Stock exchange release 17 April 2013 at 8.00 am
Net sales grew 6.2 per cent from the previous year. Profitability improved significantly and operating result was positive. Order backlog growth was strong.
- Net sales EUR 21.2 million (January - March 2012: 19.9), growth 6.2%
- Operating result EUR 1.0 million (-11.9)
- Earnings per share EUR -0.01 (-0.10)
-
Order backlog EUR 50.1 million (41.1), growth 21.8%
As stated earlier, Comptel’s net sales are estimated to grow from the previous year in 2013. Operating profit is estimated to increase to 5 - 10 per cent of net sales. Characteristically a significant part of Comptel’s operating profit and net sales is generated in the second half of the year.
Juhani Hintikka, President and CEO:
”In the first quarter Comptel’s business developed as per our expectations. Net sales grew and we improved our profitability significantly. We closed a major license deal in Argentina. Market situation in Europe remained challenging.
We updated our strategy and objectives for the next three years during the beginning of the year. The strategy for 2013 - 2015 focuses on accelerating the execution of the Event-Analysis-Action strategic framework launched in 2011. This includes scaling up the sales with partners. Together these focus areas constitute the basis for Comptel’s growth strategy. According to our strategy we continued investments in R&D, especially focusing in fulfillment solutions and advanced analytics. We centralised sales, delivery and R&D functions relating to analytics to enable us to react faster to customer needs in the field of analytics solutions.
The outcome of the costs savings program initiated last year was reflected in our first quarter operating result. Improving profitability is our key target for 2013 and we proceeded in achieving this objective as planned.
During the first quarter we secured 6 significant orders, valued over EUR 500,000.”
Business Review of the First Quarter 2013
Comptel’s net sales grew in the first quarter by 6.2 per cent from the previous year, to EUR 21.2 million (19.9). Especially license sales increased the Group’s net sales.
Operating result for the period was EUR 1.0 million (-11.9), which corresponds to 4.9 per cent of net sales (-59.7). The operating result for the first quarter of 2012 includes an impairment loss of EUR 10.2 million. The costs savings measures initiated last year lowered the cost levels of the review period compared to the previous year.
Result before taxes was EUR 0.1 million (-12.4) and net result was EUR -0.6 million (-10.3). Earnings per share for the period under review were EUR -0.01 (-0.10).
Tax expense for the period was EUR 0.7 million (-2.1), of which EUR 0.4 million were withholding taxes. The cumulative amount of outstanding, non-credited double withholding taxes payments since 2004 is EUR 9.7 million.
The Group’s order backlog grew from the previous year and was EUR 50.1 million (41.1) at the end of the period. Maintenance agreements represent EUR 26.7 million (24.3) and other order backlog EUR 23.4 million (16.8) of the total.
Business areas
|
Net sales, EUR million |
1-3 2013 | 1-3 2012 |
Change, % |
2012 |
| Europe East | 3.9 | 3.9 | 0.4 | 16.3 |
| Europe West | 4.5 | 5.0 | -10.5 | 21.0 |
| Asia Pacific | 5.7 | 4.5 | 25.2 | 21.7 |
| Middle East and Africa | 3.5 | 3.8 | -8.2 | 14.5 |
| Americas | 3.6 | 2.7 | 34.4 | 8.9 |
| Total | 21.2 | 19.9 | 6.2 | 82.4 |
|
Operating result, EUR million |
||||
| Europe East | 1.8 | 1.3 | 31.3 | 6.3 |
| Europe West | 1.4 | 2.2 | -36.9 | 9.7 |
| Asia Pacific | 2.8 | 2.0 | 40.7 | 9.5 |
| Middle East and Africa | 1.1 | 1.1 | -0.6 | 3.0 |
| Americas | 2.3 | 1.5 | 56.9 | 3.8 |
| Unallocated costs | -8.3 | -20.0 | -58.5 | -45.8 |
| Total | 1.0 | -11.9 | 108.8 | -13.5 |
|
Operating result, % of net sales |
||||
| Europe East | 45.5 | 34.8 | - | 38.6 |
| Europe West | 31.0 | 44.0 | - | 46.3 |
| Asia Pacific | 49.0 | 43.6 | - | 43.9 |
| Middle East and Africa | 30.5 | 28.2 | - | 20.4 |
| Americas | 63.9 | 54.8 | - | 42.3 |
| Total | 4.9 | -59.7 | - | -16.4 |
Net sales grew significantly in Asia Pacific and Americas and declined in Europe West and Middle East and Africa. Proportional profitability improved in all other business areas except for Europe West.
In January - March, Comptel received 6 significant orders (Q1 2012: 3): 3 policy control & charging, 2 fulfillment and 1 managed services order. As significant orders Comptel reports sold projects and licenses with a value of EUR 500,000 at the minimum.
|
Net sales breakdown, EUR million |
1-3 2013 | 1-3 2012 | Change, % | 2012 |
| Licenses | 4.7 | 3.0 | 57.0 | 16.6 |
| Services | 7.5 | 8.8 | -14.8 | 33.2 |
| Maintenance agreements | 8.9 | 8.1 | 10.3 | 32.6 |
| Total | 21.2 | 19.9 | 6.2 | 82.4 |
License sales grew from the previous year which improved profitability. Maintenance revenue consists of maintenance and support of the delivered systems.
|
Net sales by sales channel, EUR million |
1-3 2013 | 1-3 2012 | Change, % | 2012 |
| Direct sales | 15.8 | 15.8 | 0.0 | 62.1 |
| Partner sales | 5.4 | 4.1 | 30.1 | 20.3 |
| Total | 21.2 | 19.9 | 6.2 | 82.4 |
The share of partner sales increased from the previous year according to our strategy.
Financial Position
| EUR million | 31 March 2013 | 31 Dec 2012 |
Change, % |
31 March 2012 |
Change, % |
| Statement of financial position total | 65.9 | 68.5 | -3.8 | 62.8 | 4.9 |
| Liquid assets | 4.5 | 4.8 | -6.3 | 6.8 | -33.8 |
| Trade receivables, gross | 25.8 | 24.1 | 7.1 | 25.8 | 0.1 |
| Bad debt provision | -1.2 | -1.3 | -7.4 | -0.8 | 40.5 |
| Trade receivables, net | 24.6 | 22.8 | 7.9 | 24.9 | -1.3 |
| Accrued income | 12.3 | 12.6 | -2.2 | 12.7 | -2.9 |
| Deferred income related to partial debiting | 3.0 | 2.8 | 6.3 | 1.5 | 104.0 |
| Interest-bearing debt | 10.0 | 8.4 | 19.8 | 3.0 | 234.4 |
| Equity ratio, per cent | 49.8 | 46.8 | 6.5 | 56.9 | -12.6 |
Statement of financial position total was EUR 65.9 million. Operating cash flow was EUR 0.0 million (-0.7) in the first quarter.
The trade receivables were EUR 24.6 million (24.9) at the end of the period. The accrued income was EUR 12.3 million (12.7). The deferred income related to partial debiting was EUR 3.0 million (1.5).
Comptel Corporation withdrew a loan of EUR 1.0 million during the review period. Comptel has a loan facility arrangement amounting to EUR 20 million. It includes a term-loan of EUR 7.0 million and a revolving credit facility of EUR 13.0 million. The term-loan of EUR 7.0 million was withdrawn in full and EUR 2.0 million had been utilised from the revolving credit facility. The loan facilities are valid until January 2016. The equity ratio was 49.8 per cent (56.9) and the gearing ratio was 20.9 per cent (-13.1).
Research and Development (R&D)
| EUR million | 1-3 2013 | 1-3 2012 | Change, % | 2012 |
| Direct R&D expenditure | 4.2 | 5.2 | -19.2 | 18.6 |
|
Capitalisation of R&D expenditure according to IAS 38 |
-1.1 | -1.5 | -26.6 | -6.2 |
| R&D depreciation and impairment charges | 0.9 | 0.6 | 36.6 | 2.8 |
| R&D expenditure, net | 4.0 | 4.3 | -8.3 | 15.3 |
| Direct R&D expenditure, % of net sales | 19.8 | 26.0 | - | 22.5 |
Direct R&D expenditure represented 19.8 per cent (26.0) of net sales.
Comptel’s R&D expenditure was mainly targeted at the service fulfillment automation of telecom operators and to the management and real-time analysis of rapidly increasing data traffic. Comptel seeks global market leadership in these areas where key business challenges of operators and service providers will be solved. In addition, the company is developing an integrated software platform which will enable a cost-efficient and solution-based R&D.
In 2013, the company focuses on developing its offering within the Fulfillment and advanced analytics product areas. In terms of advanced analytics, integrating the acquired Xtract advanced analytics into the Comptel software platform is a priority. With a combined offering including real-time analytics, Comptel can help operators to improve customer loyalty as well as enable individually targeted marketing. One major software release was launched in these respective product areas during the review period.
Investments
| EUR million | 1-3 2013 | 1-3 2012 | Change, % | 2012 |
| Gross investments in property, plant and equipment and intangible assets | 0.2 | 3.2 | -95.2 | 4.5 |
The investments comprised of devices, software and furnishings. The investments were funded through cash flow from operations. The number for 2012 includes the acquisition of Xtract Corporation.
Personnel
| 31 March 2013 | 31 March 2012 | Change, % | 31 Dec 2012 | |
| Number of employees at the end of period | 686 | 697 | -1.6 | 679 |
| 1-3 2013 | 1-3 2012 | Change, % | 1-12 2012 | |
| Average number of personnel during the period | 683 | 678 | 0.7 | 700 |
The number of employees remained at the previous year’s level. In the first quarter, the personnel expenses were 53.9 per cent of net sales (52.9).
At the end of the period, 30.6 per cent (33.0) of the personnel were located in Finland, 26.5 per cent (23.7) in Malaysia, 10.6 per cent (9.6) in Bulgaria, 7.9 per cent (6.7) in the United Arab Emirates, 6.7 per cent (7.3) in the United Kingdom, 3.8 per cent (3.3) in India, 2.8 per cent (5.2) in Norway, and 11.1 per cent (11.2) in other countries where Comptel operates.
Comptel share
The closing share price of the period was EUR 0.40 (0.57). Comptel’s market value at the end of the period was EUR 42.8 million (60.9).
| Comptel share | 1-3 2013 | 1-3 2012 | Change, % | 2012 |
| Shares traded, million | 4.3 | 10.9 | -60.6 | 26.7 |
| Shares traded, EUR million | 1.7 | 6.5 | -73.9 | 13.4 |
| Highest price, EUR | 0.45 | 0.63 | -28.6 | 0.63 |
| Lowest price, EUR | 0.38 | 0.49 | -22.5 | 0.37 |
Of Comptel’s outstanding shares, 7.0 per cent (5.6) were nominee registered or held by foreign shareholders at the end of the period.
The company held 161,219 of its own shares at the end of the period, which is 0.15 per cent of the total number of its shares. The total counter-book value of the shares held by the company was EUR 3,224.
No share options were distributed during the review period.
Corporate Governance
The Annual General Meeting (AGM), held on 20 March 2013, re-elected Mr Pertti Ervi, Mr Hannu Vaajoensuu, Mr Petteri Walldén, Ms Eriikka Söderström and Mr Antti Vasara as members of the Board of Directors. In its meeting held after the AGM, the Board of Directors elected Mr Pertti Ervi as chairman and Mr Hannu Vaajoensuu as vice chairman. The Board decided not to set up committees.
The AGM appointed Ernst & Young Oy as the company’s auditor. Mr Heikki Ilkka is acting as the principal auditor.
The AGM resolved that no dividend payment will be made for 2012.
The AGM authorised the Board of Directors to decide on share issues amounting to a maximum of 21,400,000 new shares and on repurchase or conveying of the company's own shares up to a maximum number of 10,700,000 shares. The authorisations are valid until 30 June 2014. However, the authorisation to implement the company's share-based incentive programs is valid until five years from the AGM resolution.
A separate stock exchange release about the authorisations given and other decisions made by the Annual General Meeting was published on 20 March 2013.
Events after the Reporting Period
There were no significant events after the reporting period.
Near-term Risks and Uncertainties
Comptel develops dynamic end-to-end solutions for leading operators globally in the telecom field. This requires Comptel to understand correctly the trends taking place in its business environment and the needs of its customers and resellers by each region. Failure to identify market conditions, address customers’ needs and develop its products in a timely way may significantly undermine the growth of Comptel’s business and its profitability.
Characteristics to Comptel’s field of industry are significant quarterly variations of net sales and profit, which are related to customers’ purchasing behaviour and the timing of major single deals.
Comptel's business consists of deliveries of large productised IT system and the value of a single project may be several million euros. Therefore, the risk or credit risk associated with a single project or an individual customer may be significant. Furthermore, some of Comptel's customers operate in countries that are or have been war zone which in part may increase credit risk.
Comptel operates globally so it is exposed to risks arising from different currency positions. Exchange rate changes between the Euro, which is the company’s reporting currency, and the US Dollar, UK Pound Sterling and Malaysian Ringgit affect the company’s net sales, expenses and net profit.
The application process to prevent Comptel’s double taxation is still pending with the Ministry of Finance in Finland. However, the process between the states is very slow and the timing of a change is hard to forecast. The interpretation of tax treaties may result in different views between the countries in question. This could mean that the double taxation will prevail.
The risks and uncertainties of Comptel are described more in detail in the company’s financial statements and the Board of Directors’ report for 2012.
Outlook
As stated earlier, Comptel’s net sales are estimated to grow from the previous year in 2013. Operating profit is estimated to increase to 5 - 10 per cent of net sales.
Characteristically a significant part of Comptel’s operating profit and net sales is generated in the second half of the year.
TABLE PART
The interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU. The accounting policies and methods of computation adopted in the financial statements are consistent with those of the annual financial statements for the year ended 2012 except for the application of new or amended standards and interpretations as set forth in note 1.
Comptel has corrected retrospectively an error discovered in the figures for the reporting period Q1/2012. The nature of the error is described in note 12.
All figures in the financial report have been rounded and consequently the sum of the individual figures can deviate from the sum figure. The interim report is unaudited.
|
Consolidated Statement of Comprehensive Income (EUR 1,000) |
1 Jan – 31 Mar 2013 |
1 Jan – 31 Mar 2012* |
| Net sales | 21,171 | 19,926 |
| Other operating income | 1 | 1 |
| Materials and services | -1,114 | -1,622 |
| Employee benefits | -11,402 | -10,541 |
| Depreciation, amortisation and impairment charges | -1,255 | -11,128 |
| Other operating expenses | -6,358 | -8,538 |
| -20,130 | -31,829 | |
| Operating profit/loss | 1,042 | -11,901 |
| Financial income | 203 | 437 |
| Financial expenses | -1,155 | -914 |
| Profit/loss before income taxes | 90 | -12,379 |
| Income taxes | -703 | 2,094 |
| Profit/loss for the period | -613 | -10,285 |
| Other comprehensive income | ||
| Other comprehensive income to be reclassified to profit or loss in subsequent periods | ||
| Translation differences | -100 | 3 |
| Cash flow hedges | - | 742 |
| Income tax relating to components of other comprehensive income | - | -182 |
| Total other comprehensive income | -100 | 563 |
| Total comprehensive income for the period | -713 | -9,721 |
| Profit/loss attributable to: | ||
| Equity holders of the parent company | -613 | -10,285 |
| Total comprehensive income attributable to: | ||
| Equity holders of the parent company | -713 | -9,721 |
| Shareholders of the parent company: | ||
| Earnings per share, EUR | -0.01 | -0.10 |
| Earnings per share, diluted, EUR | -0.01 | -0.10 |
*Q1/2012 error has been corrected.
| Consolidated Statement of Financial Position (EUR 1,000) | 31 Mar 2013 | 31 Dec 2012 |
| Assets | ||
| Non-current assets | ||
| Goodwill | 2,646 | 2,646 |
| Other intangible assets | 13,393 | 13,350 |
| Tangible assets | 2,110 | 1,518 |
| Investments in associates | 1,076 | 1,076 |
| Available-for sale financial assets | 87 | 87 |
| Deferred tax assets | 4,128 | 3,804 |
| Other non-current receivables | 498 | 493 |
| 23,938 | 22,974 | |
| Current assets | ||
| Trade and other current receivables | 37,420 | 40,660 |
| Cash and cash equivalents | 4,515 | 4,817 |
| 41,935 | 45,476 | |
| Total assets | 65,873 | 68,451 |
| Equity and liabilities | ||
| Equity attributable to equity holders of the parent company | ||
| Share capital | 2,141 | 2,141 |
| Fund of invested non-restricted equity | 243 | 243 |
| Translation differences | -736 | -636 |
| Retained earnings | 24,675 | 25,208 |
| Total equity | 26,323 | 26,956 |
| Non-current liabilities | ||
| Deferred tax liabilities | 3,306 | 3,302 |
| Provisions | 563 | 787 |
| Non-current financial liabilities | 5,750 | 5,275 |
| 9,619 | 9,364 | |
| Current liabilities | ||
| Provisions | 1,443 | 1,511 |
| Current financial liabilities | 4,261 | 3,082 |
| Trade and other current liabilities | 24,227 | 27,537 |
| 29,931 | 32,130 | |
| Total liabilities | 39,550 | 41,494 |
| Total equity and liabilities | 65,873 | 68,451 |
|
Consolidated Statement of Cash Flows (EUR 1,000) |
1 Jan – 31 Mar 2013 | 1 Jan – 31 Mar 2012* |
| Cash flows from operating activities | ||
| Profit/loss for the period | -613 | -10,285 |
| Adjustments: | ||
| Non-cash transactions or items that are not part of cash flows from operating activities | 1,748 | 11,663 |
| Interest and other financial expenses | 563 | 88 |
| Interest income | -4 | -9 |
| Income taxes | 703 | -2,094 |
| Change in working capital: | ||
| Change in trade and other current receivables | 2,850 | 1,888 |
| Change in trade and other current liabilities | -3,717 | -83 |
| Change in provisions | -292 | -189 |
| Interest and other financial expenses paid | -86 | -88 |
| Interest received | 2 | 7 |
| Income taxes paid and tax returns received | -1,110 | -1,560 |
| Net cash from operating activities | 45 | -660 |
| Cash flows from investing activities | ||
| Acquisition of subsidiaries, net of cash acquired | - | -1,812 |
| Investments in tangible assets | -142 | -202 |
| Investments in intangible assets | -10 | -62 |
| Investments in development projects | -1,092 | -1,488 |
| Change in other non-current receivables | -15 | -32 |
| Net cash used in investing activities | -1,259 | -3,595 |
| Cash flows from financing activities | ||
| Proceeds from borrowings | 2,000 | 2,021 |
| Repayment of borrowings | -1,004 | -305 |
| Lease payments | -13 | -10 |
| Net cash used in financing activities | 982 | 1,706 |
| Net change in cash and cash equivalents | -232 | -2,549 |
| Cash and cash equivalents at the beginning of the period | 4,817 | 9,401 |
| Cash and cash equivalents at the end of the period | 4,515 | 6,818 |
| Change | -302 | -2,583 |
| Effects of changes in foreign exchange rates | -70 | 34 |
*Q1/2012 error has been corrected.
| Consolidated Statement of Changes in Equity | |||||||
| Equity attributable to equity holders of the parent company | |||||||
| EUR 1,000 | Share capital | Other reserves | Translation differences | Fair value reserve | Treasury shares | Retained earnings | Total |
|
Equity at 31 Dec 2011 |
2,141 | 178 | -682 | -589 | -375 | 41,133 | 41,805 |
| Dividends | -3,207 | -3,207 | |||||
| Transfer of treasury shares | 66 | 14 | -14 | 66 | |||
| Share-based compensation* | 84 | 84 | |||||
| Total comprehensive income for the period* | 3 | 560 | -10,285 | -9,721 | |||
|
Equity at 31 Mar 2012 |
2,141 | 243 | -679 | -29 | -361 | 27,712 | 29,027 |
*Q1/2012 error has been corrected.
| Consolidated Statement of Changes in Equity | ||||||
| Equity attributable to equity holders of the parent company | ||||||
| EUR 1,000 | Share capital | Other reserves | Translation differences | Treasury shares | Retained earnings | Total |
|
Equity at 31 Dec 2012 |
2,141 | 243 | -636 | -361 | 25,568 | 26,956 |
| Share-based compensation | 80 | 80 | ||||
| Total comprehensive income for the period | -100 | -613 | -713 | |||
|
Equity at 31 Mar 2013 |
2,141 | 243 | -736 | -361 | 25,036 | 26,323 |
Notes
1. Application of new or amended standards and interpretations
On 1 January 2013 the Group adopted the following new and amended standards and interpretations endorsed by the EU and that are applicable to Comptel:
Amendments to IAS 1 Presentation of Financial Statements. The major change is the requirement to group items of other comprehensive income as to whether or not they will be reclassified subsequently to profit or loss when specific conditions are met.
The other new or amended standards in force as of 1 January 2013 did not have an impact on the accounting policies and methods of computation.
2. Segment information
Net sales by segment
| EUR 1,000 |
1 Jan – 31 Mar 2013 |
1 Jan – 31 Mar 2012 |
| Europe East | 3,880 | 3,866 |
| Europe West | 4,475 | 5,001 |
| Asia-Pacific | 5,650 | 4,511 |
| Middle East and Africa | 3,526 | 3,841 |
| Americas | 3,640 | 2,708 |
| Group total | 21,171 | 19,926 |
Operating profit/loss by segment
| EUR 1,000 |
1 Jan – 31 Mar 2013 |
1 Jan – 31 Mar 2012* |
| Europe East | 1,767 | 1,345 |
| Europe West | 1,387 | 2,199 |
| Asia-Pacific | 2,770 | 1,969 |
| Middle East and Africa | 1,077 | 1,084 |
| Americas | 2,326 | 1,483 |
| Group unallocated expenses | -8,285 | -19,981 |
| Group operating profit/loss total | 1,042 | -11,901 |
| Financial income and expenses | -952 | -477 |
| Group profit/loss before income taxes | 90 | -12,379 |
*Q1/2012 error has been corrected.
3. Business combinations
On 9 February 2012, Comptel Corporation acquired all shares of Xtract Oy, a Finnish software company specialising in analytics.
The total consideration (enterprise value) was EUR 3,100 thousand. The actual purchase price was EUR 2,075 thousand.
4. Impairment loss on goodwill
Comptel changed the allocation method of goodwill during the first quarter of the year 2012. Due to the change, an impairment testing was performed at the new cash generating unit level which was lower level compared to the one used during financial year 2011.
As a result of impairment testing Comptel recorded an impairment loss of EUR 10,179 thousand in the first quarter result in 2012.
5. Income tax
Income tax expense according to the statement of comprehensive income for the period was EUR 703 thousand (EUR 2,904 thousand positive in 2012). A change of EUR 2,494 thousand in deferred tax liabilities was booked in connection with the impairment of goodwill in the first quarter of 2012.
In 2006, the Board of Adjustment of the Tax Office for Major Corporations refused to accept the crediting of taxes withheld at source in taxation of 2004 and 2005.
The application process to prevent Comptel’s double taxation is still pending with the Ministry of Finance in Finland. However, the process between the states is very slow and the timing of a change is hard to forecast. The interpretation of tax treaties may result in different views between the countries in question. This could mean that the double taxation will prevail.
According to the Board of Adjustment’s decision currently in force, Comptel Corporation has expensed taxes withheld at source amounting to EUR 413 thousand in January - March (EUR 543 thousand).
6. Tangible assets
| EUR 1,000 | 1 Jan – 31 Mar 2013 | 1 Jan – 31 Mar 2012 |
| Additions | 142 | 209 |
| Disposals | -26 | -141 |
7. Related party transactions
The Comptel Group have a related party relationship with its associate, the Board of Directors, the Executive Board and also with people and companies under Comptel management’s influence.
Transactions which have been entered into with related parties are as follows:
| EUR 1,000 | 1 Jan – 31 Mar 2013 | 1 Jan – 31 Mar 2012 |
| Associate | ||
| Other operating income | 0 | 1 |
| Interest income | 2 | 2 |
| EUR 1,000 | 31 Mar 2013 | 31 Dec 2012 |
| Associate | ||
| Non-current receivables | 100 | 98 |
| Trade receivables | 0 | 1 |
Remuneration to key management
Key management personnel compensation includes the employee benefits of the members of the Board of Directors and the Executive Board.
| EUR 1,000 | 1 Jan – 31 Mar 2013 | 1 Jan – 31 Mar 2012 |
| Salaries and other short-term employee benefits | 413 | 557 |
| Share-based payments | 79 | 45 |
| Total | 492 | 602 |
Guarantees and other commitments
| EUR 1,000 | 31 Mar 2013 | 31 Dec 2012 |
| Guarantees | 70 | 70 |
8. Commitments
Minimum lease payments on non-cancellable office facilities and other operating leases are payable as follows:
| EUR 1,000 | 31 Mar 2013 | 31 Dec 2012 |
| Less than one year | 2,605 | 2,934 |
| Between one and five years | 5,618 | 6,087 |
| Total | 8,223 | 9,021 |
The group had no material capital commitments for the purchase of tangible assets at 31 March 2013 and 31 March 2012.
9. Contingent liabilities
| EUR 1,000 | 31 Mar 2013 | 31 Dec 2012 |
| Bank guarantees | 2,391 | 2,969 |
| Corporate mortgages | 200 | 200 |
| EUR 1,000 | 31 Mar 2013 | 31 Dec 2012 |
| Contingent liabilities on behalf of others | ||
| Guarantees | 121 | 123 |
10. Key figures
| Financial summary | 1 Jan - 31 Mar 2013 | 1 Jan - 31 Mar 2012* |
| Net sales, EUR 1,000 | 21,171 | 19,926 |
| Net sales, change % | 6.2 | 18.4 |
| Operating profit/loss, EUR 1,000 | 1,042 | -11,901 |
| Operating profit/loss, change % | 108.8 | -12,819.3 |
| Operating profit/loss, as % of net sales | 4.9 | -59.7 |
| Profit/loss before taxes, EUR 1,000 | 90 | -12,379 |
| Profit/loss before taxes, as % of net sales | 0.4 | -62.1 |
| Return on equity, % | - | - |
| Return on investment, % | - | - |
| Equity ratio, % | 49.8 | 56.9 |
| Gross investments in tangible and intangible assets, EUR 1,0001) | 152 | 3,171 |
| Gross investments in tangible and intangible assets, as % of net sales | 0.7 | 15.9 |
| Capitalisations according to IAS 38 to intangible assets, EUR 1,000 | 1,092 | 1,488 |
| Research and development expenditure, EUR 1,000 | 4,191 | 5,184 |
|
Research and development expenditure, as % of net sales |
19.8 | 26.0 |
| Order backlog, EUR 1,000 | 50,061 | 41,110 |
| Average number of employees during the period | 683 | 678 |
| Interest-bearing net liabilities, EUR 1,000 | 5,497 | -3,825 |
| Gearing ratio, % | 20.9 | -13.1 |
*Q1/2012 error has been corrected.
1) Includes the acquisition of Xtract in 2012. The gross capital investments excluding the acquisition amounted to EUR 264 thousand, which is 1.3 per cent of net sales. The figure does not include investments in development projects.
| Per share data |
1 Jan – 31 Mar 2013 |
1 Jan – 31 Mar 2012* |
| Earnings per share (EPS), EUR | -0.01 | -0.10 |
| EPS diluted, EUR | -0.01 | -0.10 |
| Equity per share, EUR | 0.25 | 0.27 |
| Dividend per share, EUR | - | - |
| Dividend per earnings, % | - | - |
| Effective dividend yield, % | - | - |
| P/E ratio | - | - |
| Adjusted number of shares at the end of the period | 107,054,810 | 107,054,810 |
| of which the number of treasury shares | 161,219 | 156,499 |
| Outstanding shares | 106,893,591 | 106,898,311 |
| Adjusted average number of shares during the period | 106,863,518 | 106,765,118 |
| Average number of shares, dilution included | 106,863,518 | 106,765,118 |
*Q1/2012 error has been corrected.
11. Definition of key figures
| Operating margin % | = | Operating profit/loss | x100 |
| Net sales | |||
| Profit margin (before income taxes) % | = | Profit/loss before taxes | x100 |
| Net sales | |||
| Return on equity % (ROE) | = | Profit/loss | x100 |
| Total equity (average during year) | |||
| Return on investment % (ROI) | = | Profit/loss before taxes + financial expenses | x100 |
| Total equity + interest bearing liabilities (average during the year) | |||
| Equity ratio % | = | Total equity | x100 |
| Statement of financial position total – advances received | |||
| Gross investments in tangible and intangible assets, as % of net sales | = | Gross investments in tangible and intangible assets | x100 |
| Net sales | |||
| Research and development expenditure, as % of net sales | = | Research and development expenditure | x100 |
| Net sales | |||
| Gearing ratio % | = | Interest-bearing liabilities – cash and cash equivalents | x100 |
| Total equity | |||
| Earnings per share (EPS) | = | Profit/loss for the financial year attributable to equity shareholders | |
| Average number of outstanding shares for the financial year | |||
| Equity per share | = | Equity attributable to the equity holders of the parent company | |
| Adjusted number of shares at the end of period | |||
| Dividend per share | = | Dividend | |
| Adjusted number of shares at the end of period | |||
| Dividend per earnings % | = | Dividend per share | x100 |
| Earnings per share (EPS) | |||
| Effective dividend yield % | = | Dividend per share | x100 |
| Share closing price at end of period | |||
| P/E ratio | = | Share closing price at end of period | |
| Earnings per share (EPS) | |||
12. Corrections to figures reported Q1/2012
An error was discovered in the line item Employee benefits for the period Q1/2012. The error has been corrected retrospectively. The error was related to the calculation of option costs.
The earnings per share figure has also been restated. Due to the rounding it did not have impact on the key figure. The correction did not impact the amount of equity.
The figures for Q1/2012 were changed as follows:
| Reported figures | Corrected figures | |
|
Consolidated Statement of Comprehensive Income (EUR 1,000) |
1 Jan – 31 Mar 2012 | 1 Jan – 31 Mar 2012 |
| Net sales | 19,926 | 19,926 |
| Other operating income | 1 | 1 |
| Materials and services | -1,622 | -1,622 |
| Employee benefits | -10,672 | -10,541 |
| Depreciation, amortisation and impairment charges | -11,128 | -11,128 |
| Other operating expenses | -8,538 | -8,538 |
| -31,959 | -31,829 | |
| Operating profit/loss | -12,032 | -11,901 |
| Financial income | 437 | 437 |
| Financial expenses | -914 | -914 |
| Profit/loss before income taxes | -12,509 | -12,379 |
| Income taxes | 2,094 | 2,094 |
| Profit/loss for the period | -10,416 | -10,285 |
| Other comprehensive income | ||
| Cash flow hedges | 742 | 742 |
| Translation differences | 3 | 3 |
| Income tax relating to components of other comprehensive income | -182 | -182 |
| Total comprehensive income for the period | -9,852 | -9,721 |
| Profit/loss attributable to: | ||
| Equity holders of the parent company | -10,416 | -10,285 |
| Total comprehensive income attributable to: | ||
| Equity holders of the parent company | -9,852 | -9,721 |
| Shareholders of the parent company: | ||
| Earnings per share, EUR | -0.10 | -0.10 |
| Earnings per share, diluted, EUR | -0.10 | -0.10 |
Schedule for Comptel’s interim reports in 2013:
January-June 16 July 2013
January-September 16 October 2013
COMPTEL CORPORATION
Board of Directors
Additional information:
Mr Juhani Hintikka, President and CEO, tel. +358 9 700 1131
Mr Mikko Hytönen, CFO, tel. +358 40 758 5801
Distribution:
NASDAQ OMX Helsinki
Major media
www.comptel.com