Mawell Ltd´s customer contracts
regarding QPR ProcessGuide, QPR ScoreCard and CostPerform software products that
can be transferred to QPR Software. The customers to be transferred are mostly
healthcare organizations in Finland. The transaction includes maintenance
agreements with an estimated total invoicing of EUR 330,000 in 2009. The maximum
transaction price was set to be no more than EUR 650,000. The final transaction
price depends on the amount of customer contracts and the amount of related
maintenance invoicing transferred from Mawell to QPR.
QPR Software Plc sold in 2001 to Mawell Ltd exclusive rights to sell QPR's
software products to healthcare sector in Finland. These exclusive rights ceased
to exist as of January 1, 2009.
The transaction also supports QPR´s strategy to develop a strong home market
service offering in business process consulting, and opens new possibilities to
build service concepts for international resellers.
On an annual level QPR estimates the transaction (including the estimated new
sales) to have a positive impact of approximately 7-9% on its net sales in 2009
and also to have a positive impact on 2009 earnings per share. The goodwill from
the transaction is expected to be moderate, and QPR will write off the most of
the purchase price in five years time.
QPR acquired the maintenance customer contract base from its Danish reseller
Amplio Management in November. The cash consideration paid was EUR 50,664 and it
is based on the current value of customer contracts. The cost of acquisition was
booked in intangible assets and will be written off according to plan in 5
years.
STRATEGY
According to strategic guidelines of the company, QPR will develop its service
offering in its domestic market especially in business process consulting. QPR
develops service concepts that include QPR´s own software and consulting
services as well as third party software. These service concepts focus on
quality and process management as well as performance and productivity
improvement and monitoring.
Product development is focused on supporting the chosen service offering, by
utilizing both the existing QPR products and their strong Microsoft
compatibility.
In international markets QPR focuses on further tightening the co-operation
with its largest resellers and efficiency improvements in its sales processes.
With service concepts to be built around QPR software, the company aims to boost
its channel sales and to further improve the replication of software sales. In
the near regions QPR will invest especially in sales to Russia.
In addition, the Company continues to follow the structural developments in the
software industry, and aims actively to participate in it.
FINANCE AND INVESTMENTS
The value of total assets was at the end of 2008 EUR 6.047 million (5.091). The
Group´s investments during the review period totaled to EUR 0.837 million
(0.464).
Cash flow from operating activities was positive EUR 1.518 million (0.438). Cash
and cash equivalents at the end of the review period were EUR 1.716 (1.245) at
the end of the reporting period. The dividend of EUR 0.368 (0.489) was paid in
the reporting period.
The Group´s interest bearing liabilities declined to EUR 0.182 million (0.368).
The gearing ratio as of December 31, 2008 was -56.1% (-38.7%). Return on capital
employed was 33.6% (2.5).
Short-term liabilities include deferred revenue in total of EUR 1.602 million
(1.116). At the end of reporting period, quick ratio was 2.57 (2.49).
At the end of the reporting period, the Group equity stood at EUR 2.732 million
(2.264), and equity to assets ratio reached 61.5% (57.0%). Return on equity was
37.1% (8.4). A total of 22,500 new shares were subscribed under the QPR Software
Plc Stock Option Plan 2003/III: 7,500 new shares were subscribed under Option
Plan 2003/III A and 15,000 new shares were subscribed under Option Plan 2003/III
B. According to decision made by Annual General Meeting on 12 March 2008,
subscription prices of the shares subscribed based on the option rights were
entered into the invested non-restricted equity fund.
PERSONNEL
At the end of the review period, the Group employed a total of 55 people (58).
PRODUCT DEVELOPMENT
The amount of R&D expenses in the review period totaled to MEUR 1.540 (1.502),
representing 20.5% (21.3%) of net sales.
During the review period, R&D expenses have been activated as assets for a total
amount of 266 thousand Euros (217). The depreciation period of capitalized R&D
expenses is 4 years.
Product development employed 17 (14) people at the end of the review period,
corresponding to 31% (24) of the total personnel. The core know-how of product
development remains centralized in the own organization. Long-term co-operation
continues with established subcontractors. During the year, several pilot
projects were successfully executed with new subcontractors.
During the review period, Research & Development activities focused on the
development of a new version of the QPR product family, QPR 8, to be released in
the second half of 2008.
The new version will broaden the scope of the QPR software offering
particularly in the area of risk identification, risk assessment and control
activity management. QPR 8 will also improve the integration between QPR
products and Microsoft Office with built-in integration to Microsoft Office
SharePoint Server document management and a new reporting module; QPR Add-in
for Microsoft Office.
In May QPR announced an easy-to-use version, QPR ProcessGuide Xpress, of the QPR
ProcessGuide software aimed for modeling, publishing and maintaining process
documentation. QPR ProcessGuide Xpress is marketed and delivered by Internet. In
addition, the company announced Farsi-version of its software in January.
QPR 8 is an interactive, easy-to-use, ready-to-run software that combines
process modeling and analysis (QPR ProcessGuide), business process automation
(QPR WorkFlow), performance management and measurement (QPR ScoreCard), and
business intelligence (QPR FactView) into one complete solution for risk
management and compliance. With the help of QPR software solutions,
organizations take control of risk and compliance issues, optimize business
processes, improve operational performance and drive strategy throughout their
organization in order to comply with rules and regulation as well as manage
transition caused by strategic or regulatory demands. The software products
developed by QPR are fast to implement and adapt to customers' evolving
requirements and their chosen management methodology. QPR software applications
are scalable from a single-user to an organization-wide management system, and
integrate seamlessly to the customers' existing information systems.
The QPR product family has been localized into 24 languages.
QPR has been Microsoft Gold Certified partner since 2007.
DECISIONS MADE BY THE ANNUAL SHAREHOLDER´S MEETING AND GOVENANCE
The Annual Shareholders' Meeting held on 12 March 2008 made the following
decisions:
The Annual Shareholders' Meeting confirmed the company's financial statements
and the group's financial statements for the financial period 1 January - 31
December 2007 and released the Board of Directors and the Managing Directors
from liability.
The Annual Shareholders' Meeting approved the Board's proposal that a per-share
dividend of EUR 0.03, a total of EUR 368,106.06, be paid for the financial year
2007. The dividend was paid to shareholders entered in the company's shareholder
register, maintained by Finnish Central Securities Depository Ltd., on the
record date of 17 March 2008. The dividend payment date was 26 March 2008.
The Annual Shareholders' Meeting resolved that the Board of Directors consist of
five (5) ordinary members. The Annual Shareholders' Meeting elected the
following persons to members of the Board of Directors: Jyrki Kontio, Vesa-Pekka
Leskinen, Jarmo Niemi, Asko Piekkola and Topi Piela. In its first meeting
immediately following the Annual Shareholders' Meeting, the Board of Directors
elected Vesa-Pekka Leskinen as Chairman of the Board.
KPMG Oy Ab, Authorised Public Accountants, continues as QPR Software Plc's
Auditors, and Authorized Public Accountant Sixten Nyman as the principle
auditor.
The Annual Shareholders' Meeting decided that the emoluments to the Chairman of
the Board and the other Members of the Board shall be the same as in previous
year.
The Annual Shareholders' Meeting decided to authorize the Board of Directors to
decide on an issue of new shares and conveyance of the own shares held by the
company (share issue) either in one or in several occasions. In the share issue
and/or based on the special rights a maximum of 4,000,000 new shares can be
issued and a maximum of 250,000 own shares held by the company can be conveyed.
The authorization shall be in force until the next Annual Shareholders' Meeting.
The conditions of the authorization of the Board are available in their entirety
on the investors section of the company's web site, and on the stock exchange
release, published by the company on 12 March 2008.
The Annual Shareholders' Meeting decided to authorize the Board of Directors to
decide on an acquisition of own shares. Based on the authorization own shares
may be acquired, either in one or in several occasions, the aggregate maximum
amount of 250,000 shares. The authorization shall be in force until the next
Annual Shareholders' Meeting. The conditions of the authorization of the Board
are available in their entirety on the investors section of the company's web
site, and on the stock exchange release, published by the company on 12 March
2008.
The Annual Shareholders' Meeting decided to decrease the share premium reserve
as shown in the balance sheet as per 31 December 2007 by the total amount of the
share premium reserve of EUR 356,539.89 by transferring the decreased amount to
the invested non-restricted equity fund of the company. After the decrease the
amount of the share premium reserve shall be zero and it is abolished. The
decrease of share premium reserve materialized in total on September 16, 2008.
The Annual Shareholders' Meeting further resolved to amend the decisions made on
1 October 2003 and on 15 March 2005 regarding the issue of option rights so that
the subscription prices of the shares subscribed based on the option rights will
be entered into the invested non-restricted equity fund.
COMPANY SHARES AND TRADING IN COMPANY SHARES 1-12/2008
The Company's share capital at the end of the reporting period was EUR
1,359,089.93 divided into 12,377,863 shares. QPR Software Plc has one share
class.
At the end of review period, the Company had a total of 572 shareholders. In the
reporting period, trading in company shares amounted to EUR 0.384 million, i.e.
an average of EUR 1,516 per trading day. Trading in shares totaled 485,194
shares, giving an average of 1,918 shares per trading day. Turnover in shares
corresponds to 3.9% of the total shares and the average price was EUR 0.79 per
share.
At the end of the reporting period, the total market value of the company shares
was EUR 9.283 million at the review period's closing price of EUR 0.75.
The Group announced the following holding change in the reporting period in
accordance with chapter 2, section 10 of the security market act:
- On 15 January, 2008: The total holding of Jouko Antero Pelkonen and his
controlled companies Electrosale Oy (company ID 0252032-5) and Pohjolan Rahoitus
Oy (company ID 0486816-5) in QPR Software Plc has increased above one-tenth
(1/10) to 10.098% of QPR Software Plc's share capital and votes.
- The Group announced in October 16, 2008 that Oy AutoCarrera Ab´s holding of
QPR Software´s share capital and votes had decreased under 10.00%. The Group
announced in October 17, 2008 that Oy AutoCarrera Ab´s holding of QPR Software´s
share capital and votes had again reached 10.00%. The decrease below 10% was
due to dilution caused by new 22,500 shares registered by QPR.
OWN SHARES
The number of acquired own shares in the reporting period was 78,389. At the end
of the reporting period the company held 160,350 of its own shares with a total
nominal value of EUR 17,683.50 and a total purchase price of EUR 124,761.61. Own
shares held by the company represent 1.3% of the Company´s capital stock.
The Board of Directors has been granted by the Annual Shareholders Meeting of 12
March 2008, a share repurchases authorization, valid until next Annual
Shareholders Meeting, to repurchase company shares in total of 250,000 shares at
maximum. According to the authorization the company may acquire own shares in
order to strengthen the company's capital structure, to be used as payment in
corporate acquisitions or when the company acquires assets related to its
business or as part of the company's incentive programs in a manner and to the
extent decided by the Board of Directors, or to be transferred for other
purposes or to be cancelled.
STOCK OPTION PROGRAMS
In the review period, the Company had two prevailing stock option programs. Each
stock option issued under these stock option programs entitle to subscribe one
new share in the company.
Stock option program 2003/II: Stock options distributed on October 1, 2003, to
the CEO, members of the Board of Directors and the Executive Management Team,
key personnel and other persons in the inner circle of QPR Software Plc and the
Group, and to the fully owned subsidiary QPR Service Oy. The number of option
rights was 259,409 pcs. The share subscription price for stock option 2003/II
is EUR 0.30 per share. The share subscription period started September 30, 2004
and expired on December 31, 2008
Stock option program 2003/III: Stock options distributed on October 1, 2003, to
personnel of the Group, and to the fully owned subsidiary QPR Service Oy. The
number of option rights was 518,790 pcs. The share subscription price for stock
option 2003/III was EUR 0.16 per share, after payment of dividends for the
financial year 2007, the record date of which was March 17, 2008. The share
subscription period for stock options 2003/IIIA started September 30, 2004 and
for stock options 2003/IIIB started on September 30, 2005. The share
subscription period for stock option program 2003/III expired on December 31,
2008. During 2008 a total of 89,500 shares were subscribed based on stock
option programs 2003/IIIA and 2003/IIIB. Out those 67,500 shares were
subscribed in December 2008, and they registered as shares in February 2009.
After the expiration of stock option programs 2003/IIIA and 2003/IIIB, the
company has no stock option programs in effect.
CORPORATE GOVERNANCE
QPR Software Plc complies with the Helsinki Exchanges' Guidelines for Insiders
issued on 2 June 2008 and the Corporate Governance Code, including its
transitional provisions, effective as of January 1, 2009. The Company's
Corporate Governance Statement is available in the Investor section of the
Company's website, http://www.qpr.com. Also, available in the investor section
is further information, such as, administration of insiders register, public
insiders register, list of major shareholders, articles of association, charter
of the Board, description of how internal control and internal audit is
organized, introductions of the members of the Board and Executive Management
Team, and the information published by the company in the financial year.
OTHER EVENTS IN THE REPORTING PERIOD
The Board of Directors appointed B.A., MBA Jari Jaakkola, 46, as new Chief
Executive Officer. Jaakkola has worked as SVP, Business Operations for QPR
Software since August 2006. QPR Software Plc´s Chief Executive Officer Matti
Kanninen resigned from his position as of 3 January, 2008.
QPR Software´s Executive Management Teams comprises of CEO Jari Jaakkola
(chairman), VP, International Software Sales Antti Ainasoja, VP, Services and
Solutions Maija Erkheikki, VP, Software Sales Finland Matti Erkheikki, VP, and
Marketing & Business Development Teemu Lehto, acting CFO Päivi Vahvelainen and
VP, Products & Technology Tony Virtanen.
INTERNAL CONTROL
Internal control and risk management in QPR Software Plc aims to ensure that the
Company operates in efficiently and effectively, distributes reliable
information, complies to regulations and operational principles, reaches its
strategic goals and ensures continuity of its business.
It is the duty of the Board of Directors to monitor the appropriateness,
effectiveness and efficiency of risk management and internal control in QPR
Software Group. The Board of Directors also monitors that the Company has
defined operational principles for internal control and that the Company
monitors the effectiveness of internal control.
SHORT-TERM RISKS AND UNCERTAINTIES
Risk management in QPR Software is guided by the requirements of legislation,
shareholders´ expectations regarding business objectives and expectations among
important stakeholders, such as customers and personnel. Risk management in QPR
Software aims systematically and comprehensively identifies risks related to the
Company´s operations and ensures that risks are managed and taken into account
in decision-making. Risk management is developed by constantly improving
operative processes in the Company. The Company does not have a separate risk
management organization, and risk management is part of normal responsibilities
throughout the organization.
Among others, the following risks are related to QPR Software´s business
operations: market and customer risks related to business operations, risks
related to products, personnel as well as legal, financial and data security
risks. A report of these risks and the most important other identified risks are
presented to the Board of Directors once year. The threat caused by the risks to
shareholders is used as criteria when the Board of Directors evaluates these
risks.
External business environment changes, such as economic fluctuations, are
included in the Company´s market and customer risks. General decline in business
activity has been exceptionally abrupt in the past few months, and this has
created economic unrest in all markets. The general economic uncertainty,
continuation of negative development or deepening of such a development may have
a negative impact on software market and thus, also to QPR´s business
operations.
QPR´s market and customer risks are mitigated by the following factors: the
Company does business in over 50 countries, both in public and private sector as
well as in several different business verticals. In addition, the customer
benefits produced by QPR´s products and solutions are related to optimization
and streamlining of operations, strategy implementation as well as risk
management and compliance. QPR believes, based on its earlier experiences from
cyclical fluctuations that demand for these customer benefits remains relatively
strong even in recession.
In other respects, no significant changes have taken place in QPR's short-term
risks and uncertainties during the financial period.
Reasonable credit risk concerning individual business partners is characteristic
to any international business. QPR seeks to limit this credit risk by continuous
monitoring of standard payment terms, receivables and credit limits. The
management of QPR estimates that the company´s credit loss risk is on customary
and reasonable level.
FUTURE OUTLOOK
Market forecasts published in early 2009 estimate that the value of global
software products sales will not grow, and the total corporate IT investments
will decrease by 3%.
Based on current software market growth forecasts and also QPR's resellers'
forecasts, QPR Software expects its operating profit to stay on the level of
previous year. The nature of the software license business of the QPR Group is
seasonal. Seasonality of large software deals can affect significantly net
sales and profit of one individual quarter.
QPR SOFTWARE PLC'S FINANCIAL INFORMATION IN 2009
In 2009, QPR Software Plc will publish its financial information as follows:
Interim Report 1-3/2009 Thursday, April 23, 2009
Interim Report 1-6/2009 Thursday, July 23, 2009
Interim Report 1-9/2009 Thursday, October 22, 2009
The Annual General Meeting will be held on Thursday, March 12, 2009
QPR SOFTWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0)40 5026 397
http://www.qpr.com
DISTRIBUTION
Helsinki Stock Exchange
Main Media
Neither this press release nor any copy of it may be taken, transmitted into or
distributed in the United States of America or its territories or possessions.
APPENDIX: TABLE SECTION
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| GROUP INCOME STATEMENT | | | | |
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--------------------------------------------------------------------------------
| (EUR 1,000) | 10-12/ | 10-12/ | 1-12/ | 1-12/ 2007 |
| | 2008 | 2007 | 2008 | |
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| Net Sales | 2,058 | 1,995 | 7,512 | 7,059 |
--------------------------------------------------------------------------------
| Other operating income | 12 | 3 | 51 | 46 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Material and services | 118 | 151 | 875 | 689 |
--------------------------------------------------------------------------------
| Employee benefits expenses | 991 | 1,065 | 3,653 | 4,048 |
--------------------------------------------------------------------------------
| Depreciation | 93 | 67 | 301 | 214 |
--------------------------------------------------------------------------------
| Other operating expenses | 453 | 642 | 1,841 | 2,123 |
--------------------------------------------------------------------------------
| Operating profit | 415 | 72 | 893 | 31 |
--------------------------------------------------------------------------------
| Financial income and | 19 | 6 | 34 | 33 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 434 | 78 | 927 | 64 |
--------------------------------------------------------------------------------
| Income tax expense | 109 | 144 | 1 | 140 |
--------------------------------------------------------------------------------
| Profit for the period | 543 | 222 | 928 | 204 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 543 | 222 | 928 | 204 |
| parent company | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | 0.04 | 0.02 | 0.07 | 0.02 |
| (diluted), EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.04 | 0.02 | 0.08 | 0.02 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP'S BALANCE SHEET 31.12.2008 | | |
--------------------------------------------------------------------------------
| (EUR 1,000) | | |
--------------------------------------------------------------------------------
| Assets | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Tangible assets | 226 | 321 |
--------------------------------------------------------------------------------
| Other intangible assets | 1,078 | 448 |
--------------------------------------------------------------------------------
| Trade and other receivables | 5 | 5 |
--------------------------------------------------------------------------------
| Deferred tax assets | 539 | 502 |
--------------------------------------------------------------------------------
| Total non-current assets | 1,848 | 1,276 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 2,483 | 2,570 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 1,716 | 1,245 |
--------------------------------------------------------------------------------
| Total current assets | 4,199 | 3,815 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 6,047 | 5,091 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and Liabilities | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Equity | | |
--------------------------------------------------------------------------------
| Share capital | 1,359 | 1,359 |
--------------------------------------------------------------------------------
| Share premium | 0 | 231 |
--------------------------------------------------------------------------------
| Reserve fund | 21 | 21 |
--------------------------------------------------------------------------------
| Invested non-restricted equity fund | 360 | 0 |
--------------------------------------------------------------------------------
| Translation differences | -105 | -70 |
--------------------------------------------------------------------------------
| Treasure shares | -125 | -65 |
--------------------------------------------------------------------------------
| Retained earnings | 1,222 | 787 |
--------------------------------------------------------------------------------
| Equity attributable to shareholders of the | 2,732 | 2,264 |
| parent company | | |
--------------------------------------------------------------------------------
| Total equity | 2,732 | 2,264 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 79 | 182 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 79 | 182 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Accounts payables and other payables | 3,133 | 2,458 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 103 | 187 |
--------------------------------------------------------------------------------
| Total current liabilities | 3,236 | 2,645 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 3,315 | 2,827 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 6,047 | 5,091 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP'S CASH FLOW STATEMENT | | |
--------------------------------------------------------------------------------
| (EUR 1,000) | 1.1.-31.12. | 1.1.-31.12.|
| | 2008 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating activities | | |
--------------------------------------------------------------------------------
| Profit for the period | 928 | 204 |
--------------------------------------------------------------------------------
| Adjustments for the profit | | |
--------------------------------------------------------------------------------
| Depreciation | 301 | 214 |
--------------------------------------------------------------------------------
| Non-cash transactions | 83 | -140 |
--------------------------------------------------------------------------------
| Changes in working capital | | |
--------------------------------------------------------------------------------
| Changes in trade and other receivables | -67 | 560 |
--------------------------------------------------------------------------------
| Changes in accounts payable and other | 275 | -401 |
| liabilities | | |
--------------------------------------------------------------------------------
| Interest expense and other financial | -10 | -8 |
| expenses | | |
--------------------------------------------------------------------------------
| Interest income and other financial income | 38 | 41 |
--------------------------------------------------------------------------------
| Income taxes paid | -30 | -32 |
--------------------------------------------------------------------------------
| Net cash from operating activities | 1,518 | 438 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | |
--------------------------------------------------------------------------------
| Purchases of tangible assets | -54 | -140 |
--------------------------------------------------------------------------------
| Purchases of intangible assets | -382 | -324 |
--------------------------------------------------------------------------------
| Net cash used in investing activities | -436 | -464 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | |
--------------------------------------------------------------------------------
| Proceeds from issuance of share capital | 4 | 49 |
--------------------------------------------------------------------------------
| Repayments of financial leases | -187 | -108 |
--------------------------------------------------------------------------------
| Purchases of own shares | -60 | -65 |
--------------------------------------------------------------------------------
| Dividends paid | -368 | -489 |
--------------------------------------------------------------------------------
| Net cash used in financing activities | -611 | -613 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net change in cash and cash equivalents | 471 | -639 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents in the beginning | 1,245 | 1,884 |
| of period | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents in the end of | 1,716 | 1,245 |
| period | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY | |
| 1.1.2007-31.12.2007 | |
--------------------------------------------------------------------------------
| | Share | Share | Trans- | Trea- | Inves- | Retai- | Total |
| | hol- | pre- | lation | sure | ted | ned | |
| | ders´| mium | differ | shares | non- earnings | |
| | equity | | . | | restr. | | |
| | | | | | equity | | |
| | | | | | fund | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 1,346 | 217 | -49 | 0 | 0 | 1,072 | 2,586 |
| 1.1.2007 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares | 13 | | | | | | 13 |
| issued | | | | | | | |
--------------------------------------------------------------------------------
| Issue | | 36 | | | | | 36 |
| premium | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -489 | -489 |
| paid | | | | | | | |
--------------------------------------------------------------------------------
| Translation| | | -21 | | | | -21 |
| differences| | | | | | | |
--------------------------------------------------------------------------------
| Purchase | | | | -65 | | 0 | -65 |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | | 204 | 204 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | 13 | 36 | -21 | -65 | 0 | -285 | -322 |
| sharehol- | | | | | | | |
| ders' | | | | | | | |
| equity 1-12| | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 31.12.2007 | 1,359 | 253 | -70 | -65 | 0 | 787 | 2,264 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY | |
| 1.1.2008-31.12.2008 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Share | Share | Trans- | Trea- | Inves- | Retai- | Total |
| | hol- | pre- | lation | sure | ted | ned | |
| | ders´| mium | differ | shares | non- |earnings | |
| | equity | | . | | restr. | | |
| | | | | | equity | | |
| | | | | | fund | | |
--------------------------------------------------------------------------------
| Equity | 1,359 | 253 | -70 | -65 | 0 | 787 | 2,264 |
| 1.1.2008 | | | | | | | |
--------------------------------------------------------------------------------
| Shares | | | | | 3 | | 3 |
| issues | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -368 | -368 |
| paid | | | | | | | |
--------------------------------------------------------------------------------
| Translation| | | -35 | | | | -35 |
| differences| | | | | | | |
--------------------------------------------------------------------------------
| Purchase | | | | -60 | | | -60 |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | | 928 | 928 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Transfer | | -232 | | | 357 | -125 | 0 |
| of Share | | | | | | | |
| Premium | | | | | | | |
| fund | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | 0 | -232 | -35 | -60 | 360 | 435 | 468 |
| sharehol- | | | | | | | |
| ders' | | | | | | | |
| equity 1-12| | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 1,359 | 21 | -105 | -125 | 360 | 1,222 | 2,732 |
| 31.12.2008 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP COMMITMENTS AND CONTINGENT LIABILITIES | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1,000) | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Commitments and contingent liabilities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Lease liabilities | 250 | 460 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current lease liabilities | | |
--------------------------------------------------------------------------------
| Lease liabilities maturing during one year | 34 | 30 |
--------------------------------------------------------------------------------
| Lease liabilities maturing 2-5 years | 23 | 21 |
--------------------------------------------------------------------------------
| Total | 57 | 51 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total commitments and contingent liabilities | 307 | 511 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP'S INTANGIBLE AND TANGIBLE ASSETS
Change in intangible assets (EUR 1,000)
31.12.2008 31.12.2007
Acquisition cost 1.1. 1,744 1,420
Increase 784 324
Change in tangibleassets (EUR 1,000) 31.12.2008 31.12.2007
Acquisition cost 1.1. 1,045 905
Increase 54 140
--------------------------------------------------------------------------------
| CHANGE IN GROUP'S INTEREST BEARING LIABILITIES | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1,000) | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest bearing liabilities 1.1. | 369 | 476 |
--------------------------------------------------------------------------------
| Change | -187 | -108 |
--------------------------------------------------------------------------------
| Interest bearing liabilities 31.12. | 182 | 369 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP INCOME STATEMENT | | | | | | | |
| PER QUARTER | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-3/ | 1-3/ | 4-6/ | 4-6/ | 7-9/ | 7-9/ | 10-12/| 10-12/|
| (EUR 1,000) | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Sales |1,754 |1,634 |2,215 |2,225 |1,485 |1,205 | 2,058 | 1,995 |
--------------------------------------------------------------------------------
| Other operating | 11 | 19 | 21 | 17 | 7 | 7 | 12 | 3 |
| income | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Material and | 259 | 73 | 273 | 383 | 225 | 82 | 118 | 151 |
| services | | | | | | | | |
--------------------------------------------------------------------------------
| Employee benefits | 943 |1,044 | 986 |1,059 | 733 | 879 | 991 | 1,065 |
| expenses | | | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | 70 | 42 | 69 | 48 | 69 | 56 | 93 | 67 |
--------------------------------------------------------------------------------
| Other operating | 402 | 476 | 584 | 518 | 402 | 488 | 453 | 642 |
| expenses | | | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 91 | 19 | 324 | 233 | 63 | -293 | 415 | 72 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | -2 | 15 | 6 | 8 | 12 | 4 | 19 | 6 |
| and expenses | | | | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 89 | 34 | 330 | 241 | 75 | -289 | 434 | 78 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax | -11 | -15 | -81 | -58 | -16 | 68 | 109 | 144 |
| expenses | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | 78 | 19 | 249 | 183 | 59 | -221 | 543 | 222 |
| period | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP KEY | | | | | | | | |
| FIGURES | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR (1,000) | 1-12/ | 1-12/ | 1-9/ | 1-9/ | 1-6/ | 1-6/ | 1-3/ | 1-3/ |
| | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 |
--------------------------------------------------------------------------------
| Net sales | 7,512 | 7,059 | 5,454 | 5,064 | 3,969 | 3,859 | 1,754 | 1,634|
--------------------------------------------------------------------------------
| Net sales | 6.4 | 2.3 | 7.7 | -1.0 | 2.9 | 2.9 | 7.3 | -2.2 |
| growth, % | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 893 | 31 | 478 | -41 | 415 | 252 | 91 | 19 |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 11.9 | 0.4 | 8.8 | -0.8 | 10.5 | 6.5 | 5.2 | 1.2 |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
| Profit or | 927 | 64 | 493 | -14 | 419 | 275 | 90 | 34 |
| loss before | | | | | | | | |
| tax | | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 12.3 | 0.9 | 9.0 | -0.3 | 10.6 | 7.1 | 5.1 | 2.1 |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | 928 | 204 | 385 | -18 | 327 | 203 | 78 | 19 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 12.4 | 2.9 | 7.1 | -0.4 | 8.2 | 5.2 | 4.5 | 1.2 |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on | 37.1 | 8.4 | 34.2 | -1.0 | 29.2 | 16.5 | 14.8 | 3.3 |
| equity,% | | | | | | | | |
--------------------------------------------------------------------------------
| Return on | 33.6 | 2.5 | 38.7 | -0.5 | 32.8 | 19.3 | 14.7 | 5.1 |
| investment,% | | | | | | | | |
--------------------------------------------------------------------------------
| Interest | 182 | 369 | 261 | 369 | 285 | 393 | 369 | 476 |
| bearing | | | | | | | | |
| liabilities | | | | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 1,716 | 1,245 | 1,530 1,757 | 1,397 | 1,389 | 1,077 | 1,244 |
| equivalents | | | | | | | | |
--------------------------------------------------------------------------------
| Net -1,534 | -876 |-1,269| 1,388 |-1,112 | -996 | -708 | -768 |
| liabilities | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 2,732 | 2,264 | 2,244| 2,069 | 2,214 | 2,320 | 1,968 | 2,111 |
--------------------------------------------------------------------------------
| Gearing,% | -56.1 | -38.7 | -56.6| -67.1 | -50.2 | -42.9 | -36.0 | -36.4 |
--------------------------------------------------------------------------------
| Equity | 61.5 | 57.0 | 63.4| 58.9 | 53.8 | 52.0 | 53.1 | 52.0 |
| ratio,% | | | | | | | | |
--------------------------------------------------------------------------------
| Total balance | 6,047 | 5,091 | 5,147| 4,799 | 5,926 | 6,191 | 5,158 | 5,876 |
| sheet | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments | 837 | 463 | 161 | 386 | 91 | 279 | 37 | 104 |
| in | | | | | | | | |
| non-current | | | | | | | | |
| assets | | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 11.1 | 6.6 | 3.0 | 7.6 | 2.3 | 7.2 | 2.1 | 6.4 |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
| Research and | 1,540 | 1,502 |1,142 | 974 | 770 | 736 | 384 | 344 |
| development | | | | | | | | |
| expenses | | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 20.5 | 21.3 | 20.9 | 19.2 | 19.4 | 19.1 | 21.9 | 21.0 |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average | 53 | 58 | 53 | 61 | 53 | 61 | 55 | 59 |
| number of | | | | | | | | |
| personnel | | | | | | | | |
--------------------------------------------------------------------------------
| Personnel at | 58 | 58 | 58 | 58 | 58 | 58 | 58 | 58 |
| the beginning | | | | | | | | |
| of period | | | | | | | | |
--------------------------------------------------------------------------------
| Personnel at | 55 | 58 | 54 | 63 | 54 | 63 | 52 | 59 |
| the end of | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.08 | 0.02 | 0.03 | 0.00 | 0.03 | 0.02 | 0.01 | 0.00 |
| share,€ | | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.07 | 0.02 | 0.03 | 0.00 | 0.03 | 0.02 | 0.01 | 0.00 |
| share | | | | | | | | |
| (diluted), € | | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 0.22 | 0.18 | 0.18 | 0.17 | 0.18 | 0.19 | 0.16 | 0.17 |
| share, € | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MAJOR SHAREHOLDERS 31.12.2008 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Number of | %- share Shares |
| | shares | and votes |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Ulkomarkkinat Oy | 1,600,000 | 12.93% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Jouko Pelkonen | 423,000 | 3.42% |
--------------------------------------------------------------------------------
| Pohjolan Rahoitus Oy | 600,410 | 4.85% |
--------------------------------------------------------------------------------
| Electrosale Oy | 322,000 | 2.60% |
--------------------------------------------------------------------------------
| Yhteensä | 1,345,410 | 10.87% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Vesa-Pekka Leskinen | 851,400 | 6.88% |
--------------------------------------------------------------------------------
| + Kauppamainos Oy | 475,170 | 3.84% |
--------------------------------------------------------------------------------
| Yhteensä | 1,326,570 | 10.72% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Alesco S.A | 1,300,000 | 10.50% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Autocarrera Oy Ab | 1,238,817 | 10.01% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Kari Junkkonen | 512,016 | 4.14% |
--------------------------------------------------------------------------------
| Fortel Invest Oy | 425,326 | 3.44% |
--------------------------------------------------------------------------------
| SR EQ Technology | 376,000 | 3.04% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Päivi Marttila | 293,072 | 2.37% |
--------------------------------------------------------------------------------
| Edina Oy | 33,900 | 0.27% |
--------------------------------------------------------------------------------
| Yhteensä | 326,972 | 2.64% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Asko Piekkola | 316,438 | 2.56% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Jaakkola Jari | 220,000 | |
--------------------------------------------------------------------------------
| Value FM Oy | 30,000 | |
--------------------------------------------------------------------------------
| Yhteensä | 250,000 | 2.02% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Esa Pääkkönen | 246,054 | 1.99% |
--------------------------------------------------------------------------------
| Veli-Mikko Leskinen | 232,530 | 1.88% |
--------------------------------------------------------------------------------
| Matti Kanninen | 199,107 | 1.61% |
--------------------------------------------------------------------------------
| Tony Virtanen | 172,112 | 1.39% |
--------------------------------------------------------------------------------
| Teemu Lehto | 153,654 | 1.24% |
--------------------------------------------------------------------------------
| Kai-Erik Becker | 140,000 | 1.13% |
--------------------------------------------------------------------------------
| Other shareholders | 2,216,857 | 17.91% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 12,377,863 | 100.0 % |
--------------------------------------------------------------------------------
NET SALES IN 2008 GREW 6.4% AND WERE 7.512 MILLION EUROS, OPERATING PROFIT WAS 11.9% OF NET SALES, EARNINGS PER SHARE WAS EUR 0.08
| Source: QPR Software Oyj