F-Secure Corporation
Financial statement release
February 1, 2013 at 9.00 a.m.
F-Secre Corporation - Interim Report January 1-December 31, 2012
Healthy cashflow and profitability, good operative progress
Highlights in Q4
- Total revenues grew by 0.4%, reaching 40.1 million (Q42011: 40.0m).
- Revenue in the operator channel grew by 1%, reaching 24.5 million (24.3m). Revenue growth came from PC and mobile Internet Security sales and Content Cloud license sales; decrease in Content Cloud project delivery revenues.
- EBIT was 7.4 million, representing 19% of revenues (6.5m,16% of revenues) without one-off costs of approximately 7 million due to restructuring in France
- EBIT including one-offs was 0.4 million, representing 1% of revenues (6.5m, 16% of revenues)
- Earnings per share was EUR 0.00 (0.03).
- Cash flow from operations was 7.8 million positive (7.1m)
- Negotiations related to restructuring in French subsidiary were concluded.
- In January 2013, F-Secure’s corporate business strategy was recognized as top-ranked by The Forrester Wave™, Endpoint Security report
- In January 2013, the award from AV-Test for Best Protection in the Home User category
Highlights in 2012
- Total revenues grew by 8%, reaching 157.2 million (2011:146m).
- Revenue in the operator channel grew by 12%, reaching 95.2 million (84.8m).
- EBIT was 27.3 million, representing 17% of revenues (23.6,16% of revenues) without one-off costs of approximately 7million due to restructuring in France
- EBIT including all one-offs was 20.3 million, representing 13% of revenues (23.6m,16% of revenues)
- Earnings per share was EUR 0.09 (0.11).
- Cash flow from operations was 25.6 million positive (20.8m).
- New CEO Christian Fredrikson started on January 16, 2012
- F-Secure has revised its organizational structure as of July 1, 2012
- Financial performance was in line with management’s revised estimation for the year (i.e. revenue growth 5-10% from previous year; EBIT around 15% excluding one-offs in France)
Outlook for 2013 - management’s estimation for the year:
- Revenue growth is estimated to be over 5% compared to 2012.
- Profitability is estimated to be over 15% of revenues.
(This report is unaudited. Unless otherwise stated the comparisons refer to the corresponding period a year ago. The currency is euro. The Content Cloud business is included in the Operator channel figures.)
|
Key figures |
2012 | 2011 | Change | 2012 | 2011 | Change | |
| (EUR Million) | 10-12 | 10-12 | % | 1-12 | 1-12 | % | |
| Revenue | 40.1 | 40.0 | 0 | 157.2 | 146.0 | 8 | |
| EBIT excl. one-offs | 7.4 | 6.5 | 14 | 27.3 | 23.6 | 16 | |
| % of revenue | 19 | 16 | 17 | 16 | |||
| EBIT | 0.4 | 6.5 | -94 | 20.3 | 23.6 | -14 | |
| % of revenue | 1 | 16 | 13 | 16 | |||
| Profit before taxes | 0.5 | 6.6 | 19.9 | 23.5 | |||
| Earnings per share (EUR) | 0.00 | 0.03 | 0.09 | 0.11 | |||
|
At the end of period: Deferred revenue |
37.7 | 38.3 | 37.7 | 38.3 | |||
| Equity ratio, % | 72.7 | 68 | 72.7 | 68 | |||
| Debt-to-equity ratio, % | -50.9 | -47 | -50.9 | -47 | |||
| Personnel | 931 | 942 | 931 | 942 |
President and CEO Christian Fredrikson:
“Our financial performance in Q4 proved to be better than anticipated. Growth was flat due to exceptional Q411 but profitability excluding one-time expenses continued to improve, leading to a strong financial performance. Also, our annual financial performance was good though the revenue growth was behind our ambition.
We are very pleased with the progress in the Content Cloud business; one of Europe’s major operators is now taking the final steps towards the launch of their F-Secure-powered Content Cloud service recognizing its huge market opportunity. The major rollout of the offering, which makes storing, syncing and sharing of content seamless, is expected in Q1. AT&T’s F-Secure-powered Content Cloud offering has also gained traction and is progressing well.
These launches, together with growing interest among service providers, fuel our excitement for our next-generation, productized Content Cloud offering. We see this as a growth opportunity for years to come. Already we are a significant player in the content cloud business, with millions of users globally and several petabytes of data securely stored in our cloud.
Our Internet Security portfolio continues to impress and evolve. At the end of 2012, our corporate business strategy was recognized as top-ranked by The Forrester Wave™, Endpoint Security report. In January, we received the award from AV-Test for Best Protection in the Home User category. Our PC and Mobile Internet Security business via operators continues to achieve healthy subscriber growth in Europe, as always, but also in Latin America.
This past year has shown good operative progress. We have renewed our organizational structure and leadership team to improve operational efficiency as well as time-to-market and market-centricity. We also have restructured our R&D sites for maximum productivity and we won new major customers. Our main goal is to seek revenue growth while gradually improving our profitability and continuing to improve our cost structure. I am confident that our transformation has positioned us to reach our goal in coming years.”
F-Secure’s financial performance in 2012
Total revenues in 2012 were 157.2 million, representing a growth of 8% (146m). Revenue growth through the operator channel remained solid, with a growth of 12%from the previous year and reaching revenues of 95.2million (84.8m). Revenues through the other channels grew over 1%, totaling 61.9 million (61.2m).EBIT was 20.3million (23.6m), representing 13% of revenues (16%). EBIT excluding one-offs due to restructuring in the French subsidiary were 27.3 million, representing 17% of revenues. Earnings per share were EUR 0.09 (EUR 0.11). Cash flow from operations was 25.6 million positive(20.8m positive). Deferred revenues were 37.7 million at the end of December (38.3m).
Total fixed costs were 131.2 million (115.9m),13% higher than in the previous year. The operational cost increases were allocated to geographic expansion in Latin America and to R&D to increase the competitiveness of the products. The cost level was impacted by increased depreciations from past capitalized expenses (R&D activations, software, and hardware); 7.9 million (6.5m) in total. F-Secure capitalized less development costs than in the previous year, 4.9million (7.8m) in total. The one-offs due to restructuring of the French subsidiary were approximately 7 million. These were based on redundancies of 41 employees and related costs, 2.5 million (final costs were a bit higher than 2.1m estimated in November) and write-offs of 4.5 million from the related technology and customer assets. The negotiations related to restructuring at F-Secure SDC (France) were concluded in November.
In addition, there was a write-off of 0.8 million from the obsolete Content Cloud development, booked in Q4, and a write-off of 0.8 million from the obsolete sales tool, booked in Q2. All one-off costs, including restructuring costs and all write-offs, during the year were 8.6million in total. Total fixed costs excluding these one-offs were 122.6 million (114.9m), 7% higher than in the previous year.
At the end of the year, the geographical breakdown of revenues was as follow: Finland and Scandinavia 31% (32%), rest of Europe 45% (45%), North America 10% (11%) and rest of the World 14% (12%).
Operator channel in Q4
The Operator channel, which includes Internet service providers, mobile operators and cable operators, is the main channel through which F-Secure services are delivered. F-Secure has more than 200 partners in over 40 countries, with an addressable market of over 250 million fixed and mobile broadband customers. The total number of F-Secure’s operator partners is significantly larger than that of any other security service vendor. F-Secure provides, through operators, Internet security and Content Cloud products for computers and mobile devices that are easy and intuitive to use for consumers.
F-Secure securely stores billions of photos, videos, documents, and other files for millions of consumers globally. Located in five data centers on three continents, F-Secure’s ever-increasing cloud content currently makes up several petabytes of data. F-Secure Cloud Services, online back- up and synch & share, are trusted by many of the world’s largest telecom companies and serve more than 100 operators around the world.
The Company has developed a new productized, highly-scalable Content Cloud offering and streamlined its project delivery to provide a shorter time to market. This new product strengthens the competitive position in the emerging Content Cloud business. The development of the previous version of the Content Cloud product has been stopped in France and this will improve the Company’s financial performance.
One of Europe’s major operators is now taking the final steps towards the launch its Content Cloud service is planning to make it publicly available during Q1 2013. Powered by F-Secure’s latest Content Cloud technology, operator’s consumer customers will now get more out of their digital content while safely accessing and sharing it from virtually anywhere.
The Company’s co-operation with AT&T is also progressing well. F-Secure has delivered the digital content and cloud storage platform for AT&T's mobile device users to let them sync and share data in one safe, convenient location. AT&T launched their Content Cloud service in Q3 2012 and has invested into various marketing campaigns to push the service in the market. AT&T Locker’s user base is steadily gaining traction.
During the quarter, PC and mobile Internet Security business performed very well and the Operator channel again achieved a double-digit subscriber growth overall. Latin America continued strong performance through Vivo’s (Brazil) subscriber growth in both PC and mobile security. F-Secure also launched Telefonica Movistar operators in Chile, Mexico and Panama and expects to launch other Telefonica group operators during 1H 2013. In addition, some partners expanded their existing PC security offering to also support mobile security; these operators include i.e. TDC (Den) and PCCW (Hong Kong). This demonstrates that the competitiveness of our comprehensive Internet Security offering is meeting the requirements of converging online life.
In the fourth quarter of 2012, sales through operator business partners was 24.5million (24.3m), currently representing 61% (61%) of F-Secure’s total revenues. Revenue growth was 1% compared to the corresponding quarter in 2011 and 3% to the previous quarter. Q4 financials include some revenue recognition from Content Cloud delivery and other projects. The Content Cloud revenues, like the initial commitment from AT&T, backup services and project revenues, support operator business. The revenue growth rate was impacted by contractual changes and by decreased Content Cloud project revenues.
Annual revenues showed growth of 12% and totaled 95.2 million (84.8m), and 61% (58%) of the Company’s total revenues.
Corporate and Direct to Consumer channels in Q4
These channels provide mainly new license and renewal sales of a wide range of Internet security and Content Cloud services for PC and mobile devices. The Corporate channel serves customers globally mainly through the reseller and Managed Services Partner network. Consumer channels works globally through the eStore, AppStores and retailers in selected markets.
F-Secure’s corporate products have received the highest score in strategy among top endpoint security vendors in an independent study (The Forrester Wave™; January 2013). Forrester Research acknowledged F-Secure’s service-enabling business approach as it is well aligned with a greater shift in the software industry towards services. Additionally, F-Secure’s score was among the highest in the antimalware category demonstrating once again the strength of the Company’s protection features .In January, F-Secure received an award from AV-Test for Best Protection in the Home User category.
Sales in traditional channels continued slightly better than anticipated. Customer satisfaction in security services remained high, which was visible in healthy license and renewal sales. The new version of company’s flagship consumer product, Internet Security 2013 was selling very well.
During the fourth quarter, revenues from other channels were flat; 15.6 million (15.7m) in total. These other channels represented 39% (39%) of F-Secure’s total revenues. Deferred revenues were at the end of the quarter 37.7 million (Q312: 36.3m, Q411:38.3m)
Annual revenues showed growth over 1% and totaled 61.9 million (61.2m), and 39% (42%) of the Company’s total revenues.
Product announcements in Q4
F-Secure develops and sells Internet Security and Content Cloud products that support personal computers, servers and an increasing set of major smartphone, tablet and other mobile device operating systems. Services include a wide range of Internet Security products like anti-virus, anti-theft, browsing protection and parental control as well as Content Cloud products like online backup, synchronization and sharing.
During Q4 2012 the key product announcements were as follows:
In November, F-Secure introduced Banking Protection, a new feature of F-Secure’s Internet Security product. Banking Protection is designed especially to protect consumers’ online banking sessions from malicious attacks and to protect online banking sessions against Trojans by adding an extra layer of security. It works unobtrusively without interrupting the banking session, while still allowing access to sites that are verified safe by F-Secure.
In October, F-Secure introduced patch management as a business security feature. The debut of Software Updater breaks new ground for small and medium sized businesses as proactive patch management software that is part of a comprehensive SMB security solution. Software Updater ensures that an organization’s operating systems and third-party applications are up-to-date. It proactively scans computers for missing security updates and patches and deploys them automatically, displaying the results.
Awards
F-Secure scored higher than eight other vendors in the strategy category in Forrester Research’s evaluation of top enterprise client endpoint security vendors. The report, The Forrester Wave™: Endpoint Security, Q1 2013 by Forrester Research Inc., featured F-Secure as a strong performer. The top strategy rating was based on evaluation of F-Secure’s product roadmap, cost and licensing models, and go-to-market strategies. F-Secure was cited by the research firm for actively developing a service-enabling platform, a vision that “closely aligns with the bigger climate change happening in enterprise IT today, in which organizations are moving to procuring services rather than products,” according to the report.
F-Secure’s products and services performed outstandingly well in tests run by various test organizations and magazines around the globe. Among others F-Secure Internet Security 2013 won the award “BEST PROTECTION 2012 - Home User” by AV-Test Org which was announced in January. Additionally, F-Secure Internet Security received AV-Comparatives' Top Rated product-award, Bronze award in On Demand Malware Detection and Silver award in Proactive Malware Detection published in AV-Comparatives' Summary report in December.
Risks and uncertainties
Uncertainty in the economic environment may impact the growth of broadband connections, operators’ willingness to invest in new services and may create pricing pressure. These may have a negative impact on F-Secure’s security and Content Cloud sales.
F-Secure's risks and uncertainties are related to, among other things, the competitiveness of F-Secure's product portfolio, competitive dynamics in the industry, pricing models (e.g. free services, cost of Content Cloud services), impact of changes in technology, timely and successful commercialization of complex technologies and new products and solutions, the ability to protect intellectual property (IPR) in F-Secure's solutions as well as the use of third party technologies on reasonable commercial terms, subcontracting relationships, regional development in new growth markets, sustainability of partner relationships, compromising stored personal data, service quality related penalties, risk exposure from increasing contractual liability requirements and forming of the new business areas.
The Content Cloud project completion timelines and related revenues are more unpredictable by nature than in the traditional security services business. This may cause risks for delivery delay penalties and may cause more variability in revenue forecasts.
Events after period-end
No material changes regarding the Company's business or financial position have materialized after the end of December 2012.
Personnel and organization
F-Secure's personnel totaled 931 at the end ofQ4 (942). In the fourth quarter, the number of personnel has decreased, especially in the R&D function, due to reductions of 41 employees in the French subsidiary.
F-Secure has revised its organizational structure as of July 1, 2012. With this organizational change, F-Secure aims to improve its operational efficiency as well as time-to-market and market-centricity. The main sales channels are the operator channel with Internet Security and Content Cloud services, and other channels with traditional license sales to businesses and consumers.
Currently, the Leadership Team consists of the following persons: Christian Fredrikson (President and CEO), Ari Alakiuttu (Human Resources & Facilities), Samu Konttinen (Customer and Market Operations), Timo Laaksonen (Content Cloud Business), Maria Nordgren (Consumer Security Business), Pirkka Palomäki (Chief Strategy Office), Jari Still (R&D Operations), Pekka Usva (Corporate Security Business) and Taneli Virtanen (Chief Financial Officer).
Finance and capital structure
Cash flow from operations in 2012 was 25.6 million positive (20.8m positive). The net financial income was slightly negative at 0.3 million, impacted by low interest income and exchange rates losses (negative 0.1m).
The Company’s cash position has developed according to the longer term efficient capital management objectives. The market value of F-Secure’s liquid assets on December 31, 2012 was 33.1 million (28.1m). Dividends of 9.3m were paid in April. Changes in exchange rates had alight positive impact on profitability.
F-Secure's capital expenditure in 2012 was 10.3million (18.7m), consisting mainly of IT hardware and software as well as capitalization of development expenses amounting to 4.9 million (7.8m).
F-Secure's financial position remained solid. F-Secure's equity ratio at the end of December was 73% (68%) and the gearing ratio was 51% negative (47% negative).
The objective of F-Secure’s capital management is to achieve an efficient capital structure that ensures the functioning of business operations and promotes the increase of shareholder value.
Shares, shareholders' equity, own shares and option programs
The total number of Company shares is currently 158,798,739. The corresponding number of shares diluted is 159,115,294. The Company’s registered shareholders’ equity is EUR 1,551,311.18. The total number of own shares held at the end of December 2012 was 3,732,390 shares, corresponding to approximately 2.4% of the Company’s shares and voting rights. Own shares will be purchased to be used in the incentive compensation plans, to improve the Company's financial structure, to be used for making acquisitions or implementing other arrangements related to the Company's business, or otherwise assigning or cancelling the shares.
During the fourth quarter, there were no shares subscribed with options. The subscription period of F-Secure shares with F-Secure 2005 warrant program ended on November 30, 2012. Currently, the Company does not have any warrant program.
in November 2012, the Board of Directors established a new synthetic option-based incentive program, earning period 2012-2014, for its key employees excluding the management. The purpose of the program is to increase the value of the company and to commit the key employees to the company.
In January 2013, the company assigned a total of 316,555 shares to 19 participants of the F-Secure share-based incentive program as a reward payment based on the 2009 earning period (share-based incentive program 2011-13). After the transfer, F-Secure Corporation holds a total of 3,415,835of its own shares.
Corporate Governance
F-Secure complies with the Corporate Governance recommendations for public listed companies published by the Securities Market Association, a body established by the Confederation of Finnish Industries EK, the Central Chamber of Commerce and NASDAQ OMX Helsinki Ltd., as explained on F-Secure’s web pages. F-Secure published its corporate governance statement for 2011 in the annual report and on the Company website in March 2012.
Market view
The long term market opportunities are attractive for F-Secure. Malware threats and targeted attacks to private users and businesses in both PC and mobile operating environments are still evolving. Every day, F-Secure’s Labs automation handles and makes decisions on hundreds of thousands of executables and handles many millions of queries to the backend about URLs and binaries.
The security software revenues in 2012 are estimated to be $19.2 billion, growing 8.4% from the previous year (Gartner, August 2012).The forecasted growth for the overall global security software market remains solid at around 8.2% until 2016 (CAGR). The growth of the security market is mostly organic and is derived from emerging markets, such as APAC, China and Latin America (Gartner, August 2012).
At the same time as threats are emerging the number of Internet users is growing and is close to 2.5 billion reaching a global Internet penetration of close to 35%; in Asia close to 30%, in Europe over 60%, and in North America close to 80% (source: Internet World Stats, U.S. Census Bureau, estimated in June 2012). The growth of smartphones and other Internet connected devices is expected to accelerate to tens of billions during next 10 years (source:gigaom/ Ericson).By 2016, the total installed base of mobile devices will grow threefold to 3.7 billion, whereas desktops and notebooks will see a drastic slowdown growing only 30% from 1.5 billion to 2 billion devices (Gartner, October 2012).
People have become multi-screeners who use smartphones, tablets, computers or even TVs to get online. According to F-Secure’s Consumer Broadband Survey 2012 (6,400 broadband subscribers from France, the UK, Germany, Sweden, Finland, Italy, Spain, the Netherlands, Belgium, USA, Canada, Brazil, India and Japan) 65% of people have more than one device. The choice of device depends on the place, context and time people have on their hands. Many activities are performed either sequentially or in parallel on various devices which defines new requirements for software.
Users create and share content 24/7.The volume of user generated digital content is expected to continue to increase rapidly during coming years, driven by digital photos, videos and music. 89% of people (F-Secure Broadband Consumer Survey, 2012) want all their content on all their devices and look for services to share, store and control their personal data. Parks Associates forecasts that operators providing security, storage and sharing value-added services have a revenue opportunity of $1.03b 2012, increasing to $4.82b during 2015.
The majority of people do not trust the safety of cloud services according to F-Secure’s Broadband Consumer Survey. However, the need for Internet security and different kinds of safe Content Cloud servicesis increasing. It opens new opportunities for security and safe Content Cloud service providers who have built trust over years and have a solid track record.
New players in the Internet security area are entering the market, especially focused on mobile operating systems. In the emerging Content Cloud business, there are a lot of new vendors. However, during the quarter there were no significant changes in the competitive landscape or pricing levels for Internet Security. F-Secure's competitive position in general and especially in the Operator channel has remained strong based on innovative products with a great user experience and awarded technical performance.
Based on several industry analyst estimates, the Software as a Service (SaaS) business model is expected to continue to grow strongly and to gain more market share over traditional license sales. For Operators the Software as a Service model is a natural expansion to their other service offerings. The SaaS business offers operators the opportunity to replace revenues lost from the provision of commoditized services and to increase loyalty in the face of competitive threats from over-the-top providers and third parties.
Long-term objectives and strategy summary for 2012 -14
F-Secure’s first priority is to drive growth and market expansion. Based on the company’s strong technology assets in security products, cloud computing and Content Cloud services, F-Secure continues to create new innovative offerings to augment traditional security services, especially in the Content Cloud space.
The Company sells its products globally through three channels; Direct to consumer channel (eStore, App Stores, retail), Corporate channel (reseller network) and Operator channel (SaaS).
Operators, including Internet service providers, mobile operators and cable operators, are the main channel for F-Secure services. F-Secure provides, through operators, awarded security and Content Cloud services and utilizes the local presence and brand of operators to reach millions of consumers in a cost-efficient and scalable way.
F-Secure’s competitive advantage derives from existing operator network and relationships built over the years. Key assets include security research, scalable products optimized for the mass-market, experience in service provisioning in the operator network environment and the ever growing user base of operators. F-Secure stands out in its ability to combine security with safe Content Cloud services for both computers and mobile devices and its understanding of the Operator channel as a whole.
During the strategy period, the Company is aiming for double-digit revenue growth, driven by the Operator channel and supported by the Corporate and Direct to Consumer channels. The growth is expected to come from the western hemisphere and some emerging markets like Latin America and APAC.
The Company will continue its investments in new services around the Content Cloud and Internet security products with emphasis on end-customer focus. These investments ensure the scalability and competiveness of the services and drive F-Secure service ramp-up, both PC and mobile, in a wide subscriber base. Profitability is targeted to develop towards the 25% level at the end of the strategy period. F-Secure’s longer-term profitability level continues to be driven by revenue growth and scalable operations.
Outlook for 2013
The long-term business opportunity with Internet Security and Content Cloud products for multiple devices and platforms is attractive. The Company is looking for ways to increase its revenue growth and to improve its profit margin.
The Operator channel is expected to continue to drive the revenue growth powered by Internet security sales and supported by a productized, highly-scalable Content Cloud service. However, the short-term revenue growth remains at lower level due to contractual changes and decreased Content Cloud project revenues as the project sizes are smaller. The Company also estimates good progress from the Corporate and Direct to Consumer channels. To meet the evolving threat level and to open new business opportunities for Internet Security services, F-Secure will continuously launch new security features with a shorter time to market over the upcoming quarters.
The actual operational cost increase is fairly limited, and is targeted at driving product portfolio competitiveness and supporting geographical expansion.
Management’s estimation for the year; the annual revenue growth is estimated to be over 5% compared to 2012. The annual profitability is estimated to be over 15% of revenues.
The revenue estimate is based on the sales pipeline at the time of publishing, existing subscriptions and support contracts as well as current exchange rates. The Company continues to prioritize growth over short-term profitability and plans to invest the majority of the improved earnings in growth opportunities in its core business while aiming at improving profitability.
Signing of the annual report and proposals to the Annual General Meeting
The Board of Directors will sign the annual report on February 14. The Company will on that date publish the proposals to the AGM. The Company's dividend policy is to pay approximately half of its profits as dividends. Subject to circumstances, the company may deviate from this policy.
News conference today at 11 am
A news conference for analysts and press is arranged today, February 1, at 11 a.m. Finnish time at
F-Secure’s Headquarters, address: Tammasaarenkatu 7, Ruoholahti, Helsinki. At the news conference, President & CEO Christian Fredrikson will present the Q4financial results. A conference call for international investors and analysts is arranged at 1.00 p.m. Finnish time (EET) (12.00 CET, 11.00 UK time). To participate in the call, please dial in and register 5-10 minutes prior to the event through the following number: +44 20 7162 0077, password: F-Secure. The Q4 financial results presentation material will be available on our Investors web pages at www.f-secure.com under About F-Secure, Investors before the call begins.
Financial calendar for 2013
F-Secure will publish the interim report on April 26 (Q1), July 26 (Q2) and October 25 (Q3). On the publication date a stock exchange release will be sent at 9 a.m. Finnish time to the NASDAQ OMX Helsinki Ltd., a press and analyst conference will be arranged at 11 a.m. Finnish time in Helsinki, and an international conference call will be arranged in the afternoon. The Annual General Meeting is scheduled to be held on April 3, 2013 and the annual report will be published in the beginning of March, latest on week 11.
F-Secure Corporation
Additional information
F-Secure Corporation
Christian Fredrikson, President and CEO
tel. +358 9 2520 0700
Taneli Virtanen, CFO
tel. +358 9 2520 5655
Katariina Kataja, IR
tel. +358 40 6616884
This interim report is prepared in accordance with IAS 34 standard Interim Financial Reporting and with accounting principles stated in the annual report 2011.
| Key figures (unaudited): | |||||
| Euro million | |||||
| INCOME STATEMENT | 2012 | 2011 | 2012 | 2011 | Chge |
| 10-12 | 10-12 | 1-12 | 1-12 | % | |
| Revenues | 40.1 | 40.0 | 157.2 | 146.0 | 8 |
| Cost of revenues | 1.8 | 2.2 | 7.4 | 8.0 | -7 |
| Gross margin | 38.3 | 37.8 | 149.7 | 138.1 | 8 |
| Other operating income | 0.3 | 0.4 | 1.8 | 1.4 | 25 |
| Sales and marketing | 19.6 | 18.0 | 70.9 | 64.7 | 10 |
| Research and development | 15.8 | 10.5 | 49.3 | 39.3 | 25 |
| Administration | 2.7 | 3.1 | 11.0 | 11.9 | -8 |
| Operating result | 0.4 | 6.5 | 20.3 | 23.6 | -14 |
| Financial net | 0.1 | 0.1 | -0.3 | -0.1 | |
| Result before taxes | 0.5 | 6.6 | 19.9 | 23.5 | |
| Income taxes | -0.8 | -2.0 | -5.8 | -7.1 | |
| Result for the period | -0.3 | 4.6 | 14.1 | 16.4 |
| Other comprehensive income: | 2012 | 2011 | 2012 | 2011 | |
| 10-12 | 10-12 | 1-12 | 1-12 | ||
|
Exchange diff. on translating foreign operations |
0.1 | 0.0 | 0.2 | 0.0 | |
| Available-for-sale fin.assets | -0.1 | 0.1 | 0.1 | 0.1 | |
| Income tax rel. to components of other comprehensive income | 0.0 | 0.0 | 0.0 | 0.0 | |
| Total compr.income (owners) | -0.3 | 4.7 | 14.3 | 16.4 | |
| Earnings per share. e | 0.00 | 0.03 | 0.09 | 0.11 | |
| EPS diluted. e | 0.00 | 0.03 | 0.09 | 0.10 |
|
BALANCE SHEET ASSETS |
31/12/2012 | 31/12/2011 |
| Intangible assets | 20.8 | 25.3 |
| Tangible assets | 9.8 | 9.1 |
| Goodwill | 19.4 | 19.4 |
| Other financial assets | 5.4 | 5.5 |
| Non-current assets total | 55.4 | 59.2 |
| Inventories | 0.2 | 0.4 |
| Other receivables | 38.4 | 37.9 |
| Available-for-sale financial assets | 16.8 | 16.0 |
| Cash and bank accounts | 16.5 | 12.2 |
| Current asset total | 71.9 | 66.4 |
| Total | 127.3 | 125.7 |
|
SHAREHOLDERS' EQUITY AND LIABILITIES |
31/12/2012 | 31/12/2011 |
| Equity | 65.1 | 59.6 |
| Other non-current | 0.4 | 1.6 |
| Provisions | 0.1 | 0.0 |
| Deferred revenues | 8.5 | 8.4 |
| Non-current liabilities total | 9.1 | 10.1 |
| Other current | 23.9 | 26.2 |
| Deferred revenues | 29.3 | 29.8 |
| Current liabilities total | 53.2 | 56.1 |
| Total | 127.3 | 125.7 |
| CASH FLOW STATEMENT | 31/12/2012 | 31/12/2011 |
| Cash flow from operations | 25.6 | 20.8 |
| Cash flow from investments | -11.1 | -16.7 |
|
Cash flow from financing activities 1) |
-9.3 | -9.1 |
| Change in cash | 5.2 | -5.0 |
| Cash and bank at 1 Jan | 27.8 | 32.9 |
| Change in net fair value of Available-for-sale | 0.1 | 0.1 |
| Cash and bank at end of period | 33.1 | 28.1 |
Statement of changes in shareholders’ equity
|
Share capital |
Share premium fund |
Un- restricted equity- reserve |
Treasury shares | Retained earnings |
Assets avail. f.sale |
Transl. diff. |
Total | |
|
Equity on: 31.12.2011 |
1.6 | 0.2 | 5.1 | -9.0 | 61.8 | 0.1 | -0.2 | 59.6 |
|
Total comprehensive income for the year |
14.1 | 0.1 | 0.2 | 14.3 | ||||
| Dividend | -9.3 | -9.3 | ||||||
| Other change | ||||||||
| Exercise of options | ||||||||
| Treasury shares | 0.6 | -0.6 | ||||||
|
Cost of share based payments |
0.5 | 0.5 | ||||||
|
Equity on 31.12.2012 |
1.6 | 0.2 | 5.1 | -8.4 | 66.5 | 0.2 | 0.0 | 65.1 |
NOTES
- Cash flow from financing
Dividend for year 2011 0.06 euro per share totaling 9.303.980.94 euro was paid on 17th April 2012. In 2011 paid dividend totaled 9.253.915.80 euro.
| Key ratios | 2012 | 2011 |
| 12 m | 12 m | |
| Operating result. % of revenues | 12.9 | 16.2 |
| ROI % | 34.9 | 44.3 |
| ROE % | 22.6 | 29.5 |
| Equity ratio. % | 72.7 | 68.1 |
| Debt-to-equity ratio. % | -50.9 | -47.1 |
| Earnings per share (EUR) | 0.09 | 0.11 |
| Earnings per share diluted | 0.09 | 0.10 |
|
Shareholders' equity per share. e |
0.41 | 0.38 |
| P/E ratio | 17.1 | 19.0 |
| Capitalized expenditures (Me) | 10.3 | 18.7 |
| Contingent liabilities | 15.6 | 18.7 |
| Personnel. average | 970 | 878 |
| Personnel. end of period | 931 | 942 |
Segment information
The Group has only one segment; data security.
|
Quarterly development |
1/11 | 2/11 | 3/11 | 4/11 | 1/12 | 2/12 | 3/12 | 4/12 |
| Revenues | 34.1 | 35.3 | 36.6 | 40.0 | 38.4 | 39.6 | 39.1 | 40.1 |
| Cost of revenues | 1.8 | 1.9 | 2.0 | 2.2 | 1.9 | 2.1 | 1.7 | 1.8 |
| Gross margin | 32.3 | 33.4 | 34.6 | 37.8 | 36.5 | 37.5 | 37.4 | 38.3 |
| Other operating income | 0.4 | 0.4 | 0.2 | 0.4 | 0.3 | 0.5 | 0.6 | 0.3 |
| Sales and marketing | 14.8 | 16.2 | 15.8 | 18.0 | 16.9 | 17.9 | 16.4 | 19.6 |
|
Research and development |
9.4 | 9.9 | 9.4 | 10.5 | 11.5 | 11.4 | 10.6 | 15.8 |
| Administration | 3.0 | 3.0 | 2.8 | 3.1 | 3.0 | 2.9 | 2.3 | 2.7 |
| Operating result | 5.5 | 4.6 | 6.9 | 6.5 | 5.4 | 5.8 | 8.6 | 0.4 |
| Financial net | -0.2 | 0.0 | 0.0 | 0.1 | -0.2 | -0.1 | -0.1 | 0.1 |
| Result before taxes | 5.3 | 4.6 | 7.0 | 6.6 | 5.2 | 5.7 | 8.5 | 0.5 |
Geographical information
| Revenue | 10-12/2012 | 10-12/2011 | 1-12/2012 | 1-12/2011 |
| Nordic countries | 12.0 | 12.6 | 47.9 | 47.3 |
| Rest of Europe | 18.4 | 17.3 | 71.2 | 65.1 |
| North America | 4.2 | 5.2 | 15.9 | 16.4 |
| Rest of the world | 5.5 | 4.9 | 22.2 | 17.2 |
| Total | 40.1 | 40.0 | 157.2 | 146.0 |
