Tecnotree Corporation Financial Review 5 th January, 2014 at 8.30 am EET
Tecnotree is a global supplier of telecom IT solutions, providing products and services for charging, billing, customer care, and messaging and content services. The company’s product portfolio comprises virtually the full range of business management systems for telecom operators, with standard solutions for fixed networks, mobile services and broad band and for managing subscriptions, services and cash flows for prepaid and post-paid customers. Tecnotree has a strong footing especially in developing markets. Significant improvement in profitability in 2013 Fourth quarter
- Fourth quarter net sales were EUR 20.0 (22.4) million.
- The adjusted operating result for the quarter was EUR 3.6 (-0.3) million and the result was EUR 0.5 (-6.3) million.
- The order book at the end of the period stood at EUR 45.0 (31 December 2012: 54.2) million.
- Fourth quarter cash flow after investments was EUR -0.3 (5.5) million.
- Earnings per share were EUR 0.00 (-0.05).
- Tecnotree announced new EUR 7.7 million orders received in the Middle East region
Full year 2013
- Net sales for the review period increased 0.7 per cent from the corresponding period in the previous year to EUR 73.9 (73.4) million.
- The adjusted operating result improved EUR 8.2 million from the previous year to EUR 3.3 (-4.9) million. The operating result was EUR 1.6 (-12.4) million and the result for the period EUR -2.5 (?17.0) million.
- Cash flow after investments for the review period was EUR -7.3 (-0.8) million and the company’s cash and cash equivalents were EUR 6.6 (31 December 2012: 11.3) million.
- Earnings per share were EUR -0.02 (-0.16).
- On 30 August 2013 Tecnotree reached agreement with its bank on renewing its loan financing and on additional financing of EUR 5 million. The agreement is in force until 2018.
| KEY FIGURES | 10-12/ 2013 | 10-12/ 2012 | 1-12/ 2013 | 1-12/ 2012 |
| Net sales, MEUR | 20.0 | 22.4 | 73.9 | 73.4 |
| Adjusted operating result, MEUR 1 | 3.6 | -0.3 | 3.3 | -4.9 |
| Operating result, MEUR | 3.6 | -3.7 | 1.6 | -12.4 |
| Result before taxes, MEUR | 3.7 | -3.1 | 4.1 | -13.7 |
| Result for the period | 0.5 | -6.3 | -2.5 | -17.0 |
| Earnings per share, basic, EUR 2, 3 | 0.00 | -0.05 | -0.02 | -0.16 |
| Order book, MEUR | 45.0 | 54.2 | ||
| Cash flow after investments, MEUR | -0.3 | 5.5 | -7.3 | -0.8 |
| Change in cash and cash equivalents, MEUR | -0.3 | 7.8 | -3.8 | 4.8 |
| Cash and cash equivalents, MEUR | 6.6 | 11.3 | ||
| Equity ratio % 3 | 30.3 | 40.2 | ||
| Net gearing % 3 | 113.4 | 50.0 | ||
| Personnel at end of period | 1,059 | 1116 |
1 Adjusted operating result = operating result before R & D capitalisation, amortisation of this and one-time costs.“Result analysis” is presented in the financial report. 2 The key figure has been adjusted for the comparative periods to reflect the share issue. 3 The key figure has been corrected for the comparative periods, see note 4 in the financial report.
Unless otherwise stated, all figures presented below are for the reviewed period 1-12/2013 and the figures for comparison are for the corresponding period 1-12/2012. CEO Ilkka Raskinen : “The fourth quarter operating result improved considerably from the previous year to EUR 3.6 (-3.7) million. This is evidence of the increasing efficiency of the company’s operating activities as planned. The company’s dependence on long-term projects has declined significantly: in 2012 this revenue was EUR 31.8 million and in 2013 EUR 23.9 million. This means that ongoing service agreements and licence sales are playing an increasingly important role in net sales, which in turn improves profitability and reduces the amount of working capital tied up. We expect net sales to continue to increase in 2014 and the profitability of operations to improve. A clear goal for 2014 is to improve the cash flow. This will be achieved by reducing working capital and raising operating efficiency. The developing markets in Africa, South America and the Middle East continue to grow and remain the geographical focus for our growth.” Events after the end of period No significant events have occurred after the end of the period. Prospects in 2014 Tecnotree estimates that its net sales and operating result will improve from 2013. Variations in the quarterly figures will be considerable. Proposal concerning the result The Board of Directors proposes to the Annual General Meeting, that no dividend be paid for the financial year ended 31 December 2013, and that the parent company’s loss for the financial year, EUR 2,138,056.64, be covered by non-restricted equity reserves. In addition, losses for previous periods are proposed to be covered by EUR 1,690,237.98 of the non-restricted equity reserves. Financial information Tecnotree is holding a conference for analysts, investors and the media to announce its fourth quarter and full year results on 5 th February 2014 at 10.00 am in the Bulsa conference room at the Scandic Hotel Simonkenttä, Simonkatu 9, Helsinki. The financial review will be presented by CEO Ilkka Raiskinen and the conference will be held in Finnish. The material to be presented at the press conference will be available at www.tecnotree.com . Tecnotree’s financial statements and report of the Board of Directors will become publically available during week 10 at www.tecnotree.com . TECNOTREE CORPORATION Board of Directors FURTHER INFORMATION Ilkka Raiskinen, CEO, tel. +358 (0)45 311 3113 Tuomas Wegelius, CFO, tel. +358 400 433 228 DISTRIBUTION NASDAQ OMX Helsinki Ltd. Main media www.tecnotree.com About Tecnotree Tecnotree is a global provider of telecom IT solutions for the management of products, customers and revenue. Tecnotree helps communications service providers to transform their business towards a marketplace of digital services. Tecnotree empowers service providers to monetise on service bundles, provide personalised user experiences and augment value throughout the customer lifecycle. With over 1100 telecom experts, Tecnotree serves more than 100 service providers in over 70 countries. Tecnotree is listed on the main list of NASDAQ OMX Helsinki with the trading code TEM1V. For more information on Tecnotree, please visit www.tecnotree.com
