Espoo, Finland, 2013-03-05 08:00 CET (GLOBE NEWSWIRE) --
EFORE PLC Interim Report March 5, 2013 9.00 a.m.
First quarter in brief (November 1, 2012 — January 31, 2012)
- Net sales amounted to EUR 13.7 million (EUR 14.8 million)
- Results from operating activities amounted to EUR -1.6 million (EUR -0.8 million)
- Result before taxes was EUR -1.5 million (EUR -1.2 million)
- Result for the period was EUR -1.3 million (EUR -1.1 million)
- Earnings per share was EUR -0.03 (EUR -0.03)
Vesa Vähämöttönen, Efore’s President and CEO:
“First quarter result was weak due to the significantly lower than forecasted demand of the key customers in telecom sector although demand for industrial electronics was on expected level. Efore continues the strategic actions targeting to the substantial growth of industrial sector.
In order to be able to face the demand fluctuations of telecom sector Efore starts a profitability and efficiency improvement program targeting to annual cost base reduction of at least EUR 1.5 million by the end of this year.”
NET SALES AND FINANCIAL DEVELOPMENT FOR THE FIRST QUARTER
Net sales for the first quarter totaled EUR 13.7 million (EUR 14.8 million). Net sales by customer group amounted to as follows: Telecommunication 68.5 % (73.0 %) and industrial electronics 31.5 % (27.0 %). Geographically Efore’s deliveries were to the following areas: EMEA EUR 7.7 million (EUR 6.6 million), APAC EUR 3.3 million (EUR 5.5 million), Finland EUR 2.6 million (EUR 2.5 million) and the Americas EUR 0.1 million (EUR 0.3 million) which totaled EUR 13.7 million (EUR 14.8 million). Final geographical distribution of Efore’s products deviates from the before mentioned as Efore’s customers distribute further the products from the logistics centres to other markets.
The results from operating activities amounted to EUR -1.6 million (EUR -0.8 million).
BUSINESS DEVELOPMENT
Investment in product and technology development during the period under the review was EUR 1.8 million (EUR 1.7 million) representing 13.1 % (11.8 %) of net sales. Clearly majority of this amount was spent in telecom sector as EV power product family is mainly ready for the market demand.
First quarter result was weak due to the significantly lower than forecasted demand of the key telecom customers although demand for industrial electronics was on expected level. Efore continues the strategic actions targeting to the substantial growth of industrial sector.
INVESTMENTS
Group investments in fixed assets during the period under review amounted to EUR 0.7 million (EUR 0.7 million). At the end of the period under review capitalized product development costs amounted to EUR 0.5 million (EUR 0.8 million).
FINANCIAL POSITION
The Group’s financial position during the fiscal year was good.
The consolidated interest-bearing cash reserves exceeded interest-bearing liabilities by EUR 0.6 million (EUR 3.1 million). The consolidated net financial expenses were EUR 0.1 million (EUR -0.4 million). The cash flow from business operations was EUR -0.8 million (EUR -0.1 million). The cash flow after investments was EUR -1.1 million (EUR -0.8 million).
The Group’s solvency ratio was 46.6 % (54.0 %) and the gearing was -2.9 % (-13.0 %) at the end of the period under review.
Liquid assets excluding undrawn credit facilities amounted to EUR 5.2 million (EUR 9.4 million) at the end of the period under review. The balance sheet total was EUR 40.3 million (EUR 44.7 million).
PERSONNEL
The number of the Group’s own personnel including temporary personnel averaged 788 (808) during the period under review and at the end of the period under review it was 825 (794).
SHARES, SHARE CAPITAL AND SHAREHOLDERS
The total number of Efore Plc shares at the end of the period under review was 42.529.648 and the registered share capital was EUR 15.000.000.
The amount of the Group's own shares was 1,218,544 at the end of the period under review. In addition to this Efore Management Oy, a company belonging to Efore group owned 2.358.242 pcs of Efore shares.
The highest share price during the period under review was EUR 0.80 and the lowest price was EUR 0.66. The average price during the period under review was EUR 0.70 and the closing price was EUR 0.72. The market capitalization calculated at the final trading price during the period under review was EUR 28.0 million.
The total number of Efore shares traded on the Nasdaq OMX Helsinki during the period under review was 2.2 million and their turnover value was EUR 1.6 million. This accounted for 5.2 % of the total number of shares. The number of shareholders totaled 3195 (3348) at the end of the period under review.
DECISIONS OF THE ANNUAL GENERAL MEETING
A separate stock exchange bulletin has been issued on resolutions of the Annual General Meeting of Shareholders and the authorizations granted for the Board of Directors on February 8, 2013.
ACCOUNTING POLICIES
The report has been drawn up in accordance with IAS 34 Standard on Interim Financial Reporting and the Group's accounting principles presented in the 2012 annual report. The information in this release is unaudited.
All the figures in the report have been rounded up/down, for which reason the total of the individual figures when added together may be different from the total shown.
SHORT-TERM RISKS AND FACTORS OF UNCERTAINTY
The market typical fluctuation in demand can cause rapid changes in Efore’s business. The most significant business risks are related to the success of key customers in their markets and to Efore's delivery capability for the key customers.
Progress of the EV power electronics projects depends on the customers’ own project schedules and the establishment of the whole market.
It has been recognized that global economic development may effect negatively on Efore’s business environment
A more comprehensive report on risk management is presented on the company's web-sites.
EVENTS AFTER THE PERIOD UNDER REVIEW
On March 5, 2013 Efore announced it will start profitability and efficiency improvement program targeting to annual cost base reduction of at least EUR 1.5 million by the end of this year.
The aim of program is to streamline Efore’s operations and organization to improve the capability to face the demand fluctuations.
As part of the program Efore commences labor negotiations with its entire personnel in all locations. According to a preliminary estimate, a reduction in personnel of at most 75 employees will be required of which at most 15 in Finland. In Finland, in addition to permanent layoffs, negotiations will be conducted on possible temporary layoffs affecting all personnel groups.
OUTLOOK
The fundamentals for long-term positive development of wireless network equipment industry are expected to remain unchanged. However, due to the short term demand fluctuations and recent financial results Efore has started the profitability and efficiency improvement program.
Industrial sector offers several growth areas and Efore continues to expand its expertise and presence in these markets.
FINANCIAL ESTIMATE FOR THE FISCAL YEAR 2013
Although the long term outlook is positive, due to the uncertainties in the global economy combined with the telecom market fluctuation and customers’ ordering practices it is not possible to provide a reliable financial estimate for the fiscal year 2013.
However, based on the available information company estimates its net sales to be on the same level with previous year.
Net sales is estimated for the corresponding period as Efore’s previous fiscal year.
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TABLES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
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| EUR million | Nov./12- | Nov./11- | Nov./11- |
| Jan./13 | Jan./ 12 | Oct./12 | |
| 3 months | 3 months | 12 months | |
| Net sales | 13,7 | 14,8 | 78,1 |
| Change in inventories of | |||
| finished goods and work in progress | 1,5 | 0,6 | 2,3 |
| Other operating income | 0,0 | 0,4 | 0,6 |
| Materials and services | -10,9 | -10,6 | -55,9 |
| Employee benefits expenses | -3,5 | -3,5 | -15,9 |
| Depreciation | -0,6 | -0,8 | -3,0 |
| Other operating expenses | -1,8 | -1,8 | -8,8 |
| RESULTS FROM OPERATING ACTIVITIES | -1,6 | -0,8 | -2,6 |
| % net sales | -11,4 | -5,7 | -3,3 |
| Financing income | 0,5 | 0,4 | 1,7 |
| Financing expenses | -0,4 | -0,8 | -2,1 |
| RESULT BEFORE TAX | -1,5 | -1,2 | -3,0 |
| % net sales | -10,7 | -8,3 | -3,9 |
| Tax on income from operations | 0,1 | 0,2 | 0,7 |
| RESULT FOR THE PERIOD | -1,3 | -1,1 | -2,3 |
| OTHER COMPREHENSIVE INCOME: | |||
| Translation differences | -0,6 | 1,0 | 1,4 |
| Total comprehensive income | -1,9 | 0,0 | -0,9 |
| NET PROFITT/lOSS ATTRIBUTABLE | |||
| To equity holders of the parent | -1,3 | -1,1 | -2,3 |
| To non-controlling interest | 0,0 | 0,0 | -0,1 |
| TOTAL COMPREHENSIVE INCOME | |||
| ATTRIBUTABLE TO: | |||
| Equity holders of the parent | -1,9 | 0,0 | -0,9 |
| Non-controlling interest | 0,0 | 0,0 | -0,1 |
| EARNINGS PER SHARE CALCULATED ON PROFIT ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT: | |||
| Earnings per share, basic,eur | -0,03 | -0,03 | -0,06 |
| Earnings per share, diluted, eur | -0,03 | -0,03 | -0,06 |
| INFORMATION ABOUT GEOGRAPHICAL | Nov./12- | Nov./11- | Nov./11- |
| AREAS, EUR million | Jan./13 | Jan./ 12 | Oct./12 |
| 3 months | 3 months | 12 months | |
| Americas | 0,1 | 0,3 | 1,3 |
| EMEA | 7,7 | 6,6 | 42,0 |
| FINLAND | 2,6 | 2,5 | 11,1 |
| APAC | 3,3 | 5,5 | 23,8 |
| Total | 13,7 | 14,8 | 78,1 |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||
| EUR million | Jan. 31, | Jan. 31, | change | Oct.31, |
| 2013 | 2012 | % | 2012 | |
| ASSETS | ||||
| NON-CURRENT ASSETS | ||||
| Intangible assets | 1,2 | 1,4 | 0,9 | |
| Tangible assets | 5,7 | 7,1 | 6,1 | |
| Trade receivables and other receivables, non-current | 0,6 | 0,0 | 0,3 | |
| Other long-term investments | 0,0 | 0,0 | 0,0 | |
| Deferred tax asset | 1,1 | 0,0 | 0,9 | |
| NON-CURRENT ASSETS | 8,6 | 8,5 | 1,1 | 8,3 |
| CURRENT ASSETS | ||||
| Inventories | 16,2 | 14,2 | 14,2 | |
| Trade receivables and other receivables | 10,3 | 12,3 | 16,4 | |
| Tax receivable, income tax | 0,0 | 0,4 | 0,0 | |
| Cash and cash equivalents | 5,2 | 9,4 | 4,5 | |
| CURRENT ASSETS | 31,7 | 36,2 | -12,3 | 35,0 |
| ASSETS | 40,3 | 44,7 | -9,8 | 43,3 |
| EQUITY AND LIABILITIES | ||||
| EQUITY | ||||
| Share capital | 15,0 | 15,0 | 15,0 | |
| Treasury shares | -2,5 | -2,1 | -2,5 | |
| Other reserves | 19,8 | 21,9 | 19,8 | |
| Translation differences | 1,4 | 1,6 | 2,0 | |
| Retained earnings | -15,2 | -12,6 | -13,9 | |
| Equity attributable to equity holders of the parent | 18,6 | 23,8 | 20,4 | |
| Equity attributable to non-controlling interests | 0,2 | 0,3 | 0,2 | |
| EQUITY | 18,8 | 24,1 | -22,1 | 20,7 |
| NON-CURRENT LIABILITIES | ||||
| Deferred tax liabilities | 0,0 | 0,0 | 0,0 | |
| Interest-bearing liabilities | 1,6 | 3,1 | 1,5 | |
| NON-CURRENT LIABILITIES | 1,6 | 3,1 | -47,3 | 1,5 |
| CURRENT LIABILITIES | ||||
| Interest-bearing liabilities | 3,0 | 3,2 | 0,6 | |
| Trade payables and other liabilities | 16,8 | 13,9 | 19,7 | |
| Tax liabilities | 0,0 | 0,0 | 0,0 | |
| Provisions | 0,1 | 0,3 | 0,8 | |
| CURRENT LIABILITIES | 19,9 | 17,5 | 21,1 | |
| LIABILITIES | 21,5 | 20,6 | 22,6 | |
| TOTAL EQUITY AND LIABILITIES | 40,3 | 44,7 | -9,8 | 43,3 |
| GROUP KEY FIGURES, EUR million | Nov./12- | Nov./11- | Nov./11- |
| Jan./13 | Jan./ 12 | Oct./12 | |
| 3 months | 3 months | 12 months | |
| Earnings per share, basic,eur | -0,03 | -0,03 | -0,06 |
| Earnings per share, diluted, eur | -0,03 | -0,03 | -0,06 |
| Equity per share, eur | 0,48 | 0,60 | 0,52 |
| Solvency ratio,% | 46,6 | 54,0 | 47,7 |
| Return on equity-%(ROE) | -26,7 | -17,5 | -10,5 |
| Return on investment-%(ROI) | -22,6 | -14,5 | -9,9 |
| Gearing, % | -2,9 | -13,0 | -11,3 |
| Net interest-bearing liabilities | -0,6 | -3,1 | -2,3 |
| Investments (intangible and tangible assets) | 0,7 | 0,7 | 1,8 |
| as percentage of net sales | 5,2 | 4,7 | 2,4 |
| Average personnel | 788 | 808 | 888 |
| CONSOLIDATED STATEMENT OF CASH FLOWS | Nov./12- | Nov./11- | change | Nov./11- |
| EUR million | Jan. /13 | Jan./12 | % | Oct./12 |
| Cash flows from operating activities | ||||
| Cash receipts from customers | 20,1 | 21,8 | 83,9 | |
| Cash paid to suppliers and employees | -20,8 | -21,6 | -81,3 | |
| Cash generated from operations | -0,7 | 0,3 | 2,7 | |
| Interest paid | 0,0 | 0,0 | -0,3 | |
| Interest received | 0,0 | 0,0 | 0,0 | |
| Other financial items | -0,1 | -0,4 | 0,5 | |
| Income taxes paid | 0,0 | 0,0 | -0,2 | |
| Net cash from operating activities (A) | -0,8 | -0,1 | 549,4 | 2,6 |
| Cash flows from investing activities | ||||
| Purchase of tangible and intangible assets | -0,3 | -0,7 | -1,7 | |
| Proceeds from sale of tangible and intangible assets | 0,0 | 0,0 | 0,2 | |
| Disposal of associated companies | 0,0 | 0,0 | 0,0 | |
| Dividend received and repayment of capital | 0,0 | 0,0 | 0,0 | |
| Net cash used in investing activities (B) | -0,3 | -0,7 | -59,7 | -1,6 |
| Cash flows from financing activities | ||||
| Capital investment by the minority | 0,0 | 0,0 | 0,0 | |
| Purchase of treasury shares | 0,0 | 0,0 | -0,5 | |
| Proceeds from short-term borrowings | 2,4 | 0,0 | 1,8 | |
| Repayment of short-term borrowings | 0,0 | -1,1 | -5,5 | |
| Proceeds from long-term borrowings | 0,0 | 0,0 | 0,0 | |
| Repayment of long-term borrowings | -0,3 | -0,3 | -1,7 | |
| Financial leasing repayment | 0,0 | 0,0 | -0,2 | |
| Distribution of assets from invested unrestricted equity | 0,0 | 0,0 | -2,1 | |
| Net cash used in financing activities (C) | 2,1 | -1,3 | -8,1 | |
| Net increase/decrease in cash and cash | ||||
| equivalents (A+B+C) | 1,1 | -2,1 | -7,1 | |
| Cash and cash equivalents at beginning of period on Nov.1 | 4,5 | 11,2 | 11,2 | |
| Net increase/decrease in cash and cash equivalents | 1,1 | -2,1 | -7,1 | |
| Effects of exchange rate fluctuations on cash held | -0,4 | 0,3 | 0,4 | |
| Cash and cash equivalents at end of period on Jan. 31 | 5,2 | 9,4 | 4,5 | |
| GROUP CONTINGENT LIABILITIES | Jan. 31, | Jan. 31, | Oct. 31, | |
| EUR million | 2013 | 2012 | 2012 | |
| Security and contingent liabilities | ||||
| For others | ||||
| Other contingent liabilities | 0,1 | 0,1 | 0,1 | |
| Operating lease commitments | ||||
| Group as lessee | ||||
| Non-cancellable minimum operating lease | ||||
| payments: | ||||
| Less than 1 year | 1,2 | 1,1 | 0,7 | |
| 1-5 years | 0,4 | 0,6 | 0,5 | |
| Fair values of derivate financial instruments | ||||
| Currency derivatives, not hedge | ||||
| Option contract | ||||
| Nominal amount | 0,7 | 5,4 | 0,8 | |
| Negative fair value | 0,0 | 0,0 | 0,0 | |
| THE FOLLOWING TRANSACTIONS WERE | Jan. 31, | Jan. 31, | Oct. 31, | |
| CARRIED OUT WITH RELATED PARTIES: | 2013 | 2012 | 2012 | |
| EUR million | ||||
| Associated companies | ||||
| Purchases | 0,0 | 0,0 | 0,0 | |
| Liabilities | 0,0 | 0,0 | 0,0 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A Share capital
B Treasury shares
C Unrestricted equity reserve
D Other reserves
E Translation differences
F Retained earnings
G Equity holders of the parent
H Non-controlling interests
I Total
| EUR million | A | B | C | D | E | F | G | H | I |
| Equity | 15,0 | -2,1 | 20,9 | 1,0 | 0,6 | -11,6 | 23,8 | 0,3 | 24,1 |
| Nov.1, 2011 | |||||||||
| Comprehensive income | 0,0 | 0,0 | 0,0 | 0,0 | 1,0 | -1,0 | 0,0 | 0,0 | 0,0 |
| Capital invest by the minority | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 |
| Equity | 15,0 | -2,1 | 20,9 | 1,0 | 1,6 | -12,6 | 23,8 | 0,3 | 24,1 |
| January 31, 2012 | |||||||||
| EUR million | A | B | C | D | E | F | G | H | I |
| Equity | 15,0 | -2,5 | 18,8 | 1,0 | 2,0 | -13,9 | 20,4 | 0,2 | 20,7 |
| Nov.1, 2012 | |||||||||
| Comprehensive income | 0,0 | 0,0 | 0,0 | 0,0 | -0,6 | -1,3 | -1,9 | 0,0 | -1,9 |
| Capital invest by the minority | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 |
| Equity | 15,0 | -2,5 | 18,8 | 1,0 | 1,4 | -15,2 | 18,6 | 0,2 | 18,8 |
| January 31, 2013 |
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CALCULATION OF KEY FIGURES AND RATIOS |
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| Return on investment (ROI), % | = |
Profit before taxes+interest and other financing expenses / (Equity + interest-bearing liabilities, average ) |
x 100 | |
| Return on Equity (ROE), % | = | Profit/loss for the period / Equity (average ) | x 100 | |
| Current ratio | = | Current assets / Current liabilities | ||
| Solvency ratio, % | = | Equity / (Total assets - advance payments received - own shares*) | x 100 | |
| Net interest-bearing liabilities | = | Interest-bearing liabilities - financial assets at fair value through profit or loss - cash and cash equivalents | ||
| Gearing, % | = | Net interest-bearing liabilities / Equity | x 100 | |
| Earnings per share | = |
Profit or loss attributable to ordinary equity holders of the parent entity/ The weighted average number of ordinary shares outstanding |
||
| Earnings per share (dil) |
Profit or loss attributable to ordinary equity holders of the parent entity / The weighted average number of diluted shares outstanding |
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| Dividend per share | = | Dividend for the financial year / (Number of shares - own shares*) | ||
| Dividend payout ratio, % | = | Dividend per share / Earnings per share | x 100 | |
| Effective dividend yield, % | = | Dividend per share /Adjusted share price at balance sheet date | x 100 | |
| Equity per share | = | Equity - own shares* /Number of shares at balance sheet date | ||
| P/E-ratio | = | Adjusted share price at balance sheet date / Earnings per share | ||
| Market capitalization = | = | Adjusted share price at balance sheet date x outstanding number of shares at balance sheet date | ||
| Average personnel | = | The average number of employees at the end of each calendar month during the accounting period | ||
| All share-specific figures are based on the issue-adjusted number of shares. | ||||
|
Equity is the equity owned by the holders of the parent company’s shares. Profit for the period is the fiscal period profit attributable to equity holders of the parent. * There were own shares held by company January 31, 2013. |
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EFORE PLC
Board of Directors
For further information please contact Mr.Vesa Vähämöttönen, President and CEO, on March 5, 2013 at 10 – 11 a.m., tel. +358 9 4784 6312
Efore Plc will hold a news conference regarding the report for analysts and media on March 5, 2013 at 11 a.m. in Helsinki World Trade Center, address Aleksanterinkatu 17.
DISTRIBUTION Nasdaq OMX Helsinki Oy
Principal media
Efore Group
Efore Group is an international company which develops and produces demanding power products. Efore’s head office is based in Finland and its production unit is located in China. Efore is present also in Sweden. In the fiscal year ending in October 2012, consolidated net sales totaled EUR 78,1 million and the Group’s personnel averaged 888. The company's share is quoted on the Nasdaq OMX Helsinki Ltd.
www.efore.com
Vesa Vähämöttönen, President and CEO, tel. +358 9 4784 6312