Proha Plc Stock Exchange Bulletin November 13, 2003 9.00 am
INTERIM REPORT OF PROHA PLC FOR THE PERIOD JANUARY 1-SEPTEMBER 30,2003
- The Proha Group’s net sales for the period January 1-September
30, 2003 were EUR 57.4 million (EUR 59.8 million for January 1-
September 30, 2002).
- Earnings before goodwill amortization (EBITA) and non-recurring
charges totaled EUR -2.8 (-1.6) million. Non-recurring charges
were EUR 0.7 (0.0) million.
- On September 30, 2003, the Group’s cash and cash equivalents
amounted to EUR 10.4 (5.4) million.
- The appreciation of the euro reduced the euro-denominated net
sales by approximately 7%.
- During the third quarter, business performance was in line with
normal seasonal fluctuations and as anticipated outside the
United States. The performance of the period was affected
negatively by the operating result in the United States,
which was lower than expected.
- Artemis 7 and Artemis Views 7 products have received a positive
response on the market and the sales pipeline is strong.
- The last quarter of 2003 is expected to be positive (EBITA). The
full-year net sales are anticipated to be approximately EUR 80-85
million. A positive full-year result (EBITA) before possible
non-recurring charges is subject to finalization of certain
significant contracts.
JANUARY-SEPTEMBER 2003 IN BRIEF
During the third quarter, business continued to develop unevenly
in different market areas. In the United States, net sales
declined. In other areas, the volume of business and profitability
were as expected and in line with normal seasonal fluctuations. In
Norway, the project management business continued to grow due to
investments of the oil and gas industry.
Approximately 69% of the Group’s net sales of the period
originated from outside the euro area. The appreciation of the
euro compared to the corresponding period in 2002 had a decreasing
effect on the euro-denominated net sales of Proha. However, it has
no significant effect on the profitability of the Group.
In line with its strategy, Proha focuses on the international
portfolio and project management software business. Proha is a
market leader in enterprise-level project and portfolio management
solutions.
During the first three quarters of 2003, the Group sold
approximately 47,000 (61,000) new Artemis end-user licenses. The
total number of Artemis licenses sold worldwide is approximately
544,000. The average license price has risen as sales have focused
on products with richer feature sets.
NET SALES AND RESULT
During the third quarter, net sales were as expected outside the
United States. In addition to normal quarterly fluctuations, net
sales were affected by the decline in the consultancy revenue in
the United States. The sales pipeline grew stronger during the
last months. In the period, the Group’s net sales amounted to EUR
57.4 (59.8) million, which was EUR 2.4 million less than in 2002.
The appreciation of the euro compared to the corresponding period
in 2002 reduced the euro-denominated net sales by approximately
7%. Earnings before goodwill amortization (EBITA) totaled EUR -3.5
(-1.6) million including EUR 0.7 (0.0) million of non-recurring
charges that were caused by terminations of employment.
In the interim report for the corresponding period in 2002, Dovre
International AS (Dovre) was consolidated as an associated
company. For the period January-September 2003, Dovre has been
consolidated as a subsidiary. Accountor Oy was sold in November
2002 and, together with other sold operations, is included in the
net sales for the corresponding period in 2002. In the table
below, the net sales for January 1-September 30, 2002 have been
adjusted to be comparable with the net sales for the first three
quarters of 2003 (EUR million).
Net sales for the period January 1-September 30, 2003 57.4
Net sales January 1-September 30, 2002*) 59.8
The effect of Dovre’s consolidation as a subsidiary +14.4
The effect of sold operations -4.9
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Pro forma net sales January 1-September 30, 2002 69.3
Effect of changes in exchange rates -5.6
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Net sales representing business volume 63.7
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Change in business volume -6.3
*) As per the interim report.
Distribution of net sales by product type:
Net sales by EUR Percentage of
product type million net sales
One-time license revenue 9.4 16.4%
Recurring license revenue 12.3 21.4%
Services 35.7 62.2%
Total 57.4 100.0%
License revenue amounted to EUR 21.7 million, accounting for 38%
of net sales. The share of one-time license revenue was EUR 9.4
million and that of recurring licenses EUR 12.3 million. The
emphasis lay still on services which constituted EUR 35.7 million
of net sales. In addition to Dovre's operations, the services
include consulting, training, implementation and support of the
Group's repeatable software solutions.
Net sales by country (including Dovre)
1-9/2003 1-9/2002 (pro forma)
Great Britain 12% 8%
Italy 7% 8%
Japan 7% 6%
Norway 31% 22%
France 10% 8%
Germany 5% 5%
Finland 10% 9%
United States 17% 33%
Other 1% 1%
Total 100% 100%
Earnings before goodwill amortization and non-recurring charges
(EBITA) totaled EUR -2.8 million, declining by EUR 1.2 million
compared to the corresponding period in 2002. Non-recurring
charges that were caused by the terminations of employment were
EUR 0.7 (0.0) million during the period.
Operating loss (EBIT) was EUR -5.0 million compared to an
operating loss of EUR -0.2 million in the corresponding period in
2002. The consolidation reserve of EUR 3.0 million, which was
recognized as income in the corresponding period in 2002, improved
the nine-month operating result for 2002.
Earnings per share amounted to EUR -0.11 (-0.01). Return on
investment (ROI) was -22.4% and return on equity (ROE) was -56.5%.
FINANCING AND INVESTMENTS
At the end of the nine-month period, cash and cash equivalents
totaled EUR 10.4 (5.4) million, showing an increase of EUR 5.0
million compared to the corresponding period in 2002. Cash assets
were increased by the sale of non-core operations and the proceeds
from a convertible loan during the last quarter of 2002. In the
period, cash flow from operating activities was EUR 4.8 million
negative which resulted mainly from the losses of Artemis’ US-
based operations. Repayment of loans also decreased cash assets by
EUR 1.2 million. Proceeds from new loans were EUR 3.3 million and
resulted mainly from a credit granted by Laurus Master Fund Ltd.
The share issue conducted during the period increased cash assets
by EUR 0.9 million.
In the period, the Quick Ratio was 1.1 (0.83). Gross investments
in fixed assets were EUR 0.7 million.
The balance sheet total on September 30, 2003 was EUR 49.1 (44.2)
million. Equity to assets ratio was 24.5% and gearing 9.2%.
At the end of the period, interest-bearing liabilities amounted to
EUR 11.4 (4.9) million, accounting for 23.4% (11.4%) of the
Group's capital and reserves, provisions, and creditors total. Of
the interest-bearing liabilities, EUR 4.9 million were non-current
liabilities and EUR 6.5 million current liabilities.
PRODUCT DEVELOPMENT
During the nine-month period, the product development costs of
strategic products were EUR 6.1 (6.8) million, representing 10.7%
(11.4%) of the net sales of the period. R&D costs are expensed in
the year they are incurred. The reorganization of product
development conducted in 2002 has accelerated product development
cycles and saved costs. Tactical products have been developed
regionally. The product development costs of tactical products are
also expensed in full.
The development of project and portfolio management solutions
continued intensively. The Portfolio Director software was
complemented by the functionally more extensive Artemis 7
application, which was introduced in August. It consists of
modules which can be compiled to form solutions for portfolio,
project, and resource management. Towards the end of 2003, Artemis
7 will be complemented by industry-specific adaptations and
templates.
A technically improved version of the established Artemis Views
project and resource management software was introduced to the
market in September.
In September, Proha's Norwegian-based subsidiary Safran Software
Solutions introduced a new product: Safran for Microsoft Project.
The product is compatible with Microsoft Project and adds, e.g.
Earned Value reporting to Microsoft Project.
Regional project management solutions were also enhanced. Towards
the year-end, new versions will expand the functionality of all
solutions. This is anticipated to enlarge the potential customer
base.
PERSONNEL
At the end of the period, the Proha Group employed 623 (599)
people. The number of employees in Finland was 94 (221), whereas
529 (378) worked abroad. The average number of personnel in the
nine-month period was 646 (615).
The comparable number of personnel for the corresponding period in
2002:
At the end On the
of the period average
Number of employees *) 599 615
The effect of Dovre’s
consolidation as a subsidiary 156 153
The effect of sold operations -103 -110
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Pro forma number of employees 652 658
*) As per the interim report for January 1-September 30, 2002
Staff costs amounted to EUR 43.1 (34.0) million, constituting 75%
(57%) of net sales. The staff costs for the period include EUR 0.7
million of non-recurring charges caused by terminations of
employment.
Comparable staff costs (EUR million) for the corresponding period
in 2002:
Staff costs *) 34.0
The effect of Dovre’s consolidation as a subsidiary 12.9
The effect of sold operations -2.9
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Pro forma staff costs 44.0
Pro forma net sales 69.3
% of pro forma net sales 63.4%
*) As per the interim report for January 1-September 30, 2002
STATEMENT ON THE ADEQUACY OF THE GROUP ASSETS
On September 30, 2003, the Group’s cash and cash equivalents
amounted to EUR 10.4 million. At the end of the corresponding
period in 2002, cash and cash equivalents were EUR 5.4 million.
According to the Proha management, the Group’s cash and cash
equivalents are sufficient to continue as a going concern.
SHARE CAPITAL AND AUTHORIZATIONS TO ISSUE SHARES
Proha has one class of shares. The book value of the shares is EUR
0.26 per share and each share entitles the shareholder to one
vote. Proha Plc shares are traded on the NM list of the Helsinki
Stock Exchange.
At the beginning of the period, the share capital of Proha Plc was
EUR 13,485,490.20 and the total number of shares was 51,867,270.
In the special issue on June 27, 2003, Proha Plc’s share capital
was increased by EUR 390,000.00 by giving 1,500,000 shares to
three Finnish capital investment funds. The increase in share
capital was entered into the Trade Register on July 3, 2003.
On September 30, 2003, the share capital of Proha Plc was EUR
13,875,490.20 and the total number of shares was 53,367,270.
At the Annual General Meeting on April 24, 2003, the Board of
Directors was authorized to increase the company’s share capital
through one or more issues of new shares, stock options, option
warrants and/or convertible bonds. Pursuant to this authorization,
the aggregate maximum number of new shares to be issued or offered
for subscription pursuant to stock options, option warrants and/or
convertible bonds shall not exceed 10,373,454 shares with a book
value of EUR 0.26 each and the share capital of the company may be
increased by no more than EUR 2,697,098.04.
After the special issue, a total of 8,873,454 shares corresponding
to EUR 2,307,098.04 in share capital remain unused of the
authorization representing 17% of the registered share capital as
of September 30, 2003. The authorization is valid until April 23,
2004.
CONVERTIBLE LOAN
On December 20, 2002, Proha issued a convertible loan that was
offered for subscription to professional investors. A total of EUR
2,810,000 of the loan was subscribed. The fixed interest of the
loan is 6.00% p.a. The loan matures on December 30, 2007. The loan
can be converted into a maximum of 4,496,000 new shares.
INCENTIVE SYSTEM FOR PERSONNEL
At its meeting on May 8, 2003, the Proha Board of Directors
approved the subscriptions of the stock option issue that is part
of Proha’s incentive system. In the issue, a total of 824,055
Proha Plc stock options were subscribed, amounting to a
subscription of 824,055 shares. The stock options were granted
without compensation to the key persons of the Proha Group. On
April 24, 2003, the Annual General Meeting granted a total of
450,000 stock options to the members of the Board of Directors.
The Board of Directors granted the rest of the stock options.
The Board of Directors confirmed the subscription price for a
share subscribed on the basis of the stock option as EUR 0.50.
TRADING ON THE HELSINKI STOCK EXCHANGE
The number of registered shareholders of Proha Plc totaled 3,737
at the end of the nine-month period. During the period, the share
price was EUR 0.43 at its lowest and EUR 0.79 at its highest, and
the closing price on September 30, 2003 was EUR 0.66. Market
capitalization was approximately EUR 35.2 million at the end of
the period. The trading volume of the Proha share on the NM list
of the Helsinki Stock Exchange was over EUR 9.4 million during the
nine-month period.
EXAMPLES OF CUSTOMER AGREEMENTS
Due to the confidential nature of the customer agreements, the
agreements that are mentioned below are only examples and do not
give a full picture of the number of customer agreements signed
during the nine-month period.
Applications for cost control and scheduling
Artemis Finland Oy signed new customer agreements on the delivery
of locally developed CMPro 5 and PlaNet software solutions. The
company will provide its cost control system CMPro 5 as an ASP
service for the Vuosaari harbor project of the Port of Helsinki.
The PlaNet software will be used for the scheduling of the
project.
Framework agreement on project management software
Artemis Finland also signed a framework agreement with UPM-Kymmene
on the delivery of CMPro 5 and PlaNet project management solutions
and related services. Pursuant to the agreement, Artemis Finland
takes part in the UPM-Kymmene fine paper project in China.
Significant Artemis 7 deals in the public sector of France
Both the city of Bordeaux and the financial services department of
the French postal service opted for the investment portfolio
management solution, Artemis 7. The combined value of these deals
is approximately one million euros.
The insurance and finance group Generali Vienna Group chose
Artemis 7
The Austrian-based insurance and finance group Generali Vienna
Group, which operates in Central Europe, decided to use Artemis 7
for its project and portfolio management. The software has 400
users in the group. Generali Vienna is part of the worldwide
Generali group, which is the fourth biggest company in Europe
in its field.
OTHER EVENTS DURING THE NINE-MONTH PERIOD
Artemis opened a representative office in China
Artemis International Solutions Corporation (AISC) opened an
office in Shanghai to meet the growing demands of the Chinese
project and portfolio management market. The Chinese market offers
AISC growth opportunities and the objective is to expand to the
inland market through partnerships in mainland China and Hong
Kong.
Proha’s joint discussions on temporary dismissals in Finland
As a result of the joint discussions concerning its personnel in
Finland, the Proha Group will temporarily dismiss 91 employees at
the most for an average of 2 weeks. The maximum total number of
temporary dismissals will be 50 man-months and they are scheduled
to take place between September 2003 and March 2004. The temporary
dismissals apply to the personnel of Artemis Finland Oy, which is
the subsidiary of Proha's sub-group Artemis International
Solutions Corporation, as well as the personnel of Proha Plc and
its subsidiaries Intellisoft Oy and ProCountor International Oy.
Artemis International Solutions Corporation signed USD 5 million
loan agreement
Proha Plc’s subsidiary, Artemis International Solutions
Corporation (AISC) agreed on a line of credit up to USD 5 million
with Laurus Master Fund Ltd (Laurus) to finance its business
operations.
Laurus has the right to convert any portion of the outstanding
loan into AISC shares at a per share market price plus 25%.
Pursuant to the terms of the agreement, Laurus' beneficial
ownership in AISC is limited to 2.5%. In connection with the loan
agreement, Laurus receives a warrant to purchase 125,000 AISC
shares. AISC has the right to repay the loan at any time.
Proha outsourced ASP services of Intellisoft to Xenetic Oy
Proha continued to focus on its core business, portfolio and
project management software products, and outsourced the ASP
services of its subsidiary Intellisoft Oy to Xenetic Oy. This
agreement complements the hosting and network services that were
outsourced to Xenetic in 2002. Pursuant to the agreement, most of
the personnel responsible for the ASP services at Intellisoft were
transferred to Xenetic. Other Intellisoft employees will continue
to work for the Proha Group. The agreement has no material effect
on Proha’s net sales or result.
AISC settles shareholder lawsuit
AISC signed an agreement for the settlement and release of all
claims against AISC in the class action complaint filed against
Opus360 Corporation in April 2001. The AISC’s insurer will cover
substantially all of the USD 550,000 settlement costs. The
settlement is subject to approval by the United States District
Court for the Southern District of New York.
In Proha’s prior view, there was no ground for the complaint and
it has no financial significance for the Group. The claim is
disclosed in Proha’s Financial Statements of 2002 in the Notes to
the Financial Statements under Contingent liabilities.
In 2001, Proha acquired Opus360 Corporation, which was listed on
Nasdaq at the time, and consolidated the company with its
subsidiary Artemis. The class action lawsuit filed against Opus360
Corporation was connected to its initial public offering in 2000.
Proha sold its minority holding in Tietokate Oy
As part of its strategy to focus on the portfolio and project
management software business, Proha sold its 20% holding in the
Finnish accounting company Tietokate Oy in June 2003. The gain on
sale had no material effect on the result of the Proha Group.
AISC changed independent accountant
AISC changed its certifying accountant in January 2003. The new
independent accountant of AISC is Squar Milner Reehl & Williamson
LLP.
AISC's reverse split 1:25
AISC implemented a reverse stock split on February 7, 2003. Each
twenty-five (25) shares of AISC common stock issued and
outstanding were converted into one share of common stock.
Artemis’ shareholders approved the reverse stock split at a
special meeting held on October 21, 2002.
Prior to the reverse split, AISC had approximately 250,000,000
shares of common stock outstanding, and following the reverse
split it has approximately 10,000,000 shares outstanding. The
trading of the reverse split shares commenced on February 7, 2003
on OTCBB. The new trading symbol for the shares is AMSI.
The reverse split is a technicality that does not have an effect
on the size of Proha’s ownership of AISC or on Proha shares or on
the trading of Proha shares.
Changes in AISC
In April 2003, the Board of Directors of AISC elected Steven
Yager, President of Gores Technology Group Inc, as the new
Chairman of the AISC Board. Mr. Yager has previously served as
Vice Chairman of the AISC Board. The former Chairman, James
Cannavino, continues as a member of the AISC Board.
The AISC Board of Directors terminated the employment agreement of
Ari Horowitz, the former Executive Vice President of Corporate
Development in April 2003. Pursuant to the agreement, AISC will
pay Horowitz salary and other financial benefits for two years as
of the termination of the agreement. As a result, a non-recurring
item of EUR 0.6 million was recorded for the second quarter.
ANNUAL GENERAL MEETING HELD ON APRIL 24, 2003
The Annual General Meeting on April 24, 2003 confirmed the
Financial Statements of 2002. The CEO and the following members of
the Board of Directors were discharged from liability: Pekka Pere,
Olof Ödman, Steven Yager, Alec Gores, and Klaus Cawén. The other
members of the Board of Directors, James Cannavino, Ari Horowitz
and Michael Rusert, were not discharged from liability.
The Annual General Meeting approved the Board of Directors’
proposal according to which the result for the financial year 2002
is entered in capital and reserves and no dividend is paid.
The following six members were elected to the Board of Directors
of Proha Plc: Olof Ödman, Pekka Pere, Klaus Cawen, Alec Gores,
Steven Yager, and Pekka Mäkelä.
Ernst & Young Oy was elected as the company’s auditor, with Ulla
Nykky, APA, as the auditor in charge.
Increase in company’s share capital
The Annual General Meeting authorized the Board of Directors to
increase the company's share capital through an issue of new
shares, stock options, option warrants and/or convertible bonds
deviating from the shareholders pre-emptive subscription rights.
Pursuant to this authorization, the aggregate maximum number of
new shares to be issued or offered for subscription pursuant to
stock options, option warrants and/or convertible bonds shall not
exceed 10,373,454 shares with an account equivalent value of EUR
0.26 each, and the share capital of the company may be increased
by no more than EUR 2,697,098.04. This represents 20% of the
registered share capital and of the votes that can be cast in the
General Meeting of Shareholders at the time.
This authorizes the Board of Directors to deviate from the
shareholders’ pre-emptive subscription right if there is a strong
financial reason, such as improving the company’s capital
structure, financing operations and/or acquisitions and/or
creating incentives for the personnel of the Group. The
authorization entitles the Board to decide on the subscription
price, and other terms and conditions. The authorization is valid
until April 23, 2004.
Stock option issue
On April 24, 2003, the Annual General Meeting approved the Board
of Directors’ proposal to issue a maximum of 850,000 stock options
that are offered, deviating from the shareholders pre-emptive
subscription right, to certain key persons of the Proha Group and
to the members of the Board of Directors of Proha Plc.
The Annual General Meeting decided on the distribution of 450,000
stock options to the members of the Board of Directors as follows:
120,000 stock options to be issued to the CEO and 66,000 stock
options to each of the other members of the Board of Directors.
The Board of Directors decided on the distribution of the
remaining 400,000 stock options.
At its meeting on May 8, 2003, the Board of Directors approved the
subscriptions and confirmed the subscription price for a share
subscribed on the basis of the stock options as EUR 0.50. In the
issue, a total of 824,055 Proha Plc stock options were subscribed,
entitling to the subscription of 824,055 shares. The subscriptions
may increase the share capital by a maximum of EUR 214,254.30.
PROSPECTS FOR THE NEAR FUTURE
The last quarter of 2003 is expected to be positive (EBITA) outside
the United States. Artemis 7 and Artemis View 7 products have
received a positive response on the market and the sales pipeline
is strong. The full-year net sales are anticipated to be
approximately EUR 80-85 million. A positive full-year result
(EBITA) before possible non-recurring charges is subject to
finalization of certain significant contracts.
The Artemis sub-group will announce its result for the third
quarter in 2003 later today.
PRESS CONFERENCE
Proha Plc will hold a press conference for the media and financial
analysts on November 13, 2003 at 12.00 a.m. at World Trade Center,
address: Aleksanterinkatu 17, Helsinki.
For more information please contact:
PROHA PLC
CEO Pekka Pere, tel. +358 20 4362 000
pekka.pere@proha.com
www.proha.com
DISTRIBUTION:
Helsinki Stock Exchange
Major Media
The figures in this interim report are unaudited.
PROHA GROUP CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET
JANUARY 1-SEPTEMBER 30, 2003
INCOME STATEMENT
1/03-9/03 1/02-9/02 1/02-12/02
(EUR 1000) (EUR 1000) (EUR 1000)
Net sales 57 371 59 832 100 824
Share of associated
companies' results -18 127 -316
Other operating income 545 174 4 098
Materials and services -4 936 -10 207 -13 467
Staff costs -43 131 -33 974 -63 234
Depreciation, amortization and
value adjustments
Depreciation according to plan -861 -1 488 -2 059
Value adjustments of investments
held as non-current assets 0 -209 -703
Amortization of goodwill
on consolidation -1 458 -1 627 -2 243
Change in consolidation reserve 27 3 023 2 744
Depreciation, amortization and
value adjustments total -2 292 -301 -2 261
Other operating expenses -12 515 -15 821 -22 592
Operating profit/loss -4 975 -170 3 052
Financial income and expense -284 32 235
Profit/loss before extraordinary
items, appropriations and taxes -5 259 -138 3 287
Income taxes -797 -680 -786
Change in deferred tax liabilities -51 -7 26
Profit/loss before
minority interest -6 108 -825 2 527
Minority interest 489 162 -762
Profit/loss for the period -5 619 -663 1 765
BALANCE SHEET 30.9.2003 130.9.2002 31.12.2002
ASSETS
Non-current assets
Intangible assets 600 1 125 508
Goodwill on consolidation 12 945 14 162 14 406
Tangible assets 1 483 2 453 1 755
Investments 1 966 2 697 2 076
Non-current assets in total 16 994 20 437 18 745
Current assets
Non-current receivables 490 0 429
Current receivables 21 276 18 356 27 682
Marketable securities 83 124 92
Cash and cash equivalents 10 283 5 274 12 666
Current assets total 32 131 23 754 40 869
ASSETS TOTAL 49 126 44 191 59 614
LIABILITIES
Capital and reserves
Subscribed capital 13 875 13 485 13 485
Share premium account 4 454 3 816 3 906
Profit/loss brought forward -2 616 -5 065 -4 179
Profit/loss for the period -5 619 -663 1 765
Capital loan 187 187 187
Capital and reserves total 10 281 11 760 15 164
Minority interest 1 356 869 2 392
Consolidation reserve 263 298 290
Provisions 974 118 383
Creditors
Non-current creditors 5 157 2 746 5 196
Current creditors 31 095 28 400 36 189
Creditors total 36 252 31 146 41 385
LIABILITIES TOTAL 49 126 44 191 59 614
KEY RATIOS OF THE PROHA GROUP 1/03-9/03 1/02-9/02 1/02-12/02
Net sales (EUR 1000) 57 371 59 832 100 824
EBITDA* -2 684 131 5 313
% of net sales -4.7% 0.2% 5.3%
EBITA** -3 544 -1 567 2 551
% of net sales -6.2% -2.6% 2.5%
EBIT*** -4 975 -170 3 052
% of net sales -9% 0,3% 3%
Profit/loss before extraordinary
items, appropriations and taxes -5 259 -138 3 287
% of net sales -9.2% -0.2% 3.3%
Profit/loss for the period -5 619 -663 1 765
% of net sales -9.8% -1.1% 1.8%
* Earnings before interest, taxes,
depreciation and goodwill amortization
** Earnings before interest, taxes and
goodwill amortization
*** Earnings before interest and taxes
Research and development costs
EUR 1000 6 112 6 800 8 610
% of net sales 10.7% 11.4% 8.5%
Personnel at the end
of the period 623 599 643
Average personnel 646 615 753
Weighted number of shares 52 361 775 51 774 960 51 798 227
Earnings per share, EUR -0.11 -0.01 0.03
Weighted number of shares
diluted by stock options 52 726 337 51 851 181 51 938 283
Earnings per share, EUR *) *) 0.03
*) The key ratio Earnings per share, adjusted by the dilution
effect, is not presented because it would be better than the
undiluted figure.
Number of shares
at the end of the period 53 367 270 51 867 270 51 867 270
Equity per share, EUR 0.19 0.22 0.30
Net sales by geographical area 1/03-9/03 1/02-9/02 1/02-12/02
United States 17% 38% 30%
Finland 10% 18% 14%
Rest of Europe 64% 34% 49%
Asia 9% 10% 7%
Total 100% 100% 100%
Net sales by product type 1/03-9/03 1/02-9/02 1/02-12/02
One-time license revenue 16% 19% 16%
Recurring license revenue 21% 22% 18%
Services 63% 58% 66%
Total 100% 100% 100%
CASH FLOW STATEMENT 1.1.-30.9.2003 1.1.-31.12.2002
Cash flow from operating activities
Operating profit/loss -4 975 3 052
Adjustments
Depreciation, amortization and
value adjustments 2 292 2 261
Profits and losses on sale of
fixed assets and shares -61 -3 037
Other adjustments 588 165
Change in net working capital -2 296 -2 883
Financial income and expense, net -273 2
Income taxes -41 195
Cash flow from operating activities -4 766 -245
Cash flow from investing activities
Investments in tangible and
intangible assets -681 -1 071
Cash flow from acquisition of
subsidiaries and associated companies 0 -804
Cash flow from disposal of
subsidiaries and associated companies 150 4 225
Other paid cash flows 0 -57
Other received cash flows 255 263
Cash flow from investing activities -276 2 556
Cash flow from financing activities
Share issue 938 0
Proceeds from short-term loans 3 114 1 487
Repayments of short-term loans -617 0
Proceeds from convertible loan 0 2 810
Proceeds from long-term loans 156 1 733
Repayments of long-term loans -585 -2 891
Dividends paid -347 0
Cash flow from financing activities 2 659 3 139
Change in cash and cash equivalents -2 383 5 450
Cash and cash equivalents
at the beginning of the period -12 666 -6 954
Cash and cash equivalents of
subsidiaries acquired 0 -319
Cash and cash equivalents of
subsidiaries sold 0 57
Cash and cash equivalents
at the end of the period 10 283 12 666
Change in cash and cash equivalents -2 383 5 450
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