TELESTE CORPORATION INTERIM REPORT 1 AUGUST 2012 AT 08:30

Turku, Finland, 2012-08-01 07:30 CEST (GLOBE NEWSWIRE) --
TELESTE CORPORATION  INTERIM REPORT  1 AUGUST 2012   AT 08:30                                
                                                                                      

TELESTE CORPORATION INTERIM REPORT 1 JAN TO 30 JUNE 2012 

PROFITABLE GROWTH CONTINUED, EXCELLENT CASH FLOW FROM OPERATIONS  

  

Q2 of 2012

- Orders received totaled EUR 49.2 (50.6) million, i.e. 2.7% below the comparable period
- Net sales equaled EUR 49.7 (41.9) million, an increase of 18.5%
- Operating profit stood at EUR 2.4 (0.9) million, an increase of 165.9%
- Undiluted result per share stood at EUR 0.07 (0.03)
- Operating cash flow amounted to EUR 5.5 (-0.9) million

   

Key figures (€ million)      
   4-6/2012  4-6/2011 Change %
Orders received 49.2 50.6 -2.7%
Net sales 49.7 41.9 18.5%
Operating profit 2.4 0.9 165.9%
Operating Profit, % 4.9% 2.2%  
Net profit 1.2 0.6 119.8%
       
Other important key figures      
Earnings per share, EUR 0.07 0.03 119.6%
Cash flow from operations, € million 5.5 -0.9 n/a

 

Outlook 2012

We estimate the 2012 net sales and operating profit to increase from the level of 2011.

 

Comments on Q2 of 2012 by CEO Jukka Rinnevaara

"In Video and Broadband Solutions we strengthened our market position in Europe by winning new customers. Network upgrades were slowed down to some degree by major sporting events. In the review period, a major frame agreement was signed concerning deliveries of Teleste's next-generation optical fiber node solutions to Liberty Global's European unit. The signed frame agreement is valid until 2017. Deliveries of Luminato headend to Russia increased towards the end of the reporting period.

Deliveries by Network Services increased in all target markets, and operating profit improved clearly over the comparative period. The development program for the German services operations was making good progress, but the fiber projects were still weakened by cost overruns related to sub-contracting." 

 

Group Operations in April to June 2012

Orders received by the Group in second quarter totaled EUR 49.2 (50.6) million, which is 2.7% below the reference period. In the comparative period, project orders of EUR 8.5 million were received from Germany. Order backlog stood at EUR 18.7 (23.7) million, which is 21.3% below the reference period.

Net sales grew by 18.5 % amounting to EUR 49.7 (41.9) million. Year-on-year operating profit was up by 165.9% standing at EUR 2.4 (0.9) million, which is 4.9% (2.2%) of net sales. Materials margin was almost at par with the comparative period. Year-on-year wages and salaries grew by 14.3% standing at EUR 15.4 (13.5) million. This rise in wages and salaries was contributed by growth in the number of personnel, accruals of payments by results, and union-contract increases. Financial expenses totaled EUR 0.6 (0.1) million. Financial expenses include a write-down of EUR 0.4 million. Taxes amounted to EUR 0.6 (0.2) million with the Group's tax rate standing at 32.7 % (28.1 %). Undiluted result per share was EUR 0.07 (0.03).

 

Group Operations in January to June 2012

Key figures (€ million)        
   1-6/2012  1-6/2011 Change %  1-12/2011
Orders received 98.3 90.8 8.3% 188.1
Net sales 100.8 83.2 21.1% 183.6
Operating profit 5.4 1.5 268.9% 9.4
Operating Profit, % 5.3% 1.7%   5.1%
Net profit 3.2 0.8 288.7% 6.3
         
Other important key figures        
Earnings per share, EUR 0.18 0.05 288.5% 0.36
Cash flow from operations, € million 10.4 -1.9 n/a 2.1
Net gearing, % 21.1% 41.9% -49.6% 32.2%
Equity ratio, % 46.2% 41.4% 11.6% 41.6%
Personnel at period-end 1,348 1,314 2.6% 1,310

In the first quarter, due to the good order intake, orders received increased by 8.3% from the comparative period and totaled EUR 98.3 (90.8) million. Net sales grew by 21.1 % amounting to EUR 100.8 (83.2) million. Operating profit grew by 268.9% equaling EUR 5.4 (1.5) million.

Financial expenses totaled EUR 0.7 (0.3) million. Taxes amounted to EUR 1.4 (0.3) million with the Group's tax rate standing at 29.9% (28.0%). Undiluted result per share was EUR 0.18 (0.05). Operating cash flow was EUR 10.4 (-1.9) million.

 

Video and Broadband Solutions in April to June 2012

Economic Development of Video and Broadband Solutions

   4-6/2012  4-6/2011 Change %
Orders received 23,790 24,827 -4.2%
Net sales 24,278 19,517 24.4%
Operating profit 1,548 1,332 16.2%
Operating Profit, % 6.4% 6.8%  

Orders received decreased by 4.2% and stood at EUR 23.8 (24.8) million.  In the comparative period, project orders of EUR 5.0 million were received from Germany. Order backlog totaled EUR 18.7 (20.0) million.

Net sales grew by 24.4 % amounting to EUR 24.3 (19.5) million. Net sales from optical network equipment and house network amplifiers increased over the comparative period. Deliveries of Luminato headend to Russia increased towards the end of the second quarter.

Operating profit stood at EUR 1.5 (1.3) million making 6.4 % (6.8 %) of net sales. Accruals of payments by results as well as union-contract increases pushed up wages and salaries from the comparative period.

Research and development expenses equaled EUR 3.0 (3.0) million, i.e. 12.4% (15.4%) of the business area's net sales. In the second quarter, no R&D expenses were activated due to a temporary shift in projects' focus on short-term client applications. In the reference period, activated R&D expenses amounted to EUR 1.0 million. Depreciation on R&D expenses stood at EUR 0.5 (0.5) million.                         

Video and Broadband Solutions in January to June 2012

   1-6/2012  1-6/2011 Change %  1-12/2011
Orders received 50,180 42,300 18.6% 93,274
Net sales 51,777 38,071 36.0% 89,716
Operating profit 4,072 1,738 134.3% 8,220
Operating Profit, % 7.9% 4.6%   9.2%

Orders received stood at EUR 50.2 (42.3) million, i.e. 18.6% above the period of comparison. New video services such as video-on-demand and Internet TV have increased the need for cable network capacity.

Net sales grew by 36.0% amounting to EUR 51.8 (38.1) million. Operating profit increased 134.3% to EUR 4.1 (1.7) million, or 7.9% (4.6%) of net sales. This growth in operating profit was due to increase in net sales. R&D expenses amounted to EUR 5.9 (5.8) million, or 11.4% (15.4%), out of which EUR 0.3 (1.5) million were activated.

 

Network Services in April to June 2012

Economic Development of Network Services

   4-6/2012  4-6/2011 Change %
Orders received 25,409 25,744 -1.3%
Net sales 25,409 22,396 13.5%
Operating profit 872 -422 n/a
Operating Profit, % 3.4% -1.9%  

Orders received in Q2 stood at EUR 25.4 (25.7) million. Net sales grew by 13.5 % amounting to EUR 25.4 (22.4) million. Operating profit stood at EUR 0.9 (-0.4) million making 3.4% (-1.9%) of net sales. This favorable development in operating profit was mainly brought about by increase in net sales and the turnaround profitability program. Instead, profitability of the fiber projects was further aggravated by cost overruns related to sub-contracting.

Network Services in January to June 2012

   1-6/2012  1-6/2011 Change %  1-12/2011
Orders received 48,140 48,500 -0.7% 94,800
Net sales 49,040 45,152 8.6% 93,900
Operating profit 1,285 -286 n/a 1.160
Operating Profit, % 2.6% -0.6%   1.2%

Orders received totaled EUR 48.1 (48.5) million. Net sales grew by 8.6% amounting to EUR 49.0 (45.2) million. Net sales increased in all target markets. Operating profit equaled EUR 1.3 (-0.3) million, and improved significantly over the comparative period mainly due to increase in net sales and progress made in the turnaround profitability program.

Personnel and Organization in January to June 2012

The Group had an annual average 1,326 people (1,279/2011 1,221/2010), of whom 565 (561) were employed by Video and Broadband Solutions and 761 (718) by Network Services. At the end of the review period, the figure totaled 1,348 (1,314/2011, 1,203/2010) of whom 70% (72%/2011, 68%/2010) were stationed overseas. Employees stationed outside Europe accounted for less than 5% of the Group's personnel.

The year-on-year employee benefits expenses increased by 17.4% and totaled EUR 30.5 (26.0/January to June/2011, 25.1/January to June/2010) million. The increase in costs involving wages and salaries was attributable to factors such as growth in the number of personnel in Network Services, accruals in payments by results, as well as union-contract increases.

The number of rented workforce in Finnish production averaged 26 (0) people. At the end of the review period, rented workforce amounted to 20 (0). Costs involving rented workforce are included in the material costs and services.

Investments in January to June 2012

Investments by the Group for the period under review totaled EUR 1.7 (3.4) million accounting for 3.5% (4.1%) of net sales. Product development investments totaled EUR 0.3 (1.5) million. Other investments involved information systems, production machinery and equipment. As to investments, EUR 0.6 (0.1) million was implemented by means of financial leasing. Investments in the comparative period included the premises expansion investment of EUR 1.0 million. 

Financing and capital structure in January to June 2012

Operating cash flow was EUR 10.4 (-1.9) million, primarily due to improved turnover of receivables and reduction of inventories. At the end of the period under review, the amount of unused binding stand-by credits amounted to EUR 16.0 (10.5) million. The current binding stand-by credits of EUR 40.0 million run till November 2013. Teleste is engaged in ongoing financial negotiations for renewal of the loans until the end of 2016.

The Group’s equity ratio equaled 46.2% (41.4%) while net gearing amounted to 21.1% (41.9%). Interest bearing debt on 30 June 2012 stood at EUR 25.1 (30.4) million.

Essential Operational Risks of Business Areas

Founded in 1954, Teleste is a technology and services company consisting of two business areas: Video and Broadband Solutions and Network Services. With Europe as the main market area, our most significant clients include European cable operators and selected organizations in the public sector.

As to Video and Broadband Solutions, client-specific and integrated deliveries of solutions create favorable conditions for growth, even if the involved resource allocation and technical implementation pose a challenge involving, therefore, also reasonable risks. Customers' investments in networks vary by the need for upgrading and customers' financial structure. Significant part of Teleste's competition comes from the USA so the exchange rate of euro up against the US dollar affects our competitiveness. Also the exchange rate development of the Chinese renminbi to euro affects our material costs. The company hedges against short-term currency exposure by means of forward contracts. The weak economy and strained financial market in Europe may slow down the implementation of our customers' investment plans. Availability of components is subject to natural phenomena, such as floods and earthquakes. Correct technological choices and their timing are vital for our success.

Net sales for Network Services comes, for the most part, from a small number of large European customers, so a significant change in the demand for services by any one of them is reflected in the actual deliveries. To ensure quality of services and cost-efficiency along with efficient service process management, customer satisfaction and improvements in productivity require innovative solutions in terms of processes, products and logistics. Smooth operation of cable networks requires effective technical management and functional hardware solutions in accordance with contractual obligations. This, in turn, demands continuous and determined development of skill levels in Teleste's own personnel as well as those of our subcontractors. In addition, our competitiveness and ability to deliver may be constrained by the availability of sub-contractor network capacity. Tender calculation and management of larger overall projects is complex and risky.

It is important for our business areas to take into account any market developments such as consolidations taking place among the clientele and competition. The threats to information systems must be minimized to ensure business continuity. Severe weather conditions have an impact on the business areas' ability to deliver products and services.

The Board of Directors annually reviews any essential risks related to the company operation and the management thereof. Risk management constitutes an integral part of the strategic and operative practices of our business areas. Risks and their probability are reported to the Board by regular monthly reports.

The company has covered any major risks of loss related to the business areas through insurance policies. Insurance also covers credit loss risks related to accounts receivables. In the period under review, no such risks materialized, and no such legal proceedings or judicial procedures were pending that would have had any essential significance for the Group operation.

Group Structure

Parent company Teleste has branch offices in Australia, the Netherlands, China and Denmark with subsidiaries in 12 countries outside Finland. On account of financial arrangements, Teleste Management Oy, established in March 2010, and Teleste Management II Oy, established in December 2011, have been consolidated into Teleste Corporation's figures. Teleste Incentive Oy has been merged with Teleste Corporation.

Decisions by the Annual General Meeting

The Annual General Meeting (AGM) of Teleste Corporation held on 3 April 2012 confirmed the financial statements for 2011 and discharged the Board of Directors and the CEO from liability for the financial period. The AGM confirmed the dividend of EUR 0.14 per share proposed by the Board. The dividend was paid out on 17 April 2012.

Ms. Marjo Miettinen, Mr. Pertti Ervi, Mr. Pertti Raatikainen, Mr. Kai Telanne and Mr. Petteri Walldén continue in Teleste's Board of Directors. Mr. Esa Harju was elected a new member while the membership of Mr. Tero Laaksonen ended. Ms. Marjo Miettinen was elected Chair of the Board in the organizational meeting held immediately after the AGM.

Authorized Public Accountants KPMG Oy Ab continue as the auditor until the next AGM. Mr. Esa Kailiala, accountant authorized by the Central Chamber of Commerce of Finland, was chosen auditor-in-charge.

The AGM authorized the Board to acquire the maximum of 1,400,000 of the company’s own shares and to convey the maximum of 1,779,985 company’s own shares. On 8 April 2011, the AGM authorized the Board of Directors to issue five million new shares; this authorization will be valid until the Annual General Meeting of 2014. Pursuant to the special rights provided by the Company, the maximum number of significant shares is 2,500,000; these special rights are included in the authorization to issue 5,000,000 new shares.

Shares and Changes in Share Capital

On 30 June 2012, EM Group Oy was the largest single shareholder with a holding of 21.08%.

In the period under review, the lowest company share price was EUR 3.04 (3.49) and the highest was EUR 4.44 (4.82). Closing price on 30 June 2012 stood at EUR 3.90 (3.80). According to Euroclear Finland Ltd, the number of shareholders at the end of the period under review was 5,060 (5,152). Foreign ownership accounted for 7.83% (8.0%). From 1 January to 30 June 2012, trading with Teleste share at NASDAQ OMX Helsinki amounted to EUR 4.2 (3.7) million. In the period under review, 1.1 (0.9) million Teleste shares were traded on the stock exchange.
 

At the end of June 2012, the number of own shares in the Group possession stood at 1,302,985 (760,985) out of which parent company Teleste Corporation had 379,985 while other Group or controlled companies had 923,000 shares, respectively. At the end of the period, the Group's holding of the total amount of shares amounted to 6.96% (4.18%).

On 30 June 2012, the registered share capital of Teleste stood at EUR 6,966,932.80 divided in 18,728,590 shares.

Trading with stock options 2007B and 2007C on the NASDAQ OMX Helsinki Ltd began on 2 April 2012. These options allow subscription of a maximum of 560,000 Teleste shares.

Outlook for 2012  

We estimate that deliveries of equipment and solutions for the operator clientele of Video and Broadband Solutions will increase from the 2011 level. European telecom operators are about to launch their investments into the TV distribution infrastructure, and we believe that our video headend and optical network products will be competitive in this new emerging market. Also, the network capacity will continue to increase driven by the new video services provided by the operators. Major sports events held in summer 2012 bring down the upgrading of networks also in the third quarter. Due to the strong fourth quarter of the reference period, achieving equal profitability in the remainder of the year will be a challenge.

On the annual basis, demand by our current clientele for the services provided by Network Services will remain relatively stable. In the main market area of Germany, we expect profitability to improve from the 2011 level with the gradual introduction of the efficiency measures.

We estimate the 2012 net sales and operating profit to increase from the level of 2011.

 

31 July 2012

 

Teleste Corporation              Jukka Rinnevaara
Board of Directors               President and CEO    

 

This interim report has been compiled in compliance with IAS 34, as it is accepted within EU, using the recognition and valuation principles with those used in the Annual Report. The data stated in this report is unaudited.

 

STATEMENT OF COMPREHENSIVE INCOME (tEUR) 4-6/2012 4-6/2011 Change % 1-12/2011
           
Net Sales 49,687 41,913 18.5 % 183,616
  Other operating income 456 510 -10.6 % 2,112
  Materials and services -24,544 -20,354 20.6 % -90,990
  Personnel expenses -15,417 -13,488 14.3 % -54,560
  Other operating expenses -6,608 -6,381 3.6 % -25,426
  Depreciation -1,154 -1,290 -10.5 % -5,372
Operating profit 2,420 910 165.9 % 9,380
           
  Financial income and expenses -624 -145 330.3 % -541
Profit after financial items 1,796 765 134.8 % 8,839
           
Profit before taxes 1,796 765 134.8 % 8,839
           
  Taxes -587 -215 173.0 % -2,540
           
Net profit 1,209 550 119.8 % 6,299
           
Attributable to:        
  Equity holders of the parent 1,209 550 119.8 % 6,299
           
Earnings per share for result of the year attributable to the equity holders of the parent
(expressed in € per share)        
  Basic 0.07 0.03 119.6 % 0.36
  Diluted 0.07 0.03 119.7 % 0.36
           
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (TEUR)
Net profit 1,209 550 119.8 % 6,299
Translation differences 88 -115 n/a 149
Fair value reserve 70 -12 n/a 20
Total comprehensive income for the period 1,367 423 223.2 % 6,468
           
Attributable to:        
  Equity holders of the parent 1,367 423 223.2 % 6,468
           
STATEMENT OF COMPREHENSIVE INCOME (tEUR) 1-6/2012 1-6/2011 Change % 1-12/2011
           
Net Sales 100,817 83,223 21.1 % 183,616
  Other operating income 788 922 -14.5 % 2,112
  Materials and services -50,398 -42,145 19.6 % -90,990
  Personnel expenses -30,501 -25,974 17.4 % -54,560
  Other operating expenses -12,818 -11,936 7.4 % -25,426
  Depreciation -2,531 -2,638 -4.1 % -5,372
Operating profit 5,357 1,452 268.9 % 9,380
           
  Financial income and expenses -761 -300 153.7 % -541
Profit after financial items 4,596 1,152 299.0 % 8,839
           
Profit before taxes 4,596 1,152 299.0 % 8,839
           
  Taxes -1,374 -323 325.4 % -2,540
           
Net profit 3,222 829 288.7 % 6,299
           
Attributable to:        
  Equity holders of the parent 3,222 829 288.7 % 6,299
           
Earnings per share for result of the year attributable to the equity holders of the parent
(expressed in € per share)        
  Basic 0.18 0.05 288.5 % 0.36
  Diluted 0.18 0.05 288.6 % 0.36
           
Total comprehensive income for the period (tEUR)        
Net profit 3,222 829 288.7 % 6,299
Translation differences 357 -199 n/a 149
Fair value reserve 84 96 -12.5 % 20
Total comprehensive income for the period 3,663 726 404.5 % 6,468
           
Attributable to:        
  Equity holders of the parent 3,663 726 404.5 % 6,468

 

STATEMENT OF FINANCIAL POSITION  (tEUR) 30.6.2012 30.6.2011 Change % 31.12.2011
Non-current assets        
  Property,plant,equipment 10,111 9,180 10.1 % 9,364
  Goodwill 31,174 30,959 0.7 % 31,277
  Intangible assets 5,079 6,529 -22.2 % 6,338
  Deferred tax assets 1,725 n/a n/a 1,714
  Investments 287 713 -59.7 % 713
    48,376 47,381 2.1 % 49,406
Current assets        
  Inventories 21,615 21,881 -1.2 % 24,075
  Other current assets 39,364 39,955 -1.5 % 44,326
  Liquid funds 13,169 9,831 34.0 % 15,404
    74,148 71,667 3.5 % 83,805
           
Total assets 122,523 119,048 2.9 % 133,211
           
Shareholder's equity and liabilities        
  Share capital 6,967 6,967 0.0 % 6,967
  Other equity 48,873 41,844 16.8 % 47,688
  Non-controlling interest 715 324 120.7 % 623
    56,555 49,135 15.1 % 55,278
           
Non-current liabilities        
  Provisions 605 511 18.4 % 605
  Deferred tax liabilities 1,850 776 138.4 % 1,946
  Non interest bearing liabilities 3,394 3,746 -9.4 % 4,140
  Interest bearing liabilities 12,315 11,847 4.0 % 11,940
    18,164 16,880 7.6 % 18,631
Short-term liabilities        
  Trade payables and other s-t liabilities 33,796 33,166 1.9 % 36,818
  Provisions 1,211 1,313 -7.8 % 1,211
  S-t interest bearing liabilities 12,797 18,554 -31.0 % 21,273
    47,804 53,033 -9.9 % 59,302
           
Total shareholder's equity and liabilities 122,523 119,048 2.9 % 133,211

 

CONSOLIDATED CASH FLOW STATEMENT (tEUR) 1-6/
2012
1-6/
2011
Change %  1-12/
2011
Cash flows from operating activities        
  Profit for the period 3,222 829 288.5 % 6,299
  Adjustments 4,720 3,369 40.1 % 8,633
  Interest and other financial expenses and incomes -338 -300 12.7 % -541
  Paid Taxes -1,587 -1,400 13.4 % -2,471
  Change in working capital 4,398 -4,433 n/a -9,857
Cash flow from operating activities 10,415 -1,935 n/a 2,063
Cash flow from investing activities        
  Acquisition of subsidiary, net of cash acquired -580 0 n/a 0
  Purchases of property, plant and equipment (PPE) -961 -1,792 -46.4 % -2,632
  Purchases of intangible assets -280 -1,666 -83.2 % -2,729
Net cash used in investing activities -1,821 -3,458 -47.3 % -5,361
Cash flow from financing activities        
  Proceeds from borrowings 0 3,000 n/a 6,000
  Payments of borrowings -8,746 -689 1169.4 % -877
  Dividends paid -2,440 -2,091 16.7 % -2,091
  Proceeds from issuance of ordinary shares 0 0 n/a 319
Net cash used in financing activities -11,186 220 n/a 3,351
           
Change in cash        
  Cash in the beginning 15,404 15,203 1.3 % 15,203
  Change in cash during period -2,592 -5,173 -49.9 % 52
  Effect of currency changes 357 -199 n/a 149
  Cash at the end 13,169 9,831 34.0 % 15,404

 

KEY FIGURES 1-6/2012 1-6/2011 Change %  1-12/2011
  Earnings per share, EUR 0.18 0.05 288.5 % 0.36
  Earnings per share fully diluted, EUR 0.18 0.05 288.6 % 0.36
  Shareholders' equity per share, EUR 3.24 2.82 14.8 % 3.17
           
  Return on equity 11.5 % 3.3 % 245.9 % 11.9 %
  Return on capital employed 12.5 % 4.0 % 211.8 % 11.5 %
  Equity ratio 46.2 % 41.4 % 11.6 % 41.6 %
  Gearing 21.1 % 41.9 % -49.6 % 32.2 %
           
  Investments, tEUR 1,739 3,384 -48.6 % 5,240
  Investments % of net sales 3.5 % 4.1 % -13.9 % 2.9 %
  Order backlog, tEUR 18,703 23,777 -21.3 % 21,200
  Personnel, average 1,326 1,279 3.7 % 1,297
           
  Number of shares (thousands) 18,729 18,187 3.0 % 18,190
    including own shares        
  Highest share price, EUR 4.44 4.82 -7.9 % 4.82
  Lowest share price, EUR 3.04 3.49 -12.9 % 2.50
  Average share price, EUR 3.98 4.22 -5.7 % 3.00
           
  Turnover, in million shares 1.1 0.9 19.6 % 1.7
  Turnover, in MEUR 4.2 3.7 12.5 % 6.2
           
Treasury shares        
    Number
of shares
  % of
shares
% of
votes
  Teleste companies own shares 30.6.2012 1,302,985   6.96 % 6.96 %
           
Contingent liabilities and pledged assets (tEUR) 
           
For own debt        
  Other securities 0 640 n/a 0
Leasing and rent liabilities 8,929 8,842 1.0 % 8,124
    8,929 9,482 -5.8 % 8,124
           
Derivative instruments (tEUR)        
  Value of underlying forward contracts 5,391 3,434 57.0 % 7,434
  Market value of forward contracts -72 -85 -15.3 % -99
  Interest rate swap 11,500 11,500 0.0 % 11,500
  Market value of interest swap -82 -120 -31.7 % -167
           
Taxes are computed on the basis of the tax on the profit for the period.

 

OPERATING SEGMENTS (tEUR)  1-6/2012  1-6/2011 Change %  1-12/2011
 
Video and Broadband Solutions
  Order intake 50,180 42,300 18.6 % 93,274
  Net sales 51,777 38,071 36.0 % 89,716
  EBIT 4,072 1,738 134.3 % 8,220
  EBIT% 7.9 % 4.6 %   9.2 %
 
Network Services
  Order intake 48,140 48,500 -0.7 % 94,800
  Net sales 49,040 45,152 8.6 % 93,900
  EBIT 1,285 -286 n/a 1,160
  EBIT% 2.6 % -0.6 %   1.2 %
 
Total
  Order intake 98,320 90,800 8.3 % 188,074
  Net sales 100,817 83,223 21.1 % 183,616
  EBIT 5,357 1,452 268.9 % 9,380
  EBIT% 5.3 % 1.7 %   5.1 %
  Financial items -761 -300 153.7 % -541
  Operating segments net profit before taxes 4,596 1,152 299.0 % 8,839

 

Information per quarter (tEUR)  4-6/12  1-3/12  10-12/11  7-9/11  4-6/11  7/2011-
  6/2012
 
Video and Broadband Solutions
  Order intake 23,790 26,390 28,674 22,300 24,827 101,154
  Net sales 24,278 27,499 27,698 23,947 19,517 103,422
  EBIT 1,548 2,524 3,062 3,420 1,332 10,554
  EBIT % 6.4 % 9.2 % 11.1 % 14.3 % 6.8 % 10.2 %
 
Network Services
  Order intake 25,409 22,731 24,797 21,503 25,744 94,440
  Net sales 25,409 23,631 25,735 23,013 22,396 97,788
  EBIT 872 413 1,070 376 -422 2,731
  EBIT % 3.4 % 1.7 % 4.2 % 1.6 % -1.9 % 2.8 %
 
Total
  Order intake 49,199 49,121 53,471 43,803 50,571 195,594
  Net sales 49,687 51,130 53,433 46,960 41,913 201,210
  EBIT 2,420 2,937 4,132 3,796 910 13,285
  EBIT % 4.9 % 5.7 % 7.7 % 8.1 % 2.2 % 6.6 %

 

Attributable to equity holders of the parent (tEUR)
A Share capital
B Share premium
C Translation differences
D Retained earnings
E Invested free capital
F Other funds
G Total
H Share of non-controlling interest
I Total equity
  A B C D E F G H I
Shareholder's equity 1.1.2012 6,967 1,504 54 43,559 2,737 -166 54,655 623 55,278
Total comprehensive income for the period     357 3,222   84 3,663   3,663
Paid dividend       -2,569     -2,569 129 -2,440
Change in controlling interest       37     37 -37  
Equity-settled share-based payments       54     54   54
Shareholder's equity 30.6.2012 6,967 1,504 411 44,303 2,737 -82 55,840 715 56,555
                   
Shareholder's equity 1.1.2011 6,967 1,504 -95 39,183 2,737 -186 50,110 292 50,402
Profit of the period     -199 829   96 726   726
Paid dividend       -2,137     -2,137 46 -2,091
Change in controlling interest       13     13 -13  
Equity-settled share-based payments       98     98   98
Shareholder's equity 30.6.2011 6,967 1,504 -294 37,986 2,737 -90 48,810 324 49,135

CALCULATION OF KEY FIGURES            

Return on equity: Profit/loss for the financial period
------------------------------   * 100
Shareholders’ equity (average)
 
Return on capital employed: Profit/loss for the period after financial items + financing charges
------------------------------   * 100
Total assets - non-interest-bearing
liabilities (average)

 
Equity ratio: Shareholders' equity
-----------------------------   * 100
Total assets - advances received
 
Gearing: Interest bearing liabilities - cash in hand and in bank - interest bearing assets
-----------------------------   * 100
Shareholders' equity
 
Earnings per share: Profit for the period attributable to equity holder of the parent
-------------------------------------------
Weighted average number of ordinary shares outstanding during the period
 
Earnings per share, diluted: Profit for the period attributable to equity holder of the parent (diluted)
-------------------------------------------
Average number of shares - own shares + number of options at the period-end
 

 

MAJOR SHAREHOLDERS 30.6.2012 Shares %
EM Group Oy 3,948,513 21.08
Mandatum Life 1,679,200 8.97
Ilmarinen Mutual Pension Insurance Company 936,776 5.00
Kaleva Mutual Pension Insurance Company 824,641 4.40
Teleste Management II Oy 542,000 2.89
Op-Suomi Small Cap 530,000 2.83
Varma Mutual Pension Insurance Company 521,150 2.78
State Pension Fund 500,000 2.67
Aktia Capital Mutual Fund 450,000 2.40
Teleste Management Oy 381,000 2.03

 

SECTOR DISPERSION 30.6.2012 Shareholders % Shares %
Corporations 277 5.47 6,475,260 34.57
Financial and insurance corporations 10 0.19 3,591,067 19.17
Public institutions 8 0.15 2,328,026 12.43
Non-profit institutions 36 0.71 371,884 1.98
Households 4,680 92.49 4,494,235 23.99
Foreign countries and nominee registered 49 0.96 1,468,118 7.83
Total 5,060 100.00 18 728 590 100.00

 

AMOUNT 30.6.2012 Shareholders % Shares %
0 - 100 1,117 22.07 76,672 0.40
101 – 1,000 2,947 58.24 1,230,109 6.56
1,001 – 10,000 898 17.74 2,526,843 13.49
10,001 – 100,000 78 1.54 2,028,289 10.82
100,001 – 1,000,000 18 0.35 7,238,964 38.65
1,000,001 - 2 0.03 5,627,713 30.04
Total 5,060 100.00 18,728,590 100.00

 

 

ADDITIONAL INFORMATION:
CEO Jukka Rinnevaara, phone +358 2 2605 866 or +358 400 747 488

 

DISTRIBUTION:
NASDAQ OMX Helsinki
Main Media
www.teleste.com