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ERG Capital-3 REIT — Earnings Release 2010
Aug 25, 2010
10366_ir_2010-08-25_64f45534-fc9f-456b-99b1-73114bebd22f.pdf
Earnings Release
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TIE KINETIX total integrated e-commerce
PRESS RELEASE
The Netherlands, Amsterdam, 2010, August 18
TIE: Q3 Trading Update
TIE Holding N.V. ("TIE") reports the following highlights with regard to the third Quarter 2010 (April 1, 2010 - June 30, 2010)
Business Results:
Third Quarter 2010 Total Income amounted to € 2,783k (Q3_2009: 2,855k). Operating Income Q3_2010 amounted to €-58k (Q3_2009: € 197k) and Comprehensive Income amounted to € 2k (Q3_2009: € 29k).
For the nine months 2010 Total Income amounted to €8,400k (9M_2009: € 8,387k), Operating Income amounted to € -292k (9m_2009: € 536k) and Comprehensive Income amounted to € -221k (9m_2009: € 373k).
CEO Jan Sundelin said: "Despite the disappointing revenue, the quality of our revenue stream, during the 3rd quarter, is developing according to plan compared to last year. This important shift to Managed Services in a Software as a Service (SaaS) environment will yield more sustainable revenue. During this quarter the Company closed several important SaaS contracts with both new and existing customers in E-commerce and Content Syndication platforms. These SaaS business opportunities generate a monthly revenue stream with a higher value, resulting from the added service. We now see, with these latest contracts that the interest for E-commerce and Content Syndication is moving the Company into new business with long term profitable SaaS revenue. The quality of our revenue stream keeps improving. We therefore will maintain the current expense levels in marketing and sales".
Since April 1, 2010 and up to this moment, the Company reports the following highlights:
Customers:
On June 10, 2010 the Company announced that CapGemini Retail Solutions Division has selected the TIE EDI platform including TIE's Freeconnect solution as exclusive EDI platform for the Retail. The Freeconnect solution enables Capgemini Retail Solutions to offer added value not only to its EDI customers, but also to their suppliers and business partners, by saving costs and yielding productivity between parties in the supply chain.
On June 17, 2010 the Company announced that TIE Asia has signed its first major contract in Asia with ROYAL MALAYSIAN CUSTOMS, in close cooperation with the main contractor and TIE partner Edaran IT Services Sdn Bhd ("EDARAN").
ROYAL MALAYSIAN CUSTOMS selected the TIE Kinetix Business Integration Platform as their new solution for all their EDI messaging, with the TIE eVision Enterprise Unlimited platform as the center of the new environment
On June 24, 2010 the Company announced that TIE's global strategic Content Syndication partner, CNET Content Solutions, a division of CBS Interactive, has teamed up with Lenovo to syndicate the PC maker's content worldwide through ContentCast™. ContentCast™ is a CNET Content Solutions real-time syndication service, which provides Lenovo "Brand Showcase" and "Explore Product" content to Lenovo's retail and distribution partner websites. Powered by TIE Kinetix ContentCast™ combines Lenovo's marketing assets with
CNET DataSource™ to deliver Lenovo Brand messaging directly to Lenovo's partner sites. Using an “Explore Product” module and a separate “Brand Showcase” module, ContentCast™ delivers manufacturer’s product content to the partner’s product page enabling Lenovo to immerse the user in their brand content messaging without ever leaving the partner’s retail site.
On July 1, 2010 the Company reported that Microsoft was able to increase the online conversion rate of their office products with selected retailers by using the TIE Kinetix Content Syndication Platform.
The TIE cross and up sell Module for online retailers enables the direct up sell via an online store. Powered by TIE Kinetix, the Digital Content Direct program of Microsoft enables their resellers and retailers to deliver their customers a much richer online buying experience. The new module facilitates direct up sell for Microsoft partners, while the TIE Reporting and Analytics module provides a clear insight in the conversion rate.
On August 4, 2010 the Company reported that Siemens Enterprise Communications GmbH (SEN) introduced their worldwide Digital Channel partner program, powered by the TIE Kinetix Content Syndication Platform, in China. This important move demonstrates TIE’s ability to syndicate content without frontiers.
SEN introduced their Digital Channel Global Partner Program in January 2009. The program is implemented in 11 languages in 23 countries with over 500 partners subscribed. The Digital Channel Program, powered by TIE Kinetix, is an important key element of the worldwide indirect partner program.
On August 16, 2010 the Company announced that Culinaireversmarkt.nl, an activity of Newco Food Retail, has selected the TIE MamboFive E-commerce platform. Culinaireversmarkt.nl is the first online specialty webshop for daily fresh products. Consumers are able to receive an online advice in selecting a menu, order within minutes the ingredients and receive preparation instructions with video examples. Against the same price and at a high service level the webshop delivers the high quality fresh ingredients to the customers’ home.
The TIE MamboFive E-commerce platform is used by e-tailers in the food & beverage, telecom, music, supplies and fashion branch as well as the wholesale branch.
Organization:
On April 1, 2010 the Company exercised its call option in order to obtain the remaining 24.5% of the shares in MamboFive B.V. In accordance with the Sale Purchase Agreement, the purchase price of € 450k has been paid on April 1, 2010 by the issue of Convertible Bonds to the former shareholders, at a fixed conversion rate of € 0.188, a one year lock-up and a five year maturity period. After the formal transfer of the shares, TIE holds 100% of the shares in MamboFive and the integration within the organization is now complete.
Financial and Cash Position:
During Q3_2010 the equity position of the Company was strengthened by the conversion of 5 Convertible Bonds amounting to a total of € 450k and the exercise of 1,065,000 options amounting to a total of € 1,065k on April 1, 2010. CEO Jan Sundelin exercised 265.000 options in total, amounting to € 26.5k on April 1, 2010.
Shareholders’ Equity amounts to € 5,100k on June 30, 2010 (€ 2,417k on September 30, 2009). Equity per June 30, 2010 amounts to € 5,595k (€ 4,078k per September 30, 2009) including Convertible Bonds amounting to € 495k (€ 1,661k per September 30, 2009).
The numbers stated in this Trading Update are unaudited
On April 1, 2010 the Company exercised its call option to obtain the remaining 24.5% of the shares of MamboFive B.V. In accordance with the Sale Purchase Agreement the purchase price of € 450k has been paid on April 1, 2010 by the issue of Convertible Bonds to the (old) MamboFive shareholders, at a fixed conversion rate of € 0.188, an one year lock-up and a 5 year maturity period. The Company now holds 100% in MamboFive B.V.
On June 30, 2010 the Company held a net positive cash and cash equivalents position of € 205k (September 30, 2009 € 457k).
Pending Litigations
Since December 2007 the Company has been involved in discussions and subsequently in legal proceedings with SAMAR B.V. All claims in the summary proceedings were instantly dismissed at the court hearing of February 15, 2008. On July 7, 2010, the court of Haarlem granted all claims by Samar. TIE has been ordered to pay full damages amounting € 888k (this amount may be adjusted upwards or downwards in the procedure regarding the assessment of the damages). The Company currently foresees a negative impact on the fourth quarter results of financial year 2010 amounting to € 766k. TIE will file an appeal.
On November 20, 2009, TIE initiated an investigation on a potential infringement on the Content Syndication Platform. On May 7, 2010 the judge pronounced a ruling in summary proceedings, dismissing TIE's claim and ruling payment of the costs of litigation of the defendants. TIE has lodged an appeal against the ruling.
The numbers stated in this Trading Update are unaudited
Interim Consolidated Income Statement
For the 3 months ended June 30, 2010:
| (EUR x 1,000) | For the three months ended
30-Jun
(unaudited) | |
| --- | --- | --- |
| | 2010 | 2009 |
| Revenues | | |
| Licenses | 351 | 305 |
| Maintenance and Support | 761 | 805 |
| Consultancy | 626 | 628 |
| Software as a Service | 919 | 872 |
| Total Revenues | 2,657 | 2,610 |
| Other Income | 126 | 245 ) |
| Total Income | 2,783 | 2,855 |
| Direct Purchase Costs | (348) | (316) |
| Income Net of Direct Purchase Costs | 2,435 | 2,539 |
| Operating Expenses | | |
| Employee Benefits | 1,698 | 1,666 ) |
| Depreciation and Amortization Expense and
Impairment Losses | 131 | 88 |
| Other Operating Expenses | 664 | 588 |
| Total Operating Expenses | 2,493 | 2,342 |
| Operating Income | (58) | 197 |
| Interest and other Financial Income | - | 3 |
| Interest and other Financial Expense | (8) | 5 |
| Share in Profit (Loss) of Associates | - | - |
| Income before Tax | (66) | 205 |
| Corporate Income Tax | (103) | (86) |
| Income after Tax | (169) | 119 |
| Other Comprehensive Income | | |
| Exchange differences on translating of foreign operations | 171 | (90) |
| Total Comprehensive Income | 2 | 29 |
| Attributable to: | | |
| Shareholders TIE | 2 | 29 |
| Minority Interest | 0 | 0 |
| Net result per share - basic | 0.00 | 0.00 |
| Weighted average shares outstanding - basic (thousands) | 82,121 | 56,384 |
| Net result per share - diluted | 0.00 | 0.00 |
| Weighted average number of shares fully diluted (thousands) | 84,374 | 72,544 |
*) Comparative numbers adjusted for reclassifications of WBSO subsidy from other income to employee benefits as of Q4_2009, comparatives Q3_2009 have been adjusted. No effect on Comprehensive Income.
The numbers stated in this Trading Update are unaudited
Interim Consolidated Income Statement
For the 9 months ended June 30, 2010:
| (EUR x 1,000) | For the nine months ended
30-Jun
(unaudited) | |
| --- | --- | --- |
| | 2010 | 2009 |
| Revenues | | |
| Licenses | 1252 | 831 |
| Maintenance and Support | 2212 | 2467 |
| Consultancy | 1812 | 1862 |
| Software as a Service | 2436 | 2611 |
| Total Revenues | 7,712 | 7,771 |
| Other Income | 688 | 616 ) |
| Total Income | 8,400 | 8,387 |
| Direct Purchase Costs | (953) | (1,040) |
| Income Net of Direct Purchase Costs | 7,447 | 7,347 |
| Operating Expenses | | |
| Employee Benefits | 5,223 | 4,939 ) |
| Depreciation and Amortization Expense and
Impairment Losses | 367 | 248 |
| Other Operating Expenses | 2149 | 1,624 |
| Total Operating Expenses | 7,739 | 6,811 |
| Operating Income | (292) | 536 |
| Interest and other Financial Income | - | 11 |
| Interest and other Financial Expense | (42) | (15) |
| Share in Profit (Loss) of Associates | - | - |
| Income before Tax | (334) | 532 |
| Corporate Income Tax | (282) | (268) |
| Income after Tax | (616) | 264 |
| Other Comprehensive Income | | |
| Exchange differences on translating of foreign operations | 395 | 109 |
| Total Comprehensive Income | (221) | 373 |
| Attributable to: | | |
| Shareholders TIE | (221) | 373 |
| Minority interest | 0 | 0 |
| Net result per share - basic | 0.00 | 0.01 |
| Weighted average shares outstanding - basic (thousands) | 75,891 | 56,126 |
| Net result per share - diluted | 0.00 | 0.01 |
| Weighted average number of shares fully diluted (thousands) | 78,598 | 64,501 |
*) Comparative numbers adjusted for reclassifications of WBSO subsidy from other income to employee benefits as of Q4_2009, comparatives Q3_2009 have been adjusted. No effect on Comprehensive Income.
The numbers stated in this Trading Update are unaudited
Segment info:
For the three months ended June 30, 2010
| The Netherlands | North America | Rest of World | Holding and Eliminations | Total | |
|---|---|---|---|---|---|
| Revenues | |||||
| Licenses | 171 | 113 | 67 | 0 | 351 |
| Maintenance and Support | 218 | 438 | 105 | 0 | 761 |
| Consultancy | 313 | 202 | 111 | 0 | 626 |
| Software as a Service | 415 | 243 | 261 | 0 | 919 |
| Total Revenue | 1,117 | 996 | 544 | 0 | 2,657 |
| Other Income | 126 | 0 | 0 | 0 | 126 |
| Total Income | 1,243 | 996 | 544 | 0 | 2,783 |
| Direct Purchase Costs | 187 | 122 | 39 | 0 | 348 |
| Income Net of Direct Purchase Costs | 1,056 | 874 | 505 | 0 | 2,435 |
| Operating Expenses | |||||
| Employee Benefits | 619 | 631 | 267 | 181 | 1,698 |
| Depreciation and Amortization Expense and Impairment Losses | 85 | 37 | 6 | 3 | 131 |
| Other Operating Expenses | 259 | 139 | 75 | 191 | 664 |
| Total Operating expenses | 963 | 807 | 348 | 375 | 2,493 |
| Operating Income | 93 | 67 | 157 | (375) | (58) |
| Interest and Other Financial Income | 0 | 0 | 0 | 0 | 0 |
| Interest and other Financial Expense | (1) | (4) | 0 | (3) | (8) |
| Income before Tax | 92 | 63 | 157 | (378) | (66) |
| Corporate Income Tax | 0 | (93) | (10) | 0 | (103) |
| Income after Tax | 92 | (30) | 147 | (378) | (169) |
For the three months ended June 30, 2009
| The Netherlands | North America | Rest of World | Holding and Eliminations | Total | |
|---|---|---|---|---|---|
| Revenues | |||||
| Licenses | 144 | 74 | 87 | - | 305 |
| Maintenance and Support | 219 | 467 | 119 | - | 805 |
| Consultancy | 386 | 159 | 83 | - | 628 |
| Software as a Service | 463 | 237 | 172 | - | 872 |
| Total Revenue | 1,212 | 937 | 461 | - | 2,610 |
| Other Income | 245 | - | - | - | 245 *) |
| Total Income | 1,457 | 937 | 461 | - | 2,855 |
| Direct Purchase Costs | 232 | 80 | 4 | - | 316 |
| Income Net of Direct Purchase Costs | 1,225 | 857 | 457 | - | 2,539 |
| Operating Expenses | |||||
| Employee Benefits | 802 | 520 | 211 | 133 | 1,666 *) |
| Depreciation and Amortization Expense and Impairment Losses | 33 | 45 | 6 | 4 | 88 |
| Other Operating Expenses | 284 | 147 | 36 | 121 | 588 |
| Total Operating expenses | 1,119 | 712 | 253 | 258 | 2,342 |
| Operating Income | 106 | 145 | 204 | (258) | 197 |
| Interest and Other Financial Income | 2 | - | - | 1 | 3 |
| Interest and other Financial Expense | - | 5 | - | - | 5 |
| Income before Tax | 108 | 150 | 204 | (257) | 205 |
| Corporate Income Tax | - | (73) | (13) | - | (86) |
| Net Income | 108 | 77 | 191 | (257) | 119 |
*) Comparative numbers adjusted for reclassifications of WBSO subsidy from other income to employee benefits as of Q4_2009, comparatives Q3_2009 have been adjusted. No effect on Comprehensive Income.
The numbers stated in this Trading Update are unaudited
The numbers stated in this Trading Update are unaudited
Profile TIE
TIE (NYSE Euronext: TIE Holding) delivers innovative web centric, software based solutions that enable all trading partners in the supply chain to work seamlessly together on the major E-commerce processes of marketing, sales and fulfillment. With its TIE Kinetix concept, it provides a Total Integrated E-commerce process, embracing three innovative platforms for Business Integration (including e-invoicing, XML/EDI data synchronization), Content Syndication and E-commerce. The Total Integrated E-commerce solutions minimize the energy needed for a transaction lifecycle throughout the supply chain giving organizations the advantage to reduce cost and maximize revenue and profit.
TIE has more than two decades of experience in developing and implementing global E-commerce standards. TIE is a listed company with offices in the United States, Australia, France and the Netherlands.
Further information:
TIE Holding N.V.
Jan Sundelin, CEO
Antareslaan 22-24
2132 JE Hoofddorp
The Netherlands
T: +31-20-658 93 33
F: +31-20-658 90 01
E: [email protected]
W: www.TIEHolding.com
END OF PRESS RELEASE
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