TELESTE CORPORATION INTERIM REPORT 1 JAN TO 30 SEPTEMBER 2012

Turku, Finland, 2012-10-31 07:30 CET (GLOBE NEWSWIRE) --
TELESTE CORPORATION   INTERIM REPORT   31 OCTOBER 2012   AT 08:30

 

TELESTE CORPORATION INTERIM REPORT 1 JAN TO 30 SEPTEMBER 2012

 

THIRD QUARTER FELL SHORT OF THE COMPARATIVE PERIOD, OUTLOOK FOR THE ENTIRE YEAR UNCHANGED

Third quarter of 2012

- Orders received totaled EUR 40.5 (43.8) million, i.e. 7.5% below the reference period
- Net sales amounted to EUR 45.6 (47.0) million, a decrease of 2.9%
- Operating profit stood at EUR 2.9 (3.8) million, a decrease of 24.4%
- Undiluted result per share equaled EUR 0.11 (EUR 0.15)
- Operating cash flow was EUR -0.2 (-0.5) million

Key figures (€ million)  7-9/2012  7-9/2011 Change %  1-12/2011
Orders received 40.5 43.8 -7.5% 188.1
Net sales 45.6 47.0 -2.9% 183.6
Operating profit 2.9 3.8 -24.4% 9.4
Operating profit, % 6.3% 8.1%   5.1%
Net profit 1.9 2.6 -28.3% 6.3
         
Other important key figures        
Earnings per share, EUR 0.11 0.15 -28.8% 0.36
Cash flow from operations, € million -0.2 -0.5 n/a 2.1

 

Outlook 2012

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



 

Comments on Q3 of 2012 by CEO Jukka Rinnevaara:

“Teleste's orders received, net sales and operating profit fell short of the reference period. Investments in increased network capacity made by the customers of Video and Broadband Solutions leveled off. In our assessment, this slowdown in the investments was contributed by the active investment period preceding the big sporting events and the uncertainty in the European economic situation. In order to maintain its cost-effectiveness in an uncertain environment, Teleste has decided to initiate adaptation measures in compliance with the Act on Co-operation within Undertakings. We pursue to carry out these adaptation measures without compromising any future growth prospects.

Cable operators' business in Europe has developed favorably and the demand for increased cable network capacity is still there in the long term.

Network Services' year-on-year net sales decreased. This decrease in net sales was due to a reduction in the deliveries of fiber-optic projects.

Operating cash flow was decreased by a few fairly large outstanding sales receivables.”

 

Group Operations in July to September 2012

Orders received by the Group in the third quarter totaled EUR 40.5 (43.8) million, which is 7.2% below the reference period. The order backlog was EUR 13.6 (21.4) million, i.e. 36.4% below the reference period.

Net sales decreased by 2.9% to EUR 45.6 (47.0) million. Year-on-year operating profit fell by 24.4% standing at EUR 2.9 (3.8) million, which is 6.3% (8.1%) of net sales. The year-on-year materials margin was slightly better. Wages and salaries amounted to EUR 13.3 (13.1) million while taxes stood at EUR 1.1 (1.1) million. Tax rate rose to 36.2% due to the growth in the Parent Company's tax accrual. Undiluted result per share was EUR 0.11 (0.15). Operating cash flow stood at EUR -0.2 (-0.5) million. Cash flow was weakened by a few fairly large outstanding sales receivables.

Group Operations in January to September 2012

Key figures (€ million)  1-9/2012  1-9/2011 Change %  1-12/2011
Orders received 138.8 134.6 3.1% 188.1
Net sales 146.4 130.2 12.5% 183.6
Operating profit 8.2 5.2 56.8% 9.4
Operating profit, % 5.6% 4.0%   5.1%
Net profit 5.1 3.4 48.4% 6.3
         
Other important key figures        
Earnings per share, EUR 0.29 0.20 48.4% 0.36
Cash flow from operations, € million 10.2 -2.4 n/a 2.1
Net gearing, % 21.7% 44.1% -50.7% 32.2%
Equity ratio, % 47.5% 41.4% 14.8% 41.6%
Personnel at period-end 1,308 1,311 -0.2% 1,319

Due to the favorable order intake in the first quarter, orders received increased by 3.1% from the comparative period and totaled EUR 138.8 (134.6) million. Net sales grew by 12.5% amounting to EUR 146.4 (130.2) million. Operating profit grew by 56.8% equaling EUR 8.2 (5.2) million.

Financial items amounted to EUR 0.7 (0.4) million. Taxes paid amounted to EUR 2.4 (1.4) million and the Group's tax rate was 32.3% (29.4%). Undiluted result per share was EUR 0.29 (0.20). Operating cash flow stood at EUR 10.2 (-2.4) million.

Events after the end of the review period

Teleste initiated codetermination negotiations on 9 October 2012. These negotiations involve personnel of the parent company Teleste Corporation in Finland. In addition, adaptation measures are being prepared in certain overseas business units of Video and Broadband Solutions.

 

Video and Broadband Solutions in July to September 2012

Economic Development of Video and Broadband Solutions:

   7-9/2012  7-9/2011 Change %
Orders received 19,720 22,300 -11.6%
Net sales 24,794 23,947 3.5%
Operating profit 2,423 3,420 -29.1%
Operating profit, % 9.8% 14.3%  

Year-on-year orders received decreased by 11.6% standing at EUR 19.7 (22.3) million. Order backlog totaled EUR 13.6 (18.8) million. Net sales grew by 3.5% amounting to EUR 24.8 (23.9) million.

Operating profit stood at EUR 2.4 (3.4) million making 9.8% (14.3%) of the net sales. This decline in the operating profit was mainly due to weakening in the materials margin as the deliveries were increasingly focused on low-margin supplies.

R&D expenses were 2.4 (2.8) million, or 9.8% (11.7%) of the business area's net sales. Activated R&D expenses stood at EUR 0.2 (0.7) million. Projects focused mainly on research of future platforms and on short-term customer-specific development projects. Depreciation on R&D expenses amounted to EUR 0.5 (0.5) million.


Video and Broadband Solutions in January to September 2012

   1-9/2012  1-9/2011 Change %  1-12/2011
Orders received 69,900 64,600 8.2% 93,274
Net sales 76,571 62,018 23.5% 89,716
Operating profit 6,495 5,158 25.9% 8,220
Operating profit, % 8.5% 8.3%   9.2%

Orders received improved by 8.2% standing at EUR 69.9 (64.6) million.

Net sales grew by 23.5% amounting to EUR 76.6 (62.0) million. Operating profit increased 25.9% to EUR 6.5 (5.2) million, or 8.5% (8.3%) of net sales. This positive development was due to increased net sales.

R&D expenses equaled EUR 8.3 (8.6), in other words 10.9% (13.9%) of net sales. Activated R&D expenses stood at EUR 0.6 (2.1) million while depreciation on product development expenses equaled EUR 1.5 (2.1) million.

 

Network Services in July to September 2012

Economic Development of Network Services:

   7-9/2012  7-9/2011 Change %
Orders received 20,796 21,503 -3.3%
Net sales 20,796 23,013 -9.6%
Operating profit 448 376 19.1%
Operating profit, % 2.2% 1.6%  

Orders received in Q3 stood at EUR 20.8 (21.5) million. Year-on-year net sales decreased by 9.6% and totaled EUR 20.8 (23.0) million. Net sales decreased in German fiber projects and UK network design services. Operating profit stood at EUR 0.4 (0.4) million making 2.2% (1.6%) of the net sales.

 

Network Services in January to September 2012

   1-9/2012  1-9/2011 Change %  1-12/2011
Orders received 68,936 70,003 -1.5% 94,800
Net sales 69,836 68,165 2.5% 93,900
Operating profit 1,733 90 1825.6% 1,160
Operating profit, % 2.5% 0.1%   1.2%

Orders received totaled EUR 68.9 (70.0) million. Net sales grew by 2.5% amounting to EUR 69.8 (68.2) million. Operating profit equaled EUR 1.7 (0.1) million. This growth in the operating profit was due to increased net sales and a better partner network management.

Personnel and Organization in January to September 2012

In the period under review, the Group had an annual average of 1,326 people (1,290/2011 1,221/2010), of whom 568 (562) were employed by Video and Broadband Solutions, and 758 (728) by Network Services, respectively. At the end of the review period, the figure totaled 1,308 (1,311/2011, 1,231/2010) of whom 73% (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 wages and salaries increased by 12.0% and totaled EUR 43.8 (39.1/January to September/2011, 36.7/January to September/2010) million. This increase in wages and salaries was mainly attributable to the growth in personnel in Network Services, accruals of remuneration schemes and union-specific pay increases based on collective agreements.

At the end of the review period, rented workforce in Finland was 15 (24). Temporary labor costs are included in the cost of materials and services.

Investments in January to September 2012

Investments by the Group for the period under review totaled EUR 2.5 (5.2) million accounting for 1.7% (4.0%) of net sales. Investments in product development equaled EUR 0.6 (2.1) million. R&D investments decreased, mainly because the projects focused on research of future product platforms, further development of product platforms and short-term customer projects. Other investments involved information systems, as well as machinery and equipment for production and services. As to these investments, EUR 0.8 (0.4) million were carried out under financial lease arrangements. Investments in the comparative period included the extension investment of the company business premises of EUR 1.0 million. 

Financing and Capital Structure in January to September 2012

Operating cash flow stood at EUR 10.2 (-2.4) million. This improvement in the operating cash flow over the comparative period was mainly due to higher EBITDA, as well as a decrease in inventories. Moreover, the impact created by the change in payment terms of our German main customer was weakened. At the end of the period under review, the amount of unused binding stand-by credits amounted to EUR 16.0 (7.5) million. These stand-by credits have been revised and the current binding stand-by credit facilities of EUR 40.0 million are valid until August 2015.

The Group’s equity ratio equaled 47.5% (41.4%) while net gearing stood at 21.7% (44.1%). Interest bearing debt on 30 September 2012 stood at EUR 25.1 (33.4) 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. Our customers' network investments vary based on their given need for upgrading and their 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 tight financial market in Europe may slow down 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 of 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 our 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 ability to deliver and compete may be constrained by the adequacy of our sub-contractor network capacity. Tender calculation and management of larger projects involving overall responsibility 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 supply products and services.

The Board of Directors annually reviews any essential risks related to the company operation and their management. 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 covers any major risks of loss involving the business areas through insurance policies. Insurance will also cover credit loss risks related to sales receivables. In the period under review, no such risks materialized, and no 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 September 2012, EM Group Oy was the largest single shareholder with their holding of 22.48%.

In the period under review, the lowest company share price was EUR 3.04 (2.61) and the highest was EUR 4.44 (4.82). Closing price on 30 September 2012 stood at EUR 4.38 (2.71). According to Euroclear Finland Ltd, the number of shareholders at the end of the period under review was 5,187 (5,090). Foreign ownership accounted for 5.96% (8.0%). From 1 January to 30 September 2012, trading with Teleste share at NASDAQ OMX Helsinki amounted to EUR 8.2 (4.8) million. In the period under review, 2.1 (1.2) million Teleste shares were traded on the stock exchange.

At the end of September 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 September 2012, the registered share capital of Teleste stood at EUR 6,966,932.80 divided in 18,728,590 shares.

2007B and 2007C stock options began trading on the NASDAQ OMX Helsinki Ltd on 2 April 2012. These options allow subscription for a maximum of 560,000 shares in the company.

Outlook for 2012  

In terms of the whole year, we estimate that deliveries of equipment and solutions for the operator clientele of Video and Broadband Solutions will increase from the 2011 level.

On the annual basis, demand by the current clientele of Network Services will remain stable. Profitability in our main market of Germany will improve markedly for the entire year over the 2011 level.

Net sales and profitability for Teleste's fourth quarter of 2012 will fall short of the comparative period due to leveling off in demand.

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

 

30 October 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. Teleste has prepared this interim report applying the same accounting principles as those described in detail in its 2011 consolidated financial statements. The data stated in this report is unaudited.

 

STATEMENT OF COMPREHENSIVE INCOME (tEUR) 7-9/2012 7-9/2011 Change % 1-12/2011
           
Net Sales 45,590 46,960 -2.9 % 183,616
  Other operating income 0 461 -100.0 % 2,112
  Materials and services -21,867 -23,039 -5.1 % -90,990
  Personnel expenses -13,258 -13,106 1.2 % -54,560
  Other operating expenses -6,256 -6,172 1.4 % -25,426
  Depreciation -1,338 -1,308 2.3 % -5,372
Operating profit 2,871 3,796 -24.4 % 9,380
           
  Financial income and expenses 43 -98 n/a -541
Profit after financial items 2,914 3,698 -21.2 % 8,839
           
Profit before taxes 2,914 3,698 -21.2 % 8,839
           
  Taxes -1,054 -1,103 -4.4 % -2,540
           
Net profit 1,860 2,595 -28.3 % 6,299
           
Attributable to:        
  Equity holders of the parent 1,860 2,595 -28.3 % 6,299
           
Earnings per share for result of the year attributable to the equity holders of the parent    
(expressed in € per share)        
  Basic 0.11 0.15 -28.8 % 0.36
  Diluted 0.11 0.15 -29.9 % 0.36
           
  Total comprehensive income for the period (tEUR)        
Net profit 1,860 2,595 -28.3 % 6,299
Translation differences 322 -87 n/a 149
Fair value reserve 36 0 n/a 20
Total comprehensive income for the period 2,218 2,508 -11.6 % 6,468
           
Attributable to:        
  Equity holders of the parent 2,218 2,508 -11.6 % 6,468

 

 

STATEMENT OF COMPREHENSIVE INCOME (tEUR) 1-9/2012 1-9/2011 Change % 1-12/2011
           
Net Sales 146,407 130,183 12.5 % 183,616
  Other operating income 788 1,383 -43.0 % 2,112
  Materials and services -72,265 -65,184 10.9 % -90,990
  Personnel expenses -43,759 -39,080 12.0 % -54,560
  Other operating expenses -19,074 -18,108 5.3 % -25,426
  Depreciation -3,869 -3,946 -2.0 % -5,372
Operating profit 8,228 5,248 56.8 % 9,380
           
  Financial income and expenses -718 -398 80.4 % -541
Profit after financial items 7,510 4,850 54.8 % 8,839
           
           
Profit before taxes 7,510 4,850 54.8 % 8,839
           
  Taxes -2,428 -1,426 70.3 % -2,540
           
Net profit 5,082 3,424 48.4 % 6,299
           
Attributable to:        
  Equity holders of the parent 5,082 3,424 48.4 % 6,299
           
Earnings per share for result of the year attributable to the equity holders of the parent
(expressed in € per share)        
  Basic 0.29 0.20 48.4 % 0.36
  Diluted 0.29 0.20 46.2 % 0.36
           
  Total comprehensive income for the period (tEUR)        
Net profit 5,082 3,424 48.4 % 6,299
Translation differences 679 -286 n/a 149
Fair value reserve 120 96 25.0 % 20
Total comprehensive income for the period 5,881 3,234 81.8 % 6,468
           
Attributable to:        
  Equity holders of the parent 5,881 3,234 81.8 % 6,468

 

STATEMENT OF FINANCIAL POSITION  (tEUR) 30.9.2012 30.9.2011 Change % 31.12.2011
Non-current assets        
  Property,plant,equipment 10,032 10,445 -4.0 % 9,364
  Goodwill 31,400 30,959 1.4 % 31,277
  Intangible assets 4,644 6,314 -26.4 % 6,338
  Deferred tax assets 1,833 n/a n/a 1,714
  Investments 287 713 -59.7 % 713
    48,196 48,431 -0.5 % 49,406
Current assets        
  Inventories 21,131 25,118 -15.9 % 24,075
  Other current assets 42,315 42,170 0.3 % 44,326
  Liquid funds 12,311 10,600 16.1 % 15,404
    75,757 77,888 -2.7 % 83,805
           
Total assets 123,952 126,319 -1.9 % 133,211
           
Shareholder's equity and liabilities        
  Share capital 6,967 6,967 0.0 % 6,967
  Other equity 51,111 44,402 15.1 % 47,688
  Non-controlling interest 695 318 118.6 % 623
    58,773 51,687 13.7 % 55,278
           
Non-current liabilities        
  Provisions 605 361 67.6 % 605
  Deferred tax liabilities 2,182 776 181.2 % 1,946
  Non interest bearing liabilities 3,394 3,723 -8.8 % 4,140
  Interest bearing liabilities 665 10,937 -93.9 % 11,940
    6,846 15,797 -56.7 % 18,631
Short-term liabilities        
  Trade payables and other s-t liabilities 32,700 35,063 -6.7 % 36,818
  Provisions 1,211 1,313 -7.8 % 1,211
  S-t interest bearing liabilities 24,422 22,459 8.7 % 21,273
    58,333 58,835 -0.9 % 59,302
           
Total shareholder's equity and liabilities 123,952 126,319 -1.9 % 133,211

 

CONSOLIDATED CASH FLOW STATEMENT (tEUR) 1-9/2012 1-9/2011 Change %  1-12/2011
Cash flows from operating activities        
  Profit for the period 5,082 3,424 48.4 % 6,299
  Adjustments 7,069 5,912 19.6 % 8,633
  Interest and other financial expenses and incomes -295 -398 -25.9 % -541
  Paid Taxes -2,087 -2,000 4.4 % -2,471
  Change in working capital 450 -9,378 n/a -9,857
Cash flow from operating activities 10,219 -2,440 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) -1,242 -2,223 -44.1 % -2,632
  Purchases of intangible assets -480 -2,869 -83.3 % -2,729
Net cash used in investing activities -2,302 -5,092 -54.8 % -5,361
Cash flow from financing activities        
  Proceeds from borrowings 0 6,000 n/a 6,000
  Payments of borrowings -9,249 -694 1232.7 % -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 -11,689 3,215 n/a 3,351
           
Change in cash        
  Cash in the beginning 15,404 15,203 1.3 % 15,203
  Change in cash during period -3,772 -4,317 -12.6 % 52
  Effect of currency changes 679 -286 n/a 149
  Cash at the end 12,311 10,600 16.1 % 15,404

 

KEY FIGURES 1-9/2012 1-9/2011 Change %  1-12/2011
  Earnings per share, EUR 0.29 0.20 48.4 % 0.36
  Earnings per share fully diluted, EUR 0.29 0.20 46.2 % 0.36
  Shareholders' equity per share, EUR 3.37 2.97 13.7 % 3.17
           
  Return on equity 11.9 % 8.9 % 32.9 % 11.9 %
  Return on capital employed 13.0 % 8.8 % 48.4 % 11.5 %
  Equity ratio 47.5 % 41.4 % 14.8 % 41.6 %
  Gearing 21.7 % 44.1 % -50.7 % 32.2 %
           
  Investments, tEUR 2,522 5,195 -51.5 % 5,240
  Investments % of net sales 1.7 % 4.0 % -56.8 % 2.9 %
  Order backlog, tEUR 13,629 21,420 -36.4 % 21,200
  Personnel, average 1,326 1,290 2.8 % 1,297
           
  Number of shares (thousands) 18,729 18,094 3.5 % 18,190
    including own shares        
  Highest share price, EUR 4.44 4.82 -7.9 % 4.82
  Lowest share price, EUR 3.04 2.61 16.5 % 2.50
  Average share price, EUR 3.97 3.89 2.1 % 3.00
           
  Turnover, in million shares 2.1 1.2 69.6 % 1.7
  Turnover, in MEUR 8.2 4.8 72.1 % 6.2
           
Treasury shares        
    Number   % of % of
    of shares   shares votes
           
  Teleste companies own shares 30.9.2012 1,302,985   6.96% 6.96%
           
Contingent liabilities and pledged assets (tEUR)
           
Leasing and rent liabilities 9,026 9,210 -2.0 % 8,124
           
Derivative instruments (tEUR)        
  Value of underlying forward contracts 1,913 6,181 -69.1 % 7,434
  Market value of forward contracts -50 -10 400.0 % -99
  Interest rate swap 2,500 11,500 -78.3 % 11,500
  Market value of interest swap -46 -186 -75.3 % -167
           
Taxes are computed on the basis of the tax on the profit for the period.

 

OPERATING SEGMENTS (tEUR)  1-9/2012  1-9/2011 Change %  1-12/2011
 
Video and Broadband Solutions
  Order intake 69,900 64,600 8.2 % 93,274
  Net sales 76,571 62,018 23.5 % 89,716
  EBIT 6,495 5,158 25.9 % 8,220
  EBIT% 8.5 % 8.3 %   9.2 %
 
Network Services
  Order intake 68,936 70,003 -1.5 % 94,800
  Net sales 69,836 68,165 2.5 % 93,900
  EBIT 1,733 90 1825.6 % 1,160
  EBIT% 2.5 % 0.1 %   1.2 %
 
Total
  Order intake 138,836 134,603 3.1 % 188,074
  Net sales 146,407 130,183 12.5 % 183,616
  EBIT 8,228 5,248 56.8 % 9,380
  EBIT% 5.6 % 4.0 %   5.1 %
  Financial items -718 -398 80.4 % -541
  Operating segments net profit before taxes 7,510 4,850 54.8 % 8,839


 

 

Information per quarter (tEUR)  7-9/12  4-6/12  1-3/12  10-12/11  7-9/11  10/2011-
  9/2012
 
Video and Broadband Solutions
  Order intake 19,720 23,790 26,390 28,674 22,300 98,574
  Net sales 24,794 24,278 27,499 27,698 23,947 104,269
  EBIT 2,423 1,548 2,524 3,062 3,420 9,557
  EBIT % 9.8 % 6.4 % 9.2 % 11.1 % 14.3 % 9.2 %
 
Network Services
  Order intake 20,796 25,409 22,731 24,797 21,503 93,733
  Net sales 20,796 25,409 23,631 25,735 23,013 95,571
  EBIT 448 872 413 1,070 376 2,803
  EBIT % 2.2 % 3.4 % 1.7 % 4.2 % 1.6 % 2.9 %
 
Total
  Order intake 40,516 49,199 49,121 53,471 43,803 192,307
  Net sales 45,590 49,687 51,130 53,433 46,960 199,840
  EBIT 2,871 2,420 2,937 4,132 3,796 12,360
  EBIT % 6.3 % 4.9 % 5.7 % 7.7 % 8.1 % 6.2 %

 

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
Attributable to equity holders of the parent (tEUR)                  
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     679 5,082   120 5,881   5,881
Paid dividend       -2,569     -2,569 129 -2,440
Non-controlling parties accrued cost of interest                  
for the loan provided by mother company       57     57 -57 0
Equity-settled share-based payments       54     54 0 54
Shareholder's equity 30.9.2012 6,967 1,504 733 46,183 2,737 -46 58,078 695 58,773
                   
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     -286 3,424   96 3,234 0 3,234
Paid dividend       -2,137     -2,137 46 -2,091
Non-controlling parties accrued cost of interest                  
for the loan provided by mother company       20     20 -20 0
Equity-settled share-based payments       142     142 0 142
Shareholder's equity 30.9.2011 6,967 1,504 -381 40,632 2,737 -90 51,369 318 51,687

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 30.9.2012 Shares %
EM Group Oy 4,209,816 22.48
Mandatum Life 1,679,200 8.97
Ilmarinen Mutual Insurance Company 936,776 5.00
Kaleva Mutual Insurance Company 824,641 4.40
Teleste Management II Oy 542,000 2.89
Varma Mutual Insurance Company 521,150 2.78
State Pension Fund 500,000 2.67
Op-Suomi Small Cap 480,000 2.56
Aktia Capital Mutual Fund 450,000 2.40

  

SECTOR DISPERSION 30.9.2012 Shareholders % Shares %
Corporations 291 5.61 7,009,926 37.42
Financial and insurance corporations 11 0.21 3,510,655 18.74
Public institutions 7 0.13 2,108,026 11.25
Non-profit institutions 36 0.69 354,904 1.89
Households 4,795 92.44 4,627,856 24.71
Foreign countries and nominee registered 47 0.90 1,117,223 5.96
Total 5,187 100.00 18,728,590 100.00

 

AMOUNT 30.9.2012 Shareholders % Shares %
0 - 100 1,141 21.99 78,309 0.41
101 – 1,000 3,029 58.39 1,277,430 6.82
1,001 – 10,000 919 17.71 2,539,018 13.55
10,001 – 100,000 77 1.48 1,897,942 10.13
100,001 – 1,000,000 19 0.36 7,046,875 37.62
1,000,001 - 2 0.03 5,889,016 31.44
Total 5,187 100.00 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