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ComTel SpA — Interim / Quarterly Report 2014
Oct 21, 2014
9984_rns_2014-10-21_1ee7f3dd-7920-4efd-a283-fcbb7a078b20.html
Interim / Quarterly Report
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INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY-30 SEPTEMBER 2014
INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY-30 SEPTEMBER 2014
Comptel Corporation Stock exchange release 21 October 2014 at 8.00 am
INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY-30 SEPTEMBER 2014
Overall revenue growth of 8.7% compared to previous year Q3 and profitability
improved significantly.
Key figures for the third quarter:
-- Net sales EUR 20.3 million (Q3 2013: 18.7), change 8.7%
-- Operating result EUR 2.2 million (1.3), 11.0% of net sales and 74.8% growth
to previous year quarter 3.
-- Earnings per share EUR 0.00 (0.01)
-- Order backlog EUR 45.0 million (35.5), change 26.9%
Key figures for January-September:
-- Net sales EUR 58.9 million (Q1-Q3, 2013: 60.5), change -2.6%
-- Operating result EUR 4.4 million (3.6), 7.4% of net sales
-- Earnings per share EUR 0.01 (-0.00)
Comptel's operating result for 2014 is expected to be EUR 5-10 million. The
2014 revenue is expected to remain at the 2013 level while the new solutions
are expected to grow from Q2 onwards.
Juhani Hintikka, President and CEO:
”We had a strong quarter both in terms of quarterly growth in net sales
compared to last year, as well as in terms of profitability.
In the third quarter Project and license revenue grew 20% compared to last
year's third quarter. Growth came both through winning new customers as well as
new projects. Both our new and current business areas grew in the third quarter
compared to last year.
We signed a strategic partnership agreement with Hitachi who will be reselling
our Policy Control solution. This will enable us to enter the Japanese market.
During the third quarter we secured 6 significant orders, valued over EUR
500,000. Our backlog strengthened significantly overall. Comptel has won this
year 6 new customers compared to 4 overall last year.”
Business Review for the third Quarter and January-September 2014
In the third quarter, Comptel's net sales increased by 8.7 per cent from the
previous year and were EUR 20.3 million (18.7). The increase was due to
improved project & license sales. In January-September, net sales decreased by
2.6 per cent from the previous year and were EUR 58.9 million (60.5).
In the third quarter, the operating result was EUR 2.2 million (1.3), which
corresponds to 11.0 per cent of net sales (6.8). The operating result
improvement was mainly due to increase in net sales.
The operating result for January-September was EUR 4.4 million (3.6), which
correspond to 7.4 per cent of net sales (6.0).
In the third quarter the net of financial income/expense were - 0.6 million
(+0.05). This was due strengthening of USD during the quarter. In January -
September the net financial income/expense were -1.2 (1.1).
In January-September, profit before taxes was EUR 3.2 million (2.5) and net
profit was EUR 1.2 million (0.3). Earnings per share for the period under
review were EUR 0.01 (-0.00).
Tax expense for January-September was EUR 2.0 million (2.2), including EUR 1.2
million of withholding taxes.
The Group's order backlog increased from the previous year and was EUR 45.0
million (35.5) at the end of the period.
Business areas
Net sales, 7-9 2014 7-9 Change % 1-9 2014 1-9 2013 Change 1-12
EUR million 2013 % 2013
Europe 8.1 7.6 6.0 23.5 25.2 -6.7 33.1
Asia Pacific 6.8 4.7 45.5 19.0 16.0 19.2 20.9
Middle East and 3.5 3.5 -1.1 10.4 10.7 -3.1 16.3
Africa
Americas 2.0 2.9 -31.9 6.0 8.6 -30.3 12.3
Total 20.3 18.7 8.7 58.9 60.5 -2.6 82.7
Operating result,
EUR million
Europe 4.5 3.6 24.7 11.9 11.9 -0.6 15.6
Asia Pacific 4.5 2.3 94.2 12.1 7.6 59.9 10.1
Middle East and 1.0 1.6 -36.5 3.9 3.7 7.7 6.7
Africa
Americas 0.8 1.7 -52.4 2.6 4.6 -43.6 7.0
Unallocated costs -8.6 -8.0 -8.0 -26.1 -24.1 -8.2 -32.1
Total 2.2 1.3 74.8 4.4 3.6 21.2 7.3
Operating result,
% of net sales
Europe 56.2 47.7 - 50.4 47.3 - 47.3
Asia Pacific 66.0 49.4 - 63.5 47.3 - 48.0
Middle East and 29.9 46.6 - 38.0 34.2 - 40.8
Africa
Americas 41.1 58.8 - 43.3 53.5 - 56.9
Total 11.0 6.8 - 7.4 6.0 - 8.8
In the third quarter, net sales grew in Asia Pacific and Europe. In
January-September, net sales increased in Asia Pacific. The proportional
profitability improved in Asia-Pacific and Middle East and Africa while
Americas is below last year.
In January-September, Comptel received 15 significant orders (Q1-Q3 2013: 15):
7 Comptel Control & Charge,3 Comptel Provisioning and Activation,3 Comptel
Fulfillment and 2 Comptel Managed Services orders. As significant orders
Comptel reports sold projects and licenses with a value of EUR 500,000 at the
minimum.
Net sales breakdown, 7-9 7-9 Change % 1-9 1-9 Change 1-12
EUR million 2014 2013 2014 2013 % 2013
Project & License business 11.9 9.9 20.4 33.3 33.8 -1.4 47.1
Recurring business 8.4 8.8 -4.4 25.6 26.7 -4.1 35.6
Total 20.3 18.7 8.7 58.9 60.5 -2.6 82.7
Project & License business sales increased significantly during Q3 compared to
the previous year. The January-September project business sales is still
slightly under last year due to slow start in the first quarter of the year
2014.
Net sales 7-9 2014 7-9 2013 Change 1-9 1-9 Change % 1-12 2013
breakdown, % 2014 2013
EUR million
New business 5.1 5.0 2.8 13.9 15.0 -7.4 19.2
Current business 15.2 13.7 10.9 45.0 45.5 -1.0 63.5
Total 20.3 18.7 8.7 58.9 60.5 -2.6 82.7
In the third quarter the current business grew significantly compared to the
previous year. In January-September both sales categories are lower compared to
the previous year due to a low Q1 sales level.
Financial Position
EUR million 30 Sep 31 Dec Change 30 Sep Change
2014 2013 % 2013 %
Statement of financial position 62.0 67.9 -8.7 63.4 -2.2
total
Liquid assets 5.7 6.5 -12.6 6.5 -11.4
Trade receivables, gross 22.8 23.7 -3.8 22.4 2.1
Bad debt provision -0.8 -1.0 -22.9 -0.8 1.0
Trade receivables, net 22.0 22.7 -2.9 21.6 2.2
Accrued income 10.3 9.4 9.2 10.0 2.9
Deferred income related to partial 2.6 1.9 36.6 1.9 39.4
debiting
Interest-bearing debt 5.6 8.8 -36.7 11.9 -53.3
Equity ratio, per cent 59.0 50.5 16.7 49.3 19.6
The statement of financial position total was EUR 62.0 million. Operating cash
flow was EUR 3.2 million (2.4) in the third quarter and EUR 6.5 million
(3.7) during January-September.
The trade receivables were EUR 22.0 million (21.6) at the end of the period.
The accrued income was EUR 10.3 million (10.0). The deferred income related to
partial debiting was EUR 2.6 million (1.9).
Comptel has a 17 million credit facility arrangement, of which 5 million is in
use. Out of the term loan facility there is 4 million in use and there is one
million loan in use out of total 13 million revolving credit facility at the
quarter end. The credit facility arrangement is valid until January 2016.
The equity ratio was 59.0 per cent (49.3) and the gearing ratio was -0.6 per
cent (20.1). The improved equity and gearing ratio during January-September is
due to strengthening net cash flow.
Research and Development (R&D)
EUR million 7-9 7-9 Change 1-9 1-9 Change 1-12
2014 2013 % 2014 2013 % 2013
Direct R&D expenditure 3.9 4.3 -8.4 11.7 12.9 -9.8 17.8
Capitalisation of R&D -1.2 -1.2 -2.9 -3.4 -4.0 -16.6 -5.5
expenditure according to IAS 38
R&D depreciation and 1.0 1.1 -12.0 3.7 3.0 23.8 4.2
impairment charges
R&D expenditure, net 3.7 4.2 -10.9 12.0 11.9 1.0 16.5
Direct R&D expenditure and 19.4 23.1 - 19.8 21.4 - 21.5
investments, % of net sales
In January-September direct R&D expenditure represented 19.8 per cent (21.4) of
net sales.
Comptel's R&D expenditure was mainly targeted at the service fulfillment
automation of telecom operators and to the management and real-time analysis of
rapidly increasing data traffic. Comptel seeks global market leadership in
these areas where key business challenges of operators and service providers
will be solved. In addition, the company is developing an integrated software
platform which will enable a cost-efficient and solution-based R&D.
In 2014, the company focuses on developing its offering within the Comptel
Fulfillment, Comptel Policy & Charging Control and advanced analytics product
areas. Five major software releases were launched in these respective product
areas during January-September.
Investments
EUR million 7-9 7-9 Change 1-9 1-9 Change 1-12 2013
2014 2013 % 2014 2013 %
Gross investments in 0.1 0.1 -9.3 0.4 0.5 -20.9 0.6
property, plant and
equipment and intangible
assets
The investments comprised of devices, software and furnishings. The investments
were funded through liquid assets and cash flow from operations.
Personnel 30 Sep 30 Sep Change 31 Dec
2014 2013 % 2013
Number of employees at the end of 653 683 -4.4 690
period
1-9 1-9 Change 1-12
2014 2013 % 2013
Average number of personnel during the period 666 683 -2.5 684
The number of employees decreased slightly during third quarter. In
July-September, personnel expenses were 48.2 per cent of net sales (49.2). In
January-September, the personnel expenses were 48.5 per cent of net sales
(50.6).
At the end of the period, 29.7 per cent (30.2) of the personnel were located in
Finland, 28.6 per cent (27.4) in Malaysia, 11.5 per cent (11.0) in Bulgaria,
7.2 per cent (4.8) in India, 3.1 per cent (6.3) in the United Arab Emirates,
2.8 per cent (2.8) in Norway, 2.1 per cent (6.3) in the United Kingdom, 15.0
per cent (11.2) in other countries where Comptel operates.
Comptel share
Closing share price of the period was EUR 0.64 (0.53). Comptel's market value
at the end of the period was EUR 68.2 million (56.7).
Comptel share 7-9 2014 7-9 2013 Change 1-9 2014 1-9 2013 Change 1-12
% % 2013
Shares traded, 3.7 4.4 -16.3 20.6 12.1 70.0 18.4
million
Shares traded, EUR 2.3 2.2 5.1 11.5 5.5 111.0 8.7
million
Highest price, EUR 0.67 0.55 21.8 0.70 0.55 27.3 0.59
Lowest price, EUR 0.60 0.45 33.3 0.48 0.38 26.3 0.38
Of Comptel's outstanding shares, 3.4 per cent (7.5) were nominee registered or
held by foreign shareholders at the end of the period.
During the period, Comptel Corporation allotted gratuitously 121,480 shares to
the members of the Board of Directors as part of their annual compensation and
75,000 shares to the President and CEO of the company according to the terms
and conditions of the 2011 share-based incentive plan.
The company held 193 412 of its own shares at the end of the period, which is
0.18 per cent of the total number of its shares. The total counter-book value
of the shares held by the company was EUR 3 868.
2 140 000 share options were distributed during the review period based on
Stock Option Incentive Plan 2014.
Corporate Governance
The Annual General Meeting of Comptel Corporation was held on 12 of March 2014.
The resolutions of the Annual General Meeting as well as the minutes of the
Annual General Meeting can be found at company's web page www.comptel.com. A
separate stock exchange release about the resolutions of the Annual General
Meeting including authorisations given to the Board of Directors was issued on
12 of March 2014.
The AGM authorised the Board of Directors to decide on share issues amounting
to a maximum of 21,400,000 new shares and/or special rights entitling to shares
and on repurchase or conveying of the company's own shares up to a maximum
number of 10,700,000 shares. The authorisations are valid until 30 of June
2015. However, the authorisation to implement the company's share-based
incentive programs is valid until five years from the AGM resolution.
Stock Option Incentive Plan 2014
Based on authorisation given to the Board of Directors by the Annual General
Meeting held on 20 of March 2013, the Board of Directors resolved 5 of February
2014 on a new stock option incentive plan. A maximum total of 4,200,000 options
will be granted and they entitle their holders to subscribe to a maximum of
4,200,000 new or existing Company's own share. The new incentive plan is to
replace the existing incentive plan from the year 2012.
Of the stock options, 2,200,000 are to be marked with the symbol 2014A,
1,000,000 are to be marked with the symbol 2014B and 1,000,000 are to be marked
with the symbol 2014C. The share subscription price stock option 2014A is EUR
0.54 per share, which corresponds to the trade volume weighted average
quotation of the share on the NASDAQ OMX Helsinki Ltd during 15 of February -
15 of March 2014.The subscription price for options 2014B and 2014C is defined
as the weighted average trade price of the Company's stock in NASDAQ OMX
Helsinki as follows: for the options 2014B between 15 of February - 15 of
March 2015 and for the options 2014C 15 of February - 15 of March 2016.
The subscription periods for the shares are as follows: for options 2014A 1 of
February 2016 - 31 of January 2018; for options 2014B 1 of February 2017 - 31
of January, 2019 and for options 2014C 1 of February 2018 - 31 of January 2020.
Pursuant to the stock option subscriptions, the number of shares can increase
by a maximum of 4,200,000 new shares.
Full information on the stock option incentive plan can be found at company's
web page www.comptel.com. A separate stock exchange release about the stock
option plan has been issued on 5 of February 2014.
Events after the Reporting Period
There were no significant events after the reporting period.
Near-term Risks and Uncertainties
Comptel develops dynamic end-to-end solutions for leading operators globally in
the telecom field. This requires Comptel to understand correctly the trends
taking place in its business environment and the needs of its customers and
resellers by each region. Failure to identify market conditions, address
customers' needs and develop its products in a timely way may significantly
undermine the growth of Comptel's business and its profitability.
Characteristics of Comptel's field of industry are significant quarterly
variations of net sales and profit, which are related to customers' purchasing
behaviour and the timing of major single deals.
Comptel's business consists of deliveries of large productised IT system and
the value of a single project may be several million euros. Therefore, the
credit risk associated with a single project or an individual customer may be
significant. Furthermore, some of Comptel's customers operate in countries
where the political or financial climate can be unstable which in part may
increase credit risk.
Comptel operates globally so it is exposed to risks arising from different
currency positions. Exchange rate changes between the Euro, which is the
company's reporting currency, and the US Dollar, UK Pound Sterling and
Malaysian Ringgit affect the company's net sales, expenses and net profit.
The application process to prevent Comptel's double taxation is still pending
with the Ministry of Finance in Finland. However, the process between the
states is very slow and the timing of a change is hard to forecast. The
interpretation of tax treaties may result in different views between the
countries in question. This could mean that the double taxation will prevail.
Comptel has also applications for return of withholding taxes in other
countries but they are subject to local legal processes, which take time to get
completed.
The risks and uncertainties of Comptel are described more in detail in the
company's financial statements and the Board of Directors' report for 2013.
Outlook
Comptel's operating result for 2014 is expected to be EUR 5-10 million. The
2014 revenue is expected to remain at the 2013 level while the new solutions
are expected to grow from Q2 onwards.
Characteristically a significant part of Comptel's operating profit and net
sales is generated in the second half of the year.
TABLE PART
The interim financial statements have been prepared in accordance with IAS 34,
Interim Financial Reporting, as adopted by the EU. The accounting policies and
methods of computation adopted in the financial statements are consistent with
those of the annual financial statements for the year ended 2013.
All figures in the financial report have been rounded and consequently the sum
of the individual figures can deviate from the sum figure. The interim report
is unaudited.
Consolidated Statement of Comprehensive 1 Jan - 1 Jan - 1 Jul - 1 Jul -
Income (EUR 1,000) 30 Sep 30 Sep 30 Sep 30 Sep
2014 2013 2014 2013
Net sales 58,922 60,496 20,327 18,693
Other operating income 281 8 -25 5
Materials and services -2,855 -2,830 -756 -704
Employee benefits -28,605 -30,589 -9,807 -9,191
Depreciation, amortisation and -4,762 -4,212 -1,600 -1,497
impairment charges
Other operating expenses -18,611 -19,268 -5,903 -6,026
-54,833 -56,898 -18,066 -17,418
--------------------------------------------------------------------------------
Operating profit/loss 4,370 3,606 2,236 1,279
Financial income 879 210 336 11
Financial expenses -2,034 -1,343 -892 41
Profit/loss before income taxes 3,216 2,473 1,679 1,331
Income taxes -2,005 -2,179 -1,286 -600
Profit/loss for the period 1,211 294 394 731
Other comprehensive income:
Other comprehensive income to be
reclassified to profit or loss in
subsequent periods
Translation differences 674 -476 361 -157
Cash flow hedges - - - -
Income tax relating to components of - - - -
other comprehensive income
Total other comprehensive income 674 -476 361 -157
Total comprehensive income for the 1,885 -181 755 574
period
Profit/loss attributable to:
Equity holders of the parent company 1,211 294 394 731
Total comprehensive income attributable
to:
Equity holders of the parent company 1,885 -181 755 574
Shareholders of the parent company:
Earnings per share, EUR 0.01 0.00 0.00 0.01
Earnings per share, diluted, EUR 0.01 0.00 0.00 0.01
Consolidated Statement of Financial Position (EUR 30 Sep 2014 31 Dec 2013
1,000)
Assets
Non-current assets
Goodwill 2,646 2,646
Other intangible assets 13,374 14,174
Tangible assets 1,477 1,629
Investments in associates 661 661
Available-for-sale financial assets 87 87
Deferred tax assets 4,587 4,358
Other non-current receivables 537 500
23,371 24,055
--------------------------------------------------------------------------------
Current assets
Trade and other current receivables 32,955 37,346
Cash and cash equivalents 5,720 6,542
38,676 43,889
--------------------------------------------------------------------------------
Total assets 62,046 67,944
Equity and liabilities
Equity attributable to equity holders of the parent
company
Share capital 2,141 2,141
Fund of invested non-restricted equity 401 401
Translation differences -545 -1,219
Retained earnings 27,564 27,600
Total equity 29,562 28,924
Non-current liabilities
Deferred tax liabilities 2,588 2,983
Non-current financial liabilities 2,262 3,483
-------------------------------------------------------------------------------- 4,849 6,466
Current liabilities
Provisions 1,693 1,939
Current financial liabilities 3,290 5,287
Trade and other current liabilities 22,653 25,329
27,636 32,554
--------------------------------------------------------------------------------
Total liabilities 32,485 39,020
Total equity and liabilities 62,046 67,944
Consolidated Statement of Cash Flows 1 Jan - 30 1 Jan - 30
(EUR 1,000) Sep 2014 Sep 2013
Cash flows from operating activities
Profit/loss for the period 1,211 294
Adjustments:
Non-cash transactions or items that are not part of 4,641 5,370
cash flows from operating activities
Interest and other financial expenses 1,081 344
Interest income -18 -12
Income taxes 1,769 2,179
Change in working capital:
Change in trade and other current receivables 3,375 8,190
Change in trade and other current liabilities -2,975 -8,743
Change in provisions 59 -724
Interest and other financial expenses paid -194 -239
Interest received 12 7
Income taxes paid and tax returns received -2,399 -2,940
Net cash from operating activities 6,561 3,726
Cash flows from investing activities
Proceeds from sale of business operations 200 -
Investments in tangible assets -379 -413
Investments in intangible assets - -66
Investments in development projects -3,371 -4,042
Proceeds from sale of tangible assets 34 -
Change in other non-current receivables -8 -21
Net cash used in investing activities -3,553 -4,541
Cash flows from financing activities
Dividends paid -1,073 -
Acquisition of Corporation's own shares -146 -88
Proceeds from borrowings - 14,015
Repayment of borrowings -3,012 -11,043
Lease payments -163 -87
Change in other non-current liabilities -68 -
Net cash used in financing activities -4,463 2,797
Net change in cash and cash equivalents -1,454 1,986
Cash and cash equivalents at the beginning of the 6,542 4,817
period
Cash and cash equivalents at the end of the period 5,720 6,459
Change -822 1,642
Effects of changes in foreign exchange rates 632 -340
Consolidated Statement of Changes in Equity
- Equity attributable to equity holders of the parent company
- EUR 1,000 Share Other Translation Retained Total
capital reserves differences earnings
Equity at 2,141 243 -636 25,207 26,956
31 Dec 2012
Acquisition of -88 -88
Corporation's own
shares
Transfer of treasury 66 66
shares
Share-based 199 199
compensation
Other changes 4 4
Total comprehensive -476 294 -181
income for the period
Equity at 2,141 243 -1,112 25,684 26,957
30 Sep 2013
Consolidated Statement of Changes in Equity
- Equity attributable to equity holders of the parent company
- EUR 1,000 Share Other Translation Retained Total
capital reserves differences earnings
Equity at 2,141 401 -1,219 27,600 28,924
31 Dec 2013
Dividends -1,073 -1,073
Acquisition of -146 -146
Corporate's own shares
Share-based 198 198
compensation
Prior year correction* -210 -210
Other changes -14 -14
Total comprehensive 674 1,211 1,885
income for the period
Equity at 2,141 401 -545 27,566 29,562
30 Sep 2014
*Difference in prior year receivables was corrected directly to Retained
Earnings during the reporting period
Notes
- Application of new or amended standards and interpretations
Comptel has adopted the new or amended standards and interpretations, effective
for the financial years beginning on or after 1 January 2014. However, those
have not had an impact on the consolidated financial statements.
- Segment information
Net sales by segment
EUR 1,000 1 Jan - 1 Jan - 1 Jul - 1 Jul -
30 Sep 2014 30 Sep 2013 30 Sep 2014 30 Sep 2013
Europe 23,511 25,205 8,053 7,595
Asia-Pacific 19,039 15,976 6,843 4,702
Middle East and Africa 10,367 10,698 3,454 3,491
Americas 6,004 8,617 1,978 2,905
Group total 58,922 60,496 20,327 18,693
Operating profit/loss by segment
EUR 1,000 1 Jan - 1 Jan - 1 Jul - 1 Jul -
30 Sep 30 Sep 30 Sep 30 Sep
2014 2013 2014 2013
Europe 11,851 11,917 4,523 3,626
Asia-Pacific 12,095 7,563 4,514 2,325
Middle East and Africa 3,939 3,658 1,034 1,628
Americas 2,601 4,613 812 1,707
Group unallocated expenses -26,116 -24,146 -8,647 -8,006
Group operating profit/loss 4,370 3,606 2,236 1,279
total
Financial income and expenses -1,155 -1,133 -556 52
Group profit/loss before income 3,216 2,473 1,680 1,331
taxes
- Income tax
Income tax expense according to the statement of comprehensive income for this
year was EUR 2,005 thousand (EUR 2,179 thousand in 2013).
In 2006, the Board of Adjustment of the Tax Office for Major Corporations
refused to accept the crediting of taxes withheld at source in taxation of 2004
and 2005.
The application process to prevent Comptel's double taxation is still pending
with the Ministry of Finance in Finland. However, the process between the
states is very slow and the timing of a change is hard to forecast. The
interpretation of tax treaties may result in different views between the
countries in question. This could mean that the double taxation will prevail.
According to the Board of Adjustment's decision currently in force, Comptel
Corporation has expensed taxes withheld at source amounting to EUR 1,207
thousand in January-September (EUR 915 thousand).
- Tangible assets
EUR 1,000 1 Jan - 30 Sep 2014 1 Jan - 30 Sep 2013
Additions 379 1,091
Disposals -17 -128
- Related party transactions
The Comptel Group have a related party relationship with its associate, the
Board of Directors, the Executive Board and also with people and companies
under Comptel management's influence.
Transactions which have been entered into with related parties are as follows:
EUR 1,000 1 Jan - 30 Sep 2014 1 Jan - 30 Sep 2013
Associate
Other operating income - 4
Interest income 6 6
EUR 1,000 30 Sep 2014 31 Dec 2013
Associate
Non-current receivables 111 106
Trade receivables - -
Remuneration to key management
Key management personnel compensation includes the employee benefits of the
members of the Board of Directors and the Executive Board.
EUR 1,000 1 Jan - 30 Sep 1 Jan - 30 Sep
2014 2013
Salaries and other short-term employee 1,336 1,065
benefits
Share-based payments 429 236
Total 1,765 1,301
Guarantees and other commitments
EUR 1,000 30 Sep 2014 31 Dec 2013
Guarantees 30 44
- Commitments
Minimum lease payments on non-cancellable office facilities and other operating
leases are payable as follows:
EUR 1,000 30 Sep 2014 31 Dec 2013
Less than one year 2,745 2,312
Between one and five years 3,240 4,596
Total 5,984 6,908
The group had no material capital commitments for the purchase of tangible
assets at 30 September 2014 and 30 September 2013.
- Contingent liabilities
EUR 1,000 30 Sep 2014 31 Dec 2013
Bank guarantees 2,260 1,674
Corporate mortgages 200 200
EUR 1,000 30 Sep 2014 31 Dec 2013
Contingent liabilities on behalf of others
Guarantees 56 72
- Key figures
Financial summary 1 Jan-30 1 1
Sep Jan-30Se Jan-31De
2014 p c
2013 2013
Net sales, EUR 1,000 58,922 60,496 82,668
Net sales, change % -2.6 -0.1 0.3
Operating profit/loss, EUR 1,000 4,370 3,606 7,308
Operating profit/loss, change % 21.2 123.6 154.1
Operating profit/loss, as % of net sales 7.4 6.0 8.8
Profit/loss before taxes, EUR 1,000 3,216 2,473 5,554
Profit/loss before taxes, as % of net sales 5.5 4.1 6.7
Return on equity, % - - 9.3
Return on investment, % - - 16.1
Equity ratio, % 59.0 49.3 50.5
Gross investments in tangible and intangible 379 479 551
assets, EUR 1,0001)
Gross investments in tangible and intangible 0.6 0.8 0.7
assets, as % of net sales
Capitalisations according to IAS 38 to intangible 3,371 4,042 5,510
assets, EUR 1,000
Research and development expenditure, EUR 1,000 11,652 12,925 17,790
Research and development expenditure, 19.8 21.4 21.5
as % of net sales
Order backlog, EUR 1,000 45,019 35,489 40,756
Average number of employees during the period 666 683 684
Interest-bearing net liabilities, EUR 1,000 -169 5,432 2,228
Gearing ratio, % -0.6 20.1 7.7
1) The figure does not include investments in development projects.
Per share data 1 Jan - 1 Jan - 1 Jan -
30 Sep 2014 30 Sep 2013 31 Dec 2013
Earnings per share (EPS), EUR 0.01 0.00 0.02
EPS diluted, EUR 0.01 0.00 0.02
Equity per share, EUR 0.28 0.25 0.27
Dividend per share, EUR - - 0.01
Dividend per earnings, % - - 41.2
Effective dividend yield, % - - 2.1
P/E ratio - - 19.8
Adjusted number of shares at the end of 107,421,270 107,054,810 107,421,270
the period
of which the number of treasury shares 193,412 161,219 161,219
Outstanding shares 107,227,858 106,893,591 107,260,051
Adjusted average number of shares during 107,421,270 106,893,591 106,863,518
the period
Average number of shares, dilution 108,597,357 106,893,591 106,893,591
included
9. Definition of key figures
Operating margin % = Operating profit/loss x100
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Net sales
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Profit margin (before income taxes) = Profit/loss before taxes x100
%
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Net sales
------------------------------------ -----
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Return on equity % (ROE) = Profit/loss x100
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------------------------------------
Total equity (average during year)
------------------------------------ -----
------------------------------------ -----
Return on investment % (ROI) = Profit/loss before taxes + x100
financial expenses
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------------------------------------
Total equity + interest bearing
liabilities (average during the
year)
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------------------------------------ -----
Equity ratio % = Total equity x100
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------------------------------------
Statement of financial position
total - advances received
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Gross investments in tangible and = Gross investments in tangible and x100
intangible assets, as % of net intangible assets
sales
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------------------------------------
Net sales
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Research and development = Research and development x100
expenditure, as % of net sales expenditure
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------------------------------------
Net sales
------------------------------------ -----
------------------------------------ -----
Gearing ratio % = Interest-bearing liabilities - x100
cash and cash equivalents
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------------------------------------
Total equity
------------------------------------ -----
------------------------------------ -----
Earnings per share (EPS) = Profit/loss for the financial year
attributable to equity
shareholders
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------------------------------------
Average number of outstanding shares for the financial year
------------------------------------ -----
------------------------------------ -----
Equity per share = Equity attributable to the equity
holders of the parent company
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------------------------------------
Adjusted number of shares at the
end of period
------------------------------------ -----
------------------------------------ -----
Dividend per share = Dividend
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------------------------------------
Adjusted number of shares at the
end of period
------------------------------------ -----
------------------------------------ -----
Dividend per earnings % = Dividend per share x100
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Earnings per share (EPS)
------------------------------------ -----
------------------------------------ -----
Effective dividend yield % = Dividend per share x100
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------------------------------------
Share closing price at end of
period
------------------------------------ -----
------------------------------------ -----
P/E ratio = Share closing price at end of
period
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Earnings per share (EPS)
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COMPTEL CORPORATION
Board of Directors
Additional information:
Mr Juhani Hintikka, President and CEO, tel. +358 9 700 1131
Mr Tom Jansson, CFO, tel. +358 40 700 1849
Distribution:
NASDAQ OMX Helsinki
Major media
www.comptel.com