TELESTE CORPORATION INTERIM REPORT 1 JAN TO 30 JUN 2014

Turku, Finland, 2014-08-07 07:30 CEST (GLOBE NEWSWIRE) --
 

TELESTE CORPORATION   INTERIM REPORT   7 AUGUST 2014  AT 08:30 
                                             

TELESTE CORPORATION INTERIM REPORT 1 JAN TO 30 JUN 2014 

INCREASED ORDERS RECEIVED AND NET SALES, INVESTMENTS INTO SERVICES BUSINESS LOWERED PROFITABILITY

 

Second quarter of 2014
- Net sales amounted to EUR 49.4 (46.5) million, an increase of 6.3%
- Operating profit stood at EUR 1.4 (1.7) million, a decrease of 20.4% 
- Undiluted earnings per share stood at EUR 0.05 (EUR 0.07)
- Orders received totalled EUR 50.3 (44.2) million, an increase of 13.8%
- Cash flow from operations was EUR 0.3 (4.1) million, a decrease of 92.5%   

 

Outlook for 2014

We estimate that net sales and operating profit for the year 2014 will not reach the 2013 level.

 

Comments on second quarter of 2014 by CEO Jukka Rinnevaara:

"Demand for Video and Broadband Solutions was good and orders received increased significantly over the comparative period. We managed to increase net sales more than expected, especially in optical products and headends of access networks. Growing areas of the market included particularly Germany, France and the UK. Nevertheless operating profit failed to reach the level of the reference period mainly due to the shift in sales towards lower-margin products.

As for Network Services, we continued to implement structural changes and investments designed to improve profitability and business expansion in Germany and the UK. These investments for growth and restructuring costs reduced the profitability of our services business. As for the new services business, we expect net sales and profitability to improve right in the latter part of the year."

 

Teleste Group in April to June 2014

Key figures (EUR million) 4-6/2014 4-6/2013 Change %
Orders received 50.3 44.2 +13.8%
Net sales 49.4 46.5 +6.3%
EBIT 1.4 1.7 -20.4%
EBIT % 2.8% 3.7%  
Profit for the period 0.9 1.3 -29.0%
       
Other important key figures      
Earnings per share, EUR 0.05 0.07 -29.6%
Cash flow from operations, M€ 0.3 4.1 -92.5%

Orders received by the Group in the second quarter totalled EUR 50.3 (44.2) million, an increase of 13.8%. The year-on-year order backlog grew by EUR 5.1 million to EUR 17.4 (12.3) million.

Net sales grew by 6.3% amounting to EUR 49.4 (46.5) million. Compared to the same period in the previous year, operating profit decreased by 20.4% standing at EUR 1.4 (1.7) million, which is 2.8% (3.7%) of net sales. Operating profit of Video and Broadband Solutions increased, whereas that of Network Services was in the red. Personnel expenses amounted to EUR 15.4 (14.5) million. Undiluted earnings per share were EUR 0.05 (0.07). Operating cash flow stood at EUR 0.3 (4.1) million. Increased trade receivables decreased cash flow over the comparative period.

Teleste Group in January to June 2014

Key figures (EUR million) 1-6/2014 1-6/2013 Change % 1-12/2013
Orders received 97.2 87.6 11.0% 188.9
Net sales 92.9 92.3 0.7% 192.8
EBIT 2.7 4.3 -38.4% 11.0
EBIT % 2.9% 4.7%   5.7%
Profit for the period 1.8 3.1 -40.4% 8.1
         
Other important key figures        
Earnings per share, EUR 0.10 0.18 -40.4% 0.47
Cash flow from operations 1.8 4.3 -59.1% 10.0
Net gearing, % 18.2% 21.8% % 13.8%
Equity ratio, % 52.0% 48.5% % 52.7%
Personnel at period-end 1,303 1,325 -1.7% 1,261

Orders received by the Group improved by 11.0% standing at EUR 97.2 (87.6) million. Net sales grew by 0.7% amounting to EUR 92.9 (92.3) million. Operating profit decreased by 38.4% to EUR 2.7 (4.3) million. Personnel expenses amounted to EUR 29.3 (28.9) million. Financial items totalled EUR 0.2 (0.2) million. Taxes for the Group amounted to EUR 0.6 (1.1) million while the Group's tax rate was 25.7% (26.4%). Undiluted earnings per share were EUR 0.10 (0.18). Operating cash flow stood at EUR 1.8 (4.3) million.

 

Video and Broadband Solutions in April to June 2014

Key figures (1,000 €)  4-6/2014  4-6/2013 Change %
Orders received 27,898 23,350 +19.5%
Net sales 27,007 25,625 +5.4%
EBIT 1,835 2,308 -20.5
EBIT % 6.8% 9.0%  

Orders received totalled EUR 27.9 (23.4) million, an increase of 19.5%. Order backlog totalled EUR 17.4 (12.3) million. Net sales grew by 5.4% amounting to EUR 27.0 (25.6) million. The strong demand for access network products increased the year-on-year net sales to a higher level, even if net sales of the video surveillance solutions fell from the comparative period. Operating profit stood at EUR 1.8 (2.3) million making 6.8% (9.0%) of net sales. This decline in the operating profit percentage was primarily due to lower volume of sales of the video surveillance solutions over the period of comparison.

R&D expenses for the business area amounted to EUR 3.0 (2.7) million making 11.0% (10.5%) of net sales. Most of the R&D projects included further development of the product families in production and customer-specific projects. Capitalized R&D expenses amounted to EUR 0.3 (0.3) million. Depreciation on capitalized R&D expenses equalled EUR 0.3 (0.5) million.

Video and Broadband Solutions in January to June 2014

Key figures (1,000 €)  1-6/2014  1-6/2013 Change %  1-12/2013
Orders received 52,794 44,769 +17.9% 97,815
Net sales 48,492 49,438 -1.9% 101,716
EBIT 2,635 4,744 -44.5% 9,460
EBIT % 5.4% 9.6%   9.3%

Orders received totalled EUR 52.8 (44.8) million, an increase of 17.9%. Net sales decreased by 1.9% amounting to EUR 48.5 (49.4) million. Operating profit decreased by 44.5% amounting to EUR 2.6 (4.7) million. The operating profit was adversely affected particularly by the quiet early year and lower year-on-year deliveries of video surveillance solutions. Product development expenses equalled EUR 5.6 (5.1) million, in other words 11.5% (10.3%) of net sales.  

 

Network Services in April to June 2014

Key figures (1000 €)  4-6/2014  4-6/2013 Change %
Orders received 22,405 20,870 7.4%
Net sales 22,405 20,870 7.4%
EBIT -452 -570  
EBIT % -2.0% -2.7%  

Second-quarter net sales stood at EUR 22.4 (20.9) million, which is 7.4% higher than in the comparison period. Net sales increased primarily in Germany, where the comparative period's net sales were lower than average. Operating result was a loss standing at EUR -0.5 (-0.6) million, or -2.0% (-2.7%) of net sales. This operating loss was caused by custom-specific rearrangements and increases made in the installation capacity for future growth in Germany, as well as investments aimed at business expansion in the UK. These changes will allow for improved profitability and expansion of business in the rest of the year.

Network Services in January to June 2014

Key figures (1,000 €)  1-6/2014  1-6/2013 Change %  1-12/2013
Orders received 44,453 42,816 3.8% 91,060
Net sales 44,453 42,816 3.8% 91,060
EBIT 38 -404 n/a 1,587
EBIT % 0.1% -0.9%   1.7%

The year-on-year net sales grew by 3.8% amounting to EUR 44.5 (42.8) million. Operating profit equalled EUR 0.0 (-0.4) million. While the demand for services was good, customer-specific rearrangements in Germany and investments to expand the business in the UK pulled the result down to zero.

 

Personnel and Organization in January to June 2014          

In the period under review, the Group had an annual average of 1,275 people (1,336/2013, 1,326/2012), of whom 562 (554) were employed by Video and Broadband Solutions, and 713 (782) by Network Services. At the end of the review period, the Group employed 1,303 people (1,325/2013, 1,348/2012) of whom 69% (74%/2013, 70%/2012) were stationed abroad. About 3% of the Group's employees were working outside Europe.

Personnel costs amounted to EUR 29.3 million (28.9/2013, 30.5/2012).

Investments and Product Development in January to June 2014

Investments by the Group for the period under review totalled EUR 1.5 (4.6) million accounting for 1.7% (5.0%) of net sales. As for the year-on-year investments, EUR 3.5 million involved the acquisition of Asheridge. Product development investments amounted to EUR 0.6 (0.6) million while other investments equalled EUR 0.8 million.

Financing and Capital Structure in January to June 2014

Operating cash flow stood at EUR 1.8 (4.3) million. This decrease in cash flow from operating activities was mainly due to increased trade receivables. At the end of the period under review, the amount of unused binding stand-by credits amounted to EUR 17.0 (14.0) million. Credit limits are valid until August 2015.

The Group's equity ratio equalled 52.0% (48.5%) and net gearing 18.2% (21.8%). On 30 June 2014, the Group's interest-bearing debt stood at EUR 24.1 (27.7) million.  

Key Risks by the 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 clients include European cable operators and specified organizations in the public sector.

As to Video and Broadband Solutions, client-specific and integrated deliveries of solutions create favourable 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 the relevant 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. 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 situation in the European financial markets may slow down our customers' investment plans. Furthermore, a weakening in the consumer purchasing power in Europe could slow down the network investments by the cable operators. Competition increased by the new service providers (OTT) may undermine the cable operators' ability to invest. Availability of components is subject to natural phenomena, such as floods and earthquakes. Severe weather conditions have an impact on the business areas' ability to deliver products and services. 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 our services by any one of them is reflected in the actual deliveries and profitability. 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 skills and competences in Teleste's own personnel as well as those of our subcontractors. In addition, Teleste's ability to deliver and compete may be constrained by the adequacy of our sub-contractor network capacity. Tender calculation and management of larger projects with overall responsibility are complex and include risks.

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. The Board of Directors annually reviews any essential risks related to the company operation and their management. Risk management is an integral part of the strategic and operational activities of the business areas. Risks are reported to the Board on a regular basis.

The company has covered 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 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, and Denmark with subsidiaries in 14 countries outside Finland. Teleste Management Oy was merged with the parent company on 28 February 2014. Teleste Management II Oy, founded in December 2011, has been consolidated in the Teleste Group figures on account of financial arrangements.

Shares and Changes in Share Capital

On 30 June 2014, EM Group Oy was the largest single shareholder with a holding of 23.23%.

In the period under review, the lowest company share price was EUR 4.25 (3.78) and the highest was EUR 4.86 (4.47). Closing price on 30 June 2014 stood at EUR 4.55 (4.09). According to Euroclear Finland Ltd the number of shareholders at the end of the period under review was 5,052 (5,086). Foreign ownership accounted for 4.81% (5.83%). From 1 January to 30 June 2014, trading with Teleste share at NASDAQ OMX Helsinki amounted to EUR 5.9 (5.6) million. In the period under review, 1.3 (1.3) million Teleste shares were traded on the stock exchange.

At the end of June 2014, the Group held 1,189,654 of its own shares, of which the parent company Teleste Corporation had 647,654 shares while the Group and controlled companies had 542,000 shares, respectively. At the end of the period, the Group's holding of the total amount of shares amounted to 6.27% (6.35%).

The share subscription period for stock option rights 2007C began on 1 April 2012 and ended on 30 April 2014. Stock option rights 2007C enabled subscription of 280,000 shares in total. Based on option rights 2007C, a total of 256,998 Teleste Corporation's new shares were subscribed. Those 2007C option rights that were not used before the expiry of the subscription period, are null and void.

On 30 June 2014, the registered share capital of Teleste stood at EUR 6,966,932.80 divided in 18,985,588 shares.

Decisions by the Annual General Meeting

The Annual General Meeting (AGM) of Teleste Corporation on 1 April 2014 confirmed the financial statements for 2013 and discharged the Board of Directors and the CEO from liability for the financial period. The AGM confirmed the dividend of EUR 0.19 per share proposed by the Board. The dividend was paid out on 11 April 2014.

Ms. Marjo Miettinen, Mr. Pertti Ervi, Ms. Jannica Fagerholm, Mr. Esa Harju, Mr. Kai Telanne and Mr. Petteri Walldén continue in Teleste's Board of Directors. Ms. Marjo Miettinen was elected Chair of the Board in the organizational meeting held immediately after the AGM.

Authorized Public Accountants KPMG Oy Ab continues 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.

On 1 April 2014, the Annual General Meeting decided on the following authorizations of the Board of Directors:

- Purchases of own shares: maximum of 1,200,000 shares. This authorization is valid for 18 months from the date of the decision.  
- Issue of new shares: maximum of 4,000,000 shares, valid for three years from the date of the decision.
- Disposal of own shares in possession: maximum of 1,800,000 shares, valid for three years from the date of the decision. 
- Based on the special rights granted by the Company, the number of shares to subscribe may not exceed 2,500,000 shares; these special rights are included in the maximum warrants concerning new shares and the Group's own shares mentioned above. This authorization will be valid for three years from the date of the decision.

 

Outlook for 2014  

Video and Broadband Solutions aim at maintaining a strong market position in Europe and expand into selected new markets. Network capacity will continue to increase driven by the new broadband and video services provided by the operators. New products in line with communication standard Docsis 3.1 will enable network operators to activate their investments in the rest of the year. Price erosion in the market continues. The positive trend in the video surveillance market will continue, but the public sector decisions to start projects may be delayed in the current economic climate. We estimate profitability of Video and Broadband Solutions to improve compared to the first half of the year.

The business objective of Network Services is to develop the operational efficiency and give up any unprofitable services activities during the year. We estimate the demand for comprehensive network services in our key target markets to continue at par with the comparative year and the profitability to improve compared to the first half of the year.

We estimate that net sales and operating profit for the year 2014 will not reach the 2013 level.

 

6 August 2014

 

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 it’s the consolidated financial statements. The data stated in this report is unaudited. The changes in IAS1, IFRS13 and IAS19 have been applied in this interim report and they do not have any material impact on the financial reporting.

  

STATEMENT OF COMPREHENSIVE INCOME (tEUR) 4-6/
2014
4-6/
2013
Change % 1-12/
2013
           
Net Sales 49,412 46,495 6.3 % 192,775
  Other operating income 317 0 n/a 840
  Materials and services -25,261 -21,997 14.8 % -94,456
  Personnel expenses -15,363 -14,455 6.3 % -56,949
  Other operating expenses -6,721 -7,144 -5.9 % -26,536
  Depreciation -1,001 -1,161 -13.8 % -4,628
Operating profit 1,383 1,738 -20.4 % 11,047
           
  Financial income and expenses -125 -103 21.4 % -386
Profit after financial items 1,258 1,635 -23.1 % 10,660
           
Profit before taxes 1,258 1,635 -23.1 % 10,660
           
  Taxes -355 -364 -2.5 % -2,513
           
Net profit 903 1,271 -29.0 % 8,147
           
Attributable to:        
  Equity holders of the parent 903 1,271 -29.0 % 8,147
           
Earnings per share for result of the year attributable to the equity holders of the parent
(expressed in € per share)        
  Basic 0.05 0.07 -29.6 % 0.47
  Diluted 0.05 0.07 -29.0 % 0.46
           
Total comprehensive income for the period (tEUR)        
Net profit 903 1,271 -29.0 % 8,147
Possible items with future net profit effect        
Translation differences -141 -516 -72.7 % -559
Fair value reserve 8 27 -70.4 % 16
Total comprehensive income for the period 770 782 -1.5 % 7,604
           
Attributable to:        
  Equity holders of the parent 770 782 -1.5 % 7,604

  

STATEMENT OF COMPREHENSIVE INCOME (tEUR) 1-6/
2014
1-6/
2013
Change % 1-12/
2013
           
Net Sales 92,945 92,254 0.7 % 192,775
  Other operating income 503 458 9.8 % 840
  Materials and services -46,263 -43,601 6.1 % -94,456
  Personnel expenses -29,348 -28,890 1.6 % -56,949
  Other operating expenses -13,139 -13,369 -1.7 % -26,536
  Depreciation -2,025 -2,512 -19.4 % -4,628
Operating profit 2,673 4,340 -38.4 % 11,047
           
  Financial income and expenses -217 -185 17.5 % -386
Profit after financial items 2,456 4,155 -40.9 % 10,660
           
Profit before taxes 2,456 4,155 -40.9 % 10,660
           
  Taxes -632 -1,097 -42.4 % -2,513
           
Net profit 1,824 3,058 -40.4 % 8,147
           
Attributable to:        
  Equity holders of the parent 1,824 3,058 -40.4 % 8,147
           
Earnings per share for result of the year attributable to the equity holders of the parent
(expressed in € per share)          
  Basic 0.10 0.18 -40.4 % 0.47  
  Diluted 0.10 0.17 -40.4 % 0.46  
             
Total comprehensive income for the period (tEUR)          
Net profit 1,824 3,058 -40.4 % 8,147  
Possible items with future net profit effect          
Translation differences -49 -471 -89.6 % -559  
Fair value reserve 1 51 -98.0 % 16  
Total comprehensive income for the period 1,776 2,638 -32.7 % 7,604  
             
Attributable to:          
  Equity holders of the parent 1,776 2,638 -32.7 % 7,604  

  

STATEMENT OF FINANCIAL POSITION  (tEUR) 30.06.2014 30.06.2013 Change % 31.12.2013
Non-current assets        
  Property,plant,equipment 10,333 10,637 -2.9 % 10,499
  Goodwill 33,250 33,301 -0.2 % 33,252
  Other intangible assets 4,191 4,567 -8.2 % 4,448
  Deferred tax assets 1,900 2,079 -8.6 % 2,002
  Available-for-sale investments 422 286 47.6 % 294
    50,096 50,870 -1.5 % 50,494
Current assets        
  Inventories 20,115 20,295 -0.9 % 19,762
  Trade and other receivables 41,381 38,546 7.4 % 38,844
  Cash and cash equivalents 12,242 14,570 -16.0 % 15,229
    73,738 73,411 0.4 % 73,835
           
Total assets 123,833 124,280 -0.4 % 124,329
           
Shareholder's equity and liabilities        
  Share capital 6,967 6,967 0.0 % 6,967
  Other equity 56,906 52,840 7.7 % 58,160
  Non-controlling interest 488 425 14.8 % 425
    64,361 60,232 6.9 % 65,552
           
Non-current liabilities        
  Provisions 596 968 -38.4 % 634
  Deferred tax liabilities 1,171 1,794 -34.7 % 1,293
  Non interest bearing liabilities 2,509 2,342 7.1 % 2,414
  Interest bearing liabilities 360 1,102 -67.3 % 470
    4,636 6,206 -25.3 % 4,810
Current liabilities        
  Trade payables and other liabilities 29,800 30,142 -1.1 % 28,130
  Current tax payable 423 245 72.7 % 1,206
  Provisions 837 848 -1.3 % 832
  Interest bearing liabilities 23,776 26,607 -10.6 % 23,799
    54,836 57,842 -5.2 % 53,967
           
Total shareholder's equity and liabilities 123,833 124,280 -0.4 % 124,329

  

CONSOLIDATED CASH FLOW STATEMENT (tEUR) 1-6/
2014
1-6/
2013
Change %  1-12/
2013
Cash flows from operating activities        
  Profit for the period 1,824 3,058 -40.4 % 8,147
  Adjustments 2,874 3,794 -24.2 % 7,608
  Interest and other financial expenses and incomes -217 -185 17.5 % -403
  Paid Taxes -1,415 -2,927 -51.7 % -3,402
  Change in working capital -1,296 588 n/a -1,989
Cash flow from operating activities 1,770 4,328 -59.1 % 9,961
Cash flow from investing activities        
  A conditional supplementary contract price for prior subsidiary acquisitions 0 -2,576 n/a -2,585
  Purchases of property, plant and equipment (PPE) -816 -400 104.0 % -1,180
  Purchases of intangible assets -614 -586 4.8 % -1,442
  Acquisition of subsidiary, net of cash acquired 0 -965 n/a -965
  Acquisition of assets available for sale -136 0 n/a 0
Net cash used in investing activities -1,566 -4,527 -65.4 % -6,172
Cash flow from financing activities        
  Proceeds from borrowings 0 5,000 n/a 5,000
  Payments of borrowings -177 -821 -78.4 % -4,178
  Dividends paid -3,462 -2,962 16.9 % -2,962
  Proceeds from issuance of ordinary shares 497 0 n/a 270
Net cash used in financing activities -3,142 1,217 n/a -1,870
           
Change in cash        
  Cash in the beginning 15,229 13,880 9.7 % 13,880
  Change in cash during period -2,938 1,018 n/a 1,919
  Effect of currency changes -49 -328 -85.1 % -571
  Cash at the end 12,242 14,570 -16.0 % 15,229

  

KEY FIGURES 1-6/
2014
1-6/
2013
Change %  1-12/
2013
  Earnings per share, EUR 0.10 0.18 -40.4 % 0.47
  Earnings per share fully diluted, EUR 0.10 0.17 -40.4 % 0.46
  Shareholders' equity per share, EUR 3.59 3.43 4.7 % 3.73
           
  Return on equity 5.6 % 10.1 % -44.7 % 12.9 %
  Return on capital employed 6.0 % 10.4 % -42.0 % 13.0 %
  Equity ratio 52.0 % 48.5 % 7.3 % 52.7 %
  Gearing 18.2 % 21.8 % -16.5 % 13.8 %
           
  Investments, tEUR 1,549 4,637 -66.6 % 6,313
  Investments % of net sales 1.7 % 5.0 %   3.3 %
  Order backlog, tEUR 17,402 12,331 41.1 % 13,100
  Personnel, average 1,275 1,336 -4.6 % 1,306
           
  Average number of shares (thousands) 18,897 18,729 0.9 % 18,744
    including own shares        
  Highest share price, EUR 4.86 4.47 8.7 % 4.47
  Lowest share price, EUR 4.25 3.78 12.4 % 3.78
  Average share price, EUR 4.52 4.14 9.3 % 4.17
           
  Turnover, in million shares 1.3 1.3 -1.5 % 2.2
  Turnover, in MEUR 5.9 5.6 5.6 % 9.2
           
Treasury shares        
    Number
of shares
  % of
shares
% of
votes
           
  Possession of company's own shares 30.6.2014 1,189,654   6.27 % 6.27 %
           
Contingent liabilities and pledged assets (tEUR)
           
Leasing and rent liabilities 5,711 7,194 -20.6 % 6,748
           
Derivative instruments (tEUR)        
  Value of underlying forward contracts 6,748 8,288 -18.6 % 7,633
  Market value of forward contracts -159 158 n/a -209
  Interest rate swap 11,000 11,000 0.0 % 11,000
  Market value of interest swap -5 29 n/a -6
           
Taxes are computed on the basis of the tax on the profit for the period.

  

OPERATING SEGMENTS (tEUR)  1-6/
2014
 1-6/
2013
Change %  1-12/
2013
 
Video and Broadband Solutions
  Orders received 52,794 44,769 17.9 % 97,815
  Net sales 48,492 49,438 -1.9 % 101,716
  EBIT 2,635 4,744 -44.5 % 9,460
  EBIT% 5.4 % 9.6 %   9.3 %
 
Network Services
  Orders received 44,453 42,816 3.8 % 91,060
  Net sales 44,453 42,816 3.8 % 91,060
  EBIT 38 -404 n/a 1,587
  EBIT% 0.1 % -0.9 %   1.7 %
 
Total
  Orders received 97,247 87,585 11.0 % 188,875
  Net sales 92,945 92,254 0.7 % 192,776
  EBIT 2,673 4,340 -38.4 % 11,047
  EBIT% 2.9 % 4.7 %   5.7 %
  Financial items -217 -185 17.5 % -386
  Operating segments net profit before taxes 2,456 4,155 -40.9 % 10,660

  

Information per quarter (tEUR)  4-6/14  1-3/14  10-12/13  7-9/13  4-6/13  7/2013-
  6/2014
 
Video and Broadband Solutions
  Orders received 27,898 24,896 24,127 28,919 23,350 105,840
  Net sales 27,007 21,485 28,020 24,258 25,625 100,770
  EBIT 1,835 801 2,354 2,362 2,308 7,352
  EBIT % 6.8 % 3.7 % 8.4 % 9.7 % 9.0 % 7.3 %
 
Network Services
  Orders received 22,405 22,048 26,024 22,220 20,870 92,697
  Net sales 22,405 22,048 26,024 22,220 20,870 92,697
  EBIT -452 490 1,168 823 -570 2,029
  EBIT % -2.0 % 2.2 % 4.5 % 3.7 % -2.7 % 2.2 %
 
Total
  Orders received 50,303 46,944 50,151 51,139 44,220 198,537
  Net sales 49,412 43,533 54,044 46,478 46,495 193,467
  EBIT 1,383 1,291 3,522 3,185 1,738 9,381
  EBIT % 2.8 % 3.0 % 6.5 % 6.9 % 3.7 % 4.8 %

  

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 1.1.2014 6,967 1,504 126 53,079 3,457 -6 65,127 425 65,552
Total comprehensive income for the period     -49 1,824   1 1,776   1,776
Used options         497   497   497
Paid dividend       -3,564     -3,564 102 -3,462
Interest, non controll party       39     39 -39 0
Equity-settled share-based payments       0 0 0 0 0 0
Shareholder's equity 30.6.2014 6,967 1,504 77 51,378 3,954 -5 63,875 488 64,361
                     
Shareholder's equity 1.1.2013 6,967 1,504 685 48,007 2,737 -22 59,878 678 60,557
Total comprehensive income for the period     -471 3,058   51 2,638 0 2,638
Paid dividend       -3,119     -3,119 157 -2,962
Interest, non controll party       34     34 -34 0
Equity-settled share-based payments         376   376 -376 0
Shareholder's equity 30.6.2013 6,967 1,504 214 47,980 3,113 29 59,807 425 60,232

  

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 30.6.2014 Number of shares % of share capital
     
EM Group Oy 4,409,712 23.23
Mandatum Life Insurance Company Limited 1,679,200 8.84
Ilmarinen Mutual Pension Insurance Company 953,854 5.02
Kaleva Mutual Insurance Company 824,641 4.34
Teleste Oyj 647,654 3.41
OP-Finland Small Firms Fund 630,712 3.32
Teleste Management II Oy 542,000 2.85
Varma Mutual Pension Insurance Company 521,150 2.74
The State Pension Fund 500,000 2.63
FIM Fenno Sijoitusrahasto 271,288 1.43

 

 

Shareholders by sector 30.6.2014 Number of shareholders % of Owners Number of shares Number of shares %
         
Households 4,694 92.91 4,643,053 24.5
Public sector institutions 4 0.08 1,990,004 10.5
Financial and insurance institutions 18 0.36 3,831,929 20.2
Corporations 268 5.30 7,234,769 38.1
Non-profit institutions 30 0.59 372,171 2.0
Foreign and nominee registered owners 38 0.75 913,662 4.8
Total 5,052 100.00 18,985,588 100.0

  

 
 
 
Number of shares 30.6.2014
 
 
 
Number of shareholders
 
 
 
% of shareholders
 
 
 
Number of shares
 
 
 
% of shares
         
1 - 100 1,104 21.9 74,892 0.4
101 - 500 2,192 43.4 594,056 3.1
501 – 1,000 800 15.8 661,296 3.5
1,001 – 5,000 768 15.2 1,692,602 8.9
5,001 – 10,000 89 1.8 637,271 3.4
10,001 – 50,000 72 1.4 1,412,603 7.4
50,001 – 100,000 4 0.1 360,131 1.9
100,001 – 500,000 15 0.3 3,343,814 17.6
500,001 - 8 0.2 10,208,923 53.8
Total 5,052 100 18,985,588 100
of which nominee registered     770,312 4.1

 

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


DISTRIBUTION:
NASDAQ OMX Helsinki
Main Media

www.teleste.com