TELESTE CORPORATION INTERIM REPORT 22.4.2009 AT 09:00
TELESTE CORPORATION INTERIM REPORT 1 JANUARY TO 31 MARCH 2009
- Net sales amounted to EUR 25.6 (27.2) million, a fall of 5.8% over the year of
comparison.
- Operating profit amounted to EUR -1.2 (0.9) million.
- Undiluted result per share equalled EUR -0.07 (EUR 0.03).
- Orders received amounted to EUR 26.0 (29.4) million, a drop of 11.5% over the
year of comparison.
- Orders received by Broadband Cable Networks stood at EUR 22.6 (26.0) million.
Operating profit was in the red.
- Orders received by Video Networks amounted to EUR 3.4 (3.3) million. Operating
profit was in the black.
- Offering of services was strengthened by acquisition in line with the
strategy.
Decline in Net Sales and Profit
Year-on-year net sales decreased by 5.8% standing at EUR 25.6 (27.2) million.
Owing to the general tight situation in the financial market our main customers,
i.e. the European cable operators, have delayed maintenance investments on their
networks. Moreover, strengthening of the euro has decreased investment
opportunities among our customers, for instance, in the Eastern Europe.
Operating profit fell clearly from the year of comparison standing at EUR -1.2
(0.9) million, which is -4.7% (3.2%) of net sales. This decline in the operating
profit was due to reduced product deliveries caused by delayed investment
decisions. Undiluted result per share equalled EUR -0.07 (EUR 0.03).
Orders received diminished over the previous year by 11.5% standing at EUR 26.0
(29.4) million. Order backlog totalled EUR 24.1 (23.7) million. Order backlog
includes the order of EUR 12.0 million secured in India in June 2008 for the
Luminato headend solution with deliveries scheduled to begin towards the end of
2009.
Changes in Group Structure
Broadband Cable Networks' offering of services was strengthened on 1 January
2009 by the acquisition of three German companies: Antel GmbH, the MKS companies
and YoungNet GmbH. The acquisition price for the relevant capital stock stood at
EUR 8.8 million. This price may increase subject to development of the net
profit of the acquired companies in the next two years. In our estimate, the
effect of these acquisitions on Teleste net sales for 2009 will be more than EUR
30 million and the operating profit will be positive. The acquisitions were paid
for by using cash assets and a bank loan. At the same time Teleste Services GmbH
with 100% holding of the acquired companies was set up in Germany.
With these acquisitions Teleste's holding in the German Cableway AG has
increased up to 50%. Share equal to Teleste's holding in Cableway AG is
presented under the Financial Items.
Business Areas
Net sales of Broadband Cable Networks stood at EUR 21.3 (23.0) million, a fall
of 7.3% over the period of comparison. In terms of volume, deliveries of
products decreased clearly over the period of comparison, whereas the share of
services increased significantly with the acquisition. Operating profit stood at
EUR -1.4 (0.9) million making -6.4% (3.9%) of the net sales. Orders received by
Broadband Cable Networks decreased over the year of comparison amounting to EUR
22.6 (26.0) million. Order backlog totalled EUR 20.4 (22.2) million, which
includes the order secured in India in June 2008 of EUR 12 million for the
Luminato headend solution. 1 January 2009 three companies were acquired in
Germany to strengthen the offering of services provided by the business area.
Net sales of Video Networks was on a par with the period of comparison amounting
to EUR 4.3 (4.2) million. Operating profit amounted to EUR 0.2 (-0.02) million.
Orders received by Video Networks amounted to EUR 3.4 (3.3) million. Order
backlog totalled EUR 3.7 (1.5) million.
Personnel
At the end of March the Group employed 1001 people (2008: 686, 2007: 639), out
of which 453 (2008: 461 and 2007: 448) were working in Finland. The acquisitions
in Germany increased the number of personnel by 340. No hired personnel was used
in period under review (2008: 37 and 2007: 78). Layoffs involving personnel
stationed in Finland commenced at the end of 2008. Furthermore, in an uncertain
market situation preparations for additional layoffs have been taken designed to
adapt the company operations to the tough-to-predict market situation without
compromising the company's potential for growth.
R&D and Investments
The average number of persons working in R&D related assignments was 162 (2008:
158 and 2007: 145). As of beginning of April 2009 the number of people working
in R&D will decrease by 23 in line with the outsourcing contract made with
Cybercom Plenware. This solution supports the implementation of our strategy of
business growth, enables focusing on core business and provides flexibility to
the R&D personnel resources.
Product development expenses for Q1 stood at EUR 3.2 (3.2) million making 12.5%
(11.8%) of the net sales. The relevant efforts were mainly focused on further
development of the IP based Luminato video processing system and the development
of the next generation video surveillance transfer system. Activated R&D
expenses stood at EUR 0.5 (0.8) million and depreciation on previous activation
items equalled EUR 0.6 (0.4) million. Some 70% of product development expenses
involved further development of product platforms currently in production and
their maintenance as well as customer-specific product modifications.
Investments for the Group totalled EUR 10.8 (1.0) million. These mainly involved
strengthening of the Broadband Cable Networks' services business. The quoted
figure for investments includes the acquisition price of EUR 8.8 million paid
for the three German companies. The investments also include estimated
additional contract prices of EUR 1.5 million related to previously performed
acquisitions. Product development investments totalled EUR 0.5 (0.8) million.
To boost productivity Teleste focuses its operations involving production in
Finland to one spot; a decision has been made on extension of a production and
store building next to the head office in Littoinen. The extension investment
will be completed at the end of 2009 and the related expenses are estimated to
be approximately EUR 3 million. The factory building in Nousiainen was sold in
April 2009, but production on the premises will continue to the end of the year
by way of a tenancy agreement.
Financing
Operating cash flow stood at EUR 1.0 (0.6) million. In the period under review
the interest-bearing debt increased by 4.8 million. The increased debt was used
to finance acquisitions for the Broadband Cable Networks business area. At the
end of March, interest-bearing debt stood at EUR 15.7 (11.7) million. At the end
of the review period, liquid funds stood at EUR 7.3 (8.8) million. At the end of
the review period, the amount of unused stand-by credits amounted to EUR 26.0
(21.0) million. The current stand-by credits of EUR 40.0 million run till
November 2013. The Group's gearing was 18.6% (6.2%) and the equity ratio was
51.8% (60.0%).
Teleste hedges main exchange rate risks of forecasted currency flows for six
months ahead.
Shares and Shareholders
With stock purchases performed on 14 January 2009, holding by EM Group Oy of the
total number of shares and votes of Teleste Corporation stood at 5.04%.
With stock purchases performed on 29 January 2009, holding by EM Group Oy of the
total number of shares and votes of Teleste Corporation stood at 10.57%.
With stock purchases performed on 10 February 2009, holding by Reima Kuisla of
the total number of shares and votes of Teleste Corporation stood at 5.59%.
With stock purchases performed on 25 February 2009, holding by Reima Kuisla of
the total number of shares and votes of Teleste Corporation stood at 0,00%.
With stock purchases performed on 25 February 2009, holding by EM Group Oy of
the total number of shares and votes of Teleste Corporation stood at 20.32%.
In the period under review, the trading price of shares fluctuated between EUR
2.25 (5.90) and EUR 4.18 (7.49). The closing price at the end of March was EUR
3.18 (6.78). According to the Finnish Central Security Depository, the number of
shareholders at the end of the period was 5,415 (5,193). Foreign ownership
accounted for 7.9% (18.7%). The trading in NASDAQ OMX Helsinki Oy with the
shares of Teleste amounted to EUR 21.1 (23.4) with the number of shares
totalling 5.9 (3.5) million.
At the end of March, Teleste and its subsidiaries were in the possession of
844,721 own shares. In the period under review, the number of own shares
purchased amounted to 78,530.
Decisions by the Annual General Meeting
On 7 April 2009, the Annual General Meeting (AGM) confirmed the financial
statements for 2008 and discharged the Board and the CEO from liability for the
financial period. The AGM confirmed the Board's proposed dividend of EUR 0.12
per share. The dividend was paid out on 21 April 2009.
The AGM decided that the Board of Directors shall consist of six members. Marjo
Raitavuo was elected as the Chairman of the Board with Pertti Ervi and Petteri
Walldén as new Board members. Tero Laaksonen, Pertti Raatikainen and Kai Telanne
were re-elected members of the Board.
Authorised Public Accountants KPMG Oy Ab continue as the auditor until the next
AGM. Esa Kailiala was approved as auditor-in-charge.
The AGM authorised the Board to acquire the maximum of 900,000 of the company's
own shares and to convey the maximum of 1,744,721 company's own shares. The AGM
also authorised the company Board to issue 10,000,000 new shares. Pursuant to
the special rights provided by the company, the maximum number of significant
shares is 5,000,000; these special rights are included in the authorisation to
issue 10,000,000 new shares.
These authorisations will be valid until the AGM due to be held in 2010.
Significant Short-Term Risks and Uncertainty Factors for the Business Areas
Potential ownership and debt rearrangements among Teleste's clientele may slow
down the folding out of some investments in the business of Broadband Cable
Networks.
Strengthening of order backlog for Video Networks is dependent on timing of the
public sector decisions.
Inactive situation in the financial markets may lead to delays in the customers'
investment plans and weakening solvency. The strength of the euro in relation to
the US dollar may further erode Teleste's competitive edge. Introduction to the
market of new competing technologies is a characteristic risk factor for both of
our business areas.
Outlook
The offering of services to private households by the operator clientele of
Broadband Cable Networks will remain relatively stable even in an uncertain
market situation. Demand for the network services provided by the business area
is growing particularly in Germany. Due to the difficult situation in the
financial markets the cable operators are proceeding cautiously with regard to
their network investments. In our view, in the current year deliveries of
product solutions provided by Broadband Cable Networks will remain under the
2008 level with the price competition increasing further.
Increased needs for security and more effective traffic infrastructure maintain
demand for the Video Networks' solutions on the same level with the previous
year.
Teleste will keep its strong market position in the core markets and continue to
implement its strategy in a goal-directed manner while adapting its cost
structure as required by the economic situation. The recent strategic
investments in the services business performed by Teleste will cushion the
cyclic pattern in the company net sales under the uncertain market conditions.
Due to delays in network investments the company action plan prepares for net
sales lower than that of the previous year and for a clear drop in profitability
in the first half of the year. In the second half of the year, we expect the
market to pick up to some degree based on the investment plans of the operators.
However, we estimate that profitability for the whole year will fall clearly
from the last year's level.
Teleste's interim report for the January - June period will be published on 22
July 2009.
21.4.2009
Teleste Corporation Jukka Rinnevaara
Board of Directors CEO
This interim report has been compiled in compliance with IAS 34, as it is
accepted within EU, using the recognition and valuation principles with those
used in the Annual Report. The data stated in this report is unaudited.
--------------------------------------------------------------------------------
| STATEMENT OF COMPREHENSIVE | 1-3/2009 | 1-3/2008 | Change % | 1-12/2008 |
| INCOME (TEUR) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Turnover | 25 604 | 27 192 | -5.8 % | 108 695 |
--------------------------------------------------------------------------------
| | Other operating income | 1 113 | 407 | 173.5 % | 1 820 |
--------------------------------------------------------------------------------
| | Materials and services | -11 903 | -13 450 | -11.5 % | -49 145 |
--------------------------------------------------------------------------------
| | Personnel expenses | -10 018 | -8 020 | 24.9 % | -33 226 |
--------------------------------------------------------------------------------
| | Other operating expenses | -4 662 | -4 060 | 14.8 % | -17 811 |
--------------------------------------------------------------------------------
| | Depreciation | -1 339 | -1 188 | 12.7 % | -4 705 |
--------------------------------------------------------------------------------
| Operating profit | -1 205 | 881 | n/a | 5 628 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Financial income and | -239 | -159 | 50.3 % | -533 |
| | expenses | | | | |
--------------------------------------------------------------------------------
| | Share of profit of | -100 | 0 | n/a | 0 |
| | associates | | | | |
--------------------------------------------------------------------------------
| Profit after financial items | -1 544 | 722 | n/a | 5 095 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before taxes | -1 544 | 722 | n/a | 5 095 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Taxes | 336 | -204 | n/a | 433 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit | -1 208 | 518 | n/a | 5 528 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| | Equity holders of the | -1 208 | 518 | n/a | 5 528 |
| | parent | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Earnings per share for | | | | |
| | result of the year | | | | |
| | attributable to the | | | | |
| | equity holders of the | | | | |
| | parent | | | | |
--------------------------------------------------------------------------------
| (expressed in euro per share) | | | | |
--------------------------------------------------------------------------------
| | Basic | -0.07 | 0.03 | n/a | 0.32 |
--------------------------------------------------------------------------------
| | Diluted | -0.07 | 0.03 | n/a | 0.32 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total comprehensive | | | | |
| | income for the period | | | | |
| | (tEUR) | | | | |
--------------------------------------------------------------------------------
| Net profit | -1 208 | 518 | n/a | 5 528 |
--------------------------------------------------------------------------------
| Translation differences | 43 | -49 | n/a | -508 |
--------------------------------------------------------------------------------
| Total comprehensive income | -1 165 | 469 | n/a | 5 020 |
| for the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| | Equity holders of the | -1 165 | 469 | n/a | 5 020 |
| | parent | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF FINANCIAL | 31.3.200 | 31.3.200 | Change % | 31.12.2008 |
| POSITION (tEUR) | 9 | 8 | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| | Property, plant, | 6 725 | 7 448 | -9.7 % | 6 373 |
| | equipment | | | | |
--------------------------------------------------------------------------------
| | Goodwill | 20 092 | 13 291 | 51.2 % | 13 865 |
--------------------------------------------------------------------------------
| | Intangible assets | 9 113 | 6 823 | 33.6 % | 6 466 |
--------------------------------------------------------------------------------
| | Investments | 1 128 | 775 | 45.5 % | 790 |
--------------------------------------------------------------------------------
| | | 37 058 | 28 337 | 30.8 % | 27 494 |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| | Inventories | 18 670 | 14 536 | 28.4 % | 14 049 |
--------------------------------------------------------------------------------
| | Other current assets | 27 639 | 27 219 | 1.5 % | 24 728 |
--------------------------------------------------------------------------------
| | Liquid funds | 7 311 | 8 766 | -16.6 % | 9 268 |
--------------------------------------------------------------------------------
| | | 53 620 | 50 521 | 6.1 % | 48 045 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 90 678 | 78 858 | 15.0 % | 75 539 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholder's equity and | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | Share capital | 6 967 | 6 967 | 0.0 % | 6 967 |
--------------------------------------------------------------------------------
| | Other equity | 38 297 | 40 343 | -5.1 % | 39 678 |
--------------------------------------------------------------------------------
| | | 45 264 | 47 310 | -4.3 % | 46 645 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| | Provisions | 314 | 425 | -26.1 % | 314 |
--------------------------------------------------------------------------------
| | Non interest bearing | 1 523 | 1 219 | 24.9 % | 1 025 |
| | liabilities | | | | |
--------------------------------------------------------------------------------
| | Interest bearing | 10 175 | 1 702 | 497.8 % | 1 175 |
| | liabilities | | | | |
--------------------------------------------------------------------------------
| | | 12 012 | 3 346 | 259.0 % | 2 514 |
--------------------------------------------------------------------------------
| Short-term liabilities | | | | |
--------------------------------------------------------------------------------
| | Trade payables and other | 26 160 | 17 694 | 47.8 % | 15 964 |
| | s-t liabilities | | | | |
--------------------------------------------------------------------------------
| | Provisions | 1 673 | 518 | 223.0 % | 629 |
--------------------------------------------------------------------------------
| | S-t interest bearing | 5 569 | 9 990 | -44.3 % | 9 787 |
| | liabilities | | | | |
--------------------------------------------------------------------------------
| | | 33 402 | 28 202 | 18.4 % | 26 380 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholder's equity | 90 678 | 78 858 | 15.0 % | 75 539 |
| and liabilities | | | | |
--------------------------------------------------------------------------------
| STATEMENT OF CASH FLOWS | 1-3/2009 | 1-3/2008 | Change % | 1-12/2008 |
| (TEUR) | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash-flow from operation | 1 035 | 630 | 64.3 % | 9 673 |
--------------------------------------------------------------------------------
| | Cash in | 28 602 | 26 755 | 6.9 % | 112 238 |
--------------------------------------------------------------------------------
| | Cash out | -27 567 | -26 125 | 5.5 % | -102 565 |
--------------------------------------------------------------------------------
| Cash-flow from investments | -7 471 | -744 | 904.2 % | -3 222 |
--------------------------------------------------------------------------------
| | Cash in | 0 | 0 | n/a | 221 |
--------------------------------------------------------------------------------
| | Cash out | -7 471 | -744 | 904.2 % | -3 443 |
--------------------------------------------------------------------------------
| Cash-flow from finance | 4 436 | 1 227 | 261.5 % | -4 376 |
--------------------------------------------------------------------------------
| | Cash in | 9 000 | 2 000 | 350.0 % | 6 342 |
--------------------------------------------------------------------------------
| | Cash out | -4 564 | -773 | 490.4 % | -6 560 |
--------------------------------------------------------------------------------
| | Paid dividend | 0 | 0 | n/a | -4 158 |
--------------------------------------------------------------------------------
| Other items | 43 | -49 | -187.8 % | -508 |
--------------------------------------------------------------------------------
| | Effect of currency rates | 43 | -49 | -187.8 % | -508 |
--------------------------------------------------------------------------------
| Change in liquid funds | -1 957 | 1 064 | -283.9 % | 1 566 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 1-3/200 | 1-3/2008 | Change % | 1-12/2008 |
| | 9 | | | |
--------------------------------------------------------------------------------
| | Earnings per share, | -0.07 | 0.03 | n/a | 0.32 |
| | EUR | | | | |
--------------------------------------------------------------------------------
| | Earnings per share | -0.07 | 0.03 | n/a | 0.32 |
| | fully diluted, EUR | | | | |
--------------------------------------------------------------------------------
| | Shareholders' | 2.67 | 2.73 | -2.2 % | 2.74 |
| | equity per share, | | | | |
| | EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Return on equity | -10.5 % | 4.4 % | n/a | 11.8 % |
--------------------------------------------------------------------------------
| | Return on capital | -9.4 % | 6.5 % | n/a | 10.4 % |
| | employed | | | | |
--------------------------------------------------------------------------------
| | Equity ratio | 51.8 % | 60.0 % | -13.7 % | 61.7 % |
--------------------------------------------------------------------------------
| | Gearing | 18.6 % | 6.2 % | 200.5 % | 3.6 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Investments, tEUR | 10 825 | 1 020 | 961.3 % | 3 920 |
--------------------------------------------------------------------------------
| | Investments % of | 42.3 % | 3.8 % | 1027.1 % | 3.6 % |
| | net sales | | | | |
--------------------------------------------------------------------------------
| | Order backlog, tEUR | 24 096 | 23 703 | 1.7 % | 24 000 |
--------------------------------------------------------------------------------
| | Personnel, average | 1 011 | 681 | 48.5 % | 702 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Number of shares | 17 806 | 17 672 | 0.8 % | 17 708 |
| | (thousands) | | | | |
--------------------------------------------------------------------------------
| | including own | | | | |
| | shares | | | | |
--------------------------------------------------------------------------------
| | Highest share | 4.18 | 7.49 | -44.2 % | 7.49 |
| | price, EUR | | | | |
--------------------------------------------------------------------------------
| | Lowest share price, | 2.25 | 5.90 | -61.9 % | 1.90 |
| | EUR | | | | |
--------------------------------------------------------------------------------
| | Average share | 3.50 | 6.62 | -47.1 % | 4.52 |
| | price, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Turnover, in | 5.9 | 3.5 | 66.5 % | 11.5 |
| | million shares | | | | |
--------------------------------------------------------------------------------
| | Turnover, in MEUR | 21.1 | 23.4 | -9.6 % | 51.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Treasury shares | | | | |
--------------------------------------------------------------------------------
| | | Number | | % of | % of |
--------------------------------------------------------------------------------
| | | of | | shares | votes |
| | | shares | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Teleste companies | 844 721 | | 4.74 % | 4.74 % |
| | own shares | | | | |
| | 31.3.2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent liabilities and pledged assets (tEUR) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| For own debt | | | | |
--------------------------------------------------------------------------------
| | Guarantees | 0 | 293 | -100.0 % | 0 |
--------------------------------------------------------------------------------
| | Other securities | 259 | 506 | -48.8 % | 259 |
--------------------------------------------------------------------------------
| Leasing and rent | 5 899 | 2 401 | 145.7 % | 3 699 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | | 6 158 | 3 200 | 92.4 % | 3 958 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instruments | | | | |
| (tEUR) | | | | |
--------------------------------------------------------------------------------
| | Value of underlying | 7 387 | 8 634 | -14.4 % | 9 094 |
| | forward contracts | | | | |
--------------------------------------------------------------------------------
| | Market value of | -81 | -242 | -66.5 % | 419 |
| | forward contracts | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes are computed on the basis of the tax on the profit for the period. |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | There are no changes in segment reporting compared to earlier adopted |
| | IAS14. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating segments | 1-3/200 | 1-3/2008 | Change % | 1-12/2008 |
| (tEUR) | 9 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Broadband Cable | | | | |
| Networks | | | | |
--------------------------------------------------------------------------------
| | Order intake | 22 580 | 26 040 | -13.3 % | 101 430 |
--------------------------------------------------------------------------------
| | Net sales | 21 300 | 22 972 | -7.3 % | 92 605 |
--------------------------------------------------------------------------------
| | EBIT | -1 373 | 901 | n/a | 6 098 |
--------------------------------------------------------------------------------
| | EBIT% | -6.4 % | 3.9 % | n/a | 6.6 % |
--------------------------------------------------------------------------------
| Video Networks | | | | |
--------------------------------------------------------------------------------
| | Order intake | 3 420 | 3 332 | 2.6 % | 17 203 |
--------------------------------------------------------------------------------
| | Net sales | 4 304 | 4 220 | 2.0 % | 16 090 |
--------------------------------------------------------------------------------
| | EBIT | 168 | -20 | n/a | -470 |
--------------------------------------------------------------------------------
| | EBIT% | 3.9 % | -0.5 % | n/a | -2.9 % |
--------------------------------------------------------------------------------
| Total | | | | |
--------------------------------------------------------------------------------
| | Order intake | 26 000 | 29 372 | -11.5 % | 118 633 |
--------------------------------------------------------------------------------
| | Net sales | 25 604 | 27 192 | -5.8 % | 108 695 |
--------------------------------------------------------------------------------
| | EBIT | -1 205 | 881 | n/a | 5 628 |
--------------------------------------------------------------------------------
| | EBIT% | -4.7 % | 3.2 % | n/a | 5.2 % |
--------------------------------------------------------------------------------
| | Financial items | -239 | -159 | 50.3% | -533 |
--------------------------------------------------------------------------------
| | Shares of | -100 | 0 | n/a | 0 |
| | associates | | | | |
--------------------------------------------------------------------------------
| | Operating segments | -1 544 | 722 | n/a | 5 095 |
| | net profit before | | | | |
| | taxes | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment assets |
--------------------------------------------------------------------------------
| Segment assets include items directly attributable as well as those that can |
| be allocated on a reasonable basis |
--------------------------------------------------------------------------------
| | | 31.3.20 | 31.3.200 | Change % | 31.12.2008 |
| | | 09 | 8 | | |
--------------------------------------------------------------------------------
| | Broadband Cable | 68 789 | 55 012 | 25.0 % | 50 930 |
| | Networks | | | | |
--------------------------------------------------------------------------------
| | Video Networks | 14 578 | 15 080 | -3.3 % | 15 341 |
--------------------------------------------------------------------------------
| | Segment assets | 83 367 | 70 092 | 18.9 % | 66 271 |
| | total | | | | |
--------------------------------------------------------------------------------
| | Unallocated assets | 7 311 | 8 766 | -16.6 % | 9 268 |
--------------------------------------------------------------------------------
| | Total assets | 90 678 | 78 858 | 15.0 % | 75 539 |
--------------------------------------------------------------------------------
| Information per | 1-3 | 10-1 | 7-9/08 | 4-6/08 | 1-3/08 | 4/200 | |
| quarter (tEUR) | /09 | 2/08 | | | | 8- | |
| | | | | | | 3/200 | |
| | | | | | | 9 | |
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| Broadband Cable Networks | |
--------------------------------------------------------------------------------
| | Order | 22 | 19 | 22 838 | 32 872 | 26 040 | 97 | |
| | intake | 580 | 680 | | | | 970 | |
--------------------------------------------------------------------------------
| | Net sales | 21 | 23 | 20 873 | 24 995 | 22 972 | 90 | |
| | | 300 | 765 | | | | 933 | |
--------------------------------------------------------------------------------
| | EBIT | -1 | 1 | 1 657 | 1 829 | 901 | 3 824 | |
| | | 373 | 711 | | | | | |
--------------------------------------------------------------------------------
| | EBIT % | -6. | 7.2 | 7.9 % | 7.3 % | 3.9 % | 4.2 % | |
| | | 4 % | % | | | | | |
--------------------------------------------------------------------------------
| Video Networks | |
--------------------------------------------------------------------------------
| | Order | 3 | 5 | 3 753 | 4 535 | 3 332 | 17 | |
| | intake | 420 | 583 | | | | 291 | |
--------------------------------------------------------------------------------
| | Net sales | 4 | 4 | 3 245 | 4 265 | 4 220 | 16 | |
| | | 304 | 360 | | | | 174 | |
--------------------------------------------------------------------------------
| | EBIT | 168 | -140 | -197 | -113 | -20 | -282 | |
--------------------------------------------------------------------------------
| | EBIT % | 3.9 | -3.2 | -6.1 % | -2.6 % | -0.5 % | -1.7 | |
| | | % | % | | | | % | |
--------------------------------------------------------------------------------
| Total | |
--------------------------------------------------------------------------------
| | Order | 26 | 25 | 26 591 | 37 407 | 29 372 | 115 | |
| | intake | 000 | 263 | | | | 261 | |
--------------------------------------------------------------------------------
| | Net sales | 25 | 28 | 24 118 | 29 260 | 27 192 | 107 | |
| | | 604 | 125 | | | | 107 | |
--------------------------------------------------------------------------------
| | EBIT | -1 | 1 | 1 460 | 1 716 | 881 | 3 542 | |
| | | 205 | 571 | | | | | |
--------------------------------------------------------------------------------
| | EBIT % | -4. | 5.6 | 6.1 % | 5.9 % | 3.2 % | 3.3 % | |
| | | 7 % | % | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | Share | Share | Trans-la | Retained | Investe | Total |
| equity holders | capital | premiu | tion | earnings | d | |
| of the parent | | m | diffe- | | free | |
| (tEUR) | | | rences | | capital | |
--------------------------------------------------------------------------------
| Shareholder's | 6 967 | 1 504 | -561 | 37 284 | 1 451 | 46 645 |
| equity 1.1.2009 | | | | | | |
--------------------------------------------------------------------------------
| | Total | | | 43 | -1 208 | | -1 165 |
| | comprehensi | | | | | | |
| | ve income | | | | | | |
| | for the | | | | | | |
| | period | | | | | | |
--------------------------------------------------------------------------------
| | Equity-sett | | | | 48 | -264 | -216 |
| | led | | | | | | |
| | share-based | | | | | | |
| | payments | | | | | | |
--------------------------------------------------------------------------------
| | Used | | | | | 0 | 0 |
| | options | | | | | | |
--------------------------------------------------------------------------------
| Shareholder's | 6 967 | 1 504 | -518 | 36 124 | 1 187 | 45 264 |
| equity | | | | | | |
| 31.3.2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholder's | 6 967 | 1 504 | -53 | 35 720 | 2 531 | 46 669 |
| equity 1.1.2008 | | | | | | |
--------------------------------------------------------------------------------
| | Profit of | | | -49 | 518 | | 469 |
| | the period | | | | | | |
--------------------------------------------------------------------------------
| | Equity-sett | | | | 108 | 56 | 164 |
| | led | | | | | | |
| | share-based | | | | | | |
| | payments | | | | | | |
--------------------------------------------------------------------------------
| | Used | | | | | 8 | 8 |
| | options | | | | | | |
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| Shareholder's | 6 967 | 1 504 | -102 | 36 346 | 2 539 | 47 310 |
| equity | | | | | | |
| 31.3.2008 | | | | | | |
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CALCULATION OF KEY FIGURES
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| Return on equity: | Profit/loss for the financial period |
| | ------------------------------ * 100 |
| | Shareholders' equity (average) |
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| Return on capital | Profit/loss for the period after financial |
| employed: | items + financing charges |
| | ------------------------------ * 100 |
| | Total assets - non-interest-bearing |
| | liabilities (average) |
--------------------------------------------------------------------------------
| Equity ratio: | Shareholders' equity |
| | ----------------------------- * 100 |
| | Total assets - advances received |
--------------------------------------------------------------------------------
| Gearing: | Interest bearing liabilities - cash in hand and |
| | in bank - interest bearing assets |
| | ----------------------------- * 100 |
| | Shareholders' equity |
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| Earnings per share: | Profit for the period attributable to equity |
| | holder of the parent |
| | ---------------------------------------------- |
| | Weighted average number of ordinary shares |
| | outstanding during the period |
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| Earnings per share, | Profit for the period attributable to equity |
| diluted: | holder of the parent (diluted) |
| | ----------------------------------------------- |
| | Average number of shares - own shares + number |
| | of options at the period-end |
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| SECTOR DISPERSION OF | Number of | % of | Number of | % of |
| SHAREHOLDERS | shareholde | owners | shares | total |
| | rs | | | shares |
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| Corporations | 312 | 5.76 | 5 897 342 | 33.12 |
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| Financial and insurance | 19 | 0.35 | 3 374 463 | 18.95 |
| corporations | | | | |
--------------------------------------------------------------------------------
| Public institutions | 7 | 0.13 | 2 172 976 | 12.20 |
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| Non-profit organizations | 45 | 0.83 | 757 432 | 4.25 |
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| Households | 4 990 | 92.15 | 4 188 172 | 23.52 |
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| Foreign and nominee | 42 | 0.78 | 1 415 205 | 7.95 |
| -registered | | | | |
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| Total | 5 415 | 100.00 | 17 805 590 | 100.00 |
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| HOLDING DISPERSION 31.3.2009 | | | | |
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| Number of shares | Owners | % | Shares | % |
--------------------------------------------------------------------------------
| 1 - 100 | 1 234 | 22.79% | 87 518 | 0.49% |
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| 101 - 1 000 | 3 207 | 59.22% | 1 316 253 | 7.39% |
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| 1001 - 10 000 | 879 | 16.23% | 2 453 494 | 13.78% |
--------------------------------------------------------------------------------
| 10 001 - 100 000 | 75 | 1.39% | 1 853 135 | 10.41% |
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| 100 001 - | 20 | 0.37% | 12 095 190 | 67.93% |
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| Total | 5415 | 100.00% | 17 805 590 | 100.00% |
--------------------------------------------------------------------------------
| Nominee registered | | | 890 409 | 5.00% |
| | | | | |
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--------------------------------------------------------------------------------
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| MAJOR SHAREHOLDERS 31.3.2009 | Shares | % |
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| 1 | EM Group Oy | 3 617 552 | 20.32% |
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| 2 | Mandatum Henkivakuutusosakeyhtiö | 1 679 200 | 9.43% |
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| 3 | Keskinäinen Eläkevakuutusyhtiö | 894 776 | 5.03% |
| | Ilmarinen | | |
--------------------------------------------------------------------------------
| 4 | Kaleva Mutual Insurance Company | 798 541 | 4.48% |
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| 5 | Aktia Capital Mutual Fund | 524 200 | 2.94% |
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| 6 | Varma Mutual Pension Insurance Company | 521 150 | 2.93% |
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| 7 | State Pension Fund | 500 000 | 2.81% |
--------------------------------------------------------------------------------
| 8 | Teleste Incentive Oy | 500 000 | 2.81% |
--------------------------------------------------------------------------------
| 9 | Skagen Vekst Verdipapierfond | 437 000 | 2.45% |
--------------------------------------------------------------------------------
| 10 | FIM Fenno Mutual Fund | 401 342 | 2.25% |
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| 11 | Teleste Corporation | 344 721 | 1.94% |
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ACQUISITIONS 1 Jan - 31 March 2009
At 1 January 100% of shares of German companies, GmbH, MKS and Young-Net GmbH
was purchased. The purchase price was 8 554 thousand and was paid in cash.
The acquisition resulted in 2 605 thousand of intangible assets, which was
allocated to trade marks, customer relationships. The goodwill, amounted
4 727
thousand EUR, is mainly due to future revenue expectation and to personnel
synergy effects in the future. The impact of the acquisition on Teleste's net
sales during the period 1.1.2009 - 31.3.2009 was 8 230 thousand EUR and on the
EBIT 620 thousand EUR.
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| Recognised fair values on acquisition |
| 1 000 EUR |
--------------------------------------------------------------------------------
| Fair values used in consolidation | |
--------------------------------------------------------------------------------
| Trade marks (inc. in intangible assets) | 574 |
--------------------------------------------------------------------------------
| Customer relationship (inc. in intangible assets) | 2 031 |
--------------------------------------------------------------------------------
| Book values used in consolidation | |
--------------------------------------------------------------------------------
| Tangible assets | 544 |
--------------------------------------------------------------------------------
| Inventories | 5 828 |
--------------------------------------------------------------------------------
| Deferred tax receivables | 785 |
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| Trade receivables | 3 136 |
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| Other receivables | 1 928 |
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| Liquid funds | 1 961 |
--------------------------------------------------------------------------------
| Total assets | 16 787 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book values used in consolidation | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 559 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 677 |
--------------------------------------------------------------------------------
| Other liabilities | 11 524 |
--------------------------------------------------------------------------------
| Total liabilities | 12 760 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net identifiable assets and liabilities | 4 027 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total consideration | 8 554 |
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| Acquisition costs | 200 |
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| Goodwill on acquisition | 4 727 |
--------------------------------------------------------------------------------
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| Consideration paid in cash | -8 754 |
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| Cash and cash equivalents in acquired subsidiary | 1 961 |
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| Total net cash outflow on the acquisition | -6 793 |
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ADDITIONAL INFORMATION:
CEO Jukka Rinnevaara, tel +358 2 2605 866 or +358 400 747 488
DISTRIBUTION:
NASDAQ OMX Helsinki
Media
www.teleste.com
