Published: 2018-02-15 07:30:00 CET
QPR Software
Financial Statement Release

Strong Growth in License Sales


Summary for the fourth quarter 2017

  • Net sales EUR 2,381 thousand (Q4/2016: 2,315).
  • Net sales increased by 3% due to 9% higher software sales. Growth in software license sales was particularly strong and amounted to 77%, while consulting net sales decreased.
  • Operating profit was EUR 187 thousand (252), representing 7.9% of net sales (10.9). Increased costs related to sales and marketing, as well as personnel.
  • Profit before taxes EUR 180 thousand (242).
  • Profit for the fourth quarter EUR 110 thousand (217).
  • Earnings per share EUR 0.009 (0.018).

Summary for the full year 2017

  • Net sales EUR 8,484 thousand (2016: 8,634).
  • Net sales decreased by 2% due to a decline of 7% in consulting sales as compared to previous year.
  • Operating profit was EUR 432 thousand (761), representing 5.1% of net sales (8.8). Increased expenses were mainly due to personnel costs that were higher than previous year.
  • Profit before taxes EUR 393 thousand (710).
  • Profit for the year EUR 247 thousand (568).
  • Earnings per share EUR 0.021 (0.047).
  • The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.03 be paid to shareholders for the financial year 2017 (0.03).

Business operations

QPR Software focuses on providing software and professional services to organizations for operational development. Our software and services are used in over 50 countries. The Company offers its customers insight to their business operations through modeling, analysis and performance monitoring. This insight enables customers to streamline operations and to improve and execute their strategies effectively.


Operating environment and market outlook

In recent years, QPR Software has invested heavily in developing the Company´s new process mining software, as well as renewing all user interfaces of its software products. The Company estimates that the demand for process mining software and related services will continue to grow in 2018. Growth focus is on Europe, even though the demand for process mining software, especially in large organizations, is also growing strongly outside Europe. Due to the current early market stage, country specific differences in demand will continue to be significant.

In developed markets, competition in software business for process and enterprise architecture modeling and performance management is expected to remain strong. The Company still sees growth potential for these products in emerging markets.

Outlook for 2018

The Company estimates that its net sales will grow in 2018. The growth in net sales will be driven by software business, in particular the process mining software QPR ProcessAnalyzer. Net sales from consulting services are also expected to grow from previous year.

In the course of 2018, QPR will invest more in its growing business segments and is planning to increase its resources, especially in international sales and marketing. Despite the increase in costs, the Company estimates that its comparable operating profit will improve from previous year.


EUR in thousands,
unless otherwise indicated         
Oct-Dec, 2017    Oct-Dec, 2016    Change, %    Jan-Dec, 2017    Jan-Dec, 2016    Change, %
Net sales2,3812,31538,4848,634-2
 % of net sales18.320.7 15.918.9 
Operating profit187252-26432761-43
 % of net sales7.910.9 5.18.8 
Profit before tax180242-26393710-45
Profit for the period110217-49247568-56
 % of net sales4.69.4 2.96.6 
Earnings per share, EUR0.0090.018-490.0210.047-56
Equity per share, EUR0.2520.261-40.2520.261-4
Cash flow from operating
Cash and cash equivalents318565-44318565-44
Net borrowings-318-565-44-318-565-44
Gearing, %-10.1-17.4 -10.1-17.4 
Equity ratio, %55.846.3 55.846.3 
Return on equity, %14.427.6 7.718.4 
Return on investment, %22.930.0 13.824.6 


QPR Software innovates, develops, sells and delivers software and services for the international marketplace aimed at Operational development in organizations. QPR Software reports one operating segment: Operational development of organizations. In addition to this, the Company reports revenue from products and services as follows: Software licenses, Software maintenance services, Software rentals, and Consulting. Software rentals and Software maintenance services together form the recurring revenue reported by the Company. Recurring revenue is based on long-term contracts continuing for the time being or for a fixed period of several years. Rental and maintenance charges are typically invoiced annually in advance.

The geographical areas reported are Finland, the rest of Europe (also including Russia and Turkey), and the rest of the world. Net sales are reported according to the customer’s location.


The amount and value of offers made in software sales grew steadily from spring 2017 onwards, resulting in an increased number of orders received at the end of the year October – December. In the fourth quarter, software license sales grew by 77% resulting in significant growth in software net sales. I expect this overall growth trend to continue, even though software sales of individual quarters will continue to fluctuate depending on the timing of larger license deals.

During the past year we significantly increased our resources in product development and succeeded in further strengthening the competitiveness of our process mining software. In the future we will develop our product capabilities focusing on process mining and performance monitoring, while not forgetting modeling.

In addition to business modeling, planning and measurement, our software products are used to an increasing extent for supporting organizations´ operations and related content publishing. This requires excellent user experience from our products. During the past year we launched a new user interface designed for all our software products, improving the quality of user experience significantly.

After the actions and investments targeted to further strengthen the competitiveness of our products, we will now concentrate more on strengthening resources and increasing activities in sales and marketing.

Jari Jaakkola
Chief Executive Officer


EUR in thousandsOct-Dec, 2017  Oct-Dec, 2016 Change,
      Jan-Dec, 2017      Jan-Dec, 2016 Change,
Software licenses654370771,6631,31626
Software maintenance services615713-142,6022,776-6
Software rentals376426-121,5381,670-8
EUR in thousandsOct-Dec, 2017Oct-Dec,
Europe incl. Russia and Turkey468491-51,6891,748-3
Rest of the world277342-191,0371,252-17
Total2,3812,31538,4848,634  -2

October – December 2017

Net sales amounted to EUR 2,381 thousand (2,315). Net sales increased by 3% compared to the corresponding period in the previous year. This was due to higher software sales resulting from strong growth in license sales in the period October – December.

Software license net sales increased by 77% compared to the corresponding period in the previous year, with a total of EUR 654 thousand (370). This positive development when compared to previous year resulted from growth in software license sales in process mining, enterprise architecture and process modeling. 

Software maintenance services and software rental net sales decreased from previous year. This was mainly due to intensified competition in the market for performance management and modeling software that resulted in higher customer churn. The share of recurring revenue was 42% (49) of total net sales.

Consulting net sales decreased by 9%, which was mainly caused by a significant decrease in subcontracted technical consulting services.

As for the Group’s net sales, 69% (64) were derived from Finland, 20% (21) from the rest of Europe (including Russia and Turkey) and 12% (15) from the rest of the world.

January – December 2017

Net sales for 2017 were EUR 8,484 thousand (8,634), resulting in a decrease of 2%. This was caused by a decline in consulting sales. Software net sales grew slightly.

Software license net sales grew by 26% from previous year and amounted to EUR 1,663 thousand (1,316). Growth was particularly strong in modeling software licence sales. The vast majority of software license net sales were derived from international markets.

Software maintenance services and software rental net sales decreased compared to previous year. The decrease in software rental net sales was mainly related to the fact that during the past year, sales efforts focused more on software license sales. Net sales in software rental and maintenance were also negatively affected by increased competition in some of QPR’s major software markets, which resulted in higher customer churn. In addition, exchange rate changes had a negative impact, especially on net sales from software maintenance services. The share of recurring revenue was 49% (51) of total net sales.

Consulting net sales decreased by 7%, which was mainly caused by a significant decline in technical consulting. Net sales from process mining and operational development consulting grew.

As for the Group’s net sales, 68% (65) were derived from Finland, 20% (20) from the rest of Europe (including Russia and Turkey) and 12% (15) from the rest of the world.


October – December 2017

The Group operating profit was EUR 187 thousand (252), representing 7.9% of net sales (10.9). The decline was mainly caused by an increase in expenses as compared to the previous year. Personnel costs and costs related to sales and marketing increased as planned from previous year. A major part of the increased personnel costs was related to an increase in product development resources.

The Group’s fixed costs were EUR 2,188 thousand (1,965) in the reporting period and increased by 11% compared to the equivalent period in the previous year. Personnel costs represented 69% (68) of fixed costs. October – December credit losses and credit loss reservations, included in fixed costs, were higher compared to the equivalent period in the previous year, i.e. EUR 60 thousand (9).

Profit before taxes was EUR 180 thousand (242) and profit for the period was EUR 110 thousand (217). Earnings per share (fully diluted) were EUR 0.009 (0.018).

January – December 2017

The Group operating profit decreased from the previous year and was EUR 432 thousand (761), representing 5.1% of net sales (8.8). Costs grew as planned due to increased investment in product development and marketing resources. Further investments were also made in the Company’s new software products.

The Group’s fixed costs were EUR 7,916 thousand (7,472) in the reporting period and they increased by 6% year-on-year. Personnel costs represented 72% (72) of fixed costs, equaling EUR 5,682 thousand (5,362).

Profit before taxes was EUR 393 thousand (710), and profit for the period was EUR 247 thousand (568). Taxes recorded for the period amount to EUR 146 thousand (142). Taxes increased from previous year as compensation for withholding tax was less than in the previous year. Also, foreign group companies’ tax finalizations from previous years increased taxes. Earnings per share (fully diluted) were EUR 0.021 (0.047).


Cash flow from operating activities in 2017 was EUR 984 thousand (1,419), and in the fourth quarter EUR 239 thousand in the negative (positive 199). A weak fourth quarter cash flow was mainly caused by a change in the invoicing process, whereby a large share of next year’s continuos software rentals were invoiced after the turn of the year. Cash and cash equivalents at the end of the financial year were EUR 318 thousand (565).

Investments in the financial year were EUR 872 thousand (698) and consisted mainly of product development related expenses.

Net financial expenses were EUR 38 thousand (51). Financial items included foreign exchange currency losses (net) of EUR 43 thousand (40). In the period October – December net financial expenses were EUR 7 thousand (10) and included foreign exchange currency losses (net) of EUR 6 thousand (10).

At the end of the financial year, the Company did not have any interest-bearing liabilities. The gearing ratio was -10% (-17). Current liabilities included deferred revenues, which in total amount to EUR 1,198 thousand (852). Annualized return on investment was 14% (25) in the financial year, and 23% (30) in the last quarter October – December.

At the end of the financial year, equity ratio was 56% (46) and the consolidated shareholders’ equity was EUR 3,132 thousand (3,252). Annualized return on equity was 8% (18) for the financial year and 14% (28) in the last quarter October – December.

The Annual General Meeting on March 28, 2017 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, and to decide on acquiring a maximum of 250,000 own shares. The authorizations are in force until the next Annual General Meeting.


QPR develops software and consulting service products to be used by its customers. Software product development costs in the reporting period of January – December were approximately 99% (94) of all product development costs. The Company published new versions of all of its software products in the reporting period. 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 software reseller partners.

In the reporting period, product development expenses were EUR 2,274 thousand (1,818), representing 27% of net sales (21). The increase in product development expenses (+25%) reflect the significant investments made in process mining and analytics software, as well as the development of a new user interface for all our products. Product development expenses do not include amortization of capitalized product development expenses. Product development expenses worth EUR 792 thousand (621) were capitalized. The amortization of capitalized product development expenses during the year was EUR 694 thousand (569).

In the last quarter October – December, product development expenses were EUR 545 thousand (568), representing 23% of net sales (25). Product development expenses do not include amortization of capitalized product development expenses. Product development expenses worth EUR 152 thousand (160) were capitalized. The amortization of capitalized product development expenses in the reporting period was EUR 196 thousand (157).


At the end of the reporting period, the Group employed a total of 76 persons (63). The average number of personnel in 2017 was 76 (71).

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 mainly on net sales development. In 2017, the maximum annual bonus for members of the executive management team, including the CEO, was 30% of the annual base salary. A bonus totaling EUR 19 thousand (10) is paid to the executive management team for 2017. More information on incentive plans can be found in the Annual Report 2016 (


QPR Software innovates, develops and sells software for the international marketplace aimed at analyzing, measuring and modeling operations in organizations. Furthermore, we offer customers a variety of services for operational development planning and execution.

We focus our product development to meet the challenges organizations face, especially in leading and developing their operations in a digitalizing world. Our focus areas for development are process mining and performance measuring. We believe that the relevant market for these focus areas will grow significantly in the future, as companies collect more and more data on transactions and other events from their operations. Our target is to gain a significant share in the rapidly growing process mining and analytics market.

We accelerate product development by increasing our resources in a controlled manner and allocating them especially to process mining and analytics. In software development, special focus is placed on excellent user experience.

In the next few years, QPR seeks to grow, especially its international software sales. To reach this target, the Company will continue to increase its resources and investments in international marketing and sales in 2018. QPR’s reseller channel will continue to play a strategic role in the international sale and distribution of QPR’s modeling and performance management products. QPR’s own international direct sales will focus on the process mining and analytics product.  


Trading of sharesJan-Dec, 2017  Jan-Dec,
                  Change, %
Shares traded, pcs1,552,104901,52672
Volume, EUR2,463,215970,905154
% of shares12.97.5 
Average trading price, EUR1.591.0847
Shares and market capitalizationDec 31, 2017       Dec 31, 2016             Change,% 
Total number of shares, pcs12,444,863                      12,444,863-
Treasury shares, pcs457,009457,009-
Book counter value, EUR0.110.11-
Outstanding shares, pcs11,987,85411,987,854-
Number of shareholders1,2461,1716
Closing price, EUR1.711.2043
Market capitalization, EUR20,499,23014,385,42543
Book counter value of all treasury shares, EUR                           50,27150,271-
Total purchase value of all treasury shares,  EUR 439,307439,307-
Treasury shares, % of all shares3.73.7-

The Annual General Meeting held on March 28, 2017 approved the Board's proposal that a per-share dividend of EUR 0.03 (0.02), a total of EUR 360 thousand (240), be paid for the financial year 2016. The dividend was paid to shareholders entered in the Company's shareholder register, maintained by Euroclear Finland Oy, on the record date of March 30, 2017. The dividend payment date was April 7, 2017.


In the beginning of 2017 the Company´s international channel sales, customer care and marketing were merged with process mining business. Matti Erkheikki was appointed to lead the resulting new Process Mining and Strategy Management business unit.

Tero Aspinen, responsible for Middle East business and offering development in Strategy Management, joined the Executive Management Team as of January 1, 2017.


In January 2018, the Company announced that Saudi Railway Company (SAR), a leading transportation company from Kingdom of Saudi Arabia, had chosen QPR Software (QPR) to automate its strategy and performance management. The solution also includes quality and risk management.

In February 2018, the Company announced that it will deliver process mining software to a global medical device company’s European Business unit.


The Annual General Meeting (AGM) on March 28, 2017 resolved that the Board of Directors consists of five (5) ordinary members.

The AGM re-elected the following members to the Board of Directors: Kirsi Eräkangas, Vesa-Pekka Leskinen and Topi Piela. As new members of the Company´s Board of Directors the Annual General Meeting elected Juha Häkämies and Taina Sipilä.

Juha Häkämies is Vice President, Strategy, and a member of the management team of Gasum. Prior to this, he has worked as Head of M&A and Business Development at Basware and, among other things, in managerial and business development positions at Digia and Sonera. Taina Sipilä is the CEO and Founder of the software company Dear Lucy. She is also a member of the board in the software company Sympa. Prior to this, she worked as the chairman of the board in Sympa and earlier as the CEO.

The term of office of the members of the Board of Directors expires at the end of the next Annual General Meeting. At its organizing meeting, the Board of Directors elected Vesa-Pekka Leskinen as its Chairman. 

The Annual General Meeting re-elected Authorized Public Accountants KPMG Oy Ab as QPR Software’s auditor with Kirsi Jantunen, Authorized Public Accountant, acting as principal auditor. The term of office of the auditor expires at the end of the next Annual General Meeting.

The AGM authorized the Board to decide on an issuing new shares and conveying own shares held by the Company (share issue) either in one or in several occasions. The share issue can be carried out as against payment or without consideration on terms to be determined by the Board.

All authorizations of the Board and other decisions made by the AGM are available on the stock exchange release published by the Company on March 28, 2017 and available on the investors section of the Company's web site, (


Internal control and risk management at 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 three groups of risks related to its operations: risks related to business operations (country, customer, personnel, legal), risks related to information and products (QPR products, IPR, data security) and risks related to financing (foreign currency, short-term cash flow). The Company has an insurance policy for property, operational and liability risks.

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 2017, EUR 58 thousand (57) of credit losses were recorded. The amount of trade receivables over 60 days past due was 8% (12) of total trade receivables at the end of the quarter.

Approximately 80% of Group’s trade receivables were in euro at the end of the year (81). At the end of the year, the Company had not hedged its non-euro trade receivables.

As QPR has reported earlier, it initiated an arbitration process in summer 2016 due to a customer's decision to dissolve a contract, which QPR regarded unjustified. This arbitration process was completed in May 2017. The arbitration court resolved to sentence the defendant to compensate the entire value of the violated contract to QPR. The arbitration court dismissed the customer's counterclaim.

In the beginning of the year 2017, the Company identified an increased credit risk with regards to receivables from one customer. About EUR 100 thousand worth of revenue has been recognized from these receivables. A payment plan has been made together with the customer, and its execution continues to be closely monitored. QPR has included a credit loss reservation reflecting these receivables in its financial statement for 2017. This reservation covers approximately half of the revenue recognized.

Risks and risk management related to the Company’s business are further described in the Annual Report 2016, pages 13-15 (


The distributable funds of the parent company were EUR 1,368 thousand on December 31, 2017. The Board of Directors proposes to the Annual General Meeting on April 12, 2018 that a dividend of EUR 0.03 per share be paid to shareholders for the financial year 2017, totaling EUR 360 thousand. The dividend shall be paid to all shareholders that have been entered into the Company’s shareholder register on the record date of the dividend payment on April 16, 2018. The Board of Directors proposes to the AGM that the dividend be paid on April 23, 2018.

No material changes have taken place in the Company’s financial position after the end of the financial year.


In 2018, QPR Software Plc will publish its financial information in Finnish and English as follows:

Annual Report 2017: Tuesday, March 6, 2018
Interim Report Jan – Mar, 2018: Thursday, April 26, 2018
Half-year Financial Report Jan – Jun, 2018: Thursday, August 2, 2018
Interim Report Jan – Sep, 2018: Thursday, October 25, 2018

The Annual General Meeting will be held on Thursday, April 12, 2018.


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

NASDAQ OMX Helsinki Ltd
Main Media

EUR in thousands,
unless otherwise indicated
Oct-Dec, 2017Oct-Dec, 2016   Change, %Jan-Dec, 2017Jan-Dec, 2016          Change,
Net sales2,3812,31538,4848,634-2
Other operating income5- 1818-2
Materials and services1198-89154419-63
Employee benefit expenses1,5061,337135,6825,3626
Other operating expenses43240181,3201,2436
Depreciation and amortization250227109138665
Operating profit187252-26432761-43
Financial income and expenses-7-10-28-38-51-24
Profit before tax180242-26393710-45
Income taxes-70-25175-146-1422
Profit for the period110217-49247568-56
Earnings per share, EUR
(basic and diluted)
Consolidated statement of
comprehensive income:
 Profit for the period110217-49247568-56
Other items in comprehensive
income that may be reclassified subsequently to profit or loss:
 Exchange differences on
 translating foreign operations
Total comprehensive income113206-45240577-58

EUR in thousandsDec 31,
Dec 31,
Non-current assets:   
 Intangible assets       1,952             1,9550
 Tangible assets153193-20
 Other non-current assets12727    365
Total non-current assets2,7452,6872
Current assets:   
 Trade and other receivables3,7444,619-19
 Cash and cash equivalents318565-44
Total current assets4,0615,184    -22
Total assets6,8077,871-14
Equity and liabilities   
 Share capital1,3591,359-
 Other funds2121-
 Treasury shares-439-439-
 Translation differences-240-2333
 Invested non-restricted equity fund55-
 Retained earnings2,4262,538-4
Equity attributable to shareholders of the parent company       3,1323,252-4
Current liabilities:   
 Advances received1,19885241
 Accrued expenses and prepaid income1,8573,033-39
 Trade and other payables620735-16
Total current liabilities3,6754,619-20
Total liabilities3,6754,619-20
Total equity and liabilities6,8077,871-14

EUR in thousands  Oct-Dec, 2017   Oct-Dec, 2016 Change, %            Jan-Dec,
   Jan-Dec, 2016 Change, %
Cash flow from operating activities:      
 Profit for the period110217-49247568-56
 Adjustments to the profit329272211,0911,0702
 Working capital changes-682-283141-199-11081
 Interest and other financial
 expenses paid
 Interest and other financial
 income received
 Income taxes paid10-1 -128-6692
Net cash from operating activities-239199-2209841,419-31
Cash flow from investing activities:      
 Purchases of tangible and
 intangible assets
Net cash used in investing activities-162-202-20-872-69825
Cash flow from financing activities:      
 Repayments of short term
-- --500 
 Dividends paid-- -360-24050
Net cash used in financing activities-- -360-740-51
Net change in cash and cash
-401-3 -247-19 
Cash and cash equivalents at the beginning of the period71956727565585-3
Effects of exchange rate changes
on cash and cash equivalents
-11 0-1 
Cash and cash equivalents at the
end of the period

EUR in thousandsShare capitalOther fundsTranslation differencesTreasury shares    Invested
non-restricted equity fund
Retained earnings              Total
Equity Jan 1, 20161,35921-242-43952,2102,914
Dividends paid     -240-240
Comprehensive  income  9  568577
Equity Dec 31, 20161,35921-233-43952,5383,252
Dividends paid     -360-360
Comprehensive income  -7  247240
Equity Dec 31, 20171,35921-240-43952,4263,132



This report complies with requirements of IAS 34 ”Interim Financial Reporting”. Starting from the beginning of 2017, the Group has applied certain new or revised IFRS standards and IFRIC interpretations as described in the Consolidated Financial Statements 2016. 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 2016 financial statements.

The Group has made assessments of the essential concepts and impacts of IFRS 15, effective of January 1, 2018. In IFRS 15 a five-step model is applied to determine when to recognize revenue, and at what amount. Revenue is recognized when (or as) a company transfers control of goods or services to a customer either over time or at a point in time. The standard introduces also extensive new disclosure requirements. The essential concepts are revenue recognition and principal versus agent considerations. The revenue streams include software licenses, software maintenance services, software rentals and consulting.

  • The principal versus agent consideration has the most significant impact on net sales, and mainly on licenses and maintenance services. In accordance with the standards applied during the year 2017 the Group has applied the agent principle and recognized revenue from the sales to the resellers. In accordance with IFRS 15 QPR acts as a principal and records revenue from the sales of the resellers, which increases the Group net sales revenue and resales commission cost with the same amount. The standard change is estimated to increase 2017 net sales and agent commission by approximately one million euros.  The change lowers relative profitability, but does not affect absolute profitability.
  • In accordance with the standards applied during the year 2017 all the recurring revenue from long-term software rental agreements has been recognized over time. In accordance with IFRS 15 these are not recognized as rental revenue, but as license, maintenance and SaaS-services. License part of the revenue is recognized at a point in time, in the beginning of the invoicing period. Maintenance part and SaaS-services in totality, including license and maintenance, are recognized over time, evenly during the invoicing period. License revenue recognition change will lead to an earlier recognition of revenue, transferring net sales and profit of about 0.3 million euros to the first quarter of the year from the other quarters of the year 2017. Maintenance services part revenue recognition remains practically the same as currently.
  • Standard change will impact grouping of revenue streams, so that new product groups are software licenses, renewable licenses, SaaS-services, software maintenance and consulting. Recurring revenue includes renewable licenses, SaaS-services and software maintenance.

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. 

EUR in thousandsJan-Dec, 2017Jan-Dec, 2016
Increase in intangible assets:  
 Acquisition cost Jan 18,5217,862
Increase in tangible assets:  
 Acquisition cost Jan 11,7461,707
EUR in thousandsJan-Dec, 2017Jan-Dec, 2016
Interest-bearing liabilities Jan 1-500
Proceeds from short term borrowings--
Interest-bearing liabilities Dec 31--

EUR in thousandsDec 31, 2017Dec 31, 2016    Change, %
Business mortgages (held by the Company)1,3881,3900
Minimum lease payments based on lease agreements:   
 Maturing in less than one year278289-4
 Maturing in 1-5 years88345-75
Total pledges and commitments1,7542,024-13

EUR in thousands   Q4 2017   Q3 2017   Q2 2017   Q1 2017   Q4 2016   Q3 2016
Net sales2,3811,7332,0622,3072,3152,104
Other operating income5670--
Materials and services11957769868
Employee benefit expenses1,5061,3041,4731,3991,3371,108
Other operating expenses432226311351401321
Depreciation and amortization250235223206227222
Operating profit187-364276252385
Financial income and expenses-7-7-14-11-10-11
Profit before tax180-43-9265242374
Income taxes-70927-112-25-93
Profit for the period110-3418153217281

EUR in thousands, unless otherwise indicatedJan-Dec or
  Dec 31, 2017
Jan-Dec or
  Dec 31, 2016
Net sales8,4848,634
Net sales growth, %-1.7-8.5
 % of net sales15.918.9
Operating profit432761
 % of net sales5.18.8
Profit before tax393710
 % of net sales4.68.2
Profit for the period247568
 % of net sales2.96.6
Return on equity (per annum), %7.718.4
Return on investment (per annum), %13.824.6
Cash and cash equivalents318565
Net borrowings-318-565
Gearing, %-10.1-17.4
Equity ratio, %55.846.3
Total balance sheet6,8077,871
Investments in non-current assets872698
 % of net sales10.38.1
Product development expenses2,2741,818
 % of net sales26.821.1
Average number of personnel7671
Personnel at the beginning of period6383
Personnel at the end of period7663
Earnings per share, EUR0.0210.047
Equity per share, EUR0.2520.261