IXONOS PLC STOCK EXCHANGE RELEASE 29 APRIL 2009 10:15
INTERIM REPORT FOR THE PERIOD 1 JANUARY - 31 MARCH 2009
IXONOS' TURNOVER AND OPERATING PROFIT REALIZED AS PREDICTED
- Turnover for the review period was EUR 17.4 million (2008: EUR 18.3 million),
a change of -4.5 per cent (2008: 38.1 per cent).
- Operating profit was EUR -0.0 million (2008: EUR 0.7 million), -0.1 per cent
of turnover; operating profit fell -101.9 per cent.
- Net profit was EUR -0.2 million (2008: EUR 0.4 million), -1.3 per cent of
turnover; net profit decreased -162.9 per cent.
- Earnings per share were EUR -0.03 (2008: EUR 0.04).
- Diluted earnings per share were EUR -0.03 (2008: EUR 0.04).
- Net cash flow from operative activities was EUR 0.2 million (2008: EUR -0.8
million).
- In February, the company launched an operational rationalization program
aiming at cost savings of approximately EUR 3 million per year from this
year's second quarter.
- Due to the market situation, turnover for the second quarter is forecast to be
lower than in the previous year. Operating profit for the second quarter is
estimated to be positive as well as satisfactory considering the market
situation. Turnover for the entire year is envisaged to be lower than in the
previous year.
Kari Happonen, President and CEO:
The recession that has followed the global financial crisis has also slowed
demand for services in the ICT industry. During the first quarter, our turnover
decreased according to forecasts, as our customers were very careful about their
ICT investments, postponing, for instance, the start of new software and systems
projects.
As predicted, our operating profit was negative. However, due to determined
rationalization action, the eventual losses were quite slight.
In February, we commenced cooperation negotiations related to rationalization
measures. The negotiations sought to rationalize the Group's administration and
support functions, boost the proportion of chargeable work performed by the
company's specialist staff, and increase the contribution of the international
sites in proportion to the service output of the entire Group. The resulting
savings will amount to approximately EUR 3 million per year from the second
quarter of this year.
Although the market situation in our industry appears to remain uncertain, we
believe that the profitability of our operations will return to a satisfactory
level, considering circumstances, during the second quarter.
Despite the difficult market situation, we continued to develop our operations
in accordance with the strategy we had sharpened at the turn of the year. In
January, we established the Media & Communities business unit. This unit, which
is run from our new office in Boston, USA, develops solutions for social media.
We trust that as the economic recession eases, social-media solutions will be a
major growth area.
We also continued to increase our software production capacity in our new
Beijing service centre, where the first customer projects began at the end of
the review period. Through our operations in China, we aim to increase the
productivity of our service production and prepare for post-recession growth by
increasing our specialist personnel in China to several hundred within a couple
of years.
BUSINESS OPERATIONS
Ixonos is an ICT service company producing innovative solutions for mobile
communications, social media and digital services. Together with its customers,
the company develops products and services that inspire the digital experience
regardless of place and time. The company's corporate customers capitalize on
new business opportunities and new productivity.
By offering services that range from concept design, consulting, and project
management to software production and maintenance, Ixonos strives to be a
strategic partner for leading innovators.
The company's clientele comprises globally leading mobile and smartphone
manufacturers, network suppliers and telecom carriers as well as Finnish
finance, industrial and service companies and public administration
organizations.
Ixonos' sites are located in Helsinki and in six other localities in Finland, as
well as in Britain, China, Denmark, Estonia, Germany, Slovakia, and the United
States.
SEGMENTS
Pursuant to its strategy, Ixonos aims at developing business models that enable
both profitable growth and the price flexibility required by the competitive
situation at any time. The most important development areas are innovations,
solution capability, quality, and cost efficiency, as well as the continuous
development of a customer-oriented service attitude.
Since the beginning of 2009, Ixonos' business operations are organized into
three segments, in line with strategy. The segments are Mobile Terminals &
Software; Media & Communities; and Business Solutions. The Mobile Terminals &
Software segment involves product development services for mobile terminal
devices and for their software. The Media & Communities segment consists of
device-independent Internet services related to content delivery and to social
networking. The Business Solutions segment comprises development services
pertaining to corporate business software and systems as well as to public
administration online services.
The company reported its business operations for the financial period 2008 as
two segments: Consulting Services, and Software Production Services. The new
segmentation matches more clearly the nature of the solutions Ixonos supplies as
well as the business opportunities related to mobile communications and to
Internet services.
Mobile Terminals & Software
Ixonos' Mobile Terminals & Software business area provides its customers with
product development services for mobile terminal devices and for their software.
During the review period, demand for the segment's services grew clearly
compared with the reference period. Turnover increased by 17.8 per cent to EUR
9.4 million (2008: EUR 8.0 million). Operating profit increased by 0.8 per cent
to EUR 1.0 million (2008: EUR 1.0 million), 11.1 per cent of turnover.
The Mobile Terminals & Software segment actively utilized the offering of the
Group's lower-cost sites in Tallinn, Košice and Beijing.
Media & Communities
Ixonos' Media & Communities business area provides its customers with
device-independent Internet services related to delivery of media, entertainment
and information as well as to social networking.
During the review period, demand for the segment's services decreased clearly
compared with the reference period. Turnover fell 30.6 per cent to EUR 2.2
million (2008: EUR 3.2 million). Operating profit decreased by 54.5 per cent to
EUR 0.2 million (2008: EUR 0.4 million), 7.4 per cent of turnover. The reduction
in turnover was due to generally weakened demand for services in the ICT
industry after the global financial crisis as well as by individual large
customer projects finishing at the end of 2008.
The Media & Communities business area actively utilized the offering of the
Group's lower-cost sites in Košice.
Business Solutions
Ixonos' Business Solutions area provides development services pertaining to
corporate business software and systems as well as to public administration
online services.
During the review period, demand for the segment's services lessened somewhat
compared with the reference period. The segment's turnover fell by 17.8 per cent
to EUR 5.8 million (2008: EUR 7.0 million). Operating loss increased to EUR 0.6
million (2008: EUR 0.1 million), -9.6 per cent of turnover. The decrease in
turnover was caused by generally weakened demand for services in the ICT
industry after the global financial crisis as well as by a reduced project
stock, particularly regarding operator customers.
TURNOVER
Consolidated turnover was EUR 17.4 million (2008: EUR 18.3 million), which is
4.5 per cent less than in the previous year. The Mobile Terminals & Software
segment accrued 54 per cent (2008: 44 per cent) of turnover, the Business
Solutions segment accrued 33 per cent (2008: 39 per cent), and the Media &
Communities segment accrued 13 per cent (2008: 18 per cent).
TURNOVER BY SEGMENT
--------------------------------------------------------------------------------
| EUR 1,000 | 1-3 2009 | 1-3 2008 | 1-12 2008 |
--------------------------------------------------------------------------------
| Mobile Terminals & | 9,403 | 7,984 | 33,830 |
| Software | | | |
--------------------------------------------------------------------------------
| Media & Communities | 2,235 | 3,222 | 12,679 |
--------------------------------------------------------------------------------
| Business Solutions | 5,806 | 7,061 | 28,606 |
--------------------------------------------------------------------------------
| Group total | 17,443 | 18,268 | 75,115 |
--------------------------------------------------------------------------------
FINANCIAL RESULT
Consolidated operating profit was EUR -0.0 million (2008: EUR 0.7 million);
profit before taxes was EUR -0.3 million (2008: EUR 0.5 million). Profit for the
review period was EUR -0.2 million (2008: EUR 0.4 million). Diluted earnings per
share were EUR -0.03 (2008: EUR 0.04). Diluted cash flow from operating
activities was EUR 0.02 per share (2008: EUR -0.09). The decreased personnel
utilization rate at the beginning of the review period is the main reason for
the reduced operating profit. Dismissal pay related to adaptation measures was
recorded in the amount of EUR 0.3 million during the first quarter.
OPERATING PROFIT BY SEGMENT
--------------------------------------------------------------------------------
| EUR 1,000 | 1-3 2009 | 1-3 2008 | 1-12 2008 |
--------------------------------------------------------------------------------
| Mobile Terminals & | 1,044 | 1,036 | 4,775 |
| Software | | | |
--------------------------------------------------------------------------------
| Media & Communities | 165 | 363 | 1,601 |
--------------------------------------------------------------------------------
| Business Solutions | - 555 | - 121 | 1,240 |
--------------------------------------------------------------------------------
| Administration | - 667 | - 617 | - 1,493 |
--------------------------------------------------------------------------------
| Group total | -13 | 661 | 6,123 |
--------------------------------------------------------------------------------
RATIONALIZATION PROGRAM
On 12 February 2009, Ixonos commenced co-operation negotiations with its
personnel in order to rationalize operations and improve profitability. The
negotiations took place on an accelerated schedule, and they were completed on
10 March 2009. The cooperation negotiations concerned the Ixonos Group's
administration and support functions as well as its sites in Finland. As a
result of the negotiations, the bonus program for the entire personnel was
abandoned for 2009, and the additional holiday pay accrued for the holiday
season 2008-2009 will be reduced to a third of its normal amount. Additionally,
the company's top management will waive one monthly salary in 2009. As an
outcome of the negotiations, 25 employees were dismissed from the Ixonos Group.
The dismissals focus on employees producing services for which the company does
not expect sufficient future demand and that are under increasing international
price pressure. The realized savings will amount to approximately EUR 3 million
per year from the second quarter of this year.
The negotiations also resulted in an agreement that a maximum of 50 employees
may be laid off in April, May or June for not more than five months, if demand
for the company's services weakens because of the market situation. Laid-off
employees will receive personal protection against dismissal for six months,
beginning on the first day of their lay-off. The company has initiated temporary
lay-offs of 28 employees. The lay-offs will take effect from 5 May 2009. To
increase productivity, the company continues to rationalize its operations.
RETURN ON CAPITAL
Consolidated return on equity (ROE) was -3.7 per cent (2008: 6.1 per cent);
return on investment (ROI) was -0.0 per cent (2008: 5.7 per cent).
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 58.8 million (2008: EUR 50.0 million).
Shareholders' equity was EUR 24.9 million (2008: EUR 21.9 million). The equity
ratio was 42.4 per cent (2008: 43.9 per cent). The Group's liquid assets
amounted to EUR 2.3 million (2008: EUR 0.8 million) at the end of the review
period.
GOODWILL
On 31 March 2009, the consolidated balance sheet included EUR 30.1 million in
goodwill. This is a decrease of EUR 2.1 million during the review period (31
December 2008: EUR 32.2 million). In 2007, the company acquired Cidercone
Life-Cycle Solutions Oy (later Ixonos Outsourcing Services Ltd). The changed
additional price of this acquisition has affected the decrease in goodwill.
During the review period, the company continued its investigations into the
additional acquisition price. This price is presently estimated at EUR 7.8
million (31 December 2008: EUR 9.9 million). The acquisition price has been
entered into the consolidated balance sheet as an interest-bearing current
liability. The amount of the price is based on Ixonos Plc's view of the correct
additional acquisition price. Negotiations with the seller have not led to
consensus on the amount of the additional acquisition price. Based on
preliminary comments received earlier from the selling party, the additional
acquisition price carries a risk of a supplementary demand of approximately EUR
8 million. The company considers the possible supplementary demand unfounded.
CASH FLOW
Consolidated cash flow from operating activities was EUR 0.2 million (2008: EUR
-0.8 million) during the review period. The change was due to a reduction in
funds tied to operating activities.
PERSONNEL
The number of personnel averaged 971 (2008: 923) during the review period, and
was 975 (2007: 937) at the end of the period.
SHARES AND SHARE CAPITAL
Share turnover and price
During the review period, the highest price of the company's share was EUR 2.59
(2008: EUR 6.15), and the lowest EUR 1.80 (2008: EUR 4.26). The closing price on
31 March 2009 was EUR 1.88 (2008: EUR 4.40). The average price over the review
period was EUR 2.07 (2008: EUR 4.83). The number of shares traded during the
review period was 1,035,361 (2008: 1,117,467), which corresponds to 11.1 per
cent (2007: 13 per cent) of the total number of shares at the end of the review
period. The market value of the company's shares, according to the closing price
on 31 March 2009, was EUR 17,508,607 (2008: EUR 39,197,972).
Share capital
At the beginning of 2009, the company's registered share capital was EUR
370,123.56; the number of shares was 9,253,089. During December 2008, a total of
60,000 shares were subscribed for based on the 2002 stock option plan II. The
increase in share capital was entered into Finland's Trade Register on 6 March
2009. Ixonos' share capital was EUR 372,523.56 at the end of the review period;
the total number of shares was 9,313,089.
Option plan 2006
Under the 2006 stock options plan, 140,000 options have been released under AI,
140,000 options have been released under AII, and 60,000 options have been
released 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 for with outstanding options under options plan 2006 is
391,500, which is equivalent to 4.2 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 AII and BI options began on 1 October 2008, and that for
BII options will begin on 1 October 2009. The subscription price is EUR 4.13
with AI and AII options, and EUR 5.10 with BI and BII options. The subscription
period for the 2006 options will end on 31 December 2011.
Shareholders
There were 2,801 shareholders on 31 March 2009 (2008: 2,976). Private persons
owned 59 per cent (2008: 57 per cent) and institutions 41 per cent (2008: 43 per
cent) of the shares. Foreign ownership was 2 per cent (2008: 3 per cent) of the
total number of shares.
Board authorizations
At the end of the review period, the Board of Directors had no valid
authorizations pertaining to the company's shares.
DECISIONS OF THE ANNUAL GENERAL MEETING
Ixonos Plc held its Annual General Meeting on 19 March 2009. The meeting adopted
the company's financial statements, including the consolidated financial
statements, for the financial period 1 January - 31 December 2008 and granted
discharge from liability to the members of the Board of Directors and to the
President and CEO.
As per the Board's proposal, the meeting decided that no dividend would be paid
for the financial period. Considering the investments necessary for developing
and internationalizing the company's business operations, as well as the
preparations for settling the additional acquisition price for Cidercone
Life-Cycle Solutions Oy (later Ixonos Outsourcing Services Ltd), the Board of
Directors proposed to the Annual General Meeting that the distributable assets
be carried over in shareholders' equity, and that no dividend for the financial
period 2008 be paid to shareholders.
The Annual General Meeting confirmed the number of Board members to be seven.
The meeting re-elected Board members Matti Järvinen, Tero Laaksonen, Matti
Makkonen, Esko Siik and Markku Toivanen, and elected Peter Eriksson and Pertti
Ervi as new Board members. At its meeting following the Annual General Meeting,
the Board of Directors re-elected Tero Laaksonen Chairman of the Board, and
elected Pertti Ervi Deputy Chairman.
The Annual General Meeting decided to remunerate the Chairman of the Board of
Directors with EUR 30,000 per year and EUR 500 per meeting, the Deputy Chairman
of the Board with EUR 22,500 per year and EUR 250 per meeting, and other Board
members with EUR 15,000 per year and EUR 250 per meeting. The meeting also
decided to pay a fee of EUR 500 per meeting to the chairpersons of the Board's
committees, and a fee of EUR 250 per meeting to committee members.
Authorized public accountants Heikki Lassila and PricewaterhouseCoopers Oy were
re-nominated as the Company's auditors. The Annual General Meeting decided to
pay the auditor a fee as per a reasonable invoice.
EVENTS AFTER THE FINANCIAL PERIOD
On 6 April 2009, Finland's Financial Supervisory Authority approved the base
prospectus of Ixonos Plc. Base prospectuses are prescribed in Finland's
Securities Markets Act (495/1989). Ixonos Plc's base prospectus contains
information on the company, on its business operations, and on its financial
standing. The prospectus is valid for 12 months after its publication. It is
available in electronic form on the company's website, at
http://www.ixonos.com/en/investors/, throughout its validity. The prospectus has
not been printed up, but printouts are available from the company's head office
(Ixonos Plc, Hitsaajankatu 24, 00810 Helsinki, Finland). The base prospectus has
been published only in Finnish; it is not available in other languages.
Ixonos Plc paid EUR 7.8 million as the additional acquisition price in
accordance with the share purchase agreement, signed on 4 September 2007, for
Cidercone Life-Cycle Solutions Oy. This amount is based on Ixonos Plc's view of
the correct additional acquisition price. Negotiations with the seller have not
led to consensus on the amount of the additional acquisition price. Ixonos
funded the payment of the additional acquisition price through undertaking EUR 4
million in non-current liabilities as well as EUR 4 million in current
liabilities. The borrowings used for funding do not add to the interest-bearing
liabilities in the balance sheet, as the entire additional acquisition price was
already included under interest-bearing current liabilities, as IFRS provisions
require. Based on preliminary comments received earlier from the selling party,
the additional acquisition price carries a risk of a supplementary demand of
approximately EUR 8 million. The company considers the possible supplementary
demand unfounded.
Under the share purchase agreement, if consensus on the amount of the additional
acquisition price is not reached, the party that is unsatisfied with the
decision can commence arbitration proceedings in accordance with the Arbitration
Rules of the Finnish Central Chamber of Commerce.
Expanding the site network
In April 2009, the company opened sites in Boston, USA, and in Copenhagen,
Denmark. The new sites relate to the company's strategy of operating close to
its major customers.
Affiliate merger
On 1 January 2009, Ixonos Outsourcing Services Ltd was merged with Ixonos
Project Management Services Ltd in an affiliate merger. The name of the new
company became Ixonos Finland OICT Ltd. The Group intends to continue
simplifying its legal structure; this will reduce administrative work related to
legal entities.
RISK MANAGEMENT AND NEAR-FUTURE UNCERTAINTY FACTORS
Ixonos Plc's risk management aims to ensure undisturbed continuity and
development of the company's business operations, to back up the implementation
of the operational targets set by the company, and to support increasing the
company's value. Details on the risk management organization and process as well
as on recognized risks are presented on the company's website, at
http://www.ixonos.com/en/investors/risk_management.
Presently, the major uncertainty factors relate to the global financial crisis
and its potential ramifications. The general financial uncertainty and the
tightened credit conditions also influence corporate investments as well as
willingness to invest. The prevailing economic uncertainty also seems to affect
the information-system development investments of Ixonos' customers; such
investments may be put on hold, or the decisions regarding them may be
postponed.
Ixonos' acquisitions, its rapid growth in 2006-2008, and the upswing in its
project operations have increased the company's requirement for working capital.
The company manages this need by creating adequate buffers to ensure sufficient
funds together with the financiers, as well as by facilitating the circulation
of working capital. The company's balance sheet also includes a significant
amount of goodwill, which may be impaired should either internal or external
factors reduce the company's profit expectations. Goodwill is tested during the
fourth quarter of the year, and, if necessary, at other times.
Ixonos has access to the cash funds required by its normal operations. Ixonos
Plc paid EUR 7.8 million as the additional acquisition price in accordance with
the share purchase agreement, signed on 4 September 2007, for Cidercone
Life-Cycle Solutions Oy. This amount is based on Ixonos Plc's view of the
correct additional acquisition price. Negotiations with the seller have not led
to consensus on the amount of the additional acquisition price.
Under the share purchase agreement, if consensus on the amount of the additional
acquisition price is not reached, the party that is unsatisfied with the
decision can commence arbitration proceedings in accordance with the Arbitration
Rules of the Finnish Central Chamber of Commerce.
FUTURE PROSPECTS
The effects of the global financial crisis strongly affect also the IT service
industry. According to Gartner research, the industry's total volume will
decrease globally in 2009. Ixonos' customer companies are more cautious than
usually in their software and information system investments and in commencing
new projects. Price pressure also affects services, particularly in relation to
international customers.
Because of the general economic uncertainty, the predictability of the
information technology market is very low. The company's turnover and operating
profit for the second quarter are anticipated to be lower than in the previous
year due to the difficult market situation. However, operating profit is
envisaged to be positive as well as satisfactory considering the market
conditions. Due to the market situation, the company's turnover for the entire
year is expected to be lower than in the previous year. Nevertheless, one of the
company's objectives for the present year is to continue developing services,
expanding service production in lower-cost countries, and maintaining cash flow
from business operations as well as profitability.
NEXT REPORT
Ixonos will publish its interim report for the period 1 January - 30 June 2009
on 5 August 2009.
IXONOS PLC
Board of Directors
For more information, please contact:
Ixonos Plc
Kari Happonen, President and CEO
telephone +358 424 2231, mobile +358 400 700 761, email kari.happonen@ixonos.com
Timo Leinonen, CFO
telephone +358 424 2231, mobile +358 400 793 073, email timo.leinonen@ixonos.com
Distribution:
NASDAQ OMX Helsinki
Main media
IXONOS GROUP
ABBREVIATED FINANCIAL STATEMENTS 1 JANUARY - 31 MARCH 2009
Accounting policies
The interim report has been prepared in accordance with the recognition and
valuation principles in the International Financial Reporting Standards (IFRS),
but not all the requirements of IAS 34 have been applied. As from 1 January
2009,the Group has applied the following new and revised standards: IFRS 8
Operating Segments and IAS 1 Presentation of Financial Statements. In other
respects, the same accounting policies and principles have been applied as in
the previous financial statements.
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 INCOME STATEMENT, EUR 1,000
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | Change, | 1.1.- |
| | 31.3.2009 | 31.3.2008 | per cent | 31.12.2008 |
--------------------------------------------------------------------------------
| Turnover | 17,443 | 18,268 | - 4.5 | 75,115 |
--------------------------------------------------------------------------------
| Operating costs | - 17,456 | - 17,607 | - 0.9 | - 68,992 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | - 13 | 661 | - 101.9 | 6,123 |
--------------------------------------------------------------------------------
| Financial income and | - 323 | - 162 | 99.8 | - 1,406 |
| costs | | | | |
--------------------------------------------------------------------------------
| Profit before tax | - 336 | 499 | - 167.3 | 4,717 |
--------------------------------------------------------------------------------
| Income tax | 104 | - 130 | - 179.8 | - 1,203 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD | - 232 | 369 | - 162.9 | 3,514 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF | | | | |
| COMPREHENSIVE INCOME, EUR | | | | |
| 1,000 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit for the period | - 232 | 369 | - 162.9 | 3,514 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive | | | | |
| income | | | | |
--------------------------------------------------------------------------------
| Change in translation | - 8 | 0 | | - 16 |
| difference | | | | |
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE | - 240 | 369 | - 165.0 | 3,498 |
| INCOME FOR THE PERIOD | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, EUR 1,000
--------------------------------------------------------------------------------
| ASSETS | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Goodwill | 30,133 | 23,307 | 32,195 |
--------------------------------------------------------------------------------
| Intangible assets | 6,113 | 6,167 | 6,632 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 3,201 | 1,402 | 3,147 |
--------------------------------------------------------------------------------
| Deferred tax assets | 205 | 73 | 41 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 110 | 110 | 110 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 39,762 | 31,058 | 42,125 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 16,655 | 18,118 | 17,681 |
--------------------------------------------------------------------------------
| Financial assets | 0 | 152 | 0 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 2,341 | 642 | 2,913 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 18,996 | 18,912 | 20,594 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 58,758 | 49,970 | 62,719 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | 373 | 356 | 370 |
--------------------------------------------------------------------------------
| Share premium reserve | 219 | 4,588 | 121 |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 100 |
--------------------------------------------------------------------------------
| Invested non-restricted equity | 14,808 | 8,869 | 14,808 |
| fund | | | |
--------------------------------------------------------------------------------
| Retained earnings | 9,736 | 7,767 | 6,221 |
--------------------------------------------------------------------------------
| Net profit for the period | - 232 | 369 | 3,514 |
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS´ EQUITY | 24,903 | 21,949 | 25,135 |
--------------------------------------------------------------------------------
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 9 754 | 8,236 | 10,532 |
--------------------------------------------------------------------------------
| Current liabilities | 24,101 | 19,785 | 27,052 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 33,855 | 28,021 | 37,584 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 58,758 | 49,970 | 62,719 |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY, EUR 1,000
--------------------------------------------------------------------------------
| | Share | Share | Share |Invested | Transla | Retained| Total |
| |capital|premium | issue | non- | tion | earn | |
| | |reserve | | res | diffe | nings| |
| | | | | tricted | rence | | |
| | | | | equity | | | |
| | | | | fund | | | |
--------------------------------------------------------------------------------
|Shareholder´s| 355 | 4,512 | 77 | 8,869 | 0 | 7,734 | 21,548 |
| equity | | | | | | | |
| at 1 | | | | | | | |
| January | | | | | | | |
| 2008 | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | 33 | 33 |
| remuneration| | | | | | | |
| expense | | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 1 | 76 | - 77 | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | | |
--------------------------------------------------------------------------------
| Comprehen | | | | | | 369 | 369 |
| sive income | | | | | | | |
| for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
|Shareholder´s| 356 | 4,588 | | 8,869 | | 8,135 | 21,949 |
| equity | | | | | | | |
| at 31 March | | | | | | | |
| 2008 | | | | | | | |
--------------------------------------------------------------------------------
|Shareholder´s| 370 | 121 | 100 | 14,808 | - 16 | 9,751 | 25,135 |
| equity | | | | | | | |
| at 1 | | | | | | | |
| January | | | | | | | |
| 2009 | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | 8 | 8 |
| remuneration| | | | | | | |
| expense | | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 2 | 98 | - 100 | | | | 0 |
--------------------------------------------------------------------------------
| Dividends | | | | | | | |
--------------------------------------------------------------------------------
|Comprehensive| | | | | - 8 | - 232 | - 239 |
| income | | | | | | | |
| for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
|Shareholder´s| 373 | 219 | 0 | 14,808 | - 23 | 9,527 | 24,903 |
| equity | | | | | | | |
| at 31 March | | | | | | | |
| 2009 | | | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | 1.1.- |
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Cash flow from operating | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Profit for the period | - 232 | 369 | 3,514 |
--------------------------------------------------------------------------------
| Adjustments to cash flow from | | | |
| operating activities | | | |
--------------------------------------------------------------------------------
| Tax | - 104 | 130 | 1,203 |
--------------------------------------------------------------------------------
| Depreciation and impairment | 768 | 547 | 2,464 |
--------------------------------------------------------------------------------
| Change in provisions | 0 | 0 | - 93 |
--------------------------------------------------------------------------------
| Financial income and costs | 323 | 162 | 1,406 |
--------------------------------------------------------------------------------
| Other adjustments | 8 | 33 | 98 |
--------------------------------------------------------------------------------
| Cash flow from operating | 764 | 1,240 | 8,593 |
| activities before change in | | | |
| working capital | | | |
--------------------------------------------------------------------------------
| Change in working capital | - 41 | - 1,589 | - 665 |
--------------------------------------------------------------------------------
| Interest received | 3 | 10 | 165 |
--------------------------------------------------------------------------------
| Interest paid | - 157 | - 133 | - 596 |
--------------------------------------------------------------------------------
| Gains from sales of fixed assets | 1 | - 19 | - 21 |
--------------------------------------------------------------------------------
| Tax paid | - 398 | - 320 | - 1,229 |
--------------------------------------------------------------------------------
| Net cash flow from operating | 171 | - 811 | 6,246 |
| activities | | | |
--------------------------------------------------------------------------------
| Cash flow from investing | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Investments in tangible and | - 7 | - 527 | - 4,556 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Change in financial assets | 0 | - 1 | 143 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 0 | 0 | - 3,109 |
--------------------------------------------------------------------------------
| Net cash flow from investment | - 7 | - 528 | - 7,521 |
| activities | | | |
--------------------------------------------------------------------------------
| Net cash flow before financing | 164 | - 1,339 | - 1,274 |
--------------------------------------------------------------------------------
| Cash flow from financing | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Dividends paid | 0 | 0 | - 1,604 |
--------------------------------------------------------------------------------
| Increase in long-term borrowings | 0 | 0 | 6,417 |
--------------------------------------------------------------------------------
| Repayment of long-term | 0 | 0 | - 3,400 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Increase in short-term | 0 | 0 | 2,787 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Repayment of short-term | - 736 | - 350 | - 2,490 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 146 |
--------------------------------------------------------------------------------
| Net cash flow from financing | - 736 | - 350 | 1,856 |
| activities | | | |
--------------------------------------------------------------------------------
| Change in cash and cash | - 572 | - 1,689 | 582 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Liquid assets at start of period | 2,913 | 2,331 | 2,331 |
--------------------------------------------------------------------------------
| Liquid assets at end of period | 2,341 | 642 | 2,913 |
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT, QUARTERLY, EUR 1,000
--------------------------------------------------------------------------------
| | Q1/2009 | Q4/2008 | Q3/2008 | Q2/2008 | Q1/2008 |
| | 1.1.09- | 1.10.08- | 1.7.08- | 1.4.08- | 1.1.08- |
| | 31.3.09 | 31.12.08 | 30.9.08 | 30.6.08 | 31.3.08 |
--------------------------------------------------------------------------------
| Turnover | 17,443 | 20,475 | | 19,721 | 18,268 |
| | | | 16,651 | | |
--------------------------------------------------------------------------------
| Operating costs | - 17,456 | - 17,922 | - 15,318 | - 18,145 | - 17,607 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 13 | 2,553 | 1,333 | 1,576 | 661 |
--------------------------------------------------------------------------------
| Finance income | - 323 | - 521 | - 367 | - 355 | - 162 |
| and costs | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 336 | 2,032 | 966 | 1,220 | 499 |
--------------------------------------------------------------------------------
| Income tax | 104 | - 486 | - 304 | - 283 | - 130 |
--------------------------------------------------------------------------------
| PROFIT FOR THE | - 232 | 1,546 | 662 | 938 | 369 |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
SEGMENT REPORT
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | 1.1.- |
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Turnover by segment | | | |
--------------------------------------------------------------------------------
| Mobile Terminals & Software | 9,403 | 7,984 | 33,830 |
--------------------------------------------------------------------------------
| Media & Communities | 2,235 | 3,222 | 12,679 |
--------------------------------------------------------------------------------
| Business Solutions | 5,806 | 7,061 | 28,606 |
--------------------------------------------------------------------------------
| Total turnover | 17,443 | 18,268 | 75,115 |
--------------------------------------------------------------------------------
| Operating profit by segment | | | |
--------------------------------------------------------------------------------
| Mobile Terminals & Software | 1,044 | 1,036 | 4,775 |
--------------------------------------------------------------------------------
| Media & Communities | 165 | 363 | 1,601 |
--------------------------------------------------------------------------------
| Business Solutions | - 555 | - 121 | 1,240 |
--------------------------------------------------------------------------------
| Administration | - 667 | - 617 | - 1,493 |
--------------------------------------------------------------------------------
| Total operating profit | 13 | 661 | 6,123 |
--------------------------------------------------------------------------------
| Operating profit, per cent of | - 0.1 | 3.6 | 8.2 |
| turnover | | | |
--------------------------------------------------------------------------------
| Interest and finance income | - 323 | - 162 | - 1,406 |
--------------------------------------------------------------------------------
| Profit before tax | - 336 | 499 | 4,717 |
--------------------------------------------------------------------------------
| Tax | 104 | - 130 | - 1,203 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | - 232 | 369 | 3,514 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CHANGES IN FIXED ASSETS, EUR 1,000
--------------------------------------------------------------------------------
| | Goodwill| Intan | Property, | Other | Total |
| | | gible | plant and | tangible | |
| | | assets | equipment | assets | |
--------------------------------------------------------------------------------
| Carrying amount | 21,067 | 6,282 | 1,332 | 110 | 28,791 |
| at 1 January | | | | | |
| 2008 | | | | | |
--------------------------------------------------------------------------------
| Additions | 2,240 | 306 | 585 | | 3,131 |
--------------------------------------------------------------------------------
| Disposals | | | - 389 | | - 389 |
--------------------------------------------------------------------------------
| Depreciation and | | - 420 | - 126 | | - 547 |
| amortization | | | | | |
| during the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Carrying amount | 23,307 | 6,167 | 1,402 | 110 | 30,986 |
| at 31 March 2008 | | | | | |
--------------------------------------------------------------------------------
| Carrying amount | 32,195 | 6,632 | 3,146 | 110 | 42,084 |
| at 1 January | | | | | |
| 2009 | | | | | |
--------------------------------------------------------------------------------
| Additions | | 17 | 297 | | 315 |
--------------------------------------------------------------------------------
| Disposals | - 2,062 | | - 12 | | - 2,074 |
--------------------------------------------------------------------------------
| Depreciation and | | - 537 | - 231 | | - 768 |
| amortization | | | | | |
| during the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Carrying amount | 30,133 | 6,113 | 3,201 | 110 | 39,557 |
| at 31 March 2009 | | | | | |
--------------------------------------------------------------------------------
FINANCIAL RATIOS
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | 1.1.- |
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Earnings per share, diluted, EUR | - 0.03 | 0.04 | 0.39 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | - 0.03 | 0.04 | 0.39 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 2.67 | 2.46 | 2.72 |
--------------------------------------------------------------------------------
| Cash flow from operating | 0.02 | - 0.09 | 0.69 |
| activities, per share, diluted, | | | |
| EUR | | | |
--------------------------------------------------------------------------------
| Return on investment, per cent | 0.0 | 5.7 | 15.9 |
--------------------------------------------------------------------------------
| Return on equity, per cent | - 3.7 | 6.1 | 15.1 |
--------------------------------------------------------------------------------
| Operating profit / turnover, per | - 0.1 | 3.6 | 8.2 |
| cent | | | |
--------------------------------------------------------------------------------
| Net gearing | 68.4 | 51.2 | 74.8 |
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | 1.1.- |
| | 31.3.2009 | 31.3.2007 | 31.12.2008 |
--------------------------------------------------------------------------------
| PERSONNEL | 971 | 923 | 930 |
| Average number of personnel | | | |
--------------------------------------------------------------------------------
| Personnel at the end of the period | 975 | 937 | 957 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| COMMITMENTS, EUR 1,000 | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Collateral for own commitments | | | |
--------------------------------------------------------------------------------
| Corporate mortgages | 9,800 | 9,800 | 9,800 |
--------------------------------------------------------------------------------
| Other collateral | 0 | 310 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing and other rental | | | |
| commitments | | | |
--------------------------------------------------------------------------------
| Falling due within 1 year | 3,923 | 3,461 | 3,968 |
--------------------------------------------------------------------------------
| Falling due within 1-5 years | 7,596 | 7,522 | 8,365 |
--------------------------------------------------------------------------------
| Falling due after 5 years | 0 | 246 | 0 |
--------------------------------------------------------------------------------
| Total | 11,520 | 11,230 | 12,332 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal value of interest rate | | | |
| swap agreement | | | |
--------------------------------------------------------------------------------
| Falling due within 1 year | 0 | 1,400 | 0 |
--------------------------------------------------------------------------------
| Falling due within 1-5 years | 6,307 | 2,100 | 6,443 |
--------------------------------------------------------------------------------
| Falling due after 5 years | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total | 6,307 | 3,500 | 6,443 |
--------------------------------------------------------------------------------
| Fair value | - 205 | - 12 | - 141 |
--------------------------------------------------------------------------------
CALCULATION OF KEY FIGURES
Diluted earnings per share = profit for the period / number of shares, adjusted
for issues and dilution, average
Earnings per share = profit for the period / number of shares, adjusted for
issues, average
Shareholders' equity per share = shareholders' equity / number of shares,
undiluted, on the closing date
Cash flow from operating activities, per share, diluted = net cash flow from
operating activities / number of shares, adjusted for issues and dilution,
average
Return on investment (ROI) = (profit before taxes + interest + other financial
expenses) / balance sheet total - non-interest-bearing liabilities, average x
100
Return on equity (ROE) = net profit / shareholders' equity, average x 100
Gearing = interest-bearing liabilities - liquid assets / shareholders' equity x
100
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