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ComTel SpA Interim / Quarterly Report 2015

Apr 24, 2015

9984_rns_2015-04-24_45a0b9d2-681c-4170-bbf1-eab6eb63df6b.html

Interim / Quarterly Report

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INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 31 MARCH 2015

INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 31 MARCH 2015

Comptel Corporation Stock Exchange Release 24 April 2015 at 8.00 am

INTERIM REPORT OF COMPTEL CORPORATION 1 JANUARY - 31 MARCH 2015

Net sales increased by 16.3% and operating result by 55.7% compared to previous
year.

-- Net sales EUR 21.0 (January - March 2014: 18.0), growth 16.3%
-- Operating result EUR 1.5 million (1.0), growth 55.7%
-- Net profit EUR 0.29 million (0.15) , growth 92.3%
-- Earnings per share EUR 0.00 (0.00)
-- Order backlog EUR 55.8 million (42.2), growth 32,3%

We expect the 2015 net sales to grow compared to previous year and we expect
operating profit to be in the range of 8-12%, excluding one-time charges.

Juhani Hintikka, President and CEO:

”Our net sales and profit grew significantly in Q1 and continued the trend from
second half of 2014. Especially our European operations continued strong sales
in Q1. Our FlowOne Fulfillment solution continued, as in last year, to be our
main growth driver.

We were also awarded a new deal with a new customer in Indonesia together with
our strategic partner Tech Mahindra. Strategically this was an important deal,
since Indonesia is defined in our strategy as one of growth markets.

Our backlog continued to be strong with a 32.3% increase to the previous year.

In Q1 we invested in development areas as defined in our updated strategy.
Despite our investments profitability continued to improve and our operating
results grew 55.7% year over year.

During the first quarter we secured 3 significant orders, valued over EUR 0.5
million. A few Q1 forecasted orders were delayed to beginning of Q2”

Business Review of the First Quarter 2015

Comptel's net sales increased in the first quarter by 16.3 per cent from the
previous year, to 21.0 million (18.0). The net sales increase was due to the
strong backlog at the end of the year. European sales continued with strong
growth as in the second half of last year.

The operating result for the period was EUR 1.5 million (1.0), which
corresponds to 7.1 per cent of net sales (5.3). The profitability improvement
is all attributable to the growth in net sales.

The result before taxes was EUR 0.8 million (0.8), and the net result was EUR
0.29 million (0.15). Net profit improved by 92.3 per cent. Earnings per share
for the period under review were EUR 0.00 (0.00).

The Group's financial income/expenses were EUR -0.7 million, which is a result
of US dollar long term strengthening. The tax expense for the period was EUR
0.5 million (0.6), of which EUR 0.3 million were withholding taxes, related to
double taxation (0.7).

The Group's order backlog increased from the previous year and was EUR 55.8
million (42.2) at the end of the period.

Comptel Strategy

Life is digital moments. Digital demand will be driven by “Generation Cloud”
customers and enterprises interacting with millions of digital applications.
The Internet of Things with billions of connected devices will further
accelerate the digital demand leading to exploding data volumes. Future mobile
and fixed networks will provide hyper speeds and undergo a transformation from
hardware to software. Network functions will be virtualised. Mounting
complexity will require orchestration of business flows and virtualised
resources.

Comptel mission is to perfect the digital moments and translate them into
business moments by connecting digital demand and supply.

The Comptel strategy focuses on providing solutions for digital and
communications service providers in two major areas - Intelligent Data and
Service Orchestration. The Intelligent Data business delivers solutions and
services to customers for monetizing data and turning big data into intelligent
automated actions. The Service Orchestration business area provides solutions
and services for business flow orchestration and mastering the digital buying
experience.

Comptel's strategic target is to establish itself as a leading software vendor
for connecting digital demand and supply.

Strategy execution is based on six strategic objectives: solutions with unique
value, thought leadership, customer excellence, new markets, leverage by
partners and inspired people.

Comptel´s marketing strategy strives for industry thought leadership on
carefully selected themes and topics which are: Digital Buying Experience,
Monetising more with less time, Orchestration of service and order flows from
ground to cloud and intelligent fast data. The essence of Comptel's thought
leadership is captured in the book “Operation Nexterday” that was launched in
Barcelona's Mobile World Congress in March 2015.

Business areas

Net sales, 1-3 1-3 Change, 1-12
EUR million 2015 2014 % 2014


Europe 9.2 6.8 35.4 35.4

Asia Pacific 6.0 5.9 1.7 24.8

Middle East and Africa 3.3 3.2 5.3 16.8

Americas 2.4 2.2 11.9 8.8

Total 21.0 18.0 16.3 85.7

Operating result,
EUR million


Europe 6.3 2.9 115.9 19.5

Asia Pacific 3.2 3.8 -16.1 14.5

Middle East and Africa 0.6 1.4 -58.9 7.3

Americas 1.3 0.9 51.4 4.0

Unallocated costs -9.9 -8.0 -22.9 -37.0

Total 1.5 1.0 55.7 8.3

Operating result,
% of net sales


Europe 68.3 42.9 - 55.3

Asia Pacific 53.3 64.7 - 58.7

Middle East and Africa 17.3 44.4 - 43.2

Americas 54.2 40.1 - 45.5

Total 7.1 5.3 - 9.7

The net sales grew in Europe and in Latin America. In Europe, the net sales
continued the trend in the second half of 2014. In Latin America there were
some improvement in net sales compared to 2014 due to increased customer
activity. Relative profitability improved in Europe due to the strong sales.

In January - March, Comptel received 3 significant orders (Q1 2014: 3), one for
Data Refinery and two for FlowOne Fulfillment. As significant orders Comptel
reports sold projects and licenses with a minimum value of EUR 500,000.

Net sales breakdown, 1-3 1-3 Change, % 1-12
EUR million 2015 2014 2014


Project & License business 12.1 9.1 32.9 52.1

Recurring business 8.9 8.9 -0.2 33.6

Total 21.0 18.0 16.3 85.7

Project & License business improved year over year significantly while
recurring business was on same level as the previous year.

Net sales breakdown, 1-3 1-3 Change, % 1-12
EUR million 2015 2014 2014


Intelligent Data 9.1 9.9 -7.8 39.7

Service Orchestration 11.8 8.1 45.5 46.0

Total 21.0 18.0 16.3 85.7

Service Orchestration is growing significantly year over year due to the strong
backlog and new significant deals in Q1.

Financial Position

EUR million 31 March 31 March Change 31 Dec Change
2015 2014 , 2014 ,
% %


Statement of financial 70.4 60.6 16.3 77.6 -9.3
position total


Liquid assets 7.8 10.4 -25.0 9.4 -16.2

Trade receivables, gross 28.9 18.0 60.0 28.9 -0.2

Bad debt provision -1.4 -0.8 73.8 -1.2 19.5

Trade receivables, net 27.5 17.2 59.3 27.7 -1.0

Accrued income 9.6 7.8 23.2 10.9 -12.3

Deferred income related to 3.6 1.9 82.4 4.4 -19.4
partial debiting


Interest-bearing debt 7.5 7.7 -2.4 7.6 -0.8

Equity ratio, per cent 60.5 55.4 9.3 52.4 15.4

The statement of financial position on 31 March was EUR 70.4 million (60.6), of
which liquid assets amounted to EUR 7.8 million (10.4). The operating cash flow
was EUR -0.6 million (7.2) in the first quarter.

The trade receivables were EUR 27.5 million (17.2) at the end of the period.
The trade receivables were significantly higher compared to previous year due
to high sales volumes at the end of previous year and beginning of current
year. The accrued income was EUR 9.6 million (7.8). The deferred income related
to partial debiting was EUR 3.6 million (1.9).

Comptel has a 16 million credit facility arrangement consisting of 3 million
term-loan and a revolving credit facility of 13 million. Out of this
arrangement Comptel had 3 million of the term-loan and 4 million of the
revolving credit facility outstanding at the quarter end. The credit facility
is valid until January 2016.

The equity ratio was 60.5 per cent (55.4) and the gearing ratio was -1.0 per
cent (-9.9).

Research and Development (R&D)

EUR million 1-3 1-3 Change, % 1-12
2015 2014 2014


Direct R&D expenditure 4.3 3.9 10.3 16.8

Capitalisation of R&D expenditure according to -1.1 -1.1 -7.6 4.7
IAS 38


R&D depreciation and impairment charges 1.3 1.2 10.1 4.9

R&D expenditure, net 4.5 3.9 15.5 17.0

Direct R&D expenditure, % of net sales 20.6 21.7 - 19.6

Direct R&D expenditure represented 20.6 per cent (21.7) of net sales.

The focus of Comptel's R&D expenditure was in the further development of the
solutions in the main product areas, Service Orchestration and Intelligent
Data. Development is targeted both to secure the recurring revenue with
competitive products and to win new markets by giving customers unique value
with new innovation. The FlowOne Fulfillment solution is developed as a suite
of orchestration elements that manage the service and business flows from
ground to cloud. Data Refinery captures data-in-motion and uses embedded
intelligence to refine it for automated, in-the-moment decisions and actions.
Monetizer is the business policy and charging tool that allows the innovation
and designing of rich communication and data service offers at the speed of
business. Data Fastermind embeds artificial intelligence, prediction and
machine learning capabilities into all solutions.

In these areas Comptel seeks global thought leadership in solving the business
challenges of operators and digital communications service providers.
Additionally Comptel has started to invest in new products around the digital
buying experience

During 2015 the company will further continue to develop its current offering.
Five major software releases were launched in these respective product areas
during the review period.

Investments

EUR million 1-3 1-3 Change, 1-12
2015 2014 % 2014


Gross investments in property, plant and equipment 0.1 0.2 -50.3 0.7
and intangible assets


The investments comprised of devices, software and furnishings. The investments
were funded through cash flow from operations.

Personnel

                            31 March   31 March  Change,     31 Dec  Change,
                                2015       2014        %       2014        %

Number of employees at the 689 683 0.9 660 4.4
end of period


                                       1-3   1-3  Change, %  1-12  Change, %
                                      2015  2014             2014

Average number of personnel during the 676 688 -1.7 665 1.7
period


The number of employees increased slightly compared to the previous year. In
the first quarter, the personnel expenses were 45.7 per cent of net sales
(48.6).

At the end of the period, 29.8 per cent (28.8) of the personnel were located in
Finland, 28.2 per cent (28.0) in Malaysia, 11.2 per cent (11.3) in Bulgaria,
8.0 per cent (6.9) in India, 3.2 per cent (3.2) in the United Arab Emirates,
2.6 per cent (2.8) in Norway, and 17.0 per cent (19.0) in other countries where
Comptel operates.

Comptel share

The closing share price of the period was EUR 0.98 (0.53). Comptel's market
value at the end of the period was EUR 104.8 million (56.8).

Comptel share 1-3 1-3 Change, % 1-12
2015 2014 2014


Shares traded, million 6.2 13.3 -53.4 27.8

Shares traded, EUR million 5.8 7.0 -17.8 16.5

Highest price, EUR 1.00 0.57 75.0 1.00

Lowest price, EUR 0.84 0.48 75.4 0.48

Of Comptel's outstanding shares, 6.2 per cent (7.7) were nominee registered or
held by foreign shareholders at the end of the period.

The company held 464,739 of its own shares at the end of the period, which is
0.15 per cent of the total number of its shares. The total counter-book value
of the shares held by the company was EUR 9,262.

1,010,000 share options were distributed during the review period based on
Stock Option Incentive plan 2014.

Corporate Governance

The Annual General Meeting (AGM), held on 9th of April 2015 re-elected Mr.
Pertti Ervi, Mr. Hannu Vaajoensuu, Ms. Eriikka Söderström, Mr. Antti Vasara and
Mr. Heikki Mäkijärvi as members of the Board of Directors. In the meeting held
after the AGM, the Board of Directors elected Mr Pertti Ervi as chairman and Mr
Hannu Vaajoensuu as vice chairman.

The Board decided not to set up committees.

The AGM appointed Ernst & Young Oy as the company's auditor. Mr. Mikko
Järventausta is acting as the principal auditor.

The AGM resolved that dividend of 0.02 EUR per share will be paid for 2014.

The AGM authorised the Board of Directors to decide on share issues amounting
to a maximum of 21,400,000 new 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 June 2016. However, the authorisation to
implement the company's share-based incentive programs is valid five years from
the AGM resolution.

A separate stock exchange release about the authorisations given and other
decisions made by the Annual General Meeting was published on 9th of April
2015.

Events after the Reporting Period

Significant orders have been received, of which separate stock exchange
releases have been issued.

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 systems, 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. Due to latest decisions by the Finnish tax authorities this risk
impact on corporate effective tax rate is lower.

The risks and uncertainties of Comptel are described in more detail in the
company's financial statements and the Board of Directors' report for 2014

Outlook

We expect the 2015 net sales to grow compared to previous year and we expect
operating profit to be in the range of 8-12%, excluding one-time charges.

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 2014.

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 Income 1 Jan - 1 Jan -
(EUR 1,000) 31 Mar 31 Mar
2015 2014



Net sales 20,957 18,023


Other operating income 3 314


Materials and services -1,104 -1,078

Employee benefits -9,576 -8,753

Depreciation, amortisation and impairment charges -1,610 -1,504

Other operating expenses -7,177 -6,042

                                                           -19,467   -17,378

--------------------------------------------------------------------------------

Operating profit/loss 1,493 959


Financial income 852 602

Financial expenses -1,550 -786


Profit/loss before income taxes 795 775


Income taxes -503 -623


Profit/loss for the period 292 152


Other comprehensive income


Other comprehensive income to be reclassified to profit or
loss in subsequent periods



Cash flow hedges 47 -

Translation differences 721 89

Income tax relating to components of other comprehensive -9 -
income


Total other comprehensive income 758 89


Total comprehensive income for the period 1,050 241


Profit/loss attributable to:

Equity holders of the parent company 292 152


Total comprehensive income attributable to:

Equity holders of the parent company 1,050 241


Shareholders of the parent company:


Earnings per share, EUR 0.00 0.00

Earnings per share, diluted, EUR 0.00 0.00

Consolidated Statement of Financial Position (EUR 1,000) 31 Mar 31 Dec
2015 2014



Assets


Non-current assets

Goodwill 2,646 2,646

Other intangible assets 13,110 13,435

Tangible assets 1,564 1,596

Investments in associates 673 673

Available-for-sale financial assets 87 87

Deferred tax assets 6,308 5,880

Other non-current receivables 628 613

                                                         25,016  24,929

---------------------------------------------------------------------------

Current assets

Trade and other current receivables 37,085 43,043

Current tax asset 493 315

Cash and cash equivalents 7,833 9,352
--------------------------------------------------------------------------- 45,411 52,710



Total assets 70,427 77,638


Equity and liabilities


Equity attributable to equity holders of the parent company


Share capital 2,141 2,141

Fund of invested non-restricted equity 407 401

Translation differences 25 -699

Fair value reserve -144 -182

Retained earnings 31,909 31,685

Total equity 34,337 33,346


Non-current liabilities

Deferred tax liabilities 2,619 2,669

Non-current financial liabilities 204 1,257

                                                          2,823   3,926

---------------------------------------------------------------------------

Current liabilities

Provisions 1,243 1,325

Current financial liabilities 7,297 6,305

Trade and other current liabilities 24,727 32,737

                                                         33,267  40,367

---------------------------------------------------------------------------

Total liabilities 36,090 44,292


Total equity and liabilities 70,427 77,638

Consolidated Statement of Cash Flows 1 Jan - 31 1 Jan - 31
(EUR 1,000) Mar Mar
2015 2014



Cash flows from operating activities


Profit/loss for the period 292 152

Adjustments:

Non-cash transactions or items that are not part of cash 2,347 1,268
flows from operating activities


Interest and other financial expenses 78 221

Interest income -28 -5

Income taxes 505 623

Change in working capital:

Change in trade and other current receivables 6,094 11,116

Change in trade and other current liabilities -8,702 -4,819

Change in provisions -110 -171

Interest and other financial expenses paid -78 -27

Interest received 26 3

Income taxes paid and tax returns received -984 -1,180


Net cash from operating activities -561 7,181


Cash flows from investing activities


Proceeds from sale of business operations - 200

Investments in tangible assets -118 -238

Investments in intangible assets - -

Investments in development projects -1,060 -1,147

Proceeds from sale of intangible assets 5 2

Change in other non-current receivables 16 -


Net cash used in investing activities -1,157 -1,183


Cash flows from financing activities


Dividends paid - -1,073

Shares issued 6

Proceeds from borrowings 3,989 -

Repayment of borrowings -4,000 -1,000

Lease payments -68 -57

Change in other non-current liabilities - -31


Net cash used in financing activities -75 -2,160


Net change in cash and cash equivalents -1,793 3,838


Cash and cash equivalents at the beginning of the period 9,352 6,542

Cash and cash equivalents at the end of the period 7,833 10,444

Change -1,519 3,901


Effects of changes in foreign exchange rates 274 64

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

Share-based 9 9
compensation


Prior year correction * -210 -210

Other changes -3 -3

Total comprehensive 89 152 241
income for the period


Equity at 2,141 401 -1,130 26,476 27,888
31 Mar 2014


Consolidated Statement of Changes in Equity

Equity attributable to equity holders of the parent company

EUR 1,000 Share Other Translation Fair value Retain Total
capital reserves differences reserve ed
earnin
gs


Equity at 2,141 401 -698 -182 31,684 33,346
31 Dec 2014


Shares issued 6 6

Share-based -91 -91
compensation


Other changes 25 25

Total comprehensive 721 37 292 1,050
income for the
period


Equity at 2,141 407 24 -144 31,909 34,337
31 Mar 2015


*Difference in prior year receivables was corrected directly to Retained
Earnings during the quarter.

Notes

  1. 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 2015. However those
have not had an impact on the consolidated financial statements.

  1. Segment information

Net sales by segment

EUR 1,000 1 Jan - 1 Jan -
31 Mar 2015 31 Mar 2014



Europe 9,201 6,794

Asia-Pacific 6,019 5,917

Middle East and Africa 3,329 3,160

Americas 2,408 2,151

Group total 20,957 18,023

Operating profit/loss by segment

EUR 1,000 1 Jan - 1 Jan -
31 Mar 2015 31 Mar 2014



Europe 6,289 2,913

Asia-Pacific 3,210 3,826

Middle East and Africa 577 1,403

Americas 1,306 863

Group unallocated expenses -9,889 -8,045

Group operating profit/loss total 1,493 959

Financial income and expenses -698 -184

Group profit/loss before income taxes 795 775

  1. Income tax

Income tax expense according to the statement of comprehensive income for the
period was EUR 503 thousand (EUR 623 thousand).

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 253 thousand
in January - March (EUR 665 thousand).

  1. Tangible assets

EUR 1,000 1 Jan - 1 Jan -
31 Mar 2015 31 Mar 2014



Additions 118 238

  1. 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 - 1 Jan -
31 Mar 2015 31 Mar 2014



Associate

Interest income 2 2

EUR 1,000 31 Mar 2015 31 Dec 2014


Associate

Non-current receivables 115 108

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 - 31 Mar 1 Jan - 31 Mar
2015 2014



Salaries and other short-term employee 351 323
benefits


Share-based payments 36 30

Total 387 353

Guarantees and other commitments

EUR 1,000 31 Mar 2015 31 Dec 2014


Guarantees 15 7

  1. Commitments

Minimum lease payments on non-cancellable office facilities and other operating
leases are payable as follows:

EUR 1,000 31 Mar 2015 31 Dec 2014


Less than one year 2,310 2,428

Between one and five years 2,570 2,962

Total 4,879 5,390

The group had no material capital commitments for the purchase of tangible
assets at 31 March 2015 and 31 March 2014.

  1. Contingent liabilities

EUR 1,000 31 Mar 2015 31 Dec 2014


Bank guarantees 3,287 2,881

Corporate mortgages 200 200

EUR 1,000 31 Mar 2015 31 Dec 2014


Contingent liabilities on behalf of others

Guarantees 33 34

  1. Fair values of financial assets and liabilities

EUR 1,000 Book Fair Book Fair Book Fair
value value value value value value
31.3.2 31.3.2 31.3.2 31.3.2 31.12. 31.12.
015 015 014 014 2014 2014


Financial assets

Financial assets at fair value
through profit or loss


Forward contracts (level 2) 36 36 346 346 25 25

Available-for-sale financial 87 87 87 87 87 87
assets (level 3))


Non-current trade receivables 1,693 1,693 1,048 1,048 1,466 1,466

Current trade receivables 27,177 27,177 16,999 16,999 27,449 27,449

Other current receivables 680 680 523 523 4,624 4,624

Cash and cash equivalents 7,833 7,833 10,444 10,444 9,352 9,352--------------------------------------------------------------------------------

Financial liabilities

Financial liabilities at fair
value through profit or loss


Forward contracts (level 2) 1,226 1,226 - - 847 847

Trade payables and other 24,727 24,727 20,425 20,425 32,713 32,713
liabilities


Non-current loans from financial 67 67 3,111 3,160 1,078 1,081
institutions


Non-current finance lease 137 137 243 243 179 179
liabilities


Other non-current liabilities - - 63 63 - -

Current loans from financial 6,984 7,028 3,992 4,084 5,984 6,095
institutions


Current finance lease 250 250 205 205 259 259
liabilities


Other current liabilities 63 63 68 68 63 63


  1. Key figures

Financial summary 1 Jan - 1 Jan -
31 Mar 31 Mar
2015 2014



Net sales, EUR 1,000 20,957 18,023

Net sales, change % 16.3 -14.9

Operating profit/loss, EUR 1,000 1,493 959

Operating profit/loss, change % 55,7 8.0

Operating profit/loss, as % of net sales 7.1 5.3

Profit/loss before taxes, EUR 1,000 795 775

Profit/loss before taxes, as % of net sales 3.8 4.3

Return on equity, % - -

Return on investment, % - -

Equity ratio, % 60,5 55.4

Gross investments in tangible and intangible assets, EUR 118 238
1,0001)


Gross investments in tangible and intangible assets, as 0.6 1.3
% of net sales


Capitalisations according to IAS 38 to intangible 1,060 1,147
assets, EUR 1,000


Research and development expenditure, EUR 1,000 4,307 3,904

Research and development expenditure, 20.6 21.7
as % of net sales


Order backlog, EUR 1,000 55,798 42,164

Average number of employees during the period 676 683

Interest-bearing net liabilities, EUR 1,000 -332 -2,762

Gearing ratio, % -1.0 -9.9

1) The figure does not include investments in development projects.

Per share data 1 Jan - 1 Jan -
31 Mar 2015 31 Mar 2014



Earnings per share (EPS), EUR 0.00 0.00

EPS diluted, EUR 0.00 0.00

Equity per share, EUR 0.32 0.26

Dividend per share, EUR - -

Dividend per earnings, % - -

Effective dividend yield, % - -

P/E ratio - -


Adjusted number of shares at the end of the period 107,432,270 107,421,270

of which the number of treasury shares 464,739 161,219

Outstanding shares 106,967,531 107,260,051

Adjusted average number of shares during the period 106,966,567 107,260,051

Average number of shares, dilution included 107,758,737 107,260,051

10. Definition of key figures

Operating margin % = Operating profit/loss x100
------------------------------------ -----------------------------------------
------------------------------------
Net sales
------------------------------------ -----
------------------------------------ -----
Profit margin (before income taxes) = Profit/loss before taxes x100
%
------------------------------------ -----------------------------------------
------------------------------------
Net sales
------------------------------------ -----
------------------------------------ -----
Return on equity % (ROE) = Profit/loss x100
------------------------------------ -----------------------------------------
------------------------------------
Total equity (average during year)
------------------------------------ -----
------------------------------------ -----
Return on investment % (ROI) = Profit/loss before taxes + x100
financial expenses
------------------------------------ -----------------------------------------
------------------------------------
Total equity + interest bearing
liabilities (average during the
year)
------------------------------------ -----
------------------------------------ -----
Equity ratio % = Total equity x100
------------------------------------ -----------------------------------------
------------------------------------
Statement of financial position
total - advances received
------------------------------------ -----
------------------------------------ -----
Gross investments in tangible and = Gross investments in tangible and x100
intangible assets, as % of net intangible assets
sales
------------------------------------ -----------------------------------------
------------------------------------
Net sales
------------------------------------ -----
------------------------------------ -----
Research and development = Research and development x100
expenditure, as % of net sales expenditure
------------------------------------ -----------------------------------------
------------------------------------
Net sales
------------------------------------ -----
------------------------------------ -----
Gearing ratio % = Interest-bearing liabilities - x100
cash and cash equivalents
------------------------------------ -----------------------------------------
------------------------------------
Total equity
------------------------------------ -----
------------------------------------ -----
Earnings per share (EPS) = Profit/loss for the financial year
attributable to equity
shareholders
------------------------------------ -----------------------------------------
------------------------------------
Average number of outstanding
shares for the financial year
------------------------------------ -----
------------------------------------ -----
Equity per share = Equity attributable to the equity
holders of the parent company
------------------------------------ -----------------------------------------
------------------------------------
Adjusted number of shares at the
end of period
------------------------------------ -----
------------------------------------ -----
Dividend per share = Dividend
------------------------------------ -----------------------------------------
------------------------------------
Adjusted number of shares at the
end of period
------------------------------------ -----
------------------------------------ -----
Dividend per earnings % = Dividend per share x100
------------------------------------ -----------------------------------------
------------------------------------
Earnings per share (EPS)
------------------------------------ -----
------------------------------------ -----
Effective dividend yield % = Dividend per share x100
------------------------------------ -----------------------------------------
------------------------------------
Share closing price at end of
period
------------------------------------ -----
------------------------------------ -----
P/E ratio = Share closing price at end of
period
------------------------------------ -----------------------------------------
------------------------------------
Earnings per share (EPS)
------------------------------------ -----


Schedule for Comptel's interim reports in 2015:

January-June 4 August 2015

January-September 20 October 2015

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