QPR SOFTWARE PLC STOCK EXCHANGE RELEASE JULY 28, 2011 AT 9.00 AM
INTERIM REPORT JANUARY 1 - JUNE 30, 2011
QPR SOFTWARE'S NET SALES ROSE TO EUR 3.6 MILLION, OPERATING MARGIN 9.5%
Summary
January - June 2011:
-- Net sales EUR 3,552 thousand (January - June 2010: 3,443), growth 3.2%
-- Net sales in Finland grew 13.5%, net sales in international markets
decreased 4.3%
-- Operating profit EUR 336 thousand (316), growth 6.3%
-- Operating profit margin 9.5% (9.2) of consolidated net sales
-- Cash flow from operating activities was EUR 968 thousand (488), growth
98.4%
-- Earnings per share EUR 0.02 (0.02)
April - June 2011:
-- Net sales EUR 1,784 thousand (April - June 2010: 1,773), growth 0.6%
-- Net sales in Finland grew 16.7%, net sales in international markets
decreased 10.6%.
-- Operating profit EUR 179 thousand (171), growth 4.7%
-- Operating profit margin 10.0% (9.6) of consolidated net sales
-- Cash flow from operating activities was EUR 447 thousand (139), growth
221.6%
-- Earnings per share EUR 0.01 (0.01)
Outlook 2011:
QPR Software estimates the consolidated net sales 2011 to show significantly
faster growth than in the previous year (growth in year 2010: 4.8%) and
operating profit to remain approximately 10% of net sales. The forecast
includes acquired operations of Nobultec Ltd as of 1 August, 2011. In Finland,
growth is expected especially in software subscription net sales and enterprise
architecture services sales. In international markets, growth is expected from
Russia and CIS countries.
KEY FIGURES
(EUR 1,000) April - April - Change Jan - Jan - Change Jan -
June, June, - % June, June, - % Dec,
2011 2010 2011 2010 2010
Net sales 1,784 1,773 0.6 3,552 3,443 3.2 6,937
Operating 179 171 4.7 336 316 6.3 752
profit
% of net sales 10.0 9.6 9.5 9.2 10.8
Profit before 171 126 35.7 312 246 26.8 707
tax
Profit for the 147 93 58.1 247 188 31.4 527
period
% of net sales 8.2 5.2 7.0 5.5 7.6
Earnings per 0.02 0.02 0.04
share, EUR
EPS (diluted), 0.02 0.02 0.04
EUR
Equity per 0.20 0.20 0.22
share, EUR
Cash flow from 968 488 860
operating
activities
Cash and cash 1,747 1,742 1,703
equivalents
Net -1,067 -758 -910
liabilities
Gearing, % -42.4 -30.7 -33.8
Equity ratio, 46.6 42.2 42.6
%
Return on 18.9 14.9 20.0
equity, %
Return on 20.1 15.2 21.0
investment, %
REPORTING
This interim report complies with the requirements of IAS 34 standard. The
accounting and valuation principles are the same as they were 2010 financial
statements. This Interim Report is unaudited.
QPR Software´s business operations consist of software license, subscription,
maintenance and professional services sales.
As of January 1, 2011 QPR Software has two segments; Software Sales
International (software license and subscription sales, maintenance and
professional services sales outside of Finland) and Business Operations Finland
(software license and subscription sales, maintenance and professional services
sales in Finland).
CEO´S BUSINESS REVIEW
QPR Software´s business in Finland developed positively in the second quarter
of 2011. Net sales in Finland grew 16.7% compared to the equivalent period last
year and profitability improved significantly from previous year. Both software
sales and professional services sales in Finland recorded strong growth.
Service business expansion in Finland to enterprise architecture consulting
proceeded as planned. In the review period we focused on offering development,
service product development and marketing. In early 2011 we launched a solution
for enterprise architecture management, based on Finnish public sector JHS 179
recommendation. The first project deliveries based on this solution have
already started, and we believe that the new IT Governance legislation in
Finland (applicable in September 2011) will have a positive impact on demand of
this solution.
Strong sales growth in Russia and CIS countries had a positive impact on our
international net sales. Especially service business in our Russian subsidiary
grew strongly compared to the equivalent period last year. We will further
increase the subsidiary´s resources this year. However, channel net sales
decreased due to reported postponements of deliveries in our reseller partners´
business. This led to a decrease of 10.6% in our international net sales in the
second quarter.
The launch of QPR ProcessAnalyzer software in early 2011 has been very
successful. In the second quarter, we acquired several new customers for this
product and our process analysis services in Finland: projects were delivered
to Onninen Group, Outokumpu Corporation, Metsäliitto Group and to the Helsinki
University. Software development resources for the product were increased in
the review quarter.
International QPR ProcessAnalyzer business has also had a good start. QPR has
initiated the first software deliveries and signed the first international
reseller contracts in Europe and in the US. QPR aims at strong international
software sales growth and significant market share in this new category, and in
addition, invests in process analysis service development in Finland.
QPR ProcessAnalyzer discovers organization's actual as-is business processes
automatically based on existing event data stored in IT-systems. In addition to
visual business process models, the software reveals information about process
variations, deviations and allows drill-down to individual cases. QPR
ProcessAnalyzer is used to streamline business processes, develop IT-systems
and improve quality.
Jari Jaakkola
CEO
NET SALES
April - June
QPR Software Group´s net sales in April - June were EUR 1,784 thousand (1,773)
and grew 0.6% compared to the equivalent period in the previous year. Business
operations in Finland represented 47.8% and international operations 52.2% of
net sales.
QPR Software´s net sales in Finland rose 16.7% from previous year. Software net
sales growth in Finland accelerated, mainly due to success in software
subscription sales. The company´s expansion into enterprise architecture
management and process analysis consulting business led to growth in
professional services net sales.
International net sales decreased 10.6% compared to previous year. This was due
to decrease in international channel net sales. The decline in international
net sales was partly offset through strong net sales growth in Russia and CIS
countries. Net sales growth in Russia and CIS countries was due to positive
development in professional services sales and software license sales.
January - June
QPR Software Group´s net sales in January - June were EUR 3,552 thousand
(3,443) and grew 3.2% compared to the equivalent period in the previous year.
Business operations in Finland represented 46.1% and international operations
53.9% of net sales.
QPR Software´s net sales in Finland rose 13.5 %, mainly due to strong growth in
software net sales.
International net sales decreased 4.3 % compared to previous year due to
decline in channel net sales. Decline in international net sales was partly
offset through QPR´s Russian subsidiary´s strong net sales growth in Russia and
CIS Countries.
In Finland, the Company delivered software and professional services in the
reporting period, among others, to Carea, Central Finland Healthcare District,
CRH Finland, DNA Oyj, Kesko Corporation, Mikkeli University of Applied
Sciences, Onninen Group, Outotec Corporation, Patria Corporation, SATO
Corporation, Terveystalo, Vacon, City of Varkaus, Vaisala Corporation and the
Municipal IT unit of the Ministry of Finance.
The largest markets outside Finland in the reporting period were Russia, South
Africa, Belgium, Sweden, Great Britain and Japan. The Company delivered
software, among others, to Abu Dhabi Sewerage Services Company in United Arab
Emirates, Anglo Platinum and Real People in South Africa, City of Antwerp and
Sibelco in Belgium, IRKUT and TNK-BP in Russia, The Ministry of Health in
Lithuania, The Ministry of Justice in Lithuania, Millard Filters in Spain, The
University of Santiago in Chile, United Chemical Company in Kazakhstan,
Vattenfall in Sweden and to Aramark in the United States of America.
Consolidated net sales by business segments, (EUR 1,000):
Software Sales Business Operations Total
International Finland
April - June, 2011 932 852 1,784
Share-% 52.2 47.8 100.0
April - June, 2010 1,043 730 1,773
Share-% 58.8 41.2 100.0
Change-% -10.6 16.7 0.6
Jan - June, 2011 1,916 1,636 3,552
Share-% 53.9 46.1 100.0
Jan - June, 2010 2,002 1,441 3,443
Share-% 58.1 41.9 100.0
Change-% -4.3 13.5 3.2
Jan - Dec, 2010 4,077 2,860 6,937
Consolidated net sales by product group (EUR 1,000):
Software Maintenance Professional Total
licenses services services
April - June, 455 913 416 1,784
2011
Share-% 25.5 51.2 23.3 100.0
April - June, 484 930 359 1,773
2010
Share-% 27.3 52.5 20.2 100.0
Change-% -6.0 -1.8 15.9 0.6
Jan - June, 2011 903 1,863 786 3,552
Share-% 25.4 52.5 22.1 100.0
Jan - June, 2010 969 1,808 666 3,443
Share-% 28.1 52.5 19.4 100.0
Change-% -6.8 3.0 18.0 3.2
Jan - Dec, 2010 2,101 3,622 1,214 6,937
PROFIT DEVELOPMENT
April - June
QPR Software's consolidated operating profit in April - June rose 4.7% and was
EUR 179 thousand (171). Depreciation and amortization were EUR 134 thousand
(151). Business operations in Finland recorded a significant increase in
operating profit, thanks to increase in net sales. In contrast, decline in
channel net sales had a negative impact on profits from international
operations and thus the Group operating profit growth was modest. Group costs
increased 2.3% from previous year.
January - June
QPR Software's consolidated operating profit in January - June rose 6.3% and
was EUR 336 thousand (316). Depreciation and amortization were EUR 264 thousand
(280). Growth in operating profit was due to positive net sales development in
Business Operations Finland. Growth in operating profit was adversely impacted
by 3.6% rise in costs. Cost increase was due to outlays in business
development. Outlays in the reporting period were focused mainly on Finnish and
Russian markets, and the largest share of those were salary costs.
Operating profit by segments (EUR 1,000):
Software Sales Business Operations Not Total
International Finland allocated
April - June, 88 178 -87 179
2011
April - June, 193 67 -89 171
2010
Change-% -54.4 165.7 2.2 4.7
Jan - June, 242 265 -171 336
2011
Jan - June, 347 138 -169 316
2010
Change-% -30.3 92.0 -1.2 6.3
Jan - Dec, 777 320 -345 752
2010
FINANCE AND INVESTMENTS
Cash flow from operating activities in the reporting period January - June was
EUR 968 thousand (488). Strong growth in software subscription sales in the
reporting period had a positive effect in cash flow from operating activities.
Cash and cash equivalents at the end of reporting period were EUR 1,747
thousand (1,742).
The Group's investments totaled to EUR 250 thousand (169). The majority of the
investments were made in product development.
The purchase price for business operations bought from QPR´s Russian resellers
in November 2009 was set at EUR 272 thousand, including transaction costs. The
price was set according to the terms agreed in purchase agreement and the
financial results of the acquired operations between 1 March 2010 and 28
February 2011. The price is compensation for business operations that were
transferred into OOO QPR Software and it will be paid in 2011. As part of the
purchase price, the sellers received also 20 % share ownership in QPR CIS Oy.
For this 20% shareholding, a call option for QPR and put option for the
sellers, have been agreed. These options can be exercised in January 2014, the
earliest.
The Group´s interest bearing liabilities decreased and were EUR 680 thousand
(984) at the end of reporting period. The gearing ratio was -42.4% (-30.7).
Return on capital employed was 20.1% (15.2).
Current liabilities include deferred revenue in total of EUR 1,302 thousand
(1,080). At the end of the reporting period, quick ratio was 2.06 (2.14).
At the end of the reporting period, consolidated shareholders' equity stood at
EUR 2,525 thousand (2,457) and equity to assets ratio was 46.6% (42.2). Return
on equity was 18.9% (14.9).
As of 30 June 2011, the remaining amount of deferred tax in consolidated
balance sheet is EUR 181 thousand (353).
PERSONNEL
At the end of the reporting period, the Group employed a total of 65 persons
(66). Out of them 10 were employed by Group's Russian subsidiary. Average
number of personnel in the reporting period was 68 (63).
PRODUCT AND SERVICE DEVELOPMENT
The amount of product development expenses in the reporting period January-June
were EUR 688 thousand (697), representing 19.4% (20.2) of consolidated net
sales.
In the reporting period, product development expenses have been activated as
assets for a total amount of EUR 161 thousand (97). The amortization period for
capitalized product development expenses is 4 years. Amortization of product
development expenses in the reporting period was EUR 90 thousand (82).
Product development employed 16 persons at the end of reporting period, which
corresponds to 24.6% of the total personnel.
Product development activities in the reporting period focused on development
of a new version of the QPR product family, planned to be released at the end
of 2011.
Development resources for QPR ProcessAnalyzer, QPR's new software tool for
Automated Business Process Discovery, were increased during the reporting
period. The software executes automatically visual process analysis from
depository data in business applications.
QPR ProcessAnalyzer product version 2.0 was launched in February 2011. Also in
February, QPR and Marketing Resultang GmbH from Germany introduced a solution
for call centers, utilizing automated business process discovery by QPR
ProcessAnalyzer. In March, QPR and Finnish company Nobultec Ltd introduced an
automated business process discovery solution for optimizing SAP investments.
In early 2011, QPR introduced a solution for public sector enterprise
architecture, based on Finnish public sector JHS 179 recommendation. The first
project deliveries based on this solution were initiated in the review period.
SHARES AND TRADING WITH COMPANY'S SHARES
Trading of shares Jan - June, Jan - June, Jan - Dec,
2011 2010 2010
--------------------------------------------------------------------------------
Shares traded, pcs 226,901 507,051 881,585
Volume, EUR 200,923 470,973 805,808
% of shares 1.8 4.1 7.1
--------------------------------------------------------------------------------
Shares and market values June 30, 2011 June 30, 2010 December 31, 2010
--------------------------------------------------------------------------------
Total number of shares, pcs 12,444,863 12,444,863 12,444,863
Treasury shares, pcs 356,150 178,249 322,212
Book counter value, EUR 0.11 0.11 0.11
Outstanding shares, pcs 12,088,713 12,266,614 12,122,651
Number of Shareholders 589 621 600
Closing price, EUR 0.87 0.89 0.91
Market value, EUR 10,517,180 10,917,286 11,031,612
Acquired treasury shares in 33,938 20,249 64,212
reporting period, pcs
Book counter value of treasury 39,639 19,607 35,443
shares, EUR
Total purchase value of treasury 314,340 236,391 274,701
shares, EUR
Treasury shares % 2.9 1.4 2.6
--------------------------------------------------------------------------------
Company has no active option scheme.
OTHER EVENTS IN THE REPORTING PERIOD
Sami Tähtinen was appointed as Vice President, Products and Technology and
Member of Executive Management Team at QPR Software Plc in January 24, 2011. He
moved to QPR from CCC Corporation Ltd. Prior to this Mr. Tähtinen worked as
Chief Technology Officer in Frends Technology from 2002 to 2009. Sami Tähtinen
holds Master's degree in Engineering.
QPR Software Plc's Management System received ISO 9001:2008 quality
certification covering the Company's all actions on January 27, 2011.
QPR Software Plc's Board of Directors decided on 25 March 2011 a new
share-based incentive plan for the Group's executive management team. The plan
aims to align the objectives of shareholders and key employees to increase
shareholders value, to commit key employees to the company and to offer them a
competitive reward plan based on ownership of shares in the company.
EVENTS AFTER THE REPORTING PERIOD
QPR Software Plc announced on 28 July 2011 that it is acquiring all of the
issued shares of its co-operation partner Nobultec Ltd. The transaction will
take place on August 1, 2011. Nobultec Ltd is a service company that
specializes in business process development in SAP system environments. As the
transaction takes place, Nobultec becomes QPR Software Plc's 100% owned
subsidiary. The debt-free acquisition price is estimated to be approximately
EUR 0.7 - 0.8 million, and is divided into base consideration of approximately
EUR 0.7 million and provisional consideration of EUR 0.1 million. Provisional
consideration will be paid, if business targets set for years 2011 and 2012
will be reached.
M.Sc (Econ), M.Sc (tech) Mikko Mäki-Rahkola was appointed in July a Member of
the Executive Management Team as of 15 August, 2011. Mikko Mäki-Rahkola is
Nobultec Ltd´s Managing Director.
Maija Erkheikki, M.Sc.(Eng), was appointed in July as Vice President for
Software Sales International as of 15 August, 2011. Her latest position in QPR
was Vice President, Service & Solutions.
As of 15 August 2011, QPR Software´s Executive Management Teams consists of
Chief Executive Officer Jari Jaakkola (chairman); Vice President, Software
Sales International Maija Erkheikki; Vice President, Business Operations
Finland Matti Erkheikki; Vice President, Communications and Marketing Jyrki
Karasvirta; Vice President, Business Development Teemu Lehto; Chief Financial
Officer Päivi Martti; Nobultec´s Managing Director Mikko Mäki-Rahkola and Vice
President, Products and Technology Sami Tähtinen.
GOVERNANCE
The Annual Shareholders' Meeting held on 18 March, 2011 approved the Board's
proposal that a per-share dividend of EUR 0.03 (0.02), a total of EUR 362,876,
is paid for the financial year 2010 (243,737). The dividend was paid to
shareholders entered in the company's shareholder register, maintained by
Euroclear Finland Oy, on the record date of 23 March, 2011. The dividend
payment date was 1 April, 2011.
The Annual Shareholders' Meeting resolved that the Board of Directors consists
of four (4) ordinary members. The Annual Shareholders' Meeting elected the
following members to the Board of Directors: Aino-Maija Gerdt, Jyrki Kontio,
Vesa-Pekka Leskinen and Asko Piekkola. In its first meeting immediately
following the Annual Shareholders' Meeting, the Board of Directors elected
Vesa-Pekka Leskinen as Chairman of the Board.
KPMG Oy Ab, Authorized Public Accountants, continued as QPR Software Plc's
Auditors.
The Annual Shareholders' Meeting decided to authorize the Board of Directors to
decide on an issue of new shares and acquisition of its own shares from the
market.
The conditions of all authorizations of the Board and other decisions made by
the Annual Shareholders' Meeting are available in their entirety on the stock
exchange release published by the Company on 18 March, 2011 and available on
the investors section of the company's web site, www.qpr.com.
SHORT-TEM RISK AND UNCERTAINTIES
Internal control and risk management in QPR Software Plc aims to ensure that
the Company operates efficiently and effectively, distributes reliable
information, complies with regulations and operational principles, reaches its
strategic goals and ensures continuity of its business.
QPR has identified the following three groups of risks related to its
operations: risks related to business operations (country, customer, net sales
forecasting process, personnel, legal and financial), risks related to
information and products (QPR products, IPR, data security) and risks related
to financing (foreign currency, bad debt). Property, operational and liability
risks are covered by insurance. QPR monitors country, customer, personnel and
finance risks also in the Russian subsidiary OOO QPR Software.
Financial risks include reasonable credit risk concerning individual business
partners, which is characteristic to any international business. QPR seeks to
limit this credit risk by continuous monitoring of standard payment terms,
receivables and credit limits. The management of QPR estimates that the
company´s credit loss risk is on a customary and reasonable level.
The Company has hedged 16.0% of its foreign currency (non-Euro) trade
receivables.
No significant changes have taken place in QPR's short-term risks and
uncertainties during the financial period. Risks related to QPR Software´s
business are further described in the Annual Report 2010, page 15 onwards
(www.qpr.com/annual-reports.html).
FUTURE OUTLOOK
Market forecasts published in the beginning of 2011 estimate that the value of
global software sales will increase approximately 7.5% and global professional
services sales will increase 5-8% in 2011 compared to 2010.
QPR Software estimates the consolidated net sales 2011 to show significantly
faster growth than in the previous year (growth in year 2010: 4.8%) and
operating profit to remain approximately 10% of net sales. The forecast
includes acquired operations of Nobultec Ltd as of 1 August, 2011. In Finland,
growth is expected especially in software subscription net sales and enterprise
architecture services sales. In international markets, growth is expected from
Russia and CIS countries.
Seasonality of large software deals can affect significantly net sales and
profit of one individual quarter.
QPR SOFTWARE PLC'S FINANCIAL INFORMATION IN 2011
In 2011, QPR Software Plc will publish its interim report as follows:
-- Interim Report 1-9/2011: Thursday, October 20, 2011
QPR SOFWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0)40 5026 397
www.qpr.com
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Main Media
Neither this press release nor any copy of it may be taken, transmitted into or
distributed in the United States of America or its territories or possessions.
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) April - April - Jan - Jan - Jan - Dec,
June, 2011 June, 2010 June, 2011 June, 2010 2010
Net sales 1,784 1,773 3,552 3,443 6,937
Other operating 17 3 38 37 94
income
Material and 72 63 106 110 227
services
Employee benefits 1,053 1,040 2,175 2,049 4,094
expenses
Depreciation 134 151 264 280 532
Other operating 363 351 709 726 1,426
expenses
Operating profit 179 171 336 316 752
Financial income -8 -45 -24 -69 -45
and expenses
Profit before tax 171 126 312 246 707
Income tax expense -24 -33 -65 -58 -180
Profit for the 147 93 247 188 527
period
Profit for the period
attributable to:
Equity holders of 146 100 252 195 527
the
parent company
Non-controlling 1 -7 -5 -7 0
interest
--------------------------------------------------------------------------------
147 93 247 188 527
Earnings per share 0.01 0.01 0.02 0.02 0.04
(diluted), EUR
Earnings per share, 0.01 0.01 0.02 0.02 0.04
EUR
Consolidated Statement of comprehensive
income:
Profit for the 147 93 247 188 527
period
Exchange -3 45 -15 93 23
differences on
translating foreign
operations
Income tax relating - - - - -
to
components of other
comprehensive
income
Total comprehensive 144 138 232 281 550
income
Total comprehensive income attributable to:
Equity holders of 143 145 237 288 550
the
parent company
Non-controlling 1 -7 -5 -7 0
interest
--------------------------------------------------------------------------------
144 138 232 281 550
CONSOLIDATED BALANCE SHEET
(EUR 1,000) June June 30, Dec
30,2011 2010 31,2010
Assets
Non-current assets
Tangible assets 100 117 85
Other intangible assets 1,372 1,637 1,400
Other investments 5 5 5
Other long-term receivables 29 0 43
Deferred tax assets 181 353 233
Total non-current assets 1,687 2,112 1,766
Current assets
Trade and other receivables 3,287 3,063 3,781
Cash and cash equivalents 1,747 1,742 1,703
Total current assets 5,034 4,805 5,484
Total assets 6,721 6,917 7,250
================================================================================
Equity and liabilities June June Dec
30,2011 30,2010 31,2010
Equity
Share capital 1,359 1,359 1,359
Reserve fund 21 21 21
Invested non-restricted equity fund 5 5 5
Translation differences -85 -1 -70
Treasure shares -314 -236 -275
Retained earnings 1,543 1,315 1,653
Equity attributable to shareholders of the 2,529 2,463 2,693
parent company
Non-controlling interest -4 -6 1
Total equity 2,525 2,457 2,694
Non-current liabilities
Interest-bearing liabilities 453 679 566
Non-Interest-bearing liabilities 0 460 0
Total non-current liabilities 453 1,139 566
Current liabilities
Accounts payables and other payables 3,516 3,016 3,763
Interest-bearing liabilities 227 305 227
Total current liabilities 3,743 3,321 3,990
Total liabilities 4,196 4,460 4,556
Total equity and liabilities 6,721 6,917 7,250
================================================================================
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) Jan - June, Jan - June, Jan - Dec,
2011 2010 2010
Cash flow from operating activities
Profit for the period 247 188 527
Adjustments for the profit
Depreciation 264 280 532
Non-cash transactions -14 85 24
Changes in working capital
Changes in trade and 557 -341 -908
other receivables
Changes in accounts payable -81 306 759
and other liabilities
Interest expense and other financial -9 -21 -42
expenses
Interest income and other financial 5 4 8
income
Income taxes paid 0 -13 -40
Net cash from operating activities 968 488 860
Cash flow from investing activities
Purchases of tangible assets -51 -22 -39
Purchases of intangible assets -358 -147 -311
Net cash used in investing activities -409 -169 -350
Cash flow from financing activities
Repayments of long term loans -113 -113 -305
Purchases of own shares -40 -27 -66
Invested non-restricted equity fund 0 -122 -122
distribution
Dividends paid -362 -244 -244
Net cash used in financing activities -515 -506 -736
Net change in cash and cash 44 -187 -226
equivalents
Cash and cash equivalents in the 1,703 1,929 1,929
beginning of period
Cash and cash equivalents in the end 1,747 1,742 1,703
of period
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
JANUARY 1 - JUNE 30, 2011
(EUR 1,000) Jan 1, Purchase of Dividends Compre-hensi June 30,
2011 own shares paid ve income 2011
Share capital 1,359 1,359
Reserve fund 21 21
Translation -70 -15 -85
difference
Treasury shares -275 -39 -314
Invested 5 5
non-restricted
equity fund
Dividend paid -362 -362
Retained earnings 1,653 252 1,905
Non-controlling 1 -5 -4
interest
Total 2,694 -39 -362 232 2,525
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
JANUARY 1 - JUNE 30, 2010
(EUR 1,000) Jan 1, Purchase of Dividends Compre-hensi June 30,
2010 own shares paid ve income 2010
Share capital 1,359 1,359
Reserve fund 21 21
Translation -94 93 -1
difference
Treasury shares -209 -27 -236
Invested 127 -122 5
non-restricted
equity fund
Dividend paid -244 -244
Retained earnings 1,371 188 1,559
Non-controlling 0 -6 -6
interest
Total 2,575 -27 -366 275 2,457
APPENDIX
ACCOUNTING PRICIPLES OF CONSOLIDATED FINANCIAL STATEMENTS
The Interim Report has been prepared in accordance with the IAS 34 Interim
Report standard. The company has adopted certain new or revised IFRS standards
and IFRIC interpretations at the beginning of the financial period as
descripted in the Financial Statements for 2010. However, the adaption of these
new and amended standards has not yet had an effect on the reported figures in
practice. In other respects, the same accounting policies have been followed as
in the Financial Statements for 2010.
Upon closing of consolidated financial statements, the Group makes estimates
and assumptions regarding the future and makes considerations on the adoption
of accounting principles, which means that the actual results may differ from
those reported.
The amounts presented in the income statement and balance sheet are
consolidated figures.
The amounts presented in the report are rounded, so the sum of individual
figures may differ from the sum reported. The Interim Report is unaudited.
GROUP COMMITMENTS AND CONTIGENT LIABILTIIES
(EUR 1,000) June 30, June 30 Dec 31,
2011 2010 2010
Business mortgage 1,337 1,337 1,337
Current lease liabilities
Liabilities maturing during one year 276 231 235
Liabilities maturing 2-5 years 136 168 53
Total 412 399 288
Total commitments and contingent 1,749 1,736 1,625
liabilities
Currency Hedging (EUR 1,000) June 30, June 30 Dec 31,
2011 2010 2010
Nominal value 141 510 260
Current value -2 -11 -2
GROUP INTANGIBLE AND TANGIBLE ASSETS
Change in intangible assets
(EUR 1,000) June 30, 2011 June 30, 2010 Dec 31,
2010
Acquisition cost Jan 1 3,608 3,494 3,494
Increase 199 147 311
Change in tangible assets
(EUR 1,000) June 30, 2011 June 30, 2010 Dec 31, 2010
Acquisition cost Jan 1 1,021 983 983
Increase 51 22 38
CHANGE IN GROUP'S INTEREST BEARING LIABILITIES
(EUR 1,000) June 30, 2011 June 30, 2010 Dec 31,
2010
Interest bearing loans Jan 1 793 1,098 1,098
Withdrawals 0 0 0
Repayments -113 -113 -305
Interest bearing loans 680 984 792
30 June/31 Dec
CONSOLIDATED INCOME STATEMENT PER QUARTER
(EUR 1,000) Jan - Jan - April - April - July - Oct -
March, March, June, June, Sept, Dec,
2011 2010 2011 2010 2010 2010
Net sales 1,768 1,671 1,784 1,773 1,574 1,920
Other operating 21 34 17 3 13 44
income
Material and 34 47 72 63 50 67
services
Employee 1,122 1,009 1,053 1,040 925 1,120
benefits
expenses
Depreciation 130 129 134 151 151 101
Other operating 346 375 363 351 297 403
expenses
Operating 157 145 179 171 164 273
profit
Financial -16 -25 -8 -45 -11 34
income and
expenses
Profit before 141 120 171 126 153 307
tax
Income tax -41 -25 -24 -33 -55 -66
expenses
Profit for the 100 95 147 93 98 241
period
CONSOLIDATED INCOME STATEMENT BY SEGMENT
(EUR 1,000) April - April - Jan - June, Jan - June, Jan -
June, 2011 June, 2010 2011 2010 Dec,
2010
Net sales
Software Sales 932 1,043 1,916 2,002 4,077
International
Business 852 730 1,636 1,441 2,860
Operations
Finland
Not allocated 0 0 0 0 0
Total net sales 1,784 1,773 3,552 3,443 6,937
Operating profit
Software Sales 88 193 242 347 777
International
Business 178 67 265 138 320
Operations
Finland
Not allocated -87 -89 -171 -169 -345
Total operating 179 171 336 316 752
profit
Financial income -8 -45 -24 -69 -45
and expenses
Income tax expense -24 -33 -65 -58 -180
Profit for the 147 93 247 188 527
period
Other information
Depreciation
Software Sales 68 84 134 146 267
International
Business 66 67 130 134 265
Operations
Finland
Total depreciation 134 151 264 280 532
GROUP KEY FIGURES
EUR (1,000) Jan - June, 2011 Jan - June, 2010
Net sales 3,552 3,443
Net sales growth,% 3.2 3.8
Operating profit 336 316
% of net sales 9.5 9.2
Profit or loss before tax 312 246
% of net sales 8.8 7.1
Profit for the period 247 188
% of net sales 7.0 5.5
Return on equity,% 18.9 14.9
Return on investment,% 20.1 15.2
Interest bearing liabilities 680 984
Cash and cash equivalents 1,747 1,742
Net liabilities -1,067 -758
Equity 2,525 2,457
Gearing,% -42.4 -30.7
Equity ratio,% 46.6 42.2
Total balance sheet 6,721 6,917
Investments in non-current assets 244 169
% of net sales 6.9 4.9
Research and development expenses 688 697
% of net sales 19.4 20.2
Average number of personnel 68 63
Personnel at the beginning of period 65 57
Personnel at the end of period 65 66
Earnings per share, € 0.02 0.02
Earnings per share (diluted), € 0.02 0.02
Equity per share, € 0.20 0.20
CALCULATION OF KEY INDICATORS
Return on equity (ROE), %:
Profit for the period x 100
______________________________
Shareholders' equity (average)
Return on investment (ROI), %:
Profit before taxes + interest and other financial expenses x 100
_________________________________________________________________
Balance sheet total - non-interest bearing liabilities (average)
Equity ratio, %:
Shareholders' equity x 100
__________________________
Balance sheet total - deferred revenue
Gearing, %:
Interest bearing liabilities - cash and cash equivalents x 100
______________________________________________________________
Shareholders' equity
Earnings per share, euro:
Profit for period
___________________________________________________________
Adjusted number of shares over the financial year (average)
Equity per share, euro:
Shareholders' equity
Adjusted number of shares at the end of the financial period
Dividend per share, euro:
Total dividend paid
____________________________________________________________
Adjusted number of shares at the end of the financial period
Dividend / profit, %:
Dividend per share x 100
________________________
Earnings per share
Effective dividend yield, %:
Dividend per share (adjusted) x 100
_______________________________________________________
Adjusted share price at the end of the financial period
Price-earnings ratio (P/E):
Adjusted share price at the end of the financial period
_______________________________________________________
Earnings per share (adjusted)
Market value of share capital:
(Number of shares - own shares) x share price at the end of the financial period
Turnover of shares, % of share capital:
Turnover (number of shares) x 100
_________________________________
Number of shares issued (average)
Quick ratio:
Current assets - inventories
_______________________________________
Current liabilities - advances received