Comptel Corporation Stock Exchange Release 24 April 2015 at 8.00 am
INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 31 MARCH 2015
Net sales increased by 16.3% and operating result by 55.7% compared to previous year.
- Net sales EUR 21.0 (January - March 2014: 18.0), growth 16.3%
- Operating result EUR 1.5 million (1.0), growth 55.7%
- Net profit EUR 0.29 million (0.15) , growth 92.3%
- Earnings per share EUR 0.00 (0.00)
-
Order backlog EUR 55.8 million (42.2), growth 32,3%
We expect the 2015 net sales to grow compared to previous year and we expect operating profit to be in the range of 8-12%, excluding one-time charges.
Juhani Hintikka, President and CEO:
”Our net sales and profit grew significantly in Q1 and continued the trend from second half of 2014. Especially our European operations continued strong sales in Q1. Our FlowOne Fulfillment solution continued, as in last year, to be our main growth driver.
We were also awarded a new deal with a new customer in Indonesia together with our strategic partner Tech Mahindra. Strategically this was an important deal, since Indonesia is defined in our strategy as one of growth markets.
Our backlog continued to be strong with a 32.3% increase to the previous year.
In Q1 we invested in development areas as defined in our updated strategy. Despite our investments profitability continued to improve and our operating results grew 55.7% year over year.
During the first quarter we secured 3 significant orders, valued over EUR 0.5 million. A few Q1 forecasted orders were delayed to beginning of Q2”
Business Review of the First Quarter 2015
Comptel’s net sales increased in the first quarter by 16.3 per cent from the previous year, to 21.0 million (18.0). The net sales increase was due to the strong backlog at the end of the year. European sales continued with strong growth as in the second half of last year.
The operating result for the period was EUR 1.5 million (1.0), which corresponds to 7.1 per cent of net sales (5.3). The profitability improvement is all attributable to the growth in net sales.
The result before taxes was EUR 0.8 million (0.8), and the net result was EUR 0.29 million (0.15). Net profit improved by 92.3 per cent. Earnings per share for the period under review were EUR 0.00 (0.00).
The Group’s financial income/expenses were EUR -0.7 million, which is a result of US dollar long term strengthening. The tax expense for the period was EUR 0.5 million (0.6), of which EUR 0.3 million were withholding taxes, related to double taxation (0.7).
The Group’s order backlog increased from the previous year and was EUR 55.8 million (42.2) at the end of the period.
Comptel Strategy
Life is digital moments. Digital demand will be driven by “Generation Cloud” customers and enterprises interacting with millions of digital applications. The Internet of Things with billions of connected devices will further accelerate the digital demand leading to exploding data volumes. Future mobile and fixed networks will provide hyper speeds and undergo a transformation from hardware to software. Network functions will be virtualised. Mounting complexity will require orchestration of business flows and virtualised resources.
Comptel mission is to perfect the digital moments and translate them into business moments by connecting digital demand and supply.
The Comptel strategy focuses on providing solutions for digital and communications service providers in two major areas – Intelligent Data and Service Orchestration. The Intelligent Data business delivers solutions and services to customers for monetizing data and turning big data into intelligent automated actions. The Service Orchestration business area provides solutions and services for business flow orchestration and mastering the digital buying experience.
Comptel’s strategic target is to establish itself as a leading software vendor for connecting digital demand and supply.
Strategy execution is based on six strategic objectives: solutions with unique value, thought leadership, customer excellence, new markets, leverage by partners and inspired people.
Comptel´s marketing strategy strives for industry thought leadership on carefully selected themes and topics which are: Digital Buying Experience, Monetising more with less time, Orchestration of service and order flows from ground to cloud and intelligent fast data. The essence of Comptel’s thought leadership is captured in the book “Operation Nexterday” that was launched in Barcelona’s Mobile World Congress in March 2015.
Business areas
|
Net sales, EUR million |
1-3 2015 |
1-3 2014 |
Change, % |
1-12 2014 |
| Europe | 9.2 | 6.8 | 35.4 | 35.4 |
| Asia Pacific | 6.0 | 5.9 | 1.7 | 24.8 |
| Middle East and Africa | 3.3 | 3.2 | 5.3 | 16.8 |
| Americas | 2.4 | 2.2 | 11.9 | 8.8 |
| Total | 21.0 | 18.0 | 16.3 | 85.7 |
|
Operating result, EUR million |
||||
| Europe | 6.3 | 2.9 | 115.9 | 19.5 |
| Asia Pacific | 3.2 | 3.8 | -16.1 | 14.5 |
| Middle East and Africa | 0.6 | 1.4 | -58.9 | 7.3 |
| Americas | 1.3 | 0.9 | 51.4 | 4.0 |
| Unallocated costs | -9.9 | -8.0 | -22.9 | -37.0 |
| Total | 1.5 | 1.0 | 55.7 | 8.3 |
|
Operating result, % of net sales |
||||
| Europe | 68.3 | 42.9 | - | 55.3 |
| Asia Pacific | 53.3 | 64.7 | - | 58.7 |
| Middle East and Africa | 17.3 | 44.4 | - | 43.2 |
| Americas | 54.2 | 40.1 | - | 45.5 |
| Total | 7.1 | 5.3 | - | 9.7 |
The net sales grew in Europe and in Latin America. In Europe, the net sales continued the trend in the second half of 2014. In Latin America there were some improvement in net sales compared to 2014 due to increased customer activity. Relative profitability improved in Europe due to the strong sales.
In January - March, Comptel received 3 significant orders (Q1 2014: 3), one for Data Refinery and two for FlowOne Fulfillment. As significant orders Comptel reports sold projects and licenses with a minimum value of EUR 500,000.
|
Net sales breakdown, EUR million |
1-3 2015 |
1-3 2014 |
Change, % |
1-12 2014 |
| Project & License business | 12.1 | 9.1 | 32.9 | 52.1 |
| Recurring business | 8.9 | 8.9 | -0.2 | 33.6 |
| Total | 21.0 | 18.0 | 16.3 | 85.7 |
Project & License business improved year over year significantly while recurring business was on same level as the previous year.
|
Net sales breakdown, EUR million |
1-3 2015 |
1-3 2014 |
Change, % |
1-12 2014 |
| Intelligent Data | 9.1 | 9.9 | -7.8 | 39.7 |
| Service Orchestration | 11.8 | 8.1 | 45.5 | 46.0 |
| Total | 21.0 | 18.0 | 16.3 | 85.7 |
Service Orchestration is growing significantly year over year due to the strong backlog and new significant deals in Q1.
Financial Position
| EUR million | 31 March 2015 | 31 March 2014 |
Change, % |
31 Dec 2014 |
Change, % |
| Statement of financial position total | 70.4 | 60.6 | 16.3 | 77.6 | -9.3 |
| Liquid assets | 7.8 | 10.4 | -25.0 | 9.4 | -16.2 |
| Trade receivables, gross | 28.9 | 18.0 | 60.0 | 28.9 | -0.2 |
| Bad debt provision | -1.4 | -0.8 | 73.8 | -1.2 | 19.5 |
| Trade receivables, net | 27.5 | 17.2 | 59.3 | 27.7 | -1.0 |
| Accrued income | 9.6 | 7.8 | 23.2 | 10.9 | -12.3 |
| Deferred income related to partial debiting | 3.6 | 1.9 | 82.4 | 4.4 | -19.4 |
| Interest-bearing debt | 7.5 | 7.7 | -2.4 | 7.6 | -0.8 |
| Equity ratio, per cent | 60.5 | 55.4 | 9.3 | 52.4 | 15.4 |
The statement of financial position on 31 March was EUR 70.4 million (60.6), of which liquid assets amounted to EUR 7.8 million (10.4). The operating cash flow was EUR -0.6 million (7.2) in the first quarter.
The trade receivables were EUR 27.5 million (17.2) at the end of the period. The trade receivables were significantly higher compared to previous year due to high sales volumes at the end of previous year and beginning of current year. The accrued income was EUR 9.6 million (7.8). The deferred income related to partial debiting was EUR 3.6 million (1.9).
Comptel has a 16 million credit facility arrangement consisting of 3 million term-loan and a revolving credit facility of 13 million. Out of this arrangement Comptel had 3 million of the term-loan and 4 million of the revolving credit facility outstanding at the quarter end. The credit facility is valid until January 2016.
The equity ratio was 60.5 per cent (55.4) and the gearing ratio was -1.0 per cent (-9.9).
Research and Development (R&D)
| EUR million |
1-3 2015 |
1-3 2014 |
Change, % |
1-12 2014 |
| Direct R&D expenditure | 4.3 | 3.9 | 10.3 | 16.8 |
|
Capitalisation of R&D expenditure according to IAS 38 |
-1.1 | -1.1 | -7.6 | 4.7 |
| R&D depreciation and impairment charges | 1.3 | 1.2 | 10.1 | 4.9 |
| R&D expenditure, net | 4.5 | 3.9 | 15.5 | 17.0 |
| Direct R&D expenditure, % of net sales | 20.6 | 21.7 | - | 19.6 |
Direct R&D expenditure represented 20.6 per cent (21.7) of net sales.
The focus of Comptel’s R&D expenditure was in the further development of the solutions in the main product areas, Service Orchestration and Intelligent Data. Development is targeted both to secure the recurring revenue with competitive products and to win new markets by giving customers unique value with new innovation. The FlowOne Fulfillment solution is developed as a suite of orchestration elements that manage the service and business flows from ground to cloud. Data Refinery captures data-in-motion and uses embedded intelligence to refine it for automated, in-the-moment decisions and actions. Monetizer is the business policy and charging tool that allows the innovation and designing of rich communication and data service offers at the speed of business. Data Fastermind embeds artificial intelligence, prediction and machine learning capabilities into all solutions.
In these areas Comptel seeks global thought leadership in solving the business challenges of operators and digital communications service providers. Additionally Comptel has started to invest in new products around the digital buying experience
During 2015 the company will further continue to develop its current offering. Five major software releases were launched in these respective product areas during the review period.
Investments
| EUR million |
1-3 2015 |
1-3 2014 |
Change, % |
1-12 2014 |
| Gross investments in property, plant and equipment and intangible assets | 0.1 | 0.2 | -50.3 | 0.7 |
The investments comprised of devices, software and furnishings. The investments were funded through cash flow from operations.
Personnel
| 31 March 2015 | 31 March 2014 | Change, % | 31 Dec 2014 | Change, % | |
| Number of employees at the end of period | 689 | 683 | 0.9 | 660 | 4.4 |
|
1-3 2015 |
1-3 2014 |
Change, % |
1-12 2014 |
Change, % | |
| Average number of personnel during the period | 676 | 688 | -1.7 | 665 | 1.7 |
The number of employees increased slightly compared to the previous year. In the first quarter, the personnel expenses were 45.7 per cent of net sales (48.6).
At the end of the period, 29.8 per cent (28.8) of the personnel were located in Finland, 28.2 per cent (28.0) in Malaysia, 11.2 per cent (11.3) in Bulgaria, 8.0 per cent (6.9) in India, 3.2 per cent (3.2) in the United Arab Emirates, 2.6 per cent (2.8) in Norway, and 17.0 per cent (19.0) in other countries where Comptel operates.
Comptel share
The closing share price of the period was EUR 0.98 (0.53). Comptel’s market value at the end of the period was EUR 104.8 million (56.8).
| Comptel share |
1-3 2015 |
1-3 2014 |
Change, % |
1-12 2014 |
| Shares traded, million | 6.2 | 13.3 | -53.4 | 27.8 |
| Shares traded, EUR million | 5.8 | 7.0 | -17.8 | 16.5 |
| Highest price, EUR | 1.00 | 0.57 | 75.0 | 1.00 |
| Lowest price, EUR | 0.84 | 0.48 | 75.4 | 0.48 |
Of Comptel’s outstanding shares, 6.2 per cent (7.7) were nominee registered or held by foreign shareholders at the end of the period.
The company held 464,739 of its own shares at the end of the period, which is 0.15 per cent of the total number of its shares. The total counter-book value of the shares held by the company was EUR 9,262.
1,010,000 share options were distributed during the review period based on Stock Option Incentive plan 2014.
Corporate Governance
The Annual General Meeting (AGM), held on 9th of April 2015 re-elected Mr. Pertti Ervi, Mr. Hannu Vaajoensuu, Ms. Eriikka Söderström, Mr. Antti Vasara and Mr. Heikki Mäkijärvi as members of the Board of Directors. In the meeting held after the AGM, the Board of Directors elected Mr Pertti Ervi as chairman and Mr Hannu Vaajoensuu as vice chairman.
The Board decided not to set up committees.
The AGM appointed Ernst & Young Oy as the company’s auditor. Mr. Mikko Järventausta is acting as the principal auditor.
The AGM resolved that dividend of 0.02 EUR per share will be paid for 2014.
The AGM authorised the Board of Directors to decide on share issues amounting to a maximum of 21,400,000 new 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 2016. However, the authorisation to implement the company's share-based incentive programs is valid five years from the AGM resolution.
A separate stock exchange release about the authorisations given and other decisions made by the Annual General Meeting was published on 9th of April 2015.
Events after the Reporting Period
Significant orders have been received, of which separate stock exchange releases have been issued.
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 of 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 systems, and the value of a single project may be several million euros. Therefore, the 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. Due to latest decisions by the Finnish tax authorities this risk impact on corporate effective tax rate is lower.
The risks and uncertainties of Comptel are described in more detail in the company’s financial statements and the Board of Directors’ report for 2014
Outlook
We expect the 2015 net sales to grow compared to previous year and we expect operating profit to be in the range of 8-12%, excluding one-time charges.
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 2014.
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 – 31 Mar 2015 |
1 Jan – 31 Mar 2014 |
| Net sales | 20,957 | 18,023 |
| Other operating income | 3 | 314 |
| Materials and services | -1,104 | -1,078 |
| Employee benefits | -9,576 | -8,753 |
| Depreciation, amortisation and impairment charges | -1,610 | -1,504 |
| Other operating expenses | -7,177 | -6,042 |
| -19,467 | -17,378 | |
| Operating profit/loss | 1,493 | 959 |
| Financial income | 852 | 602 |
| Financial expenses | -1,550 | -786 |
| Profit/loss before income taxes | 795 | 775 |
| Income taxes | -503 | -623 |
| Profit/loss for the period | 292 | 152 |
| Other comprehensive income | ||
| Other comprehensive income to be reclassified to profit or loss in subsequent periods | ||
| Cash flow hedges | 47 | - |
| Translation differences | 721 | 89 |
| Income tax relating to components of other comprehensive income | -9 | - |
| Total other comprehensive income | 758 | 89 |
| Total comprehensive income for the period | 1,050 | 241 |
| Profit/loss attributable to: | ||
| Equity holders of the parent company | 292 | 152 |
| Total comprehensive income attributable to: | ||
| Equity holders of the parent company | 1,050 | 241 |
| Shareholders of the parent company: | ||
| Earnings per share, EUR | 0.00 | 0.00 |
| Earnings per share, diluted, EUR | 0.00 | 0.00 |
| Consolidated Statement of Financial Position (EUR 1,000) |
31 Mar 2015 |
31 Dec 2014 |
| Assets | ||
| Non-current assets | ||
| Goodwill | 2,646 | 2,646 |
| Other intangible assets | 13,110 | 13,435 |
| Tangible assets | 1,564 | 1,596 |
| Investments in associates | 673 | 673 |
| Available-for-sale financial assets | 87 | 87 |
| Deferred tax assets | 6,308 | 5,880 |
| Other non-current receivables | 628 | 613 |
| 25,016 | 24,929 | |
| Current assets | ||
| Trade and other current receivables | 37,085 | 43,043 |
| Current tax asset | 493 | 315 |
| Cash and cash equivalents | 7,833 | 9,352 |
| 45,411 | 52,710 | |
| Total assets | 70,427 | 77,638 |
| Equity and liabilities | ||
| Equity attributable to equity holders of the parent company | ||
| Share capital | 2,141 | 2,141 |
| Fund of invested non-restricted equity | 407 | 401 |
| Translation differences | 25 | -699 |
| Fair value reserve | -144 | -182 |
| Retained earnings | 31,909 | 31,685 |
| Total equity | 34,337 | 33,346 |
| Non-current liabilities | ||
| Deferred tax liabilities | 2,619 | 2,669 |
| Non-current financial liabilities | 204 | 1,257 |
| 2,823 | 3,926 | |
| Current liabilities | ||
| Provisions | 1,243 | 1,325 |
| Current financial liabilities | 7,297 | 6,305 |
| Trade and other current liabilities | 24,727 | 32,737 |
| 33,267 | 40,367 | |
| Total liabilities | 36,090 | 44,292 |
| Total equity and liabilities | 70,427 | 77,638 |
|
Consolidated Statement of Cash Flows (EUR 1,000) |
1 Jan – 31 Mar 2015 |
1 Jan – 31 Mar 2014 |
| Cash flows from operating activities | ||
| Profit/loss for the period | 292 | 152 |
| Adjustments: | ||
| Non-cash transactions or items that are not part of cash flows from operating activities | 2,347 | 1,268 |
| Interest and other financial expenses | 78 | 221 |
| Interest income | -28 | -5 |
| Income taxes | 505 | 623 |
| Change in working capital: | ||
| Change in trade and other current receivables | 6,094 | 11,116 |
| Change in trade and other current liabilities | -8,702 | -4,819 |
| Change in provisions | -110 | -171 |
| Interest and other financial expenses paid | -78 | -27 |
| Interest received | 26 | 3 |
| Income taxes paid and tax returns received | -984 | -1,180 |
| Net cash from operating activities | -561 | 7,181 |
| Cash flows from investing activities | ||
| Proceeds from sale of business operations | - | 200 |
| Investments in tangible assets | -118 | -238 |
| Investments in intangible assets | - | - |
| Investments in development projects | -1,060 | -1,147 |
| Proceeds from sale of intangible assets | 5 | 2 |
| Change in other non-current receivables | 16 | - |
| Net cash used in investing activities | -1,157 | -1,183 |
| Cash flows from financing activities | ||
| Dividends paid | - | -1,073 |
| Shares issued | 6 | |
| Proceeds from borrowings | 3,989 | - |
| Repayment of borrowings | -4,000 | -1,000 |
| Lease payments | -68 | -57 |
| Change in other non-current liabilities | - | -31 |
| Net cash used in financing activities | -75 | -2,160 |
| Net change in cash and cash equivalents | -1,793 | 3,838 |
| Cash and cash equivalents at the beginning of the period | 9,352 | 6,542 |
| Cash and cash equivalents at the end of the period | 7,833 | 10,444 |
| Change | -1,519 | 3,901 |
| Effects of changes in foreign exchange rates | 274 | 64 |
| 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 | 9 | 9 | |||
| Prior year correction * | -210 | -210 | |||
| Other changes | -3 | -3 | |||
| Total comprehensive income for the period | 89 | 152 | 241 | ||
|
Equity at 31 Mar 2014 |
2,141 | 401 | -1,130 | 26,476 | 27,888 |
| Consolidated Statement of Changes in Equity | |||||||
| Equity attributable to equity holders of the parent company | |||||||
| EUR 1,000 | Share capital | Other reserves | Translation differences | Fair value reserve | Retained earnings | Total | |
|
Equity at 31 Dec 2014 |
2,141 | 401 | -698 | -182 | 31,684 | 33,346 | |
| Shares issued | 6 | 6 | |||||
| Share-based compensation | -91 | -91 | |||||
| Other changes | 25 | 25 | |||||
| Total comprehensive income for the period | 721 | 37 | 292 | 1,050 | |||
|
Equity at 31 Mar 2015 |
2,141 | 407 | 24 | -144 | 31,909 | 34,337 | |
*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 2015. However those have not had an impact on the consolidated financial statements.
2. Segment information
Net sales by segment
| EUR 1,000 |
1 Jan – 31 Mar 2015 |
1 Jan – 31 Mar 2014 |
| Europe | 9,201 | 6,794 |
| Asia-Pacific | 6,019 | 5,917 |
| Middle East and Africa | 3,329 | 3,160 |
| Americas | 2,408 | 2,151 |
| Group total | 20,957 | 18,023 |
Operating profit/loss by segment
| EUR 1,000 |
1 Jan – 31 Mar 2015 |
1 Jan – 31 Mar 2014 |
| Europe | 6,289 | 2,913 |
| Asia-Pacific | 3,210 | 3,826 |
| Middle East and Africa | 577 | 1,403 |
| Americas | 1,306 | 863 |
| Group unallocated expenses | -9,889 | -8,045 |
| Group operating profit/loss total | 1,493 | 959 |
| Financial income and expenses | -698 | -184 |
| Group profit/loss before income taxes | 795 | 775 |
3. Income tax
Income tax expense according to the statement of comprehensive income for the period was EUR 503 thousand (EUR 623 thousand).
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 253 thousand in January - March (EUR 665 thousand).
4. Tangible assets
| EUR 1,000 |
1 Jan – 31 Mar 2015 |
1 Jan – 31 Mar 2014 |
| Additions | 118 | 238 |
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 – 31 Mar 2015 |
1 Jan – 31 Mar 2014 |
| Associate | ||
| Interest income | 2 | 2 |
| EUR 1,000 | 31 Mar 2015 | 31 Dec 2014 |
| Associate | ||
| Non-current receivables | 115 | 108 |
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 – 31 Mar 2015 | 1 Jan – 31 Mar 2014 |
| Salaries and other short-term employee benefits | 351 | 323 |
| Share-based payments | 36 | 30 |
| Total | 387 | 353 |
Guarantees and other commitments
| EUR 1,000 | 31 Mar 2015 | 31 Dec 2014 |
| Guarantees | 15 | 7 |
6. Commitments
Minimum lease payments on non-cancellable office facilities and other operating leases are payable as follows:
| EUR 1,000 | 31 Mar 2015 | 31 Dec 2014 |
| Less than one year | 2,310 | 2,428 |
| Between one and five years | 2,570 | 2,962 |
| Total | 4,879 | 5,390 |
The group had no material capital commitments for the purchase of tangible assets at 31 March 2015 and 31 March 2014.
7. Contingent liabilities
| EUR 1,000 | 31 Mar 2015 | 31 Dec 2014 |
| Bank guarantees | 3,287 | 2,881 |
| Corporate mortgages | 200 | 200 |
| EUR 1,000 | 31 Mar 2015 | 31 Dec 2014 |
| Contingent liabilities on behalf of others | ||
| Guarantees | 33 | 34 |
8. Fair values of financial assets and liabilities
|
EUR 1,000 |
Book value 31.3.2015 |
Fair value 31.3.2015 |
Book value 31.3.2014 |
Fair value 31.3.2014 |
Book value 31.12.2014 |
Fair value 31.12.2014 |
| Financial assets | ||||||
| Financial assets at fair value through profit or loss | ||||||
| Forward contracts (level 2) | 36 | 36 | 346 | 346 | 25 | 25 |
| Available-for-sale financial assets (level 3)) | 87 | 87 | 87 | 87 | 87 | 87 |
| Non-current trade receivables | 1,693 | 1,693 | 1,048 | 1,048 | 1,466 | 1,466 |
| Current trade receivables | 27,177 | 27,177 | 16,999 | 16,999 | 27,449 | 27,449 |
| Other current receivables | 680 | 680 | 523 | 523 | 4,624 | 4,624 |
| Cash and cash equivalents | 7,833 | 7,833 | 10,444 | 10,444 | 9,352 | 9,352 |
| Financial liabilities | ||||||
| Financial liabilities at fair value through profit or loss | ||||||
| Forward contracts (level 2) | 1,226 | 1,226 | - | - | 847 | 847 |
| Trade payables and other liabilities | 24,727 | 24,727 | 20,425 | 20,425 | 32,713 | 32,713 |
| Non-current loans from financial institutions | 67 | 67 | 3,111 | 3,160 | 1,078 | 1,081 |
| Non-current finance lease liabilities | 137 | 137 | 243 | 243 | 179 | 179 |
| Other non-current liabilities | - | - | 63 | 63 | - | - |
| Current loans from financial institutions | 6,984 | 7,028 | 3,992 | 4,084 | 5,984 | 6,095 |
| Current finance lease liabilities | 250 | 250 | 205 | 205 | 259 | 259 |
| Other current liabilities | 63 | 63 | 68 | 68 | 63 | 63 |
9. Key figures
| Financial summary |
1 Jan – 31 Mar 2015 |
1 Jan – 31 Mar 2014 |
| Net sales, EUR 1,000 | 20,957 | 18,023 |
| Net sales, change % | 16.3 | -14.9 |
| Operating profit/loss, EUR 1,000 | 1,493 | 959 |
| Operating profit/loss, change % | 55,7 | 8.0 |
| Operating profit/loss, as % of net sales | 7.1 | 5.3 |
| Profit/loss before taxes, EUR 1,000 | 795 | 775 |
| Profit/loss before taxes, as % of net sales | 3.8 | 4.3 |
| Return on equity, % | - | - |
| Return on investment, % | - | - |
| Equity ratio, % | 60,5 | 55.4 |
| Gross investments in tangible and intangible assets, EUR 1,0001) | 118 | 238 |
| Gross investments in tangible and intangible assets, as % of net sales | 0.6 | 1.3 |
| Capitalisations according to IAS 38 to intangible assets, EUR 1,000 | 1,060 | 1,147 |
| Research and development expenditure, EUR 1,000 | 4,307 | 3,904 |
|
Research and development expenditure, as % of net sales |
20.6 | 21.7 |
| Order backlog, EUR 1,000 | 55,798 | 42,164 |
| Average number of employees during the period | 676 | 683 |
| Interest-bearing net liabilities, EUR 1,000 | -332 | -2,762 |
| Gearing ratio, % | -1.0 | -9.9 |
1) The figure does not include investments in development projects.
| Per share data |
1 Jan – 31 Mar 2015 |
1 Jan – 31 Mar 2014 |
| Earnings per share (EPS), EUR | 0.00 | 0.00 |
| EPS diluted, EUR | 0.00 | 0.00 |
| Equity per share, EUR | 0.32 | 0.26 |
| Dividend per share, EUR | - | - |
| Dividend per earnings, % | - | - |
| Effective dividend yield, % | - | - |
| P/E ratio | - | - |
| Adjusted number of shares at the end of the period | 107,432,270 | 107,421,270 |
| of which the number of treasury shares | 464,739 | 161,219 |
| Outstanding shares | 106,967,531 | 107,260,051 |
| Adjusted average number of shares during the period | 106,966,567 | 107,260,051 |
| Average number of shares, dilution included | 107,758,737 | 107,260,051 |
10. 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 interim reports in 2015:
January-June 4 August 2015
January-September 20 October 2015
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