Aldata Solution Oyj
STOCK EXCHANGE
RELEASE
1 November 2007 at 9.00 a.m. (EET)
ALDATA SOLUTION INTERIM REPORT JANUARY - SEPTEMBER 2007
(unaudited)
Aldata in Q3 2007 (compared to Q3 2006)
The quarterly figures are prepared in accordance with the principles
of the International Financial Reporting Standards (IFRS).
- Net sales decreased by 16.4% to EUR 16.6 million (EUR 19.9
million).
- Gross profit decreased by 13.0% to EUR 14.1 million (EUR 16.2
million).
- Operating profit, EBIT, decreased to EUR -1.8 million (EUR 1.5
million)
- Profit before taxes was EUR -2.0 million (EUR 1.6 million).
- Net profit was EUR -1.9 million (EUR 0.9 million) and earnings per
share, EPS, were
-0.027 euros (0.014 EUR).
Message from CEO Bertrand Sciard:"After 2 months as the CEO of Aldata I have three clear messages
from our customers and employees to share with our shareholders.
1. Our product, services and the majority of our people are world
leading in our sector
2. The uncertainty of ownership change has caused major distraction
for all this year
3. We have significant opportunities for profitable growth to be
executed correctly
Our major assets are the quality, resources, and experience of our
people that are delivered to our customers via our products and
services. Each customer I have met has made this very clear to me and
has described the global leadership potential for our business.
2007 however has been a period of uncertainty for all as potential
ownership change has affected investment planning, customer
contracts, and employee morale. This period will now come to an end
as the benefits of Symphony Technology's confidence in Aldata, our
new management and organizational changes, and our plans for
profitable growth are communicated internally and externally and then
executed effectively in the market.
Q3 2007 results reflect a pause in the business as we analyzed the
details of our costs, assessed our opportunities, and planned the
changes to return to profitable growth. The figures show a decline in
Net Sales and a significant operating loss.
Q4 2007 will see the first stages of the execution of our plans to
streamline our processes and operations, focus on specific market
development, and lay the groundwork for profitable growth. We will
work with customers to meet existing expectations for Q4 and to
ensure stronger and longer term business in 2008 and beyond.
In order to bring Aldata back to profitability, we have today
announced a plan of actions to significantly reduce our cost base.
Details of the restructuring are presented in a separate Stock
Exchange release. Although the planned actions will negatively impact
the fourth quarter results, they will provide a solid foundation from
which we can grow the business profitably in the coming quarters and
years."
July - September 2007 financial performance
The Group's net sales were EUR 16.6 million (EUR 19.9 million), which
represents a decline of 3.3 million euros compared to third quarter
net sales in the previous year. Product sales, which include licences
for standard products, licences for customer specific developments,
and maintenance revenues, accounted for 38% (56%) of total net sales.
Consulting services accounted for 50% (36%), and third party licences
and hardware accounted for 12% (8%).
The Group's gross profit was EUR 14.1 million (EUR 16.2 million),
which represents an 85% (81%) gross margin. Operating profit, EBIT,
totalled EUR -1.8 million (EUR 1.5 million) and operating profit
excluding expenses for option plans was EUR -1.7 million (EUR 1.5
million).
Pre-tax profit was EUR -2.0 million (EUR 1.6 million), net profit was
EUR -1.9 million (EUR 0.9 million) and earnings per share, EPS, were
-0.027 euros (0.014 euros).
Research and development costs in the third quarter totalled EUR 2.4
million (EUR 3.0 million), of which EUR 0.2 million (EUR 0.2 million)
or 8% were capitalized. EUR 0.1 million (EUR 0.0 million) of
capitalized development costs were amortized.
Aldata's reported order backlog includes product and third party
product sales that will be recognized as revenues during the
following twelve months. At the end of September 2007, the order
backlog was EUR 19.4 million (EUR 19.2 million at the end of
September 2006 and EUR 17.9 million at the end of June 2007).
Business units
Net sales of the Supply Chain Management (SCM) Software business unit
were EUR 12.4 million (EUR 17.3 million). The gross profit was EUR
11.4 million (EUR 14.1 million) and the operating profit, EBIT, was
EUR -1.4 million (EUR 1.4 million).
Net sales of the In-Store Software business unit were EUR 4.2 million
(EUR 2.7 million). The gross profit was EUR 2.7 million (EUR 2.1
million) and the operating profit, EBIT, was EUR 0,3 (EUR 0.2)
million.
There were no internal sales between the Group's business segments.
Unallocated costs, the Group's shared items netted, decreased the
Group's operating profit, EBIT, by EUR 0.6 million (EUR 0.1 million).
January - September 2007 financial performance
The Group's net sales were EUR 54.1 million (EUR 63.5 million), which
represents a decline of EUR 9,4 million compared to first three
quarters net sales in the previous year. Product sales, which include
licences for standard products, licences for customer specific
developments and maintenance revenues, accounted for 41% (50%) of
total net sales. Consulting services accounted for 49% (42%) and
third party licences and hardware accounted for 10% (7%).
The Group's gross profit was EUR 44.5 million (EUR 51.3 million),
which represents a 82% (81%) gross margin. Operating profit, EBIT,
totalled EUR -5.3 million (EUR 4.3 million) and operating profit
excluding expenses for option plans was EUR -4.9 million (EUR 4.7
million).
Pre-tax profit was EUR -5.6 million (EUR 4.2 million), net profit was
EUR -5.7 million (EUR 2.2 million) and earnings per share, EPS, were
-0.083 euros (0.032 euros).
Research and development costs in the financial period totalled EUR
7.9 million (EUR 9.7 million), of which EUR 0.5 million (EUR 0.5
million) or 6 % were capitalized. EUR 0.3 million (EUR 0.1 million)
of capitalized development costs were amortized.
Taxes for the period were EUR 0.1 million (EUR 2.0 million).
Finance and investments
Cash flow from operating activities in the first three quarters of
the year was EUR -0,9 million (EUR -3.5 million) and net cash flow
was EUR 2.0 million (EUR -3.7 million).
At the end of September 2007, Aldata Group's cash, cash equivalents
and marketable securities amounted to EUR 7.7 million (EUR 5.5
million) and total assets were EUR 50.4 million (EUR 50.8 million).
The Group had interest-bearing debt EUR 3.5 million (EUR 0.0 million)
and interest-bearing net liabilities totalled EUR -3.2 million (EUR
-4.9 million). Short term receivables totalled EUR 27.4 million (EUR
31.2 million). The Group's solvency ratio was 51.0 % (58.5%), gearing
was -12.7 % (-16.7%), and shareholders' equity per share was EUR
0.369 (EUR 0.428).
The Group's capital expenditure on hardware and software purchases
amounted to EUR 1.9 million (EUR 1.2 million) in the first three
quarters of the year. A total of EUR 0.5 million (EUR 0.5 million) of
development costs were capitalized during the period.
Research and Development
Aldata's research and development costs were EUR 7.9 million (EUR 9.7
million) and made up 14.6% (15.3%) of net sales. A total of EUR 0.5
million (EUR 0.5 million) of development costs were capitalized
during the period. EUR 0.3 million (EUR 0.1 million) of capitalized
development costs were amortized.
At the end of the review period 177 (178) employees were involved in
R&D activities. This represents 29% (28%) of the Group's total
personnel. Aldata's R&D centres are located in Paris, France and in
Vantaa, Finland.
Personnel
Aldata Group employed 616 (625) persons at the end of September 2007,
and on average had 630 (609) employees during the period.
30 September.2007 30 September 2006
By business unit Persons % Persons %
SCM Software 495 80 511 82
In-Store Software 110 18 103 16
Group Administration 11 2 11 2
Total 616 100 625 100
Approximately 53% of personnel were employed by Aldata companies in
France, 15% in Finland, 12% in Germany, 6% in Sweden, 5% in the US,
4% in Slovenia, 4% in the UK and 1% in Russia.
Share performance
The highest price of the Aldata Solution Oyj share during January -
September 2007 was EUR 1.90 and the lowest price EUR 1.27. The
average price was EUR 1.60 and the closing price EUR 1.37. The
trading volume on the Helsinki Stock Exchange was EUR 68.8 million
and altogether 42.9 million shares were traded, which represents 63%
of the shares. Aldata Solution Oyj has 68.6 million shares
outstanding. The number of shares outstanding has increased by
457.900 shares during the period.
The number of shareholders was 4891 and the free float was 99.8 % of
the share capital at the end of September 2007. A total of 49.6 % of
Aldata Solution Oyj's shares were owned by foreign investors at the
end of the period.
Outlook
Aldata will in the fourth quarter 2007 implement a restructuring plan
in order to lower its cost base and streamline its organizational
structure. All operating expenses of the Company have been analyzed
carefully and multiple measures to cut costs will be implemented. The
restructuring plan includes a personnel reduction of up to 100
employees, covering all areas of the Company. The other largest item
is a significant reduction in office facilities and administrative
overheads.
The estimated financial impact of these measures is approximately EUR
6 million of non-recurring costs and provisions. These costs will
impact the financial results for the fourth quarter of 2007. The cash
impact in the fourth quarter of these costs is approximately EUR 3
million.
The impact of the restructuring process on Q4 business is difficult
to quantify exactly so the financial guidance for the last quarter is
provided as a range of results. Depending on the effect of the
restructuring process to business activity, the Company expects its
fourth quarter Net Sales to be EUR 20-23 million and operating profit
(EBIT) excluding restructuring costs to be positive. In total, the
full-year 2007 Net Sales are expected to be EUR 74-77 million and
operating loss (EBIT) including restructuring costs to be EUR 9-11
million.
Based on the plan, the net annualized cost improvement is estimated
to be approximately EUR 8 million and will have full annual impact in
2008.
Helsinki, October 31, 2007
Aldata Solution Oyj
Board of Directors
Further information:
Aldata Solution Oyj, Bertrand Sciard, President and CEO, tel. +358 10
820 8016 / Aldata Solution Oyj.
Aldata Solution Oyj, Thomas Hoyer, CFO, tel. +358 10 820 8010
Aldata will hold a press conference for the media and financial
analysts in Helsinki on 1 November, at 12.00 (EET) at the Scandic
Hotel Simonkenttä (Simonkatu 9) in the Espa cabinet on the ground
floor.
The presentation material will be published on the Group's website at
www.aldata-solution.com
Aldata in brief
Aldata Solution is one of the global leaders in supply chain software
for retail, wholesale and logistics companies. The company's
comprehensive range of Supply Chain Management and In-Store solutions
enable its more than 300 customers across 50 countries to enhance
productivity, profitability, performance and competitiveness. Aldata
is a public company quoted on the Helsinki Stock Exchange with the
identifier ALD1V. More information at: www.aldata-solution.com
Distribution:
OMX Helsinki Stock Exchange
Media
APPENDICES
1 Income Statement
2 Balance Sheet
3 Statement of Changes in Equity
4 Cash Flow
5 Contingent Liabilities
6 Key Figures
7 Segment Information
8 Quarterly Income Statement and Balance Sheet
9 Quarterly Key Figures
APPENDIX 1
INCOME STATEMENT MEUR MEUR MEUR
Jan-Sep Jan-Sep/
/2007 2006 Change % Total 2006
Net sales 54,1 63,5 -14,8 88,8
Other operating income 0,4 0,4 4,3 0,4
Operating expenses -58,8 -58,7 0,0 -82,5
Depreciations and impairments -1,0 -0,8 -17,2 -1,1
Operating profit -5,3 4,3 -223,3 5,5
Financial items -0,3 0,0 -771,0 -0,1
Profit before taxes -5,6 4,2 -232,0 5,5
Income taxes -0,1 -2,0 95,7 -2,9
Minority interest 0,0 0,0 123,1 0,0
Profit for the financial period -5,7 2,2 -358,6 2,5
Earnings per share, EUR -0,083 0,032 0,037
Earnings per share, EUR (EPS),
adjusted for dilution effect -0,083 0,032 0,037
APPENDIX 2
BALANCE SHEET MEUR MEUR MEUR
30 Sep 2007 30 Sep 2006 31 Dec 2006
ASSETS
NON-CURRENT ASSETS
Goodwill 9,4 9,4 9,4
Capitalized development cost 1,8 1,3 1,4
Intangible assets 0,4 0,2 0,2
Tangible assets 1,7 1,5 1,5
Investments 0,0 0,0 0,0
Other long-term assets 0,7 0,6 1,0
Deferred tax assets 0,4 0,5 0,5
NON-CURRENT ASSETS TOTAL 14,6 13,6 14,1
CURRENT ASSETS
Inventories 0,6 0,3 0,5
Short-term receivables 27,4 31,2 34,9
Cash and cash equivalents 7,7 5,5 5,7
CURRENT ASSETS TOTAL 35,7 37,2 41,2
ASSETS TOTAL 50,4 50,8 55,3
SHAREHOLDERS' EQUITY AND
LIABILITIES
Shareholders' equity 25,3 29,2 29,8
Minority interest 0,1 0,1 0,1
Long-term loans 2,0 1,9 1,7
Short-term loans 23,0 19,6 23,7
EQUITY AND LIABILITIES TOTAL 50,4 50,8 55,3
APPENDIX 3
STATEMENT OF CHANGES IN EQUITY
Share
Share premium Translation Retained
TEUR capital fund difference earnings Total
EQUITY 01.01.2005 674 17 002 126 3 559 21 361
Translation difference 0 0 -201 0 -201
Result of the financial
year 0 0 0 3 401 3 401
Total 0 0 -201 3 401 3 200
Share based payments
recognised
against equity 0 0 0 516 516
EQUITY 31.12.2005 674 17 002 -75 7 476 25 078
Issue of share capital 6 1 143 0 0 1 149
Exercise of options 1 146 0 0 147
Translation difference 0 0 42 0 42
Result of the financial
year 0 0 0 2 526 2 526
Total 7 1 289 42 2 526 3 864
Share based payments
recognised
against equity 0 0 0 860 860
EQUITY 31.12.2006 681 18 291 -33 10 862 29 802
Translation difference 0 0 157 0 157
Exercise of options 5 705 0 0 710
Result of the financial
period 0 0 0 -5 686 -5 686
Total 5 705 157 -5 686 -4 819
Share based payments
recognised
against equity 0 0 0 344 344
EQUITY 30.9.2007 686 18 996 124 5 520 25 326
APPENDIX 4
CASH FLOW STATEMENT MEUR MEUR MEUR
Jan-Sep 2007 Jan-Sep 2006 Jan-Dec 2006
Cash flow from operating
activities
Operating result -5,3 4,3 5,5
Adjustment to operating result 1,1 1,2 1,7
Change in working capital 4,0 -5,9 -6,3
Interest received and other
financial income 0,1 0,1 0,2
Interest paid and other
financial expenses -0,1 -0,1 -0,1
Taxes paid -0,7 -2,3 -3,2
Net cash from operating
activities -0,9 -2,7 -2,2
Cash flow from investing
activities
Group companies acquired 0,0 -0,1 -0,1
Investments in tangible and
intangible assets -1,3 -1,1 -1,3
Loans granted 0,0 0,0 -0,2
Net cash used in investing
activities -1,3 -1,2 -1,6
Cash flow before financing
activities -2,1 -4,0 -3,8
Cash flow from financing
activities
Long-term loans, repayments -0,1 -0,1 -0,1
Short term loans, received 3,5 0,0 0,0
Share issue 0,0 0,0 0,1
Net cash used in financing
activities 4,2 0,1 0,1
Net cash flow, total 2,0 -3,9 -3,7
Change in cash and cash
equivalents 2,0 -3,9 -3,7
Cash and cash equivalents at
the beginning of period 5,7 9,4 9,4
Cash and cash equivalents at
the end of period 7,7 5,5 5,7
APPENDIX 5
COMMITMENTS AND CONTINGENCIES MEUR MEUR MEUR
30 Sep 2007 30 Sep 2006 31 Dec 2006
Mortages 5,4 5,4 5,4
Leasing liabilities 14,6 13,7 16,1
Guarantees on behalf of company
debt 0,1 0,2 0,2
APPENDIX 6
KEY FIGURES, MEUR Jan-Sep /2007 Jan-Sep /2006 Total 2006
Scope of Operations
Net sales, MEUR 54,1 63,5 88,8
Average number of personnel 630 609 614
Profitability
Operating profit , MEUR -5,3 4,3 5,5
Operating profit, % of net
sales -9,8 6,7 6,2
Profit before taxes and
minority interest, MEUR -5,6 4,2 5,5
Profit before taxes and
minority interest, % of net
sales -10,4 6,7 6,2
Return on equity, % (ROE) -27,5 10,9 9,2
Return on investment, % (ROI) -21,7 21,9 21,0
Financial Standing
Quick ratio 1,5 1,9 1,7
Current ratio 1,6 1,9 1,7
Equity ratio, % 51,0 58,5 54,5
Interest-bearing net debt,
MEUR -3,2 -4,9 -5,1
Gearing, % -12,7 -16,7 -16,9
Per Share Data
Earnings per share, EUR (EPS) -0,083 0,032 0,037
Earnings per share, EUR (EPS),
adjusted for dilution effect -0,083 0,032 0,037
Shareholders' equity per
share, EUR 0,369 0,428 0,437
APPENDIX 7
SEGMENT INFORMATION, MEUR
BUSINESS SEGMENTS Jan-Sep/2007 Jan-Sep/2006 Jan-Dec/2006
Net sales to external
customers
Supply Chain Management
Software 42,6 54,4 74,2
In-Store Software 11,5 9,1 14,6
Total 54,1 63,5 88,8
Operating result, continuing
operations
Supply Chain Management
Software -4,2 4,5 5,1
In-Store Software 0,1 0,8 2,6
Total -4,2 5,3 7,7
Unallocated items -1,1 -1,0 -2,1
Operating profit -5,3 4,3 5,5
Financial income and expenses -0,3 0,0 0,0
Result before taxes and
minority interest -5,6 4,2 5,5
Taxes -0,1 -2,0 -2,9
Minority interest 0,0 0,0 0,0
Result from continuing
operations -5,7 2,2 2,5
Result for the financial
period -5,7 2,2 2,5
APPENDIX 8
INCOME STATEMENT MEUR MEUR MEUR MEUR MEUR
quarterly figures Q3/2007 Q2/2007 Q1/2007 Q4/2006 Q3/2006
Net sales 16,6 19,1 18,3 25,3 19,9
Other operating income 0,1 0,1 0,2 0,0 0,1
Operating expenses -18,2 -20,4 -20,2 -23,8 -18,2
Depreciations and
impairments -0,4 -0,3 -0,3 -0,3 -0,3
Operating profit -1,8 -1,5 -2,0 1,3 1,5
Financial items -0,2 0,0 -0,1 0,0 0,1
Profit before taxes -2,0 -1,5 -2,1 1,2 1,6
Income taxes 0,1 -0,2 0,0 -0,9 -0,7
Minority interest 0,0 0,0 0,0 0,0 0,0
Profit for the financial
period -1,9 -1,7 -2,1 0,3 0,9
INCOME STATEMENT MEUR MEUR MEUR MEUR MEUR
cumulative 1-9/07 1-6/07 1-3/07 1-12/06 1-9/06
Net sales 54,1 37,5 18,3 88,8 63,5
Other operating income 0,4 0,2 0,2 0,4 0,4
Operating expenses -58,8 -40,6 -20,2 -82,5 -58,7
Depreciations and
impairments -1,0 -0,6 -0,3 -1,1 -0,8
Operating profit -5,3 -3,5 -2,0 5,5 4,3
Financial items -0,3 -0,2 -0,1 -0,1 0,0
Profit before taxes -5,6 -3,6 -2,1 5,5 4,2
Income taxes -0,1 -0,2 0,0 -2,9 -2,0
Minority interest 0,0 0,0 0,0 0,0 0,0
Profit for the financial
period -5,7 -3,8 -2,1 2,5 2,2
BALANCE SHEET MEUR MEUR MEUR MEUR MEUR
30.9.07 30.6.07 31.3.07 31.12.06 30.9.06
ASSETS
NON-CURRENT ASSETS
Goodwill 9,4 9,4 9,4 9,4 9,4
Capitalized development
cost 1,8 1,6 1,4 1,4 1,3
Intangible assets 0,4 0,3 0,3 0,2 0,2
Tangible assets 1,7 1,6 1,5 1,5 1,5
Investments 0,0 0,0 0,0 0,0 0,0
Other long-term assets 0,7 0,7 0,8 1,0 0,6
Deferred tax assets 0,4 0,3 0,5 0,5 0,5
NON-CURRENT ASSETS TOTAL 14,6 14,0 14,0 14,1 13,6
CURRENT ASSETS
Inventories 0,6 0,4 0,6 0,5 0,3
Short-term receivables 27,4 31,3 34,0 35,0 31,2
Cash and cash equivalents 7,7 4,3 6,7 5,7 5,5
CURRENT ASSETS TOTAL 35,7 36,0 41,4 41,2 37,2
ASSETS TOTAL 50,4 50,1 55,3 55,3 50,8
SHAREHOLDERS' EQUITY AND
LIABILITIES
Shareholders' equity 25,3 27,0 27,9 29,8 29,2
Minority interest 0,1 0,1 0,1 0,1 0,1
Non-current liabilities 2,0 1,7 1,7 1,7 1,9
Current liabilities 23,0 21,3 25,6 23,7 19,6
EQUITY AND LIABILITIES
TOTAL 50,4 50,1 55,3 55,3 50,8
APPENDIX 9
KEY FIGURES, MEUR Q3/2007 Q2/2007 Q1/2007 Q4/2006 Q3/2006
quarterly figures
Scope of Operations
Net sales, MEUR 16,6 19,1 18,3 25,3 19,9
Average number of personnel 630 634 632 614 609
Profitability
Operating profit , MEUR -1,8 -1,5 -2,0 1,3 1,5
Operating profit, % of net
sales -10,8 -7,8 -10,9 4,9 7,5
Profit before taxes and
minority interest, MEUR -2,0 -1,5 -2,1 1,2 1,6
Profit before taxes and
minority interest, % of net
sales -11,9 -8,0 -11,5 4,8 7,9
Return on equity, % (ROE) -27,5 -27,0 -28,8 9,2 10,9
Return on investment, %
(ROI) -21,7 -22,0 -25,3 21,0 21,9
Financial Standing
Quick ratio 1,5 1,7 1,6 1,7 1,9
Current ratio 1,6 1,7 1,6 1,7 1,9
Equity ratio, % 51,0 54,7 51,3 54,5 58,5
Interest-bearing net debt,
MEUR -3,2 -3,6 -6,0 -5,1 -4,9
Gearing, % -12,7 -13,2 -21,6 -16,9 -16,7
Per Share Data
Earnings per share, EUR
(EPS) -0,027 -0,26 -0,031 0,005 0,014
Earnings per share, EUR
(EPS), adjusted for dilution
effect -0,027 -0,025 -0,030 0,005 0,014
Shareholders' equity per
share, EUR 0,369 0,396 0,409 0,437 0,428
ALDATA SOLUTION INTERIM REPORT JANUARY - SEPTEMBER 2007 (unaudited)
| Source: Aldata Solution Oyj