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Techstep ASA Interim / Quarterly Report 2010
3770_rns_2010-08-20_af8f154f-45d1-4f54-b63f-f2d1f651f2e0.pdf
Interim / Quarterly Report
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Birdstep Technology ASA Second Quarter Interim Report
Torbjörn Sandberg
CEO & President
birdstep TECHNOLOGY
Q2 2010 in brief
- Q2 revenues of 20,2 million (24,1 million)
- Cash flow of -9,8 (-10,8 million)
- EBITDA of -7,2 million (-6,1 million)
- EasyConnect group wide frame agreement with a leading European operator
- Two EasyConnect agreements after the close of Q2
- Service provider in North America
- Virgin Media (Virgin Mobile) in the UK
- EasyConnect activations reached 527K in Q2 2010 (458K in Q2 2009)
- Divesture of Raima expected to be completed end of August
- Exploring possibilities to divest non-core investments and business
- Moving towards profitability by the end of this year
brdstep TECHNOLOGY
Birdstep Technology ASA
- Headquartered in Oslo
- Listed on Oslo Stock Exchange since 2002 (BIRD)
- 102 employees
- whereof 14 in Orbyte and 18 in Raima
- Offices in Norway, Sweden, Finland, UK and the United States
- Organisation
- Birdstep Technology
- Orbyte
- Raima (under divesture)
birdstep TECHNOLOGY
Income statement
| 1.4 - 30.6 | 1.1 - 31.06 | Full Year | |||
|---|---|---|---|---|---|
| Amounts in NOK million | 2010 1) | 2009 1) | 2010 1) | 2009 1) | 2009 |
| Operating revenue | 20,2 | 24,1 | 40,2 | 44,7 | 89,1 |
| Total revenue | 20,2 | 24,1 | 40,2 | 44,7 | 89,1 |
| Cost of sales | -2,2 | -2,9 | -4,0 | -5,2 | -9,8 |
| Salaries and wages | -16,8 | -17,9 | -34,9 | -32,7 | -63,8 |
| Other operating expenses | -8,4 | -9,4 | -16,8 | -18,0 | -35,4 |
| EBITDA | -7,2 | -6,1 | -15,5 | -11,3 | -19,9 |
| Amortization and write-downs | -1,8 | -1,9 | -3,7 | -3,8 | -7,5 |
| Ord. depreciation | -1,3 | -1,0 | -2,5 | -2,1 | -4,5 |
| Operating profit (EBIT) | -10,3 | -9,0 | -21,7 | -17,1 | -31,9 |
| Share of associated company | 0,6 | -0,2 | 0,6 | -0,6 | -0,4 |
| Financial items, net | 1,2 | 1,4 | 0,1 | -0,6 | -0,5 |
| Income before tax | -8,5 | -7,8 | -21,0 | -18,3 | -32,8 |
| Taxes | - | - | - | - | - |
| Profit (loss) from continued operations | -8,5 | -7,8 | -21,0 | -18,3 | -32,8 |
| Profit after tax from discontinued operations | -9,6 | -1,2 | -8,4 | -3,8 | -4,1 |
| Result from discontinued operations | -9,6 | -1,2 | -8,4 | -3,8 | -4,1 |
| Profit/(loss) of the year | -18,1 | -9,0 | -29,4 | -22,1 | -36,9 |
| Other comprehensive income | |||||
| Currency translation effect | 2,1 | 0,8 | 2,8 | -4,7 | -16,0 |
| Total comprehensive income | -6,4 | -6,9 | -18,2 | -23,0 | -48,8 |
| Attributable to: | |||||
| Equity holder of the parent company | -6,4 | -6,9 | -18,2 | -23,0 | -48,8 |
| Total comprehensive income | -6,4 | -6,9 | -18,2 | -23,0 | -48,8 |
| Earnings and diluted earnings per share (NOK) | -0,09 | -0,10 | -0,26 | -0,32 | -0,69 |
Page • 4
1) Unaudited figures
birdstep TECHNOLOGY
Cash flow
| Amounts in NOK million | 1.4 - 30.6 | 1.1 - 31.06 | Full Year | ||
|---|---|---|---|---|---|
| 2010 1) | 2009 1) | 2010 1) | 2009 1) | 2009 | |
| Profit/loss before taxes - continued operations | -8,5 | -7,8 | -21,0 | -18,3 | -32,8 |
| Profit/loss before taxes - discontinued operations | -9,6 | -1,2 | -8,4 | -3,8 | -4,1 |
| Profit/loss before taxes - total | -18,1 | -9,0 | -29,4 | -22,1 | -36,9 |
| Write down of intangible assets | 5,8 | - | 5,8 | - | - |
| Ordinary depreciation and amortization | 3,2 | 3,0 | 6,4 | 6,1 | 12,4 |
| Options fair value | 0,5 | 0,1 | 1,0 | 0,2 | 0,4 |
| Change in accounts receivable | 2,0 | 3,8 | 1,9 | 1,4 | 18,1 |
| Change in accounts payable | -1,6 | 1,9 | -1,0 | -2,9 | -9,5 |
| Change in other balance sheet items | -0,2 | -8,8 | -0,7 | -6,0 | -8,5 |
| Net cash flow from operating activities | -8,4 | -9,1 | -16,0 | -23,3 | -24,0 |
| Investments in intangible assets | -2,0 | - | -2,8 | - | - |
| Investments in operating assets | - | 0,2 | -0,2 | 0,5 | -1,0 |
| Net cash flow from investment activities | -2,0 | 0,2 | -3,0 | 0,5 | -1,0 |
| Finance activities | 0,1 | - | 0,3 | - | -1,0 |
| Net cash flow from financing activities | 0,1 | - | 0,3 | - | -1,0 |
| Currency effect on cash | 0,5 | -1,8 | 0,7 | -3,2 | -3,3 |
| Net cash flow | -9,8 | -10,8 | -18,0 | -26,0 | -29,3 |
| Cash at beginning of period* | 47,5 | 69,8 | 55,7 | 85,0 | 85,0 |
| * whereof cash included in Asset held for sale | 2,0 | 4,4 | 5,7 | 5,8 | 5,8 |
| Cash at end of period* | 37,7 | 59,0 | 37,7 | 59,0 | 55,7 |
| * whereof cash included in Asset held for sale | 3,1 | 4,0 | 3,1 | 4,0 | 5,7 |
Page • 5
1) Unaudited figures
birdstep TECHNOLOGY
Balance sheet
| Amounts in NOK million | 30 June | 31 Dec | |
|---|---|---|---|
| 2010 1) | 2009 1) | 2009 | |
| Assets | |||
| Intangible fixed assets | 111,9 | 115,9 | 113,5 |
| Other fixed assets | 0,7 | 1,1 | 0,8 |
| Investments | 6,8 | 7,2 | 6,5 |
| Total non - current assets | 119,4 | 124,3 | 120,8 |
| Short term receivables | 27,3 | 41,0 | 27,5 |
| Asset of disposal group classified as held for sale | 5,1 | 13,1 | 14,0 |
| Cash and cash equivalents | 34,6 | 55,0 | 50,0 |
| Total current assets | 67,0 | 109,1 | 91,5 |
| Total assets | 186,4 | 233,5 | 212,3 |
| Equity and liabilities | |||
| Equity | 146,7 | 186,5 | 172,2 |
| Total equity | 146,7 | 186,5 | 172,2 |
| Liabilities, long term | 7,8 | 8,1 | 7,9 |
| Total non - current liabilities | 7,8 | 8,1 | 7,9 |
| Liabilities of disposal group classified as held for sale | 4,5 | 3,7 | 4,6 |
| Liabilities, short term | 27,4 | 35,2 | 27,6 |
| Total current liabilities | 31,9 | 38,9 | 32,2 |
| Total equity and liabilities | 186,4 | 233,5 | 212,3 |
| 1) Unaudited figures |
birdstep TECHNOLOGY
Birdstep Technology Q2 highlights
EasyConnect & SafeMove
- Revenues of 13,1 million in Q2 (16,6)
- EasyConnect activations reached 527K in Q2 2010 (458K)
- EasyConnect group wide frame agreement with a leading European operator
- EasyConnect Inside agreement with North American service provider after close of Q2
- EasyConnect Advanced selected by Virgin Media (Virgin Mobile) in the UK after close of Q2
- Growing sales pipeline for both EasyConnect and SafeMove
| Amounts in NOK million | 1.4 - 30.6 | 1.1 - 31.06 | Full Year | ||
|---|---|---|---|---|---|
| 2010 1) | 2009 1) | 2010 1) | 2009 1) | 2009 | |
| EasyConnect | |||||
| Revenue | 9,0 | 10,3 | 17,0 | 20,0 | 44,1 |
| EBITDA | -4,4 | -3,2 | -10,4 | -4,6 | -6,4 |
| SafeMove | |||||
| Revenue | 4,1 | 6,3 | 10,1 | 11,5 | 20,3 |
| EBITDA | -4,3 | -4,0 | -7,6 | -8,1 | -15,5 |
| 1) Unaudited figures |
birdstep TECHNOLOGY
EasyConnect customer wins
EasyConnect Advanced
Birdstep signed a group wide 3 year frame agreement for EasyConnect with a leading European operator.
For the initial launch country only, Birdstep estimates the revenue for the first 2 years to amount to 8 million NOK.
EasyConnect Inside
Birdstep signed an agreement for EasyConnect Inside with a North American service provider.
Birdstep estimates the revenue for the first 18 months to amount to 3.5 million NOK.
EasyConnect Advanced
EasyConnect Advanced selected by Virgin Media (Virgin Mobile) in the UK.
Birdstep estimates the revenue for the first 24 months to amount to 2 million NOK.
birdstep TECHNOLOGY
Page • 9
EasyConnect sales pipeline
- Current opportunities in negotiations
- Current qualified prospects in process
- Current leads & opportunities
EasyConnect activations (excl. EasyConnect Inside)
birdstep TECHNOLOGY
Orbyte Q2 highlights
Orbyte
- Revenues of 7,1 million in Q2 (7,5 million)
- Service contract with Middle Eastern operator
- Business system delivery contract with TeliaSonera
| Amounts in NOK million | 1.4 - 30.6 | 1.1 - 31.06 | Full Year 2009 | ||
|---|---|---|---|---|---|
| 2010 1) | 2009 1) | 2010 1) | 2009 1) | ||
| Orbyte | |||||
| Revenue | 7,1 | 7,5 | 13,1 | 13,2 | 24,6 |
| EBITDA | 2,0 | 1,8 | 3,6 | 2,7 | 4,7 |
1) Unaudited figures
birdstep TECHNOLOGY
Summary
- Fast growing sales pipeline with successful international sales team
- Achieving 2010 EasyConnect customer growth targets – two contracts per quarter
- Exploring possibilities to divest non-core investments and business
- Moving towards profitability by end of this year and fully expecting to be profitable for 2011
brdstep TECHNOLOGY
Page • 13
Thank you!
Questions?