Published: 2014-04-29 08:30:00 CEST
QPR Software
Interim report (Q1 and Q3)

NET SALES INCREASED 7% AND PROFITABILITY IMPROVED FROM PREVIOUS YEAR

QPR SOFTWARE PLC       STOCK EXCHANGE RELEASE APRIL 29, 2014 AT 9.30 AM
  

INTERIM REPORT JANUARY – MARCH 2014

NET SALES INCREASED 7% AND PROFITABILITY IMPROVED FROM PREVIOUS YEAR

Summary first quarter 2014

  • Net sales EUR 2,225 thousand (2013: 2,082).
  • Net sales increased 7% mainly due to an increase in software license sales.
  • Recurring revenues (software rentals and maintenance services) increased 4% and were 54% of total net sales (56). Net sales from software rentals increased 14%. The growth in recurring revenues was slowed down by exchange rate changes in maintenance service revenues.
  • Operating profit EUR 107 thousand (-31).
  • Cash flow from operating activities EUR 517 thousand (1,269).
  • Profit before taxes EUR 103 thousand (-42).
  • Profit for the quarter EUR 93 thousand (-36).
  • Earnings per share EUR 0.008 (-0.003).

OUTLOOK

Operating environment and market outlook

The Company estimates that demand for enterprise architecture based business development services and software will increase in its home market Finland, as well as elsewhere in Europe. Development of operations in an enterprise architecture context, and not just in business process or in system development context, is a necessity in current competitive environment for more and more organizations. QPR provides its customers, through its software and services, an insight and control to various dimensions of their organizations, such as business processes, information, applications and technology.

QPR aims to grow in its home market Finland especially in the enterprise architecture based business development services and in the process analysis business. In the international markets, the Company’s goal is to significantly increase the sales of its innovative software products. In the international markets, the Company operates mainly through its reseller channel and puts effort in recruiting new resellers.

Outlook for 2014

The Company estimates its net sales and operating profit in euros to increase in 2014, compared to 2013. 

KEY FIGURES

         
EUR in thousands, unless otherwise indicated Jan-Mar 2014 Jan-Mar 2013 Change, % Jan-Dec 2013
         
Net sales 2,225 2,082 6.9 8,688
EBITDA 305 142 114.8 1,285
 % of net sales 13.7 6.8   14.8
Operating profit 107 -31   578
 % of net sales 4.8 -1.5   6.7
Profit before tax 103 -42   554
Profit for the period 93 -36   521
 % of net sales 4.2 -1.7   6.0
         
Earnings per share, EUR 0.008 -0.003   0.043
Equity per share, EUR 0.235 0.236 -0.4 0.231
         
Cash flow from operating activities 517 1,269 -59.3 1,661
Cash and cash equivalents 1,496 2,443 -38.8 1,365
Free cash flow 282 1,055 -73.3 815
Net borrowings -1,496 -2,104 -28.9 -1,252
Gearing, % -51.2 -71.7   -43.6
Equity ratio, % 55.8 53.1   42.5
Return on equity, % 12.9 -4.9   17.8
Return on investment, % 14.6 -3.4   18.3

REPORTING

This report complies with requirements of IAS 34 ”Interim Financial Reporting”. Starting from the beginning of 2014, the Group has applied certain new or revised IFRS standards and IFRIC interpretations as described in the Consolidated Financial Statements 2013. The implementation of these new and revised requirements have not impacted the reported figures. For all other parts, the accounting principles and methods are the same as they were in the 2013 financial statements. This report is unaudited.

QPR Software’s business operations consist of software and consulting services sales. The Company reports income for products and services as follows: software license sales, software maintenance services, software rentals, and consulting services.

Starting from the beginning of 2014, the Company also reports fixed-price extended software maintenance services as part of software maintenance. Earlier, these services were reported as part of consulting revenues. Comparative figures for 2013 have not been restated. In the first quarter of 2014, the change increased net sales from software maintenance by EUR 31 thousand and, accordingly, decreased net sales from consulting services with the same amount.

QPR reports the following operating segments: Direct and OEM business (software license and rental sales, maintenance and consulting services sales to direct customers and OEM customers) and Resellers (software license and rental sales, maintenance and consulting services sales through resellers and the Russian subsidiary).

REVIEW BY THE CEO

In the first quarter of 2014, the Company’s software net sales grew approximately 10 percent, despite the continued challenging market situation. Net sales from both software licenses and software rentals grew significantly from the previous year. This shows that the Company’s software for operational development is in great demand even at economically challenging times.

The Company’s consulting net sales were at the previous year’s level, and a twofold development trend was visible. Operational development consulting based on enterprise architecture continued to grow rapidly, while net sales from technical consulting declined in a tight market situation.

Going forward, QPR Software will focus more and more in software and consulting aimed at operational development of organizations. With QPR’s tools and services, the business operations of the customer organizations are modeled, analyzed, planned, and measured. This helps the customers to succeed in strategy implementation and business development. Changes and decisions needed in this development can be implemented in a controlled manner, efficiently, and in line with chosen strategy.

The Company will seek growth especially through its new software products QPR EnterpriseArchitect and QPR ProcessAnalyzer, both launched in the 2010s, and through its expanding operational development consulting. In Finland, the Company’s software products have a leading position in their markets. The strengthening of this position, together with further expansion of the enterprise architecture consulting, are the main targets in the Company’s home market in Finland. In the international business, the Company’s growth strategy is entirely based on software sales. During the current year, the Company will continue expanding its international reseller channel especially for software aimed at enterprise architecture modeling, and process modeling and analysis.

Jari Jaakkola
CEO

NET SALES

Net sales in the first quarter were EUR 2,225 thousand (2,082) and increased 6.9% from the corresponding period of the previous year. The increase was especially due to growth in software license net sales, as compared to the situation in the beginning of the previous year. 

Net sales by product group

         
EUR in thousands Jan-Mar 2014 Jan-Mar 2013 Change, % Jan-Dec 2013
         
Software licenses 300 198 52 1,034
Software maintenance services 764 771 -1 3,021
Software rentals 444 390 14 1,656
Consulting 717 722 -1 2,977
Total 2,225 2,082 7 8,688

Demand for software licenses in the developing markets clearly picked up in the first quarter of 2014, compared to the difficult first quarter in 2013. In the developed markets, however, more and more customers favor software rentals instead of purchasing software licenses, which has a negative impact on software license net sales and, on the other hand, a positive impact on software rental net sales. 

Software maintenance services relate to contract based customer support and software updates for earlier sold software licenses. Strengthening of the euro against main export currencies (U.S. dollar, South African rand, Russian ruble, and Japanese yen) had a negative impact on maintenance service net sales in the first quarter. Approximately 60% of maintenance service net sales came from international customers and 40% from Finnish customers. 

Rental net sales of QPR’s software have grown strongly already for several years. This development continued also in the first quarter. Of all new software sales, the share of rental sales is especially large in the Company’s home market Finland. The vast majority of software rentals is based on continuing agreements signed with the customers. Net sales from software rentals grew 14% in the first quarter. 

Consulting net sales in the first quarter were at the previous year’s level. Especially the consulting for enterprise architecture based operational development grew strongly, while net sales from technical consulting declined due to continued difficult market situation. 

Total recurring revenues (net sales from software maintenance services and software rentals) grew 4% in the first quarter. The growth in recurring revenues was slowed down by exchange rate changes in maintenance service revenues. The share of recurring revenues was 54% (56) of total net sales.

Net sales by segment

         
EUR in thousands Jan-Mar 2014 Jan-Mar 2013 Change, % Jan-Dec 2013
         
Direct and OEM business 1,453 1,349 8 5,574
Resellers 772 733 5 3,114
Total 2,225 2,082 7 8,688

In the first quarter, net sales in the Direct and OEM business grew 8%. The growth was especially strong in net sales from software and consulting for enterprise architecture based operational development. Net sales from technical consulting decreased.

Net sales in the Resellers business increased 5% from the previous year, mainly due to growth in software license net sales. The growth was slowed down by negative exchange rate changes in maintenance service revenues, and by unfavorable business development in Russia.

FINANCIAL PERFORMANCE

Operating profit

In the first quarter, the Group’s operating profit was EUR 107 thousand (-31), or 4.8% of net sales (-1.5). Operating profit increased from the previous year mainly due to higher net sales. 

The Group’s total expenses declined 1% compared to the previous year. Personnel expenses were at the previous year’s level.

Operating profit by segment

         
EUR in thousands Jan-Mar 2014 Jan-Mar 2013 Change, % Jan-Dec 2013
         
Direct and OEM business 92 18 411 536
Resellers 106 40 165 385
Unallocated -90 -89 1 -343
Total 107 -31   578

In the first quarter, operating profit in the Direct and OEM business increased from the previous year, due to growth in net sales.

Operating profit in the Resellers business increased mainly due to higher net sales from software licenses. Operating profit for the Resellers business includes credit losses of EUR 3 thousand (21).

Other items in the comprehensive income statement

Net financial expenses in the first quarter were EUR 4 thousand (11). Net financial expenses included foreign exchange losses of EUR 4 thousand (7). 

Profit before taxes in the quarter was EUR 103 thousand (-42).

QPR Software puts significant efforts in developing its software and service products, and expects to be able to utilize an additional tax deduction on research and development activities, valid for years 2013 – 2014 in Finland. Therefore, similar to 2013, the effective tax rate for the quarter was significantly lower than the Finnish corporate tax rate.

Profit for the first quarter was EUR 93 thousand (-36), and earnings per share were EUR 0.008 (-0.003).

FINANCE AND INVESTMENTS

Cash flow from operating activities was EUR 517 thousand (1,269) in the first quarter. Cash and cash equivalents at the end of the quarter were EUR 1,496 thousand (2,443).

Investments in the first quarter totaled EUR 235 thousand (214). More than half of the investments were made in product development.

At the end of the quarter, the Company had no interest-bearing liabilities. At the end of comparative first quarter of 2013, interest-bearing liabilities were EUR 339 thousand. The gearing ratio was -51% (-72). Current liabilities include deferred revenue in total of EUR 2,072 thousand (2,028). Return on investment was 15% (-3) in the first quarter.

At the end of the quarter, equity ratio was 56% (53) and the consolidated shareholders’ equity was EUR 2,920 thousand (2,935). Return on equity was 13% (-5) in the first quarter.

The Annual General Meeting on March 13, 2014 authorized the Board of Directors to decide on issuing a maximum of 4,000,000 new shares, to decide on conveyance of a maximum of 700,000 own shares held by the Company, and to decide on acquiring a maximum of 250,000 own shares. The authorizations are in force until the next Annual General Meeting.

PRODUCT DEVELOPMENT

Product development expenses in the first quarter were EUR 465 thousand (461), equal to 21% (22) of net sales. Product development expenses do not include amortization of capitalized product development expenses.

During the quarter, product development expenses were capitalized for a total amount of EUR 147 thousand (110). The amortization period for capitalized product development expenses is four years. The amortization of capitalized product development expenses in the quarter was EUR 84 thousand (69).

Product development employed 26 persons at the end of the quarter, equal to 33% of the total personnel.

The Company develops the following software products: QPR EnterpriseArchitect, QPR Metrics, QPR ProcessDesigner, and QPR ProcessAnalyzer. 

By developing its consulting service products, the Company aims to grow its local business in Finland, and to accelerate its international software sales by offering complementary service concepts and solutions to its reseller partners.

PERSONNEL

At the end of the quarter, the Group employed a total of 79 persons (84). Average number of personnel during the quarter was 81 (84) and personnel expenses totaled EUR 1,525 thousand (1,528).

For incentive purposes, the Company has a bonus program that covers all employees. Remuneration of the top management consists of salary, fringe benefits and a possible annual bonus based on net sales and operating profit performance. In 2014, the maximum annual bonus of executive management team, including the CEO, is 60% of the annual base salary. More information on incentive plans can be found in the Annual Report 2013 (www.qpr.com/investors/key-figures-and-reports.htm).

SHARES AND SHAREHOLDERS

         
Trading of shares Jan-Mar 2014 Jan-Mar 2013 Change, % Jan-Dec 2013
         
Shares traded, pcs 501,248 183,806 173 624,427
Volume, EUR 464,534 175,137 165 586,842
% of shares 4.0 1.5   5.0
Average trading price, EUR 0.93 0.95 -3 0.94
Treasury shares acquired during the year, pcs 37,400 16,716 124 133,722
         
Shares and market capitalization Mar 31, 2014 Mar 31, 2013 Change, % Dec 31, 2013
         
Total number of shares, pcs 12,444,863 12,444,863 - 12,444,863
Treasury shares, pcs 457,009 302,603 51 419,609
Book counter value, EUR 0.11 0.11 - 0.11
Outstanding shares, pcs 11,987,854 12,142,260 -1 12,025,254
Number of shareholders 661 617 7 627
Closing price, EUR 0.93 0.94 -1 0.93
Market capitalization, EUR 11,148,704 11,413,724 -2 11,183,486
Book counter value of all treasury shares, EUR 50,271 33,286 51 46,157
Total purchase value of all treasury shares, EUR 430,307 273,256 57 395,134
Treasury shares, % of all shares 3.7 2.4   3.4

The Annual General Meeting held on March 13, 2014 approved the Board's proposal that a per-share dividend of EUR 0.04 (0.04), a total of EUR 480 thousand (486), be paid for the financial year 2013. The dividend was paid to shareholders entered in the Company's shareholder register, maintained by Euroclear Finland Oy, on the record date of March 18, 2014. The dividend payment date was April 3, 2014.

OTHER EVENTS DURING THE QUARTER

In January, QPR Software released QPR Suite 2014, which includes the software tools for architecture based business development, as well as the related supporting methodology. QPR Suite 2014 is available in over 20 languages.

In January, QPR Software also released a new version of the QPR ProcessAnalyzer software. Release 2014.1 brings added efficiency to the process analysis with an integrated data extraction. In addition to the most common IT systems, data can now also be extracted directly from databases used by the companies. Automated email notifications and process flow animation raise the control and visualization of the process performance to a totally new level.

In February, QPR Software announced that Gartner Inc., an international ICT research and consulting company,  has ranked QPR Software in the best tier used in its report “MarketScope for Enterprise Business Process Analysis”, with the rating “Positive”. According to Gartner, the potential customers should consider vendors in this category as a viable choice for their strategic or tactical investments. Gartner evaluated the vendors on the following criteria: product/service, overall viability, market understanding, offering (product) strategy, business model, innovation, and customer experience, with the latter two having a higher weighting.

In March, QPR Software and Tieto, the largest Nordic IT services company, signed a cooperation agreement with the aim to offer customers business driven enterprise architecture services for gaining substantial business benefits. QPR provides Tieto with QPR EnterpriseArchitect software together with the methodology for business driven enterprise architecture. The agreement enables QPR Software, together with Tieto, to offer customers more comprehensive services, increasing the business benefits that can be gained from enterprise architecture work. 

In March, QPR Software and Affecto Finland Oy signed a cooperation agreement, through which Affecto can offer its customers data driven approach for analysis and improvement of processes. QPR provides Affecto with the automated business process discovery (ABPD) software, QPR ProcessAnalyzer. The agreement enables QPR Software, together with Affecto, to offer customers a way to bring transparency to processes and see the process changes, and thereby be able to have a direct impact on their business performance.

GOVERNANCE

The Annual General Meeting on March 13, 2014 resolved that the Board of Directors consists of four (4) ordinary members. The AGM re-elected the following members to the Board of Directors: Kirsi Eräkangas, Jyrki Kontio, Vesa-Pekka Leskinen and Topi Piela. In its meeting following the Annual General Meeting, the Board of Directors elected Vesa-Pekka Leskinen as Chairman of the Board. 

The AGM elected KPMG Oy Ab, Authorized Public Accountants, to continue as QPR Software Plc's auditors, with Kirsi Jantunen, Authorized Public Accountant, acting as principal auditor.

The AGM authorized the Board to decide on issuing new shares, conveying own shares held by the Company, and repurchasing the Company’s own shares. 

All authorizations of the Board and other decisions made by the Annual General Meeting are available in their entirety on the stock exchange release published by the Company on March 13, 2014 and available on the investors section of the Company's web site, http://www.qpr.com/investors/stock-exchange-releases.htm.

SHORT-TERM RISKS AND UNCERTAINTIES

Internal control and risk management in QPR Software aims to ensure that the Company operates efficiently and effectively, distributes reliable information, complies with regulations and operational principles, reaches its strategic goals, reacts to changes in the market and operational environment, and ensures the continuity of its business. 

QPR has identified the following four groups of risks related to its operations: risks related to business operations (country, customer, service delivery, personnel, legal and financial risks as well as risks related to the Company’s resellers), risks related to information and products (QPR products, IPR, data security), risks related to financing (foreign currency, bad debt), and risks related to new businesses (growth of new business, product development investments in new business). The Company has an insurance policy for property, operational and liability risks. The Company 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. In the first quarter of 2014, EUR 3 thousand (21) of credit losses were recorded. The amount of trade receivables over 60 days past due was 10% (8) of total trade receivables at the end of the quarter.

Approximately 75% of Group’s trade receivables were in euro at the end of the quarter. At the end of the quarter, the Company had not hedged its non-euro trade receivables.

No significant changes have taken place in the Company’s short-term risks and uncertainties during the quarter. Risks and risk management related to the Company’s business are further described in the Annual Report 2013, pages 13-15 (http://www.qpr.com/investors/key-figures-and-reports.htm).

FINANCIAL INFORMATION

In 2014, QPR Software will publish interim reports in English and Finnish on the following dates:

  • Interim Report Q2/2014: Thursday, July 31, 2014
  • Interim Report Q3/2014: Wednesday, October 29, 2014

QPR SOFTWARE PLC
BOARD OF DIRECTORS

Further information:
Jari Jaakkola, CEO
Tel. +358 (0) 40 5026 397

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Main Media

Neither this press release nor any copy of it may be taken, transmitted or distributed, directly or indirectly, in or into the United States of America or its territories or possessions.

CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
         
EUR in thousands, unless otherwise indicated Jan-Mar 2014 Jan-Mar 2013 Change, % Jan-Dec 2013
         
Net sales 2,225 2,082 7 8,688
Other operating income 15 32 -53 32
         
Materials and services 85 61 39 292
Employee benefit expenses 1,525 1,528 0 5,703
Other operating expenses 325 383 -15 1,439
EBITDA 305 142 115 1,285
         
Depreciation and amortization 197 173 14 707
Operating profit 107 -31   578
         
Financial income and expenses -4 -11 -64 -25
Profit before tax 103 -42   554
         
Income taxes -10 6   -33
Profit for the period 93 -36   521
         
         
Earnings per share, EUR (basic and diluted) 0.008 -0.003   0.043
         
Consolidated statement of comprehensive income:        
Profit for the period 93 -36   521
Other items in comprehensive income that may        
be reclassified subsequently to profit or loss:        
  Exchange differences on translating        
  foreign operations -8 2   -12
  Income tax relating to components of        
  other comprehensive income - -   -
  Total comprehensive income 85 -34   509

  

CONSOLIDATED BALANCE SHEET        
         
EUR in thousands Mar 31, 
2014
Mar 31,
2013
Dec 31,
2013
Change,
%
         
Assets        
         
Non-current assets:        
Intangible assets 1,672 1,540 1,628 3
Goodwill 513 513 513 0
Tangible assets 202 197 207 -2
Other non-current assets 86 122 82 5
Total non-current assets 2,473 2,372 2,431 2
         
Current assets:        
Trade and other receivables 3,336 2,745 4,365 -24
Cash and cash equivalents 1,496 2,443 1,365 10
Total current assets 4,832 5,188 5,730 -16
         
Total assets 7,305 7,560 8,161 -10
         
Equity and liabilities        
         
Equity:        
Share capital 1,359 1,359 1,359 0
Other funds 21 21 21 0
Treasury shares -430 -273 -395 9
Translation differences -189 -167 -181 4
Invested non-restricted equity fund 5 5 5 0
Retained earnings 2,154 1,990 2,061 5
Equity attributable to shareholders of the parent company 2,920 2,935 2,871 2
         
Non-current liabilities:        
Borrowings - 113 -  
Non-interest-bearing liabilities 38 66 42 -10
Total non-current liabilities 38 179 42 -10
         
Current liabilities:        
Borrowings - 226 113 -100
Advances received 2,072 2,028 1,406 47
Accrued expenses and prepaid income 2,033 1,798 2,976 -32
Trade and other payables 243 393 753 -68
Total current liabilities 4,348 4,445 5,248 -17
         
Total liabilities 4,385 4,625 5,290 -17
         
Total equity and liabilities 7,305 7,560 8,161 -10

 

CONSOLIDATED CASH FLOW STATEMENT      
               
EUR in thousands Jan-Mar 2014 Jan-Mar 2013 Change,
%
Jan-Dec 2013      
               
Cash flow from operating activities:              
Profit for the period 93 -36   521      
Adjustments to the profit 190 166 14 700      
Working capital changes 279 1,188 -77 573      
Interest and other financial expenses paid -4 -4 0 -30      
Interest and other financial income received 0 2 -100 8      
Income taxes paid -42 -47 -11 -111      
Net cash from operating activities 517 1,269 -59 1,661      
               
Cash flow from investing activities:              
Acquired subsidiaries - -3   -3      
Purchases of tangible and intangible assets -235 -214 10 -846      
Net cash used in investing activities -235 -217 8 -849      
               
Cash flow from financing activities:              
Repayments of long-term borrowings -113 -   -226      
Repurchase of shares -35 -12 192 -134      
Dividends paid - -   -486      
Net cash used in financing activities -148 -12 1133 -847      
               
Net change in cash and cash equivalents 133 1,040 -87 -35      
Cash and cash equivalents at the beginning of the period 1,365 1,404 -3 1,404      
Effects of exchange rate changes on cash and cash equivalents -1 -1 0 -4      
Cash and cash equivalents at the end of the period 1,496 2,443 -39 1,365      
     
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY    
                 
EUR in thousands Share capital Other funds Translation differences Treasury shares Invested non-restricted equity fund Retained earnings Total  
Equity Jan 1, 2013 1,359 21 -169 -261 5 2,026 2,981  
Repurchase of shares       -12     -12  
Comprehensive income     2     -36 -34  
Equity Mar 31, 2013 1,359 21 -167 -273 5 1,990 2,935  
Dividends paid           -486 -486  
Repurchase of shares       -122     -122  
Comprehensive income     -14     557 543  
Equity Dec 31, 2013 1,359 21 -181 -395 5 2,061 2,871  
Repurchase of shares       -35     -35  
Comprehensive income     -8     93 85  
Equity Mar 31, 2014 1,359 21 -189 -430 5 2,154 2,920  
                                 

NOTES TO INTERIM FINANCIAL STATEMENTS

ACCOUNTING PRICIPLES

This report complies with requirements of IAS 34 ”Interim Financial Reporting”. Starting from the beginning of 2014, the Group has applied certain new or revised IFRS standards and IFRIC interpretations as described in the Consolidated Financial Statements 2013. The implementation of these new and revised requirements have not impacted the reported figures. For all other parts, the accounting principles and methods are the same as they were in the 2013 financial statements.

When preparing the consolidated financial statements, management is required to make estimates and assumptions regarding the future and to consider the appropriate application of accounting principles, which means that actual results may differ from those estimated.

All amounts presented in this report are consolidated figures, unless otherwise noted. The amounts presented in the report are rounded, so the sum of individual figures may differ from the sum reported. This report is unaudited.

During the reporting period, the Group did not have any financial instruments measured at fair value.

INTANGIBLE AND TANGIBLE ASSETS    
       
EUR in thousands Jan-Mar 2014 Jan-Mar 2013 Jan-Dec
2013
       
Increase in intangible assets:      
Acquisition cost Jan 1 6,112 5,428 5,428
Increase 221 138 687
       
Increase in tangible assets:      
Acquisition cost Jan 1 1,351 1,234 1,234
Increase 20 76 159
       
       
CHANGE IN INTEREST-BEARING LIABILITIES    
       
EUR in thousands Jan-Mar 2014 Jan-Mar 2013 Jan-Dec
2013
       
Interest-bearing liabilities Jan 1 113 339 339
Repayments -113 - -226
Interest-bearing liabilities
Mar 31/Dec 31
- 339 113

 

PLEDGES AND COMMITMENTS        
         
EUR in thousands Mar 31,  2014 Mar 31, 2013 Dec 31, 2013 Change,
%
         
Business mortgages (held by the Company) 1,393 1,397 1,394 0
         
Minimum lease payments based on lease        
agreements        
  Maturing in less than one year 167 404 163 2
  Maturing in 1-5 years 54 11 38 43
  Total 221 415 201 10
         
Total pledges and commitments 1,614 1,812 1,595 1

 

CONSOLIDATED INCOME STATEMENT BY QUARTER    
             
EUR in thousands Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013  
             
Net sales 2,225 2,310 1,961 2,335 2,082  
Other operating income 15 - - - 32  
             
Materials and services 85 86 72 73 61  
Employee benefit expenses 1,525 1,482 1,209 1,484 1,528  
Other operating expenses 325 348 327 382 383  
EBITDA 305 395 353 396 142  
             
Depreciation and amortization 197 178 183 174 173  
Operating profit 107 217 171 222 -31  
             
Financial income and            
expenses -4 -11 -3 0 -11  
Profit before tax 103 206 167 222 -42  
             
Income taxes -10 19 -25 -33 6  
Profit for the period 93 225 142 189 -36  
                             

 

 
SEGMENT INFORMATION
           
EUR in thousands Jan-Mar 2014 Jan-Mar 2013 Change, % Jan-Dec 2013
           
Net sales        
  Direct and OEM business 1,453 1,349 8 5,574
  Resellers 772 733 5 3,114
  Total 2,225 2,082 7 8,688
           
EBITDA        
  Direct and OEM business 209 118 77 921
  Resellers 186 113 65 708
  Unallocated -90 -89 1 -343
  Total 305 142 115 1,285
           
Operating profit        
  Direct and OEM business 92 18 411 536
  Resellers 106 40 165 385
  Unallocated -90 -89 1 -343
  Total 107 -31   578
           
Financial income and expenses -4 -11 -64 -25
Income taxes -10 6   -33
Profit for the period 93 -36   521
           
Other information:        
           
Depreciation and amortization        
  Direct and OEM business 117 100 17 384
  Resellers 81 73 11 323
  Total 197 173 14 707

 

GROUP KEY FIGURES      
       
EUR in thousands, unless otherwise indicated Jan-Mar or Mar 31, 2014 Jan-Mar or Mar 31, 2013 Jan-Dec or Dec 31, 2013
       
Net sales 2,225 2,082 8,688
Net sales growth, % 6.9 -5.9 -6.8
EBITDA 305 142 1,285
 % of net sales 13.7 6.8 14.8
Operating profit 107 -31 578
 % of net sales 4.8 -1.5 6.7
Profit before tax 103 -42 554
 % of net sales 4.6 -2.0 6.4
Profit for the period 93 -36 521
 % of net sales 4.2 -1.7 6.0
       
Return on equity, % 12.9 -4.9 17.8
Return on investment ,% 14.6 -3.4 18.3
Borrowings - 339 113
Cash and cash equivalents 1,496 2,443 1,365
Free cash flow 282 1,055 815
Net borrowings -1,496 -2,103 -1,252
Equity 2,920 2,935 2,871
Gearing, % -51.2 -71.7 -43.6
Equity ratio, % 55.8 53.1 42.5
Total balance sheet 7,305 7,560 8,161
       
Investments in non-current assets 236 214 846
 % of net sales 10.6 10.3 9.7
Product development expenses 465 461 1,683
 % of net sales 20.9 22.1 19.4
       
Average number of personnel 81 84 82
Personnel at the beginning of period 79 81 81
Personnel at the end of period 79 84 79
       
Earnings per share, EUR 0.008 -0.003 0.043
Equity per share, EUR 0.235 0.236 0.231