INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 31 MARCH 2011

Helsinki, 2011-04-15 07:00 CEST (GLOBE NEWSWIRE) -- Stock exchange release15 April 2011 at 8.00 am

INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 31 MARCH 2011

Net sales and result decreased from the previous year, full year outlook remains unchanged. 

• Net sales EUR 16.8 million (January - March 2010: 18.1)
• Operating result EUR -0.2 million (+0.2)
• Earnings per share EUR -0.02 (-0.01)
• Order backlog EUR 34.6 million (35.6) 

Comptel net sales are estimated to grow moderately in 2011. During this year, the company will invest in further the development of its sales channels, and as a result the operating profit is estimated to remain at the previous year’s level.

Juhani Hintikka, President and CEO

”Comptel’s business did not meet our expectations in the first quarter of the year. The development of net sales was especially disappointing in Europe and the Middle East. Low net sales impaired the profitability of the quarter.

In Asia-Pacific, a major new customer contributed to our business. We signed a multi-year contract with NBN Co to supply Comptel Fulfillment which automates the service delivery process. The solution will support the delivery of IP services on the ground-breaking broadband network NBN Co is deploying and which will reach all the 10 million Australian premises.

Comptel’s financial position remained strong in the first quarter.

We have adjusted our operating structure to improve the earnings capability. The division of our European business into 2 regions, Europe West and Europe East, will increase our efforts in the emerging markets of Russia and Eurasia, while allowing us to remain actively involved in the large customer accounts in Western Europe. We are also continuing to build a customer and partner intimacy business model by placing sales force closer to our key customers and partners.”

Business Review of the First Quarter 2011

Comptel’s net sales decreased in the first quarter by 6.9 per cent from the previous year, to EUR 16.8 million (18.1). Low service and maintenance revenue mainly in Europe impaired the Group’s net sales.

Due to low net sales, the operating result was EUR 0.2 million negative (+0.2), which corresponds -0.9 per cent of net sales (1.1).

Loss before taxes was EUR 0.3 million (-0.0) and net loss was EUR 1.6 million (-0.8). Earnings per share for the period under review were EUR 0.02 negative (-0.01).

Tax expense for the period was EUR 1.3 million (0.7), of which EUR 0.7 million were withholding taxes. The cumulative amount of outstanding double withholding taxes payment since 2004 is EUR 7.2 million.

The Group’s order backlog was EUR 34.6 million (35.6) at the end of the period. Maintenance agreements represent EUR 20.8 million (22.2) and other order backlog EUR 13.8 million (13.4) of the total. Order flow for the new deliveries increased from the previous year. 

During the first quarter, Comptel started to place more resources closer to key customers and partners in growth markets. In January - February, Comptel was engaged in statutory cooperation negotiations in Finland due to restructuring of the European and MEA business units. As a result of these negotiations, the company made 22 persons redundant. Due to the investments in the other markets the total Group headcount is not expected to decrease.

Business Areas

Net sales, EUR million	1-3 2011	1-3 2010	Change %	2010
Europe	6.6	8.1	-18.0	37.1
Asia-Pacific	6.2	5.2	19.5	23.1
Middle East and Africa	2.6	2.6	0.1	9.8
Americas	1.4	2.2	-36.7	7.8
Total	16.8	18.1	-6.9	77.9
Operating result, EUR million
Europe	2.4	3.6	-33.2	19.8
Asia-Pacific	4.4	2.5	74.5	13.1
Middle East and Africa	0.8	0.4	116.8	2.5
Americas	0.6	0.9	-37.5	4.2
Unallocated costs	-8.3	-7.2	15.3	-30.6
Total	-0.2	0.2	-180.2	8.9
Operating result, % of net sales
Europe	36.6	44.9	-	53.4
Asia-Pacific	69.8	47.8	-	56.6
Middle East and Africa	32.5	15.0	-	25.3
Americas	41.1	41.6	-	53.5
Total	-0.9	1.1	-	11.4

Net sales in Europe decreased as a result of the removal from Comptel of the maintenance of Telenor Norway’s old IT systems, as agreed earlier. Low net sales impaired the profitability in Europe and the Americas. In Asia-Pacific, a new major customer improved net sales and profitability.

During the period, Comptel received three significant orders (Q1 2010: 1): one fulfillment, one control & charge and one covering both of these main solution areas. As of this year, Comptel is reporting sold projects and licenses with a value of EUR 500,000 at the minimum, instead of new core licenses which value exceed EUR 100,000. Reporting of significant orders reflects better the nature of Comptel’s business.

Net sales breakdown by type, EUR million	1-3 2011	1-3 2010	Change %	2010
Licenses	5.7	4.5	25.7	26.2
Services	3.2	4.8	-32.8	18.3
Maintenance agreements	7.9	8.7	-9.6	33.4
Total	16.8	18.1	-6.9	77.9

License sales grew compared to the previous year. A lower number of larger system deliveries decreased the share of service revenue. Maintenance revenue consists of the maintenance and support of the systems delivered.

Net sales by sales channel, EUR million	1-3 2011	1-3 2010	Change %	2010
Direct sales	13.9	12.1	15.2	48.7
Partner sales	2.9	6.0	-51.3	29.2
Total	16.8	18.1	-6.9	77.9

The share of direct sales increased. There were only a few partner projects during the period.

Financial position

EUR million	31 March 2011	31 Dec 2010	Change %	31 March 2010	Change %
Statement of financial position total	74.9	76.4	-1.9	82.7	-9.5
Liquid assets	9.2	7.0	30.6	10.5	-12.3
Trade receivables, gross	22.1	25.1	-11.9	26.0	-14.7
Bad debt provision	-0.6	-0.8	-28.6	-2.2	-72.8
Trade receivables, net	21.5	24.3	-11.3	23.8	-9.4
Accrued income	8.0	7.6	5.4	12.5	-36.0
Deferred income related to partial debiting	1.7	1.9	-8.4	1.8	-4.9
Interest-bearing debt	0.1	0.1	-9.0	8.0	-98.8
Equity ratio, per cent	67.1	71.6	-6.3	59.4	13.1

The statement of financial position total on 31 March 2011 was 74.9 million, of which liquid assets amounted to EUR 9.2 million. The operating cash flow was EUR 3.1 million in the first quarter (5.3).

The trade receivables were EUR 21.5 million (23.8) at the end of the period. The accrued income was EUR 8.0 million (12.5). The deferred income related to partial debiting was EUR 1.7 million (1.8).

Comptel Corporation has available in full a revolving credit facility of EUR 15.0 million maturing in the year 2013. The equity ratio was 67.1 per cent (59.4) and the gearing ratio was 20.8 per cent negative (-5.8).

Research and Development (R&D)
 

EUR million	1-3 2011	1-3 2010	Change %	2010
Direct R&D expenditure	3.9	3.3	16.7	13.4
Capitalisation of R&D expenditure according to IAS 38	-1.0	-0.9	9.4	-3.9
R&D depreciation and impairment charges	0.9	0.9	-1.8	3.7
R&D expenditure, net	3.8	3.3	13.5	13.2

The R&D expenditure remained at the level of year-end 2010 and they are expected to remain at the current level or increase slightly during this year. The R&D expenditure represented 22.9 per cent of net sales (18.3).

Comptel’s R&D expenditure was mainly targeted to the service fulfillment automation of telecom operators and to the management in real-time of rapidly increasing data traffic. In addition, the company develops an integrated software platform which will enable a cost-efficient and solution-based R&D.

Investments
 

EUR million	1-3 2011	1-3 2010	Change %	2010
Gross investments in property, plant and equipment and intangible assets	0.2	0.6	-67.2	1,1

Gross investments in the financial year comprised of investments in devices, software and furnishings. The investments were funded through cash flow from operations.

Personnel
 

	31 March 2011	31 March 2010	Change %	31 Dec 2010
Number of employees at the end of period	595	577	3.1	589

 

	1-3 2011	1-3 2010	Change %	1-12 2010
Average number of personnel during the period	595	583	2.1	586

The number of employees did not change significantly during the period. The number includes 22 persons made redundant in Finland. The personnel expenses were 52.6 per cent of net sales (50.1) in January - March.

At the end of the period, 36.6 per cent (40.0) of the personnel were located in Finland, 25.2 per cent (21.7) in Malaysia, 9.2 per cent (9.4) in the United Kingdom, 6.7 per cent (12.1) in Norway, and 22.3 per cent (16.8) in other countries where Comptel operates.

Comptel share

The closing share price of the period was EUR 0.68 (0.87). Comptel’s market value at the end of the period was EUR 72.7 million (92.6).

 

Comptel share	1-3 2011	1-3 2010	Change %	2010
Shares traded, million	11.2	4.0	180.5	38.3
Shares traded, EUR million	8.2	3.3	150.8	29.0
Highest price, EUR	0.79	0.95	-16.8	0.95
Lowest price, EUR	0.67	0.76	-11.8	0.68

Of Comptel’s outstanding shares, 6.5 per cent (6.6) were nominee registered or held by foreign shareholders at the end of the period.

OP-Pohjola Group Central Cooperative notified on 2 February 2011 that the total holdings in Comptel Corporation shares of its interest communities and the mutual funds managed by the subsidiary of OP-Pohjola have decreased to below the threshold of 5 per cent.

During the period, Comptel Corporation allotted 312,920 shares as part of share-based incentives to persons involved in the program and 110,148 shares to the members of the Board of Directors as part of their annual compensation.

The company held 183,900 of its own shares at the end of the period, which is 0.17 per cent of the total number of its shares. The total counter-book value of the shares held by the company was EUR 3,678.

No share options were distributed during the review period.

Corporate Governance

The Annual General Meeting (AGM), held on 23 March 2011, re-elected the following members for the Board of Directors: Mr Olli Riikkala, Mr Hannu Vaajoensuu, Mr Timo Kotilainen, Mr Juhani Lassila, Mr Petteri Walldén and Mr Henri Österlund. In its meeting held after the AGM, the Board of Directors re-elected Mr Olli Riikkala as chairman and Mr Hannu Vaajoensuu as vice chairman. Mr Juhani Lassila continues as chairman of the audit committee in which the other members are Mr Petteri Walldén and Mr Henri Österlund. Mr Olli Riikkala continues as chairman of the compensation committee in which the other members are Mr Timo Kotilainen and Mr Hannu Vaajoensuu. 

The AGM approved the proposal of Board of Directors that a dividend of EUR 0.04 per share be paid for 2010. The dividend was paid on 8 April 2011. 

The AGM authorised the Board of Directors to decide on share issues amounting to a maximum of 21,400,000 new shares and on repurchase of the company's own shares up to a maximum number of 10,700,000 shares. The authorisations are valid until 30 June 2012. 

A separate stock exchange release about the authorisations given and other decisions made by the Annual General Meeting was published on 23 March 2011.

Mr Juhani Hintikka has acted as the President and CEO of Comptel as of 3 January 2011. Mr Mikko Hytönen assumed his post as CFO as of 1 March 2011 when Mr Markku Pirskanen joined another employer.

In March, Comptel announced its intention to adjust its operating structure in order to accelerate the execution of its growth strategy. The European business area will be divided as of 1 July 2011 into two regions: Europe West and Europe East. This move will allow Comptel to focus its efforts on the growth areas especially in Russia and Eurasia, while remaining actively involved in its large customer accounts in Western Europe.

Mr Timo Koistinen, SVP for region Europe, was appointed as Senior Vice President for the region Europe East. Mr Mauro Carobene was appointed as Senior Vice President for the region Europe West as of 28 April 2011 and he will be based in Milan, Italy. Mr Carobene will join Comptel from Nokia Siemens Networks where he has been responsible most recently for the OSS Consulting and Systems Integration business globally. 

In addition, Comptel will establish a new unit called Global Services to develop services business and manage service products. The new unit will provide a global platform for centralised operations while the operational responsibility will remain in the business areas. 

As of 1 April, a new unit of Corporate Development became operative. It combines Strategic Planning, Legal, Investor Relations and Communications, Marketing, and IT. Mr Simo Sääskilahti, SVP of Products and Solutions, was appointed as Senior Vice President of Corporate Development. CEO Juhani Hintikka is the acting Head of Products and Solutions for the time being. 

As of 1 July 2011, Comptel Group will have the following five reportable business segments: Europe West, Europe East, Asia-Pacific, Middle East and Africa, Americas. 

Following the changes in the operating structure, the members of Comptel Executive Board are CEO Juhani Hintikka, the business area leaders Mr Mauro Carobene (Europe West), Mr Timo Koistinen (Europe East), Mr Mika Korpinen (Asia-Pacific), Mr Youssef Kermoury (Middle East and Africa) and Mr Diego Becker (Americas), Mr Gareth Senior (CTO), Mr Mikko Hytönen (CFO), Ms Niina Pesonen (HR), and Mr Simo Sääskilahti (Corporate Development and Deputy CEO). The respective Heads of Products and Solutions, Global Services, and Alliances will also be members in the Executive Board once these positions are filled. Mr Brad Niven is the acting Head of Alliances and partnerships.

Near-term Risks and Uncertainties

Comptel develops dynamic end-to-end solutions for leading operators globally in the telecom field. This requires Comptel to understand correctly the trends taking place in its business environment and the needs of its customers and resellers by each region. Failure to identify market conditions, address customers’ needs and develop its products in a timely way may significantly undermine the growth of Comptel’s business and its profitability.

Characteristics for Comptel’s field of industry are significant quarterly variations of net sales and profit, which are related to customers’ purchasing behaviour and the timing of major single deals.

Comptel is implementing a customer and partner intimate business model which requires getting competent resources closer to key customers and partners in certain growth markets.

Comptel operates globally so it is exposed to risks arising from different currency positions. Exchange rate changes between the Euro, which is the company’s reporting currency, and the US Dollar, UK Pound Sterling and Norwegian Krone affect the company’s net sales, expenses and net profit.

The application process to prevent Comptel’s double taxation is still pending with the Ministry of Finance in Finland. Comptel is striving to change the treatment of its withholding taxation for those countries where the issue is still pending. Resolving the matter between states, however, includes factors beyond the Company's control.

The risks and uncertainties of Comptel are described more in detail in Comptel’s annual report 2010.

Outlook

Comptel net sales are estimated to grow moderately in 2011. During this year, the company will invest in further development of its sales channels, and as a result the operating profit is estimated to remain at the previous year’s level.

TABLE PART

The interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU. The accounting policies and methods of computation adopted in the financial statements are consistent with those of the annual financial statements for the year ended 2010 except for the application of new or amended standards and interpretations as set forth in note 1.

All figures in the financial report have been rounded and consequently the sum of the individual figures can deviate from the sum figure. The interim report is unaudited.

 

Consolidated Statement of Comprehensive Income (EUR 1,000)	1 Jan – 31 Mar 2011	1 Jan – 31 Mar 2010
Net sales	16,825	18,067
Other operating income	4	3
Materials and services	-773	-741
Employee benefits	-8,843	-9,060
Depreciation, amortisation and impairment charges	-1,359	-1,559
Other operating expenses	-6,006	-6,520
	-16,982	-17,879
Operating profit/loss	-153	191
Financial income	249	218
Financial expenses	-415	-452
Profit/loss before income taxes	-319	-44
Income taxes	-1,329	-728
Profit/loss for the period	-1,648	-771
Other comprehensive income
Cash flow hedges	453	-111
Translation differences	-63	383
Income tax relating to components of other comprehensive income	-118	29
Total comprehensive income for the period	-1,375	-471
Profit/loss attributable to:
Equity holders of the parent company	-1,648	-771
Total comprehensive income attributable to:
Equity holders of the parent company	-1,375	-471
Shareholders of the parent company:
Earnings per share, EUR	-0.02	-0.01
Earnings per share, diluted, EUR	-0.02	-0.01

 

Consolidated Statement of Financial Position (EUR 1,000)	31 Mar 2011	31 Dec 2010
Assets
Non-current assets
Goodwill	19,398	19,626
Other intangible assets	10,801	10,948
Tangible assets	1,686	1,842
Investments in associates	1,003	1,003
Available-for sale financial assets	87	87
Deferred tax assets	522	783
Other non-current receivables	428	432
	33,926	34,721
Current assets
Trade and other current receivables	31,769	34,616
Cash and cash equivalents	9,181	7,028
	40,950	41,644
Total assets	74,876	76,365
Equity and liabilities
Equity attributable to equity holders of the parent company
Share capital	2,141	2,141
Fund of invested non-restricted equity	7,651	7,575
Translation differences	-921	-858
Retained earnings	34,839	40,287
Total equity	43,710	49,146
Non-current liabilities
Deferred tax liabilities	5,848	5,762
Provisions	1,751	1,954
Non-current financial liabilities	57	68
Other non-current liabilities	1	1
	7,656	7,784
Current liabilities
Trade and other current liabilities	23,471	19,398
Current financial liabilities	38	36
	23,509	19,435
Total liabilities	31,165	27,219
Total equity and liabilities	74,876	76,365

 

 

Consolidated Statement of Cash Flows  (EUR 1,000)	1 Jan – 31 Mar 2011	1 Jan – 31 Mar 2010
Cash flows from operating activities
Profit/loss for the period	-1,648	-771
Adjustments:
Non-cash transactions or items that are not part of cash flows from operating activities	1,633	1,950
Interest and other financial expenses	13	47
Interest income	-8	-8
Income taxes	1,329	728
Change in working capital:
Change in trade and other current receivables	3,282	2,468
Change in trade and other current liabilities	-243	294
Change in provisions	-203	-46
Interest paid	-13	-20
Interest received	6	6
Income taxes paid and tax returns received	-1,091	644
Net cash from operating activities	3,058	5,291
Cash flows from investing activities
Investments in tangible assets	-141	-582
Investments in intangible assets	-50	-
Investments in development projects	-983	-898
Net cash used in investing activities	-1,174	-1,481
Cash flows from financing activities
Acquisition of Corporation’s own shares	-	-441
Lease payments	-9	-
Net cash used in financing activities	-9	-441
Net change in cash and cash equivalents	1,874	3,369
Cash and cash equivalents at the beginning of the period	7,028	6,730
Cash and cash equivalents at the end of the period	9,181	10,473
Change	2,153	3,743
Effects of changes in foreign exchange rates	-279	-374

 

Consolidated Statement of Changes in Equity
Equity attributable to equity holders of the parent company
EUR 1,000	Share capital	Other reserves	Translation differences	Fair value reserve	Treasury shares	Retained earnings	Total
Equity at 31 Dec 2009	2,141	7,499	-1,757	-45	-287	38,748	46,299
Dividends						-3,191	-3,191
Acquisition of Corporation’s own shares					-441		-441
Transfer of treasury shares		76			129	-129	76
Share-based compensation						143	143
Total comprehensive income for the period			383	-82		-771	-471
Equity at 31 Mar 2010	2,141	7,575	-1,375	-128	-599	34,799	42,415

 

Consolidated Statement of Changes in Equity
Equity attributable to equity holders of the parent company
EUR 1,000	Share capital	Other reserves	Translation differences	Fair value reserve	Treasury shares	Retained earnings	Total
Equity at 31 Dec 2010	2,141	7,575	-858	-40	-600	40,927	49,146
Dividends						-4,270	-4,270
Transfer of treasury shares		76			225	-225	76
Share-based compensation						134	134
Total comprehensive income for the period			-63	335		-1,648	-1,375
Equity at 31 Mar 2011	2,141	7,651	-921	296	-375	34,918	43,710

 Notes

 1. Application of new or amended standards and interpretations

On 1 January 2011 the Group adopted the following new and amended standards and interpretations endorsed by the EU and that are applicable to Comptel: 

Revised IAS 24 Related Party Disclosures (effective for financial periods beginning on or after 1 January 2011). The amendment simplifies and clarifies the definition of a related party and relaxes the disclosure requirements of business operations between public enterprises.

Improvements to IFRSs (May 2010) (mainly effective for financial periods beginning on or after 1 July 2010). Under this procedure minor and non-urgent amendments are grouped together and carried out through a single document annually.

2. Segment information

Net sales by segment

 

EUR 1,000	1 Jan – 31 Mar 2011	1 Jan – 31 Mar 2010
Europe	6,638	8,098
Asia-Pacific	6,245	5,228
Middle East and Africa	2,559	2,556
Americas	1,383	2,186
Group total	16,825	18,067

Operating profit/loss by segment 

 

EUR 1,000	1 Jan – 31 Mar 2011	1 Jan – 31 Mar 2010
Europe	2,431	3,637
Asia-Pacific	4,360	2,498
Middle East and Africa	832	384
Americas	568	909
Group unallocated expenses	-8,344	-7,237
Group operating profit/loss total	-153	191
Financial income and expenses	-166	-234
Group profit/loss before income taxes	-319	-44

3. Income tax expense

Tax expense according to the statement of comprehensive income for the period was EUR 1,329 thousand (EUR 728 thousand 2010). 

In 2006, Adjustment of the Tax Office for Major Corporations refused to accept the crediting of taxes withheld at source in taxation of 2004 and 2005. 

The Ministry of Finance has come to an agreement with Greece and Romania. Relating to these countries, Comptel has booked EUR 595 thousand tax receivables for taxes withheld in 2004 -2008. The refund process pertaining to these countries is still pending with the relevant tax authorities. Comptel is pursuing the negotiations with the Ministry of Finance and other countries that have withheld tax at source to avoid double taxation. 

According to the Board of Adjustment’s decision currently in force, Comptel Corporation has expensed taxes withheld at source amounting to EUR 690 thousand in January – March (EUR 403 thousand).

4. Tangible assets
 

EUR 1,000	1 Jan – 31 Mar 2011	1 Jan – 31 Mar 2010
Additions	141	582
Disposals	-	-36

5. Related party transactions

The Comptel Group has a related party relationship with its associate, the Board of Directors, the Executive Board and also with people and companies under Comptel management’s influence.

Transactions, which have been entered into with related parties are as follows:

 

EUR 1,000	1 Jan – 31 Mar 2011	1 Jan – 31 Mar 2010
Associate
Purchases of goods and services	-	100
Interest income	2	2
Companies under management’s influence
Purchases of goods and services	5	11

 

EUR 1,000	31 Mar 2011	31 Dec 2010
Associate
Non-current receivables	85	83
Companies under management’s influence
Trade and other current liabilities	1	1

Remuneration to key management

The key management personnel compensation includes the employee benefits of the members of the Board of Directors and the Executive Board.
 

 

EUR 1,000	1 Jan – 31 Mar 2011	1 Jan – 31 Mar 2010
Salaries and other short-term employee benefits	813	597
Share-based payments	45	75
Total	858	673

6. Commitments

Minimum lease payments on non-cancellable office facilities and other operating leases are payable as follows:
 

EUR 1,000	31 Mar 2011	31 Dec 2010
Less than one year	3,648	3,597
Between one and five years	10,776	11,226
More than five years	379	751
Total	14,803	15,574

The group had no material capital commitments for the purchase of tangible assets at 31 March 2011 and 31 March 2010.

7. Contingent liabilities

 

EUR 1,000	31 Mar 2011	31 Dec 2010
Bank guarantees	1,728	2,061

8. Key figures

Financial summary	1 Jan – 31 Mar 2011	1 Jan – 31 Mar 2010	1 Jan – 31 Dec 2010
Net sales, EUR 1,000	16,825	18,067	77,888
Net sales, change %	-6.9	5.7	4.0
Operating profit/loss, EUR 1,000	-153	191	8,908
Operating profit/loss, change %	-180.2	106.0	775.2
Operating profit/loss, as % of net sales	-0.9	1.1	11.4
Profit/loss before taxes, EUR 1,000	-319	-44	8,512
Profit/loss before taxes, as % of net sales	-1.9	-0.2	10.9
Return on equity, %	-	-	9.9
Return on investment, %	-	-	16.3
Equity ratio, %	67.1	59.4	71.6
Gross investments in tangible and intangible assets, EUR 1,000	191	582	1,124
Gross investments in tangible and intangible assets, as % of net sales	1.1	3.2	1.4
Capitalisations according to IAS 38 to intangible assets	983	898	3,932
Research and development expenditure, EUR 1,000	3,856	3,304	13,414
Research and development expenditure, as % of net sales	22.9	18.3	17.2
Order backlog, EUR 1,000 1)	34,554	35,598	34,049
Average number of employees during the period	595	583	586
Interest-bearing net liabilities, EUR 1,000	-9,806	-2,473	-6,923
Gearing ratio, %	-20.8	-5.8	-14.1
1) The order book may vary significantly during the financial period.

 

Per share data	1 Jan – 31 Mar 2011	1 Jan – 31 Mar 2010	1 Jan – 31 Dec 2010
Earnings per share (EPS), EUR	-0.02	-0.01	0.04
EPS diluted, EUR	-0.02	-0.01	0.04
Equity per share, EUR	0.41	0.40	0.46
Dividend per share, EUR	-	-	0.04
Dividend per earnings, %	-	-	90.6
Effective dividend yield, %	-	-	5.8
P/E ratio	-	-	15.6
Adjusted number of shares at the end of the period	107,054,810	107,054,810	107,054,810
of which the number of treasury shares	183,900	599,588	599,905
Outstanding shares	106,870,910	106,455,222	106,454,905
Adjusted average number of shares during the period	106,555,907	106,569,711	106,477,113
Average number of shares, dilution included	106,695,907	106,914,539	107,398,488

9. Definition of key figures
 

Operating margin %	=	Operating profit/loss	x100
		Net sales
Profit margin (before income taxes) %	=	Profit/loss before taxes	x100
		Net sales
Return on equity % (ROE)	=	Profit/loss	x100
		Total equity (average during year)
Return on investment % (ROI)	=	Profit/loss before taxes + financial expenses	x100
		Total equity + interest bearing liabilities (average during the year)
Equity ratio %	=	Total equity	x100
		Statement of financial position total – advances received
Gross investments in tangible and intangible assets, as % of net sales	=	Gross investments in tangible and intangible assets	x100
		Net sales
Research and development expenditure, as % of net sales	=	Research and development expenditure	x100
		Net sales
Gearing ratio %	=	Interest-bearing liabilities – cash and cash equivalents	x100
		Total equity
Earnings per share (EPS)	=	Profit/loss for the financial year attributable to equity shareholders
		Average number of outstanding shares for the financial year
Equity per share	=	Equity attributable to the equity holders of the parent company
		Adjusted number of shares at the end of period
Dividend per share	=	Dividend
		Adjusted number of shares at the end of period
Dividend per earnings %	=	Dividend per share	x100
		Earnings per share (EPS)
Efective dividend yield %	=	Dividend per share	x100
		Share closing price at end of period
P/E ratio	=	Share closing price at end of period
		Earnings per share (EPS)

 Schedule for Comptel’s interim reports in 2011:

January - June: 20 July 2011
January - September: 21 October 2011

COMPTEL CORPORATION
Board of Directors 

Additional information:
Mr Juhani Hintikka, President and CEO, tel. +358 9 700 1131
Mr Mikko Hytönen, CFO, tel. +358 40 758 5801
Mr Samppa Seppälä, Director, IR and Corporate Communications, tel. +358 50 568 0533 

Distribution:
NASDAQ OMX Helsinki
Major media