IXONOS PLC STOCK EXCHANGE RELEASE 29 APRIL 2008
IXONOS PLC INTERIM REPORT 1 JANUARY - 31 MARCH 2008
CONTINUED TURNOVER GROWTH; PROFITABILITY CHALLENGING AS FORESEEN
- Turnover for the review period was EUR 18.3 million (2007: EUR 13.2 million);
turnover growth was 38.1 per cent. Organic turnover growth was 18.9 per cent.
- Operating profit was EUR 0.7 million (2007: EUR 1.0 million), 3.6 per cent of
turnover; operating profit growth fell 31.4 per cent.
- Net profit was EUR 0.4 million (2007: EUR 0.7 million), 2.0 per cent of
turnover; net profit decreased 44.8 per cent.
- Earnings per share were EUR 0.04 (2007: EUR 0.09).
- Diluted earnings per share were EUR 0.04 (2007: EUR 0.09).
- Turnover of Consulting Services for the review period was EUR 7.5 million
(2007: EUR 5.2 million), an increase of 43.4 per cent; operating profit was EUR
0.4 million (2007: EUR 0.7 million), 4.9 per cent of turnover; the operating
profit fell 46.4 per cent.
- Turnover of Software Production Services for the review period was EUR 11.2
million (2007: EUR 8.1 million), an increase of 38.5 per cent; operating profit
was EUR 0.9 million (2007: EUR 1.2 million), 8.1 per cent of turnover; operating
profit fell 26.1 per cent.
- The Group's turnover for the second quarter, as well as for the entire
financial period, is anticipated to significantly exceed the corresponding
turnover for the previous year.
- The Group's operating profit for the second quarter is expected to fall short
of the previous year.
- The company launches an operational rationalization program, aimed at saving
approximately EUR 3 million per year as from the fourth quarter of the present
financial period.
- As the operating profit percentage is expected to remain at the previous
year's level, the operating profit is presumed to exceed that of last year.
Kari Happonen, President and CEO:
Our turnover has grown by more than 40 per cent p.a. for two successive years.
Our strong organic growth - more than 22 per cent in 2006, and over 34 per cent
last year - has been backed up by carefully selected strategic acquisitions.
Although the growth of our business operations is not petering out, it has
decelerated somewhat during the beginning of this year. Also, as the global
economy and general economic prospects are becoming clearly feebler, general
demand in our industry is likely to slow down during this year.
In order to make our operations more efficient after a strong growth period and
several acquisitions, and also to prepare for decelerating growth, we will
launch a rationalization program during the second quarter. The program is aimed
at rationalizing the Group's administration and support functions, boosting the
proportion of chargeable work performed by the company's specialist staff, and
increasing the contribution of international offices in proportion to the
service production of the entire Group. The program seeks to achieve
approximately EUR 3 million in yearly savings, from the fourth quarter of the
current financial period.
FUTURE PROSPECTS
Research institutes are increasingly pessimistic about the growth of Finland's
ICT service market in the current year, estimating it at 3-4 per cent.
The demand for Ixonos' consulting services and software production is
anticipated to grow significantly faster than the market, both during the second
quarter of this year and for the entire financial period. Thus the company
expects to continue gaining market share.
The Group's turnover for the second quarter, as well as for the entire financial
period, is anticipated to significantly exceed the corresponding turnover for
the previous year.
Due to rapid growth and to the increase in staff brought about by recent
acquisitions, the Group's operating profit for the second quarter is expected to
fall short of the previous year's figure.
During the second quarter, the company will launch an operational
rationalization program, aimed at saving approximately EUR 3 million per year as
from the fourth quarter of the present financial period.
As the operating profit percentage is expected to remain at the previous year's
level, the operating profit is presumed to exceed that of last year.
BUSINESS OPERATIONS
Ixonos operates in the ICT service market, offering its customers flexible
technology consulting, project management, software development and software
maintenance solutions that support their competitiveness and risk management.
The Group's clientele on the international market comprises leading mobile and
smartphone manufacturers, mobile network suppliers and telecom carriers. Finnish
customers include finance, industry and service sector companies, as well as
public administration organizations.
Consulting Services
Ixonos' consulting services encompass technology consulting, user interface and
usability design, and project management services.
During the review period, the demand for technology consulting and project
management services grew in comparison with the previous year.
Software Production Services
Ixonos' software production services include total responsibility software
project deliveries and software maintenance, as well as testing and quality
assurance services.
During the review period, turnover as compared to the previous year was boosted
especially by project deliveries and by software maintenance.
The software project and testing operations successfully utilized the offering
of the Group's lower-cost offices. During the first quarter, more than 120
experts worked in the Tallinn and Kosice offices.
RISK MANAGEMENT AND NEAR-FUTURE UNCERTAINTY FACTORS
The aim of Ixonos Plc's risk management is to ensure undisturbed and continuous
business operations and development, support the implementation of the company's
operational targets, and increase the company's value. The risk management
organization and process, as well as recognized risks, are presented on the
company's website, at http://www.ixonos.com/en/investors/risk_management.
Presently the biggest uncertainty factors relate to the world economy prospects
and to growing international competition. Any downswing in the global economy
would be likely to affect also the European and Finnish economies, and might
lead to companies reducing their investments in information systems development.
Still, such a weakening is not considered likely to significantly affect Ixonos'
mobile terminal and mobile software product development operations.
Should international - especially Indian and Chinese - competition proliferate
faster than anticipated, price competition could tighten, cutting profit margins
of Finnish companies. Ixonos has prepared for a more severe price competition by
establishing offices in lower-cost areas.
The rapid growth of the company and its project operations has increased the
need for working capital. This increase is being managed together with
financiers through establishing adequate buffers in order to ensure sufficient
funds, and also by facilitating the circulation of working capital.
Ixonos launches a rationalization program during the second quarter. The program
seeks to achieve some EUR 3 million in yearly savings as from the third quarter
of the current financial period. If the savings from program are delayed, has it
an effect to operating profit of 2008 and to the achievement of the profit
targets in 2008.
TURNOVER
Consolidated turnover was EUR 18.3 million (2007: EUR 13.2 million), which is
38.1 per cent more than in the previous year. Of the turnover, 39 per cent was
accrued by Consulting Services, and 61 per cent by Software Production Services.
TURNOVER BY SEGMENT
--------------------------------------------------------------------------------
| EUR 1,000 | Jan-Mar 2008 | Jan-Mar 2007 | Jan-Dec 2007 |
--------------------------------------------------------------------------------
| Consulting Services | 7,475 | 5,211 | 23,879 |
--------------------------------------------------------------------------------
| Software Production | 11,242 | 8,118 | 35,686 |
| Services | | | |
--------------------------------------------------------------------------------
| Eliminations | - 449 | - 105 | - 337 |
--------------------------------------------------------------------------------
| Group total | 18,268 | 13,224 | 59,228 |
--------------------------------------------------------------------------------
FINANCIAL RESULT
Consolidated operating profit was EUR 0.7 million (2007: EUR 1.0 million);
profit before taxes was EUR 0.5 million (2007: EUR 0.9 million). Profit for the
review period was EUR 0.4 million (2007: EUR 0.7 million), which is 2.0 per cent
of turnover. Diluted earnings per share were EUR 0.04 (2007: EUR 0.09). Diluted
cash flow from business operations was EUR -0.09 per share (2007: EUR 0.24).
OPERATING PROFIT BY SEGMENT
--------------------------------------------------------------------------------
| EUR 1,000 | Jan-Mar 2008 | Jan-Mar 2007 | Jan-Dec 2007 |
--------------------------------------------------------------------------------
| Consulting Services | 368 | 687 | 2 136 |
--------------------------------------------------------------------------------
| Software Production | 910 | 1,232 | 5,030 |
| Services | | | |
--------------------------------------------------------------------------------
| Administration* | - 617 | - 956 | - 2,487 |
--------------------------------------------------------------------------------
| Group total | 661 | 963 | 4,679 |
--------------------------------------------------------------------------------
* The administrative costs for January-March 2007 include EUR 0.55 million in
non-recurring expenses for the review period.
RETURN ON CAPITAL INVESTMENT
Consolidated return on equity (ROE) was 6.1 per cent (2007: 26.1); return on
investment (ROI) was 5.7 per cent (2007: 24.9).
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 50.0 million (2007: EUR 26.2 million).
Shareholders' equity was EUR 21.9 million (2007: EUR 9.6 million). Equity ratio
was 43.9 per cent (2007: 36.7). The Group's liquid assets at the end of the
review period stood at EUR 0.8 million (2007: EUR 4.5 million).
CASH FLOW
Consolidated cash flow from business operations for the review period was EUR
-0.8 million (2007: EUR 1.7 million). The decrease in cash flow from business
operations was mainly due to a growth in accounts receivable, in consequence of
extended payment terms pertaining to project activities.
PERSONNEL
The number of personnel averaged 923 (2007: 596) during the review period, and
was 937 (2007: 613) at the end of the period.
SHARES AND SHARE CAPITAL
Share turnover and price
During the review period, the company's highest share price was EUR 6.15 (2007:
EUR 5.70), and the lowest EUR 4.26 (2007: EUR 4.55). The closing price on 31
March 2008 was EUR 4.40 (2007: EUR 5.26). The average price over the review
period was EUR 4.83 (2007: EUR 5.06). The number of shares traded during the
review period was 1,117,467 (2007: 1,855,792), which corresponds to 13 per cent
(2007: 25 per cent) of the total number of shares at the end of the review
period. The market value of the share capital, according to the closing price on
31 March 2008, was EUR 39,197,972 (2007: EUR 39,048,662).
Share capital
At the beginning of 2008, the company's registered share capital was EUR
355,485.20; the number of shares was 8,887,130. During the present year, 13,000
shares have been subscribed with option rights of the 2003 stock options plan
DII, and 8,500 shares with option rights of the 2006 options plan AI. Ixonos'
share capital was EUR 356,345.20 at the end of the review period; the total
number of shares was 8,908,630.
Stock options plans 2003 and 2006
Under the 2003 stock options plan, 10,000 options have been released under AI;
10,000 options under AII; 82,500 options under BI; 22,500 options under BII;
100,000 options under CI; 35,000 options under CII; 127,500 options under DI;
and 112,500 options under DII. Under the 2003 options plan, 45,000 shares have
been subscribed with options BI; 5,000 shares with options BII; 23,500 shares
with options CI; 25,500 shares with options CII; 64,500 shares with options DI;
and 15,500 shares with options DII. The maximum number of shares that can be
subscribed with outstanding options under options plan 2003 is 321,000, which is
equivalent to 4.0 per cent of the company's total shares. The subscription price
is EUR 1.88 for AI and AII options, EUR 1.56 for BI and BII options, EUR 3.32
for CI and CII options, and EUR 3.22 for DI and DII options. The subscription
period for the 2003 options ends on 31 December 2008.
Under the 2006 stock options plan, 140,000 options have been released under AI;
140,000 options under AII; and 60,000 options under BI. Of the series A options,
15,000 AI options and 15,000 AII options have been returned to the company based
on the terms of the options. These options have been converted to series B
options in accordance with the option terms, and they have been redistributed.
The maximum number of shares that can be subscribed with outstanding options
under options plan 2006 is 391,500, which is equivalent to 4.4 per cent of the
company's total shares. The subscription period for the 2006 AI options began on
1 October 2007. The subscription period for the AII and BI options begins on 1
October 2008, and for the BII options, on 1 October 2009. The subscription price
is EUR 4.13 for AI and AII options, and EUR 5.10 for BI and BII options. The
subscription period for the 2006 options ends on 31 December 2011.
Shareholders
There were 2,976 shareholders on 31 March 2008. Private persons owned 57 per
cent of the company's shares, while institutions owned 43 per cent. Foreign
ownership was 3 per cent of the total number of shares.
Board authorizations
The Annual General Meeting authorized the Board to decide on issuing up to
890,000 shares in one or more issues. The Board may decide to issue either new
shares, or existing shares possibly held by the company. The upper limit of the
authorization corresponds to approximately 10 per cent of all company shares.
The authorization may be used to finance or implement corporate acquisitions or
other arrangements, or for other purposes determined by the Board. The
authorization entitles the Board to decide on all terms and conditions of the
share issue, including the recipients of shares as well as the compensation to
be paid. Thus, the authorization also includes the right to directed share
issues, i.e. to deviate from the shareholders' pre-emptive right, under
conditions defined by law. The authorization is effective until the next Annual
General Meeting, although not beyond 30 June 2009.
The Board has not used the above authorization.
ANNUAL GENERAL MEETING DECISIONS
The Annual General Meeting of Ixonos Plc, held on 3 April 2008, adopted the
company's financial statements, including the consolidated financial statements,
for the financial period 1 January - 31 December 2007, and also granted
discharge from liability to the Members of the Board of Directors and to the
CEO.
The Annual General Meeting decided to distribute as dividend EUR 0.18 per share.
The dividend was paid on 16 April 2008 on the shares that were, on the balance
date 8 April 2008, registered on the shareholder list maintained by the Finnish
Central Securities Depository Ltd.
The Annual General Meeting confirmed the number of Board members to be six.
Members of the Board Eero Hurme, Matti Järvinen, Tero Laaksonen, Matti Makkonen
and Esko Siik were re-elected; Markku Toivanen was elected as new member. At its
meeting following the Annual General Meeting, the Board of Directors elected
Tero Laaksonen Chairman of the Board, and Eero Hurme Deputy Chairman of the
Board.
The Annual General Meeting elected Paul Ehrnrooth and Staffan Sevon as
shareholders' representatives on the Nomination Committee.
According to the decision of the Annual General Meeting, KHT firm
PricewaterhouseCoopers Oy will continue as auditor, with Heikki Lassila, KHT
auditor, as principal auditor.
The Annual General Meeting decided to reduce the premium fund, according to the
balance sheet of 31 December 2007, with EUR 4,511,774.54. The reduction will be
transferred to the invested non-restricted equity fund. Before the premium fund
is reduced, a public notice will be issued in accordance with the Limited
Liability Companies Act.
The Annual General Meeting authorized the Board to decide on issuing up to
890,000 shares in one or more issues. The Board may decide to issue either new
shares, or existing shares possibly held by the company. The upper limit of the
authorization corresponds to approximately 10 per cent of all company shares.
The authorization may be used to finance or implement corporate acquisitions or
other arrangements, or for other purposes determined by the Board. The
authorization entitles the Board to decide on all terms and conditions of the
share issue, including the recipients of shares as well as the compensation to
be paid. Thus, the authorization also includes the right to directed share
issues, i.e. to deviate from the shareholders' pre-emptive right, under
conditions defined by law. The authorization is effective until the next Annual
General Meeting, although not beyond 30 June 2009.
SUMMARY OF OTHER STOCK EXCHANGE RELEASES UNDER CHAPTER 2, SECTION 7 OF THE
SECURITIES MARKETS ACT
On 29 January 2008, the company published a release stating that Timo Leinonen,
Master of Administrative Sciences, age 37, had been appointed Chief Financial
Officer and Vice President of Ixonos.
On 7 February 2008, Ixonos announced that from the first interim report in 2008,
the company would report its consolidated business operations as two segments:
Consulting Services, and Software Production Services. The new segments are
based on the company's service products, and they illustrate more accurately
both the character of the company's business operations, and the efforts made to
develop them. The rearrangement of segment reporting was related to the ongoing
development of the company's organization.
The Financial Statement Bulletin, released on 13 February 2008, stated that
judging from Ixonos' order backlogs and tender prospects, the company's
turnover, both in the first quarter of 2008 and during the entire financial
period, would be significantly higher than for the corresponding periods in
2007. Due to heavy upfront recruitment, the Group's first-quarter operating
profit percentage, excluding depreciation of intangible rights of corporate
acquisitions, was expected to fall short of the previous year. However, for the
entire fiscal year, the operating profit percentage, excluding depreciation of
intangible rights of corporate acquisitions, was assumed to be on the level of
the previous year. The operating profit was thus expected to be clearly higher
than in the previous year.
NEXT REPORTS
The Interim Report for the period 1 January - 30 June 2008 will be published on
13 August 2008.
IXONOS PLC
Board of Directors
FURTHER INFORMATION IS AVAILABLE FROM:
Ixonos Plc
Kari Happonen, President and CEO
tel. +358 424 2231, GSM +358 400 700 761, kari.happonen@ixonos.com
DISTRIBUTION:
OMX Nordic Exchange Helsinki
Main media
IXONOS GROUP
ABBREVIATED FINANCIAL STATEMENTS 1 JANUARY - 31 MARCH 2008
Accounting principles
The Interim Report has been prepared in accordance with the recognition and
valuation principles of the International Financial Reporting Standards (IFRS).
The figures in the income statement and balance sheet have been consolidated.
All group companies are included in the consolidated balance sheet. The original
Interim Report is in Finnish. The English version is a translation. The figures
are unaudited.
CONSOLIDATED PROFIT AND LOSS ACCOUNT, K EUR
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | Change | 1.1. - |
| | 31.3.2008 | 31.3.2007 | | 31.12.2007 |
| | | | | |
--------------------------------------------------------------------------------
| Turnover | 18,268 | 13,224 | 38.1 % | 59,229 |
--------------------------------------------------------------------------------
| Operating costs | - 17,607 | - 12,260 | 43.6 % | - 54,550 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 661 | 963 | - 31.4 % | 4,679 |
--------------------------------------------------------------------------------
| Financial income and | - 162 | - 52 | 211.5 % | - 303 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | 499 | 911 | - 45.2 % | 4,376 |
--------------------------------------------------------------------------------
| Taxes | - 130 | - 242 | - 46.4 % | - 1,229 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE | 369 | 669 | - 44.8 % | 3,147 |
| PERIOD | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET, K EUR
--------------------------------------------------------------------------------
| ASSETS | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| FIXED ASSETS | | | |
--------------------------------------------------------------------------------
| Goodwill | 23,307 | 11,190 | 21,067 |
--------------------------------------------------------------------------------
| Intangible assets | 6,167 | 388 | 6,282 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 1,402 | 421 | 1,332 |
--------------------------------------------------------------------------------
| Deferred tax claims | 73 | 49 | 43 |
--------------------------------------------------------------------------------
| Other assets | 110 | 110 | 110 |
--------------------------------------------------------------------------------
| Receivables | 0 | 8 | 12 |
--------------------------------------------------------------------------------
| FIXED ASSETS TOTAL | 31,058 | 12,166 | 28,846 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Accounts receivable and other | 18,118 | 9,507 | 15,411 |
| receivables | | | |
--------------------------------------------------------------------------------
| Financial assets | 152 | 1,317 | 151 |
--------------------------------------------------------------------------------
| Liquid assets | 642 | 3,181 | 2,331 |
--------------------------------------------------------------------------------
| CURRENT ASSETS TOTAL | 18,912 | 14,004 | 17,893 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 49,970 | 26,170 | 46,740 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | 31.3.2008 | 31.3.2007 | 31.12.2007 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS´ EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | 356 | 297 | 355 |
--------------------------------------------------------------------------------
| Premium fund | 4,588 | 4,176 | 4,512 |
--------------------------------------------------------------------------------
| Share issue | 0 | 16 | 77 |
--------------------------------------------------------------------------------
| Invested non-restricted equity | 8,869 | 0 | 8,869 |
| fund | | | |
--------------------------------------------------------------------------------
| Retained earnings | 7,767 | 4,445 | 4,588 |
--------------------------------------------------------------------------------
| Net profit for the period | 369 | 669 | 3,147 |
--------------------------------------------------------------------------------
| SHAREHOLDERS´ EQUITY TOTAL | 21,949 | 9,604 | 26,135 |
--------------------------------------------------------------------------------
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Long-term liabilities | 8,236 | 4,504 | 8,681 |
--------------------------------------------------------------------------------
| Current liabilities | 19,785 | 12,062 | 16,511 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 28,021 | 16,566 | 25,192 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | 49,970 | 26,170 | 46,740 |
| LIABILITIES TOTAL | | | |
--------------------------------------------------------------------------------
CHANGES IN EQUITY, K EUR
--------------------------------------------------------------------------------
| | Share | Premium| Share | Inv. | Retained | Total |
| | capital| fund| issue | non-restr.| earnings | |
| | | | | equity | | |
| | | | | fund | | |
--------------------------------------------------------------------------------
| Shareholders' | 297 | 4,176 | 0 | 0 | 6,406 | 10,879 |
| equity | | | | | | |
| 1 Jan 2007 | | | | | | |
--------------------------------------------------------------------------------
| Options | | | | | 44 | 44 |
| expense | | | | | | |
| write-off | | | | | | |
--------------------------------------------------------------------------------
| Share issue | | | 16 | | | 16 |
--------------------------------------------------------------------------------
| Dividend | | | | | - 2,004 | - 2,004 |
--------------------------------------------------------------------------------
| Profit for | | | | | 669 | 669 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 297 | 4,176 | 16 | 0 | 5,115 | 9,604 |
| equity | | | | | | |
| 31 Mar 2007 | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 355 | 4,512 | 77 | 8,869 | 7,734 | 21,548 |
| equity | | | | | | |
| 1 Jan 2008 | | | | | | |
--------------------------------------------------------------------------------
| Options | | | | | 33 | 33 |
| expense | | | | | | |
| write-off | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 1 | 76 | - 77 | | | 0 |
--------------------------------------------------------------------------------
| Dividend | | | | | | 0 |
--------------------------------------------------------------------------------
| Profit for | | | | | 369 | 369 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 356 | 4,588 | 0 | 8,869 | 8,136 | 21,949 |
| equity | | | | | | |
| 31 Mar 2008 | | | | | | |
--------------------------------------------------------------------------------
SOURCES AND APPLICATION OF FUNDS, GROUP, K EUR
--------------------------------------------------------------------------------
| | 1.1.-31.3.08 | 1.1-1.3.07 | 1.1-31.12.07|
| | | | |
| | | | |
--------------------------------------------------------------------------------
| Cash flow from business operations | | | |
--------------------------------------------------------------------------------
| Net profit for the period | 369 | 669 | 3,147 |
--------------------------------------------------------------------------------
| Adjustments to cash flow from | | | |
| business operations | | | |
--------------------------------------------------------------------------------
| Taxes | 130 | 242 | 1,229 |
--------------------------------------------------------------------------------
| Depreciation and impairment | 547 | 109 | 1,226 |
--------------------------------------------------------------------------------
| Financial income and expenses | 162 | 52 | 303 |
--------------------------------------------------------------------------------
| Other adjustments | 33 | 29 | 105 |
--------------------------------------------------------------------------------
| Income financing before change in | 1,240 | 1,101 | 6,010 |
| net working capital | | | |
--------------------------------------------------------------------------------
| Change in net working capital | - 1,589 | 793 | - 1,077 |
--------------------------------------------------------------------------------
| Interest received | 10 | 18 | 68 |
--------------------------------------------------------------------------------
| Interest paid | - 133 | -50 | - 332 |
--------------------------------------------------------------------------------
| Transfer income from fixed assets | - 19 | 0 | 0 |
--------------------------------------------------------------------------------
| Taxes paid | - 320 | - 145 | - 1,297 |
--------------------------------------------------------------------------------
| Net cash flow from business | - 811 | 1,717 | 3,371 |
| operations | | | |
--------------------------------------------------------------------------------
| Cash flow from investments | | | |
--------------------------------------------------------------------------------
| Investments in tangible and | - 527 | - 159 | - 1,357 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Change in financial assets | - 1 | - 622 | 544 |
--------------------------------------------------------------------------------
| Transfer income from fixed assets | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 0 | - 231 | - 4,136 |
--------------------------------------------------------------------------------
| Net cash flow from investments | - 528 | - 1,013 | - 4,949 |
--------------------------------------------------------------------------------
| Net cash flow before financing | - 1,339 | 705 | - 1,578 |
--------------------------------------------------------------------------------
| Cash flow from financing | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Dividend paid | 0 | 0 | - 2,004 |
--------------------------------------------------------------------------------
| Increase of long-term loans | | | 3,800 |
--------------------------------------------------------------------------------
| Repayment of long-term loans | - 350 | - 230 | - 993 |
--------------------------------------------------------------------------------
| Share issue | 0 | 16 | 417 |
--------------------------------------------------------------------------------
| Net cash flow from financing | - 350 | - 213 | 1,220 |
| activities | | | |
--------------------------------------------------------------------------------
| Change in funds | - 1,689 | 491 | - 359 |
--------------------------------------------------------------------------------
| Liquid assets at start of period | 2,331 | 2,689 | 2,689 |
--------------------------------------------------------------------------------
| Liquid assets at end of period | 642 | 3,181 | 2,331 |
--------------------------------------------------------------------------------
CONSOLIDATED PROFIT AND LOSS ACCOUNT, QUARTERLY, K EUR
--------------------------------------------------------------------------------
| | Q1/2008 | Q4/2007 | Q3/2007 | Q2/2007 | Q1/2007 |
| | 1.1.- | 1.10.- | 1.7.- | 1.4.- | 1.1.- |
| | 31.3.08 | 31.12.07| 30.9.07 | 30.6.07 | 31.3.07 |
--------------------------------------------------------------------------------
| Turnover | 18,268 | 18,011 | | 14,125 | 13,224 |
| | | | 13,868 | | |
--------------------------------------------------------------------------------
| Operating costs | - 17,607 | - 16,931 | - 12,589 | - 12,770 | - 12,260 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 661 | 1,080 | 1,280 | 1,356 | 963 |
--------------------------------------------------------------------------------
| Financing income | - 162 | - 173 | - 28 | - 50 | - 52 |
| and | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Profit before | 499 | 908 | 1,252 | 1,305 | 911 |
| taxes | | | | | |
--------------------------------------------------------------------------------
| Income taxes | - 130 | - 294 | - 345 | - 348 | - 242 |
--------------------------------------------------------------------------------
| PROFIT FOR THE | 369 | 614 | 906 | 957 | 669 |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
SEGMENT REPORT
--------------------------------------------------------------------------------
| | 1.1.-31.3.08| 1.1.-31.3.07| 1.1.-31.12.07|
| | | | |
--------------------------------------------------------------------------------
| Turnover by segment | | | |
--------------------------------------------------------------------------------
| Consulting Services | 7,475 | 5,211 | 23,879 |
--------------------------------------------------------------------------------
| Software Production Services | 11,242 | 8,118 | 35,686 |
--------------------------------------------------------------------------------
| Eliminations | - 499 | - 105 | - 337 |
--------------------------------------------------------------------------------
| Turnover total | 18,268 | 13,224 | 59,229 |
--------------------------------------------------------------------------------
| Operating profit by segment | | | |
--------------------------------------------------------------------------------
| Consulting Services | 368 | 687 | 2,136 |
--------------------------------------------------------------------------------
| Software Production Services | 910 | 1,232 | 5,030 |
--------------------------------------------------------------------------------
| Administration | - 617 | - 956 | - 2,487 |
--------------------------------------------------------------------------------
| Total operating profit | 661 | 963 | 4,679 |
--------------------------------------------------------------------------------
| Operating profit, per cent of | 3.6 | 7.3 | 7.9 |
| turnover | | | |
--------------------------------------------------------------------------------
| Interest and financial income | - 162 | - 52 | - 303 |
--------------------------------------------------------------------------------
| Profit before taxes | 499 | 911 | 4,376 |
--------------------------------------------------------------------------------
| Taxes | - 130 | - 242 | - 1,229 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 369 | 669 | 3,147 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets by segment | | | |
--------------------------------------------------------------------------------
| Consulting Services | 18,066 | 7,979 | 15,381 |
--------------------------------------------------------------------------------
| Software Production Services | 31,559 | 14,510 | 29,683 |
--------------------------------------------------------------------------------
| Other | 345 | 3,681 | 1,675 |
--------------------------------------------------------------------------------
| Total assets | 49,970 | 26,170 | 46,740 |
--------------------------------------------------------------------------------
| Liabilities by segment | | | |
--------------------------------------------------------------------------------
| Consulting Services | 6,645 | 3,221 | 5,486 |
--------------------------------------------------------------------------------
| Software Production Services | 16,994 | 8,375 | 15,899 |
--------------------------------------------------------------------------------
| Other | 4,382 | 4,970 | 3,807 |
--------------------------------------------------------------------------------
| Total liabilities | 28,021 | 16,566 | 25,192 |
--------------------------------------------------------------------------------
| Depreciation by segment | | | |
--------------------------------------------------------------------------------
| Consulting Services | 97 | 87 | 394 |
--------------------------------------------------------------------------------
| Software Production Services | 421 | 3 | 696 |
--------------------------------------------------------------------------------
| Other | 28 | 19 | 135 |
--------------------------------------------------------------------------------
| Total depreciation | 547 | 109 | 1,226 |
--------------------------------------------------------------------------------
| Investments per segment | | | |
--------------------------------------------------------------------------------
| Consulting Services | 67 | 271 | 4,807 |
--------------------------------------------------------------------------------
| Software Production Services | 441 | 91 | 10,758 |
--------------------------------------------------------------------------------
| Administration | 20 | 28 | 201 |
--------------------------------------------------------------------------------
| Investments total | 527 | 390 | 15,766 |
--------------------------------------------------------------------------------
CHANGES IN FIXED ASSETS, K EUR
--------------------------------------------------------------------------------
| | Goodwill| Intangib | Property, | Other | Total |
| | | le | plant and | tangible | |
| | | assets | equipment | assets | |
--------------------------------------------------------------------------------
| Carrying amount | 11,190 | 450 | 309 | 110 | 12,059 |
| 1 Jan 2007 | | | | | |
--------------------------------------------------------------------------------
| Additions | | 25 | 135 | | 159 |
--------------------------------------------------------------------------------
| Additions from | | | | | |
| corporate | | | | | |
| acquisitions | | | | | |
--------------------------------------------------------------------------------
| Disposals | | | | | |
--------------------------------------------------------------------------------
| Depreciation | | - 87 | - 22 | | - 109 |
| during the | | | | | |
| financial period | | | | | |
--------------------------------------------------------------------------------
| Carrying amount | 11,190 | 388 | 421 | 110 | 12,109 |
| 31 Mar 2007 | | | | | |
--------------------------------------------------------------------------------
| Carrying amount | 21,067 | 6,282 | 1,332 | 110 | 28,791 |
| 1 Jan 2008 | | | | | |
--------------------------------------------------------------------------------
| Additions | 2,240 | 306 | 585 | | 3,131 |
--------------------------------------------------------------------------------
| Additions from | | | | | |
| corporate | | | | | |
| acquisitions | | | | | |
--------------------------------------------------------------------------------
| Disposals | | | - 389 | | - 389 |
--------------------------------------------------------------------------------
| Depreciation | | - 420 | - 126 | | - 547 |
| during the | | | | | |
| financial period | | | | | |
--------------------------------------------------------------------------------
| Carrying amount | 23,307 | 6,167 | 1,402 | 110 | 30,986 |
| 31 Mar 2008 | | | | | |
--------------------------------------------------------------------------------
FINANCIAL RATIOS
--------------------------------------------------------------------------------
| | 1.1-31.3.08| 1.1.-31.3.07 |1.1.-31.12.07|
| | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR diluted | 0.04 | 0.09 | 0.40 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.04 | 0.09 | 0.41 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 2.46 | 1.26 | 2.42 |
--------------------------------------------------------------------------------
| Operating cash flow per share, EUR | -0.09 | 0.24 | 0.43 |
| diluted | | | |
--------------------------------------------------------------------------------
| Return on investment, per cent | 5.7 | 24.9 | 19.4 |
--------------------------------------------------------------------------------
| Return on equity, per cent | 6.1 | 26.1 | 19.4 |
--------------------------------------------------------------------------------
| Operating profit/turnover, per | 3.6 | 7.3 | 7.9 |
| cent | | | |
--------------------------------------------------------------------------------
| Net gearing | 51.2 | 28.8 | 33.8 |
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
| | 1.1-31.3.08 | 1.1.-31.3.07|1.1.-31.12.07|
| | | | |
--------------------------------------------------------------------------------
| PERSONNEL | 923 | 596 | 726 |
| Average number of personnel | | | |
--------------------------------------------------------------------------------
| Personnel at the end of the period | 937 | 613 | 874 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| COMMITMENTS, k EUR | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Collateral for own commitments | | | |
--------------------------------------------------------------------------------
| Corporate mortgages | 9,800 | 6,000 | 9,800 |
--------------------------------------------------------------------------------
| Other collateral | 310 | 146 | 273 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing and other rental | | | |
| commitments | | | |
--------------------------------------------------------------------------------
| Falling due within 1 year | 3,461 | 806 | 3,559 |
--------------------------------------------------------------------------------
| Falling due within 1-5 years | 7,522 | 2,015 | 7,623 |
--------------------------------------------------------------------------------
| Falling due after 5 years | 246 | 0 | 616 |
--------------------------------------------------------------------------------
| Total | 11,230 | 2,821 | 11,798 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal value of interest rate | | | |
| swap agreement | | | |
--------------------------------------------------------------------------------
| Falling due within 1 year | 1,400 | 857 | 1,400 |
--------------------------------------------------------------------------------
| Falling due within 1-5 years | 2,100 | 2,143 | 2,450 |
--------------------------------------------------------------------------------
| Falling due after 5 years | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total | 3,500 | 3,000 | 3,850 |
--------------------------------------------------------------------------------
| Fair value | -12 | 4 | 26 |
--------------------------------------------------------------------------------
CALCULATION OF FINANCIAL RATIOS
Return on equity (ROE) = 100 x net profit / Shareholders' equity (average)
Return on investment (ROI) =
100 x (profit before taxes + interest + other financial expenses) /
Balance sheet total - non-interest bearing liabilities (average)
Diluted result per share = Net profit / Diluted number of shares
Shareholders' equity per share = Shareholders' equity / Share-issue adjusted
number of shares
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