Interim Report of Comptel Corporation 1 January - 30 June 2014

Comptel Corporation          Stock Exchange Release 29 July 2014 at 8:00 am

INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 30 JUNE 2014

Strong new business growth in Q2.New business revenue grew by 17% compared to previous year Q2.

Key figures for the second quarter:

• Net sales EUR 20.6 million (Q2 2013: 20.7), change -0.3%
• Operating result EUR 1.2 million (1.3), 5.7% of net sales
• Earnings per share EUR 0.01 (0.00)
• Order backlog EUR 42.8 million (41.9), change 2.1%
    

Key figures for the first half:

• Net sales EUR 38.6 million (H1 2013: 41.8), change -7.7%
• Operating result EUR 2.1 million (2.3), 5.5% of net sales
• Earnings per share EUR 0.01 (-0.00)

Comptel’s operating result for 2014 is expected to be EUR 5-10 million. The 2014 revenue is expected to remain at the 2013 level while the new solutions are expected to grow from Q2 onwards.

Juhani Hintikka, President and CEO:

”In the first half of the year we have won 5 new customers compared to 4 in total in the previous year. We have also signed several significant new deals with existing customers. While market conditions continue to be challenging, especially in Europe, in this quarter we made some progress in Europe. In the first half Latin America has been very challenging and net sales have decreased from last year.

Our new business area grew in the second quarter, especially the order intake.

Our investments into new business areas, according to our strategy, are showing positive results in this quarter with the new business growth. Going forward we are also increasing our focus and investment into our marketing to sharpen our story and demand creation.

During the second quarter we secured 6 significant orders, valued over EUR 500,000.” 

Business Review for the Second Quarter and the First Half of 2014

In the second quarter, Comptel’s net sales decreased by 0.3 per cent from the previous year and were EUR 20.6 million (20.7). In the first half, net sales decreased by 7.7 per cent from the previous year and were EUR 38.6 million (41.8)

In the second quarter, the operating result was EUR 1.2 million (1.3), which corresponds to 5.7 per cent of net sales (6.2).

The operating result for the first half was EUR 2.1 million (2.3), which correspond to 5.5 per cent of net sales (5.6).

In the first half of the year, profit before taxes was EUR 1.5 million (1.1) and net profit was EUR 0.8 million (-0.4). Earnings per share for the period under review were EUR 0.01 (-0.00).

Tax expense for the first half of the year was EUR 0.7 million (1.6), including EUR 0.4 million of withholding taxes.

The Group’s order backlog increased from the previous year and was EUR 42.8 million (41.9) at the end of the period.

Business areas

  

Net sales, EUR million	4-6 2014	4-6 2013	Change %	1-6 2014	1-6 2013	Change %	1-12 2013
Europe	8.7	9.3	-6.4	15.5	17.6	-12.2	33.1
Asia Pacific	6.3	5.6	11.6	12.2	11.3	8.2	20.9
Middle East and Africa	3.8	3.7	2.0	6.9	7.2	-4.1	16.3
Americas	1.9	2.1	-9.5	4.0	5.7	-29.5	12.3
Total	20.6	20.7	-0.3	38.6	41.8	-7.7	82.7
Operating result, EUR million
Europe	4.4	5.1	-14.0	7.3	8.3	-11.6	15.6
Asia Pacific	3.8	2.5	52.1	7.6	5.2	44.7	10.1
Middle East and Africa	1.5	1.0	57.6	2.9	2.0	43.1	6.7
Americas	0.9	0.6	59.8	1.8	2.9	-38.4	7.0
Unallocated costs	-9.4	-7.9	-20.0	-17.5	-16.1	-8.2	-32.1
Total	1.2	1.3	-8.5	2.1	2.3	-8.3	7.3
Operating result, % of net sales
Europe	51.0	55.5	-	47.1	47.1	-	47.3
Asia Pacific	59.8	43.9	-	62.6	46.5	-	48.0
Middle East and Africa	40.0	25.9	-	42.0	28.2	-	40.8
Americas	49.4	28.0	-	44.4	50.9	-	56.9
Total	5.7	6.2	-	5.5	5.6	-	8.8

In the second quarter, net sales grew in Asia Pacific and Middle East. In the first half, net sales increased in Asia Pacific. The proportional profitability improved in all regions, except Europe.

In January - June, Comptel received 9 significant orders (H1 2013: 12): 5 Comptel Control & Charge,1 Comptel Provisioning and Activation, 1 Comptel Fulfillment and 2 Comptel Managed Services orders. As significant orders Comptel reports sold projects and licenses with a value of EUR 500,000 at the minimum.

 

Net sales breakdown, EUR million	4-6 2014	4-6 2013	Change %	1-6 2014	1-6 2013	Change %	1-12 2013
Project & License business	12.3	11.7	5.2	21.4	23.9	-10.5	47.1
Recurring  business	8.3	9.0	-7.8	17.2	17.9	-3.9	35.6
Total	20.6	20.7	-0.3	38.6	41.8	-7.7	82.7

Project & License business declined in the first half of the year due to lower business level in Q1 while recurring business slightly declined in the first half of the year.

  

Net sales breakdown, EUR million	4-6 2014	4-6 2013	Change %	1-6 2014	1-6 2013	Change %	1-12 2013
New business	5.3	4.6	17.3	8.7	10.0	-12.4	19.2
Current business	15.2	16.1	-5.3	29.8	31.8	-6.2	63.5
Total	20.6	20.7	-0.3	38.6	41.8	-7.7	82.7

  

New business net sales grew by 17% in Q2 compared to previous year.

Financial Position
  

EUR million	30 Jun 2014	31 Dec 2013	Change %	30 Jun 2013	Change %
Statement of financial position total	58.9	67.9	-13.4	65.0	-9.5
Liquid assets	2.9	6.5	-56.4	4.5	-37.0
Trade receivables, gross	24.1	23.7	1.5	25.6	-5.9
Bad debt provision	-0.8	-1.0	-25.5	-1.2	-37.5
Trade receivables, net	23.3	22.7	2.7	24.4	-4.4
Accrued income	7.6	9.4	-18.9	11.1	-31.0
Deferred income related to partial debiting	2.9	1.9	54.7	3.2	-7.0
Interest-bearing debt	4.6	8.8	47.3	10.9	-57.7
Equity ratio, per cent	60,7	50.5	9.6	48.5	14.1

The statement of financial position total was EUR 58.9 million. Operating cash flow was      EUR -4.5 million (1.2) in the second quarter and EUR 2.7 million (1.3) during the first half.

The trade receivables were EUR 23.3 million (24.4) at the end of the period. The accrued income was EUR 7.6 million (11.1). The deferred income related to partial debiting was EUR 2.9 million (3.2).

Comptel has a 17 million credit facility arrangement, of which 4 million is in use. This loan is out of the term loan facility, there is no outstanding loan out of total 13 million revolving credit facility at the quarter end. The credit facility arrangement is valid until January 2016.

The equity ratio was 60.7 per cent (48.5) and the gearing ratio was 6.1 per cent (24.4).

Research and Development (R&D)
 

 

EUR million	4-6 2014	4-6 2013	Change  %	1-6 2014	1-6 2013	Change %	1-12 2013
Direct R&D expenditure	3.8	4.4	-14.1	7.7	8.6	-10.6	17.8
Capitalisation of R&D expenditure according to IAS 38	-1.0	-1.7	-40.1	-2.2	-2.8	-22.6	-5.5
R&D depreciation and impairment charges	1.6	1.0	54.6	2.8	1.9	44.2	4.2
R&D expenditure, net	4.4	3.7	17.0	8.3	7.7	7.5	16.5
Direct R&D expenditure, % of net sales	18.5	21.4	-	20.0	20.6	-	21.5

   

Direct R&D expenditure represented 20.0 per cent (20.6) of net sales in the period under review.

Comptel’s R&D expenditure was mainly targeted at the service fulfillment automation of telecom operators and to the management and real-time analysis of rapidly increasing data traffic. Comptel seeks global market leadership in these areas where key business challenges of operators and service providers will be solved. In addition, the company is developing an integrated software platform which will enable a cost-efficient and solution-based R&D.

In 2014, the company focuses on developing its offering within the Comptel Fulfillment, Comptel Policy & Charging Control and advanced analytics product areas. Three major software releases were launched in these respective product areas during the first half of the year.

 
Investments
   

EUR million	4-6 2014	4-6 2013	Change  %	1-6 2014	1-6 2013	Change %	2013
Gross investments in property, plant and equipment and intangible assets	0.0	0.2	-90.6	0.3	0.3	-25.4	0.6

  
The investments comprised of devices, software and furnishings. The investments were funded through liquid assets and cash flow from operations.

Personnel
  

 

	30 Jun 2014	30 Jun 2013	Change %	31 Dec 2013
Number of employees at the end of period	661	681	-2.9	690

  

	1-6 2014	1-6 2013	Change  %	1-12 2013
Average number of personnel during the period	673	683	-1.7	684

 

The number of employees decreased slightly. In April - June, personnel expenses were 48.8 per cent of net sales (48.4). In the first half, the personnel expenses were 48.7 per cent of net sales (51.2).

At the end of the period, 30.4 per cent (31.3) of the personnel were located in Finland, 28.6 per cent (26.7) in Malaysia, 11.6 per cent (10.9) in Bulgaria, 7.1 per cent (4.1) in India, 3.3 per cent (7.9) in the United Arab Emirates, 2.7 per cent (2.8) in Norway, 2.4 per cent (6.3) in the United Kingdom, 13.9 per cent (10.0) in other countries where Comptel operates.

Comptel share

Closing share price of the period was EUR 0.62 (0.45). Comptel’s market value at the end of the period was EUR 66.6 million (48.1).

   

Comptel share	4-6 2014	4-6 2013	Change %	1-6 2014	1-6 2013	Change %	1-12 2013
Shares traded, million	3.6	3.4	5.9	16.9	7.7	119.5	18.4
Shares traded, EUR million	2.2	1.5	46.7	9.2	3.2	187.5	8.7
Highest price, EUR	0.70	0.51	37.2	0.70	0.51	37.2	0.59
Lowest price, EUR	0.53	0.39	35.9	0.48	0.38	26.3	0.38

 

Of Comptel’s outstanding shares, 3.4 per cent (7.5) were nominee registered or held by foreign shareholders at the end of the period.
 

During the period, Comptel Corporation allotted gratuitously 121,480 shares to the members of the Board of Directors as part of their annual compensation and 39,500 shares to the President and CEO of the company according to the terms and conditions of the 2011 share-based incentive plan.

The company held 239 of its own shares at the end of the period, which is 0.0 per cent of the total number of its shares. The total counter-book value of the shares held by the company was EUR 148.

2 140 000 share options were distributed during the review period based on Stock Option Incentive Plan 2014.

Corporate Governance

The Annual General Meeting of Comptel Corporation was held on 12 of March 2014.

The resolutions of the Annual General Meeting as well as the minutes of the Annual General Meeting can be found at company’s web page www.comptel.com. A separate stock exchange release about the resolutions of the Annual General Meeting including authorisations given to the Board of Directors was issued on 12 of March 2014.

The AGM authorised the Board of Directors to decide on share issues amounting to a maximum of 21,400,000 new shares and/or special rights entitling to shares and on repurchase or conveying of the company's own shares up to a maximum number of 10,700,000 shares. The authorisations are valid until 30 June 2015. However, the authorisation to implement the company's share-based incentive programs is valid until five years from the AGM resolution.

Stock Option Incentive Plan 2014

Based on authorisation given to the Board of Directors by the Annual General Meeting held on 20 of March 2013, the Board of Directors resolved 5 of February 2014 on a new stock option incentive plan. A maximum total of 4,200,000 options will be granted and they entitle their holders to subscribe to a maximum of 4,200,000 new or existing Company's own share. The new incentive plan is to replace the existing incentive plan from the year 2012.

Of the stock options, 2,200,000 are to be marked with the symbol 2014A, 1,000,000 are to be marked with the symbol 2014B and 1,000,000 are to be marked with the symbol 2014C. The share subscription price stock option 2014A is EUR 0.54 per share, which corresponds to the trade volume weighted average quotation of the share on the NASDAQ OMX Helsinki Ltd during 15 of February - 15 of March 2014.The subscription price for options 2014B and 2014C is defined as the weighted average trade price of the Company’s stock in NASDAQ OMX Helsinki as follows: for the options 2014B between 15 of February  –15 of March 2015 and for the options 2014C 15 of February –15 March 2016. 

The subscription periods for the shares are as follows: for options 2014A 1 of February 2016 – 31 of January 2018; for options 2014B 1 of February 2017 - 31 of January, 2019 and for options 2014C 1 of February 2018 – 31 of January 2020.

Pursuant to the stock option subscriptions, the number of shares can increase by a maximum of 4,200,000 new shares.

Full information on the stock option incentive plan can be found at company’s web page www.comptel.com. A separate stock exchange release about the stock option plan has been issued on 5 of February 2014.

Events after the Reporting Period

Comptel received a significant order from Saudi-Arabia. A separate stock exchange release was issued on 9 of July 2014.

  

Near-term Risks and Uncertainties

Comptel develops dynamic end-to-end solutions for leading operators globally in the telecom field. This requires Comptel to understand correctly the trends taking place in its business environment and the needs of its customers and resellers by each region. Failure to identify market conditions, address customers’ needs and develop its products in a timely way may significantly undermine the growth of Comptel’s business and its profitability.

Characteristics to Comptel’s field of industry are significant quarterly variations of net sales and profit, which are related to customers’ purchasing behaviour and the timing of major single deals.

Comptel’s business consists of deliveries of large productised IT system and the value of a single project may be several million euros. Therefore, the risk or credit risk associated with a single project or an individual customer may be significant. Furthermore, some of Comptel’s customers operate in countries where the political or financial climate can be unstable which in part may increase credit risk.

Comptel operates globally so it is exposed to risks arising from different currency positions. Exchange rate changes between the Euro, which is the company’s reporting currency, and the US Dollar, UK Pound Sterling and Malaysian Ringgit affect the company’s net sales, expenses and net profit.

The application process to prevent Comptel’s double taxation is still pending with the Ministry of Finance in Finland. However, the process between the states is very slow and the timing of a change is hard to forecast. The interpretation of tax treaties may result in different views between the countries in question. This could mean that the double taxation will prevail. Comptel has also applications for return of withholding taxes in other countries but they are subject to local legal processes, which take time to get completed.

The risks and uncertainties of Comptel are described more in detail in the company’s financial statements and the Board of Directors’ report for 2013.

Outlook
  

Comptel’s operating result for 2014 is expected to be EUR 5-10 million. The 2014 revenue is expected to remain at the 2013 level while the new solutions are expected to grow from Q2 onwards.

Characteristically a significant part of Comptel’s operating profit and net sales is generated in the second half of the year.


TABLE PART

The interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU. The accounting policies and methods of computation adopted in the financial statements are consistent with those of the annual financial statements for the year ended 2013.

All figures in the financial report have been rounded and consequently the sum of the individual figures can deviate from the sum figure. The interim report is unaudited. 
  

 

Consolidated Statement of Comprehensive Income (EUR 1,000)	1 Jan – 30 Jun 2014	1 Jan – 30 Jun 2013	1 Apr – 30 Jun 2014	1 Apr – 30 Jun 2013
Net sales	38,595	41,803	20,572	20,632
Other operating income	306	4	-7	3
Materials and services	-2,099	-2,126	-1,021	-1,012
Employee benefits	-18,798	-21,398	-10,044	-9,996
Depreciation, amortisation and impairment charges	-3,162	-2,715	-1,658	-1,460
Other operating expenses	-12,708	-13,241	-6,666	-6,883
	-36,767	-39,480	-19,389	-19,351
Operating profit/loss	2,134	2,327	1,176	1,285
Financial income	543	200	-58	-3
Financial expenses	-1,142	-1,384	-356	-229
Profit/loss before income taxes	1,536	1,142	761	1,052
Income taxes	-720	-1,579	-96	-876
Profit/loss for the period	816	-437	665	176
Other comprehensive income:
Other comprehensive income to be reclassified to profit or loss in subsequent periods
Translation differences	313	-319	224	-219
Cash flow hedges	-	-	-	-
Income tax relating to components of other comprehensive income	-	-	-	-
Total other comprehensive income	313	-319	224	-219
Total comprehensive income for the period	1,129	-755	889	-42
Profit/loss attributable to:
Equity holders of the parent company	816	-437	665	176
Total comprehensive income attributable to:
Equity holders of the parent company	1,129	-755	889	-42
Shareholders of the parent company:
Earnings per share, EUR	0.01	-0.00	0.01	-0.00
Earnings per share, diluted, EUR	0.01	-0.00	0.01	-0.00

 

 

Consolidated Statement of Financial Position (EUR 1,000)	30 Jun 2014	31 Dec 2013
Assets
Non-current assets
Goodwill	2,646	2,646
Other intangible assets	13,577	14,174
Tangible assets	1,547	1,629
Investments in associates	661	661
Available-for-sale financial assets	87	87
Deferred tax assets	5,129	4,358
Other non-current receivables	517	500
	24,164	24,055
Current assets
Trade and other current receivables	31,844	37,346
Cash and cash equivalents	2,850	6,542
	34,694	43,889
Total assets	58,858	67,944
Equity and liabilities
Equity attributable to equity holders of the parent company
Share capital	2,141	2,141
Fund of invested non-restricted equity	401	401
Translation differences	-906	-1,219
Retained earnings	27,258	27,600
Total equity	28,894	28,924
Non-current liabilities
Deferred tax liabilities	2,709	2,983
Non-current financial liabilities	2,346	3,483
	5,055	6,466
Current liabilities
Provisions	1,729	1,939
Current financial liabilities	2,280	5,287
Trade and other current liabilities	20,902	25,329
	24,911	32,554
Total liabilities	29,964	39,020
Total equity and liabilities	58,858	67,944

  

 

Consolidated Statement of Cash Flows  (EUR 1,000)	1 Jan – 30 Jun 2014	1 Jan – 30 Jun 2013
Cash flows from operating activities
Profit/loss for the period	816	-437
Adjustments:
Non-cash transactions or items that are not part of cash flows from operating activities	3,012	3,680
Interest and other financial expenses	486	501
Interest income	-8	-8
Income taxes	740	1,579
Change in working capital:
Change in trade and other current receivables	4,736	4,351
Change in trade and other current liabilities	-4,533	-5,711
Change in provisions	135	-527
Interest and other financial expenses paid	-123	-151
Interest received	4	4
Income taxes paid and tax returns received	-1,907	-2,000
Net cash from operating activities	3,358	1,281
Cash flows from investing activities
Proceeds from sale of business operations	200	-
Investments in tangible assets	-255	-332
Investments in intangible assets	-	-10
Investments in development projects	-2,181	-2,817
Change in other non-current receivables	-5	-13
Net cash used in investing activities	-2,242	-3,173
Cash flows from financing activities
Dividends paid	-1,073	-
Acquisition of Corporation’s own shares	-	-88
Proceeds from borrowings	-	9,000
Repayment of borrowings	-4,008	-7,028
Lease payments	-84	-60
Change in other non-current liabilities	-60	-
Net cash used in financing activities	-5,226	1,824
Net change in cash and cash equivalents	-4,808	-67
Cash and cash equivalents at the beginning of the period	6,542	4,817
Cash and cash equivalents at the end of the period	2,850	4,523
Change	-3,692	-294
Effects of changes in foreign exchange rates	923	-227

 

Consolidated Statement of Changes in Equity
Equity attributable to equity holders of the parent company
EUR 1,000	Share capital	Other reserves	Translation differences	Retained earnings	Total
Equity at 31 Dec 2012	2,141	243	-636	25,208	26,956
Acquisition of Corporation’s own shares				-88	-88
Transfer of treasury shares				66	66
Share-based compensation				153	153
Total comprehensive income for the period			-319	-437	-755
Equity at 30 Jun 2013	2,141	243	-955	24,902	26,332

  

Consolidated Statement of Changes in Equity
Equity attributable to equity holders of the parent company
EUR 1,000	Share capital	Other reserves	Translation differences	Retained earnings	Total
Equity at 31 Dec 2013	2,141	401	-1,219	27,600	28,924
Dividends				-1,073	-1,073
Share-based compensation				134	134
Prior year correction *				-210	-210
Other changes				-10	-10
Total comprehensive income for the period			315	816	1,130
Equity at 30 Jun 2014	2,141	401	-905	27,258	28,895

 

*Difference in prior year receivables was corrected directly to Retained Earnings during the quarter

  

Notes

  

1. Application of new or amended standards and interpretations

Comptel has adopted the new or amended standards and interpretations, effective for the financial years beginning on or after 1 January 2014. However, those have not had an impact on the consolidated financial statements.


2. Segment information

Net sales by segment
 

 

EUR 1,000	1 Jan – 30 Jun 2014	1 Jan – 30 Jun 2013	1 Apr – 30 Jun 2014	1 Apr – 30 Jun 2013
Europe	15,458	17,610	8,664	9,255
Asia-Pacific	12,196	11,274	6,279	5,624
Middle East and Africa	6,913	7,207	3,753	3,681
Americas	4,027	5,712	1,876	2,072
Group total	38,595	41,803	20,572	20,632

Operating profit/loss by segment
  

 

EUR 1,000	1 Jan – 30 Jun 2014	1 Jan – 30 Jun 2013	1 Apr – 30 Jun 2014	1 Apr – 30 Jun 2013
Europe	7,328	8,291	4,416	5,137
Asia-Pacific	7,581	5,238	3,755	2,468
Middle East and Africa	2,905	2,031	1,502	953
Americas	1,789	2,906	926	580
Group unallocated expenses	-17,469	-16,140	-9,424	-7,854
Group operating profit/loss total	2,134	2,327	1175	1,285
Financial income and expenses	-598	-1,184	-414	-232
Group profit/loss before income taxes	1,536	1,142	760	1,052

3. Income tax

Income tax expense according to the statement of comprehensive income for the period was EUR 720 thousand (EUR 1,579 thousand in 2013). 

In 2006, the Board of Adjustment of the Tax Office for Major Corporations refused to accept the crediting of taxes withheld at source in taxation of 2004 and 2005.

The application process to prevent Comptel’s double taxation is still pending with the Ministry of Finance in Finland. However, the process between the states is very slow and the timing of a change is hard to forecast. The interpretation of tax treaties may result in different views between the countries in question. This could mean that the double taxation will prevail.

According to the Board of Adjustment’s decision currently in force, Comptel Corporation has expensed taxes withheld at source amounting to EUR 382 thousand in January - June (EUR 692 thousand).


4. Tangible assets
  

EUR 1,000	1 Jan – 30 Jun 2014	1 Jan – 30 Jun 2013
Additions	255	332
Disposals	-	-30

5. Related party transactions

The Comptel Group have a related party relationship with its associate, the Board of Directors, the Executive Board and also with people and companies under Comptel management’s influence.

Transactions which have been entered into with related parties are as follows:
 

EUR 1,000	1 Jan – 30 Jun 2014	1 Jan – 30 Jun 2013
Associate
Other operating income	-	3
Interest income	4	4

 

EUR 1,000	30 Jun 2014	31 Dec 2013
Associate
Non-current receivables	110	102
Trade receivables	-	-

  
Remuneration to key management

Key management personnel compensation includes the employee benefits of the members of the Board of Directors and the Executive Board.
 

EUR 1,000	1 Jan – 30 Jun 2014	1 Jan – 30 Jun 2013
Salaries and other short-term employee benefits	712	738
Share-based payments	183	167
Total	895	905

Guarantees and other commitments

 

EUR 1,000	30 Jun 2014	31 Dec 2013
Guarantees	31	33

 
6. Commitments

Minimum lease payments on non-cancellable office facilities and other operating leases are payable as follows:
  

 

EUR 1,000	30 Jun 2014	31 Dec 2013
Less than one year	1,851	2,312
Between one and five years	3,492	4,596
Total	5,343	6,908

The group had no material capital commitments for the purchase of tangible assets at 30 June 2014 and 30 June 2013.


7. Contingent liabilities
  

 

EUR 1,000	30 Jun 2014	31 Dec 2013
Bank guarantees	1,429	1,674
Corporate mortgages	200	200

   

EUR 1,000	30 Jun 2014	31 Dec 2013
Contingent liabilities on behalf of others
Guarantees	68	72

  
8. Key figures
  

  

Financial summary	1 Jan – 30 Jun 2014	1 Jan – 30 Jun 2013	1 Jan – 31 Dec 2013
Net sales, EUR 1,000	38,595	41,803	82,668
Net sales, change %	-7.7	4.0	0.3
Operating profit/loss, EUR 1,000	2,134	2,327	7,308
Operating profit/loss, change %	8.3	114.8	154.1
Operating profit/loss, as % of net sales	5.5	5.6	8.8
Profit/loss before taxes, EUR 1,000	1,536	1,142	5,554
Profit/loss before taxes, as % of net sales	4.0	2.7	6.7
Return on equity, %	-	-	9.3
Return on investment, %	-	-	16.1
Equity ratio, %	60.7	48.5	50.5
Gross investments in tangible and intangible assets, EUR 1,0001)	255	343	551
Gross investments in tangible and intangible assets, as % of net sales	0.7	0.8	0.7
Capitalisations according to IAS 38 to intangible assets, EUR 1,000	2,181	2,817	5,510
Research and development expenditure, EUR 1,000	7,703	8,614	17,790
Research and development expenditure, as % of net sales	20.0	20.6	21.5
Order backlog, EUR 1,000	42,778	41,883	40,756
Average number of employees during the period	673	683	684
Interest-bearing net liabilities, EUR 1,000	1,776	6,425	2,228
Gearing ratio, %	6.1	24.4	7.7

  

¹⁾  The figure does not include investments in development projects.

 

Per share data	1 Jan – 30 Jun 2014	1 Jan – 30 Jun 2013	1 Jan – 31 Dec 2013
Earnings per share (EPS), EUR	0.01	-0.00	0.02
EPS diluted, EUR	0.01	-0.00	0.02
Equity per share, EUR	0.27	0.25	0.27
Dividend per share, EUR	-	-	0.01
Dividend per earnings, %	-	-	41.2
Effective dividend yield, %	-	-	2.1
P/E ratio	-	-	19.8
Adjusted number of shares at the end of the period	107,421,270	107,054,810	107,421,270
of which the number of treasury shares	239	161,219	161,219
Outstanding shares	107,421,031	106,893,591	107,260,051
Adjusted average number of shares during the period	107,421,270	106,893,591	106,863,518
Average number of shares, dilution included	109,332,843	106,893,591	106,893,591

  9. Definition of key figures
  

  

Operating margin %	=	Operating profit/loss	x100
		Net sales
Profit margin (before income taxes) %	=	Profit/loss before taxes	x100
		Net sales
Return on equity % (ROE)	=	Profit/loss	x100
		Total equity (average during year)
Return on investment % (ROI)	=	Profit/loss before taxes + financial expenses	x100
		Total equity + interest bearing liabilities (average during the year)
Equity ratio %	=	Total equity	x100
		Statement of financial position total – advances received
Gross investments in tangible and intangible assets, as % of net sales	=	Gross investments in tangible and intangible assets	x100
		Net sales
Research and development expenditure, as % of net sales	=	Research and development expenditure	x100
		Net sales
Gearing ratio %	=	Interest-bearing liabilities – cash and cash equivalents	x100
		Total equity
Earnings per share (EPS)	=	Profit/loss for the financial year attributable to equity shareholders
		Average number of outstanding shares for the financial year
Equity per share	=	Equity attributable to the equity holders of the parent company
		Adjusted number of shares at the end of period
Dividend per share	=	Dividend
		Adjusted number of shares at the end of period
Dividend per earnings %	=	Dividend per share	x100
		Earnings per share (EPS)
Effective dividend yield %	=	Dividend per share	x100
		Share closing price at end of period
P/E ratio	=	Share closing price at end of period
		Earnings per share (EPS)

 

Schedule for Comptel’s next interim report in 2014:
 

January-September             21 October 2014

 

COMPTEL CORPORATION

Board of Directors


Additional information:
Mr Juhani Hintikka, President and CEO, tel. +358 9 700 1131
Mr Tom Jansson, CFO, tel. +358 40 700 1849


Distribution:
NASDAQ OMX Helsinki
Major media
www.comptel.com