QPR SOFTWARE PLC STOCK EXCHANGE RELEASE JULY 23, 2009 9.30 AM
INTERIM REPORT JANUARY 1 - JUNE 30, 2009
QPR SOFTWARE'S SECOND QUARTER OPERATING MARGIN 10.9%
SUMMARY
April - June 2009:
- Net sales EUR 1.688 million (April - June 2008: EUR 2.215 million)
- Operating profit EUR 0.184 million (0.324)
- Operating margin 10.9 percent of net sales (14.6)
- International operations accounted for 54.5 percent of net sales (65.7)
- Earnings per share were EUR 0.01 (0.02)
January - June 2009:
- Net sales EUR 3.316 million (January - June 2008: EUR 3.969 million)
- Operating profit EUR 0.327 million (0.415)
- Operating margin 9.9 percent of net sales (10.5)
- International operations accounted for 54.0 percent of net sales (65.6)
- Earnings per share were EUR 0.02 (0.03)
QPR Software´s net sales and operating profit in April - June increased from the
first quarter 2009 (January-March 2009: net sales EUR 1.628 million, operating
profit EUR 0.143 million), but were lower than in the second quarter 2008. Net
sales in the second quarter 2008 include an exceptionally large software license
deal, worth over EUR 0.5 million, to Standard Bank of South Africa. Software
Sales Finland´s net sales and operating profit grew from last year.
QPR Software estimates that its operating profit in the second half of 2009 will
remain on the level achieved in the first half of 2009 (January - June 2009: EUR
0.327 million), but the full year operating profit 2009 is likely to be somewhat
lower than in 2008 (EUR 0.893 million).
KEY FIGURES
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| (EUR 1,000) | 4-6/ | 4-6/ | Change| 1-6/ | 1-6/ | Change | 1-12/ |
| | 2009 | 2008 | %| 2009 | 2008 | % | 2008 |
--------------------------------------------------------------------------------
| Net sales |1,688 | 2,215 | -23.8 | 3,316 | 3,969 | -16.5 | 7,512 |
--------------------------------------------------------------------------------
| Operating profit | 184 | 324 | -43.2 | 327 | 415 | -21.2 | 893 |
--------------------------------------------------------------------------------
| % of net sales | 10.9 | 14,6 | | 9.9 | 10.5 | | 11.9 |
--------------------------------------------------------------------------------
| Profit before tax | 179 | 330 | -45.8 | 328 | 419 | -21.7 | 927 |
--------------------------------------------------------------------------------
| Profit for the | 145 | 249 | -41.8 | 267 | 327 | -18.3 | 928 |
| period | | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 8.6 | 11.2 | | 8.1 | 8.2 | | 12.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | | | | 0.02 | 0.03 | | 0.08 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share| |
| (diluted), EUR | | | | 0.02 | 0.03 | | 0.07 |
--------------------------------------------------------------------------------
| Equity per share, | | | | 0.21 | 0.18 | | 0.22 |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from | | | | 243 | 693 | | 1,518 |
| operating | | | | | | | |
| activities | | | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | | | 2,105 | 1,397 | | 1,716 |
| equivalents | | | | | | |
--------------------------------------------------------------------------------
| Net liabilities | | | | -792 | -1,112 | | -1,269 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gearing, % | | | | -30.8 | -50.2 | | -56.1 |
--------------------------------------------------------------------------------
| Equity ratio, % | | | | 51.1 | 53.8 | | 61.5 |
--------------------------------------------------------------------------------
| Return on equity,%| | | | 20.2 | 29.2 | | 37.1 |
--------------------------------------------------------------------------------
| Return on | | | | 19.8 | 32.8 | | 33.6 |
| investment, % | | | | | | | |
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REPORTING
This interim report complies with the requirements of IAS 34-standard. The
accounting and valuation principles are the same as they were in 2008 financial
statements. This interim report is not audited.
QPR Software´s business consists of software sales, software maintenance sales
and professional services.
As of January 1, 2009 QPR Software Plc has three business segments: Software
Sales International (software license and maintenance sales outside of Finland),
Software Sales Finland (software license and maintenance sales in Finland) and
Service and Solutions (global professional service sales).
The company has re-defined reporting principles, and does not anymore monitor
minor inter-segment net sales or report it. The company has also revised
accordingly the segment information provided in the 2008 Annual Report.
The geographical segments used by the Company are Domestic (Finland) and
International markets.
APRIL-JUNE 2009 COMPARED WITH APRIL-JUNE 2008
THE GROUP
QPR Software Group´s net sales in the second quarter of 2009 were EUR 1.688
million (2.215). The Company´s and its resellers´ offer portfolio grew from
previous year, but the customers´ software purchase processes remained slower
than in previous year. A substantial share of customers has delayed their
software purchases in the current challenging economic climate. Net sales were
negatively affected also by smaller average deal size than in previous year.
Group net sales by geography, (EUR 1,000):
--------------------------------------------------------------------------------
| | 4-6/ | Share- | 4-6/ | Share- | Change- | 1-12/ |
| | 2009 | % | 2008 | % | % | 2008 |
--------------------------------------------------------------------------------
| Domestic | 768 | 45.5 | 759 | 34.3 | 1.2 | 2,634 |
--------------------------------------------------------------------------------
| International | 920 | 54.5 | 1,456 | 65.7 | -36.8 | 4,878 |
--------------------------------------------------------------------------------
| Total | 1,688 | 100.0 | 2,215 | 100.0 | -23.8 | 7,512 |
--------------------------------------------------------------------------------
Group net sales divided into software licenses, maintenance services and
professional services as follows, (EUR 1,000):
--------------------------------------------------------------------------------
| | 4-6/ | Share- | 4-6/ | Share- | Change- | 1-12/ |
| | 2009 | % | 2008 | % | % | 2008 |
--------------------------------------------------------------------------------
| Software licenses | 628 | 37.2 | 1,179 | 53.2 | -46.7 | 3,617 |
--------------------------------------------------------------------------------
| Maintenance | 842 | 49.9 | 749 | 33.8 | 12.4 | 2,957 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Professional | 218 | 12.9 | 287 | 13.0 | -24.0 | 938 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Total | 1,688 | 100.0 | 2,215 | 100.0 | -23.8 | 7,512 |
--------------------------------------------------------------------------------
Software license sales decreased mainly due to lower software sales in
international markets. Net sales in April - June 2008 include an exceptionally
large software license deal, worth over EUR 0.5 million, to Standard Bank of
South Africa.
Maintenance services sales increased both in Finland and international markets,
and rose to EUR 0.842 million (0.749). The migration of maintenance customers to
the new QPR 8.0 software version, launched at the end of 2008, continued
swiftly.
EUR 0.065 million maintenance sales increase was due to business acquired from
Mawell Ltd. QPR bought at the end of December 2008 all Mawell Ltd´s customer
contracts regarding QPR ProcessGuide, QPR ScoreCard and CostPerform software
products. The transfer of contracts was finalized in the review period. The
purchase price was approximately EUR 600 thousand. QPR will amortize the full
purchase price in five years.
Operating profit in April - June decreased to EUR 0.184 million (0.324) due to
lower net sales. Operating margin was 10.9% (14.6) The Company succeeded well in
controlling both the fixed and variable costs.
Depreciation grew to EUR 0.095 million (0.069), which was partly due to
amortization of the purchase price of the business acquired from Mawell Ltd.
Net profit after tax in April - June was EUR 0.145 million (0.249), which
corresponded 8.6% (11.2) of net sales.
In the Group´s balance sheet as of June 30, 2009, the remaining amount of
deferred tax is EUR 0.494 million (0.435). The full amount is in the books of
the parent company.
The (diluted) earnings per share were EUR 0.01 (0.02).
BUSINESS SEGMENTS
Group net sales by primary business segments, (EUR 1,000):
--------------------------------------------------------------------------------
| | 4-6/ | Share- | 4-6/ | Share- | Change-% |
| | 2009 | % | 2008 | % | |
--------------------------------------------------------------------------------
| Software Sales | 901 | 53.4 | 1,399 | 63.2 | -35.6 |
| International | | | | | |
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| Software Sales Finland | 577 | 34.2 | 538 | 24.3 | 7.2 |
--------------------------------------------------------------------------------
| Service and Solutions | 210 | 12.4 | 278 | 12.5 | -24.5 |
--------------------------------------------------------------------------------
| Total | 1,688 | 100.0 | 2,215 | 100.0 | -23,8 |
--------------------------------------------------------------------------------
Group operating profit by business segments, (EUR 1,000):
--------------------------------------------------------------------------------
| | 4-6/ | Share- | 4-6/ | Share- | Change-% |
| | 2009 | % | 2008 | % | |
--------------------------------------------------------------------------------
| Software Sales | 66 | 35.9 | 200 | 61.7 | -67.0 |
| International | | | | | |
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| Software Sales Finland | 218 | 118.5 | 150 | 46.3 | 45.3 |
--------------------------------------------------------------------------------
| Service and Solutions | -13 | -7.1 | 87 | 26.9 | -114.9 |
--------------------------------------------------------------------------------
| Non-allocated | -87 | -47.3 | -113 | -34.9 | -23.0 |
--------------------------------------------------------------------------------
| Total | 184 | 100.0 | 324 | 100.0 | -43.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Software Sales International
The net sales of Software Sales International business segment in April - June
decreased to EUR 0.901 million (1.399) and operating profit to EUR 0.066 million
(0.200). Net sales in April - June 2008 include an exceptionally large software
license deal, worth over EUR 0.5 million, to Standard Bank of South Africa.
The largest export markets were Russian Federation, Sweden, Belgium, Great
Britain and Portugal. QPR delivered software licenses in the second quarter,
among others, to City of Los Angeles in the United States, to energy company CFE
and Kone Corporation in Mexico, Council of Ivercyle in Great Britain, to
Vattenfall
in Sweden and to MTS, the largest mobile phone operator in Russian Federation.
Software Sales Finland
The net sales of Software Sales Finland -business segment in April - June rose
to EUR 0.577 million (0.538), thanks to increased software maintenance sales.
Also operating profit rose, mainly due to increased sales to EUR 0.218 million
(0.150).
In Finland QPR delivered software, among others, to Aditro Group, Alma Media
Corporation, Cargotec Corporation, Neste Oil Corporation, Samlink Group, Sato
Corporation, Vaisala Corporation, the Finnish Defense Forces (Navy), Finnish
State Treasury, health district of Kymenlaakso, Finnish Communications
Regulatory Authority and to the local government IT management unit of Ministry
of Finance (KuntaIT).
Service and Solutions
The net sales and operating profit of Service and Solutions business segment
decreased mainly due to lower international professional service sales than in
the previous year. Net sales were EUR 0.210 million (0.278) and operating
profit EUR -0.013 million (0.087). Net sales in the review period were mainly
derived from Finland.
In its professional service offering, QPR focuses especially on business process
consulting, in which QPR experts have significant experience across the
industries.
JANURY - JUNE 2009 COMPARED WITH JANUARY - JUNE 2008
THE GROUP
QPR Software Group´s net sales in January - June 2009 were EUR 3.316 million
(3.969).
The decrease in net sales was due to lower international software sales than
previous year. International net sales in January - June were EUR 1.790 million
(2.604) However, net sales in Finland grew 11.8 percent compared to last year
and reached EUR 1.526 million (1.365). The increase was boosted by QPR´s
expansion to healthcare sector in the beginning of 2009.
Group net sales by geography, (EUR 1,000):
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| | 1-6/ | Share- | 1-6/ | Share- | Change- | 1-12/ |
| | 2009 | % | 2008 | % | % | 2008 |
--------------------------------------------------------------------------------
| Domestic | 1,526 | 46.0 | 1,365 | 34.4 | 11.8 | 2,634 |
--------------------------------------------------------------------------------
| International | 1,790 | 54.0 | 2,604 | 65.6 | -31.3 | 4,878 |
--------------------------------------------------------------------------------
| Total | 3,316 | 100.0 | 3,969 | 100.0 | -16.5 | 7,512 |
--------------------------------------------------------------------------------
Group net sales divided into software licenses, maintenance services and
professional services as follows, (EUR 1,000):
--------------------------------------------------------------------------------
| | 1-6/ | Share-| 1-6/ | Share- | Change- | 1-12/ |
| | 2009 | % | 2008 | % | % | 2008 |
--------------------------------------------------------------------------------
| Software licenses | 1,157 | 34.9 | 1,996 | 50.3 | -42.0 | 3,617 |
--------------------------------------------------------------------------------
| Maintenance services | 1,710 | 51.6 | 1,484 | 37.4 | 15.2 | 2,957 |
--------------------------------------------------------------------------------
| Professional | 449 | 13.5 | 489 | 12.3 | -8.2 | 938 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Total | 3,316 | 100.0 | 3,969 | 100.0 | -16.5 | 7,512 |
--------------------------------------------------------------------------------
Maintenance service sales increased both in Finland and international markets,
and rose to EUR 1.710 million (1.484). The migration of maintenance customers to
the new QPR 8.0 software version, launched at the end of 2008, continued
swiftly. EUR 0.126 million maintenance sales increase was due to business
acquired from Mawell Ltd.
Professional services net sales decreased to EUR 0.449 million (0.489) and was
13.5 percent (12.3) of Group net sales.
Operating profit in January - June decreased to EUR 0.327 million (0.415)
despite tight and successful cost control in the Group. Operating margin was
9.9% (10.5). Depreciation grew to EUR 0.209 million (0.139), which was partly
due to depreciation the purchase price of the business acquired from Mawell Ltd.
Cash flow from operating activities was positive EUR 0.243 million (0.693).
Net profit after tax in January - June was EUR 0.267 million (0.327), which
corresponded 8.1% of net sales (8.2).
Earnings per share (diluted) were EUR 0.02 (0.03).
BUSINES SEGMENTS
Group net sales by primary business segments, (EUR 1,000):
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| | 1-6/ | Share- | 1-6/ | Share- | Change-% |
| | 2009 | % | 2008 | % | |
--------------------------------------------------------------------------------
| Software sales | 1,747 | 52.7 | 2,527 | 63.7 | -30.9 |
| International | | | | | |
--------------------------------------------------------------------------------
| Software Sales Finland | 1,137 | 34.3 | 983 | 24.8 | 15.7 |
--------------------------------------------------------------------------------
| Service and Solutions | 432 | 13.0 | 459 | 11.5 | -5.9 |
--------------------------------------------------------------------------------
| Total | 3,316 | 100.0 | 3,969 | 100.0 | -16.5 |
--------------------------------------------------------------------------------
Group operating profit by business segments, (EUR 1,000):
--------------------------------------------------------------------------------
| | 1-6/ | Share- | 1-6/ | Share- | Change-% |
| | 2009 | % | 2008 | % | |
--------------------------------------------------------------------------------
| Software sales | 88 | 26.9 | 337 | 81.2 | -73.9 |
| International | | | | | |
--------------------------------------------------------------------------------
| Software Sales Finland | 416 | 127.2 | 296 | 71.3 | 40.5 |
--------------------------------------------------------------------------------
| Service and Solutions | 4 | 1.2 | 64 | 15.4 | -93.8 |
--------------------------------------------------------------------------------
| Non-allocated | -181 | -55.3 | -282 | -67.9 | -35.8 |
--------------------------------------------------------------------------------
| Total | 327 | 100.0 | 415 | 100.0 | -21.2 |
--------------------------------------------------------------------------------
Software Sales International
The net sales of Software Sales International business segment decreased in
January - June to EUR 1.747 million (2.527), mainly due to lower software
license sales. For the same reason, the segment´s operating profit decreased to
EUR 0.088 million (0.337).
The largest export markets were Sweden, Russian Federation, South Africa,
Belgium and Japan.
Software Sales Finland
The net sales of Software Sales Finland -business segment in January - June rose
to EUR 1.137 million (0.983) thanks to increased software license and
maintenance sales. Operating profit rose due to increased sales to EUR 0.416
million (0.296).
Service and Solutions
The net sales of Service and Solutions business segment in January - June
decreased to EUR 0.432 million (0.459) mainly due to lower international
professional service sales than in the previous year. Operating profit
decreased to EUR 0.004 million (0.064). Net sales were mainly derived from
Finland.
FINANCE AND INVESTMENTS
The value of total assets at the end of June 2009 was EUR 6.599 million
(5.926). The Group´s investments in the review period totaled to EUR 0.599
million (0.091).
Cash flow from operating activities was EUR 0.243 million (0.693). Cash and cash
equivalents at the end of the review period were EUR 2.105 (1.397). The
dividend of EUR 0.368 was paid in the reporting period (0.368).
The Group´s interest bearing liabilities increased to EUR 1.313 million (0.285)
due to EUR 1.1 million pension loan withdrawn during the review period. The
gearing ratio on June 30, 2009 was -30.8% (-50.2). Return on capital employed
was 19.8% (32.8).
Short-term liabilities include deferred revenue in total of EUR 1.574 million
(1.808). At the end of reporting period, quick ratio was 3.69 (2.77).
At the end of the reporting period, the Group equity stood at EUR 2.568 million
(2.214), and equity to assets ratio was 51.1% (53.8). Return on equity was 20.2%
(29.2).
PERSONNEL
At the end of the June, the Group employed a total of 56 persons (54). Average
number of personnel was 56 (53).
PRODUCT DEVELOPMENT
The amount of R&D expenses in January - June 2009 were EUR 0.575 million
(0.770), representing 17.3% of net sales (19.4).
During January - June, R&D expenses have been activated as assets for a total
amount of EUR 0.045 million (0.059). The depreciation period of capitalized R&D
expenses is 4 years. The depreciation of activated R&D expense was EUR 0.077
million (0.043).
Product development employed 17 (16) people at the end of the review period,
corresponding to 30% of the total personnel (30).
The core know-how of product development remains centralized within the own
organization. Long-term co-operation continued with established subcontractors.
QPR Software has been a Microsoft Gold Certified Partner since 2007.
Research & Development activities focused on the development of a new version of
the QPR product family, QPR 8.1, to be released in the second half of 2009. The
new version will broaden the integration between the QPR software products and
the Microsoft Office product family by e.g. enabling publishing and distribution
of process, quality, performance and risk information through Microsoft Office
SharePoint Server portal. As part of the new release, the QPR product family
will also become fully compatible with Microsoft Windows 7™.
QPR offers an, 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 process management,
quality management, risk management and compliance.
With the help of QPR software solutions, organizations optimize business
processes, take control of risk and compliance issues, improve operational
performance and drive strategy throughout their organization. Customers can also
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 methodologies. QPR
software applications are especially designed to be compatible with Microsoft
software products and are scalable from a single-user to an organization-wide
management system. The QPR product family has been localized into 26 languages
(24).
COMPANY SHARES AND TRADING IN COMPANY SHARES
The Company's share capital on June 30, 2009 was EUR 1.359 million divided into
12,444,863 shares. QPR Software Plc has one share class. The book counter value
is EUR 0.11.
At the end of review period, the Company had a total of 562 shareholders. In
January - June, trading in company shares amounted to EUR 0.400 million, i.e. an
average of EUR 3,365 per trading day. Trading in shares was in total 487,196
shares, giving an average of 3,961 shares per trading day. Turnover in shares
corresponds to 3.91% of the total shares and the average price was EUR 0.85 per
share.
The total market value of the company shares was EUR 11.106 million at June 30,
2009 closing price of EUR 0.91.
OWN SHARES
The number of acquired own shares in January - June was 80,300. At the end of
the June the company held 240,450 of its own shares with a total book counter
value of EUR 26,449 and a total purchase price of EUR 193,427.96. Own shares
held by the company represent 1.93% of the Company´s capital stock.
The Board of Directors has been granted by the Annual Shareholders Meeting of
March 12, 2009, 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.
OTHER EVENTS
QPR Software's new business organization came effective as of January 1, 2009.
From the same day, the Executive Management Team consists of the following
persons: Chief Executive Officer Jari Jaakkola (chairman), Vice President
Software Sales International Antti Ainasoja, Vice President Software Sales
Finland Matti Erkheikki, Vice President Services and Solutions Maija Erkheikki,
Vice President Marketing and Business Development Teemu Lehto, acting CFO Päivi
Vahvelainen and Vice President Products and Technology Tony Virtanen.
M.Sc. (Eng) Kari Pihlatie (52) was appointed on May 27, 2009 as the Chief
Financial Officer and Member of the Executive Management Team as of August 10,
2009. He joins the company from Metsäliitto Finnforest and has previously held
several financial management leadership positions, among others, in M-real
Corporation and Metsa Tissue Corporation.
In its meeting on January 19, 2009 the QPR Board of Directors approved 67,000
share subscriptions made under QPR Software Plc Stock Option Plan 2003/III A and
2003/B. The new shares were entered into the Trade Register in February 10,
2009, after which the number of company´s shares rose to 12,444,863. The company
has no option schemes in effect.
The Board of Directors of QPR Software Plc decided on February 11, 2009 to
withdraw a pension loan of EUR 1.1 million, with loan period of 5 years. The
loan was fully withdrawn during the second quarter.
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 sales and to further improve the replication of software sales. In the near
regions QPR will invest especially in sales to Russia.
The Company continues to follow the structural developments in the software
industry, and aims actively to participate in it.
DECISIONS MADE BY THE ANNUAL SHAREHOLDERS' MEETING AND GOVERNANCE
The Annual Shareholders' Meeting held on March 12, 2009 made the following
decisions:
The Annual Shareholders' Meeting confirmed the company's financial statements
and the group's financial statements for the financial period of January
1 - December 31, 2008 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 368,262.39, be paid for the financial year
2008. The dividend was paid to shareholders entered in the company's shareholder
register, maintained by Euroclear Finland Oy, on the record date of March 17,
2009. The dividend payment date was March 26, 2009.
The Annual Shareholders' Meeting resolved that the Board of Directors shall
consist of five ordinary members. The Annual Shareholders' Meeting elected the
following members to 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, Authorized Public Accountants, continues as QPR Software Plc's
Auditors.
The Annual Shareholders' Meeting decided to keep Board of Directors yearly
emoluments the same as in previous year. A yearly emolument of EUR 25,230
is paid to the Chairman of the Board and EUR 16,820 to the other Members of the
Board.
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. The share issue can
be carried out as a share issue against payment or without consideration on
terms to be determined by the Board of Directors.
The authorization also includes the right to issue special rights, in the
meaning of Chapter 10 Section 1 of the Companies Act, which entitle to the
company's new shares or the company's own shares held by the company against
payment. 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 is in force until the next Annual
Shareholders' Meeting.
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 is in force until the next Annual
Shareholders´ Meeting.
Further, the Annual Shareholders' Meeting decided to authorize the Board of
Directors to decide on potential distribution of assets from the invested
unrestricted equity fund, provided that the evaluations of the financial
situation of the company and its market outlook are in favor of such a decision.
The maximum distribution of assets is EUR 0.02 per share. The authorization is
in force until the next Annual Shareholders´ Meeting. The Board of Directors
must make the decision no later than 31 December, 2009.
The conditions of all authorizations 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 March 12, 2009.
CORPORATE GOVERNANCE
QPR Software Plc complies with the NASADAQ OMX Helsinki Ltd's Guidelines for
Insiders issued on June 2, 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, 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
review period.
SHORT-TERM RISKS AND UNCERTAINTIES
Internal control and risk management in QPR Software Plc aims to ensure that the
Company operates 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. Property, operational and
liability risks are covered by insurance.
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.
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 since autumn 2008, 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 conducts 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.
No significant changes have taken place in QPR's short-term risks and
uncertainties during the financial period.
Risks related to QPR Software´s business are further described in the Annual
Report 2008, page 23 (www.qpr.com/annual-reports.html).
FUTURE OUTLOOK
Market forecasts published in the first half of 2009 estimate that total
corporate IT investments will decrease in 2009. The estimated decrease varies,
and is usually between 3 and 10%, depending on the publisher of the forecast and
its timing.
Based on current software market growth forecasts, QPR´s own forecasts and
resellers' forecasts, QPR Software estimates that its operating profit in the
second half of 2009 will remain on the level achieved in the first half of 2009
(January - June 2009: EUR 0.327 million), but the full year operating profit
2009 is likely to be somewhat lower than in 2008 (EUR 0.893 million).
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 January - September 2009: Thursday, October 22, 2009.
QPR SOFTWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0)40 5026 397
www.qpr.com
DISTRIBUTION
OMX Nordic Exchange Helsinki
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
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT |
--------------------------------------------------------------------------------
| (EUR 1,000) | 4-6/ | 4-6/ | 1-6/| 1-6/| 1-12/ |
| | 2009 | 2008 | 2009| 2008| 2008 |
--------------------------------------------------------------------------------
| Net sales | 1,688 | 2,215 | 3,316 | 3,969 | 7,512 |
--------------------------------------------------------------------------------
| Other operating income | 25 | 21 | 32 | 32 | 51 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Material and services | 117 | 273 | 229 | 532 | 875 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Employee benefits | 890 | 986 | 1,785 | 1,929 | 3,653 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Depreciation | 95 | 69 | 209 | 139 | 301 |
--------------------------------------------------------------------------------
| Other operating expenses | 427 | 584 | 798 | 986 | 1,841 |
--------------------------------------------------------------------------------
| Operating profit | 184 | 324 | 327 | 415 | 893 |
--------------------------------------------------------------------------------
| Financial income and | -5 | 6 | 1 | 4 | 34 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 179 | 330 | 328 | 419 | 927 |
--------------------------------------------------------------------------------
| Income tax expense | -34 | -81 | -61 | -92 | 1 |
--------------------------------------------------------------------------------
| Profit for the period | 145 | 249 | 267 | 327 | 928 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income statement items: | | | |
--------------------------------------------------------------------------------
| Exchange differences on | -10 | -7 | -5 | -10 | -35 |
| translating foreign | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Income tax relating to | - | - | - | - | - |
| components of other | | | | | |
| comprehensive income | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | -10 | -7 | -5 | -10 | -35 |
| income, net of tax | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | 135 | 242 | 262 | 317 | 893 |
| income | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | | | | | |
| parent company | 145 | 249 | 267 | 327 | 928 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive | | | | | |
| income attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | | | | | |
| parent company | 135 | 242 | 262 | 317 | 893 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | 0.01 | 0.02 | 0.02 | 0.03 | 0.07 |
| (diluted), EUR | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.01 | 0.02 | 0.02 | 0.03 | 0.08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET JUNE 30, 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1,000) | 30 June | 30 June | 31 December|
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Tangible assets | 188 | 274 | 226 |
--------------------------------------------------------------------------------
| Other intangible assets | 1,305 | 447 | 1,078 |
--------------------------------------------------------------------------------
| Trade and other receivables | 5 | 5 | 5 |
--------------------------------------------------------------------------------
| Deferred tax assets | 494 | 435 | 539 |
--------------------------------------------------------------------------------
| Total non-current assets | 1,992 | 1,161 | 1,848 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 2,502 | 3,368 | 2,483 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 2,105 | 1,397 | 1,716 |
--------------------------------------------------------------------------------
| Total current assets | 4,607 | 4,765 | 4,199 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 6,599 | 5,926 | 6,047 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and liabilities | 30 June | 30 June | 31 December|
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Share capital | 1,359 | 1,359 | 1,359 |
--------------------------------------------------------------------------------
| Share premium | 0 | 231 | 0 |
--------------------------------------------------------------------------------
| Reserve fund | 21 | 22 | 21 |
--------------------------------------------------------------------------------
| Invested non-restricted equity | 371 | 3 | 360 |
| fund | | | |
--------------------------------------------------------------------------------
| Translation differences | -110 | -79 | -105 |
--------------------------------------------------------------------------------
| Treasury shares | -194 | -67 | -125 |
--------------------------------------------------------------------------------
| Retained earnings | 1,121 | 745 | 1,222 |
--------------------------------------------------------------------------------
| Equity attributable to | 2,568 | 2,214 | 2,732 |
| shareholders of the parent company | | | |
--------------------------------------------------------------------------------
| Total equity | 2,568 | 2,214 | 2,732 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 984 | 182 | 79 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 984 | 182 | 79 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Accounts payables and other | 2,718 | 3,427 | 3,133 |
| payables | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 329 | 103 | 103 |
--------------------------------------------------------------------------------
| Total current liabilities | 3,047 | 3,530 | 3,236 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 4,031 | 3,712 | 3,315 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 6,599 | 5,926 | 6,047 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT |
--------------------------------------------------------------------------------
| (EUR 1,000) |1 Jan-30 Jun | 1 Jan-30 Jun| 1 Jan-31 Dec
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Cash flow from operating | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Profit for the period | 267 | 386 | 928 |
--------------------------------------------------------------------------------
| Adjustments for the profit | | | |
--------------------------------------------------------------------------------
| Depreciation | 209 | 139 | 301 |
--------------------------------------------------------------------------------
| Non-cash transactions | -2 | 29 | 83 |
--------------------------------------------------------------------------------
| Changes in working capital | | | |
--------------------------------------------------------------------------------
| Changes in trade and other | 19 | -804 | -67 |
| receivables | | | |
--------------------------------------------------------------------------------
| Changes in accounts payable | -253 | 972 | 275 |
| and other liabilities | | | |
--------------------------------------------------------------------------------
| Interest expense and | -5 | 2 | -10 |
| other financial expenses | | | |
--------------------------------------------------------------------------------
| Interest income and | 8 | -6 | 38 |
| other financial income | | | |
--------------------------------------------------------------------------------
| Income taxes paid | 0 | -25 | -30 |
--------------------------------------------------------------------------------
| Net cash from operating | 243 | 693 | 1,518 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing | | | |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchases of tangible assets | -24 | -22 | -54 |
--------------------------------------------------------------------------------
| Purchases of intangible assets | -535 | -69 | -382 |
--------------------------------------------------------------------------------
| Net cash used in investing | -559 | -91 | -436 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Proceeds from issuance of share | 11 | 4 | 4 |
| capital | | | |
--------------------------------------------------------------------------------
| Proceeds from long-term loans | 1,131 | 0 | 0 |
--------------------------------------------------------------------------------
| Repayments of financial leases | 0 | -83 | -187 |
--------------------------------------------------------------------------------
| Purchases of own shares | -69 | -3 | -60 |
--------------------------------------------------------------------------------
| Dividends paid | -368 | -368 | -368 |
--------------------------------------------------------------------------------
| Net cash used in financing | 705 | -450 | -611 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net change in cash and cash | 389 | 152 | 471 |
| equivalents | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents in | 1,716 | 1,245 | 1,245 |
| the beginning of period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents in | 2,105 | 1,397 | 1,716 |
| the end of period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY |
| 1 JANUARY - 30 JUNE 2009 |
--------------------------------------------------------------------------------
| | Share | Reserve| Trans- | Trea- |Invested |Retained | Total |
| | capital| fund| lation | sury | non- | earnings| |
| | | | differ.| shares| restr.| |
| | | | | | equity | | |
| | | | | | fund | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehol- | 1,359 | 21 | -105 | -125 | 360 | 1,222 | 2,732 |
| ders' equity| | | | | | | |
| 1 January | | | | | | | |
| 2009 | | | | | | | |
--------------------------------------------------------------------------------
| Shares | | | | | 11 | | 11 |
| issued | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -368 | -368 |
| paid | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | -69 | | | -69 |
| own shares | | | | | | | |
--------------------------------------------------------------------------------
| Comprehen- | | | -5 | | | 267 | 262 |
| sive income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | 0 | 0 | -5 | -69 | 11 | -101 | -164 |
| sharehol- | | | | | | | |
| ders' | | | | | | | |
| equity, 1-6 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehol- | 1,359 | 21 | -110 | -194 | 371 | 1,121 | 2,568 |
| ders' equity| | | | | | | |
| 30 June 2008| | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY |
| 1 JANUARY - 30 JUNE, 2008 |
--------------------------------------------------------------------------------
| | Share | Share| Trans-| Trea- |Invested |Retained | Total |
| | capital| premium| lation | sury | non- | earnings| |
| | | and| differ.| shares | restr.| |
| | | reserve| | | equity | | |
| | | fund| | | fund | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehol- | 1,359 | 253 | -70 | -65 | 0 | 787 | 2,264 |
| ders' equity| | | | | | | |
| 1 January | | | | | | | |
| 2008 | | | | | | | |
--------------------------------------------------------------------------------
| Shares | | | | | 3 | | 3 |
| issued | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -368 | -368 |
| paid | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | -2 | | | -2 |
| own shares | | | | | | | |
--------------------------------------------------------------------------------
| Comprehen- | | | -10 | | | 327 | 317 |
| sive income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | 0 | 0 | -10 | -2 | 3 | -41 | -50 |
| sharehol- | | | | | | | |
| ders' equity| | | | | | | |
| 1-6 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehol- | 1,359 | 253 | -80 | -67 | 3 | 746 | 2,214 |
| ders' equity| | | | | | | |
| 30 June 2009| | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY |
| 1 JANUARY - 31 DECEMBER 2008
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Share | Share| Trans-| Trea- |Invested |Retained | Total
| | capital| premium| lation | sury | non- | earnings| |
| | | and| differ.| shares | restr.| |
| | | reserve| | | equity | | |
| | | fund | | | fund | | |
--------------------------------------------------------------------------------
| Sharehol- | 1,359 | 253 | -70 | -65 | 0 | 787 | 2,264 |
| ders' equity| | | | | | | |
| 1 January | | | | | | | |
| 2008 | | | | | | | |
--------------------------------------------------------------------------------
| Shares | | | | | 3 | | 3 |
| issues | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -368 | -368 |
| paid | | | | | | | |
--------------------------------------------------------------------------------
| Purchase of | | | | -60 | | | -60 |
| own shares | | | | | | | |
--------------------------------------------------------------------------------
| Comprehen- | | | -35 | | | 928 | 893 |
| sive income | | | | | | |
--------------------------------------------------------------------------------
| Transfer of | | -232 | | | 357 | -125 | 0 |
| other funds | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | 0 | -232 | -35 | -60 | 360 | 435 | 468 |
| sharehol- | | | | | | | |
| ders' | | | | | | | |
| equity, 1-12| | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehol- | 1,359 | 21 | -105 | -125 | 360 | 1,222 | 2,732 |
| ders' equity| | | | | | | |
| 31 Dec 2008 | | | | | | | |
--------------------------------------------------------------------------------
GROUP COMMITMENTS AND CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| (EUR 1,000) | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Business mortgage | 1,337 | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current lease liabilities | | | |
--------------------------------------------------------------------------------
| Lease liabilities maturing during | 166 | 396 | 284 |
| one year | | | |
--------------------------------------------------------------------------------
| Lease liabilities maturing 2-5 years | 12 | 36 | 23 |
--------------------------------------------------------------------------------
| Total | 178 | 432 | 307 |
--------------------------------------------------------------------------------
| Total commitments and contingent | 1,515 | 432 | 307 |
| liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP INTANGIBLE AND TANGIBLE ASSETS | | | |
--------------------------------------------------------------------------------
-------------------------------------------------------------------------------
| Change in intangible assets | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1,000) | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Acquisition cost 1 January | 2,528 | 1,744 | 1,744 |
--------------------------------------------------------------------------------
| Increase | 374 | 69 | 784 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Change in tangible assets | | | |
--------------------------------------------------------------------------------
| (EUR 1,000) | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
| | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Acquisition cost 1 January | 1,099 | 1,045 | 1,045 |
--------------------------------------------------------------------------------
| Increase | 23 | 22 | 54 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN GROUP INTEREST BEARING LOANS | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1,000) | 30 June | 30 June | 31 December |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Interest bearing loans 1 January | 182 | 369 | 369 |
--------------------------------------------------------------------------------
| Withdrawals | 1,131 | 0 | 0 |
--------------------------------------------------------------------------------
| Repayments | 0 | -84 | -187 |
--------------------------------------------------------------------------------
| Interest bearing loans | 1,313 | 285 | 182 |
| 30 June/31 December | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BUSINESS SEGMENTS (PRIMARY SEGMENTS) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 April - 30 June 2009 | | | | | |
--------------------------------------------------------------------------------
| (1,000 EUR) | Software | Service | Software | Elimina- | Not | Group |
| | Sales | & | Sales | tions | allocated | Total |
| | Interna- | Solu- | Finland | | | |
| | tional | tions | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME STATEMENT INFORMATION |
--------------------------------------------------------------------------------
| Net sales | 901 | 210 | 577 | 0 | 0 | 1,688 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 66 | -13 | 218 | 0 | -87 | 184 |
| profit of | | | | | | |
| segment | | | | | | |
--------------------------------------------------------------------------------
| Operating | | | | | | 184 |
| profit | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance | | | | | -5 | -5 |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Income tax | | | | | -34 | -34 |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Profit for | 66 | -13 | 218 | 0 | -126 | 145 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | | 145 |
| the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION
|
--------------------------------------------------------------------------------
| Depreciation| 56 | 9 | 30 | 0 | 0 | 95 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 January - 30 June 2009 | | | | |
|-------------------------------------------------------------------------------
| (1,000 EUR) | Software | Service | Software | Elimina- | Not | Group |
| | Sales | & | Sales | tions | allocated | Total |
| | Interna- | Solu- | Finland | | | |
| | tional | tions | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME STATEMENT INFORMATION |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 1,747 | 432 | 1 137 | 0 | 0 | 3,316 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 88 | 4 | 416 | | -181 | 327 |
| profit of | | | | | | |
| segment | | | | | | |
--------------------------------------------------------------------------------
| Operating | | | | | | 327 |
| profit | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance | | | | | 1 | 1 |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Income tax | | | | | -61 | -61 |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Profit for | 88 | 4 | 416 | 0 | -241 | 267 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | | 267 |
| the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION
|
--------------------------------------------------------------------------------
| Depreciation| 114 | 20 | 75 | 0 | 0 | 209 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 April - 30 June 2008 | | | | | |
--------------------------------------------------------------------------------
| (1,000 EUR) | Software | Service | Software | Elimina- | Not | Group |
| | Sales | & | Sales | tions | allocated | Total |
| | Interna- | Solu- | Finland | | | |
| | tional | tions | | | | |
--------------------------------------------------------------------------------
| INCOME STATEMENT INFORMATION |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 1,399 | 278 | 538 | 0 | 0 | 2,215 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 200 | 87 | 150 | 0 | -113 | 324 |
| profit of | | | | | | |
| segment | | | | | | |
--------------------------------------------------------------------------------
| Operating | | | | | | 324 |
| profit | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance | | | | | 6 | 6 |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Income tax | | | | | -81 | -81 |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Profit for | 200 | 87 | 150 | 0 | -188 | 249 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | | 249 |
| the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION
|
--------------------------------------------------------------------------------
| Depreciation| 44 | 9 | 16 | 0 | 0 | 69 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 January - June 30 2008 | | | | |
--------------------------------------------------------------------------------
| (1,000 EUR) | Software | Service | Software | Elimina- | Not | Group |
| | Sales | & | Sales | tions | allocated | Total |
| | Interna- | Solu- | Finland | | | |
| | tional | tions | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INCOME STATEMENT INFORMATION |
--------------------------------------------------------------------------------
| Net sales | 2,527 | 459 | 983 | 0 | 0 | 3,969 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 337 | 64 | 296 | | -282 | 415 |
| profit of | | | | | | |
| segment | | | | | | |
--------------------------------------------------------------------------------
| Operating | | | | | | 415 |
| profit | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance | | | | | 4 | 4 |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Income tax | | | | | -92 | -92 |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Profit for | 337 | 64 | 296 | 0 | -370 | 327 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | | 327 |
| the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION
|
--------------------------------------------------------------------------------
| Depreciation| 89 | 16 | 34 | 0 | 0 | 139 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT PER QUARTER |
--------------------------------------------------------------------------------
------------------------------------------------------------------------------
| (EUR 1,000) | 1-3/ | 1-3/| 4-6/| 4-6/ | 7-9/ | 10-12/ |
| | 2009 | 2008| 2009| 2008 | 2008 | 2008 |
------------------------------------------------------------------------------
------------------------------------------------------------------------------
| Net sales | 1,628 | 1,754 | 1,688 | 2,215 | 1,485 | 2,058 |
------------------------------------------------------------------------------
| Other operating | 7 | 11 | 25 | 21 | 7 | 12 |
| income | | | | | | |
------------------------------------------------------------------------------
------------------------------------------------------------------------------
| Material and | 112 | 259 | 117 | 273 | 225 | 118 |
| services | | | | | | |
------------------------------------------------------------------------------
| Employee benefits | 895 | 943 | 890 | 986 | 733 | 991 |
| expenses | | | | | | |
------------------------------------------------------------------------------
| Depreciation | 114 | 70 | 95 | 69 | 69 | 93 |
------------------------------------------------------------------------------
| Other operating | 371 | 402 | 427 | 584 | 402 | 453 |
| expenses | | | | | |
------------------------------------------------------------------------------
| Operating profit | 143 | 91 | 184 | 324 | 63 | 415 |
------------------------------------------------------------------------------
------------------------------------------------------------------------------
| Financial income | 6 | -2 | -5 | 6 | 12 | 19 |
| and expenses | | | | | | |
-----------------------------------------------------------------------------
| Profit before tax | 149 | 89 | 179 | 330 | 75 | 434 |
------------------------------------------------------------------------------
------------------------------------------------------------------------------
| Income tax | -27 | -11 | -34 | -81 | -16 | 109 |
| expenses | | | | | | |
------------------------------------------------------------------------------
| Profit for the | 122 | 78 | 145 | 249 | 59 | 543 |
| period | | | | | | |
------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP KEY FIGURES |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR (1,000) | 1-6/ | 1-6/ | 1-3/ | 1-3/ | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Net sales | 3,316 | 3,969 | 1,628 | 1,754 | 7,512 |
--------------------------------------------------------------------------------
| Net sales growth, % | -16.5 | 2.9 | -7.2 | 7.3 | 6.4 |
--------------------------------------------------------------------------------
| Operating profit | 327 | 415 | 143 | 91 | 893 |
--------------------------------------------------------------------------------
| % of net sales | 9.9 | 10.5 | 8.8 | 5.2 | 11.9 |
--------------------------------------------------------------------------------
| Profit or loss before tax | 328 | 419 | 149 | 90 | 927 |
--------------------------------------------------------------------------------
| % of net sales | 9.9 | 10.6 | 9.2 | 5.1 | 12.3 |
--------------------------------------------------------------------------------
| Profit for the period | 267 | 327 | 122 | 78 | 928 |
--------------------------------------------------------------------------------
| % of net sales | 8.1 | 8.2 | 7.5 | 4.5 | 12.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity,% | 20.2 | 29.2 | 18.6 | 14.8 | 37.1 |
--------------------------------------------------------------------------------
| Return on investment,% | 19.8 | 32.8 | 21.4 | 14.7 | 33.6 |
--------------------------------------------------------------------------------
| Interest bearing | 1,313 | 285 | 182 | 369 | 182 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 2,105 | 1,397 | 1,163 | 1,077 | 1,716 |
--------------------------------------------------------------------------------
| Net liabilities | -792 | -1,112 | -981 | -708 | -1,534 |
--------------------------------------------------------------------------------
| Equity | 2,568 | 2,214 | 2,495 | 1,968 | 2,732 |
--------------------------------------------------------------------------------
| Gearing,% | -30.8 | -50.2 | -39.3 | -36.0 | -56.1 |
--------------------------------------------------------------------------------
| Equity ratio,% | 51.1 | 53.8 | 66.2 | 53.1 | 61.5 |
--------------------------------------------------------------------------------
| Total balance sheet | 6,599 | 5,926 | 5,501 | 5,158 | 6,047 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments in non-current | 397 | 91 | 96 | 37 | 837 |
| assets | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 12.0 | 2.3 | 5.9 | 2.1 | 11.1 |
--------------------------------------------------------------------------------
| Research and development | 575 | 770 | 308 | 384 | 1,540 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 17.3 | 19.4 | 18.9 | 21.9 | 20.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of personnel | 56 | 53 | 57 | 55 | 53 |
--------------------------------------------------------------------------------
| Personnel at the beginning | 55 | 58 | 55 | 58 | 58 |
| of period | | | | | |
--------------------------------------------------------------------------------
| Personnel at the end of | 56 | 54 | 57 | 52 | 55 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share,€ | 0.02 | 0.03 | 0.01 | 0.01 | 0.08 |
--------------------------------------------------------------------------------
| Earnings per share | 0.02 | 0.03 | 0.01 | 0.01 | 0.07 |
| (diluted), € | | | | | |
--------------------------------------------------------------------------------
| Equity per share, € | 0.21 | 0.18 | 0.20 | 0.16 | 0.22 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MAJOR SHAREHOLDERS 30 JUNE, 2009 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Number of | %-share Shares |
| | shares | and votes |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Ulkomarkkinat Oy | 1,600,000 | 12.86 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Jouko Pelkonen | 407,000 | 3.27 |
--------------------------------------------------------------------------------
| Pohjolan Rahoitus Oy | 732,300 | 5.88 |
--------------------------------------------------------------------------------
| Electrosale Oy | 215,000 | 1.73 |
--------------------------------------------------------------------------------
| Total | 1,354,300 | 10.88 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Vesa-Pekka Leskinen | 851,400 | 6.84 |
--------------------------------------------------------------------------------
| Kauppamainos Oy | 475,170 | 3.82 |
--------------------------------------------------------------------------------
| Total | 1,326,570 | 10.66 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Alesco S.A | 1,300,000 | 10.45 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Autocarrera Oy Ab | 1,245,817 | 10.01 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Kari Junkkonen | 512,016 | 4.11 |
--------------------------------------------------------------------------------
| Fortel Invest Oy | 425,326 | 3.42 |
--------------------------------------------------------------------------------
| SR EQ Technology | 341,800 | 2.75 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Päivi Marttila | 292,972 | 2.35 |
--------------------------------------------------------------------------------
| Edina Oy | 33,900 | 0.27 |
--------------------------------------------------------------------------------
| Total | 326,872 | 2.63 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Asko Piekkola | 316,438 | 2.54 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Jari Jaaakkola | 220,000 | 1.77 |
--------------------------------------------------------------------------------
| Value FM Oy | 30,000 | 0.24 |
--------------------------------------------------------------------------------
| Total | 250,000 | 2.01 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Esa Pääkkönen | 246,054 | 1.98 |
--------------------------------------------------------------------------------
| Veli-Mikko Leskinen | 232,530 | 1.87 |
--------------------------------------------------------------------------------
| Matti Kanninen | 198,207 | 1.59 |
--------------------------------------------------------------------------------
| Teemu Lehto | 172,112 | 1.38 |
--------------------------------------------------------------------------------
| Tony Virtanen | 153,554 | 1.23 |
--------------------------------------------------------------------------------
| Janne Laakso | 140,288 | 1.13 |
--------------------------------------------------------------------------------
| Kai-Erik Becker | 140,000 | 1.12 |
--------------------------------------------------------------------------------
| Other shareholders | 2,303,267 | 18.51 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 12,444,863 | 100.0 |
--------------------------------------------------------------------------------
CALCULATION OF KEY INDICATORS:
Return on equity (ROE), % (counted on yearly level):
Profit for the period x 100
________________________________________________
Shareholders' equity + minority interest (average)
Return on capital employed (ROCE), % (counted on yearly level):
Profit before taxes + interest and other financial expenses x 100
__________________________________________________________________
Balance sheet total - non-interest bearing liabilities (average)
Equity ratio, %:
Shareholders' equity x 100
______________________________________
Balance sheet total - deferred revenue
Gearing, %:
Interest bearing liabilities - cash and cash equivalents x 100
______________________________________________________________
Shareholders' equity
Earnings per share, Euro:
Profit for the period attributable to parent company shareholders
_________________________________________________________________
Adjusted number of shares over the financial year (average)
Equity per share, Euro:
Profit for the period attributable to parent company shareholders
_________________________________________________________________
Adjusted number of shares at the end of the financial period
Dividend per share, Euro:
Total dividend paid
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Adjusted number of shares at the end of the financial period
Market value of share capital:
(Number of shares - own shares) x share price at the end of the financial
period
Turnover of shares, % of share capital:
Turnover (number of shares) x 100
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Number of shares issued (average)
Quick ratio:
Current assets - inventories
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Current liabilities - deferred revenue