Tecnotree Corporation Short Report 1 January – 31 March 2016 (unaudited)
Tecnotree Corporation
Short Report
27 April, 2016 at 08.30 am EEST
According to the Finnish Securities Market Act, chapter 7, sections 10 and 11, listed companies are obliged to publish a half-year report of the first six months of the fiscal year. However, as from 2016 it is no longer obligatory to publish interim reports after three months and nine months. Tecnotree announced on 26 November 2015 that it would publish summary versions of the 1-3/2016 and 1-9/2016 reports, which would contain the figures for the period with a short commentary on them and a summary of the events in the period. This is therefore not an interim report as defined in IAS 34.
Tecnotree is a global supplier of telecom IT solutions, providing products and services for charging, billing, customer care, and messaging and content services. The company’s product portfolio comprises virtually the full range of business management systems for telecom operators, with standard solutions for fixed networks, mobile services and broad band and for managing subscriptions, services and cash flows for prepaid and post-paid customers. Tecnotree has a strong footing especially in developing markets.
FIRST QUARTER WITH CURRENCY FLUCTUATIONS
1 Adjusted operating result = operating result before one-time costs. Details of these are given in the Short Report section “Result analysis”.
2 Adjusted result for the period = result for the period without exchange rate gains and losses that are included in financial items and mainly arise on receivables due to subsidiaries from the parent company.
Unless otherwise stated, all figures presented below are for the review period 1-3/2016 and the figures for comparison are for the corresponding period 1-3/2015.
Interim CEO Padma Ravichander
“Looking at the figures without the impact of the entries for currency exchange differences, the operating result for the first quarter of 2016 was EUR 1.0 million better than in the corresponding quarter in the previous year. Last year at this time currency exchange gains totalling EUR 3.3 million were recorded in net sales and the result, mainly due to the strengthening of the US dollar. This year currency exchange losses of EUR 1.1 million were recorded, so these figures had an impact of EUR 4.4 million when comparing the results.
The cash flow after investments for the quarter was EUR 1.9 million negative. A major factor in this was the large customer payments made in the final quarter of last year, which resulted in the cash flow after investments in that quarter being EUR 4.4 million positive.
The most important single event in the first quarter for Tecnotree was the draft restructuring programme filed by the Administrator with the court on 30 March 2016. This reduces the uncertainty surrounding the issue and clarifies the company’s situation. If the draft is approved, the Group’s debt will be cut by EUR 5.6 million and EUR 1.6 million of recognized interest costs will be cancelled.
Tecnotree won two major new orders during the quarter. Tecnotree agreed with the Ukkoverkot company in Finland to supply the BSS Express system as a cloud service. This will provide Ukkoverkot’s key business support functions, such as the sales interface, customer care, billing and product management. Tecnotree supplied the Convergent Billing Platform to a West African operator. The solution will significantly improve efficiency in managing the life cycle of 60 million customers thanks to the Tecnotree Unified Product Catalogue application.”
EVENTS AFTER THE END OF THE PERIOD
Tecnotree appointed Executive Vice President MEA & APAC Padma Ravichander as interim CEO as from 18 April 2016. As part of these arrangements Harri Koponen took on the role of Executive Chairman.
PROSPECTS IN 2015
Tecnotree believes that the filing of its draft debt restructuring plan in early 2016, along with its continued focus on cost, product renewal and better serving its customers will give the company a solid base to continue to improve both its operating efficiency and addressable revenue opportunities. However, Tecnotree does not provide an annual outlook for 2016 due to several uncertainty factors having impact on customer investments. These uncertainty factors relate to a strengthening dollar as well as the softening macroeconomic environment and political instability in some of its key markets in Latin America, the Middle East and Africa.
As in previous years, variations in the quarterly figures are estimated to be considerable.
FINANCIAL INFORMATION
Tecnotree is holding a conference for analysts, investors and the media to present its first quarter result on 27 April 2016 at 10.00 am in the Tapiola conference room at the Scandic Hotel Simonkenttä, Simonkatu 9, Helsinki. The result will be presented by Interim CEO Padma Ravichander and the conference will be held in English. The material to be presented at the press conference will be available at www.tecnotree.com.
TECNOTREE CORPORATION
Board of Directors
FURTHER INFORMATION
Mrs. Padma Ravichander, Interim CEO, tel. +97 156 414 1420
Mr. Tuomas Wegelius, CFO, tel. +358 400 433 228
DISTRIBUTION
Nasdaq Helsinki
Main media
www.tecnotree.com
About Tecnotree
Tecnotree is a global provider of telecom IT solutions for the management of products, customers and revenue. Tecnotree helps communications service providers to transform their business towards a marketplace of digital services. Tecnotree empowers service providers to monetise on service bundles, provide personalised user experiences and augment value throughout the customer lifecycle. With around 1000 telecom experts, Tecnotree serves around 90 service providers in around 70 countries. Tecnotree is listed on the main list of NASDAQ Helsinki with the trading code TEM1V. For more information on Tecnotree, please visit www.tecnotree.com
