HANSEN TECHNOLOGIES LIMITED — Interim / Quarterly Report 2013

Feb 26, 2013

HANSEN TECHNOLOGIES LTD ABN 90 090 996 455 AND CONTROLLED ENTITIES

HALF-YEAR INFORMATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2012 PROVIDED TO THE ASX UNDER LISTING RULE 4.2A

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2012.

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Rule 4.2A.3

Appendix 4D Half Year Report for the six months to 31 December 2012

Hansen Technologies Ltd and its Controlled Entities

ABN or equivalent company reference: ABN: 90 090 996 455

1. Reporting period

1. Reporting period
Report for the half year ended:	31 December 2012
Previous corresponding periods:	Financial year ended 30 June 2012
	Half year ended 31 December 2011

2. Results for announcement to the market

$A’000	$A’000	$A’000
Revenues from ordinary activities Down 5.6% to 26,798 Net profit after tax attributable to members Down 46% to 3,841
	Amount per security	Franked amount per security
Interim Dividend Declared
Interim dividend for the 2013 fiscal year	3¢	2¢
Interim dividend for previous corresponding period	3¢	1¢
Payment date for the interim dividend for the half-year ended 31 December 2012	28 March 2013
Previous Final Dividend Paid
Final dividend for the year ended 30 June 2012	3¢	3¢
Final dividend for previous corresponding period	3¢	3¢
Payment date for the final dividend for the year ended 30 June 2012	28 September 2012

$A’000	$A’000	$A’000
Revenues from ordinary activities Down 5.6% to 26,798 Net profit after tax attributable to members Down 46% to 3,841
	Amount per security	Franked amount per security
Interim Dividend Declared
Interim dividend for the 2013 fiscal year	3¢	2¢
Interim dividend for previous corresponding period	3¢	1¢
Payment date for the interim dividend for the half-year ended 31 December 2012	28 March 2013
Previous Final Dividend Paid
Final dividend for the year ended 30 June 2012	3¢	3¢
Final dividend for previous corresponding period	3¢	3¢
Payment date for the final dividend for the year ended 30 June 2012	28 September 2012

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The Group operating result for the half year to 31 December 2012 was:

• Revenue of $26.8 million, (6% less than the previous corresponding period),

• EBITDA of $6.4 million, (37% less than for the previous corresponding period),

• Net Profit after tax of $3.8 million, (down 46% from the previous corresponding period),

The Directors of Hansen have declared a consistent 3 cents per share interim dividend with an increased level of franking for this interim dividend with:

• 2 cents per share fully franked , and

• 1 cent per share unfranked,

• a record date of 8 March 2013, and

• payment on 28 March 2013,

• the conduit foreign income component of this interim dividend is Nil,

• the application price for shares issued in accordance with the Company’s Dividend Reinvestment Plan will be the full undiscounted value.

A quieter new business market generally coupled with delays in decision making on potential new projects and a consistently high Australian $ have all contributed to lower revenues so far this year than we were forecasting. As previously advised we have been at the same time investing in our delivery capacity and growing our USA operations. The combination of these factors has resulted in a disappointing first half year result.

We are however confident that the investment decisions we are making in personnel/offices around the world are well positioned and will deliver increased opportunities, improved performance and increased delivery capacity internationally.

Our acquisition of the Integrated Customer Central Pay TV billing and customer care product division (ICC) of Irdeto Inc. announced on 2 January 2013 represents a significant step forward in our international expansion. The complementary nature of their proprietary software suite of products, the expansion of our interests into the media and entertainment markets and the increase in the geographic market presence that this acquisition affords is, we believe, a strongly positive step forward in the maturity and internationalisation of our company.

We are now well into our second month of transitioning and integrating the ICC business and we are pleased with the progress to date. The justifications we had for this acquisition have so far been proven to be well founded. We continue to be very positive about the opportunities presented by the ICC business.

With the acquisition of ICC finalised and the integration activities well under way we remain committed to the pursuit of further acquisitions of compatible businesses which will expand our areas of influence and extend our software solution suite.

NOTE: Shareholders wishing to participate in the Dividend Reinvestment Plan need to have lodged the required DRP Notice with the Company’s Share Registry by no later than 5.00pm on the record date, 8 March 2013.

3. Net tangible assets per security

. Net tangible assets per security
Net tangible asset backing per ordinary security	Current period	Previous corresponding period
	16.9 cents	16.3 cents

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4. Dividends

. Dividends
Three cent final dividend – year ended 30 June 2012 Three cent interim dividend - half-year ended 31 December 2012	Date of payment	Total amount of dividend
	28 September 2012	$4,759,264
	28 March 2013	$4,771,719

Amount per security

Amount per security
	Amount per security	Franked amount per security at 30% tax	Amount per security of foreign sourced dividend
Total dividend paid:Previous year (final) Previous year(interim)	3¢	100%	0¢
	3¢	33%	0¢

Total dividend on all securities paid during the half-year

Ordinary securities Total	December 2012 $A'000	December 2011 $A'000
	4,759	4,701
	4,759	4,701

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5. Details of dividend or distribution reinvestment plans in operation are described below:

A Dividend Reinvestment Plan has been established to provide shareholders with the opportunity to reinvest dividends in new shares rather than receiving cash. The directors may alter, suspend or terminate the terms of the Dividend Reinvestment Plan at any time.

The last date(s) for receipt of election notices for participation in the dividend or distribution reinvestment 8 March 2013 plan

6. The financial information provided in the Appendix 4D is based on the half year condensed financial report (attached).

7. Independent review of the financial report

The financial report has been independently reviewed. The financial report is not subject to a modified independent auditors review statement.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

HANSEN TECHNOLOGIES LTD

ABN 90 090 996 455

AND CONTROLLED ENTITIES

FINANCIAL REPORT

FOR THE HALF-YEAR ENDED

31 DECEMBER 2012

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2012.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

HANSEN TECHNOLOGIES LTD AND CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED

31 DECEMBER 2012

TABLE OF CONTENTS

	Page
Directors' Report	3
Auditor’s Independence Declaration	4
Financial Report for the half year ended 31 December 2012
Condensed Consolidated Statement of Comprehensive Income	5
Condensed Consolidated Statement of Financial Position	6
Condensed Consolidated Statement of Changes in Equity	7
Condensed Consolidated Statement of Cash Flows	8
Notes to the Financial Statements	9-11
Directors' Declaration	12
Independent Auditor's Review Report	13-14

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Directors Report

The directors present their report together with the condensed financial report of the consolidated entity consisting of Hansen Technologies Ltd and the entities it controlled, for the half-year ended 31 December 2012 and independent review report thereon. This financial report has been prepared in accordance with Australian Accounting Standards.

Directors Names

The names of the directors in office at any time during or since the end of the half-year are:

Name Period of Directorship Mr David Trude Chairman since 2011 Mr Bruce Adams Director since 2000 Mr Andrew Hansen Managing Director since 2000 Mr David Osborne Director since 2006 Ms Melinda Osborne Appointed 15 October 2012 Mr Peter Berry Appointed 15 December 2012 Mr Kenneth Hansen Director since 2000. Ceased September 2012. Mr Phillip James Director since 2008. Resigned 31 October 2012.

The directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

Review of Operations

The consolidated profit of the group for the half-year after providing for income tax amounted to $3,841,442 representing a 46% decrease on the $7,104,784 in the previous corresponding period.

The Group operating result for the half year to 31 December 2012 comprised:

• Revenue of $26.8 million down 6% from the pcp

• EBITDA of $6.4 million being 37% less than the pcp.

The directors have declared a 3 cents per share interim dividend with 2 cents per share fully franked and I cent per share unfranked.

A quieter new business market generally coupled with delays in decision making on potential new projects and a consistently high Australian $ have all contributed to lower revenues so far this year than we were forecasting. As previously advised we have been at the same time investing in our delivery capacity and growing our USA operations. The combination of these factors has resulted in a disappointing first half year result.

We are however confident that the investment decisions we are making in personnel /offices around the world are well positioned and will deliver increased opportunities, improved performance and increased delivery capacity internationally.

Significant Changes in the State of Affairs

There have been no significant changes in the company's state of affairs during the half-year.

On 2 January 2013 the Company announced to the ASX it had acquired the Customer Central Pay TV billing and customer care product division of Irdeto Inc. with effect from 1 January 2013. Progress on the transition and integration of the acquired business has been strong and we continue to be positive about the opportunities represented by this acquisition.

Auditor's Declaration

A copy of the auditor’s declaration as required under section 307C of the Corporation Act 2001 in relation to the review for the half-year is provided with this report.

Rounding of Amounts to Nearest Thousand Dollars

The amounts contained in the report and in the financial report have been rounded to the nearest thousand dollars (where rounding is applicable) under the option available to the company under ASIC Class Order 98/0100. The company is an entity to which the Class Order applies.

Signed in accordance with a resolution of the directors:

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David Trude Director

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Andrew Hansen Director

Dated this 27th day of February 2013.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

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Auditor's Independence Declaration

To the Directors of Hansen Technologies Ltd.

In relation to the independent review for the half-year ended 31 December 2012, to the best of my knowledge and belief there have been:

(i) No contraventions of the auditor independence requirements of the Corporations Act 2001.

(ii) No contraventions of any applicable code of professional conduct.

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S SCHONBERG Partner

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PITCHER PARTNERS Melbourne

27 February 2013

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities

Condensed Consolidated Statement of Comprehensive Income For the Half Year Ended 31 December 2012

Revenue from ongoing operations Net foreign currency movements Other revenues Total revenue Employee expenses Amortisation expense Depreciation expense Property and operating rental expenses Contractor and consultant expenses Software licence expenses Hardware and software expenses Travel expenses Communication expenses Professional expenses Other expenses Capitalised research and development Total expenses Profit before income tax expense Income tax expense Profit after income tax from ongoing operations Other comprehensive income Movement in carrying value of foreign entities due to currency translation Other comprehensive income for the half-year Basic earnings (cents) per share for ongoing operations Total basic earnings (cents) per share Diluted earnings (cents) per share for ongoing operations Total diluted earnings (cents) per share Total comprehensive income attributable to members of the parent	Half-year to Dec	Half-year to Dec
	2012	2011
	$'000	$'000
	26,798 (85) 546	28,401 291 641
	27,259	29,333
	(14,992) (784) (727) (1,403) (397) (220) (1,999) (657) (266) (338) (1,106) 1,023	(13,990) (860) (731) (1,258) (405) (191) (1,444) (695) (329) (309) (1,102) 1,186
	(21,866)	(20,128)
	5,393 (1,552)	9,205 (2,100)
	3,841	7,105
	91	(359)
	91	(359)
	3,932	6,746
	2.4	4.5
	2.4 2.4	4.5 4.5
	2.4	4.5

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Financial Position As at 31 December 2012

Current Assets Cash and cash equivalents Receivables Other current assets Total Current Assets Non-Current Assets Plant, equipment & leasehold improvements Intangible assets Deferred tax assets Total Non-Current Assets Total Assets Current Liabilities Payables Current tax payable Provisions Unearned income Total Current Liabilities Non-Current Liabilities Provisions Total Non-Current Liabilities Total Liabilities Net Assets Equity Share capital Foreign currency translation reserve Options granted reserve Retained earnings Total Equity	Dec-12	Jun-12
	$'000	$'000
	23,253 7,969 1,913	23,967 9,208 2,662
	33,135	35,837
	3,974 29,844 559	4,554 29,593 535
	34,377	34,682
	67,512	70,519
	2,112 547 5,575 1,774	2,397 1,819 5,235 3,397
	10,008	12,848
	244	244
	244	244
	10,252	13,092
	57,260	57,427
	43,159 (2,947) 426 16,622	42,579 (3,038) 346 17,540
	57,260	57,427

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Changes in Equity For the Half Year Ended 31 December 2012

Consolidated Balance as at 1 July 2012 Profit for the half-year Movement in carrying value of foreign entities due to currency translation Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Options exercised Employee share options Capital issued under dividend reinvestment plan Dividends paid Total transactions with owners in their capacity as owners Balance as at 31 December 2012	Half-year to Dec	Half-year to Dec	Half-year to Dec	Half-year to Dec
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	42,579 0 0	(2,692) 0 91	17,540 3,841 0	57,427 3,841 91
	0	91	3,841	3,932
	231 0 349 0	0 80 0 0	0 0 0 (4,759)	231 80 349 (4,759)
	580	80	(4,759)	(4,099)
	43,159	(2,521)	16,622	57,260

Consolidated Balance as at 1 July 2011 Profit for the half-year Movement in FCTR due to return of share capital Movement in carrying value of foreign entities due to currency translation Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Capital reduction Options exercised Employee share options Capital issued under dividend reinvestment plan Dividends paid Total transactions with owners in their capacity as owners Balance as at 31 December 2011	Half-year to Dec	Half-year to Dec	Half-year to Dec	Half-year to Dec
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	49,669 0 0 0	(2,432) 0 1,360 (359)	5,604 7,105 (1,360) 0	52,841 7,105 0 (359)
	0	1,001	5,745	6,746
	(8,500) 186 0 618 0	0 0 41 0 0	8,500 0 0 0 (4,701)	0 186 41 618 (4,701)
	(7,696)	41	3,799	(3,856)
	41,973	(1,390)	15,148	55,731

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Cash Flows For the Half Year Ended 31 December 2012

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Cash Flows For the Half Year Ended 31 December 2012
Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Borrowing costs Income tax paid Net cash provided by operating activities Cash flows from investing activities Payment for plant and equipment Payment for capitalised research and development Net cash used in investing activities Cash flows from financing activities Proceeds from options exercised Dividends paid net of dividend re-investment Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of half-year Cash and cash equivalents at end of the half-year	Half-year to Dec
	2012	2011
	$'000	$'000
	30,799 (23,807) 496 (1) (2,849)	29,547 (21,721) 526 (6) (3,001)
	4,638	5,345
	(150) (1,023)	(1,001) (1,186)
	(1,173)	(2,187)
	165 (4,344)	186 (4,083)
	(4,179)	(3,897)
	(714) 23,967	(739) 21,364
	23,253	20,625

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Notes to the Half-Year Financial Statements 31 December 2012

1 Basis of Preparation of the Half-Year Financial Report

This half-year financial report does not include all the notes of the type usually included in an annual financial report.

It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2012 and any public announcements made by Hansen Technologies Limited during the half-year in accordance with any continuous disclosure obligations arising under the Corporations Act 2001 .

The half-year financial report was authorised for issue by the directors as at the date of the directors' report.

(a) Basis of preparation

This general purpose half-year financial report has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

The half-year financial report has been prepared under the historical cost convention, as modified by revaluations to fair value for certain classes of assets as described in the accounting policies.

The accounting policies applied in this half-year financial report are consistent with those of the annual financial report for the year ended 30 June 2012 and the corresponding half-year.

(b) Summary of the significant accounting policies

All accounting policies applied in this half-year financial report are the same as those used in the annual financial report for the year ended 30 June 2012.

(c) Rounding amounts

The company is of a kind referred to in ASIC Class Order CO 98/0100 and in accordance with that Class Order, amounts in the financial statements have been rounded off to the nearest thousand dollars, or in certain cases, to the nearest dollar.

2 Dividends

Dividends paid during the half-year:

• 3 cent final dividend paid 28 September 2012

• 3 cent final dividend paid 27 September 2011

Proposed dividend not recognised at the end of the half-year:

• 3 cent interim dividend (2 cents fully franked, 1 cent unfranked)

• 3 cent interim dividend (1 cent fully franked, 2 cents unfranked)

Half-year to Dec	Half-year to Dec
2012	2011
$'000	$'000
4,759	4,701
4,759	4,701
4,772	4,721

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Number of ordinary shares on issue Movement in ordinary shares on issue Beginning balance Dividend re-investment plan Options exercised Ending balance	Half-year to Dec	Half-year to Dec
	2012	2011
	No.	No.
	159,057,313	157,375,848
	158,072,120 415,193 570,000	156,197,163 678,685 500,000
	159,057,313	157,375,848

3 Segment Information

Inter-segment pricing is determined on an arm's length basis. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise incomeearning assets and revenue, and corporate assets and expenses.

Business Segments

The consolidated entity comprises the following main business segments, based on the consolidated entity's management reporting system:

Billing : Represents the sale of billing applications and the provision of consulting services in regard to billing systems.

IT Outsourcing : Represents the provision of various IT outsourced services covering facilities management, systems and operations support, network services and business continuity support.

Other : Represents software and service provision in superannuation administration.

Half-year 2012 Segment revenue Total segment revenue Segment revenue from external source Segment result Total segment result Segment result from external source Interest revenue Interest expense Depreciation & amortisation Realised / Unrealised FX Other Profit before income tax	Half-year to Dec 2012	Half-year to Dec 2012	Half-year to Dec 2012	Half-year to Dec 2012
	Billing	IT Outsourcing	Other	Total
	$'000	$'000	$'000	$'000
	20,458	4,590	1,751	26,798
	20,458	4,590	1,751	26,798
	3,480	1,804	630	5,914
	3,480	1,804	630	5,914
				496 (1) (436) (85) (495)
				5,393

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Half-year 2011 Segment revenue Total segment revenue Segment revenue from external source Segment result Total segment result Segment result from external source Interest revenue Interest expense Depreciation & amortisation Realised / Unrealised FX Other Profit before income tax	Half-year to Dec 2011	Half-year to Dec 2011	Half-year to Dec 2011	Half-year to Dec 2011
	Billing	IT Outsourcing	Other	Total
	$'000	$'000	$'000	$'000
	23,463	3,401	1,537	28,401
	23,463	3,401	1,537	28,401
	9,093	1,811	367	11,271
	9,093	1,811	367	11,271
				526 (6) (443) 291 (2,434)
				9,205

4 Contingent Liabilities

There have been no changes in contingent liabilities since 30 June 2012.

5 Subsequent Events

The directors of Hansen have declared a 3 cent per share partially franked dividend, payable to shareholders as of the record date of 8 March 2013, with payment to follow on 28 March 2013.

On the 2 January 2013 the Company announced to the ASX it had acquired the Customer Central Pay TV billing and customer care product division of Irdeto Inc. with effect from 1 January 2013.

There were no other material events subsequent to the period ending 31 December 2012 that have significantly affected or may significantly affect the consolidated entity.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd Directors Declaration

The directors declare that the financial statements and notes set out on pages 5 to 11 in accordance with the Corporations Act 2001 :

(a) Comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 , and other mandatory professional reporting requirements; and

(b) Give a true and fair view of the financial position of the consolidated entity as at 31 December 2012 and of its performance for the half-year ended on that date.

In the directors’ opinion there are reasonable grounds to believe that Hansen Technologies Ltd will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

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David Trude Director Melbourne 27 February 2013

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Andrew Hansen Director

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

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INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF HANSEN TECHNOLOGIES LTD

Report on the Half-Year Financial Report

We have reviewed the accompanying half ‑year financial report of Hansen Technologies Ltd and controlled entities, which comprises the condensed consolidated statement of financial position as at 31 December 2012, the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half‑year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the period's end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half‑year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the half ‑year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half ‑year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Ent ity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2012 and its performance for the half ‑year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Hansen Technologies Ltd and controlled entities, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half‑year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half ‑year financial report of Hansen Technologies Ltd and controlled entities is not in accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2012 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

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S SCHONBERG Partner

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PITCHER PARTNERS Melbourne

27 February 2013

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