SSH COMMUNICATIONS SECURITY CORP INTERIM REPORT OCTOBER 21, 2009 AT 9:00 A.M.
SSH INTERIM REPORT, JANUARY 1 - SEPTEMBER 30, 2009
July-September
- Net sales totaled EUR 2.2 million, up by 13.9 % year on year (EUR 2.0 million
in 7-9/2008).
- Operating profit amounted to EUR 0.1 million, (an operating loss of EUR -0.3
million in 7-9/2008) including EUR 0.1 of non-recurring costs, profit EUR 0.2
million (EUR -0.4 million).
January-September
- Net sales totaled EUR 5.9 million, down by 6.4 % percent year on year (EUR 6.3
million in 1-9/2008).
- Operating loss amounted to EUR -1.9 million (an operating loss of EUR -1.4
million in 1-9/2008) including EUR 0.7 of non-recurring costs, loss EUR -1.6
million (EUR -1.1 million).
The company's financial position remained healthy, with equity ratio 78.2 %
(92.8%) and liquid assets at the end of the period EUR 6.0 million (EUR 16.1
million).
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| KEY FIGURES | | | | | | |
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| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | Change | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 | % | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales (MEUR) | 2.2 | 2.0 | 5.9 | 6.3 | -6.4 | 8.5 |
--------------------------------------------------------------------------------
| Operating profit/loss | 0.1 | -0.3 | -1.9 | -1.4 | -34.3 | -2.2 |
| (MEUR) | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 4.9 | -16. | -32.6 | -22.7 | | -25.9 |
| | | 9 | | | | |
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| Profit/loss before | 0.2 | -0.1 | -1.6 | -0.9 | -84.3 | -1.5 |
| taxes (MEUR) | | | | | | |
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| Profit/loss (MEUR) | 0.2 | -0.4 | -1.6 | -1.1 | -44.0 | -1.8 |
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| | | | | | | |
--------------------------------------------------------------------------------
| Return on equity, % | | | -22.9 | -4.7 | | -10.2 |
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| Return on investment, % | | | -21.6 | -3.3 | | -7.4 |
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| Liquid assets | | | 6.0 | 16.1 | -62.5 | 16.5 |
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| Gearing (%) | | | -138.5 | -106.1 | | -112.8 |
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| Equity ratio (%) | | | 78.2 | 92.8 | | 91.3 |
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| | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | | | -0.06 | -0.04 | -43.1 | -0.06 |
| (EUR) | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | | | 0.15 | 0.53 | -71.6 | 0.51 |
| per share (EUR) | | | | | | |
--------------------------------------------------------------------------------
CEO's BUSINESS REVIEW
During the third quarter net sales increased by 13.9 percent and the operations
turned into profits. The sales include agreements with a major U.S. research
agency, one of the largest U.S. banks and a mid-size U.S. retailer chain. During
the reporting period, net sales decreased -6.4 percent compared to the previous
year. The company's financial position is good.
SSH focused its sales efforts for the enterprise class security infrastructure
customers in its main markets. The company entered to the growing Managed File
Transfer (MFT) market segment with the launch of a study made by an
international market analysis company. The analysis company positioned SSH as a
visionary MFT security vendor in its categorization. In the reporting period SSH
closed its first MFT sales in the U.S and Japan with increasing prospect listing
globally. The introduction of new automation and governance solutions for
enterprise and business process security were well received in the market.
Started at the end of the second quarter, SSH continued the decided cost cutting
program. The aim is to save an estimated 15% in expenses during second half of
2009 compared to second half of 2008. The management objective is to turn the
operations into profits in the second half of 2009. SSH Helsinki office move to
new premises is estimated to save EUR 0.2 million in annual costs beginning from
2010. The full positive impact of the cost cutting program during 2010 is
estimated at EUR 2.0 million compared to 2008 before potential company growth
and expansion costs.
The company launched the renewed customer strategy in its operations and
continued the started development of operational efficiency. The development of
company key processes was focusing on the high-impact global sales process and
the assessment and improvement of a managed product development process. The
financial and administrative process was focusing on improving the overall
internal efficiency, management reporting and renewal of key ICT infrastructure.
SSH will continue its efforts on developing the company into a sales and
marketing oriented technology company with strong value-added offering and
customer focus. The company is enhancing the market position in its key markets
with chosen strategic channel partners to existing and new customer segments.
Further, SSH will establish and strengthen the quality and excellence of systems
integrator and channel partner model within markets that have the highest
estimated growth potential.
SSH's growth drivers are consistent and continuous improvement in operative
efficiency, sustainable growth in global customer and maintenance base of G1.000
companies, new value-added security solutions for current and new markets, as
well as focused development and efficiency of certified, value-added partner
network.
SSH sales pipeline includes large customer cases that are not part of the full
year net sales estimate.
SSH estimates its net sales during 2009 to remain on 2008 level, and expects the
net result of the year to improve from 2008, but to remain negative.
NET SALES
Consolidated net sales for January-September totaled EUR 5.9 million (EUR 6.3
million), down by -6.4 %, year on year.
The Americas, the ‘Europe and Rest of the World' market area and the Asia
Pacific region accounted for 69.6 percent (67.5 percent), 20.4 percent (21.8
percent) and 9.9 percent (10.7 percent) of reported net sales, respectively.
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| SSH NET SALES | | | | | | |
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| EUR Million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | Change | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 | % | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BY SEGMENT | | | | | | |
--------------------------------------------------------------------------------
| AMERICAS | 1.7 | 1.2 | 4.1 | 4.2 | -3.4 | 5.8 |
--------------------------------------------------------------------------------
| APAC | 0.3 | 0.2 | 0.6 | 0.7 | -13.0 | 0.8 |
--------------------------------------------------------------------------------
| EROW | 0.3 | 0.5 | 1.2 | 1.4 | -12.1 | 1.9 |
--------------------------------------------------------------------------------
| SSH Group Total | 2.2 | 2.0 | 5.9 | 6.3 | -6.4 | 8.5 |
--------------------------------------------------------------------------------
| | | | | | | |
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| BY OPERATION | | | | | | |
--------------------------------------------------------------------------------
| License sales | 1.1 | 0.8 | 2.3 | 3.0 | -22.1 | 4.0 |
--------------------------------------------------------------------------------
| Maintenance | 1.2 | 1.1 | 3.5 | 3.3 | 8.0 | 4.5 |
--------------------------------------------------------------------------------
| Total | 2.2 | 2.0 | 5.9 | 6.3 | -6.4 | 8.5 |
--------------------------------------------------------------------------------
The majority of SSH's invoicing is U.S. dollar based. During the report period,
the U.S. dollar's average exchange rate to euro strengthened approximately 10.2
percent compared to the same period a year ago. At constant currency, net sales
would have decreased 13.0 percent compared to corresponding period in 2008.
RESULTS AND EXPENSES
Operating loss for January-September amounted to EUR -1.9 million (an operating
loss of EUR -1.4 million), with net loss totaling EUR -1.6 million (a loss of
EUR -1.1 million).
Related to the ongoing cost saving program, EUR 0.7 million onetime expense was
charged as cost during the reporting period. Related to the Helsinki office
move to new premises, the company booked EUR 0.1 million onetime cost in the
third quarter.
Research and development expenses for the report period totaled EUR 2.8 million
(EUR 2.9 million), while sales and marketing expenses amounted EUR 3.3 million
(EUR 3.6 million) and administrative expenses EUR 1.8 million (EUR 1.2 million).
BALANCE SHEET AND FINANCIAL POSITION
The financial position of SSH remained at a healthy level during the report
period, despite the capital returned to shareholders. The consolidated balance
sheet total on September 30, 2009 stood at EUR 8.2 million (EUR 19.0 million),
of which liquid assets accounted for EUR 6.0 million (EUR 16.1 million), or 73.2
percent of the balance sheet total. The company's interest bearing liabilities,
EUR 0.1 million, comprised lease finance commitments. On September 30, 2009,
gearing, or the ratio of net liabilities to shareholders' equity, was -138.5
percent (-106.1) and the equity ratio stood at 78.2 percent (92.8).
The reported gross capital expenditure for the period totalled EUR 0.0 million
(EUR 0.1 million). The reported financial income consisted mainly of interest on
fixed-term deposits. Financial income and expenses totalled EUR 0.3 million (EUR
0.6 million).
During January-September, SSH reported a negative cash flow of EUR -1.9 million
(EUR -2.1 million) from business operations, and investments showed a positive
cash flow of EUR 11.5 million (EUR 6.8 million). Cash flow from financing
totaled EUR -8.5 million (EUR -4.3 million), mainly consisting of capital
returned to shareholders. Total cash flow from operations, investments and
financing was positive EUR 1.1 million (EUR 0.4 million) during the period.
RESEARCH AND DEVELOPMENT
Research and development expenses for January-September totaled EUR 2.8 million
(EUR 2.9 million), the equivalent of 47.1 percent of net sales (46.7 percent).
During the report period SSH did not capitalize any research and development
expenses.
HUMAN RESOURCES AND ORGANIZATION
At the end of September, the Group had 63 employees on its payroll, down by 12
from the previous year, a decrease of 16 percent.
At the end of the period, 59 percent of the employees worked in R&D, 22 percent
in sales and marketing, and 19 percent in corporate administration.
BOARD AND AUDITORS
The Annual General Meeting (AGM) on March 4, 2009 re-elected Tomi Laamanen, Pyry
Lautsuo, Juha Mikkonen and Tatu Ylönen to the Board of Directors. Juho Lipsanen
was elected as a new member to the board. He also chairs the board.
The AGM also re-elected PricewaterhouseCoopers Oy, authorized public
accountants, as the company's auditor, with Henrik Sormunen, authorized public
accountant, acting as the principal auditor.
SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE
The reported trading volume of SSH Communications Security Corp. shares totaled
3 624 965 (valued at EUR 2 918 394). The highest quotation was EUR 1.24 and the
lowest EUR 0.65 The trade-weighted average share price for the period was EUR
0.81 and the share closed at EUR 0.72 (September 30, 2009).
During the report period, the ownership structure of the company did not change
essentially. Tatu Ylönen holds, directly and through his company, Tatu Ylönen
Oy, 51.1 percent of the company's shares, Assetman Oy holds 14.6 percent and
Tero Kivinen 5.1 percent. More information about the shareholding can be
obtained from the company´s web site.
SHARE CAPITAL AND BOARD AUTHORIZATIONS
The company's registered share capital on September 30, 2009 was EUR 863 953.47
consisting of 28 798 449 shares. During the report period, SSH increased its
share capital twice, based on subscriptions to the new shares under SSH's
stock-option plans. In total, 2,600 new SSH shares were subscribed under the
I/1999 stock option plan and 143,581 shares under I/2003 stock option plan
respectively. With these subscriptions the Company's share capital was increased
by EUR 4,385.43.
The Annual General Meeting approved the Board of Directors' proposal to
authorize the Board of Directors to decide upon the issuing of in total
5,500,000 shares in one or more tranches as share issues against payment or by
giving stock options or other special rights defined in Chapter 10 Section 1 of
the Finnish Companies Act, which entitle to shares either according to the
shareholders' pre-emptive right to share subscription or deviating from this
right. The authorization will be valid until the next Annual General Meeting,
but will expire on June 30th 2010 at the latest.
In addition the Annual General Meeting authorized the Board of Directors to
decide upon acquiring a maximum of 2,000,000 of the company's own shares in one
or more tranches, which amount corresponds approximately to seven (7) per cent
of all shares of the company. The compensation to be paid for the acquired
shares shall be determined on the date of acquisition on the basis of a trading
rate determined for the company's share in a public trading arranged by NASDAQ
OMX Helsinki Ltd. The authorization to acquire the shares shall be valid at most
for eighteen (18) months after the decision of the Annual General Meeting.
The Annual General Meeting decided upon the distribution of assets from the
invested non-restricted equity fund to the shareholders in such a way that
assets shall be distributed 0.30 euro per share. The amount to be distributed is
in total 8,595,680.40 euro. The return of equity was paid to the shareholders
who on the record date on March 9th 2009 were registered in the shareholders'
register of the company held by Euroclear Finland Oy, and the payment date was
on March 16th 2009.
Furthermore, the Annual General Meeting decided to lower the subscription price
of the shares that can be subscribed based on the option plans released by the
company between years 2000-2008, with an amount corresponding to the
distribution of assets, i.e. 0.30 euro per option right. The subscription price
of the shares shall, however, always have at least the same value as the par
value.
CORPORATE GOVERNANCE
The company complies with the corporate governance recommendations for listed
companies issued by the NASDAQ OMX Helsinki, the Central Chamber of Commerce of
Finland, and the Confederation of Finnish Industry and Employers. More
information on corporate governance is available on the company's Web site
(www.ssh.com).
This interim report follows IAS 34 (Interim Financial Reporting) accounting
standard. The same accounting principles have been used in the financial
statements for 2008. These data are based on unaudited figures.
The interim report also complies with the renewed IAS 1 and IAS 8 standards.
Based on IAS 1, the exchange differences on translating foreign subsidiaries are
presented as a part of the comprehensive income statement. SSH reports
Americas, Asia and pacific and Europe and the rest of the world as its IAS 8
operational segments. In addition licence and maintenance sales are separated
from each other.
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| INCOME STATEMENT | | | | | |
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| EUR million | | | | | |
--------------------------------------------------------------------------------
| | | 7-9 | 7-9 | 1-9 | 1-9 | 1-12 |
| | | /2009 | /2008 | /2009 | /2008 | /2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Net sales | 2.2 | 2.0 | 5.9 | 6.3 | 8.5 |
--------------------------------------------------------------------------------
| | Cost of goods sold | -0.1 | 0.0 | -0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| | Gross profit | 2.2 | 2.0 | 5.8 | 6.3 | 8.5 |
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| | Other operating income | 0.0 | 0.0 | 0.1 | 0.1 | 0.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Product development | -0.9 | -0.9 | -2.8 | -2.9 | -4.0 |
| | expenses | | | | | |
--------------------------------------------------------------------------------
| | Distribution costs | -0.8 | -1.0 | -3.3 | -3.6 | -5.0 |
--------------------------------------------------------------------------------
| | Administrative expenses | -0.4 | -0.4 | -1.8 | -1.2 | -1.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Operating profit/loss | 0.1 | -0.3 | -1.9 | -1.4 | -2.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Financial income and | 0.1 | 0.2 | 0.3 | 0.6 | 0.7 |
| | expenses | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Profit/loss before taxes | 0.2 | -0.1 | -1.6 | -0.9 | -1.5 |
--------------------------------------------------------------------------------
| | Taxes | 0.0 | -0.2 | 0.0 | -0.2 | -0.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Net profit/loss for the | 0.2 | -0.4 | -1.6 | -1.1 | -1.8 |
| | period | | | | | |
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| | Other profit and loss | | | | | |
| | account items: | | | | | |
--------------------------------------------------------------------------------
| | Foreign subsidiary | 0.0 | 0.0 | -0.1 | 0.0 | 0.2 |
| | translation differences | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total comprehensive income | 0.2 | -0.4 | -1.7 | -1.1 | -1.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EARNINGS PER SHARE | |
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EUR) | | | -0.06 | -0.04 | -0.06 |
--------------------------------------------------------------------------------
| Earnings per share, diluted | | | -0.06 | -0.04 | -0.06 |
| (EUR) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET | | | |
--------------------------------------------------------------------------------
| EUR million | | | |
--------------------------------------------------------------------------------
| | | 09/30/2009 | 09/30/2008 | 12/31/2008 |
--------------------------------------------------------------------------------
| | ASSETS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Non-current assets | | | |
--------------------------------------------------------------------------------
| | Tangible assets | 0.2 | 0.4 | 0.3 |
--------------------------------------------------------------------------------
| | Intangible assets | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| | Total non-current assets | 0.2 | 0.4 | 0.3 |
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| | | | | |
--------------------------------------------------------------------------------
| | Current assets | | | |
--------------------------------------------------------------------------------
| | Trade and other receivables | 2.0 | 2.5 | 2.3 |
--------------------------------------------------------------------------------
| | Short-term financial assets | 3.0 | 14.0 | 14.5 |
--------------------------------------------------------------------------------
| | Cash and cash equivalents | 3.0 | 2.1 | 2.0 |
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| | Total current assets | 8.0 | 18.6 | 18.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total assets | 8.2 | 19.0 | 19.1 |
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--------------------------------------------------------------------------------
| | LIABILITIES AND SHAREHOLDERS' | | | |
| | EQUITY | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Shareholders' equity | 4.3 | 15.1 | 14.5 |
--------------------------------------------------------------------------------
| | Non-current liabilities | | | |
--------------------------------------------------------------------------------
| | Provisions | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| | Non-current interest-bearing | 0.1 | 0.1 | 0.1 |
| | liabilities | | | |
--------------------------------------------------------------------------------
| | Total long-term liabilities | 0.1 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Current liabilities | 3.9 | 3.8 | 4.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total equity and liabilities | 8.2 | 19.0 | 19.1 |
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--------------------------------------------------------------------------------
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| CASH FLOW STATEMENT | | | |
--------------------------------------------------------------------------------
| EUR million | | | |
--------------------------------------------------------------------------------
| | | 1-9/2009 | 1-9/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
| | Cash flow from business | -1.9 | -2.1 | -2.0 |
| | operations | | | |
--------------------------------------------------------------------------------
| | Cash flow from investments | 11.5 | 6.8 | 6.5 |
--------------------------------------------------------------------------------
| | Cash flow from financing | -8.5 | -4.3 | -4.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Increase(+) / decrease (-) in | 1.1 | 0.4 | 0.2 |
| | liquid assets | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Liquid assets at period start | 2.0 | 1.7 | 1.7 |
--------------------------------------------------------------------------------
| | Adjustment for translation | 0.0 | 0.0 | 0.0 |
| | difference | | | |
--------------------------------------------------------------------------------
| | Liquid assets at period end | 3.0 | 2.1 | 2.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT ON CHANGES IN | | | | |
| SHAREHOLDERS' EQUITY | | | | |
--------------------------------------------------------------------------------
| EUR million | Share | Share | Fair | Trans-l | Unrest-ric | Total |
| | Capi- | Premi- | value | ation | ted equity | |
| | tal | um | reser- | diff. | funds and | |
| | | | ves | | retained | |
| | | | | | earnings | |
--------------------------------------------------------------------------------
| Shareholders' | 0.9 | 11.5 | 0.1 | -1.0 | 8.9 | 20.4 |
| equity | | | | | | |
| Jan, | | | | | | |
| 1. 2008 | | | | | | |
--------------------------------------------------------------------------------
| Change | | | | | | |
--------------------------------------------------------------------------------
| Net profit | 0.0 | -11.5 | 0.0 | 0.0 | 7.3 | |
--------------------------------------------------------------------------------
| | | | | | -1.1 | |
--------------------------------------------------------------------------------
| Shareholders' | 0.9 | 0.0 | 0.1 | -1.0 | 15.1 | 15.1 |
| equity | | | | | | |
| Sep, | | | | | | |
| 30. 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | |
--------------------------------------------------------------------------------
| Net profit | | | | | -0.7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ | 0.9 | 0.0 | 0.1 | -0.9 | 14.4 | 14.5 |
| equity | | | | | | |
| Dec, 31. 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change | 0.0 | 0.0 | 0.0 | -0.1 | -8.5 | |
--------------------------------------------------------------------------------
| Net profit | | | | | -1.6 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | 0.9 | 0.0 | 0.2 | -1.0 | 4.3 | 4.3 |
| equity | | | | | | |
| Sep, | | | | | | |
| 30. 2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY SEGMENT | | | | | |
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AMER | 1.7 | 1.2 | 4.1 | 4.2 | 5.8 |
--------------------------------------------------------------------------------
| APAC | 0.3 | 0.2 | 0.6 | 0.7 | 0.8 |
--------------------------------------------------------------------------------
| EROW | 0.3 | 0.5 | 1.2 | 1.4 | 1.9 |
--------------------------------------------------------------------------------
| SSH Group total | 2.2 | 2.0 | 5.9 | 6.3 | 8.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT/LOSS | | | | | |
| BY SEGMENT | | | | | |
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2009 | 2008 | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AMER | 1.1 | 0.5 | 1.6 | 1.9 | 2.7 |
--------------------------------------------------------------------------------
| APAC | 0.2 | 0.2 | 0.3 | 0.5 | 0.4 |
--------------------------------------------------------------------------------
| EROW | 0.1 | 0.3 | 0.3 | 0.8 | 1.1 |
--------------------------------------------------------------------------------
| Common Group | -1.3 | -1.3 | -4.1 | -4.6 | -6.4 |
| expenses* | | | | | |
--------------------------------------------------------------------------------
| SSH Group total | 0.1 | -0.3 | -1.9 | -1.4 | -2.2 |
--------------------------------------------------------------------------------
* Common Group expenses include Group administration expenses (e.g. management
and finance) and product management and R&D expenses for corporate headquarters.
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| KEY FIGURES AND RATIOS | | | | |
--------------------------------------------------------------------------------
| EUR million | 1-9/2009 | 1-9/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 5.9 | 6.3 | 8.5 |
--------------------------------------------------------------------------------
| Operating profit/loss | -1.9 | -1.4 | -2.2 |
--------------------------------------------------------------------------------
| Operating profit/loss, as % of | -32.6 | -22.7 | -25.9 |
| net sales | | | |
--------------------------------------------------------------------------------
| Profit/loss before extraordinary | -0.9 | -0.9 | -1.2 |
| items and taxes | | | |
--------------------------------------------------------------------------------
| Profit/loss before extraordinary | -14.8 | -13.9 | -14.2 |
| items and taxes, as % of net | | | |
| sales | | | |
--------------------------------------------------------------------------------
| Profit/loss before taxes | -1.6 | -0.9 | -1.5 |
--------------------------------------------------------------------------------
| Profit/loss before taxes, as | -27.4 | -13.9 | -18.0 |
| % of net sales | | | |
--------------------------------------------------------------------------------
| Return on investment (%) | -21.6 | -3.3 | -7.4 |
--------------------------------------------------------------------------------
| Return on equity (%) | -22.9 | -4.7 | -10.2 |
--------------------------------------------------------------------------------
| Interest-bearing net liabilities | -6.0 | -16.0 | -16.4 |
--------------------------------------------------------------------------------
| Equity ratio (%) | 78.2 | 92.8 | 91.3 |
--------------------------------------------------------------------------------
| Gearing (%) | -138.5 | -106.1 | -112.8 |
--------------------------------------------------------------------------------
| Gross capital expenditure | 0.0 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| % of net sales | 0.0 | 0.0 | 1.3 |
--------------------------------------------------------------------------------
| R&D expenses | 2.8 | 2.9 | 4.0 |
--------------------------------------------------------------------------------
| % of net sales | 47.1 | 46.7 | 46.6 |
--------------------------------------------------------------------------------
| Personnel, period average | 66 | 79 | 77 |
--------------------------------------------------------------------------------
| Personnel, period end | 63 | 75 | 73 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PER-SHARE DATA | | | |
--------------------------------------------------------------------------------
| EUR | 1-9/2009 | 1-9/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, undiluted | -0.06 | -0.04 | -0.06 |
--------------------------------------------------------------------------------
| Earnings per share, diluted | -0.06 | -0.04 | -0.06 |
--------------------------------------------------------------------------------
| Equity per share | 0.15 | 0.53 | 0.51 |
--------------------------------------------------------------------------------
| No. of shares at period end | 28 798 | 28 550 | 28 584 |
| (thousand) | | | |
--------------------------------------------------------------------------------
| Share performance | | | |
--------------------------------------------------------------------------------
| Average price | 0.81 | 1.41 | 1.48 |
--------------------------------------------------------------------------------
| Low | 0.65 | 0.99 | 0.66 |
--------------------------------------------------------------------------------
| High | 1.24 | 1.69 | 1.69 |
--------------------------------------------------------------------------------
| Share price, period end | 0.72 | 1.05 | 0.70 |
--------------------------------------------------------------------------------
| Market capitalization, period end | 20.7 | 30.0 | 20.0 |
| (EUR million) | | | |
--------------------------------------------------------------------------------
| Volume of shares traded (million) | 3.6 | 2.8 | 3.6 |
--------------------------------------------------------------------------------
| Volume of shares traded, as | 12.6 | 9.8 | 12.5 |
| % of | | | |
| total | | | |
--------------------------------------------------------------------------------
| Value of shares traded (EUR | 2.9 | 3.9 | 4.5 |
| million) | | | |
--------------------------------------------------------------------------------
| Price-to-earnings ratio (P/E) | - | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| EUR million | 09/30/2009 | 09/30/2008 | 12/31/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing commitments outside | | | |
| the balance sheet | | | |
--------------------------------------------------------------------------------
| Maturing within 1 year | 0.5 | 0.7 | 0.7 |
--------------------------------------------------------------------------------
| Maturing between 1 and 5 years | 1.1 | 0.7 | 0.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DISCLAIMER
The content in this report is provided by SSH Communications Security Corp
("SSH") and its third party content providers for your personal information
only, and does not constitute an offer or invitation to purchase any securities.
Nor does it provide any form of advice (investment, tax, legal) amounting to
investment advice, or make any recommendations regarding particular investments
or products. SSH does not provide investment advice or recommendations to buy or
sell its shares or the shares of others. If you are interested in investing in
SSH, please contact your financial adviser for further details and information.
Past performance of SSH shares is not indicative of future results. EXCEPT AS
PROVIDED BY APPLICABLE COMPULSORY LAW SSH EXPRESSLY DISCLAIMS ALL WARRANTIES,
EXPRESSED OR IMPLIED, AS TO THE AVAILABILITY, ACCURACY OR RELIABILITY OF ANY OF
THE CONTENT PROVIDED, OR AS TO THE FITNESS OF THE INFORMATION FOR ANY PURPOSE.
SSH Communications Security Corp will release its next interim report and
financial statements for January 1-December 31, 2009 in February 2010. Further
information will be available on the company's website in due course.
Helsinki, October 21st 2009
SSH COMMUNICATIONS SECURITY CORP
Board of Directors
Jari Mielonen
CEO
For further information, please contact:
Jari Mielonen, CEO, tel. +358 (0)20 500 7400
Mikko Karvinen, CFO, tel. +358 (0)20 500 7419
Distribution:
NASDAQ OMX Helsinki Ltd
Major media
www.ssh.com
