Distribution of company announcements to the professional platforms, finance portals and syndication of important corporate news to a wide variety of news aggregators and financial news systems.
Aldata Solution Oyj (HEL:ALD1V) Aldata Solution Oyj STOCK EXCHANGE RELEASE 6 November 2008 at 9.00 a.m. (EET)
ALDATA SOLUTION INTERIM REPORT JANUARY - SEPTEMBER 2008
Aldata in Q3 2008 (compared to Q3 2007)
* Net sales decreased by 5.6% to EUR 15.7 million (EUR 16.6 million).
* Gross profit decreased by 0.7% to EUR 14.0 million (EUR 14.1 million).
* Operating profit, EBIT, increased to EUR 0.1 million (EUR -1.8 million).
* Profit before taxes was EUR 0.6 million (EUR -2.0 million).
* Net profit was EUR 0.5 million (EUR -1.9 million) and earnings per share, EPS, were 0.007 EUR (-0.027 EUR).
Aldata in January - September 2008 (compared to January - September 2007)
* Net sales were EUR 52.8 million (EUR 54.1 million).
* Gross profit was EUR 46.5 million (EUR 44.5 million) and EBITDA was EUR 3.6 million (EUR -4.3 million).
* Operating profit, EBIT, was EUR 2.5 million (EUR -5.3 million) and profit before taxes was EUR 2.4 million (EUR -5.6 million).
* Net profit was EUR 2.1 million (EUR -5.7 million) and earnings per share, EPS, were 0.030 EUR (-0.083 EUR).
* The Company has decided to update its guidance for 2008. The Company now expects full-year net sales of EUR 70 to 73 million and an EBIT of EUR 3.0 to 4.5 million.
Message from CEO Bertrand Sciard
"Aldata delivered a profitable result in Q3 2008, a traditionally weak sales quarter. This was a good achievement in a period where the global financial crisis had a significant impact on customer decisions towards the quarter end.
The efficiencies and flexibilities built into our business in the first half of the year proved their worth in Q3 as our sales income tightened and customers concerns grew over market conditions. New customers continued to choose Aldata over our competitors and we delivered significant customer "go-live" projects during the quarter, as well as completing the first acquisition in our planned M&A strategy.
New deals included the prestigious Maison du Chocolat global retail chain based in France, Trinkgut a German beverages distributor, new Syngenta sites in Spain and South Africa, and M.H. Alshaya Co., a fast growing retailer which operates multiple franchises in the Middle East.
The retail market, along with most others, is now suffering from the macro-economic effects of global credit restrictions. Retail companies are facing steep declines in consumer confidence in all regions and higher financing costs so all projects are under close scrutiny. The food and grocery sector, Aldata's core market, is less affected than the more volatile discretionary goods and apparel retailers but new levels of operational efficiencies are required to survive this downturn.
As announced at our recent American Customer meeting in Atlanta, Aldata is focused on helping our customers through these difficult times with new product and service offerings specifically designed to bring down their costs, increase efficiency, and retain their customers' business.
Our acquisition of Terraventum Oy in September is a case in point. We can now provide Aldata clients with improved customer retention via targeted loyalty marketing and digital communications to deepen relations and grow sales. We will also gain new retail customers in the hospitality, restaurant and leisure sectors where Terraventum has had its existing success.
In these times of major economic change Aldata will remain focused on its core retail and finished goods supply chain markets. We will continue to improve our internal flexibility and efficiencies, build strategic alliances with industry leaders to expand our presence, and drive our strategic M&A activity to secure the best products and people to grow profitable market share.
Customers are continuing to spend on our products, but the economic and business environment is uncertain. Our balance sheet is strong, our business model is flexible and we are focusing on protecting our operating margins and earnings."
July - September 2008 financial performance
The Group's net sales were EUR 15.7 million (EUR 16.6 million), which represents a decline of EUR 0.9 million compared to third quarter net sales in the previous year. Product sales, which include licences for standard products, licences for customer specific developments, and maintenance revenues, accounted for 54% (38%) of total net sales. Consulting services accounted for 42% (50%), and third party licences and hardware accounted for 4% (12%).
The Group's gross profit was EUR 14.0 million (EUR 14.1 million), which represents an 89% (85%) gross margin. Operating profit, EBIT, totalled EUR 0.1 million (EUR -1.8 million) and operating profit excluding expenses for option plans was EUR 0.3 million (EUR -1.7 million).
Pre-tax profit was EUR 0.6 million (EUR -2.0 million), net profit was EUR 0.5 million (EUR -1.9 million) and earnings per share, EPS, were 0.007 EUR (-0.027 EUR).
Research and development costs in the third quarter totaled EUR 1.7 million (EUR 2.4 million), of which EUR 0.3 million (EUR 0.2 million) or 19.3% were capitalized. EUR 0.1 million (EUR 0.1 million) of capitalized development costs were amortized.
Aldata's reported order backlog includes product and third party product sales that will be recognized as revenues during the following twelve months. At the end of September 2008, the order backlog was EUR 19.8 million (EUR 19.4 million at the end of September 2007 and EUR 20.0 million at the end of June 2008).
Business units in Q3
Net sales of the Supply Chain Management (SCM) Software business unit were EUR 12.7 million (EUR 12.4 million). The gross profit was EUR 11.9 million (EUR 11.4 million) and the operating profit, EBIT, was EUR -0.2 million (EUR -1.4 million).
Net sales of the In-Store Software business unit were EUR 3.0 million (EUR 4.2 million). The gross profit was EUR 2.6 million (EUR 2.7 million) and the operating profit, EBIT, was EUR 1.2 (EUR 0.3) million.
There were no internal sales between the Group's business segments. Unallocated costs, the Group's shared items netted, decreased the Group's operating profit, EBIT, by EUR 0.9 million (EUR 0.6 million).
January - September 2008 financial performance
The Group's net sales were EUR 52.8 million (EUR 54.1 million), which represents a decline of EUR 1.3 million compared to first three quarters net sales in the previous year. Product sales, which include licences for standard products, licences for customer specific developments and maintenance revenues, accounted for 48% (41%) of total net sales. Consulting services accounted for 45% (49%) and third party licences and hardware accounted for 7% (10%).
The Group's gross profit was EUR 46.5 million (EUR 44.5 million), which represents a 88% (82%) gross margin. Operating profit, EBIT, totaled EUR 2.5 million (EUR -5.3 million) and operating profit excluding expenses for option plans was EUR 2.9 million (EUR -4.9 million).
Pre-tax profit was EUR 2.4 million (EUR -5.6 million), net profit was EUR 2.1 million (EUR -5.7 million) and earnings per share, EPS, were 0.030 EUR (-0.083 EUR).
Research and development costs in the financial period totaled EUR 5.8 million (EUR 7.9 million), of which EUR 0.8 million (EUR 0.7 million) or 14.7% were capitalized. EUR 0.4 million (EUR 0.3 million) of capitalized development costs were amortized.
Taxes for the period were EUR 0.2 million (EUR 0.1 million).
Business units in January - September
Net sales of the Supply Chain Management (SCM) Software business unit were EUR 42.5 million (EUR 42.6 million). The gross profit was EUR 38.5 million (EUR 36.6 million) and the operating profit, EBIT, was EUR 1.2 million (EUR -4.2 million).
Net sales of the In-Store Software business unit were EUR 10.3 million (EUR 11.5 million). The gross profit was EUR 8.5 million (EUR 7.9 million) and the operating profit, EBIT, was EUR 3.4 (EUR 0.1) million.
There were no internal sales between the Group's business segments. Unallocated costs, the Group's shared items netted, decreased the Group's operating profit, EBIT, by EUR 2.1 million (EUR 1.1 million).
Finance and investments
Cash flow from operating activities in the first three quarters of the year was EUR 4.4 million (EUR -0.9 million) and net cash flow was EUR -0.3 million (EUR 2.0 million).
At the end of September 2008, Aldata Group's cash, cash equivalents and marketable securities amounted to EUR 8.8 million (EUR 7.7 million) and total assets were EUR 50.7 million (EUR 50.4 million). The Group had interest-bearing debt EUR 1.5 million (EUR 3.5 million) and interest-bearing net liabilities totaled EUR -6.7 million (EUR -3.2 million). Short term receivables totaled EUR 26.4 million (EUR 27.4 million). The Group's solvency ratio was 45.1% (51.0 %), gearing was -29.8% (-12.7%), and shareholders' equity per share was 0.324 EUR (EUR 0.369).
The Group's capital expenditure on hardware and software purchases amounted to EUR 1.7 million (EUR 1.9 million) in the first three quarters of the year. A total of EUR 0.8 million (EUR 0.7 million) of development costs were capitalized during the period.
Research and Development
Aldata's research and development costs were EUR 5.8 million (EUR 7.9 million) and made up 10.9% (14.6%) of net sales. A total of EUR 0.8 million (EUR 0.7 million) of development costs were capitalized during the period. EUR 0.4 million (EUR 0.3 million) of capitalized development costs were amortized.
At the end of the review period 151 (177) employees were involved in R&D activities. This represents 28% (29%) of the Group's total personnel. Aldata's R&D centres are located in Paris, France and in Vantaa, Finland.
Personnel
Aldata Group employed 540 (616) persons at the end of September 2008, and on average had 539 (630) employees during the period.
30 September 2008 30 September 2006 By business unit Persons % Persons % SCM Software 446 83 495 80 In-Store Software 82 15 110 18 Group Administration 12 2 11 2 Total 540 100 616 100
Approximately 55% of personnel were employed by Aldata companies in France, 14% in Finland, 11% in Germany, 6% in the US, 5% in Sweden, 4% in Slovenia, 3% in the UK and 2% in Russia.
Share performance
The highest price of the Aldata Solution Oyj share during January - September 2008 was EUR 1.25 and the lowest price EUR 0.90. The average price was EUR 1.02 and the closing price EUR 0.97. The trading volume on the Helsinki Stock Exchange was EUR 26.1 million and altogether 25.6 million shares were traded, which represents 37% of the shares. Aldata Solution Oyj has 68.7 million shares outstanding. The number of shares outstanding has increased by 457.900 shares during the period.
The number of shareholders was 4.340 and the free float was 100% of the share capital at the end of September 2008. A total of 43.3% of Aldata Solution Oyj's shares were owned by foreign investors at the end of the period.
Risks and uncertainty factors
Risks and uncertainty factors associated with Aldata's business are mainly related to the market and competitive situation and general economic development. The global economic conditions have significantly deteriorated in the past few months and this combined with increased cost of financing for companies and steep declines in consumer confidence across all geographical regions has affected and will affect Aldata's operations. The Company has acted to the new economic environment in order to limit the risks associated with a weakening global economy.
A further worsening of the economic situation would effect in delays of large projects and investment decisions. Aldata is with its flexible business model and strong balance sheet prepared to take new actions, if the situation further worsens.
Outlook
The recent significant deterioration of global economic conditions has decreased the Company's visibility to its financial performance. Therefore, the Company has decided to update its guidance for 2008. The Company expects to generate in the fourth quarter net sales between EUR 17 to 20 million and an operating profit (EBIT) of EUR 0.5 to 2.0 million. This represents full-year net sales of EUR 70 to 73 million and an EBIT of EUR 3.0 to 4.5 million. In the previous outlook released on August 19, 2008 net sales was expected to grow compared to 2007 and the operating profit (EBIT) was expected to be at least EUR 6 million.
Helsinki, November 6, 2008
Aldata Solution Oyj
Board of Directors
Further information: Bertrand Sciard, President and CEO, tel. +358 10 820 8000 / Aldata Solution Oyj. Thomas Hoyer, CFO, tel. +358 10 820 8010 Aldata will hold a press conference for the media and financial analysts in Helsinki on 6 November, at 12.00 (EET) at the Palace Hotel (Eteläranta 10) in the Cabinet 3 on the 10th floor. The presentation material will be published on the Group's website at www.aldata-solution.com
Aldata 100% Retail-Wholesale At Aldata 100% of our business is dedicated to retail and wholesale business improvement. We provide our customers with modern, flexible and integrated software solutions specifically designed to increase productivity, performance and profitability. With over 24,000 successful installations across 52 countries, from convenience store to hypermarket, 480+ live warehouses and customers with 5 to 5,000 outlets, we consistently deliver the goods for retail and wholesale business improvement. Aldata Solution is a public company quoted on NASDAQ OMX Helsinki Ltd with the identifier ALD1V. More information at: www.aldata-solution.com.
Distribution: NASDAQ OMX Helsinki Ltd Media
TABLE PART
Calculation methods
This interim report has been prepared in accordance with IFRS standards and the same
accounting principles as in 2007 financial statements but the report does not comply
with all requirements of IAS 34, Interim Financial Reporting. The interim report is
unaudited.
CONSOLIDATED INCOME Change STATEMENT MEUR MEUR % MEUR Jan-Sep Jan-Sep Total /2008 /2007 2007
Net sales 52,8 54,1 -2,4 74,7 Other operating income 0,6 0,4 60,2 0,4 Operating expenses -49,9 -58,8 15,2 -84,8 Depreciations and impairments -1,1 -1,0 -9,9 -1,4 Operating profit 2,5 -5,3 146,8 -11,1 Financial items -0,1 -0,3 63,5 -0,6 Profit before taxes 2,4 -5,6 142,0 -11,7 Income taxes -0,2 -0,1 -177,4 0,0 Minority interest 0,0 0,0 -417,5 0,0 Profit for the financial period 2,1 -5,7 136,7 -11,7
Earnings per share, EUR 0,030 -0,083 -0,171 Earnings per share, EUR (EPS), adjusted for dilution effect 0,030 -0,083 -0,170
CONSOLIDATED BALANCE SHEET MEUR MEUR MEUR 30 Sep 30 Sep 31 Dec 2008 2007 2007
ASSETS NON-CURRENT ASSETS Goodwill 9,4 9,4 9,4 Capitalized development cost 2,6 1,8 2,2 Intangible assets 0,7 0,4 0,3 Tangible assets 1,3 1,7 1,6 Investments 0,1 0,0 0,0 Other long-term assets 0,1 0,7 0,1 Deferred tax assets 0,9 0,4 0,9 NON-CURRENT ASSETS TOTAL 15,2 14,6 14,6 CURRENT ASSETS Inventories 0,3 0,6 0,3 Short-term receivables 26,4 27,4 26,7 Cash and cash equivalents 8,8 7,7 9,1 CURRENT ASSETS TOTAL 35,5 35,7 36,7 ASSETS TOTAL 50,7 50,4 51,3
Share Share premium Translation Retained TEUR capital fund difference earnings Total
EQUITY 1.1.2006 674 17 002 -75 7 476 25 078
Translation difference 0 0 42 0 42 Result of the financial year 0 0 0 2 526 2 526 Total 0 0 42 2 526 2 568
Issue of share capital 6 1 143 0 0 1 149 Exercise of options 1 146 0 0 147 Share based payments recognised against equity 0 0 0 860 860 7 1 289 0 860 2 156
EQUITY 31.12.2006 681 18 291 -33 10 862 29 802 Translation difference 0 0 396 0 396 Result of the financial year 0 0 0 -11 729 -11 729 Total 0 0 396 -11 729 -11 333
Exercise of options 5 705 0 0 710 Share based payments recognised against equity 0 0 0 440 440 5 705 0 440 1 150
EQUITY 31.12.2007 686 18 996 363 -426 19 619
Translation difference 0 0 39 0 39 Result of the financial year 0 0 0 2 088 2 088 Total 0 0 39 2 088 2 127
Exercise of options 1 158 0 0 159 Share based payments recognised against equity 0 0 0 381 381 1 158 0 381 540
EQUITY 30.9.2008 687 19 154 402 2 043 22 286
CONSOLIDATED CASH FLOW STATEMENT MEUR MEUR MEUR Jan-Sep 2008 Jan-Sep 2007 Jan-Dec 2007 Cash flow from operating activities Operating result 2,5 -5,3 -11,1 Adjustment to operating result -0,2 1,1 6,8 Change in working capital 1,5 4,0 4,8 Interest received and other financial income 0,3 0,1 0,2 Interest paid and other financial expenses -0,2 -0,1 -0,2 Taxes paid 0,5 -0,7 -0,8 Net cash from operating activities 4,4 -0,9 -0,4
Cash flow from investing activities Group companies acquired -0,3 0,0 0,0
Investments in tangible and intangible assets -1,1 -1,3 -1,8 Net cash used in investing activities -1,4 -1,3 -1,8
Cash flow before financing activities 3,0 -2,1 -2,2
Cash flow from financing activities Long-term loans, repayments 0,0 -0,1 -0,1 Short term loans, received 0,2 3,5 5,0 Share issue -3,7 0,0 0,0 Net cash used in financing activities 0,2 0,7 0,7 -3,3 4,2 5,7 Net cash flow, total -0,3 2,0 3,5 Change in cash and cash equivalents Cash and cash equivalents at the beginning of period -0,3 2,0 3,5 Cash and cash equivalents at the end of period 9,1 5,7 5,7 8,8 7,7 9,1
NOTES TO THE INTERIM REPORT
COMMITMENTS AND CONTINGENCIES MEUR MEUR MEUR 30 Sep 2008 30 Sep 2007 31 Dec 2007
Loans from financial institutions 1,5 3,5 5,0 Mortages 5,4 5,4 5,4 Leasing liabilities 11,5 14,6 10,7 Guarantees on behalf of company debt 0,1 0,1 0,1
KEY FIGURES, MEUR Jan-Sep /2008 Jan-Sep /2007 Total 2007
Scope of Operations Net sales, MEUR 52,8 54,1 74,7 Average number of personnel 539 630 625
Profitability Operating profit , MEUR 2,5 -5,3 -11,1 Operating profit, % of net sales 4,7 -9,8 -14,9 Profit before taxes and minority interest, MEUR 2,4 -5,6 -11,7 Profit before taxes and minority interest, % of net sales 4,5 -10,4 -15,7 Return on equity, % (ROE) 13,4 -27,5 -47,4 Return on investment, % (ROI) 18,7 -21,7 -37,8
Financial Standing Quick ratio 1,3 1,5 1,3 Current ratio 1,4 1,6 1,3 Equity ratio, % 45,1 51,0 38,6 Interest-bearing net debt, MEUR -6,7 -3,2 -3,3 Gearing, % -29,8 -12,7 -16,6
Per Share Data Earnings per share, EUR (EPS) 0,030 -0,083 -0,171 Earnings per share, EUR (EPS), adjusted for dilution effect 0,030 -0,083 -0,170 Shareholders' equity per share, EUR 0,324 0,369 0,286
SEGMENT INFORMATION, MEUR
BUSINESS SEGMENTS Jan-Sep/2008 Jan-Sep/2007 Jan-Dec/2007
Net sales to external customers Supply Chain Management Software 42,5 42,6 58,1 In-Store Software 10,3 11,5 16,6 Total 52,8 54,1 74,7
Unallocated items -2,1 -1,1 -2,7 Operating profit 2,5 -5,3 -11,1 Financial income and expenses -0,1 -0,3 -0,6 Result before taxes and minority interest 2,4 -5,6 -11,7 Taxes -0,2 -0,1 0,0 Minority interest 0,0 0,0 0,0 Result from continuing operations 2,1 -5,7 -11,7 Result for the financial period 2,1 -5,7 -11,7
INCOME STATEMENT MEUR MEUR MEUR MEUR MEUR QUARTERLY FIGURES Q3/2008 Q2/2008 Q1/2008 Q4/2007 Q3/2007
Net sales 15,7 18,0 19,1 20,6 16,6 Other operating income 0,2 0,1 0,3 0,0 0,1 Operating expenses -15,4 -16,6 -17,9 -26,0 -18,2 Depreciations and impairments -0,4 -0,4 -0,3 -0,4 -0,4 Operating profit 0,1 1,2 1,1 -5,8 -1,8 Financial items 0,4 0,0 -0,6 -0,3 -0,2 Profit before taxes 0,6 1,2 0,6 -6,1 -2,0 Income taxes -0,1 -0,1 -0,1 0,1 0,1 Minority interest 0,0 0,0 0,0 0,0 0,0 Profit for the financial period 0,5 1,1 0,5 -6,0 -1,9
INCOME STATEMENT MEUR MEUR MEUR MEUR MEUR CUMULATIVE 1-9/08 1-6/08 1-3/08 1-12/07 1-9/07
Net sales 52,8 37,1 19,1 74,7 54,1 Other operating income 0,6 0,4 0,3 0,4 0,4 Operating expenses -49,9 -34,5 -17,9 -84,8 -58,8 Depreciations and impairments -1,1 -0,7 -0,3 -1,4 -1,0 Operating profit 2,5 2,3 1,1 -11,1 -5,3 Financial items -0,1 -0,6 -0,6 -0,6 -0,3 Profit before taxes 2,4 1,8 0,6 -11,7 -5,6 Income taxes -0,2 -0,2 -0,1 0,0 -0,1 Minority interest 0,0 0,0 0,0 0,0 0,0 Profit for the financial period 2,1 1,6 0,5 -11,7 -5,7
BALANCE SHEET MEUR MEUR MEUR MEUR MEUR 30.9.08 30.6.08 31.3.08 31.12.07 30.9.07
