TECTIA CORPORATION ESTIMATES ITS FULL YEAR 2011 NET SALES

Helsinki, Finland, 2011-10-19 07:50 CEST (GLOBE NEWSWIRE) -- TECTIA CORPORATION COMPANY ANNOUNCEMENT OCTOBER 19, 2011 AT 8:50 A.M

TECTIA CORPORATION ESTIMATES ITS FULL YEAR 2011 NET SALES TO DECREASE

For the fiscal year 2011, Tectia estimates its net sales to decrease 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 negative.

The company´s net sales activity in North America did not progress as expected by the end of September. Furthermore approvals of investment decisions have been delayed especially by customers in the North American market. Also, net sales of the Mobile Authentication business were behind previous estimates due to delay in the business ramp up. It is assessed that these factors combined will hinder the development of net sales during the last quarter and the whole year 2011 compared to previous estimates. The globally poor economic visibility complicates the estimation of the last quarter.

Global audit firm valuation experts have provided the company with a valuation estimate for some of its patents and patent applications, according to which the fair market value of these would be approximately EUR 1 million. These patents were developed for the company´s IPSec-technology related products and are not used in current products. New applications have emerged for technologies described and claimed in the patents, e.g. VoIP (Voice-over-IP) and 3GPP LTE (Long Term Extension, or 4G) networks and smart phones. It is possible that the most important of the patent applications will be granted and that they will be essential for some of the standards in the area. It is also possible that the actual future sale price or other income from them would be substantially higher than the estimated value. The potential income will, however, most likely not be realized for several quarters and no asset from these patents has been booked in the balance sheet.

Helsinki, October 19th 2011

TECTIA CORPORATION

Board of Directors

Tatu Ylönen
CEO

For further information, please contact:
Tatu Ylönen, CEO. tel. +358 20 500 7000
Mikko Karvinen, CFO, Deputy Managing Director. tel. +358 50 326 4101

Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.tectia.com