We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Name | Symbol | Market | Type |
|---|---|---|---|
| Nets Trust | AMEX:ITL | AMEX | Fund |
| Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
Hot Features
Premium
RNS Number:9769H
Intec Telecom Systems PLC
26 February 2003
Intec Telecom Systems PLC
Unaudited results for the three months ended 31st December 2002 - 'Q1 2003'
Intec delivers increased EBITDA and positive operating cash flow of #1.3 million
Intec Telecom Systems PLC ("Intec" or "the Company"), a leading provider of
telecoms Operations Support Systems ("OSS"), is pleased to announce its
unaudited results for the three months ended 31 December 2002, ("Q1"). Despite
normal quarterly fluctuations, both EBITDA profit and positive cashflow targets
have been met, and the Board remains cautiously confident of meeting
expectations for the full year. Intec also concluded the successful acquisition
of its largest interconnect competitor - Ericsson's 'Settler' business unit - in
the period.
HIGHLIGHTS
- Turnover of #10.4 million within management expectations (3 months ended 31
December 2001 - #10.9 million) despite quarterly fluctuations.
- Substantial increase in earnings before interest, tax, depreciation, and
amortisation ("EBITDA") of #463,000 compared to Q1 2002 - #33,000.
- Positive operating cash inflow of #1.3 million (Q1 2002 - outflow of #2.0
million) - the fourth sequential cashflow positive quarter.
- Loss before tax was #1.5 million (Q1 2002: loss of #1.8 million), after
depreciation and amortisation of goodwill and intangible assets of
#2.1 million (Q1 2002: #1.7 million).
- 42 new name customers, including 31 from the acquisition of Settler business
in Sweden.
- 61 new contracted installations, comprising 9 new InterconnecT family
licences, 3 new Inter-mediatE licences, and 49 from acquisition of the Settler
business.
- Intec remains fully-funded with cash and cash equivalent investments of #11.3
million after full payment for recent Ericsson acquisition.
- Successful acquisition of largest interconnect competitor - Ericsson's '
Settler' business unit.
"Intec has delivered another solid, on-target first quarter within an industry
that continues to be very competitive," said Intec's Executive Chairman, Mike
Frayne. "Our strategy of investment properly balanced against revenues, combined
with very good cost control, has allowed us to deliver substantially improved
EBITDA earnings and positive operating cash flow, despite expected quarterly
revenue fluctuations and intense competition for new business. Although the
business environment is still very challenging, we are cautiously confident that
the full year will yield results consistent with expectations."
"The first quarter is typically difficult to close new business, particularly as
it included a lengthy Christmas and New Year break. Intec's ability to deliver
revenues within a few percent of expectations and EBITDA and cash flow that were
substantially up on last year, particularly in a highly competitive business
climate, is therefore very pleasing," added Chief Executive Kevin Adams. "Our
product set and customer base has been strengthened with the acquisition of the
Ericsson Settler business, and we see many benefits from this going forward."
For further information:
Kevin Adams, CEO
Intec Telecom Systems PLC
+44 (0) 1483 745800
kevin.adams@intec-telecom-systems.com
Andrew Rodaway
Intec Telecom Systems PLC
+44 (0) 7768 808082
andrew.rodaway@intec-telecom-systems.com
Cubitt Consulting
Fergus Wylie/Sarah Brydon
+44 (0) 20 7367 5100
fergus.wylie@cubitt.com
Chairman's and CEO's Statement
Intec Telecom Systems PLC - 1st Quarter Results 2003
Overview
The telecoms industry continues to be a very competitive market for its
suppliers. Despite this, and the normal quarterly fluctations expected in new
business revenues, Intec has achieved another solid result in the first quarter
of its 2003 financial year. Although turnover this quarter was towards the low
end of our range of expectations, we have substantially increased EBITDA profit
over the prior equivalent period, indicating that our policy of ongoing
investment in balance with actual revenue is working well. We were also once
again operating cashflow positive, the fourth successive quarter where this has
been achieved. During the quarter we also completed the acquisition of
Ericsson's 'Settler' interconnect business unit, historically our major
competitor, bringing us clear market share leadership.
Operational highlights
Intec gained eleven new customers in the quarter from existing operations and
thirty one new customers from its acquisition of the Ericsson 'Settler' business
unit. In addition, two existing US customers placed substantial orders for
additional product licences. Included in the figures for sales from existing
operations are nine new InterconnecT family sales (primarily InterconnecT CABS
CG customers) and three new Inter-mediatE licences. Our InterconnecT CABS
division had a successful quarter, adding numerous new customers. We have
invested in our Dallas-based CABS processing centre to allow for present and
future expansion in workload, and we are seeing a pleasing increase in business
from larger customers, as they recognise the benefits of high-quality,
outsourced CABS processing.
In EMEA Intec signed a new support services contract worth almost #1 million per
annum with a mobile sector customer with operations in several countries. In the
CALA region Intec concluded a very substantial deal in Venezuela for
InterconnecT, and another contract worth almost US$1 million for services and
licence upgrades with a Caribbean organisation. In the US we won several
important new InterconnecT CABS CG customers, signed two new mediation
customers, and extended licence agreements with two more. In Asia Pacific we
make an important breakthrough in China, when we were formally selected to
provide software to our first customer in the mainland region, an agreement
which was signed just after the quarter end.
Intec held an exceptionally successful User Group event in London in the
quarter, attended by over 200 customer, partner and Intec delegates. This was a
substantially larger event than the previous year, which was particularly
gratifying given the current economic climate and the close focus on costs by
our customers. Intec's User Groups continue to be an important driver of product
direction and marketplace information.
Products
During 2002 Intec undertook a major review of its Product Operations division,
as part of a larger, ongoing programme to achieve greater business efficiency
and continual improvement in competitiveness. Intec has developed rapidly since
it became a public company in June 2000, changing from a single-product company
to a global OSS business with numerous offerings. This is a core part of our
strategy, and has played a major role in helping us to achieve good growth in an
industry which has been substantially affected by sector problems.
However, maintaining a larger and fast-developing product portfolio is a
considerable challenge, with the potential for costs to grow beyond our ability
to generate equivalent revenues, if not carefully managed. Our aim with our
product review has therefore been to focus on those product developments which
we see have the best business potential, and also to rationalise our product
branding and marketing strategies in parallel.
Intec now offers its customers products from two core families: revenue
generation, and network-facing systems. In the network-facing group the
principal offerings are Inter-mediatE for carrier-grade, convergent mediation;
and Inter-activatE for single-platform service activation. In the revenue
generation group are InterconnecT, our market-leading revenue generation and
settlement family; and our newly-launched solution, Inter-contenT, which allows
operators, content providers, content aggregators and other partners to generate
and share revenues from next-generation communications services. Inter-contenT
was formally shown for the first time after the quarter-end at the 3GSM World
Congress. A sophisticated demonstration involving the delivery of real-time
video news clips to wireless handheld devices attracted a high level of interest
from potential customers, and effectively demonstrated the advanced capabilities
of Intec's solution.
Staff and cost initiatives
During the quarter Intec maintained cost management initiatives developed in
preceding periods. Our objective has been to maintain product investment and
staff resources at levels appropriate to the business, in terms of both
operating revenues and future market potential, while working hard to reduce
overall costs. The welcome increase in EBITDA profit that we have recorded in
the quarter, together with positive operating cash flow, are indicative that
these policies are proving successful in a very competitive market. We believe
that sustained product investment, at a time when competitors are cutting back,
will give us a clear competitive advantage in a market where the technical
requirements for OSS are continually moving forwards. Staff numbers at the end
of the quarter stood at 513, compared with 505 a year ago. This includes 29 new
employees from the Settler business acquisition and is therefore indicative of
efficiencies achieved in the core and earlier acquired businesses.
We have continued to pursue sensible cost management policies in other areas of
the business, with an emphasis on cutting costs from activities that are not
core to the business or less productive, rather than those which might impact
our performance. All expenditure is carefully scrutinised, and we frequently
review suppliers for value and competitiveness. Staff-driven initiatives
continue to play an important part in cost control.
Ericsson 'Settler' acquisition
In November 2002 Intec announced the post-year end acquisition of Ericsson's '
Settler' business unit, its major competitor in the interconnect billing market.
With this acquisition Intec has expanded its base of supported customers by
approximately 30 carriers. The agreement also covers the Settler development
team in Sweden and exclusive worldwide rights to develop and market the Settler
product range. The agreement includes further cooperation between the two
companies where Ericsson will continue to offer solutions based on Settler as
well as Intec's InterconnecT product suite.
The total consideration amounts to US$5.1 million (#3.1 million including
acquisition costs). The acquisition is expected to be revenue and earnings
enhancing, generating new licence revenues, related services work and recurring
revenues for support & maintenance. A key benefit of the agreement is the
synergies that will be achieved. Ericsson has a direct presence in some
countries where Intec has few resources, enabling a greater reach. In other
areas, where the two companies have previously competed fiercely, efforts can be
re-directed to other productive opportunities. The agreement enables Ericsson as
well as other successful Settler partners to be able to offer their telecom
customers Intec billing technology from either the InterconnecT or the Settler
range. The integration of this acquisition is progressing well.
Financial analysis
In common with many enterprise software businesses Intec has always experienced
a degree of unevenness in quarterly revenues, primarily due to current sales
cycles and uncertainty in new contract closure dates. In the quarter under
review, which included a particularly extended Christmas and New Year break for
many businesses, revenues from new software licences have been impacted. Against
this, recurring revenues from upgrades, bureau and support business, and
revenues from professional services have increased significantly, resulting in
reported revenues of #10.4 million for the quarter (Q1 2002: #10.9 million).
Recurring revenues continue to be a growing contributor to our business model,
at #5.7 million (55%) of turnover, up from #4.6 million (42%) in Q1 2002.
Professional services income has also increased to #3.4 million (32%) in Q1 2003
from #2.6 million (24%) in Q1 2002. New licence sales revenue of #1.3 million
(13%) have decreased compared to #3.7 million (34%) in Q1 2002. All regions
made satisfactory contributions in the period, with EMEA contributing 38% of
turnover, North America 46%, CALA 9%, and Asia-Pacific 7%.
Gross margin increased to 69% (Q1 2002: 67%), reflecting a reduction in the use
of third party contractors for implementations. Distribution costs also fell to
#2.2 million (Q1 2002: #2.6 million) partly as a result of efficiency measures
we have taken in our sales processes, as well as lower new licence commission
payments. General administrative costs decreased by 2%, at #2.8 million (Q1
2002: #2.9 million) through continued close attention to cost control across the
business.
As stated earlier Intec continues to invest in its product portfolio to help us
take advantages of next-generation technologies and the growing requirements of
our major carrier customers. However, as a result of our review of product
development priorities in the year, and some rationalisation of development
facilities, development expenditure was up only marginally at #2.2 million (Q1
2002: #2.1 million) despite a substantially broader product portfolio. Intec
incurs the majority of its development expenditure for InterconnecT family
products in South Africa and for Inter-mediatE products in the US. As a result
of the Settler acquisition we have 29 new staff in Sweden.
Depreciation and goodwill amortisation charges have increased from #1.7 million
in Q1 2002 to #2.1 million in the current quarter, reflecting additional
goodwill amortisation from the acquisition of the former ICL Sims/Prospero
business in the second quarter of 2002. No provision for goodwill impairment
has been considered necessary.
Cash and cash investments have decreased by #2.0 million since 30 September
2002, although it is important to note that #3.1 million (including acquisition
costs) was paid as consideration for the Ericsson Settler business in December
2002. Positive operating cash inflows of #1.3 million reflect ongoing
improvement in cash collections during the quarter, resulting from a continued
focus on credit control.
Intec's annualised debtor-days continues to improve, with the figure at 31
December 2002 standing at 91 days, compared with 105 days at 30 September 2002
and 116 days at 31 December 2001. Successful cash collections have continued
during the second quarter with approximately #4.3 million collected up to 18
February 2003.
Outlook
The telecoms industry is experiencing many changes, with the imminent
availability of 3G services to retail customers prominent among them. Intec has
already demonstrated through a number of customer deliveries its ability to
fully satisfy the technical demands of this market. But whatever the technology,
telecoms continues to be a vital business and social service where traffic
volumes grow consistently. As a result we view the industry as fundamentally
sound, despite some obvious difficulties on the supply side. Intec sells
solutions that are clearly necessary to operators, and our business performance
in a challenging market underlines this. Intec is building market share, winning
prestigious customers, and investing carefully in the business. We therefore
remain cautiously confident that our performance in 2003 will be in line with
previously stated forecasts for growth and profitability.
Mike Frayne, Executive Chairman & Kevin Adams, CEO.
25 February 2003
FINANCIAL HIGHLIGHTS
3 months ended 31 December 2002
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
Note 2002 2001 2002
#000 #000 #000
TURNOVER 10,437 10,919 47,474
_______________ ______________ ____________
_______________ ______________ ____________
EBITDA before exceptional items (i) 463 33 3,739
_______________ ______________ ____________
_______________ ______________ ____________
Operating loss (1,642) (1,673) (13,325)
_______________ ______________ ____________
_______________ ______________ ____________
Basic loss per share (0.90)p (1.05)p (7.94)p
_______________ ______________ ____________
_______________ ______________ ____________
Adjusted (loss)/earnings per share (ii) (0.03)p (0.34)p 0.46 p
_______________ ______________ ____________
_______________ ______________ ____________
Notes to the financial highlights #000 #000 #000
(i) Operating loss (1,642) (1,673) (13,325)
Depreciation 459 406 1,745
Amortisation of goodwill and other
intangibles 1,646 1,300 7,079
Impairment of goodwill - - 7,464
Exceptional item (Poland debtor provision) - - 776
_______________ ______________ ____________
EBITDA before exceptional items 463 33 3,739
_______________ ______________ ____________
(ii) Adjusted (loss)/earnings per share based on
following adjusted loss after tax
Loss after tax (1,714) (1,920) (14,782)
Amortisation of goodwill and other
intangibles 1,646 1,300 7,079
Impairment of goodwill - - 7,464
Write down of investments - - 321
Exceptional item (Poland debtor provision) - - 776
_______________ ______________ ____________
Adjusted (loss)/earnings after tax (68) (620) 858
_______________ ______________ ____________
KEY CUSTOMER DATA
31 December 30 September 31 December
2002 2002 2001
Number Number Number
Cumulative:
Contracted customer base 283 272 222
Contracted customers acquired 31 - -
_______________ ______________ ____________
Total contracted customer base 314 272 222
_______________ ______________ ____________
_______________ ______________ ____________
Contracted installations 395 383 290
Contracted installations acquired 49 - -
_______________ ______________ ____________
Total contracted installations 444 383 290
_______________ ______________ ____________
_______________ ______________ ____________
CONSOLIDATED PROFIT AND LOSS ACCOUNT
3 months ended 31 December 2002
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
Note 2002 2001 2002
#000 #000 #000
TURNOVER
Continuing operations 10,382 10,919 47,474
Acquisitions 5 55 - -
_______________ ______________ ____________
Total turnover 2 10,437 10,919 47,474
Cost of sales (3,183) (3,588) (15,430)
_______________ ______________ ____________
GROSS PROFIT 7,254 7,331 32,044
Distribution costs (2,189) (2,602) (9,945)
Administrative expenses:
Development expenditure (2,238) (2,145) (8,026)
Amortisation of goodwill and other intangible (1,646) (1,300) (7,079)
assets
Impairment of goodwill - - (7,464)
Exceptional item - - (776)
Other administrative expenses (2,823) (2,886) (12,079)
Total administrative expenses (6,707) (6,331) (35,424)
_______________ ______________ ____________
OPERATING LOSS
Continuing operations (1,587) (1,602) (13,325)
Acquisitions (55) - -
_______________ ______________ ____________
GROUP OPERATING LOSS (1,642) (1,602) (13,325)
Share of operating loss in associate - (71) -
_______________ ______________ ____________
Total operating loss (1,642) (1,673) (13,325)
Amounts written off investments - - (321)
Interest receivable and similar income 123 177 494
Interest payable and similar charges (1) (307) (331)
_______________ ______________ ____________
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (1,520) (1,803) (13,483)
Tax charge on loss on ordinary activities 3 (194) (117) (1,299)
_______________ ______________ ____________
RETAINED LOSS ON ORDINARY ACTIVITIES AFTER
TAXATION (1,714) (1,920) (14,782)
_______________ ______________ ____________
_______________ ______________ ____________
Loss per share - basic 4 (0.90)p (1.05)p (7.94)p
_______________ ______________ ____________
_______________ ______________ ____________
(Loss) / earnings per share - adjusted 4 (0.03)p (0.34)p 0.46 p
_______________ ______________ ____________
_______________ ______________ ____________
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
3 months ended 31 December 2002
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
2002 2001 2002
#000 #000 #000
Loss for the period (1,714) (1,920) (14,782)
Exchange translation differences arising on
foreign currency net investments (136) (302) (557)
_______________ ______________ ____________
Total recognised gains and losses during the period (1,850) (2,222) (15,339)
_______________ ______________ ____________
_______________ ______________ ____________
CONSOLIDATED BALANCE SHEET
31 December 2002
Unaudited Unaudited Audited
Note 31 December 31 December 30 September
2002 2001 2002
#000 #000 #000
FIXED ASSETS
Intangible assets 65,073 72,404 63,422
Tangible assets 2,876 2,853 2,910
Investments 101 371 101
_______________ ______________ ____________
68,050 75,628 66,433
CURRENT ASSETS
Stocks 30 28 64
Debtors 6 16,434 19,821 17,965
Investments 5,831 1,801 5,151
Cash at bank and in hand 5,456 13,287 8,156
_______________ ______________ ____________
27,751 34,937 31,336
CREDITORS: amounts falling due within one year 7 (5,970) (7,591) (5,796)
_______________ ______________ ____________
NET CURRENT ASSETS 21,781 27,346 25,540
_______________ ______________ ____________
TOTAL ASSETS LESS CURRENT LIABILITIES 89,831 102,974 91,973
Deferred income (5,415) (4,314) (5,766)
_______________ ______________ ____________
TOTAL NET ASSETS 84,416 98,660 86,207
_______________ ______________ ____________
_______________ ______________ ____________
CAPITAL AND RESERVES
Called up share capital 8 1,906 1,836 1,903
Share premium account 8 238,708 235,366 238,652
Other reserve 8 - 2,689 -
Merger reserve 8 249 249 249
Foreign exchange reserve 8 (844) (453) (708)
Profit and loss account 8 (155,603) (141,027) (153,889)
_______________ ______________ ____________
EQUITY SHAREHOLDERS' FUNDS 84,416 98,660 86,207
_______________ ______________ ____________
_______________ ______________ ____________
RECONCILIATION OF MOVEMENT IN CONSOLIDATED SHAREHOLDERS' FUNDS
3 months ended 31 December 2002
Unaudited Unaudited Audited
31 December 31 December 30 September
2002 2001 2002
#000 #000 #000
Loss for the financial period (1,714) (1,920) (14,782)
Other recognised losses relating to the period (136) (302) (557)
Issue of share capital net of associated 59 - 3,353
expenses
(Decrease)/increase in contingent consideration - 192 (2,497)
_______________ ______________ ____________
(Decrease)/increase in shareholders' funds (1,791) (2,030) 14,483
Opening shareholders' funds 86,207 100,690 100,690
_______________ ______________ ____________
Closing shareholders' funds 84,416 98,660 86,207
_______________ ______________ ____________
_______________ ______________ ____________
CONSOLIDATED CASH FLOW STATEMENT
3 months ended 31 December 2002
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
Note 2002 2001 2002
#000 #000 #000
Net cash inflow/(outflow) from operating
activities (i) 1,320 (1,998) 2,770
Returns on investments and servicing of finance
Interest received 123 177 494
Interest element of finance lease rental - (2) (4)
payments
Interest paid and similar items (1) (305) (327)
_______________ ______________ ____________
122 (130) 163
_______________ ______________ ____________
Taxation
Overseas taxation (paid)/received 1 (26) (378)
UK corporation taxation received/(paid) - (10) (10)
_______________ ______________ ____________
1 (36) (388)
_______________ ______________ ____________
Capital investment
Payments to acquire tangible fixed assets (366) (352) (1,651)
Proceeds on disposal of fixed assets 2 - 59
_______________ ______________ ____________
(364) (352) (1,592)
_______________ ______________ ____________
Acquisitions
Investment in subsidiaries (see note 5) (3,239) - (5,222)
Net cash acquired with subsidiaries - - 6
_______________ ______________ ____________
(3,239) - (5,216)
_______________ ______________ ____________
Cash outflow before management of liquid
resources and financing (2,160) (2,516) (4,263)
Use of liquid resources
Decrease/(increase) in cash investments/term
deposits (643) 1,009 (2,252)
Payments received from escrow - - 52
Financing
Issue of ordinary share capital 59 - -
Capital element of finance lease rental payments - (75) (188)
_______________ ______________ ____________
Decrease in cash in the period (ii),(iii) (2,744) (1,582) (6,651)
_______________ ______________ ____________
_______________ ______________ ____________
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
3 months ended 31 December 2002
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
2002 2001 2002
#000 #000 #000
(i) Reconciliation of operating loss to net cash
inflow/(outflow) from operating activities
Operating loss (1,642) (1,602) (13,325)
Depreciation 459 406 1,745
Amortisation of goodwill and other intangible 1,646 1,300 7,079
assets
Impairment of goodwill - - 7,464
Loss/(profit) on disposal of fixed assets 17 27 (25)
Decrease/(increase) in stock 33 1 (39)
Decrease/(increase) in debtors 1,289 (750) (172)
(Increase)/decrease in creditors (482) (1,380) 43
_______________ ______________ ____________
Net cash inflow/(outflow) from operating
activities 1,320 (1,998) 2,770
_______________ ______________ ____________
_______________ ______________ ____________
(ii) Reconciliation of net cash flow to movement
in net funds
Decrease in cash in the period (2,744) (1,582) (6,651)
Net cash outflow from decrease in finance lease - 75 188
Net cash (inflow)/outflow from (decrease)/
increase in liquid resources 643 (1,009) 2,200
_______________ ______________ ____________
Change in net funds resulting from cash flows (2,101) (2,516) (4,263)
Translation differences 81 (274) (195)
_______________ ______________ ____________
Movement in net funds (2,020) (2,790) (4,458)
Net funds at 1 October 13,307 17,765 17,765
_______________ ______________ ____________
Net funds at 31 December / 30 September 11,287 14,975 13,307
_______________ ______________ ____________
_______________ ______________ ____________
(iii) Analysis of movement in net funds
Audited Unaudited
1 October Exchange 31 December
2002 Cash flow movement 2002
#000 #000 #000 #000
Cash in hand and at bank 8,156 (2,744) 44 5,456
Term deposits and escrow account 5,151 643 37 5,831
_________ _________ ________ ___________
13,307 (2,101) 81 11,287
_________ _________ ________ ___________
_________ _________ ________ ___________
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION
3 months ended 31 December 2002
1. BASIS OF PREPARATION
The interim financial information has been prepared in accordance with
accounting policies set out in, and consistent with, the Group's 2002 financial
statements except for the taxation charge for the period which is based on the
estimated charge for the year ending 30 September 2003.
The interim financial information is neither reviewed nor audited and does not
comprise statutory accounts for the purposes of Section 240 of the Companies Act
1985.
The abridged information for the year ended 30 September 2002 has been extracted
from the Group's statutory accounts for that period, which will be filed with
the Registrar of Companies following the 2002 Annual General Meeting. The
Auditor's report on the statutory accounts of the Group for that period was
unqualified and did not contain a Statement under either Section 237(2) or
Section 237(3) of the Companies Act 1985.
The interim financial information was approved by the Board of Directors on 25
February 2003.
2. TURNOVER AND SEGMENTAL REPORTING
Turnover by origin Unaudited Unaudited
3 months ended 31 December 2002 3 months ended 31 December 2001
Inter- Inter-
Total segment External Total segment External
turnover turnover turnover turnover turnover turnover
#000 #000 #000 #000 #000 #000
United Kingdom 4,885 (123) 4,762 4,125 (450) 3,675
Continental Europe 14 - 14 130 - 130
Asia-Pacific 46 - 46 432 - 432
North America & Canada 5,595 (55) 5,540 6,531 (37) 6,494
South America 75 - 75 188 - 188
________ ________ ________ _______ _______ _______
10,615 (178) 10,437 11,406 (487) 10,919
________ ________ ________ _______ _______ _______
________ ________ ________ _______ _______ _______
Audited Year ended 30 September 2002
Inter-
Total segment External
Turnover turnover turnover
#000 #000 #000
United Kingdom 21,148 (1,509) 19,639
Continental Europe 166 - 166
Asia-Pacific 1,758 - 1,758
North America & Canada 25,566 (600) 24,966
South America 945 - 945
_______ ________ ______
49,583 (2,109) 47,474
_______ ________ ______
_______ ________ ______
2. TURNOVER AND SEGMENTAL REPORTING (continued)
Turnover by destination Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
2002 2001 2002
#000 #000 #000
United Kingdom 789 584 3,519
Continental Europe 2,273 2,409 9,753
Eastern Europe 596 91 1,235
Middle East 155 31 728
Africa 191 129 1,687
Asia-Pacific 693 1,278 5,521
North America & Canada 4,781 5,142 21,058
South America 959 1,255 3,973
______________ _____________ ___________
Total turnover by destination 10,437 10,919 47,474
______________ _____________ ___________
______________ _____________ ___________
Turnover by activity Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
2002 2001 2002
#000 #000 #000
Licence sales 1,340 3,665 15,481
Professional services income:
Implementation and migrations 2,078 1,288 6,937
Consulting and training income 289 499 1,793
Hardware 368 38 576
Non-telecom custom network solutions 649 791 2,957
______________ _____________ ___________
3,384 2,616 12,263
Recurring Income:
ASP Service 822 597 2,761
Volume upgrade licences 963 757 1,928
Support and maintenance fees 3,928 3,284 15,041
______________ _____________ ___________
5,713 4,638 19,730
______________ _____________ ___________
Total turnover by activity 10,437 10,919 47,474
______________ _____________ ___________
______________ _____________ ___________
2. TURNOVER AND SEGMENTAL REPORTING (continued)
Loss before taxation Unaudited 3 months ended 31 December 2002
Before After
amortisation of Amortisation of amortisation of
goodwill goodwill goodwill
#000 #000 #000
United Kingdom (2) (511) (513)
Continental Europe 30 - 30
Asia-Pacific 27 - 27
North America & Canada 47 (1,135) (1,088)
South America 24 - 24
______________ _____________ ___________
126 (1,646) (1,520)
______________ _____________ ___________
______________ _____________ ___________
The segmental analysis of loss before taxation for the three months ended 31
December 2002 includes intercompany interest charge from the UK to North America
& Canada of #954,000 (31 December 2001 - #1,048,000).
Unaudited 3 months ended 31 December 2001
Before After
amortisation of
goodwill Amortisation of amortisation of
goodwill goodwill
#000 #000 #000
United Kingdom (858) (143) (1,001)
Continental Europe 55 (2) 53
Asia-Pacific 143 (113) 30
North America & Canada 124 (1,042) (918)
South America 33 - 33
______________ _____________ ___________
(503) (1,300) (1,803)
______________ _____________ ___________
______________ _____________ ___________
Audited Year ended 30 September 2002
Before
amortisation of After
goodwill, amortisation of
impairment and goodwill,
investment write impairment and
down Amortisation of Goodwill Exceptional investment write
goodwill impairment items down
#000 #000 #000 #000 #000
United Kingdom 677 (2,200) (1,684) (1,097) (4,304)
Continental Europe 185 (74) - - 111
Asia-Pacific 187 (420) (5,780) - (6,013)
North America & Canada 948 (4,385) - - (3,437)
South America 160 - - - 160
_______________ ______________ _________ __________ ____________
2,157 (7,079) (7,464) (1,097) (13,483)
_______________ ______________ _________ __________ ____________
_______________ ______________ _________ __________ ____________
2. TURNOVER AND SEGMENTAL REPORTING (continued)
Net assets/
(liabilities) by origin
Unaudited Unaudited Unaudited Unaudited Audited
31 December 31 December 31 December 31 December 30 September
2002 2002 2002 2001 2002
Excluding Including Including Including
unamortised Unamortised unamortised unamortised unamortised
goodwill goodwill goodwill goodwill goodwill
#000 #000 #000 #000 #000
United Kingdom 12,883 5,156 18,039 22,923 17,125
Continental Europe 31 - 31 218 (58)
Africa (384) - (384) - (464)
Asia-Pacific 107 - 107 7,130 494
North America & Canada 8,057 58,485 66,542 68,275 68,902
South America 81 - 81 114 208
_______________ ______________ _________ __________ ____________
20,775 63,641 84,416 98,660 86,207
_______________ ______________ _________ __________ ____________
_______________ ______________ _________ __________ ____________
3. TAX CHARGE ON LOSS ON ORDINARY ACTIVITIES
Unaudited Unaudited Audited
31 December 31 December 30 September
2002 2001 2002
#000 #000 #000
Current taxation:
UK corporation tax at 30% (2002: 30%) - - -
Overseas taxation 190 105 1,098
Prior year 4 12 273
__________ ___________ ____________
Total current tax 194 117 1,371
Deferred taxation:
Origination and reversal of timing differences - - (72)
__________ ___________ ____________
Tax on loss on ordinary activities 194 117 1,299
__________ ___________ ____________
__________ ___________ ____________
i) The major trading companies in the UK and the US have not
incurred corporate tax liabilities. However, we have suffered corporate taxation
is a number of our overseas trading subsidiaries and branches amounting to #0.1
million. The remainder of the tax charge is in respect of withholding tax,
which is deducted at source in certain jurisdictions and which we do not expect
to recover, amounting to #0.1 million.
ii) The US operations have substantial ongoing tax benefits
arising from goodwill allowances which will continue to ameliorate tax charges
against profits in future periods. In addition, there are significant losses
brought forward in the US.
4. (LOSS)/EARNINGS PER ORDINARY SHARE
Unaudited Unaudited Audited
3 months ended 3 months ended Year ended
31 December 31 December 30 September
2002 2001 2002
#000 #000 #000
Basic loss (1,714) (1,920) (14,782)
Amortisation of goodwill and intangible assets 1,646 1,300 7,079
Impairment of goodwill - - 7,464
Amount written off investment - - 321
Exceptional item (Poland debtor provision) - - 776
__________ ___________ ____________
Adjusted (loss)/earnings (68) (620) 858
__________ ___________ ____________
Number Number Number
Weighted average number of shares 190,062,614 183,328,066 186,219,551
___________ ____________ ____________
Pence Pence Pence
Basic loss per ordinary share (0.90) (1.05) (7.94)
Amortisation of goodwill and intangible assets 0.87 0.71 3.80
Impairment of goodwill - - 4.01
Amount written off investment - - 0.17
Exceptional item (Poland debtor provision) - - 0.42
__________ ___________ ____________
Adjusted (loss)/earnings per ordinary share (0.03) (0.34) 0.46
__________ ___________ ____________
__________ ___________ ____________
Diluted loss/earnings per share is not presented in respect of outstanding share
options since none of the options are dilutive.
5. ACQUISITIONS
a) Current year acquisitions
On 18 December 2002, the group acquired Ericsson AB's 'Settler' interconnect
billing product unit, including the Settler development team and worldwide
rights to develop and market the Settler product range. The total
consideration, settled in cash, amounted to US$5.1 million (#3.0 million plus
acquisition costs of #0.1 million) as disclosed below.
Goodwill arising on acquisition has been capitalised and is being amortised over
four years from the date of acquisition. Goodwill charged in the period amounts
to #29,000. Turnover from acquisitions of #55,000 is for the period from 18
December to 31 December 2002.
Net liabilities at date of acquisition Provisional
And provisional fair value fair value
#'000
Creditors (176)
Goodwill arising on acquisition 3,299
___________
3,123
___________
___________
Consideration paid in cash 2,990
Acquisition costs 133
___________
3,123
___________
___________
In addition to the above, a share option was granted to the advisers to the
acquisition. This option vested on successful closure of the acquisition and
was exercisable immediately. 293,121 ordinary shares were issued at 20.2 pence
per share.
b) Prior year acquisitions
Deferred consideration of #116,000 was paid in respect of the operational
support systems business acquired from ICL, a Fujitsu company.
c) Reconciliation to cash flow statement
#000
Consideration for 'Settler' business 2,990
Acqusition costs 133
Deferred consideration payments on prior year acquisition 116
___________
3,239
___________
___________
6. DEBTORS
Unaudited Unaudited Audited
31 December 31 December 30 September
2002 2001 2002
#000 #000 #000
Trade debtors 12,023 13,867 13,676
Corporation tax recoverable 196 214 196
Deferred tax 86 - 72
Withholding tax recoverable - 87 -
Other debtors 162 1,345 301
WIP and accrued income 2,960 3,037 2,571
Prepayments
Due within one year 1,007 1,239 1,149
Due after more than one year - 32 -
___________ __________ ____________
16,434 19,821 17,965
___________ __________ ____________
___________ __________ ____________
7. CREDITORS
Unaudited Unaudited Audited
31 December 31 December 30 September
2002 2001 2002
#000 #000 #000
Amounts falling due within one year
Obligations under finance leases - 113 -
Trade creditors 1,582 1,131 1,767
Corporation tax 454 472 454
Overseas tax 651 295 516
Other creditors including taxation and social 612 948 686
security
Accruals 2,084 2,386 1,670
Deferred/contingent consideration 587 2,246 703
___________ __________ ____________
5,970 7,591 5,796
___________ __________ ____________
___________ __________ ____________
8. STATEMENT OF MOVEMENTS ON RESERVES
Called Share Foreign Profit
up share premium exchange and loss
capital account Other Merger reserve account
reserve reserve
Total
#000 #000 #000 #000 #000 #000 #000
At 1 October 2002 1,903 238,652 - 249 (708) (153,889) 86,207
Issue of shares 3 56 - - - - 59
Retained loss - - - - - (1,714) (1,714)
Foreign exchange translation - - - - (136) - (136)
_______ ________ _______ _______ ________ _________ ________
At 31 December 2002 1,906 238,708 - 249 (844) (155,603) 84,416
_______ ________ _______ _______ ________ _________ ________
_______ ________ _______ _______ ________ _________ ________
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRFDGGDDRGDGGXU
1 Year Nets Trust Chart |
1 Month Nets Trust Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
