Helsinki, Finland, 2011-07-19 08:00 CEST (GLOBE NEWSWIRE) -- TECTIA CORPORATION COMPANY ANNOUNCEMENT JULY 19, 2011 AT 9:00 AM
TECTIA CORPORATION EXPECTS ITS NET RESULT FOR THE FULL YEAR 2011 TO BE NEGATIVE
For the fiscal year 2011, Tectia estimates its net sales to grow from 2010. Full year 2011 net result is expected to be negative.
Earlier for the fiscal year 2011, Tectia estimated its net sales to grow from 2010 and expected the net result to be positive.
Consolidated net sales for January-June 2011 was EUR 4.2 million (EUR 4.5 million), decrease -7.9 percent year on year. Decrease in net sales is due to company sales progressing transition into channel sales model. Americas market area had EUR -0.6 million less revenue January-June 2011 compared to first half 2010.
Consolidated operating loss January-June 2011 amounted to EUR -1.1 million (EUR -0.1 million). Operating loss January-June 2011 included extra-ordinary items EUR -0.4 million. Executed organizational restructuring is estimated to lower significantly operational expenses during July-December 2011 compared to same period previous year.
Managed Security business sales channel building has advanced well in quality but gross margin is lower in channel sales model. Managed Security business sales volumes are still estimated to grow during second half 2011 compared to January-June 2011. Mobile Authentication business technology alliances ramp up has advanced as planned, and in order to grow sales volumes, the company has decided during second half 2011 to invest more into Mobile Authentication business channel sales.
The company continues to evaluate its patent portfolio and strategic alternatives to create shareholder value from it. The company hasn’t received any royalty or other revenue from these patents or patent applications so far, and they have not been booked as assets in the balance sheet. The company has decided to invest in patent portfolio management during second half 2011.
Tectia Corporation will release its interim report for January 1–June 30, 2011 in July 20th.
Helsinki, July 19, 2011
TECTIA CORPORATION
Board of Directors
Jari Mielonen
CEO
For more information:
Jari Mielonen, CEO. tel. +358 40 703 8383
Mikko Karvinen, CFO. tel. +358 50 326 4101
Distribution:
NASDAQ OMX Helsinki Ltd.
Major Media
www.tectia.com