Tieto Corporation STOCK EXCHANGE RELEASE 6 June 2014, 10.20 am EET
Following negotiations, Tieto, the Finnish National Police Board and the Finnish ICT Agency Haltik have together made the decision to terminate the agreement on inter-government IT system project Vitja.
“We're pleased to note that the project could be reorganized in a positive spirit. The functionality requirements were growing during this fixed-priced project and as a result, the need for tailoring increased substantially. The decision now made was the best solution for us as well. Experts from Tieto will continue to work on the Vitja project. We hope that they can carry on with their work in peace to ensure the successful completion of the project,” says Satu Kiiskinen, Executive Vice President.
The parties have mutually agreed that Tieto pays a one-time fee of EUR 7.5 million to the Finnish National Police Board. In addition to reservations reported earlier, the company will book a loss of EUR 3 million in the second quarter. Cash flow effect of EUR 7.5 million will materialize in the third quarter. The agreement will not affect the company’s full-year outlook for 2014.
For further information, please contact:
Lasse Heinonen, CFO, tel. +358 2072 66329, +358 50 393 4950, lasse.heinonen (at) tieto.com
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Tieto is the largest Nordic IT services company providing full life-cycle services for both the private and public sectors and product development services in the field of communications and embedded technologies. The company has global presence through its product development business and global delivery centres. Tieto is committed to developing enterprises and society through IT by realizing new opportunities in customers’ business transformation. At Tieto, we believe in professional development and results.
Founded 1968, headquartered in Helsinki, Finland and with approximately 14 000 experts, the company operates in over 20 countries with net sales of approximately EUR 1.6 billion. Tieto’s shares are listed on NASDAQ OMX in Helsinki and Stockholm. Please visit www.tieto.com for more information.