News
Interim report for the period 1 January - 31 March 2010
Ixonos' operations continued on the growth track of late 2009
The review period in brief
- Turnover for the review period was EUR 20.5 million (2009: EUR 17.4 million), a change of 17.7 per cent.
- Operating profit was EUR 0.6 million (2009: EUR 0.0 million), 2.7 per cent of turnover.
- Net profit was EUR 0.3 million (2009: EUR -0.2 million), 1.3 per cent of turnover.
- Earnings per share were EUR 0.03 (2009: EUR -0.03).
- Diluted earnings per share were EUR 0.03 (2009: EUR -0.03).
- Net cash flow from operating activities was EUR -2.0 million (2009: EUR 0.2 million).
Future prospects in brief
- Turnover in the second quarter of this year is forecast to substantially surpass turnover for the corresponding period last year. Operating profit for the second quarter is envisaged to be at least at the same level as in the previous year.
- Turnover for the entire year is predicted to clearly exceed that of the previous year. Operating profit for the entire year is forecast to be clearly positive.
Kari Happonen, President and CEO:
Following the economic recession that marked 2009, general demand for ICT services is now on a path of moderate growth. In the first quarter of this year, demand for Ixonos' services has also continued the growth that recommenced at the end of last year. The tight market situation in Finland has nevertheless affected the company's profitability, which has not yet risen to its normal level.
The Mobile Terminals & Software business area, which provides R&D services for mobile terminal devices and their software, has succeeded in further boosting its turnover as well as in maintaining moderate profitability. We anticipate the unit to continue its growth throughout this year. Projects involving design of complete mobile devices are being carried out in the Jyväskylä product development centre that was established in autumn 2009. These projects accelerate the growth of the segment's business operations.
The Media & Communities business area develops device-independent Internet services related to the delivery of digital media as well as to social network communication. This business area has recovered from last year's temporary reduction in turnover. The decrease had been caused by certain long-term customer projects ending. Now, the segment's turnover has continued the growth that began in the third quarter of 2009. We also expect the unit to grow strongly in the following quarters this year.
The Business Solutions area, which provides development and implementation of online services in telecommunication, finance, and public administration, has continued to suffer from the difficult market situation in Finland. The unit's turnover in the first quarter decreased from the previous year's level and operations continued to show a loss. A rationalisation program has been launched in the business area and is expected to improve the unit's profitability from the second quarter of this year. The program seeks to achieve some EUR 1 million in annual savings. The profitability of the unit is expected to reach a reasonable level in the last part of the year.
According to market forecasts by research institutes, Finland's ICT market will see a slight upswing this year. The global market is expected to grow clearly faster than the Finnish market. We expect that the volume of the Group's business will continue to grow and that profitability will develop favourably during the year.
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