QPR Software
QPR SOFTWARE’S NET SALES ROSE TO EUR 3.6 MILLION, OPERATING MARGIN 9.5%
QPR Software 28.07.2011 08:00 --------------------------------------------------------------------------- QPR SOFTWARE PLC STOCK EXCHANGE RELEASE JULY 28, 2011 AT 9.00 AM INTERIM REPORT JANUARY 1 - JUNE 30, 2011 QPR SOFTWARE'S NET SALES ROSE TO EUR 3.6 MILLION, OPERATING MARGIN 9.5% Summary January - June 2011: -- Net sales EUR 3,552 thousand (January - June 2010: 3,443), growth 3.2% -- Net sales in Finland grew 13.5%, net sales in international markets decreased 4.3% -- Operating profit EUR 336 thousand (316), growth 6.3% -- Operating profit margin 9.5% (9.2) of consolidated net sales -- Cash flow from operating activities was EUR 968 thousand (488), growth 98.4% -- Earnings per share EUR 0.02 (0.02) April - June 2011: -- Net sales EUR 1,784 thousand (April - June 2010: 1,773), growth 0.6% -- Net sales in Finland grew 16.7%, net sales in international markets decreased 10.6%. -- Operating profit EUR 179 thousand (171), growth 4.7% -- Operating profit margin 10.0% (9.6) of consolidated net sales -- Cash flow from operating activities was EUR 447 thousand (139), growth 221.6% -- Earnings per share EUR 0.01 (0.01) Outlook 2011: QPR Software estimates the consolidated net sales 2011 to show significantly faster growth than in the previous year (growth in year 2010: 4.8%) and operating profit to remain approximately 10% of net sales. The forecast includes acquired operations of Nobultec Ltd as of 1 August, 2011. In Finland, growth is expected especially in software subscription net sales and enterprise architecture services sales. In international markets, growth is expected from Russia and CIS countries. KEY FIGURES (EUR 1,000) April - April - Change Jan - Jan - Change Jan - June, June, - % June, June, - % Dec, 2011 2010 2011 2010 2010 Net sales 1,784 1,773 0.6 3,552 3,443 3.2 6,937 Operating 179 171 4.7 336 316 6.3 752 profit % of net sales 10.0 9.6 9.5 9.2 10.8 Profit before 171 126 35.7 312 246 26.8 707 tax Profit for the 147 93 58.1 247 188 31.4 527 period % of net sales 8.2 5.2 7.0 5.5 7.6 Earnings per 0.02 0.02 0.04 share, EUR EPS (diluted), 0.02 0.02 0.04 EUR Equity per 0.20 0.20 0.22 share, EUR Cash flow from 968 488 860 operating activities Cash and cash 1,747 1,742 1,703 equivalents Net -1,067 -758 -910 liabilities Gearing, % -42.4 -30.7 -33.8 Equity ratio, 46.6 42.2 42.6 % Return on 18.9 14.9 20.0 equity, % Return on 20.1 15.2 21.0 investment, % REPORTING This interim report complies with the requirements of IAS 34 standard. The accounting and valuation principles are the same as they were 2010 financial statements. This Interim Report is unaudited. QPR Software's business operations consist of software license, subscription, maintenance and professional services sales. As of January 1, 2011 QPR Software has two segments; Software Sales International (software license and subscription sales, maintenance and professional services sales outside of Finland) and Business Operations Finland (software license and subscription sales, maintenance and professional services sales in Finland). CEO'S BUSINESS REVIEW QPR Software's business in Finland developed positively in the second quarter of 2011. Net sales in Finland grew 16.7% compared to the equivalent period last year and profitability improved significantly from previous year. Both software sales and professional services sales in Finland recorded strong growth. Service business expansion in Finland to enterprise architecture consulting proceeded as planned. In the review period we focused on offering development, service product development and marketing. In early 2011 we launched a solution for enterprise architecture management, based on Finnish public sector JHS 179 recommendation. The first project deliveries based on this solution have already started, and we believe that the new IT Governance legislation in Finland (applicable in September 2011) will have a positive impact on demand of this solution. Strong sales growth in Russia and CIS countries had a positive impact on our international net sales. Especially service business in our Russian subsidiary grew strongly compared to the equivalent period last year. We will further increase the subsidiary's resources this year. However, channel net sales decreased due to reported postponements of deliveries in our reseller partners' business. This led to a decrease of 10.6% in our international net sales in the second quarter. The launch of QPR ProcessAnalyzer software in early 2011 has been very successful. In the second quarter, we acquired several new customers for this product and our process analysis services in Finland: projects were delivered to Onninen Group, Outokumpu Corporation, Metsäliitto Group and to the Helsinki University. Software development resources for the product were increased in the review quarter. International QPR ProcessAnalyzer business has also had a good start. QPR has initiated the first software deliveries and signed the first international reseller contracts in Europe and in the US. QPR aims at strong international software sales growth and significant market share in this new category, and in addition, invests in process analysis service development in Finland. QPR ProcessAnalyzer discovers organization's actual as-is business processes automatically based on existing event data stored in IT-systems. In addition to visual business process models, the software reveals information about process variations, deviations and allows drill-down to individual cases. QPR ProcessAnalyzer is used to streamline business processes, develop IT-systems and improve quality. Jari Jaakkola CEO NET SALES April - June QPR Software Group's net sales in April - June were EUR 1,784 thousand (1,773) and grew 0.6% compared to the equivalent period in the previous year. Business operations in Finland represented 47.8% and international operations 52.2% of net sales. QPR Software's net sales in Finland rose 16.7% from previous year. Software net sales growth in Finland accelerated, mainly due to success in software subscription sales. The company's expansion into enterprise architecture management and process analysis consulting business led to growth in professional services net sales. International net sales decreased 10.6% compared to previous year. This was due to decrease in international channel net sales. The decline in international net sales was partly offset through strong net sales growth in Russia and CIS countries. Net sales growth in Russia and CIS countries was due to positive development in professional services sales and software license sales. January - June QPR Software Group's net sales in January - June were EUR 3,552 thousand (3,443) and grew 3.2% compared to the equivalent period in the previous year. Business operations in Finland represented 46.1% and international operations 53.9% of net sales. QPR Software's net sales in Finland rose 13.5 %, mainly due to strong growth in software net sales. International net sales decreased 4.3 % compared to previous year due to decline in channel net sales. Decline in international net sales was partly offset through QPR's Russian subsidiary's strong net sales growth in Russia and CIS Countries. In Finland, the Company delivered software and professional services in the reporting period, among others, to Carea, Central Finland Healthcare District, CRH Finland, DNA Oyj, Kesko Corporation, Mikkeli University of Applied Sciences, Onninen Group, Outotec Corporation, Patria Corporation, SATO Corporation, Terveystalo, Vacon, City of Varkaus, Vaisala Corporation and the Municipal IT unit of the Ministry of Finance. The largest markets outside Finland in the reporting period were Russia, South Africa, Belgium, Sweden, Great Britain and Japan. The Company delivered software, among others, to Abu Dhabi Sewerage Services Company in United Arab Emirates, Anglo Platinum and Real People in South Africa, City of Antwerp and Sibelco in Belgium, IRKUT and TNK-BP in Russia, The Ministry of Health in Lithuania, The Ministry of Justice in Lithuania, Millard Filters in Spain, The University of Santiago in Chile, United Chemical Company in Kazakhstan, Vattenfall in Sweden and to Aramark in the United States of America. Consolidated net sales by business segments, (EUR 1,000): Software Sales Business Operations Total International Finland April - June, 2011 932 852 1,784 Share-% 52.2 47.8 100.0 April - June, 2010 1,043 730 1,773 Share-% 58.8 41.2 100.0 Change-% -10.6 16.7 0.6 Jan - June, 2011 1,916 1,636 3,552 Share-% 53.9 46.1 100.0 Jan - June, 2010 2,002 1,441 3,443 Share-% 58.1 41.9 100.0 Change-% -4.3 13.5 3.2 Jan - Dec, 2010 4,077 2,860 6,937 Consolidated net sales by product group (EUR 1,000): Software Maintenance Professional Total licenses services services April - June, 455 913 416 1,784 2011 Share-% 25.5 51.2 23.3 100.0 April - June, 484 930 359 1,773 2010 Share-% 27.3 52.5 20.2 100.0 Change-% -6.0 -1.8 15.9 0.6 Jan - June, 2011 903 1,863 786 3,552 Share-% 25.4 52.5 22.1 100.0 Jan - June, 2010 969 1,808 666 3,443 Share-% 28.1 52.5 19.4 100.0 Change-% -6.8 3.0 18.0 3.2 Jan - Dec, 2010 2,101 3,622 1,214 6,937 PROFIT DEVELOPMENT April - June QPR Software's consolidated operating profit in April - June rose 4.7% and was EUR 179 thousand (171). Depreciation and amortization were EUR 134 thousand (151). Business operations in Finland recorded a significant increase in operating profit, thanks to increase in net sales. In contrast, decline in channel net sales had a negative impact on profits from international operations and thus the Group operating profit growth was modest. Group costs increased 2.3% from previous year. January - June QPR Software's consolidated operating profit in January - June rose 6.3% and was EUR 336 thousand (316). Depreciation and amortization were EUR 264 thousand (280). Growth in operating profit was due to positive net sales development in Business Operations Finland. Growth in operating profit was adversely impacted by 3.6% rise in costs. Cost increase was due to outlays in business development. Outlays in the reporting period were focused mainly on Finnish and Russian markets, and the largest share of those were salary costs. Operating profit by segments (EUR 1,000): Software Sales Business Operations Not Total International Finland allocated April - June, 88 178 -87 179 2011 April - June, 193 67 -89 171 2010 Change-% -54.4 165.7 2.2 4.7 Jan - June, 242 265 -171 336 2011 Jan - June, 347 138 -169 316 2010 Change-% -30.3 92.0 -1.2 6.3 Jan - Dec, 777 320 -345 752 2010 FINANCE AND INVESTMENTS Cash flow from operating activities in the reporting period January - June was EUR 968 thousand (488). Strong growth in software subscription sales in the reporting period had a positive effect in cash flow from operating activities. Cash and cash equivalents at the end of reporting period were EUR 1,747 thousand (1,742). The Group's investments totaled to EUR 250 thousand (169). The majority of the investments were made in product development. The purchase price for business operations bought from QPR's Russian resellers in November 2009 was set at EUR 272 thousand, including transaction costs. The price was set according to the terms agreed in purchase agreement and the financial results of the acquired operations between 1 March 2010 and 28 February 2011. The price is compensation for business operations that were transferred into OOO QPR Software and it will be paid in 2011. As part of the purchase price, the sellers received also 20 % share ownership in QPR CIS Oy. For this 20% shareholding, a call option for QPR and put option for the sellers, have been agreed. These options can be exercised in January 2014, the earliest. The Group's interest bearing liabilities decreased and were EUR 680 thousand (984) at the end of reporting period. The gearing ratio was -42.4% (-30.7). Return on capital employed was 20.1% (15.2). Current liabilities include deferred revenue in total of EUR 1,302 thousand (1,080). At the end of the reporting period, quick ratio was 2.06 (2.14). At the end of the reporting period, consolidated shareholders' equity stood at EUR 2,525 thousand (2,457) and equity to assets ratio was 46.6% (42.2). Return on equity was 18.9% (14.9). As of 30 June 2011, the remaining amount of deferred tax in consolidated balance sheet is EUR 181 thousand (353). PERSONNEL At the end of the reporting period, the Group employed a total of 65 persons (66). Out of them 10 were employed by Group's Russian subsidiary. Average number of personnel in the reporting period was 68 (63). PRODUCT AND SERVICE DEVELOPMENT The amount of product development expenses in the reporting period January-June were EUR 688 thousand (697), representing 19.4% (20.2) of consolidated net sales. In the reporting period, product development expenses have been activated as assets for a total amount of EUR 161 thousand (97). The amortization period for capitalized product development expenses is 4 years. Amortization of product development expenses in the reporting period was EUR 90 thousand (82). Product development employed 16 persons at the end of reporting period, which corresponds to 24.6% of the total personnel. Product development activities in the reporting period focused on development of a new version of the QPR product family, planned to be released at the end of 2011. Development resources for QPR ProcessAnalyzer, QPR's new software tool for Automated Business Process Discovery, were increased during the reporting period. The software executes automatically visual process analysis from depository data in business applications. QPR ProcessAnalyzer product version 2.0 was launched in February 2011. Also in February, QPR and Marketing Resultang GmbH from Germany introduced a solution for call centers, utilizing automated business process discovery by QPR ProcessAnalyzer. In March, QPR and Finnish company Nobultec Ltd introduced an automated business process discovery solution for optimizing SAP investments. In early 2011, QPR introduced a solution for public sector enterprise architecture, based on Finnish public sector JHS 179 recommendation. The first project deliveries based on this solution were initiated in the review period. SHARES AND TRADING WITH COMPANY'S SHARES Trading of shares Jan - June, Jan - June, Jan - Dec, 2011 2010 2010 -------------------------------------------------------------------------------- Shares traded, pcs 226,901 507,051 881,585 Volume, EUR 200,923 470,973 805,808 % of shares 1.8 4.1 7.1 -------------------------------------------------------------------------------- Shares and market values June 30, 2011 June 30, 2010 December 31, 2010 -------------------------------------------------------------------------------- Total number of shares, pcs 12,444,863 12,444,863 12,444,863 Treasury shares, pcs 356,150 178,249 322,212 Book counter value, EUR 0.11 0.11 0.11 Outstanding shares, pcs 12,088,713 12,266,614 12,122,651 Number of Shareholders 589 621 600 Closing price, EUR 0.87 0.89 0.91 Market value, EUR 10,517,180 10,917,286 11,031,612 Acquired treasury shares in 33,938 20,249 64,212 reporting period, pcs Book counter value of treasury 39,639 19,607 35,443 shares, EUR Total purchase value of treasury 314,340 236,391 274,701 shares, EUR Treasury shares % 2.9 1.4 2.6 -------------------------------------------------------------------------------- Company has no active option scheme. OTHER EVENTS IN THE REPORTING PERIOD Sami Tähtinen was appointed as Vice President, Products and Technology and Member of Executive Management Team at QPR Software Plc in January 24, 2011. He moved to QPR from CCC Corporation Ltd. Prior to this Mr. Tähtinen worked as Chief Technology Officer in Frends Technology from 2002 to 2009. Sami Tähtinen holds Master's degree in Engineering. QPR Software Plc's Management System received ISO 9001:2008 quality certification covering the Company's all actions on January 27, 2011. QPR Software Plc's Board of Directors decided on 25 March 2011 a new share-based incentive plan for the Group's executive management team. The plan aims to align the objectives of shareholders and key employees to increase shareholders value, to commit key employees to the company and to offer them a competitive reward plan based on ownership of shares in the company. EVENTS AFTER THE REPORTING PERIOD QPR Software Plc announced on 28 July 2011 that it is acquiring all of the issued shares of its co-operation partner Nobultec Ltd. The transaction will take place on August 1, 2011. Nobultec Ltd is a service company that specializes in business process development in SAP system environments. As the transaction takes place, Nobultec becomes QPR Software Plc's 100% owned subsidiary. The debt-free acquisition price is estimated to be approximately EUR 0.7 - 0.8 million, and is divided into base consideration of approximately EUR 0.7 million and provisional consideration of EUR 0.1 million. Provisional consideration will be paid, if business targets set for years 2011 and 2012 will be reached. M.Sc (Econ), M.Sc (tech) Mikko Mäki-Rahkola was appointed in July a Member of the Executive Management Team as of 15 August, 2011. Mikko Mäki-Rahkola is Nobultec Ltd's Managing Director. Maija Erkheikki, M.Sc.(Eng), was appointed in July as Vice President for Software Sales International as of 15 August, 2011. Her latest position in QPR was Vice President, Service & Solutions. As of 15 August 2011, QPR Software's Executive Management Teams consists of Chief Executive Officer Jari Jaakkola (chairman); Vice President, Software Sales International Maija Erkheikki; Vice President, Business Operations Finland Matti Erkheikki; Vice President, Communications and Marketing Jyrki Karasvirta; Vice President, Business Development Teemu Lehto; Chief Financial Officer Päivi Martti; Nobultec's Managing Director Mikko Mäki-Rahkola and Vice President, Products and Technology Sami Tähtinen. GOVERNANCE The Annual Shareholders' Meeting held on 18 March, 2011 approved the Board's proposal that a per-share dividend of EUR 0.03 (0.02), a total of EUR 362,876, is paid for the financial year 2010 (243,737). The dividend was paid to shareholders entered in the company's shareholder register, maintained by Euroclear Finland Oy, on the record date of 23 March, 2011. The dividend payment date was 1 April, 2011. The Annual Shareholders' Meeting resolved that the Board of Directors consists of four (4) ordinary members. The Annual Shareholders' Meeting elected the following members to the Board of Directors: Aino-Maija Gerdt, Jyrki Kontio, Vesa-Pekka Leskinen and Asko Piekkola. In its first meeting immediately following the Annual Shareholders' Meeting, the Board of Directors elected Vesa-Pekka Leskinen as Chairman of the Board. KPMG Oy Ab, Authorized Public Accountants, continued as QPR Software Plc's Auditors. The Annual Shareholders' Meeting decided to authorize the Board of Directors to decide on an issue of new shares and acquisition of its own shares from the market. The conditions of all authorizations of the Board and other decisions made by the Annual Shareholders' Meeting are available in their entirety on the stock exchange release published by the Company on 18 March, 2011 and available on the investors section of the company's web site, www.qpr.com. SHORT-TEM RISK AND UNCERTAINTIES Internal control and risk management in QPR Software Plc aims to ensure that the Company operates efficiently and effectively, distributes reliable information, complies with regulations and operational principles, reaches its strategic goals and ensures continuity of its business. QPR has identified the following three groups of risks related to its operations: risks related to business operations (country, customer, net sales forecasting process, personnel, legal and financial), risks related to information and products (QPR products, IPR, data security) and risks related to financing (foreign currency, bad debt). Property, operational and liability risks are covered by insurance. QPR monitors country, customer, personnel and finance risks also in the Russian subsidiary OOO QPR Software. Financial risks include reasonable credit risk concerning individual business partners, which is characteristic to any international business. QPR seeks to limit this credit risk by continuous monitoring of standard payment terms, receivables and credit limits. The management of QPR estimates that the company's credit loss risk is on a customary and reasonable level. The Company has hedged 16.0% of its foreign currency (non-Euro) trade receivables. No significant changes have taken place in QPR's short-term risks and uncertainties during the financial period. Risks related to QPR Software's business are further described in the Annual Report 2010, page 15 onwards (www.qpr.com/annual-reports.html). FUTURE OUTLOOK Market forecasts published in the beginning of 2011 estimate that the value of global software sales will increase approximately 7.5% and global professional services sales will increase 5-8% in 2011 compared to 2010. QPR Software estimates the consolidated net sales 2011 to show significantly faster growth than in the previous year (growth in year 2010: 4.8%) and operating profit to remain approximately 10% of net sales. The forecast includes acquired operations of Nobultec Ltd as of 1 August, 2011. In Finland, growth is expected especially in software subscription net sales and enterprise architecture services sales. In international markets, growth is expected from Russia and CIS countries. Seasonality of large software deals can affect significantly net sales and profit of one individual quarter. QPR SOFTWARE PLC'S FINANCIAL INFORMATION IN 2011 In 2011, QPR Software Plc will publish its interim report as follows: -- Interim Report 1-9/2011: Thursday, October 20, 2011 QPR SOFWARE PLC BOARD OF DIRECTORS Further information: Jari Jaakkola, CEO Tel. +358 (0)40 5026 397 www.qpr.com DISTRIBUTION: NASDAQ OMX Helsinki Ltd Main Media Neither this press release nor any copy of it may be taken, transmitted into or distributed in the United States of America or its territories or possessions. CONSOLIDATED INCOME STATEMENT (EUR 1,000) April - April - Jan - Jan - Jan - Dec, June, 2011 June, 2010 June, 2011 June, 2010 2010 Net sales 1,784 1,773 3,552 3,443 6,937 Other operating 17 3 38 37 94 income Material and 72 63 106 110 227 services Employee benefits 1,053 1,040 2,175 2,049 4,094 expenses Depreciation 134 151 264 280 532 Other operating 363 351 709 726 1,426 expenses Operating profit 179 171 336 316 752 Financial income -8 -45 -24 -69 -45 and expenses Profit before tax 171 126 312 246 707 Income tax expense -24 -33 -65 -58 -180 Profit for the 147 93 247 188 527 period Profit for the period attributable to: Equity holders of 146 100 252 195 527 the parent company Non-controlling 1 -7 -5 -7 0 interest -------------------------------------------------------------------------------- 147 93 247 188 527 Earnings per share 0.01 0.01 0.02 0.02 0.04 (diluted), EUR Earnings per share, 0.01 0.01 0.02 0.02 0.04 EUR Consolidated Statement of comprehensive income: Profit for the 147 93 247 188 527 period Exchange -3 45 -15 93 23 differences on translating foreign operations Income tax relating - - - - - to components of other comprehensive income Total comprehensive 144 138 232 281 550 income Total comprehensive income attributable to: Equity holders of 143 145 237 288 550 the parent company Non-controlling 1 -7 -5 -7 0 interest -------------------------------------------------------------------------------- 144 138 232 281 550 CONSOLIDATED BALANCE SHEET (EUR 1,000) June June 30, Dec 30,2011 2010 31,2010 Assets Non-current assets Tangible assets 100 117 85 Other intangible assets 1,372 1,637 1,400 Other investments 5 5 5 Other long-term receivables 29 0 43 Deferred tax assets 181 353 233 Total non-current assets 1,687 2,112 1,766 Current assets Trade and other receivables 3,287 3,063 3,781 Cash and cash equivalents 1,747 1,742 1,703 Total current assets 5,034 4,805 5,484 Total assets 6,721 6,917 7,250 ================================================================================ Equity and liabilities June June Dec 30,2011 30,2010 31,2010 Equity Share capital 1,359 1,359 1,359 Reserve fund 21 21 21 Invested non-restricted equity fund 5 5 5 Translation differences -85 -1 -70 Treasure shares -314 -236 -275 Retained earnings 1,543 1,315 1,653 Equity attributable to shareholders of the 2,529 2,463 2,693 parent company Non-controlling interest -4 -6 1 Total equity 2,525 2,457 2,694 Non-current liabilities Interest-bearing liabilities 453 679 566 Non-Interest-bearing liabilities 0 460 0 Total non-current liabilities 453 1,139 566 Current liabilities Accounts payables and other payables 3,516 3,016 3,763 Interest-bearing liabilities 227 305 227 Total current liabilities 3,743 3,321 3,990 Total liabilities 4,196 4,460 4,556 Total equity and liabilities 6,721 6,917 7,250 ================================================================================ CONSOLIDATED CASH FLOW STATEMENT (EUR 1,000) Jan - June, Jan - June, Jan - Dec, 2011 2010 2010 Cash flow from operating activities Profit for the period 247 188 527 Adjustments for the profit Depreciation 264 280 532 Non-cash transactions -14 85 24 Changes in working capital Changes in trade and 557 -341 -908 other receivables Changes in accounts payable -81 306 759 and other liabilities Interest expense and other financial -9 -21 -42 expenses Interest income and other financial 5 4 8 income Income taxes paid 0 -13 -40 Net cash from operating activities 968 488 860 Cash flow from investing activities Purchases of tangible assets -51 -22 -39 Purchases of intangible assets -358 -147 -311 Net cash used in investing activities -409 -169 -350 Cash flow from financing activities Repayments of long term loans -113 -113 -305 Purchases of own shares -40 -27 -66 Invested non-restricted equity fund 0 -122 -122 distribution Dividends paid -362 -244 -244 Net cash used in financing activities -515 -506 -736 Net change in cash and cash 44 -187 -226 equivalents Cash and cash equivalents in the 1,703 1,929 1,929 beginning of period Cash and cash equivalents in the end 1,747 1,742 1,703 of period CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY JANUARY 1 - JUNE 30, 2011 (EUR 1,000) Jan 1, Purchase of Dividends Compre-hensi June 30, 2011 own shares paid ve income 2011 Share capital 1,359 1,359 Reserve fund 21 21 Translation -70 -15 -85 difference Treasury shares -275 -39 -314 Invested 5 5 non-restricted equity fund Dividend paid -362 -362 Retained earnings 1,653 252 1,905 Non-controlling 1 -5 -4 interest Total 2,694 -39 -362 232 2,525 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY JANUARY 1 - JUNE 30, 2010 (EUR 1,000) Jan 1, Purchase of Dividends Compre-hensi June 30, 2010 own shares paid ve income 2010 Share capital 1,359 1,359 Reserve fund 21 21 Translation -94 93 -1 difference Treasury shares -209 -27 -236 Invested 127 -122 5 non-restricted equity fund Dividend paid -244 -244 Retained earnings 1,371 188 1,559 Non-controlling 0 -6 -6 interest Total 2,575 -27 -366 275 2,457 APPENDIX ACCOUNTING PRICIPLES OF CONSOLIDATED FINANCIAL STATEMENTS The Interim Report has been prepared in accordance with the IAS 34 Interim Report standard. The company has adopted certain new or revised IFRS standards and IFRIC interpretations at the beginning of the financial period as descripted in the Financial Statements for 2010. However, the adaption of these new and amended standards has not yet had an effect on the reported figures in practice. In other respects, the same accounting policies have been followed as in the Financial Statements for 2010. Upon closing of consolidated financial statements, the Group makes estimates and assumptions regarding the future and makes considerations on the adoption of accounting principles, which means that the actual results may differ from those reported. The amounts presented in the income statement and balance sheet are consolidated figures. The amounts presented in the report are rounded, so the sum of individual figures may differ from the sum reported. The Interim Report is unaudited. GROUP COMMITMENTS AND CONTIGENT LIABILTIIES (EUR 1,000) June 30, June 30 Dec 31, 2011 2010 2010 Business mortgage 1,337 1,337 1,337 Current lease liabilities Liabilities maturing during one year 276 231 235 Liabilities maturing 2-5 years 136 168 53 Total 412 399 288 Total commitments and contingent 1,749 1,736 1,625 liabilities Currency Hedging (EUR 1,000) June 30, June 30 Dec 31, 2011 2010 2010 Nominal value 141 510 260 Current value -2 -11 -2 GROUP INTANGIBLE AND TANGIBLE ASSETS Change in intangible assets (EUR 1,000) June 30, 2011 June 30, 2010 Dec 31, 2010 Acquisition cost Jan 1 3,608 3,494 3,494 Increase 199 147 311 Change in tangible assets (EUR 1,000) June 30, 2011 June 30, 2010 Dec 31, 2010 Acquisition cost Jan 1 1,021 983 983 Increase 51 22 38 CHANGE IN GROUP'S INTEREST BEARING LIABILITIES (EUR 1,000) June 30, 2011 June 30, 2010 Dec 31, 2010 Interest bearing loans Jan 1 793 1,098 1,098 Withdrawals 0 0 0 Repayments -113 -113 -305 Interest bearing loans 680 984 792 30 June/31 Dec CONSOLIDATED INCOME STATEMENT PER QUARTER (EUR 1,000) Jan - Jan - April - April - July - Oct - March, March, June, June, Sept, Dec, 2011 2010 2011 2010 2010 2010 Net sales 1,768 1,671 1,784 1,773 1,574 1,920 Other operating 21 34 17 3 13 44 income Material and 34 47 72 63 50 67 services Employee 1,122 1,009 1,053 1,040 925 1,120 benefits expenses Depreciation 130 129 134 151 151 101 Other operating 346 375 363 351 297 403 expenses Operating 157 145 179 171 164 273 profit Financial -16 -25 -8 -45 -11 34 income and expenses Profit before 141 120 171 126 153 307 tax Income tax -41 -25 -24 -33 -55 -66 expenses Profit for the 100 95 147 93 98 241 period CONSOLIDATED INCOME STATEMENT BY SEGMENT (EUR 1,000) April - April - Jan - June, Jan - June, Jan - June, 2011 June, 2010 2011 2010 Dec, 2010 Net sales Software Sales 932 1,043 1,916 2,002 4,077 International Business 852 730 1,636 1,441 2,860 Operations Finland Not allocated 0 0 0 0 0 Total net sales 1,784 1,773 3,552 3,443 6,937 Operating profit Software Sales 88 193 242 347 777 International Business 178 67 265 138 320 Operations Finland Not allocated -87 -89 -171 -169 -345 Total operating 179 171 336 316 752 profit Financial income -8 -45 -24 -69 -45 and expenses Income tax expense -24 -33 -65 -58 -180 Profit for the 147 93 247 188 527 period Other information Depreciation Software Sales 68 84 134 146 267 International Business 66 67 130 134 265 Operations Finland Total depreciation 134 151 264 280 532 GROUP KEY FIGURES EUR (1,000) Jan - June, 2011 Jan - June, 2010 Net sales 3,552 3,443 Net sales growth,% 3.2 3.8 Operating profit 336 316 % of net sales 9.5 9.2 Profit or loss before tax 312 246 % of net sales 8.8 7.1 Profit for the period 247 188 % of net sales 7.0 5.5 Return on equity,% 18.9 14.9 Return on investment,% 20.1 15.2 Interest bearing liabilities 680 984 Cash and cash equivalents 1,747 1,742 Net liabilities -1,067 -758 Equity 2,525 2,457 Gearing,% -42.4 -30.7 Equity ratio,% 46.6 42.2 Total balance sheet 6,721 6,917 Investments in non-current assets 244 169 % of net sales 6.9 4.9 Research and development expenses 688 697 % of net sales 19.4 20.2 Average number of personnel 68 63 Personnel at the beginning of period 65 57 Personnel at the end of period 65 66 Earnings per share, EUR 0.02 0.02 Earnings per share (diluted), EUR 0.02 0.02 Equity per share, EUR 0.20 0.20 CALCULATION OF KEY INDICATORS Return on equity (ROE), %: Profit for the period x 100 ______________________________ Shareholders' equity (average) Return on investment (ROI), %: Profit before taxes + interest and other financial expenses x 100 _________________________________________________________________ Balance sheet total - non-interest bearing liabilities (average) Equity ratio, %: Shareholders' equity x 100 __________________________ Balance sheet total - deferred revenue Gearing, %: Interest bearing liabilities - cash and cash equivalents x 100 ______________________________________________________________ Shareholders' equity Earnings per share, euro: Profit for period ___________________________________________________________ Adjusted number of shares over the financial year (average) Equity per share, euro: Shareholders' equity Adjusted number of shares at the end of the financial period Dividend per share, euro: Total dividend paid ____________________________________________________________ Adjusted number of shares at the end of the financial period Dividend / profit, %: Dividend per share x 100 ________________________ Earnings per share Effective dividend yield, %: Dividend per share (adjusted) x 100 _______________________________________________________ Adjusted share price at the end of the financial period Price-earnings ratio (P/E): Adjusted share price at the end of the financial period _______________________________________________________ Earnings per share (adjusted) Market value of share capital: (Number of shares - own shares) x share price at the end of the financial period Turnover of shares, % of share capital: Turnover (number of shares) x 100 _________________________________ Number of shares issued (average) Quick ratio: Current assets - inventories _______________________________________ Current liabilities - advances received 28.07.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: QPR Software Finland Phone: Fax: E-mail: Internet: ISIN: FI0009008668 WKN: End of Announcement DGAP News-Service ---------------------------------------------------------------------------
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found