Comptel Corporation Stock exchange release, 22 August 2011 at 9.00 am
Comptel has signed an agreement to sell its Axioss software to Cisco. Axioss is a fulfillment solution developed by Axiom Systems, a company that Comptel acquired 2008. The transaction is estimated to close in September 2011. Comptel and Cisco will continue their cooperation across other areas of OSS/BSS, e.g. cloud mediation and charging.
The consideration to be paid by Cisco for the acquired assets is EUR 21.3 million in cash. Comptel will book this as other operating income for the third quarter of 2011. The estimated net operating profit impact of the transaction is EUR +8.5 million, recognized also in the third quarter of 2011. All numbers have been converted to euros using exchange rates as of 19 August 2011.
Comptel will continue in fulfilment business developing and selling its Comptel Fulfillment Solution. According to Comptel strategy, the next release of Comptel Fulfillment Solution, based on a new technology platform will be released in the first half of 2012. Comptel will also retain its existing Axioss customer relationships and will continue to support these customers.
As part of the deal, Cisco is also taking on some personnel related to the Axioss assets, mainly based in the UK. Mr Gareth Senior, Comptel CTO and member of the Executive Board, will also be transferring to Cisco. After planned replacement investments the transaction will not impact Comptel’s cost base significantly in 2012. The transaction is estimated to have a negative net sales impact of approximately EUR 2 million in 2011.
Mr Juhani Hintikka, President and CEO of Comptel, comments: “This is a great deal for Comptel. It underlines our technology leadership in the OSS/BSS domain. This does not change our fulfilment strategy, which is to achieve growth and the market-leader position for convergent telecom service providers.”
Full Year Outlook for 2011
Comptel revises its full-year guidance. In 2011, net sales are estimated to remain at the previous year’s level or to decrease slightly. Following the transaction, the operating profit for 2011 will clearly increase, but operating profit excluding the deal related one-off items will decrease from the previous year.
Earlier the company had estimated the net sales would grow moderately in 2011 and the operating profit to remain at the previous year’s level.
COMPTEL CORPORATION
Juhani Hintikka
President and CEO
Additional information:
Juhani Hintikka, tel. +358 9 700 1131
For financial analysts, investors and media
Comptel will arrange a briefing on the transaction for the analysts, investors and media today 22 August at 11.30 am in Comptel headquarters, Salmisaarenaukio 1, Helsinki. The meeting will be held in Finnish.
Comptel will hold an English speaking teleconference on the transaction today 22 August at 15.00 pm Finnish time (13.00 pm UK time). The dial-in number for UK local call is 0844 493 3800, US local call 1631 510 7498 and internationally +44 (0) 1452 555 566. Conference ID is 93055234.
Distribution:
NASDAQ OMX Helsinki
Major media
Comptel software enables telecom operators to deliver services flexibly and charge them effectively. Comptel's wide expertise in service fulfillment, mediation and charging empowers customers to focus on delivering innovative services. Comptel has provided solutions to 280 service providers with more than one billion subscribers in 85 countries. The Group has about 600 employees worldwide, and net sales were EUR 78 million in 2010. www.comptel.com