TECTIA CORPORATION INTERIM REPORT APRIL 21, 2010 AT 9:00 A.M.
TECTIA INTERIM REPORT, JANUARY 1 - MARCH 31, 2010
January-March
- Net sales totaled EUR 2.3 million, up by 24.4 % percent year on year (EUR 1.9
million in 1-3/2009).
- Operating loss amounted to EUR -0.0 million (an operating loss of EUR -0.8
million in 1-3/2009), profit EUR 0.0 million (EUR -0.6 million).
- Earnings per share EUR 0.00 (EUR -0.02).
The company's financial position remained healthy, with equity ratio 66.3 %
(81.7%) and liquid assets at the end of the period EUR 5.2 million (EUR 7.5
million).
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| KEY FIGURES | | | | |
--------------------------------------------------------------------------------
| | 1-3/ | 1-3/ | Change % | 1-12/ |
| | 2010 | 2009 | | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales (MEUR) | 2.3 | 1.9 | 24.4 | 8.8 |
--------------------------------------------------------------------------------
| Operating profit/loss (MEUR) | -0.0 | -0.8 | 92.1 | -1.5 |
--------------------------------------------------------------------------------
| % of net sales | -1.8 | -40.7 | | -17.1 |
--------------------------------------------------------------------------------
| Profit/loss before taxes (MEUR) | 0.0 | -0.6 | 105.6 | -1.2 |
--------------------------------------------------------------------------------
| Profit/loss (MEUR) | 0.0 | -0.6 | 105.6 | -1.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, % | 0.0 | -22.5 | | -12.4 |
--------------------------------------------------------------------------------
| Return on investment, % | 0.0 | -21.8 | | -10.8 |
--------------------------------------------------------------------------------
| Liquid assets | 5.2 | 7.5 | -30.8 | 6.4 |
--------------------------------------------------------------------------------
| Gearing (%) | -179.8 | -139.2 | | -144.2 |
--------------------------------------------------------------------------------
| Equity ratio (%) | 66.3 | 81.7 | | 71.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EUR) | 0.00 | -0.02 | 105.3 | -0.04 |
--------------------------------------------------------------------------------
| Shareholders' equity per share | 0.10 | 0.18 | -50.8 | 0.15 |
| (EUR) | | | | |
--------------------------------------------------------------------------------
CEO's BUSINESS REVIEW
The company continued efforts on developing the company into a sales and
marketing oriented security software company started on the second half 2009.
Net sales amounted to EUR 2.3 million with an increase of 24.4 percent compared
to the previous year. The cost savings were -12 percent in expenses during the
first quarter of 2010 compared to the previous year. At the same time the
company invested in sales and marketing. The operating profit was EUR 0.0
million. The company's financial position remained healthy with an equity ratio
of 66.3 percent and EUR 5.2 million liquid assets.
The company signed enterprise-class security solution agreements in the Americas
with the professional services and IT solutions organization for federal
government and defence, one of the largest German banks for its U.S. operations,
a NYSE stock-listed retailer, a top-ranked global research university and a
leading Canadian-based global financial institution. In Europe the company
signed customer agreements with ACGO Sisu Power, world's leading makers of
diesel engines and Stockmann, a Finnish retailer for their secure authentication
and distribution solutions.
The company strengthened its role in the Asia-Pacific region and opened an
office in Hong Kong. The purpose is to establish a local presence that will
allow the company to bring the benefits of its secure communications solutions
to customers in the Asia-Pacific region. The regional hub will also offer more
effective support to existing, regional channel partners.
As part of the value-creating offering development, the company launched SSH
Tectia MobileID authentication platform. It is a strong two-factor
authentication service that utilizes fast and the most readily available
authentication device, the end user's existing mobile phone, to provide higher
security and ease of use for user authentication to various enterprise services.
In the home market the company announced a strategic partnership with Javerdel,
a Finnish ICT service provider and Santa Monica Networks, a Finnish provider of
demanding data network solutions. The objective of the parties is to offer fast
and the most convenient mobile security to local enterprise customers.
The Annual General Meeting decided that the business of SSH Communications
Security Corp. will be unified under one brand, Tectia. In order to rebuild its
corporate image and marketing communications, the company appointed a new
marketing director. Along the lines, the company continued brand and
communications strategy program with its marketing partner. The results will be
launched within the first half of 2010.
The renewal of enterprise resource planning (ERP) system was initialized with
the objective to replace the existing ERP systems with more dynamic and
reporting friendly solution by the end of first half.
The key strategic objective is to continue efforts on developing the company
into a sales and marketing oriented security software company with strong
value-added offering and customer focus.
For the fiscal year 2010, SSH estimates its net sales to grow from 2009 and
expects the net result to be positive.
NET SALES
Consolidated net sales for January-December totaled EUR 2.3 million (EUR 1.9
million), up by 24.4 %, year on year.
The Americas, the Europe, Middle East and Africa market area and the Asia
Pacific region accounted for 73.9 percent (65.1 percent), 18.4 percent (23.6
percent) and 7.7 percent (11.3 percent) of reported net sales, respectively.
--------------------------------------------------------------------------------
| TECTIA NET SALES | | | | |
--------------------------------------------------------------------------------
| EUR Million | 1-3/ | 1-3/ 2009 | Change % | 1-12/ |
| | 2010 | | | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BY SEGMENT | | | | |
--------------------------------------------------------------------------------
| AMERICAS | 1.7 | 1.2 | 41.2 | 5.5 |
--------------------------------------------------------------------------------
| APAC | 0.2 | 0.2 | -15.2 | 0.8 |
--------------------------------------------------------------------------------
| EMEA | 0.4 | 0.4 | -2.9 | 2.5 |
--------------------------------------------------------------------------------
| Tectia Group Total | 2.3 | 1.9 | 24.4 | 8.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BY OPERATION | | | | |
--------------------------------------------------------------------------------
| License sales | 1.0 | 0.6 | 63.1 | 4.1 |
--------------------------------------------------------------------------------
| Maintenance | 1.3 | 1.2 | 4.3 | 4.7 |
--------------------------------------------------------------------------------
| Total | 2.3 | 1.9 | 24.4 | 8.8 |
--------------------------------------------------------------------------------
The majority of Tectia's invoicing is U.S. dollar based. During the report
period, the U.S. dollar's average exchange rate to euro weakened approximately
6.3 percent compared to the same period a year ago. At constant currency, net
sales would have increased 30.3 percent compared to corresponding period in
2009.
RESULTS AND EXPENSES
Operating loss for January-March amounted to EUR -0.0 million (an operating loss
of EUR -0.8 million), with net profit totaling EUR 0.0 million (a loss of EUR
-0.6 million). On-going cost savings program reduced costs by EUR -0.4 million
and -12 percent compared to corresponding period. There are no relevant
transactions after reporting period that would affect on company's results and
profitability.
Research and development expenses for the report period totaled EUR 0.5 million
(EUR 0.9 million), while sales, marketing and customer support expenses amounted
EUR 1.2 million (EUR 1.1 million) and administrative expenses EUR 0.6 million
(EUR 0.6 million). Organizational change took in place starting from 2010 where
customer support -unit from research and development was transferred to
management of sales and marketing as part of Customer Market Operations (CMO)
organization. Previous corresponding figures are according to old organizational
structure. Costs of transferred functions are EUR 0.3 million for first quarter
2010. Effect on corresponding figures are EUR 0.3 million for first quarter 2009
and EUR 1.0 million for total 2009.
BALANCE SHEET AND FINANCIAL POSITION
The financial position of Tectia remained at a healthy level during the report
period, despite the capital returned to shareholders. The consolidated balance
sheet total on March 31, 2010 stood at EUR 7.1 million (EUR 9.3 million), of
which liquid assets accounted for EUR 5.2 million (EUR 7.4 million), or 72.7
percent of the balance sheet total. On December 31, 2009, gearing, or the ratio
of net liabilities to shareholders' equity, was -179.8 percent (-139.2) and the
equity ratio stood at 66.3 percent (81.7).
The reported gross capital expenditure for the period totalled EUR 0.0 million
(EUR 0.0 million). The reported financial income consisted mainly of interest on
fixed-term deposits and exchange rate gains. Financial income and expenses
totalled EUR 0.1 million (EUR 0.2 million).
During January-March, Tectia reported a positive cash flow of EUR 0.1 million
(EUR -0.6 million) from business operations, and investments showed a negative
cash flow of EUR 0.0 million (EUR 8.6 million). Cash flow from financing totaled
EUR -1.9 million (EUR -8.5 million), mainly consisting of capital returned to
shareholders and investments to short-term financial assets. Total cash flow
from operations, investments and financing was negative EUR 1.8 million (EUR
-0.5 million) during the period.
RESEARCH AND DEVELOPMENT
Research and development expenses for January-March totaled EUR 0.5 million (EUR
0.7 million), the equivalent of 22.7 percent of net sales (35.7 percent). During
the report period Tectia did not capitalize any research and development
expenses.
HUMAN RESOURCES AND ORGANIZATION
At the end of March, the Group had 65 employees on its payroll, down by 3 from
the previous year, a decrease of 4 percent.
At the end of the period, 40 percent of the employees worked in R&D, 40 percent
in sales and marketing, and 20 percent in corporate administration.
BOARD AND AUDITORS
The Annual General Meeting (AGM) on March 4, 2009 elected Juhani Harvela, Pyry
Lautsuo, Juho Lipsanen, Juha Mikkonen, Tiia Tuovinen and Tatu Ylönen to the
Board of Directors. Juho Lipsanen was elected as a chairman of the board.
The AGM elected KPMG Oy, authorized public accountants, as the company's auditor
for financial period 2010, with Kirsi Jantunen, authorized public accountant,
acting as the principal auditor.
SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE
The reported trading volume of Tectia Corporation shares totaled 1 628 893
(valued at EUR 1 366 148). The highest quotation was EUR 0.98 and the lowest EUR
0.76 The trade-weighted average share price for the period was EUR 0,84 and the
share closed at EUR 0,84(March 31, 2010).
Company's principal owner Tatu Ylönen holdings directly and through his company,
Tatu Ylönen Oy, holds now 48.7 percent of the company's shares, Assetman Oy
holds 13.4 percent and Tero Kivinen 4.9 percent. More information about the
shareholding can be obtained from the company´s web site.
SSH Management Investment Corp is now fourth largest owner holding 4.8 of the
company and it is part of the Tectia Group due to shareholder agreement.
During reporting period was established a subsidiary Tectia Limited in Hong Kong
owned by 100% by Tectia Corporation No other changes occurred in Tectia group
structure.
SHARE CAPITAL AND BOARD AUTHORIZATIONS
The company's registered share capital on March 31, 2010 was EUR 896,953.47
consisting of 29,898,449 shares. During the reporting period there was no change
to share capital.
The Annual General Meeting approved the Board of Directors' proposal to
authorize the Board of Directors to decide upon the issuing of in total
5,500,000 shares, in one or more tranches, as share issues against payment or by
giving stock options or other special rights entitling to shares, as defined in
Chapter 10 Section 1 of the Finnish Companies Act, either in accordance with the
shareholders' pre-emptive right to share subscription or deviating from this
right. The authorization will be valid until the next Annual General Meeting,
but will expire on June 30th 2011 at the latest.
The Annual General Meeting approved the Board of Directors' proposal to
authorize the Board of Directors to decide upon the acquiring of a maximum of
2,000,000 of the company's own shares, in one or more tranches, with assets
belonging to the company's free equity. This amount corresponds approximately to
6.69 per cent of all shares of the company. The compensation to be paid for the
acquired shares shall be determined on the date of acquisition on the basis of
the trading rate determined for the company's share in a public trading arranged
by NASDAQ OMX Helsinki Ltd. Furthermore, the Annual General Meeting decided to
authorize the Board of Directors to decide upon a distress concerning a maximum
of 1,500,000 own shares, in one or more tranches. The amount corresponds
approximately to 5.02 per cent of all shares of the company. The authorization
to acquire the shares and the authorization concerning the distress shall be
valid at most for eighteen (18) months after the decision of the Annual General
Meeting.
DIVIDEND AND OTHER DISTRIBUTION OF ASSETS
The Annual General Meeting decided upon the distribution of assets from the
invested non-restricted equity fund to the shareholders in such a way that
assets would be distributed 0.05 euro per share. The amount distributed was in
total 1,494,922.45 euro. The return of equity was paid to the shareholders who
on the record date on March 8th 2009 were registered in the shareholders'
register of the company held by Euroclear Finland Oy. The payment date was March
15th 2009.
Furthermore, the Annual General Meeting decided to lower the subscription price
of the shares, which can be subscribed on the basis of the option plans released
by the company between years 2000-2002, with an amount corresponding to the
distribution of assets, i.e. 0.05 euro per each option right. The subscription
price of the shares shall, however, always have at least the same value as the
par value.
REPORTING
This interim report follows IAS 34 (Interim Financial Reporting) accounting
standard. The same accounting principles have been used in the financial
statements for 2009. The figures are non-audited.
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| INCOME STATEMENT | | | |
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| EUR million | | | |
--------------------------------------------------------------------------------
| | | 1-3 | 1-3 | 1-12 |
| | | /2010 | /2009 | /2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Net sales | 2.3 | 1.9 | 8.8 |
--------------------------------------------------------------------------------
| | Cost of goods sold | -0.1 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| | Gross profit | 2.3 | 1.9 | 8.7 |
--------------------------------------------------------------------------------
| | Other operating income | 0.0 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Product development expenses | -0.5 | -0.9 | -3.8 |
--------------------------------------------------------------------------------
| | Sales, marketing and customer | -1.2 | -1.1 | -4.3 |
| | support costs | | | |
--------------------------------------------------------------------------------
| | Administrative expenses | -0.6 | -0.6 | -2.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Operating profit/loss | 0.0 | -0.8 | -1.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Financial income and expenses | 0.1 | 0.2 | 0.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Profit/loss before taxes | 0.0 | -0.6 | -1.2 |
--------------------------------------------------------------------------------
| | Taxes | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Net profit/loss for the period | 0.0 | -0.6 | -1.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Other profit and loss account items: | | | |
--------------------------------------------------------------------------------
| | Foreign subsidiary translation | -0.1 | -0.1 | -0.1 |
| | differences | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total comprehensive income | -0.1 | -0.7 | -1.3 |
--------------------------------------------------------------------------------
This interim report also complies with the year 2010 renewed IFRS 3 and IAS 27
standards.
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| EARNINGS PER SHARE | |
--------------------------------------------------------------------------------
| | | 1-3/ | 1-3/ | 1-12/ | |
| | | 2010 | 2009 | 2009 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EUR) | | 0.00 | -0.02 | -0.04 | |
--------------------------------------------------------------------------------
| Earnings per share, diluted | | 0.00 | -0.02 | -0.04 | |
| (EUR) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET | | | |
--------------------------------------------------------------------------------
| EUR million | | | |
--------------------------------------------------------------------------------
| | | 31/03/2010 | 31/03/2009 | 31/12/2009 |
--------------------------------------------------------------------------------
| | ASSETS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Non-current assets | | | |
--------------------------------------------------------------------------------
| | Tangible assets | 0.3 | 0.3 | 0.2 |
--------------------------------------------------------------------------------
| | Intangible assets | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| | Investments | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| | Total non-current assets | 0.4 | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Current assets | | | |
--------------------------------------------------------------------------------
| | Trade and other receivables | 1.6 | 1.6 | 2.7 |
--------------------------------------------------------------------------------
| | Short-term financial assets | 3.0 | 6.0 | 2.5 |
--------------------------------------------------------------------------------
| | Cash and cash equivalents | 2.1 | 1.5 | 3.9 |
--------------------------------------------------------------------------------
| | Total current assets | 6.8 | 9.0 | 9.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total assets | 7.1 | 9.3 | 9.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | LIABILITIES AND SHAREHOLDERS' | | | |
| | EQUITY | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Shareholders' equity | 2.8 | 5.3 | 4.4 |
--------------------------------------------------------------------------------
| | Non-current liabilities | | | |
--------------------------------------------------------------------------------
| | Provisions | 0.2 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| | Non-current interest-bearing | 0.0 | 0.1 | 0.0 |
| | liabilities | | | |
--------------------------------------------------------------------------------
| | Total long-term liabilities | 0.1 | 0.1 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Current liabilities | 4.0 | 3.9 | 4.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total equity and liabilities | 7.1 | 9.3 | 9.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW STATEMENT | | | |
--------------------------------------------------------------------------------
| EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Cash flow from business | 0.1 | -0.6 | -2.4 |
| | operations | | | |
--------------------------------------------------------------------------------
| | Cash flow from investments | 0.0 | 8.6 | 12.0 |
--------------------------------------------------------------------------------
| | Cash flow from financing | -1.8 | -8.5 | -7.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Increase(+) / decrease (-) in | -1.8 | -0.5 | 1.9 |
| | cash | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Cash at period start | 3.9 | 2.0 | 2.0 |
--------------------------------------------------------------------------------
| | Adjustment for translation | 0.0 | 0.0 | 0.0 |
| | difference | | | |
--------------------------------------------------------------------------------
| | Cash at period end | 2.1 | 1.5 | 3.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT ON CHANGES IN | | | | | |
| SHAREHOLDERS' EQUITY | | | | | |
--------------------------------------------------------------------------------
| EUR | Share | Share | Fair | Trans | Fund for | Unrestricte | Total |
| million | Capi- | Premi | value | -lati | own | d equity | |
| | tal | -um | reser | on | shares | funds and | |
| | | | -ves | diff. | | retained | |
| | | | | | | earnings | |
--------------------------------------------------------------------------------
| Sharehold | 0.9 | 0.0 | 0.1 | -0.9 | | 14.4 | 14.5 |
| ers' | | | | | | | |
| equity | | | | | | | |
| Jan, 1. | | | | | | | |
| 2009 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change | 0.0 | 0.0 | 0.0 | -0.1 | | -8.5 | |
--------------------------------------------------------------------------------
| Net | | | | | | -0.6 | |
| profit | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehold | 0.9 | 0.0 | 0.1 | -1.0 | | 5.3 | 5.3 |
| ers' | | | | | | | |
| equity | | | | | | | |
| Mar, 31. | | | | | | | |
| 2009 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
--------------------------------------------------------------------------------
| Net | | | | | | 0.2 | |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| Managemen | | | | | -1.1 | | |
| t | | | | | | | |
| Incentive | | | | | | | |
| plan | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehold | 0.9 | 0.0 | 0.1 | -1.0 | -1.1 | 5.5 | 4.4 |
| ers' | | | | | | | |
| equity | | | | | | | |
| Dec, 31. | | | | | | | |
| 2009 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change | 0.0 | 0.0 | 0.0 | -0.1 | 0.1 | -1.5 | |
--------------------------------------------------------------------------------
| Net | | | | | | 0.0 | |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| Managemen | | | | | | 0.0 | |
| t | | | | | | | |
| Incentive | | | | | | | |
| plan | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehold | 0.9 | 0.0 | 0.1 | -1.1 | -1.0 | 4.0 | 2.8 |
| ers' | | | | | | | |
| equity | | | | | | | |
| Mar, 31. | | | | | | | |
| 2010 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY SEGMENT | | | |
--------------------------------------------------------------------------------
| EUR million | 1-3/ | 1-3/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AMER | 1.7 | 1.2 | 5,5 |
--------------------------------------------------------------------------------
| APAC | 0.2 | 0.2 | 0,8 |
--------------------------------------------------------------------------------
| EMEA | 0.4 | 0.4 | 2,5 |
--------------------------------------------------------------------------------
| Tectia Group total | 2.3 | 1.9 | 8,8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT/LOSS BY SEGMENT | | | |
--------------------------------------------------------------------------------
| EUR million | 1-3/ | 1-3/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AMER | 1.1 | 0.4 | 2.5 |
--------------------------------------------------------------------------------
| APAC | 0.1 | 0.1 | 0.5 |
--------------------------------------------------------------------------------
| EMEA | 0.0 | 0.1 | 1.1 |
--------------------------------------------------------------------------------
| Common Group expenses* | -1.3 | -1.4 | -5.5 |
--------------------------------------------------------------------------------
| Tectia Group total | 0.0 | -0.8 | -1.5 |
--------------------------------------------------------------------------------
* Common Group expenses include Group administration expenses (e.g. management
and finance) and product management and R&D expenses for corporate headquarters.
--------------------------------------------------------------------------------
| KEY FIGURES AND RATIOS | | | | |
--------------------------------------------------------------------------------
| EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 2.3 | 1.9 | 8.8 |
--------------------------------------------------------------------------------
| Operating profit/loss | 0.0 | -0.8 | -1.5 |
--------------------------------------------------------------------------------
| Operating profit/loss, as % of | -1.8 | -40.7 | -16.9 |
| net sales | | | |
--------------------------------------------------------------------------------
| Profit/loss before extraordinary | 0.0 | -0.6 | -0.3 |
| items and taxes | | | |
--------------------------------------------------------------------------------
| Profit/loss before extraordinary | 0.8 | -30.0 | -2.9 |
| items and taxes, as % of net | | | |
| sales | | | |
--------------------------------------------------------------------------------
| Profit/loss before taxes | 0.0 | -0.6 | -1.2 |
--------------------------------------------------------------------------------
| Profit/loss before taxes, as | 0.8 | -30.0 | -13.3 |
| % of net sales | | | |
--------------------------------------------------------------------------------
| Return on investment (%) | 0.0 | -21.8 | -10.8 |
--------------------------------------------------------------------------------
| Return on equity (%) | 0.0 | -22.5 | -12.4 |
--------------------------------------------------------------------------------
| Interest-bearing net liabilities | -5.1 | -7.4 | -6.4 |
--------------------------------------------------------------------------------
| Equity ratio (%) | 66.3 | 81.7 | 71.4 |
--------------------------------------------------------------------------------
| Gearing (%) | -179.8 | -139.2 | -144.2 |
--------------------------------------------------------------------------------
| Gross capital expenditure | 0.0 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| % of net sales | 0.0 | 0.0 | 1.3 |
--------------------------------------------------------------------------------
| R&D expenses | 0.5 | 0.7 | 2.8 |
--------------------------------------------------------------------------------
| % of net sales | 23.7% | 35.7% | 31.6% |
--------------------------------------------------------------------------------
| Personnel, period average | 64 | 69 | 66 |
--------------------------------------------------------------------------------
| Personnel, period end | 65 | 68 | 64 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PER-SHARE DATA | | | |
--------------------------------------------------------------------------------
| EUR | 1-3/2010 | 1-3/2009 | -12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, undiluted | 0.00 | -0.02 | -0.04 |
--------------------------------------------------------------------------------
| Earnings per share, diluted | 0.00 | -0.02 | -0.04 |
--------------------------------------------------------------------------------
| Equity per share | 0.10 | 0.18 | 0.15 |
--------------------------------------------------------------------------------
| No. of shares at period end | 29 898 | 28 652 | 29 898 |
| (thousand) | | | |
--------------------------------------------------------------------------------
| Share performance | | | |
--------------------------------------------------------------------------------
| Average price | 0.84 | 1.01 | 0.79 |
--------------------------------------------------------------------------------
| Low | 0.76 | 0.72 | 0.65 |
--------------------------------------------------------------------------------
| High | 0.98 | 1.24 | 1.24 |
--------------------------------------------------------------------------------
| Share price, period end | 0.84 | 0.73 | 0.77 |
--------------------------------------------------------------------------------
| Market capitalization, period end | 25.1 | 20.9 | 23.0 |
| (EUR million) | | | |
--------------------------------------------------------------------------------
| Volume of shares traded (million) | 1.6 | 1.2 | 5.1 |
--------------------------------------------------------------------------------
| Volume of shares traded, as | 5.4 | 4.1 | 17.0 |
| % of | | | |
| total | | | |
--------------------------------------------------------------------------------
| Value of shares traded (EUR | 1.4 | 1.2 | 4.0 |
| million) | | | |
--------------------------------------------------------------------------------
| Price-to-earnings ratio (P/E) | - | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| EUR million | 1-3/2010 | 1-3/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Rent security deposits | 0.1 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing commitments outside | | | |
| the balance sheet | | | |
--------------------------------------------------------------------------------
| Maturing within 1 year | 0.4 | 0.7 | 0.6 |
--------------------------------------------------------------------------------
| Maturing between 1 and 5 years | 1.0 | 0.4 | 1.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DISCLAIMER
The content in this report is provided by Tectia Corporation ("Tectia") and its
third party content providers for your personal information only, and does not
constitute an offer or invitation to purchase any securities. Nor does it
provide any form of advice (investment, tax, legal) amounting to investment
advice, or make any recommendations regarding particular investments or
products. Tectia does not provide investment advice or recommendations to buy or
sell its shares or the shares of others. If you are interested in investing in
Tectia, please contact your financial adviser for further details and
information. Past performance of Tectia shares is not indicative of future
results. EXCEPT AS PROVIDED BY APPLICABLE COMPULSORY LAW TECTIA EXPRESSLY
DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, AS TO THE AVAILABILITY, ACCURACY
OR RELIABILITY OF ANY OF THE CONTENT PROVIDED, OR AS TO THE FITNESS OF THE
INFORMATION FOR ANY PURPOSE.
Tectia Corporation will release its next interim report and financial statements
for January 1st-June 30th, 2010 in 21st of July 2010. Further information will
be available on the company's website in due course.
Helsinki, April 21st 2010
TECTIA CORPORATION
Board of Directors
Jari Mielonen
CEO
For further information, please contact:
Jari Mielonen, CEO, tel. +358 20 500 7000
Mikko Karvinen, CFO, tel. +358 20 500 7000
Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.ssh.com
