STOCKHOLM, Sweden, Feb. 5, 2002 (PRIMEZONE) -- Aspiro AB:
-- Company revenues totaled SEK 45.5 m (SEK 15.7), of which net
sales accounted for SEK 43.9 m (SEK 15.2 m).
-- The result after financial items amounted to SEK -220.0 m
(SEK -190.6 m), of which one-off write-downs in goodwill and
restructuring costs accounted for SEK 100.9 m (SEK 20.7 m).
-- The company's liquid funds amounted to SEK 95.9 m (SEK 159.0 m)
at the end of the period. A cash share issue totaling SEK 82.5 m
was carried out in December.
-- During 2001, Aspiro signed 87 (16) new sales agreements with
customers in Europe and the USA, including 18 (7) agreements in
the fourth quarter. After the end of the period, Aspiro signed a
further three agreements.
-- Aspiro's portfolio of services contained 178 (106) different
products and concepts at the end of the period. The acquisition
of application company, Mgage Systems AB, broadens Aspiro's range
of consumer applications and strengthens the company's customer
base with the inclusion of D2 Vodafone.
-- Aspiro's stock was listed on the O-List of the Stockholm
Exchange in June.
-- A restructuring program implemented in the third quarter
resulted in annual cost savings of SEK 55 m. The number of
employees was reduced during the year from 138 to 68.
-- After the end of the period, Ericsson has secured a number of
test trials of Aspiro's MMS services with European and Asian
operators. The distribution agreement with Ericsson has
also resulted in a sales agreement with a major European operator.
Net sales and result
Group revenues in 2001 totaled SEK 45.5 m (SEK 15.7 m), of which net sales amounted to SEK 43.9 m (SEK 15.2 m) -- a tripling of revenues compared with last year. The previously announced sales forecast estimated annual revenues of not quite SEK 50 m. Sales in the fourth quarter totaled SEK 8.7 m (SEK 7.6 m). Of the year's total net sales, 37 percent were attributable to sales in Sweden, 57 percent in Europe, and six percent in the rest of the world. This represents a far greater geographical distribution than 2000.
The result after net financial items amounted to SEK -220.0 m (SEK -190.6 m). The period's result has been affected by a one-off write-down in goodwill totaling SEK 74.6 m (SEK 0 m) and restructuring costs of SEK 26.3 m (SEK 20.7 m). The fourth-quarter result after net financial items amounted to SEK -87.5 m (SEK -44.6 m), including a one-off goodwill write-down of SEK 58.2 m (SEK 0 m) and restructuring costs of SEK 3.5 m (SEK 1.4 m).
In 2001, Aspiro focused aggressively on selling SMS traffic to Internet portals. This strategy was successful during the first few months of the year. Thereafter, however, many customers began to be affected by falling advertising revenues and various financial problems. In the second half of the year, Aspiro broadened its customer base to include Internet Service Providers as well as media and advertising agencies.
Earnings per share for the year amounted to SEK -3.50 (SEK -3.15). Fourth-quarter earnings per share totaled SEK -1.35 (SEK -0.60). Outstanding option rights have not diluted Aspiro's stock.
Parent Company
The revenues of the Parent Company totaled SEK 40.9 m (SEK 13,9 m), of which net sales amounted to SEK 39.0 m (SEK 13.5 m). The result after financial items was SEK -215.6 m (SEK -185.8 m). The result was affected by one-off write-downs of participations in subsidiary companies totaling SEK 71.9 m (SEK 9.1 m) and restructuring costs of SEK 14.3 m (SEK 16.0 m).
Investments
The Group's total investments during the year amounted to SEK 18.9 m (SEK 113.3 m), of which SEK 9.8 m (SEK 90.9 m) was Group goodwill and SEK 5.1 m (SEK 15.4 m) tangible assets. Of total investments, SEK 4.6 m (SEK 12.3 m) was attributable to finance leasing agreements.
Liquidity and financing
Liquid assets at the end of the period amounted to SEK 95.9 m (SEK159.0 m).
In order to secure Aspiro's capital requirements, a cash share issue totaling SEK 82.5 m, or 30 million shares, was carried out directed at institutional investors. At the same time, a non-cash issue was also carried out totaling 5.8 million shares in connection with the acquisition of Mgage Systems AB.
Aspiro's stock
Aspiro's stock was listed on the O-list of the Stockholm Exchange on June 6, 2001.
The number of outstanding shares at the end of the period amounted to 85,823,843. If all outstanding option rights are exercised to subscribe for shares, the number of additional shares will amount to 1,673,516, which would create a total of 87,497,359 shares and potential shares. The lowest subscription price for outstanding options is SEK 26.90.
The market
Aspiro's goal is to become one of Europe's leading independent providers of mobile applications. In 2001, the company strengthened its market position by expanding its customer base and delivering mobile services to eight of Europe's leading mobile operators. Aspiro also entered a distribution agreement with Ericsson aimed at consolidating further Aspiro's market presence as well as facilitate operators' contacts with suppliers.
The demand from mobile operators during the year was principally for SMS applications. At the end of 2001, Aspiro offered 82 different SMS-based services, of which Ring Tones and Pick-up-Lines were the most popular. Other companies expressed great interest in Aspiro's SMS applications for use in different branding campaigns. Moreover, the relationship between mobile services and strong brands outside the domain of operators grew more distinct.
Today's capacity in existing mobile networks is better suited to handle data transmission now that some fifty GSM networks around the world have been upgraded to GPRS. Many mobile operators also upgraded their range of mobile services in 2001.
The weak world economy combined with most mobile operators current financial position resulted in fewer new investments being made and a cautious approach to marketing mobile portals. At the end of 2001 mobile phones and mobile services in color were launched that lived up to the image of the mobile Internet which the sector had previously visualized.
New sales of Aspiro's systems to companies with personnel in the field, Transport & Logistics and the recently launched Field Service, were delayed during the latter part of 2001.
Sales
Aspiro signed 87 sales agreements in 2001, including 18 under in the fourth quarter.
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The full text report, with all financial tables, is available at the following URLs:http://www.waymaker.net/bitonline/2002/02/05/20020205BIT00690/bit0001.doc (The Full Year-End Report) http://www.waymaker.net/bitonline/2002/02/05/20020205BIT00690/bit0001.pdf (The Full Year-End Report)