STONESOFT CORPORATION STOCK EXCHANGE RELEASE FEBRUARY 16, 2007 AT 9:15 AM
STONESOFT CORPORATION'S FINANCIAL STATEMENTS RELEASE FOR JANUARY-DECEMBER 2006
IMPROVING DEVELOPMENT DURING THE SECOND HALF-YEAR
Stonesoft Corporation's position in the marketplace changed through the
introduction of new products from a network security provider to a provider of
network security and information availability. The change was very well received
in the market and towards the end of the year it was shown as an increase in the
sales pipeline, but not fully in the sales figures. The company expects this
development to generate an increase in net sales in 2007.
January-December 2006
- Net sales for the financial year totaled EUR 21.9 million (EUR 22.2
million), which was 2% less than in the previous year. The development of net
sales happened in two stages during the financial year: in the first six months,
sales declined significantly, but in the last six months, the company was able to
turn the development to increase in sales volume, which raised the turnover of
the reporting period almost to the level of the previous year.
- The net sales grew +8.1% during the last six months compared to the
corresponding period in the previous year.
- The sales of the main product portfolio, StoneGate, including Firewall, VPN
and IPS, were EUR 8.3 million (EUR 8.4 million).
- The growth of the sales of StoneGate was +15.1% during the last six months
(H2) compared to the corresponding period in the previous year.
- Operating loss was EUR 6.5 million (EUR -6.3 million). The operating loss
included a non-recurring cost of EUR 0.2 million due to the sale of Embe Systems
Oy.
- Earnings per share were EUR -0.11 (EUR -0.10.)
- Shareholders' equity per share was EUR 0.17 (EUR 0.28).
- Liquid assets totaled EUR 14.9 million (EUR 18.9 million) at the end of the
financial year.
- Cash flow was negative EUR 4.0 million (EUR -3.3 million)
- The fixed sales price of Embe Systems Oy was EUR 3.63 million (the total
sales price will be EUR 4.65 million at the maximum). The sales profit was EUR
2,2 million, which will be booked in January.
CEO Ilkka Hiidenheimo
Stonesoft managed to build a foundation for growth in 2007 by implementing the
new strategy and growth plan during the summer of 2006. We changed our position
in the market by providing new products in our product portfolio from a network
security provider to a provider of network security and secure information
availability. The change clearly strengthened our market position and increased
our sales pipeline strongly during the last six months, even though the
development was not fully seen as an increase in the sales figures.
Based on our growth plan, we strengthened our effort to increase sales and expand
our customer base during the last six months, and initiated several sales
campaigns to support the development of sales. Stonesoft renewed its product
strategy and reorganized its organization and the executive management to be more
customer-oriented. Furthermore, the recruitment and training of the sales teams
in different countries were accomplished and the partner network was structured
according to the target level of the main markets.
These activities created a major increase in the sales pipeline during the last
six months, which indicates positive development in sales in particular from the
second quarter of 2007 onwards.
To be able to fully focus on our strategy of integrated network security and
business continuity, we signed in December a sales contract to sell Embe Systems
Oy based on which the transfer of ownership took place in January 2007. We
received a fixed purchase price of EUR 3.63 million, while the total purchase
price can be up to EUR 4.65 million at the maximum. The transaction brought a non-
recurring cost of EUR 0.2 million.
According to our growth plan, during 2007 we will launch a new StoneGate product
line with increased performance and extend our product offering with a SSL VPN
solution for mobile use. We will further strengthen our co-operation with
partners and accelerate sales and marketing targeting to a strong growth of net
sales and improved profitability.
October - December 2006
- Net sales for the fourth quarter were EUR 5.8 million (EUR 5.8 million). Growth
was 1% compared with the previous year's corresponding quarter.
- The net sales of the group's main product line, StoneGate, were EUR 2.3 million
(EUR 2.4 million, a 4% decrease compared with the corresponding quarter of the
previous year.
- Operating loss was EUR 2.0 million (EUR -2.0 million).
- Earnings per share were EUR -0.03 (EUR -0.03)
- The group's cash flow was EUR + 2.4 million (EUR -1.2 million)
The geographical distribution of net sales was as follows: Europe, Middle East
and Africa 80% (72%), North and South America 14% (19%) and Asia-Pacific 6% (9%).
NET SALES AND PROFIT
January - December 2006
The group's net sales in January-December were EUR 21.9 million (22.2 million),
compared to EUR -0.4 million in corresponding period in the previous year, or
-2%. The loss for the year was EUR 6.5 million (EUR -6.3 million).
The geographical distribution of net sales was as follows: Europe, Middle East
and Africa 78% (72%), North and South America 16% (20%) and Asia-Pacific 6% (8%).
The operating loss for the year was EUR 0.3 million worse comparing to the
corresponding time previous year. The loss for the year after taxes was EUR 6.4
million (-6.0 million).
Finance and investments
At the end of the year under review, total assets were EUR 24.5 million (EUR 26.8
million). The equity ratio was 66% (74%) and gearing (the ratio of net debt to
shareholders' equity) was -1.50 (EUR -1.14). Consolidated liquid assets at the
end of the year totaled 14.9 million (18.9 million). Investments in tangible and
intangible assets totaled EUR 0.4 million (EUR 0.4 million).
DEVELOPMENT OF BUSINESS OPERATIONS
Main business events in 2006
- In January, the renowned technical university, RWTH Aachen, chose Stonesoft's
network security products to protect its IT network.
- In February, the Finnish Defense Forces selected Stonesoft's firewalls to
protect its transition network.
- In February Information Security Magazine, the leading international network
security magazine, named StoneGate SG-4000 "Hot Pick of the month".
- In February, the District Prosecutor pressed charges against Stonesoft in a
suspected securities market information offence related to the ongoing disclosure
requirements for public companies and regarding the alleged delay of Stonesoft's
profit warning issued in February 2001. The District Court dismissed all the
charges in November. The District Prosecutor has appealed the judgment in January
2007.
- In March, Stonesoft introduced the first internal Firewall/VPN Solution for IBM
Mainframes with fully clustered load-balancing capabilities.
- StoneGate firewall was selected as the best in Europe in two categories in a
competition of the respected Secure Computing Magazine in April.
- Stonesoft entered into a partner agreement in May with Fujitsu Services Oy,
according to which Fujitsu includes product, maintenance and service sales of
Stonesoft network security products in its offering in the Nordic and Baltic
countries.
- In May, CERN announced an agreement for cooperation in research and development
with Stonesoft. CERN is using Stonesoft's technology to protect its grid network.
- In June, Stonesoft launched the new generation StoneGate Platform providing
secured, optimized and resilient connectivity for converged services, while
preventing damage from attacks.
- In June, Stonesoft signed a global agreement with the United Nations for the
provision of StoneGate products and services.
- Cern announced in May an agreement for co-operation in research, according to
which it will use Stonesoft's technology to protect its grid network.
-American independent research company Gartner included Stonesoft in its Magic
Quadrant report and described it as an innovative network security company.
- TietoEnator Oyj and Stonesoft signed a partner agreement. According to the
agreement, TietoEnator includes Stonesoft products in their service offering.
- Stonesoft and ITPS Ltd signed an agreement for co-operation in England. Based
on the agreement ITPS will sell StoneGate products and services securing business
continuity and network.
- Siemens and Stonesoft signed a partner agreement in Spain. The agreement
broadens the geographical scope of the agreement signed earlier with Siemens that
covers Scandinavia and Central Europe.
- Stonesoft was granted four patents during the year: two in the USA and two in
Europe.
REVIEW OF MAJOR RESEARCH AND DEVELOPMENT ACTIVITIES
Investments in research and development during the fiscal year totaled EUR 1.3
million (EUR 1.2 million).
Research and development employed 67 (67) persons at the end of the financial
year.
SHARE CAPITAL AND STOCK OPTION PROGRAM
At the end of the financial year on 31 December 2006, Stonesoft's share capital
recorded in the Trade Register totaled EUR 1,146,054.64. The number of shares was
57,302,732. The share capital remained unchanged.
Stock Option Programs
During 2006, no subscriptions were made on the basis of the option programs for
key personnel of the company.
The valid stock option program and the subscription price are: Stock Option
program 2004-2010 and subscription price is EUR 0,56.
DEVELOPMENT OF SHARE PRICES AND TURNOVER
On January 2, 2006, Stonesoft's shares were valued at EUR 0.49. At the end of the
year, the share price was EUR 0.47. The highest share price was EUR 0.61 and the
lowest EUR 0.41. During the year, the total turnover of Stonesoft shares amounted
to EUR 10.9 million. Stonesoft's share price decreased by 4,1% during the fiscal
year. Over the same period, the Helsinki Stock Exchange HEX index increased by
17,2 %, while the Information Technology sector index decreased by 2,1%. Based on
the share price on December 29, 2006, Stonesoft's market capitalization was EUR
26.9 million.
PROPOSAL BY THE BOARD OF DIRECTORS FOR DISTRIBUTION OF PROFIT
The parent company's operating loss before amortization of goodwill (EBITA) was
EUR 6.5 million. At the end of the period, neither the group nor the parent
company had any distributable equity in its shareholders' equity. The Board of
Directors proposes that the parent pay no dividend for 2006 and that the loss be
debited to the Profit/Loss account.
PERSONNEL
At the end of the fiscal period, Stonesoft's personnel numbered 254 (252).
THE COMPANY'S BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT
In the financial year, Ilkka Hiidenheimo was the CEO of the company. The Chairman
of the Board of Directors was Pertti Ervi and other members were Ilkka
Hiidenheimo, Topi Piela, Matti Viljo and Matti Virtanen.
In the beginning of the financial year, the members of the company's Management
Team were Ilkka Hiidenheimo, Juha Kivikoski, Saara Laine, Mikael Nyberg, Erkki
Panula and Mika Rautila, and, beginning from June after Erkki Panula's
resignation Kim Fagernäs and Outi Torniainen.
AUTHORIZATIONS CURRENTLY IN FORCE
The Annual General Meeting granted authorization to the company's Board of
Directors to decide on increasing the company's share capital in the following
way: rights offering and/or granting options and/or issuing convertible bonds.
The terms and conditions of the authorization were defined in detail in the
decision. The share capital of the company may be increased in one or several
lots in such a way that the shares issued in the rights offering and/or the
shares issued on the basis of the issued options and/or the shares issued in
exchange for convertible bonds can altogether increase the share capital of the
company by a maximum of EUR 229,000.00.
The authorization will be in force until the following Annual General Meeting of
Shareholders, but not, however, for more than one year from the date of the
resolution of the Annual General Meeting of Shareholders.
The granted authorization was not used in 2006.
CORPORATE GOVERNANCE
Stonesoft complies with the Corporate Governance Recommendation for listed
companies issued by the Helsinki Stock Exchange. More information can be found
from Stonesoft's Website:
http://www.stonesoft.com/en/investor_relations/corporate_governance
MAJOR EVENTS AFTER THE FINANCIAL YEAR
- Swisscom Mobile chose Stonesoft firewalls to protect their network
architecture.
- StoneGate was nominated as a candidate for the best network security product
in the Secure Computing Magazine awards. Last year Stonesoft won the categories
of firewall and best network product.
- Stonesoft extended its product offering to mobile users. The company signed a
partner agreement with Portwise Ab, a Swedish company specializing in a browser-
based SSL VPN solution for mobile and remote use
- Stonesoft launched the new members of the renewed StoneGate product line,
StoneGate FW-5100 and IPS-6000 for large and demanding network environments.
StoneGate FW-5100 is designed for networks requiring a performance of 10 Gbps and
StoneGate IPS-6000 meets capacity requirements of 2 Gbps.
RISKS AND BUSINESS UNCERTAINTIES
Risk Management is organized to be part of the Stonesoft management system. The
Board of Directors approves the risk management policy that includes risk
management principles and processes. The CEO is responsible for organizing risk
management for the group, and the CFO (Chief Financial Officer), as the
coordinator of risk management, develops risk management tools and reporting
systems and establishes global insurance policies. The directors of the business
units are responsible for identifying and managing risks in their units. The
target of risk management is to ensure conditions for achieving the strategic
targets and the business continuity.
In the near future, the risks and business uncertainties relate to the
realization timetable of the sales projects and possible production disruption of
our subcontractors and suppliers.
Operational risks
Stonesoft constantly develops its sales processes and related control systems.
Product sales and the sales of related services are made mainly through global a
channel. The sales are supported by the legal department, which seeks to reduce
the legal risks related to business operations through continuously developing,
managing and giving guidance related to Stonesoft agreements, and by making legal
risk assessments for business plans before their implementation. The company has
worldwide insurances to cover operational risks. Stonesoft manages and safeguards
its critical business information by stringent internal policies and processes.
The company constantly reviews and updates its network infrastructure and
guarantees the safety of its business-critical information. All critical
components are duplicated and, in addition, the company has a continuously
updated back up system placed in another physical location.
Financial risks
The most significant currency in addition to euro is US dollar. The company's
costs occur mostly in Euros. The company operates actively to minimize the
exchange rate risks.
The main principles of the treasury policy of the company are; (i) to ensure the
short-term liquidity of the company, (ii) to guarantee efficient circulation and
short-term investments of the operational cash flows and (iii) to follow prudent
and transparent investment policy for the cash reserves, aiming at guaranteeing
competitive return on the selected risk level. The company's reserves are all
invested in interest-bearing low-risk instruments.
The company's operations and related costs are continuously controlled. The
company does not have a separate internal audit organization or a separate audit
committee.
FUTURE OUTLOOK
According to the Research Institute, Infonetics, the Firewall/VPN and Intrusion
detection and protection market will grow globally by roughly ten percent in
2007. The market will continue to be dynamic.
In our view, the companies will continue networking with their partners and
subcontractors, and this development will create even higher requirements for
network security and availability. Furthermore, we believe that combining the
security and high availability, which has been the basis for StoneGate product
design from the beginning, will prove its strength even better than before in
this development.
The convergence of voice, video and data on IP-based networks will create more
demand for capacity and drive the adoption of 10 Gbps networks. The growing
demand for added bandwidth together with new protocols in the IP networks is
expected to increase the general demand for better reporting, monitoring and
analysis tools. This development will support Stonesoft in achieving its year
2007 growth plan, since these are the cornerstones in StoneGate Management
Center's functionality. Furthermore, Stonesoft will further strengthen its
competitiveness in the market with its new appliance family that addresses the
performance issue with a new 10 Gbps appliance, while maintaining the
price/performance ratio.
Stonesoft will continue its decisive and persistent efforts to increase its net
sales and to improve the profitability of the company. The main target for 2007
is to have a strong growth of net sales generating also improved profitability.
By extension of the product portfolio and improved competitiveness, we aim to win
more of single sales deals of larger size.
Based on the extension of the product portfolio, intensification of sales efforts
and strong growth of the sales pipeline, the company expects to have an annual
overall net sales of roughly 25 million euros (+/- 10%) the comparable net sales
figure during the previous financial year was 16,5 million euros. The annual
costs are expected to be 24,5 million euros (+/- 10 %). The comparable cost
during the previous financial year was 22,6 million euros. The operating profit
and the total result for the whole year is expected to develop favorably.
The operative result during the first quarter is expected to remain negative,
while the overall result will be positive due to the income from the sales of
Embe Systems Oy to be booked in the first quarter.
With regard to the development of both the turnover and the result, we expect a
significant variation between the quarters in comparison to the corresponding
quarter during the previous year as well as to the previous quarter as a
consequence of, among others, long selling cycles, a relatively big impact of
individual deals, and the variation between the quarters in the previous year.
Stonesoft Group
Income Statement 1.1-31.12.2006 1.1-31.12.2005
(1000 Euro)
Continuing operations
Continuing operations means all group operations, excluding EMBE Systems Oy
operations sold in January. In the future we report on continuing operations.
Net Sales 16 479 16 453
Other operating income 766 545
Materials and services -1 915 -1 937
Personnel expenses -13 135 -12 667
Depreciation -512 -1 055
Other operating expenses -8 292 -7 800
Operating Result -6 608 -6 460
Financial income and expenses 382 526
Result before taxes -6 226 -5 934
Taxes -262 -282
Result from continuing operations -6 488 -6 216
Profit from discontinuing operations 40 208
Result for the accounting period -6 448 -6 008
Basic earnings per share (EUR),
continuing operations -0.11 -0.11
Diluted earnings per share (EUR),
continuing operations -0.11 -0.11
Basic earnings per share (EUR),
discontinuing operations 0.00 0.00
Diluted earnings per share (EUR),
discontinuing operations 0.00 0.00
Stonesoft Group
Balance Sheet (1000 Euro) 31.12.2006 31.12.2005
ASSETS
Non-Current Assets
Tangible assets 608 773
Goodwill 137 218
Deferred tax assets 2 2
Total 747 992
Current assets
Inventories 912 519
Trade and other receivables 5 522 4 045
Prepayments 98 96
Marketable securities 13 755 17 378
Cash and cash equivalents 616 718
Total 20 902 22 756
Asset held for sale 2 859 3 035
Total assets 24 507 26 782
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent company
Share capital 1 146 1 146
Share premium account 76 897 76 845
Conversion differences -867 -849
Retained earnings -67 410 -60 961
Total 9 767 16 181
Long-term liabilities
Provisions 112 124
Interest bearing liabilities 62 152
Other long-term liabilities 1 296 789
Total 1 470 1 065
Short-term liabilities
Trade and other payables 12 041 8 378
Tax liability 116 55
Provisions 84 38
Short-term interest bearing liabilities 107 184
Total 12 348 8 655
Liabilities held for sales 922 881
Total liabilities 14 740 10 601
Total equity and liabilities 24 507 26 782
Stonesoft Group
Statement of changes in equity
(1000 Euro) Share Share Conversion Retained Total
capital premium difference earnings
account
Shareholders' equity
at 01.01.2005 1 146 76 821 -892 -55 012 22 063
Changes to equity 59 59
Conversion differences 44 44
Result for the period -6 008 -6 008
Total recognized income and
expense for the period 44 -5 949 -5 905
Stock options exercised 24 24
Shareholders' equity
at 31.12.2005 1 146 76 845 -849 -60 961 16 181
Share Share Conversion Retained Total
capital premium difference earnings
account
Shareholders' equity
at 01.01.2006 1 146 76 845 -849 -60 961 16 181
Conversion differences -18 -18
Result for the period -6 448 -6 448
Total recognized income and
expense for the period -18 -6 448 -6 467
Stock options exercised 52 52
Shareholders' equity
at 31.12.2006 1 146 76 897 -867 -67 410 9 767
Stonesoft Group
Cash flow statement 31.12.2006 31.12.2005
(1000 Euro)
Cash flow from operating
activities
Operating Result -6 608 -6 460
Adjustments 984 1 739
Change in net working capital -1 240 1 883
Taxes paid -261 -283
Net cash flow from operating activities
continuing operations -7 125 -3 121
Net cash flow from operating activities
discontinuing operations 114 468
Total cash flow from operating activities -7 011 -2 653
Cash flow from investing activities
Investments in tangible assets -216 -300
Investments in intangible assets -50 1 506
Investments in affiliated company 3 631 48
Investments in other shares 0 9
Net cash flow investing activities
continuing operations 3 365 1 264
Net cash flow investing activities
discontinuing operations -131 -1 647
Total cash flow investing activities 3 233 -383
Cash flow from financing activities
Payments of financial leasing liabilities -166 -149
Total cash flow from financing activities
Change in cash and cash equivalents
Cash and cash equivalents at beginning
of period 18 097 22 187
Conversion differences -18 44
Changes in the market value of investments -39 -183
Discontinuing operations 274 -766
Total cash and cash equivalents
at end of period 14 370 18 097
Stonesoft Group
Geographical segments 31.12.2006 31.12.2005
(1000 Euros)
Net Sales
EMEA 16 938 16 072
AMER 3 571 4 325
APAC 1 370 1 839
Total net sales 21 879 22 237
Operating profit
EMEA -4 131 -3 605
AMER -2 040 -2 115
APAC -366 -538
Total operating profit -6 536 -6 258
Stonesoft Group
Discontinued operations 31.12.2006 31.12.2005
(1000 Euro)
Net Sales 5 400 5 783
Other operating income 41 40
Personnel expenses -3 878 -3 954
Depreciation -69 -58
Other operating expenses -1 422 -1 610
Operating result 72 202
Financial income and expenses -15 13
Result before taxes 57 215
Taxes -17 -6
Result for the accounting period
discontinued operations 40 208
2006 2005
Tangible assets 98 68
Goodwill 1 507 1 507
Intangible assets 25 10
Other investments 4 4
Receivables 733 680
Cash and cash equivalents 492 766
Trade and other payables -922 -881
Asset and liabilities total 1 936 2 154
1.1-31.12.2006 1.1-31.12.2005
Cash flow from operating activities 114 468
Cash flow investing activities -131 -1 647
Change in cash and cash equivalents 274 -766
Cash flow total 257 -1 945
Contingent liabilities 31.12.2006 31.12.2005
(1000 Euros)
Contingent off-balance sheet
Non-cancelable other leases 6 103 7 305
Contingent liabilities for the Company 323 131
Pledged shares 585 0
Stonesoft Group
Quarterly development Q4 / Q3 / Q2 / Q1 /
(Euro Millions) 2006 2006 2006 2006 2006
Security software
and appliances 2.3 2.3 1.7 2.1 8.5
Services 2.1 2.0 2.0 2.0 8.1
Other products -0.1 0.1 0.0 0.0 -0.1
Net sales continuing operations 4.3 4.4 3.7 4.1 16.5
Change-% from previous year -2 24 -20 4 0
Net sales discontinuing
operations 1.5 1.1 1.4 1.5 5.4
Change-% from previous year 4 -3 -13 -12 -7
Net sales total 5.8 5.5 5.0 5.5 21.9
Change-% from previous year 1 17 -18 -1 -2
Sales Margin 5.3 5.0 4.6 5.0 20.0
Sales Margin % 91 90 92 91 91
Operative expenses 7.5 6.4 6.8 6.5 27 2
Operating profit (EBITA) -2.0 -1.3 -2.0 -1.3 -6.5
% of net sales -34 -23 -39 -23 -30
Result before taxes -1.9 -1.2 -1.9 -1.2 -6.2
% of net sales -33 -22 -37 -22 -28
Q4 / Q3 / Q2 / Q1 /
2005 2005 2005 2005 2005
Security software
and appliances 2.5 1.7 2.6 1.9 8.7
Services 1.9 1.9 1.9 1.9 7.6
Other products -0.1 0.0 0.1 0.1 0.2
Net sales continuing operations 4.4 3.6 4.6 3.9 16.5
Change-% from previous year -1 -7 15 18 6
Net sales discontinuing
operations 1.4 1.1 1.6 1.7 5.8
Change-% from previous year -25 -24 -12 -5 -16
Net sales total 5.8 4.7 6.2 5.6 22.2
Change-% from previous year -9 -11 7 10 -1
Sales Margin 5.2 4.4 5.5 5.2 20.3
Sales Margin % 90 93 89 93 91
Operative expenses 7.3 6.0 7.1 6.5 27.0
Operating profit (EBITA) -2.0 -1.5 -1.5 -1.3 -6.3
% of net sales -34 -33 -24 -23 -28
Result before taxes -1.8 -1.4 -1.3 -1.2 -5.7
% of net sales -31 -30 -22 -21 -26
Stonesoft Group
Key ratios 31.12.2006 31.12.2005
(1000 Euro)
Net Sales total 21 879 22 237
Net Sales Change-% -2 -1
Net Sales continuing operations 16 479 16 453
Net Sales Change-% 0
Net Sales continuing operations 5 400 5 783
Net Sales Change-% -7
Operating result total -6 536 -6 258
% of Net Sales -30 -28
Operating result continuing operations -6 608 -6 460
% of Net Sales -40 -39
Operating result discontinuing operations 72 202
% of Net Sales 1 3
Operating result before taxes -6 170 -5 719
% of Net Sales -28 -26
ROE - %, annualized -50 -31
ROI - %, annualized -46 -29
Equity Ratio-% 66 74
Net Gearing -1.50 -1.14
Total Assets 24 507 26 782
Capital Investments 381 437
% of Net Sales 2 2
R&D Costs 4 804 4 612
% of Net Sales 22 21
Number of Employees (Weighted Average) 251 247
Number of Employees(end of the period) 254 252
Share Specific Ratios
Earnings per Share (EUR) -0.11 -0.10
Earnings per Share, continuing operations -0.11 -0.11
Earnings per Share, discontinuing operations 0.00 0.00
Equity per Share (EUR) 0.17 0.28
Dividend 0.00 0.00
Dividend per Share (EUR) 0.00 0.00
Dividend / Profit-% 0 0
FORWARD-LOOKING STATEMENTS
This report contains statements concerning, among other things, Stonesoft's
financial condition and the results of operations that are forward-looking in
nature. Such statements are not historical facts, but rather represent
Stonesoft's future expectations. The company believes that the expectations
reflected in these forward-looking statements are based on reasonable
assumptions. However, these forward-looking statements involve inherent risks and
uncertainties, which could cause actual results or outcomes to differ materially
from those anticipated in the statements. These risks and uncertainties may
include, among other things, (1) changes in our market position or in the
Firewall/VPN and Intrusion detection and protection market in general; (2) the
effects of competition; (3) the success, financial condition, and performance of
our collaboration partners, suppliers and customers;(4) our ability to source
quality components without interruption and at acceptable prices;(5) our ability
to recruit, retain and develop appropriately skilled employees;(6) exchange rate
fluctuations, including, in particular, fluctuations between the Euro, which is
our reporting currency, and the US dollar;(7) other factors related to sale of
products, economic situation, business, competition or legislation affecting the
business of Stonesoft or the industry in general and (8) our ability to control
the variety of factors affecting our ability to reach our targets and give
accurate forecasts.
The figures in this financial statement release are unaudited.
For additional information, please contact:
Ilkka Hiidenheimo, CEO, Stonesoft Corporation,
Tel. +358 9 476 711
E-mail: ilkka.hiidenheimo@stonesoft.com
Mikael Nyberg, CFO, Stonesoft Corporation
Tel. +358 9 476 711
E-mail: mikael.nyberg@stonesoft.com
Stonesoft Corp.
Ilkka Hiidenheimo
CEO
Distribution:
The Helsinki Stock Exchange
This release and the presentation material related to this report are also
available on Stonesoft's web site at http://www.stonesoft.com
A press conference will take place on February 16, 2006 at 10.30 a.m. at the
Stonesoft headquarters, street address Itälahdenkatu 22A, 00210 Helsinki.