July 29, 2010 at 9.00
F-Secure Corporation - Interim Report
January 1 - June 30, 2010
Operator channel delivered good growth, financial performance as expected
Highlights in Q2
- Total revenues grew by 2% to 32.3 million (Q22009: 31.7 m)
- Revenues from the operator channel (ISPs, mobile operators and cable
operators) grew by 11%, reaching record revenues of 16.4 million (14.8m)
- EBIT was 4.9 million; representing 15% of revenues (7.2m, 23%)
- Earnings per share was EUR 0.02 (EUR 0.04)
- Cash flow from operations was 5.6 million positive (6.3m positive)
- Both revenues and costs slightly higher than guided while profitability as
anticipated
- Operator growth accelerated from previous quarter
- Integration and quality assurance of storage business (SDC) drive investments
- Outlook for Q3/2010: Revenues are estimated to be between 31 and 33 million.
Costs are estimated to be around 25 million.
(This report is unaudited. Unless otherwise stated the comparisons refer to the
corresponding period a year ago. The currency is euro. Storage and Digital
Content business unit is included in the operator channel figures.)
Key figures 2010 2009 2009 2010
Eur million 4-6 4-6 12m 1-3
Revenues 32.3 31.7 125.1 31.4
Operating profit 4.9 7.2 24.0 5.5
% of revenues 15 % 23 % 19 % 18 %
Profit before taxes 5.2 7.6 25.2 5.5
Earnings per share (EUR) 0.02 0.04 0.12 0.03
At the end of period:
Deferred revenue 37.2 36.3 35.6 37.2
Equity ratio, % 67% 71% 70% 58%
Debt-to-equity ratio, % -64% -144% -68% -85%
Personnel 847 752 826 836
CEO Kimmo Alkio: “Despite the anticipated challenging quarter our overall
performance was good and exceeded our earlier expectations. While we seek
longer term higher growth and profitability, the financial results were solid
even with the higher investment level for our storage business. Our operator
business continued to perform well showing healthy quarter over quarter growth
of 5% and reached record levels in new subscriber acquisition. Our Software as
a Service business model continues to be attractive for operators globally
combining the benefits of security and online storage services. With current
momentum in subscriber growth we anticipate operator revenue growth to further
accelerate towards the year end.”
F-Secure business during 1H2010 at the Group level
For the first half of 2010, the total revenues were 63.7 million (1H2009:
62.3m), growth of 2%. Revenue growth continued through the operator channel, up
11% from 1H09 and totaled 32m. Revenue through the traditional channels was
down by 5%, totaling 31.7m, while the sales were at good level as seen in
deferred revenues. EBIT was 10.4 million (13.2m), representing 16% of revenues.
Earnings per share were EUR 0.05 (EUR 0.07). Cash flow from operations was 12.5
million positive (11.2m positive). F-Secure's deferred revenue were 37.2m at
the end of June (37.2m at the end of March 2010).
F-Secure's total fixed costs for1H10 were 49.9 million (44.6m), 12% higher than
in 1H09. The cost increase was mainly coming from operating costs of storage
and digital content business (acquired in July 2009). F-Secure capitalized some
of its R&D expenses according to accounting rules, totaling 1.5 million (0.5m)
for 1H2010.
F-Secure security business (excluding the acquired Storage business) has
continued to perform well with good scale and enhanced profitability as
compared to 1H09.
The financial result for the second quarter of 2010 was as anticipated though
revenues and costs were slightly higher than anticipated in April (revenues
30-32 million, cost level around 25 million); revenues for the second quarter
were 32.3. The costs were 25.8m. EBIT was 4.9m; 15% of revenues. Revenues and
costs were higher due to increased activity level and changes of exchange rates
during the quarter. The cost increases were targeted in storage business and
were mainly non permanent in nature (e.g. subcontracting) and related to the
unit's transformation program. While Q2 performance was as anticipated
F-Secure aims to reach mid and long term higher growth and profitability
levels.
In the first half of 2010 the geographical breakdown of the revenues split as
follows: Finland and Scandinavia 33% (35%), Rest of Europe 46% (45%), North
America 9% (9%) and Rest of the World 12% (11%).
Operator channel in Q2
F-Secure's offering in the Software as a Service business includes PC and
mobile security and a broad range of storage based services. F-Secure's
operator channel (including ISPs, mobile operators and cable operators)
continued to perform well. In the second quarter of 2010, revenues through the
operator business partners totaled 16.4 million (Q209: 14.8m), representing 51%
of F-Secure's total revenues (47%). Revenue growth was 11% compared to the
corresponding quarter in 2009 and 5% to the previous quarter. The impact of
contractual changes with some operators at the beginning of the year (as
informed in the previous releases) has approximately 6% negative impact on YoY
growth.
F-Secure's position in the operator channel has remained strong in the
traditional Internet security business. The competitiveness of Security as a
Services business continues to gain market share to the benefit of both
operators and end customers. During the quarter the operator business's number
of security subscribers has continued to demonstrate healthy growth as informed
in the previous interim release. The growth was mainly driven by the increase
in take up rates within the old operator base both in western and emerging
markets. F-Secure has also been successful in its activities with mobile
broadband operators supporting operator growth in the future.
The Storage and Digital Content (SDC) market entry has further strengthened
F-Secure's attractiveness as a long term strategic partner, as already
experienced with several major operators globally. The SDC business extends
F-Secure's value added service portfolio and strengthens the Security as a
Service business. Integration of the SDC operations to the high F-Secure
quality standards has been more challenging than originally anticipated.
Therefore, F-Secure is further investing in a transformation program to improve
performance and scalability of the SDC business to drive the long term growth
opportunity. This is seen as a strategic investment area strengthening
F-Secure's Operator business.
During the quarter the storage related revenues have remained in similar level
as in previous quarters. The Storage and Digital content business project
pipeline has developed well and shows good revenue growth opportunity in mid-
and longer term.
The company currently has more than 200 partners in over 40 countries with an
addressable market of over 70 million broadband consumer customers. F-Secure
has not lost any of its existing partnerships; however, the number of partners
may vary subject to merger activity in the operator market.
F-Secure is constantly winning new operator partners Some of the latest
accouncements are Vodafone (Romenia), M-Net (Germany) and Maxis (Malaysia -
mobile broadband operator).
The total number of F-Secure's operator partners is significantly larger than
that of any other security service vendor. At the end of 2009 F-Secure's
operator partners held approximately 39% (39%) market share of total broadband
consumer connections in Europe, approximately 10% (10%) in North America and in
the APAC region F-Secure has quickly become one of the leading vendors with
more than 11m potential addressable subscribers (Source: estimates by Dataxis
and F-Secure).
Other channels in Q2
During Q2, the revenues through traditional channels were 15.9 million (16.9m),
showing a decline of 6% from the corresponding period in 2009. These
traditional channels represented 49% of F-Secure's total revenues (53%).
The sales in traditional channels continued as expected. The renewal rates
during the second quarter have remained at good level; this is seen in stable
deferred revenues at the end of Q2.
Mobile security in Q2
Co-operation with major handset manufacturers, including Nokia and
SonyEricsson, and operators such as Vodafone Group, TeliaSonera Group, T-Mobile
International, Swisscom and Elisa continued well. Currently, there are mobile
operator partnerships with more than 20 operators worldwide.
During Q2 F-Secure has successfully launched a freemium (free offering with
upgrade to payable service) Anti-Theft solution in the Nokia OVI store. The
Freemium represents one of the new business models that F-Secure has introduced
to adapt its mobile offering to the changing mobile channels and evolution in
business models. The trial user volumes have experienced significant growth
since launch.
During the quarter F-Secure has signed new Mobile Operator partner agreements
and also introduced an addition to its Mobile Security support for Android
devices. These will further strengthen the company's portfolio and leading
position in the market.
The revenues from the Mobile Security business have remained at same level as
before and are included in the above mentioned channels.
Products, Services and Technologies
F-Secure has been a pioneer in both Software as a Service and cloud computing.
Nearly ten years ago, F-Secure innovated and launched to the market a new
business model by offering security as a subscription service via operators
(SaaS). Cloud computing has been in the center of the company's technology
strategy and choices for the past few years. An example of cloud computing at
F-Secure is the real-time protection network which provides reputations of
files, sites and URLs to F-Secure's solutions. It is implemented as an
in-the-cloud reputation service, capable of supporting several types of
solutions now and in the future.
The real-time protection network moves the PC processing and memory intensive
functions to the cloud making the client software one of the fastest in the
industry. Furthermore, by harnessing the collective intelligence of client
systems, the real-time protection network is able to detect and react to new
emerging threats a magnitude faster. This is important in today's dramatically
changed threat situation where the Internet is facing a deluge of new malware
and variants that make traditional heuristics or signature-based solutions
inefficient and slow. This technology has been utilized for e.g. in F-Secure
Internet Security 2010, and in F-Secure Client Security 9, in their anti-virus,
browsing protection and parental control features.
During the first half of 2010 the key announcements were mainly for the mobile
segment. In June, F-Secure offered enhanced mobile protection for Android
platforms. F-Secure Mobile Security 6 is available for consumers and businesses
for mobile phones on the Android, Symbian and Windows platforms.
In May, F-Secure introduced F-Secure Share available for operators globally.
F-Secure Share is a fully hosted and secure service solution available to
Internet operators. It provides an easy to use online storage and sharing
solution for the operators' end customers, ideal for sharing for example
personal photos, videos and office documents. F-Secure Share works as a virtual
drive for all the end user's digital content, which can be easily accessed from
the web interface of their home PC, office computer or mobile.
In February, F-Secure launched F-Secure Mobile Security 6, a new version of its
leading smartphone security solution, introducing Premium Anti-theft with
Locator features and Browsing Protection, the company's first in-the-cloud
service for mobile devices, which make smartphone Internet use and financial
transactions safer than ever. F-Secure Mobile Security 6 provides smartphone
security, safeguarding personal and confidential data in the event the phone is
lost, stolen, infected by mobile malware or even spied on.
In January 2010, F-Secure launched the availability of its new smartphone
solution, F-Secure Anti-Theft for Mobile. The solution provides three useful
security features to protect your phone: remote lock, remote wipe and theft
control and is available for Symbian and Windows Phone platforms.
Market situation
There were no significant changes in the competitive landscape or in the
pricing levels during the second quarter. However, there are usual signs of
price competition in some countries. F-Secure's competitive position in the
operator channel has remained strong. At the same time the broadband market is
experiencing a shift from fixed to mobile broadband access. The combined
broadband business is anticipated to continue as a healthy growth driver for
Security as a Service in the operator channel.
Personnel and organization
F-Secure's personnel totaled 847 at the end of June (Q110: 836, Q209: 752).
F-Secure's number of personnel continued to increase slightly during the
quarter in storage business, support, and sales functions.
F-Secure has during the past 12 month systematically strengthend its senior
management. Key recruitments have been made in the fields of solution
management, user experience, customer support, consumer business and marketing.
During first half of 2010 new executive team members have been nominated for
R&D, Mobile business, Storage and Digital Content business and Strategy. The
Executive Team currently consists of the following persons: Kimmo Alkio
(President and CEO), Ari Alakiuttu (Vice President, Human Resources), Tuomas
Hyyryläinen (Vice President, Strategy and M&A), Samu Konttinen (Vice President,
Sales and Geographical Operations), Maria Nordgren (Vice President, Corporate
Business), Pirkka Palomäki, (Chief Technology Officer), Kari Penttilä (Vice
President, R&D), Patrik Sallner (Vice President, Mobile business unit and Vice
President, Storage and Digital Content business unit), Antti Reijonen (Vice
President, Consumer Business and Marketing) and Taneli Virtanen (Chief
Financial Officer).
Financing and capital structure
F-Secure's financial position continued strong. F-Secure's equity ratio at the
end of June was 67% (71%) and gearing ratio was 64% negative (144% negative).
Cash flow from the operations for the first half was 12.5 million positive
(11.2m positive). Total cash flow including investments, share buy backs of
2.3m and a dividend payment of 9.3m was 5.1 million negative (2.7m negative).
The net financial income for 1H10 was 0.2 million positive impacted by low
interest income and changes of exchange rates (0.8m positive).
The company's cash position has developed according to the longer term
efficient capital management objectives. The market value of the liquid assets
of F-Secure on June 30, 2010 was 29.4 million (58.7m).
The changes in exchange rates, weaker Euro against USD, JPY, GBP, SEK and MYR,
have increased revenues and costs for the first half of 2010, that is visible
in Q2.
Capital expenditure
F-Secure's capital expenditure in the first half was 5.7 million (2.4m),
consisting mainly of the acquisition cost and in additionally of IT hardware
and software as well as capitalization of some research and development
expenses.
Capital management and repurchase of own shares
The objective of F-Secure's capital management is to aim at an efficient
capital structure that ensures the functioning of business operations and
promotes the increase of shareholder value.
Based on the authorization by the Annual General Meeting 2010, F-Secure has
continued its share buy back program. During the second quarter, F-Secure has
bought altogether 200,700 own shares. During the first six months, F-Secure has
bought 952,395 own shares. Including all shares bought, the total number of own
shares held at the end of June 2010 was 2,501,841 shares, corresponding to
approximately 1.6% of the company's shares and voting rights.
The shares were purchased through public trading on the NASDAQ OMX Helsinki
Ltd. in accordance with its rules and at market price. The own shares are
purchased to be used to improve the Company's financial structure, to be used
as part of the incentive compensation plan, for making acquisitions or
implementing other arrangements related to the Company's business or for the
purpose of otherwise assigning or cancelling the shares.
Shares, shareholders' equity and option programs
In May, a total of 20,000 F-Secure shares were subscribed for with the 2005C
warrants attached to the F-Secure 2005 Warrant Plan. The issue of the 2005
Warrant Plan was approved by the Annual General Meeting on March 23, 2005. In
aggregate the number of shares was increased by 20,000. The corresponding
increase in the share capital was registered in the Finnish Trade Register on
May 26, 2010. F-Secure received as subscription price a total amount of EUR
30,800.00, which will be recorded in the fund for company's distributable
equity. The subscription period for the 2005 C warrants began on March 1, 2010.
In March, the trading of 2005 B- and C-warrants of F-Secure Corporation
commenced on the Nasdaq OMX Helsinki Ltd. Each 2005 B-warrant entitles holders
to subscribe for one F-Secure share at a price of EUR 2,72. Each 2005 C-warrant
entitles holders to subscribe for one F-Secure share at a price of EUR 1,54.
The subscription price of the stock options shall, as per the dividend record
date, be reduced by the amount of dividend per share. The subscription time for
2005 B-warrants began on March 2, 2009 and will end on November 30, 2010. The
subscription time for 2005 C-warrants will begin on March 1, 2010 and will end
on November 30, 2011. In aggregate the 2005 B- and C-warrants entitle holders
to subscribe for 1,613,760 shares. The terms of the option program were
published in a stock exchange release on February 26, 2010.
The total number of company's shares is currently 157,489,243. The
corresponding number of shares diluted would be 161.269.612 including all stock
option programs. The company's registered shareholders' equity is EUR
1.551.311,18.
Corporate Governance
F-Secure complies with the Corporate Governance recommendations for public
listed companies published in October 2008 by the Securities Market
Association, a body established by the Confederation of Finnish Industries EK,
the Central Chamber of Commerce, and NASDAQ OMX Helsinki Ltd., as explained on
F-Secure's web pages. F-Secure published a corporate governance statement for
2009 in the annual report and on the company website in March.
Risks and uncertainties
F-Secure has not seen material changes to the risks and uncertainties during
the reporting period. However, the current situation in the global economy has
continued to impact on the traditional license sales. This is seen especially
as a slowdown in new license sales. The slower growth in sales of fixed
broadband connections by operators may also have impact on security service
sales. As the uncertainty in the economic environment has continued, F-Secure
continues to monitor closely the development in the economic and financial
markets.
F-Secure's risks and uncertainties are related to, among other things, the
competitiveness of F-Secure's product portfolio, competitive dynamics in the
industry, pricing models (e.g. free services), impact of changes in technology,
timely and successful commercialization of complex technologies as new products
and solutions, the ability to protect own intellectual property (IPR) in
F-Secure's solutions as well as the use of third party technologies on
reasonable commercial terms, subcontracting relationships, regional development
in new growth markets, sustainability of partner relationships, service quality
level requirements and the overall development of value added security
solutions in the Internet Service Provider and mobile operator market.
Due to the longevity and complexity of project deliveries in the storage and
digital content business, the project completion timelines are more
unpredictable, by nature, than in the traditional security services business.
This may cause risks for delivery delay penalties and may cause more
variability in revenue forecasts.
Long-term objectives
The market opportunities for Internet security and other related services are
driven by the expansion of the Internet. The global Internet penetration is
around 26%; in Asia it is below 20%, in Europe over 50%, and in North America
over 70% (Source: Internet World Stats, U.S. Census Bureau). The growing number
of smart phones, which have an Internet browser increases the number of mobile
internet users (number of smart phones 2010: 200m and 2012 more than 500m;
Source: Gartner).
This will lead to an increasing number of internet users globally requiring
security services. The Security software market as a total is attractive
globally. The market is an over $13 billion industry (Source: Gartner, 2010).
The longer term security market growth is expected to be around 9% with
antivirus growth at around 4% annually between 2008 and 2013 (Source: Gartner).
The volume of user generated digital content is expected to increase rapidly
during coming years driven by digital photos and music. The market for emerging
online storage is expected to show strong growth and to reach $715m by 2011
showing a CAGR of 33% 2006-2011 (Source: IDC/Networkworld).
The Security as a Service (SaaS) business has been a strong growth driver for
F-Secure since the year 2000. Based on the company's pioneering role in
offering Software as a Service, F-Secure continues to expand its offering to
augment traditional security services. The Software as a Service business model
continues to gain further market share in the software industry at large
(Source: IDC Nov. 2008). Based on experience of the Software as a Service
business model, F-Secure anticipates that both the customer benefits (e.g.
lower total cost of ownership) and attractive partner business benefits (e.g.
lifetime revenue share) will accelerate the adoption of the Software as a
Service business model compared to traditional software acquisition as a
product.
F-Secure's first priority is to drive growth and market expansion. The core
growth driver has been Security as a Service (SaaS) sales through the
operators. In addition, F-Secure offers Online Backup as a Service and other
storage related services that are expected to drive growth. The combined
portfolio of storage and security services enables F-Secure to develop more
comprehensive and innovative Value Added Services to consumers to be sold
through its large operator network of over 200 operator partners in over 40
countries with an addressable market of over 70 million broadband customers.
F-Secure is focusing on increasing the penetration within the current operator
base with security and storage related services and continues to selectively
seek partner expansion globally. In addition, F-Secure is developing its
operations in other channels, such as electronic sales, to offer value-added
services to consumers and other segments.
F-Secure's close co-operation with major mobile phone vendors and mobile phone
operators provides good opportunities to benefit from the growth of the mobile
Internet. Over time, F-Secure anticipates synergies across the value added
Services being developed and offered both for PC's and mobile phones.
F-Secure's target is to be the leader in providing security and other related
value added services to consumers through operators. F-Secure pursues
investments in new value added services for both PC and mobile users to augment
the existing security services. F-Secure continues to drive innovation also in
traditional IT security, enabling the secure use of internet.
F-Secure aims to continue to exceed the average market growth rates in revenues
and seeks to improve its profitability sustainably towards an EBIT level of 25%
over time. F-Secure's longer term profitability level continues to be driven
extensively by revenue growth and through systematic cost controls. F-Secure
targets its investments in strategic growth businesses, specifically the
operator channel with security and storage as a service.
Short-term outlook
Markets for Security as a Service are expected to continue to grow. During the
second half of 2010 F-Secure seeks to exceed average market growth. For 2010
the antivirus security market growth is anticipated to be around 5% (source:
Gartner 2010).
The competitiveness of Security as a Services business continues to gain market
share to the benefit of both operators and end customers. F-Secure is
constantly winning new operator partners and increasing its penetration within
its current operator base. The management estimates the growth of security
subscribers to continue at a healthy level. The revenue impact from this
subscriber growth is expected to materialize in the second half of 2010.
The storage related business has received strong interest from the operators
globally. The storage related market entry has further strengthened F-Secure's
attractiveness as a long term strategic partner. The management expects storage
business to be a solid growth opportunity in the mid- and long term. Short term
revenue contribution of the storage business is expected to be minor in impact,
while develop favourably.
The management estimates total revenues to grow, driven by the operator
business, at accelerating pace towards year end. This is supported by the
growth of security subscribers and by the launch of new operator partnerships.
F-Secure revenues for the third quarter of 2010 are estimated to be between 31
million and 33 million. Costs are estimated to be around 25 million. The
majority of cost increases compared to previous year are targeted to support
the long term scalability of the storage services business.
The revenue estimate is based on the sales pipeline at the time of publishing,
existing subscriptions and support contracts as well as current exchange rates.
News conference today at 11 am
A news conference for analysts and press is arranged today, on July 29, at 11
am Finnish time at HTC Ruoholahti, Auditorium, address: Tammasaarenkatu 3
(Ruoholahti), Helsinki. A conference call for international investors and
analysts is arranged at 14.00 Finnish time (13.00 CET, 12.00 pm UK time).
Instructions on how to attend the conference call are available on the investor
pages of F-Secure's web site at
http://www.f-secure.com/en_EMEA/about-us/investor-relations/.
Financial calendar for 2010
F-Secure will publish the interim report for the third quarter of 2010 on
October 27. On the publication date a stock exchange release will be sent at 9
am Finnish time to the NASDAQ OMX Helsinki Ltd., a press and analyst conference
will be arranged at 11 am Finnish time in Helsinki, and an international
conference call will be arranged in the afternoon. Full details will be
provided at a later date on F-Secure's website.
F-Secure Corporation
Additional information:
F-Secure Corporation
Kimmo Alkio, President and CEO
tel. +358 9 2520 0700
Taneli Virtanen, CFO
tel. +358 9 2520 5655
Mervi Pohjoisaho, IR
tel. +358 40 535 8989
This interim report is prepared in accordance with IAS 34 standard Interim
Financial Reporting and with accounting principles stated in the annual report
2009.
Key figures (unaudited):
Euro million
INCOME STATEMENT 2010 2009 2010 2009 Chge 2009
4-6 4-6 1-6 1-6 %
Revenues 32.3 31.7 63.7 62.3 2 125.1
Cost of revenues 1.9 2.5 3.9 5.1 -24 9.9
Gross margin 30.4 29.2 59.8 57.2 5 115.2
Other operating income 0.2 0.4 0.5 0.7 -24 1.1
Sales and marketing 15.4 13.9 29.8 27.4 9 56.9
Research and development 8.3 6.7 16.1 13.5 19 28.0
Administration 2.1 1.7 4.0 3.7 9 7.5
Operating result 4.9 7.2 10.4 13.2 -21 24.0
Financial net 0.2 0.4 0.2 0.8 1.2
Result before taxes 5.2 7.6 10.6 14.1 25.2
Income taxes -1.4 -2.1 -2.8 -3.7 -6.5
Result for the period 3.8 5.5 7.8 10.4 18.7
Other comprehensive income:
Exchange diff. on translating
foreign operations 0.0 0.0 0.2 0.0 0.1
Available-for-sale fin.assets 0.0 0.3 0.0 0.5 0.1
Income tax rel. to components
of other comprehensive income 0.0 -0.1 0.0 -0.1 0.0
Total comprehensive
Income (owners) 3.8 5.7 8.0 10.8 18.9
Earnings per share, e 0.02 0.04 0.05 0.07 0.12
EPS, diluted, e 0.02 0.03 0.05 0.06 0.12
BALANCE SHEET
ASSETS 30/6/2010 30/6/2009 31/12/2009
Intangible assets 15.6 3.9 13.5
Tangible assets 6.4 3.9 4.6
Goodwill 19.4 0.0 19.4
Other financial assets 4.2 1.1 2.8
Non-current assets total 45.6 8.9 40.4
Inventories 0.3 0.1 0.4
Other receivables 30.5 26.0 31.3
Available-for-sale
financial assets 16.7 14.7 17.6
Cash and bank accounts 12.9 44.2 16.1
Current asset total 60.4 84.9 65.5
Total 105.9 93.8 105.9
SHAREHOLDERS' EQUITY
AND LIABILITIES 30/6/2010 30/6/2009 31/12/2009
Equity 45.5 40.8 48.8
Other non-current 2.3 0.1 2.5
Deferred revenues 7.4 6.7 6.7
Non-current liabilities total 9.7 6.8 9.2
Other current 20.9 16.6 19.0
Deferred revenues 29.8 29.6 28.9
Current liabilities total 50.7 46.1 47.9
Total 105.9 93.8 105.9
Cash flow statement 30/6/2010 30/6/2009 31/12/2009
Cash flow from operations 12.5 11.2 16.4
Cash flow from investments -6.0 -2.4 -31.8
Cash flow from financing
activities 1) -11,6 -11.5 -12.0
Change in cash -5.1 -2.7 -27.4
Cash and bank at 1 Jan 34.5 60.9 60.9
Change in net fair value of
Available-for-sale 0.0 0.5 0.1
Cash and bank at end of period 29.4 58.7 33.6
Statement of changes in shareholders' equity
share unstricted assets
share premium equity- treasury ret. avail. Trans. Total
Equity on: capital fund reserve shares earnings f.sale diff.
31.12.2009 1.6 0.2 3.1 -3.5 47.8 0.0 -0.3 48.8
Total
comprehensive
income
for the year 7.8 0.0 0.2 8.0
Dividend -9.3 -9.3
Treasury shares -2.3 -2.3
Cost of
share based payments 0.3 0.3
Equity on
30.6.2010 1.6 0.2 3.1 -5.8 46.5 0.0 -0.1 45.5
Note 1) Cash flow from financing
The company has bought own shares by 2,320,858 euro. Dividend for year 2009
0.06 euro per share totaling 9,310,086.12 euro was paid on 8th April 2010. In
2009, paid dividend totaled 10,903,928.26 euro.
Key ratios 2010 2009 2009
6 m 6 m 12 m
Operating result,
% of revenues 16.4 21.3 19.2
ROI, % 48.3 54.1 45.0
ROE, % 33.0 38.4 32.2
Equity ratio, % 66.5 71.0 69.8
Debt-to-equity ratio, % -63.9 -143.8 -68.1
Earnings per share (EUR) 0.05 0.07 0.12
Earnings per share diluted 0.05 0.06 0.12
Shareholders' equity
per share, e 0.29 0.26 0.31
P/E ratio 20.7 18.5 22.8
Capitalized expenditures (Me) 5.7 2.4 37.2
Contingent liabilities 19.2 8.3 19.4
Personnel, average 842 733 770
Personnel, end of period 847 752 826
Segment information
The Group has only one segment; data security.
Quarterly development
1/09 2/09 3/09 4/09 1/10 2/10
Revenues 30.6 31.7 31.1 31.8 31.4 32.3
Cost of revenues 2.6 2.5 2.7 2.1 2.0 1.9
Gross margin 28.0 29.2 28.4 29.7 29.4 30.4
Other operating income 0.3 0.4 0.3 0.1 0.3 0.2
Sales and marketing 13.5 13.9 13.6 15.9 14.4 15.4
Research and
development 6.8 6.7 6.9 7.5 7.8 8.3
Administration 2.0 1.7 1.6 2.2 1.9 2.1
Operating result 6.1 7.2 6.6 4.1 5.5 4.9
Financial net 0.5 0.4 0.1 0.3 -0.1 0.2
Result before taxes 6.5 7.6 6.7 4.4 5.5 5.2
Geographical information
4-6/2010 4-6/2009 1-6/2010 1-6/2009
Revenue Revenue Revenue Revenue
Nordic countries 10.8 11.5 21.2 22.0
Rest of Europe 15.0 14.2 29.6 27.9
North America 2.8 2.7 5.6 5.7
Rest of the world 3.7 3.3 7.4 6.7
Total 32.3 31.7 63.7 62.3
6/2010 6/2009
Assets Assets
Nordic countries 54.0 82.3
Rest of Europe 37.0 1.5
North America 4.3 3.7
Rest of the world 7.0 5.5
Total 102.3 93.0
