QPR Software Oyj — Interim / Quarterly Report 2008

Apr 24, 2008

Disclosure 258141

QPR Software - Interim report (Q1 and Q3)

QPR SOFTWARE PLC´S NET SALES ROSE TO MEUR 1.754 IN THE FIRST QUARTER, OPERATING PROFIT WAS 5.2 % OF NET SALES

QPR SOFTWARE PLC INTERIM REPORT 24 April 2008 9.30 AM INTERIM REPORT JANUARY 1 - MARCH 31, 2008 QPR SOFTWARE PLC´S NET SALES ROSE TO MEUR 1.754 IN THE FIRST QUARTER, OPERATING PROFIT WAS 5.2 % OF NET SALES QPR Software Group's net sales grew 7.3% in the first quarter of 2008 and reached MEUR 1.754 (1.634). Net sales from international operations were MEUR 1.148 (1.120), and represented 65.5% (69%) of Group net sales. The United States, Russia, Japan, South Africa and Brazil were the Group´s largest export markets. Net sales in Finland grew 17.8% to MEUR 0.606 (0.514), mainly due to increased license sales from previous year. License sales and maintenance services increased their share of Group net sales to 88.5% (86.2%). In the reporting period, the Group delivered software and maintenance services to 43 countries. Operating profit grew to MEUR 0.091 (0.019) and was 5.2% of net sales. Profit before taxes was MEUR 0.090 and net profit for the period reached MEUR 0.078 (0.019). Earnings per share (diluted) were EUR 0.01 (0.00). QPR Software´s management estimates, based on business prospects and reseller forecasts, the Group´s net sales and operating profitto increase from the previous year. KEY FIGURES (EUR 1000) 1-3/ 1-3/ Change 1-12/ 2008 2007 -% 2007 Net sales 1 754 1 634 7.3 7 059 Operating profit 91 19 381.1 31 % of net sales 5.2 1.2 0.4 Profit before tax 90 34 162.8 64 Profit for the period 78 19 308.3 204 % of net sales 4.5 1.2 2.9 Earnings per share, EUR 0.01 0.00 0.02 EPS (diluted), EUR 0.01 0.00 0.02 Equity per share, EUR 0.16 0.17 0.18 Cash flow from operating activities 239 -47 438 Cash and cash equivalents 1 077 1 244 1 245 Net liabilities -708 -768 -876 Gearing, % -36.0 -36.4 -38.7 Equity ratio, % 53.1 52.0 57.0 Return on equity,% 14.8 3.3 8.4 Return of investment,% 14.7 5.1 2.5 OUTLOOK FOR YEAR 2008 QPR Software´s management estimates, based on business prospects and reseller forecasts, the Group´s net sales and operating profit to increase from the previous year. The nature of software license business of the QPR Group is seasonal. Seasonality of large software deals can affect significantly net sales and profit of one individual quarter. REPORTING This interim report complies with the accounting - and valuation principles of IFRS, but in its preparation all the requirements of IAS standard 34 has not been taken into consideration. This interim report is not audited. BUSINESS HIGHLIGHTS IN THE FIRST QUARTER Net sales outside Finland 2.5% and were MEUR 1.148 (1.120). Largest export markets in the reporting period were the United States, Russia, Japan, South Africa and Brazil. Sales growth in the United States was mainly attributable to a significant software license sale to an American, globally operating information technology corporation. QPR technology based solution deliveries to Japanese stock exchange companies for local securities market act (J-SOX) compliance continued, but the amount of deliveries declined from last year. Net sales in Finland grew 17.8% to MEUR 0.606 (0.514), mainly due to increased software license sales to private sector. Significant deliveries were made, among others, to Cargotec Group and Rautaruukki in the first quarter. Software license sales grew 10.3% in the first quarter and were MEUR 0.817 (0.741). Software license sales and maintenance services sales represented 88.5 % (86.2%) of QPR Software Group´s net sales. Professional service sales were 10.6 % lower than in equivalent period last year. NET SALES AND FINANCIAL PERFORMANCE 1-3/2008 In January-March, the Group´s net sales reached MEUR 1.754 (1.634). Exchange rate changes, mainly weaker U.S. dollar to euro, had a negative impact of MEUR 0.030 to net sales. The Group´s net sales are accrued in its entirety from software business, with the following break-down during the review period, (EUR 000): 1-3/ Share- 1-3/ Share- Change- 1-12/ 2008 % 2007 % % 2007 Software licenses 817 46.6 741 45.3 10.3 3 489 Maintenance services 735 41.9 668 40.9 10.1 2 764 Professional services 201 11.5 225 13.8 -10.6 806 Total 1 754 100.0 1 634 100.0 7.3 7 059 The geographical break-down of net sales was as follows, (EUR 1000): 1-3/ Share- 1-3/ Share- Change 2008 % 2007 % -% Domestic 606 34.5 514 31.5 17.8 International 1 148 65.5 1 120 68.5 2.5 Total 1 754 100.0 1 634 100.0 7.3 Operating profit was MEUR 0.091 (0.019) and it represented 5.2 % of net sales (1.2 %). Operating profit includes a one-time cost of 63 thousand euros, which was paid according to contract to previous CEO in termination of employment. Personnel costs were 10 % lower than in the previous year, due to business re-organization. Net profit was MEUR 0.078 (0.019), representing 4.5 % (1.2%) share from the Group´s total net sales. The retained losses, for which no entry has been made in the parent company's books as deferred tax assets, neither in the closure of the review period nor earlier, are approximately MEUR 1.0, corresponding to approximately MEUR 0.3 deferred tax assets. In the Group´s balance sheet as of March 31, 2008, the remaining amount of deferred tax is 497 thousand euros. Diluted earnings per share were EUR 0.01 (0.00). FINANCE AND INVESTMENTS The value of total assets was at the end of March 2008 MEUR 5.158 (5.876). The Group´s investments in non-current assets during the review period totaled to MEUR 0.036 (0.104). Cash flow from operating activities were positive MEUR 0.239 (-0.047). Cash and cash equivalents at the end of the review period were MEUR 1.077 (1.244). In the review period dividend was paid MEUR 0.368 (0.489). The Group´s interest bearing liabilities were MEUR 0,369 (0.476). Gearing, a ratio of net liabilities and equity was -36.0% (-36.3%). Return on investment was 14.7 % (5.1 %). Short-term liabilities contain deferred revenue in total of MEUR 1.451 (1.814). At the end of review period, quick ratio was 2.52 (2.9). At the end of the review period, the Group´s equity was MEUR 1.968 (2.111), and the Group´s equity ratio reached 53.1% (52.0%). Return on equity was 14.8% (3.3%). PERSONNEL At the end of the review period, the Group employed a total of 52 people (60). For incentive and commitment purposes, the Group has personnel bonus scheme covering the whole personnel and personnel stock option plan. PRODUCT DEVELOPMENT The amount of R&D expenses in the review period totaled to MEUR 0.386 (0.344), representing 21.9% (21.0%) of net sales. In the review period, R&D expenses have been capitalized for a total amount of 20 thousand euros (25). The depreciation period of capitalized R&D expenses is 4 years. Product development employed 15 (13) people at the end of the review period, corresponding to 29% of the total personnel. The core know-how of product development remains centralized in the own organization. Long-term co-operation continues with established subcontractors. In the review period, Research & Development activities focused on the development of a new version of the QPR product family, QPR 8, to be released in the second half of 2008. The new version will broaden the scope of the QPR software offering particularly in the area of risk identification, risk assessment and control activity management as well as improve the integration between QPR products and Microsoft Office. In January 2008, QPR also introduced language support for Persian. QPR offers an interactive, easy-to-use, ready-to-run software that combines process modeling and analysis (QPR ProcessGuide), business process automation (QPR WorkFlow), performance management and measurement (QPR ScoreCard), and business intelligence (QPR FactView) into one complete solution for risk management and compliance. With the help of QPR software solutions, organizations take control of risk and compliance issues, optimize business processes, improve operational performance and drive strategy throughout their organization in order to comply with rules and regulation as well as manage transition caused by strategic or regulatory demands. The software products developed by QPR are fast to implement and adapt to customers' evolving requirements and their chosen management methodology. QPR software applications are scalable from a single-user to an organization-wide management system, and integrate seamlessly to the customers' existing information systems. The QPR product family has been localized into 24 languages. DECISION MADE BY THE ANNUAL SHAREHOLDER´S MEETING AND GOVENANCE The Annual Shareholders' Meeting held on 12 March 2008 made the following decisions: The Annual Shareholders' Meeting confirmed the company's financial statements and the group's financial statements for the financial period 1 January - 31 December 2007 and released the Board of Directors and the Managing Directors from liability. The Annual Shareholders' Meeting approved the Board's proposal that a per-share dividend of EUR 0.03, a total of EUR 368,106.06, be paid for the financial year 2007. The dividend was paid to shareholders entered in the company's shareholder register, maintained by Finnish Central Securities Depository Ltd., on the record date of 17 March 2008. The dividend payment date was 26 March 2008. The Annual Shareholders' Meeting resolved that the Board of Directors consist of five (5) ordinary members. The Annual Shareholders' Meeting elected the following persons to members of the Board of Directors: Vesa-Pekka Leskinen, Jarmo Niemi, Asko Piekkola, Topi Piela and Jyrki Kontio. In its first meeting immediately following the Annual Shareholders' Meeting, the Board of Directors elected Vesa-Pekka Leskinen as Chairman of the Board. KPMG Oy Ab, Authorised Public Accountants, continues as QPR Software Plc's Auditors, and Authorized Public Accountant Sixten Nyman as the principle auditor. The Annual Shareholders' Meeting decided that the emoluments to the Chairman of the Board and the other Members of the Board shall be the same as in previous year. The Annual Shareholders' Meeting decided to authorize the Board of Directors to decide on an issue of new shares and conveyance of the own shares held by the company (share issue) either in one or in several occasions. In the share issue and/or based on the special rights a maximum of 4,000,000 new shares can be issued and a maximum of 250,000 own shares held by the company can be conveyed. The authorization shall be in force until the next Annual Shareholders' Meeting. The conditions of the authorization of the Board are available in their entirety on the investors section of the company's web site, and on the stock exchange release, published by the company on 12 March 2008. The Annual Shareholders' Meeting decided to authorize the Board of Directors to decide on an acquisition of own shares. Based on the authorization own shares may be acquired, either in one or in several occasions, the aggregate maximum amount of 250,000 shares. The authorization shall be in force until the next Annual Shareholders' Meeting. The conditions of the authorization of the Board are available in their entirety on the investors section of the company's web site, and on the stock exchange release, published by the company on 12 March 2008. The Annual Shareholders' Meeting decided to decrease the share premium reserve as shown in the balance sheet as per 31 December 2007 by the total amount of the share premium reserve of EUR 356 539.89 by transferring the decreased amount to the invested non-restricted equity fund of the company. After the decrease the amount of the share premium reserve shall be zero and it is abolished. The Annual Shareholders' Meeting further resolved to amend the decisions made on 1 October 2003 and on 15 March 2005 regarding the issue of option rights so that the subscription prices of the shares subscribed based on the option rights will be entered into the invested non-restricted equity fund. COMPANY SHARES AND TRADING IN COMPANY SHARES 1-3/2008 The Company's share capital at the end of the review period was EUR 1,359,089.93 divided into 12,355,363 shares, the book-counter value being EUR 0.11. At the end of review period, the Company had a total of 576 shareholders. In the review period, trading in company shares amounted to MEUR 0.150, i.e. an average of EUR 2,430 per trading day. Trading in shares totaled 177,075 shares, giving an average of 2,856 shares per trading day. Turnover in shares corresponds to 1.4% of the total shares and the average price was EUR 0.85 per share. At the end of the review period, the total market value of the company shares was MEUR 10.749 at the review period's closing price of EUR 0.87. The Group announced the following holding changes in the review period in accordance with chapter 2, section 10 of the security market act: -January 15 2008 the total holding of Jouko Antero Pelkonen and his controlled companies Electrosale Oy (company ID 0252032-5) and Pohjolan Rahoitus Oy (company ID 0486816-5) in QPR Software Plc has increased above one-tenth (1/10) to 10.098% of QPR Software Plc's share capital and votes. OWN SHARES QPR Software Plc has one share class. At the end of the review period the company held 85,161 of its shares with a total nominal value of EUR 9,367.71 and a total purchase price of EUR 67,353.85. The number of acquired own shares in the review period was 3 400. Own shares held by the company represent 0.69% of the Company´s capital stock. The purchase cost has been deducted from Shareholders´ equity in the consolidated financial statements. The Board of Directors has been granted by the Annual Shareholders Meeting of 12 March 2008, a share repurchases authorization, valid until next Annual Shareholders Meeting, to repurchase company shares in total of 250,000 shares at maximum. According to the authorization the company may acquire own shares in order to strengthen the company's capital structure, to be used as payment in corporate acquisitions or when the company acquires assets related to its business or as part of the company's incentive programs in a manner and to the extent decided by the Board of Directors, or to be transferred for other purposes or to be cancelled. STOCK OPTION PROGRAMS In the review period, the Company had two prevailing stock option programs. Each stock option issued under these stock option programs entitle to subscribe one new share in the company. At the end of the review period, based on stock option program 2003/III, in total of 7,500 shares have been subscribed, which subscriptions the Board of Directors has not yet approved as at the review date. At the end of first quarter, based on stock option program 2003/III, in total of 195.000 hitherto unconverted stock options have been issued, and 121,290 stock options are held by the Company's subsidiary. The subscription time will end December 31, 2008. Based on stock option program 2005/I, there are no more unconverted stock options as on 31 March 2008. QPR Software Plc`s subsidiary held still 150,401 stock options, but their subscription period has ended. At the end of the review period, in total of 195,000 hitherto unconverted stock options have been issued, and in addition, in total of 121,290 stock options were in the possession of the Company's subsidiary, to be subscribed by the present and future employees and management. CORPORATE GOVERNANCE QPR Software Plc complies with the Helsinki Exchanges' Guidelines for Insiders issued on 1 January 2006 and the Recommendation on Corporate Governance issued on 1 July 2004. The Company's Corporate Governance Statement is available in the Investor sector of the Company's website. http://www.qpr.com. Also, available in the investor pages is further information, such as, administration of insiders register, public insiders register, list of major shareholders, articles of association, charter of the Board, description of how internal control and internal audit is organized, introductions of the members of the Board and Executive Management Team, and the information published by the company to the Helsinki Stock Exchanges in the financial year. OTHER EVENTS IN THE REVIEW PERIOD The Board of Directors appointed B.A., MBA Jari Jaakkola, 46, as new Chief Executive Officer. Jaakkola has worked as SVP, Business Operations for QPR Software since August 2006. QPR Software Plc´s Chief Executive Officer Matti Kanninen resigned from his position as of 3 January, 2008. As of 3 January, QPR Software´s Executive Management Teams comprises of CEO Jari Jaakkola (chairman), VP, Channel Sales (Asia& Africa) Antti Ainasoja, VP, Channel Sales (Europe & Americas) Maija Erkheikki, VP, Sales (Finland) Matti Erkheikki, VP, Marketing & Solutions Development Teemu Lehto, CFO Ritva Lindqvist and VP, Products & Support Tony Virtanen. RISKS AND FACTORS OF UNCERTAINTY IN THE NEAR FUTURE In the financial statements of 2007 the risks related to the company's activities have been reported in more detail. It is the duty of the Board of Directors to approve QPR's risk management and reporting procedures, and to monitor the adequacy, appropriateness and effectiveness of the company's risk management. Risk management relating to company's business operations is supported by continuous development of the company´s operating processes. Reasonable credit risk concerning individual business partners is characteristic to any international business. QPR seeks to limit this credit risk by continuous monitoring of receivables and credit limits. QPR Software´s current trade and other receivables decreased 22% to MEUR 2.844 (3.658), compared to equivalent period last year, as a result of tightened payment terms issued and implemented by QPR in previous year. The management of QPR estimates that the company´s credit loss risk is on customary and reasonable level. FUTURE OUTLOOK QPR Software´s management estimates, based on business prospects and reseller forecasts, the Group´s net sales and operating profit in 2008 to increase from the previous year. The nature of the software license business of the QPR Group is seasonal. Seasonality of large software deals can affect significantly net sales and profit of one individual quarter. QPR Software aims to focus its resources this year especially to accelerate positive development in Risk Management and Compliance software solution sales. Risk Management and Compliance software solution sales already showed strong growth in 2007 in QPR´s international business. Closer co-operation with the company´s largest resellers will be reinforced in international channel management this year. In marketing, the company prioritizes web marketing and solutions development, and increases their weight significantly in marketing mix from previous years. QPR Software has also decided to step up investments in utilization of Microsoft´s software platforms when offering its customers and channel partners comprehensive solutions that are closely linked to QPR´s own products. QPR believes that this co- operation with Microsoft will result in efficiency improvements in marketing and product development. In the last quarter of 2007, QPR achieved Microsoft Gold Certified Partner status. The Company focuses its development resources on ready-to-run software products for risk management and compliance, business performance management and measurement, and business process modeling and analysis. New product versions will be released to increase value of the software to customers by broadening the solution scope and by introducing functionality enhancements especially in the area of risk management and compliance. In addition, the Company continues to follow the developments in the re-structuring of software industry, and aims actively to participate in it. QPR SOFTWARE PLC'S FINANCIAL INFORMATION IN 2008 In 2008, QPR Software Plc will publish its financial information as follows: Interim Report 1-6/2008 Thursday, July 24, 2008 Interim Report 1-9/2008 Thursday, October 23, 2008 ENCLOSURES: TABLE PART GROUP INCOME STATEMENT 1.1.-31.3.2008 (EUR 1000) 1-3/2008 1-3/2007 1-12/2007 Net sales 1 754 1 634 7 059 Other operating income 11 19 46 Material and services 259 73 689 Employee benefits expenses 943 1 044 4 048 Depreciation 70 42 214 Other operating expenses 402 476 2 123 OPERATING PROFIT 91 19 31 -Financial income and expenses -2 15 33 PROFIT BEFORE TAX 90 34 64 Income tax expenses -11 -15 140 PROFIT FOR THE PERIOD 78 19 204 Sharing of profit: To the parent company´s shareholders share 78 19 204 Earnings per share (diluted),EUR 0.01 0.00 0.02 Earnings per share, EUR 0.01 0.00 0.02 GROUP´S BALANCE SHEET 31.3.2008 ASSETS (EUR 1000) 31.3.2008 31.3.2007 31.12.2007 NON-CURRENT ASSETS Tangible assets 300 330 321 Other intangible assets 435 250 448 Trade and other receivables 5 75 5 Deferred tax assets 497 318 502 NON-CURRENT ASSETS 1 237 974 1 276 CURRENT ASSETS Trade and other receivables 2 844 3 658 2 570 Cash and cash equivalents 1 077 1 244 1 245 CURRENT ASSETS 3 921 4 902 3 815 TOTAL ASSETS 5 158 5 876 5 091 EQUITY AND LIABILITIES (EUR 1000) EQUITY Share capital 1 359 1 346 1 359 Share premium 231 195 231 Reserve fund 21 22 21 Translation differences -73 -54 -70 Treasure shares -67 0 -65 Retained earnings 497 602 787 EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT 1 968 2 111 2 264 TOTAL EQUITY 1 968 2 111 2 264 NON-CURRENT LIABILITIES Interest-bearing liabilities 182 285 182 TOTAL NON-CURRENT LIABILITIES 182 285 182 CURRENT LIABILITIES Accounts payable and other payables 2 821 3 289 2 458 Interest-bearing liabilities 187 191 187 TOTAL CURRENT LIABILITIES 3 008 3 480 2 645 LIABILITIES 3 190 3 765 2 827 TOTAL EQUITY AND LIABILITIES 5 158 5 876 5 091 GROUP CASH FLOW STATEMENT (EUR 1000) 1.1.-31.3. 1.1.-31.3. 1.1.-31.12. 2008 2007 2007 CASH FLOW FROM OPERATING ACTIVITIES Profit for the period 78 19 204 Adjustments for the profit Depreciation 70 42 214 Non-cash transactions 14 17 -140 Changes in working capital Changes in trade and other receivables -285 -576 560 Changes in accounts payable and 370 439 -401 other liabilities Interest expense and other financial -2 -2 -8 expenses Interest income and other financial 0 17 41 income Income taxes paid -6 -3 -32 Net cash from operating activities 239 -47 438 CASH FLOW FROM INVESTING ACTIVITIES Purchases of tangible assets -14 -38 -140 Purchases of intangible assets -23 -66 -324 Net cash used in investing activities -36 -104 -464 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of share capital 0 0 49 Repayments of financial leases 0 0 -108 Purchase of own shares -3 0 -65 Dividends paid -368 -489 -489 Net cash used in financing activities -371 -489 -613 Net change in cash and cash -168 -640 -639 equivalents Cash and cash equivalents in the 1 245 1884 1 884 beginning of period Cash and cash equivalents in the 1 077 1244 1 245 end of period GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´EQUITY 1.1.-31.3.2008 (EUR 1.000) Share- Share Share Trans- Treasure Retained Total holders´issue premium lation shares earnings equity differ. EQUITY 1 359 0 253 -70 -65 786 2 264 1.1.2008 Dividends paid -368 -368 Translation differences -3 -3 Purchase of own shares -3 -3 Profit for the period 78 78 CHANGE IN SHAREHOLDERS´ EQUITY 1-3 0 0 0 -3 -3 -290 -296 EQUITY 31.3.2008 1 359 0 253 -73 -67 496 1 968 GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´EQUITY 1.1.-31.3.2007 (EUR 1.000) Share- Share Share Trans- Retained Total holders´ issue premium lation earnings equity differ. EQUITY 1.1.2007 1 346 0 217 -49 1 072 2 586 Dividends paid -489 -489 Translation differences -5 -5 Profit for the period 19 19 CHANGE IN SHAREHOLDERS´ EQUITY 1-3 0 0 0 -5 -470 -475 EQUITY 31.3.2007 1 346 0 217 -54 602 2 111 GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´EQUITY 1.1.-31.12.2007 (EUR 1.000) Share- Share Share Trans- Treasure Retained Total holders´issue premium lation shares earnings equity EQUITY 1.1.2007 1 346 0 217 -49 0 1 072 2 586 Shares issued 13 13 Issue premium 36 36 Dividends paid -489 -489 Translation -21 -21 differences Purchase of own shares -65 -65 Profit for the period 204 204 CHANGE IN SHAREHOLDERS´ EQUITY 1-12 13 0 36 -21 -65 -286 -322 EQUITY 31.12.2007 1 359 0 253 -70 -65 786 2 264 GROUP COMMITMENTS AND CONTINGENT LIABILITIES (EUR 000) 31.3.2008 31.12.2007 Commitments and contingent liabilities Lease liabilities 408 460 Total 408 460 Current lease liabilities Lease liabilities maturing during one year 28 30 Leasing liabilities maturing 2-5 years 15 21 Total 43 51 Total commitments and contingent liabilities 451 511 GROUP INCOME STATEMENT PER QUARTER 1-3/ 1-3/ 4-6/ 7-9/ 10-12/ (EUR 1000) 2008 2007 2007 2007 2007 Net sales 1754 1634 2225 1205 1995 Other operating income 11 19 17 7 3 Material and services 259 73 383 82 151 Employee benefits expenses 943 1044 1059 879 1065 Depreciation 70 42 48 56 67 Other operating expenses 402 476 518 488 642 OPERATING PROFIT 91 19 233 -293 72 Financial income/expense -2 15 8 4 6 PROFIT BEFORE TAX 89 34 241 -289 78 Income tax expenses -11 -15 -58 68 144 PROFIT FOR THE PERIOD 78 19 183 -221 222 GROUP KEY FIGURES Key figures illustrating the financial development of the Group EUR (000) 1-3/ 1-3/ 2007 2008 2007 Net sales 1754 1 634 7 059 Net sales growth,% 7.3 -2.2 2.3 Operating profit 91 19 31 % of net sales 5.2 1.2 0.4 Profit or loss before tax 90 34 64 % of net sales 5.1 2.1 0.9 Profit for the period 78 19 204 % of net sales 4.5 1.2 2.9 Return on equity,% 14.8 3.3 8.4 Return of investment,% 14.7 5.1 2.5 Interest bearing liabilities 369 476 369 Cash and cash equivalents 1 077 1 244 1 245 Net liabilities -708 -768 -876 Equity 1968 2 111 2 264 Gearing,% -36.0 -36.4 -38.7 Equity ratio,% 53.1 52.0 57.0 Total balance sheet 5 158 5 876 5 091 Investments in non-current assets 36.5 104 463 % of net sales 2.1 6.4 6.6 Research and development expenses 384 344 1 502 % of net sales 21.9 21.0 21.3 Average number of personnel 55 59 58 Personnel at the beginning of 58 59 58 period Personnel at the end of period 52 60 58 Earnings per share, EUR 0.01 0.00 0.02 Earnings per share (diluted),EUR 0.01 0.00 0.02 Equity per share, EUR 0.16 0.17 0.18 CALCULATION OF KEY INDICATORS: Return on equity (ROE), % (counted on yearly level): Profit for the period x 100 __________________________________________________ Shareholders' equity + minority interest (average) Return on investment (ROI), % (counted on yearly level): Profit before taxes + interest and other financialexpenses x 100 ________________________________________________________________ Balance sheet total - non-interest bearing liabilities (average) Equity ratio, %: Shareholders' equity x 100 ______________________________________ Balance sheet total - deferred revenue Gearing, %: Interest bearing liabilities - cash and cash equivalents x 100 ______________________________________________________________ Shareholders' equity Earnings per share, euro: Profit for period _______________________________________________________________ Adjusted number of shares over the financial year (average) Equity per share, euro: Shareholders' equity _____________________________________________________________ Adjusted number of shares at the end of the financial period Dividend per share, euro: Total dividend paid ____________________________________________________________ Adjusted number of shares at the end of the financial period Market value of share capital: (Number of shares - own shares) x share price at the end of the financial period Turnover of shares, % of share capital: Turnover (number of shares) x 100 _______________________________________ Number of shares issued (average) Quick ratio: Current assets - inventories _________________________________________ Current liabilities - advances received MAJOR SHAREHOLDERS 31.3.2008 Number of shares %-share Shares and votes Ulkomarkkinat Oy 1 600 000 12.95 % Jouko Pelkonen 421 000 3.41 % Pohjolan Rahoitus Oy 595 000 4.82 % Electrosale Oy 322 000 2.61 % Total 1 338 000 10.83 % Vesa-Pekka Leskinen 851 400 6.89 % Kauppamainos Oy 475 170 3.85 % Total 1 326 570 10.74 % Alesco S.A 1 300 000 10.52 % Autocarrera Oy Ab 1 235 917 10.00 % Kari Junkkonen 512 016 4.14 % Fortel Invest Oy 425 326 3.44 % SR EQ Technology 376 000 3.04 % Päivi Marttila 293 072 2.37 % Edina Oy 33 900 0.27 % Total 326 972 2.65 % Asko Piekkola 316 438 2.56 % Jaakkola Jari 220 000 1.78 % Value FM Oy 55 000 0.45 % Total 275 000 2.23 % Esa Pääkkönen 246 054 1.99 % Veli-Mikko Leskinen 232 530 1.88 % Matti Kanninen 199 107 1.61 % Tony Virtanen 172 112 1.39 % Teemu Lehto 153 654 1.24 % Kai-Erik Becker 140 000 1.13 % Other shareholders 2 179 667 17.64 % Total 12 355 363 100.00 % Helsinki 24 April 2008 QPR SOFTWARE PLC The Board of Directors For more information, please contact: QPR SOFTWARE PLC Jari Jaakkola, CEO Tel. +35840 502 6397 jari.jaakkola@qpr.com http://www.qpr.com