Comptel : Interim Report of Comptel Corporation 1 January - 31 March 2014

Profitability and strong cash flow despite lower level of y-o-y net sales.

• Net sales EUR 18.0 (January - March 2013: 21.2), change -14.9%
• Operating result EUR 1.0 million (1.0)
• Earnings per share EUR 0.00 (-0.01)
• Order backlog EUR 42.2 million (50.1), change -15.8%

Comptel's operating result for 2014 is expected to be EUR 5-10 million. The 2014 revenue is expected to remain at the 2013 level while the new solutions are expected to grow from Q2 onwards.

Juhani Hintikka, President and CEO:

" Our order backlog increased from last quarter and we won three new customers during the first quarter of 2014. Our first quarter revenue declined year over year due seasonality swings between quarters. We divested one of our legacy businesses that also contributed slightly negatively to our order intake and revenue.

Market conditions continue to be challenging but we are making progress with our product offering. We won a new analytics solution project in Q1 with a leading Asian operator, Globe Telecom.  Our profitability improved compared to the first quarter of last year and our cost base is now lower due to earlier implemented cost saving measures. We maintained a strong cash flow throughout the quarter and currently our cash exceeds our bank debt.

During the quarter we signed a strategic partnership with Tech Mahindra and we also won our first joint project after the partnership agreement."

Business Review of the First Quarter 2014

Comptel's net sales declined in the first quarter by 14.9 per cent from the previous year, to 18.0 million (21.2). The quarterly revenue declined due to seasonality swings between quarters.

Operating result for the period was EUR 1.0 million (1.0), which corresponds to 5.3 per cent of net sales (4.9). The earlier implemented cost saving measures have improved the cost base

Result before taxes was EUR 0.8 million (0.1) and net result was EUR 0.2 million (-0.6).
Tax expense for the period was EUR 0.6 million (0.7), of which EUR 0.7 million were withholding taxes. Earnings per share for the period under review were EUR 0.00 (-0.01).

The Group's order backlog declined from the previous year and was EUR 42.2 million (50.1) at the end of the period.

Q1 2014 Interim Report (PDF)

Q1 2014 Presentation (PDF)

Schedule for Comptel's interim reports in 2014:

January-June 29.7.2014

January-September 21.10.2014

COMPTEL CORPORATION