SSH COMMUNICATIONS SECURITY CORP STOCK EXCHANGE RELEASE
FEBRUARY 4, 2009 AT 9:00 A.M.
SSH´S FINANCIAL STATEMENT BULLETIN, JANUARY 1 - DECEMBER 31, 2008
January-December
- Net sales totaled EUR 8.5 million, down by 40.0 % percent year on year (EUR
14.2 million in Q1-Q4/2007).
- Operating loss amounted to EUR -2.2 million (an operating profit of 2.2
million in Q1-Q4/2007), loss EUR -1.8 million (3.1 million).
October-December
- Net sales came to EUR 2.2 million, down by 0.6 percent on a year earlier (EUR
2.3 million in Q4/2007).
- Operating loss was EUR -0.8 million (-1.0 million) and net loss was EUR -0.7
million (-0.8 million).
In the fourth quarter, operating profit contains 0.3 million one-time costs. The
company's financial position remained healthy, with equity ratio 91.3%
(91.3%)and liquid assets at the end of the period EUR 16.5 million (EUR 22.0
million).
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| KEY FIGURES | | | | | |
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| | 10-12/ | 10-12/ | 1-12/ | 1-12/ 2007 | |
| | 2008 | 2007 | 2008 | | |
--------------------------------------------------------------------------------
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| Net sales (MEUR) | 2.2 | 2.3 | 8.5 | 14.2 | |
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| Net sales, change % | -0.6 | -20.7 | -40.0 | 58.1 | |
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| Operating profit/loss | -0.8 | -1.0 | -2.2 | 2.2 | |
| (MEUR) | | | | | |
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| % of net sales | -34.7 | -45.3 | -25.9 | 15.7 | |
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| Operating profit/loss, | -23.8 | 1767.2 | -199.2 | 262.8 | |
| change % | | | | | |
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| Profit/loss before | -0.7 | -0.8 | -1.5 | 3.1 | |
| taxes (MEUR) | | | | | |
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| % of net sales | -29.3 | -33.6 | -18.0 | 21.9 | |
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| Number of employees | 73 | 83 | 73 | 83 | |
| at period end | | | | | |
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| Earnings per share | | | -0.06 | 0.11 | |
| (EUR) | | | | | |
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| Shareholders' equity | | | 0.51 | 0.72 | |
| per share (EUR) | | | | | |
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| Return on equity, % | | | -10.2 | 16.3 | |
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| Return on investment, % | | | 7.4 | 16.9 | |
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| Liquid assets | | | 16.5 | 22.0 | |
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| Gearing (%) | | | -111.9 | -107.8 | |
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| Equity ratio (%) | | | 92.0 | 91.3 | |
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CEO's BUSINESS REVIEW
SSH Communications Security is a world-leading provider of enterprise security
solutions and end-to-end communications security. SSH Tectia security solutions
address the most critical needs of international enterprises including banking
and finance, credit card companies, retailers, automotive industry, healthcare
as well as public institutions and government agencies. The company operates in
the Americas, Europe and the Asia Pacific region.
The focus market of SSH in 2008 was internal secure file transfer and related
products, the size of which was evaluated to be ca. 100 million USD (IDC market
analysis, 2008).
Especially in the second half, the weakened global economy temporarily affected
the demand for SSH offerings and transferred many customers' investment
decisions to fiscal year 2009. SHH's offer book remained however at the planned
level, resulting to be more than twice of actualized 2008 revenues. SSH did not
lose any essential customer cases to its competitors. The operational
effectiveness of SSH requires planned improvements to increase profitability.
The Americas, the ‘Europe and Rest of the World' market area and the Asia
Pacific region accounted for 68.5 percent (81.5 percent), 22.5 percent (12.8
percent) and 9.0 percent (5.7 percent) of reported net sales, respectively.
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| SALES | | | | | | | |
| PERFORMANCE | | | | | | | |
| SSH NET SALES | | | | | | | |
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| EUR Million | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 1-12/ | 10-12/ | 1-12/ |
| | 2008 | 2008 | 2008 | 2008 | 2008 | 2007 | 2007 |
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| BY SEGMENT | | | | | | | |
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| AMER | 1,6 | 1,2 | 1,8 | 1,3 | 5,8 | 1,4 | 11,6 |
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| APAC | 0,2 | 0,2 | 0,2 | 0,2 | 0,8 | 0,2 | 0,8 |
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| EROW | 0,4 | 0,6 | 0,6 | 0,4 | 1,9 | 0,6 | 1,8 |
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| SSH Group Total | 2,2 | 2,0 | 2,5 | 1,8 | 8,5 | 2,3 | 14,2 |
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| BY OPERATION | | | | | | | |
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| License sales | 1,0 | 0,8 | 1,5 | 0,7 | 4,0 | 1,1 | 10,1 |
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| Maintenance | 1,2 | 1,1 | 1,0 | 1,1 | 4,5 | 1,1 | 4,1 |
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| Total | 2,2 | 2,0 | 2,5 | 1,8 | 8,5 | 2,3 | 14,2 |
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During the report period, SSH concluded 7 new license agreements that were worth
more than EUR 100,000. The ten largest customers accounted for 34 percent of
reported net sales, with the largest single customer accounting for
approximately 7 percent.
During the report period, SSH focused its sales and marketing efforts on large
enterprises, financial institutions, and government agencies in the USA, Europe,
and Asia, in line with its long-term strategy. The company continued also
developing its partner network in the same focus markets.
The marketing focus was on the security solutions of IBM mainframe environment
and SSH Tectia's enhanced file transfer applications for large internal
enterprise networks. The company also made further development of the
productization to provide higher value, more versatile use cases and new
features, as well as enabling easier deployment and purchasing for customers.
FUTURE OUTLOOK
SSH's vision is to be our customers' trusted business security partner with
profitable growth. The company has set its strategic objectives to have global
presence, in-depth customer intimacy, as well as innovative and high-quality
security software and services. SSH is a business-value-driven security software
company and preferred security partner in mission-critical enterprise networks
for our customers.
As part of the strategy renewal, SSH has expanded its focus market from internal
secure file transfer to managed file transfer including also secure data
transfer between enterprises. The managed file transfer market (MFT) is
estimated to be ca. 450 million USD at the moment and it is expected to grow
more than 21 percent per annum (Gartner market analysis, 2008).
The demand for our customers to develop and invest into internal data security
continues at a strong level despite of the interim pressure to investment
decisions caused by economical downturn. The large customer and maintenance base
of SSH enables strengthening of the market position by launching new products to
expanding customer market. SSH estimates growth in revenues and profitability in
2009.
NET SALES
Consolidated net sales for January-December totaled EUR 8.5 million (EUR 14.2
million), down by -40.0 % percent, year on year. Net sales for the fourth
quarter totaled EUR 2.2 million, a decrease of 0.6 % compared to the
corresponding quarter for 2007.
The majority of SSH's invoicing is U.S. dollar based. During the report period,
the U.S. dollar's average exchange rate to euro weakened approximately 7.3
percent compared to the same period a year ago. At constant currency, net sales
would have decreased -37 percent compared to the January-December period and -7
percent compared to the fourth quarter of 2007.
RESULTS AND EXPENSES
Operating loss for January-December amounted to EUR -2.2 million (Q1-Q4/2007: an
operating profit of EUR 2.2 million), with net loss totaling EUR -1.8 million (a
profit of EUR 3.1 million). Operating loss for the fourth quarter totaled EUR
-0.8 million (a loss of EUR -1.0 million), with net loss amounting to EUR -0.7
million (a loss of EUR -0.8 million).
Research and development expenses for the report period totaled EUR 4.0 million
(EUR 3.7 million), while sales and marketing expenses amounted EUR 5.0 million
(EUR 6.5 million) and administrative expenses EUR 1.9 million (EUR 1.9 million).
The result of the reporting period is influenced by a EUR 0.2 million write-off
of a deferred tax asset. In addition, reorganization in sales and management
resulted EUR 0.3 million one-off costs in the fourth quarter.
During the reporting period, SSH Communications Security KK, fully owned
subsidiary of SSH, was liquidated. The procedure incurred no material expenses
as the charges were covered by a restructuring cost recorded in the previous
financial year.
BALANCE SHEET AND FINANCIAL POSITION
The financial position of SSH remained at a healthy level during the report
period, even after a EUR 4.3 million return of capital to the shareholders. The
consolidated balance sheet total on December 31, 2008 stood at EUR 19.1 million
(EUR 25.5 million), of which liquid assets accounted for EUR 16.5 million (EUR
22.0 million), or 86.2 percent of the balance sheet total. The company's
interest bearing liabilities, EUR 0.2 million, comprised lease finance
commitments. On December 31, 2008, gearing, or the ratio of net liabilities to
shareholders' equity, was -112.8 percent (-107.8) and the equity ratio stood at
91.3 percent (91.3).
In August, permission was obtained to implement the decrease of share premium
fund, decided by the Annual Shareholders Meeting on March 27, 2008. Share
premium fund was decreased by transferring all assets from the fund to the
unrestricted equity fund.
The reported gross capital expenditure for the period totaled EUR 0.1 million
(EUR 0.1 million), plus lease financed commitments EUR 0.2 million (0.0). The
reported financial income consisted mainly of interest on fixed-term deposits.
Financial income and expenses totalled EUR 0.7 million (EUR 0.9 million).
During January-December, SSH reported a negative cash flow of EUR -2.0 million
(EUR 4,8 million) from business operations, and investments showed a positive
cash flow of EUR +6.5 million (EUR -4,8 million). Cash flow from financing
totaled EUR -4.3 million (EUR 0,0 million), mainly consisting of capital
returned to shareholders. Cash flow from operations, investments and financing
resulted in the company showing a positive total cash flow of EUR 0.2 million
(EUR 0,1 million) during the period.
CHANGE IN ACCOUNTING PRACTISE FOR RECORDING PROFITS FROM SALES (IAS8)
The accounting practice for recording of maintenance sales revenue was restated
in September 2008, with all maintenance sales revenue being now periodised.
Earlier, only significant sales items (exceeding EUR 5 000) were periodised over
the lifetime of the maintenance period. The new practice is in accordance with
IAS 8.
The change did not have material impact on net sales in January-December 2008 or
in other periods. The change, however, reduces share capital and increases
short-term liabilities. For consistency, comparison data has been restated as
well. The impact of the restate is as follows:
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| RESTATE IMPACT | | | | | |
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| (MEUR) | 1-12/ | | | | |
| | 2007 | | | | |
--------------------------------------------------------------------------------
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| Net sales | 0.1 | | | | |
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| Operating profit/loss | 0.1 | | | | |
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| Profit/loss before | 0.1 | | | | |
| taxes | | | | | |
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| Earnings per share | 0.0 | | | | |
| (EUR) | | | | | |
--------------------------------------------------------------------------------
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| Shareholders' equity | -0.4 | | | | |
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| Long-term liabilities | 0.0 | | | | |
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| Short-term liabilities | 0.4 | | | | |
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| Total liabilities and | 0.0 | | | | |
| shareholders' equity | | | | | |
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Original and restated financials are presented at the end of this report.
RESEARCH AND DEVELOPMENT
Research and development expenses for January-December totaled EUR 4.0 million
(EUR 3.7 million), the equivalent of 46.6 percent of net sales (25.9 percent).
During the report period SSH did not capitalize any research and development
expenses.
HUMAN RESOURCES AND ORGANIZATION
At the end of December, the Group had 73 employees on its payroll, down by 10
from the previous year, a decrease of 12.0 percent.
At the end of the period, 54.8 percent of the employees worked in R&D, 34.2
percent in sales and marketing, and 11.0 percent in corporate administration.
Arto Vainio was the CEO of the company until October 22, 2008. After that, CFO
Mika Peuranen acted as CEO until the Board nominated Jari Mielonen (Ms. of
Science in Economics and Business Administration) as CEO on November 17, 2008.
BOARD AND AUDITORS
The Annual General Meeting (AGM) on March 27, 2008 re-elected Tomi Laamanen,
Timo Ritakallio and Tatu Ylönen to SSH Communications Security Corp's Board of
Directors. New board members, Pyry Lautsuo and Juha Mikkonen were elected to the
board. Tomi Laamanen continues as chairman.
The AGM again elected to have PricewaterhouseCoopers Oy, authorized public
accountants, as the company's auditor, with Henrik Sormunen, authorized public
accountant, acting as the principal auditor.
SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE
The reported trading volume of SSH Communications Security Corp shares totaled
3,578,728 (valued at EUR 4,544,992). The highest quotation was EUR 1.69 and the
lowest EUR 0.66. The trade-weighted average share price for the period was EUR
1.48, and the share closed at EUR 0.70 (December 30, 2008).
During the report period, the ownership structure of the company did not change
essentially. Tatu Ylönen holds, directly and through his company, Tatu Ylönen
Oy, 52.8 percent of the company's shares, Assetman Oy holds 14.7 percent and
Tero Kivinen 5.2 percent. More information about the shareholding can be
obtained from the company´s web site.
During the report period, the Group decided to have the Japanese subsidiary SSH
Communications Security K.K. go into voluntary liquidation. SSH Communications
Security K.K is a fully owned subsidiary of SSH. This arrangement was part of
the re-structuring of company's Asian sales organization. There were no other
changes in the group structure during the report period.
SHARE CAPITAL AND BOARD AUTHORIZATIONS
The company's registered share capital on December 31, 2008 was EUR 857,513.25,
consisting of 28,583,775 shares. During the report period, SSH increased its
share capital four times, based on subscription to the new shares under SSH's
stock-option plan. In total, 750 new SSH shares were subscribed under the I/1999
stock option plan, 35,413 shares under the I/2003 stock option plan and 11,500
shares under the II/2003 stock option plan respectively. With these
subscriptions the company's share capital was increased by EUR 1,429.89.
The Annual General Meeting 27 March 2008 decided, in accordance with the
proposal made by the Board of Directors, to authorize the Board of Directors to
decide on issuing the maximum of 5,500,000 shares in one or more new share
issues or on issuing special rights to share subscription as defined in the
Finnish Companies Act Chapter 10, section 1, with or without subscription rights
to shareholders. This authorization is effective until the next Annual General
Meeting, but will expire 30 June 2009, at the latest. According to the
authorization, the Board of SSH decided upon a chargeable share issue directed
to the CEO on 16 December 2008.The said share issue deviated from the
shareholders' pre-emptive right and offered to Jari Mielonen, CEO of the
company, a subscription of in total 68,493 new shares. The subscription price is
in total 50,000 euro, i.e. approximately 73 cents (0.73000 euro) per share.
According to the said Board decision, CEO Mielonen was granted 500,000 option
rights which entitle him to subscribe to a maximum of 500,000 new SSH shares.
The share subscription price is defined for the option rights so that it
increases gradually from 1.35 euro to 1.56 euro, as defined in detail in the
option scheme terms. Respectively, the subscription periods of the shares to be
subscribed by virtue of the option rights begin in stages on 16 December 2009,
on 16 December 2010, on 16 December 2011 and on 16 December 2012, and terminate
for all option rights on 16 December 2013.
The Annual General Meeting also authorized the Board of Directors to decide on
dividend distribution and/or on distribution of assets from the invested
unrestricted equity fund. By virtue of the authorization, the distributed assets
can be a maximum of 0.15 euro per share and EUR 4,350,000 in total. The
authorization is valid until 31 December 2008. Further, the Board of Directors
was authorized to lower the subscription price of shares that can be subscribed
on the grounds of the stock option plans released by the Company between years
2000 and 2003, at an amount which equates the distribution of assets. On 2 April
2008, after the end of the report period, the Board of Directors decided to
distribute 0.15 euro per share from the invested unrestricted equity fund to the
shareholders, and to lower the subscription price of the 2000 - 2003 stock
option plans by the same amount. The date of payment was 15 April, 2008.
CORPORATE GOVERNANCE
The company complies with the corporate governance recommendations for listed
companies issued by the NASDAQ OMX Helsinki, the Central Chamber of Commerce of
Finland, and the Confederation of Finnish Industry and Employers. More
information on corporate governance is available on the company's Web site
(www.ssh.com).
DIVIDEND AND OTHER DISTRIBUTION OF ASSETS
SSH's Board of Directors will propose to the Annual General Meeting that no
dividend be distributed. It is proposed that the loss of the financial year
shall be entered to the shareholders equity in the profit/loss account. Further
the Board of Directors shall propose to the Annual General Meeting that to the
shareholders of the company would be distributed assets from the invested
non-restricted equity fund. The entire proposal of the Board of Directors on
distribution of assets will be issued as a separate announcement.
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| INCOME STATEMENT | | | | | |
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| EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ | |
| | 2008 | 2007 | 2008 | 2007 | |
--------------------------------------------------------------------------------
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| | Net sales | 2.2 | 2.3 | 8.5 | 14.2 | |
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| | Purchasing and | 0.0 | 0.0 | 0.0 | 0.0 | |
| | production costs | | | | | |
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| | Gross profit | 2.2 | 2.2 | 8.5 | 14.2 | |
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| | Other operating income | 0.0 | 0.0 | 0.2 | 0.1 | |
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| | Expenses | | | | | |
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| | Product development | -1.0 | -1.1 | -4.0 | -3.7 | |
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| | Sales and | -0.8 | -1.5 | -5.0 | -6.5 | |
| | marketing | | | | | |
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| | Administration | -1.2 | -0.5 | -1.9 | -1.9 | |
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| | | | | | | |
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| | Operating profit/loss | -0.8 | -1.0 | -2.2 | 2.2 | |
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| | | | | | | |
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| | Financial income and | 0.1 | 0.3 | 0.7 | 0.9 | |
| | expenses | | | | | |
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| | | | | | | |
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| | Profit/loss before | -0.7 | -0.8 | -1.5 | 3.1 | |
| | taxes | | | | | |
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| | Taxes | 0.0 | 0.0 | -0.3 | 0.0 | |
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| | | | | | | |
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| | Net profit/loss for the | -0.7 | -0.8 | -1.8 | 3.1 | |
| | period | | | | | |
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| EARNINGS PER SHARE | 1-12/ | 1-12/ | |
| | 2008 | 2007 | |
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| Earnings per share (EUR) | -0.06 | 0.11 | | |
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| Earnings per share, diluted (EUR) | -0.06 | 0.11 | | |
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| BALANCE SHEET | | | |
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| EUR million | 12/31/2008 | 12/31/2007 | |
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| | ASSETS | | | |
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| | Fixed and other non-current | | | |
| | assets | | | |
--------------------------------------------------------------------------------
| | Tangible assets | 0.3 | 0.1 | |
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| | Intangible assets | 0.0 | 0.1 | |
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| | Deferred tax assets | 0.0 | 0.2 | |
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| | Total fixed and other | 0.3 | 0.5 | |
| | non-current assets | | | |
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| | | | | |
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| | Inventories and current | | | |
| | assets | | | |
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| | Short-term receivables | 2.3 | 3.0 | |
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| | Short-term investments | 14.5 | 20.3 | |
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| | Cash and cash equivalents | 2.0 | 1.7 | |
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| | Total inventories and current | 18.8 | 25.1 | |
| | assets | | | |
--------------------------------------------------------------------------------
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| | Total assets | 19.1 | 25.5 | |
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| | LIABILITIES AND SHAREHOLDERS' | | | |
| | EQUITY | | | |
--------------------------------------------------------------------------------
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| | Shareholders' equity | 14.5 | 20.4 | |
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| | Long-term liabilities | | | |
--------------------------------------------------------------------------------
| | Provisions | 0.0 | 0.2 | |
--------------------------------------------------------------------------------
| | Long-term financial | 0.1 | 0.0 | |
| | liabilities | | | |
--------------------------------------------------------------------------------
| | Total long-term liabilities | 0.1 | 0.2 | |
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| | Short-term liabilities | 4.5 | 4.9 | |
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| | Total liabilities and | 19.1 | 25.5 | |
| | shareholders' equity | | | |
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| CASH FLOW STATEMENT | | | |
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| EUR million | 1-12/ | 1-12/ | |
| | 2008 | 2007 | |
--------------------------------------------------------------------------------
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| | Cash flow from business operations | -2.0 | 4.8 | |
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| | Cash flow from investments | 6.5 | -4.8 | |
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| | Cash flow from financing | -4.3 | 0.0 | |
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| | Increase(+) / decrease (-) in liquid | 0.2 | 0.1 | |
| | assets | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Liquid assets at period start | 1.7 | 1.7 | |
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| | Adjustment for translation difference | 0.0 | -0.1 | |
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| | Liquid assets at period end | 2.0 | 1.7 | |
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| STATEMENT ON CHANGES IN | | | | |
| SHAREHOLDERS' EQUITY | | | | |
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| EUR million | Share | Share | Fair | Trans-la | Unrest-ric | Total |
| | Capi-t | Premi- | value | tion | ted equity | |
| | al | um | reser- | diff. | funds and | |
| | | | ves | | retained | |
| | | | | | earnings | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | 0.9 | 11.5 | 0.1 | -0.8 | 5.8 | 17.5 |
| equity | | | | | | |
| Jan. | | | | | | |
| 1, 2007 | | | | | | |
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| Change | 0.0 | 0.0 | 0.0 | -0.2 | 3.1 | |
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| | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 0.9 | 11.5 | 0.1 | -1.0 | 8.9 | 20.4 |
| equity | | | | | | |
| Dec. | | | | | | |
| 31, 2007 | | | | | | |
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| | | | | | | |
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| Shareholders´ | 0.9 | 11.5 | 0.1 | -1.0 | 8.9 | 20.4 |
| equity | | | | | | |
| Jan. 1, 2008 | | | | | | |
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| Change | 0.0 | -11.5 | 0.0 | 0.2 | 7.3 | |
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| Net profit | | | | | -1.8 | |
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| | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 0.9 | 0.0 | 0.1 | -0.9 | 14.4 | 14.5 |
| equity | | | | | | |
| Dec. | | | | | | |
| 31, 2008 | | | | | | |
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| NET SALES BY | | | | | | |
| SEGMENT | | | | | | |
--------------------------------------------------------------------------------
| EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ | |
| | 2008 | 2007 | 2008 | 2007 | |
--------------------------------------------------------------------------------
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| AMER | 1.6 | 1.5 | 5.8 | 11.7 | |
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| APAC | 0.2 | 0.2 | 0.8 | 0.8 | |
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| EROW | 0.4 | 0.6 | 1.9 | 1.8 | |
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| SSH Group total | 2.2 | 2.4 | 8.5 | 14.3 | |
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--------------------------------------------------------------------------------
| OPERATING | | | | | | |
| PROFIT/LOSS BY | | | | | | |
| SEGMENT | | | | | | |
--------------------------------------------------------------------------------
| EUR million | 10-12/ | 10-12/ | 1-12/ | 1-12/ | |
| | 2008 | 2007 | 2008 | 2007 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AMER | 0.8 | 0.6 | 2.7 | 7.7 | |
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| APAC | -0.1 | 0.0 | 0.4 | 0.1 | |
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| EROW | 0.3 | 0.0 | 1.1 | 0.5 | |
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| Common Group | -1.8 | -1.6 | -6.4 | -6.1 | |
| expenses* | | | | | |
--------------------------------------------------------------------------------
| SSH Group total | -0.8 | -0.9 | -2.2 | 2.2 | |
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* Common Group expenses include Group administration expenses (e.g., management
and finance) and product management and R&D expenses for corporate headquarters.
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| KEY FIGURES AND RATIOS | | | |
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| | 1-12/ | 1-12/ | |
| | 2008 | 2007 | |
--------------------------------------------------------------------------------
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| Net sales (MEUR) | 8.5 | 14.2 | |
--------------------------------------------------------------------------------
| Operating profit/loss (MEUR) | -2.2 | 2.2 | |
--------------------------------------------------------------------------------
| Operating profit/loss, as % of net | -25.9 | 15.7 | |
| sales | | | |
--------------------------------------------------------------------------------
| Profit/loss before extraordinary | -1.2 | 3.1 | |
| items and taxes (MEUR) | | | |
--------------------------------------------------------------------------------
| Profit/loss before extraordinary | -14.2 | 21.9 | |
| items and taxes, as % of net sales | | | |
--------------------------------------------------------------------------------
| Profit/loss before taxes (MEUR) | -1.5 | 3.1 | |
--------------------------------------------------------------------------------
| Profit/loss before taxes, as | -18.0 | 21.9 | |
| % of net sales | | | |
--------------------------------------------------------------------------------
| Return on investment (%) | -7.4 | 16.9 | |
--------------------------------------------------------------------------------
| Return on equity (%) | -10.2 | 16.3 | |
--------------------------------------------------------------------------------
| Interest-bearing net liabilities | -16.4 | -22.0 | |
| (MEUR) | | | |
--------------------------------------------------------------------------------
| Equity ratio (%) | 91.3 | 91.3 | |
--------------------------------------------------------------------------------
| Gearing (%) | -112.8 | -107.8 | |
--------------------------------------------------------------------------------
| Gross capital expenditure (MEUR) | 0.3 | 0.1 | |
--------------------------------------------------------------------------------
| % of net sales | 3.7 | 0.7 | |
--------------------------------------------------------------------------------
| R&D expenses (MEUR) | 4.0 | 3.7 | |
--------------------------------------------------------------------------------
| % of net sales | 46.6 | 25.9 | |
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| Personnel, period average | 78 | 81 | |
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| Personnel, period end | 73 | 83 | |
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| PER-SHARE DATA | | | |
--------------------------------------------------------------------------------
| | 1-12/ 2008 | 1-12/2007 | |
| | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, undiluted | -0.06 | 0.11 | |
| (EUR) | | | |
--------------------------------------------------------------------------------
| Earnings per share, diluted (EUR) | -0.06 | 0.11 | |
--------------------------------------------------------------------------------
| Equity per share (EUR) | 0.51 | 0.72 | |
--------------------------------------------------------------------------------
| No. of shares at period end | 28 584 | 28 536 | |
| (thousands) | | | |
--------------------------------------------------------------------------------
| Share performance (EUR) | | | |
--------------------------------------------------------------------------------
| Average price | 1.48 | 1.63 | |
--------------------------------------------------------------------------------
| Low | 0.66 | 1.12 | |
--------------------------------------------------------------------------------
| High | 1.69 | 2.39 | |
--------------------------------------------------------------------------------
| Share price, period end | 0.70 | 1.61 | |
--------------------------------------------------------------------------------
| Market capitalization, period end | 20.0 | 45.9 | |
| (MEUR) | | | |
--------------------------------------------------------------------------------
| Volume of shares traded | 3.6 | 15.0 | |
| (in | | | |
| millions) | | | |
--------------------------------------------------------------------------------
| Volume of shares traded, as | 12.5 | 52.6 | |
| % of | | | |
| total | | | |
--------------------------------------------------------------------------------
| Value of shares traded, in millions | 4.5 | 24.5 | |
| of euros | | | |
--------------------------------------------------------------------------------
| Price-to-earnings ratio (P/E) | -11.2 | 14.6 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| EUR million | 12/31 | 12/31 | |
| | 2008 | 2007 | |
--------------------------------------------------------------------------------
| | 0.0 | 0.1 | |
| Rental liabilities | | | |
--------------------------------------------------------------------------------
| Leasing commitments outside | | | |
| the balance sheet | | | |
--------------------------------------------------------------------------------
| Maturing within 1 year | 0.7 | 0.7 | |
--------------------------------------------------------------------------------
| Maturing between 1 and 5 | 0.6 | 1.1 | |
| years | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
IMPACT OF THE CHANGE IN ACCOUNTING PRACTISE FOR RECORDING PROFITS FROM SALES
(IAS8)TO GROUP'S FINANCIALS PER QUARTER
--------------------------------------------------------------------------------
| 1-12/ 2007 | ORIGINAL | RESTATED VALUE | DIFFERENCE |
| (MEUR) | VALUE | | |
--------------------------------------------------------------------------------
| Net sales (MEUR) | 14.1 | 14.2 | -0.1 |
--------------------------------------------------------------------------------
| Operating profit/loss | 2.2 | 2.2 | -0.1 |
--------------------------------------------------------------------------------
| Profit/loss before taxes | 3.0 | 3.1 | -0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EUR) | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity | 20.8 | 20.4 | 0.4 |
--------------------------------------------------------------------------------
| Long-term liabilities | 0.2 | 0.2 | 0.0 |
--------------------------------------------------------------------------------
| Short-term liabilities | 4.5 | 4.9 | -0.4 |
--------------------------------------------------------------------------------
| Total liabilities and | 25.5 | 25.5 | 0.0 |
| shareholders' equity | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT ON CHANGES IN | | | | |
| SHAREHOLDERS' EQUITY | | | | |
--------------------------------------------------------------------------------
| EUR | Share | Share | Fair | Trans-la | Unrest-r | Total |
| million | Capital | Premium | value | tion | icted | |
| | | | reserves | differ-r | equity | |
| | | | | ence | funds | |
| | | | | | and | |
| | | | | | retained | |
| | | | | | earnings | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholde | 0.9 | 11.5 | 0.1 | -0.8 | 6.3 | 18.0 |
| rs' equity | | | | | | |
| 1.1.2007 | | | | | | |
--------------------------------------------------------------------------------
| Shareholde | 0.9 | 11.5 | 0.1 | -0.8 | 5.9 | 17.5 |
| rs' equity | | | | | | |
| , restated | | | | | | |
| 1.1.2007 | | | | | | |
--------------------------------------------------------------------------------
| Shareholde | 0.9 | 11.5 | 0.1 | -1.1 | 9.4 | 20.8 |
| rs' equity | | | | | | |
| 31.12.2007 | | | | | | |
--------------------------------------------------------------------------------
| Shareholde | 0.9 | 11.5 | 0.1 | -1.1 | 8.9 | 20.4 |
| rs' equity | | | | | | |
| , restated | | | | | | |
| 31.12.2007 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholde | 0.9 | 0.0 | 0.1 | -0.9 | 14.4 | 14.5 |
| rs' equity | | | | | | |
| 31.12.2008 | | | | | | |
--------------------------------------------------------------------------------
These data are based on unaudited figures.
DISCLAIMER
The content in this report is provided by SSH Communications Security Corp
("SSH") and its third party content providers for your personal information
only, and does not constitute an offer or invitation to purchase any securities.
Nor does it provide any form of advice (investment, tax, legal) amounting to
investment advice, or make any recommendations regarding particular investments
or products. SSH does not provide investment advice or recommendations to buy or
sell its shares or the shares of others. If you are interested in investing in
SSH, please contact your financial adviser for further details and information.
Past performance of SSH shares is not indicative of future results. EXCEPT AS
PROVIDED BY APPLICABLE COMPULSORY LAW SSH EXPRESSLY DISCLAIMS ALL WARRANTIES,
EXPRESSED OR IMPLIED, AS TO THE AVAILABILITY, ACCURACY OR RELIABILITY OF ANY OF
THE CONTENT PROVIDED, OR AS TO THE FITNESS OF THE INFORMATION FOR ANY PURPOSE.
FINANCIAL REPORTING
The company will hold a briefing on its interim report for equity analysts and
the media in Hotel Scandic Simonkenttä, Tapiola-cabinet, address Simonkatu 9,
00100 Helsinki on Wednesday, February 4th 2009, starting at 11:00 a.m.
SSH Communications Security Corp will release its next interim report and
financial statements for January 1-March 30, 2009 on April 22nd 2009. Further
information will be available on the company's website in due course.
Helsinki, on February 4, 2009
SSH COMMUNICATIONS SECURITY CORP
Board of Directors
Jari Mielonen
CEO
For further information, please contact:
Jari Mielonen, CEO, tel. +358 (0)20 500 7400
Mika Peuranen, CFO, tel. +358 (0)20 500 7419
Distribution:
NASDAQ OMX Helsinki
Major media
www.ssh.com
SSH'S FINANCIAL STATEMENT BULLETIN, JANUARY 1 - DECEMBER 31, 2008
| Source: SSH Communications Security Oyj
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