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2014-04-10

Basware: Basware Interim Report January 1-March 31, 2014 (IFRS)

Basware Corporation, stock exchange release, April 10, 2014 at 08:45
BASWARE INTERIM REPORT JANUARY 1 - MARCH 31, 2014 (IFRS)
SUMMARY

January-March 2014: Transactions processed by Network Services increased by
25.5 percent

* Net sales EUR 31 013 thousand (EUR 29 828 thousand) - growth 4.0 percent
* Operating result EUR 310 thousand (EUR -1 569 thousand)
* Operating result 1.0 percent of net sales (-5.3%)
* Growth of Network Services net sales 23.0 percent
* Recurring revenue 66.9 percent (63.6%) of net sales
* Cash flow from operating activities EUR 13 422 thousand (EUR 9 718
thousand)
* Earnings per share (diluted) EUR -0.01 (-0.07)

Basware expects its net sales and operating result (EBIT) for 2014 to grow
compared to 2013.
The figures are unaudited.

GROUP KEY FIGURES
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|EUR thousand 1-3/ 1-3/ Change, 1-12/ |
| |
| |
| 2014 2013 % 2013 |
| |
|Net sales 31 013 29 828 4.0% 123 349 |
|EBITDA 2 099 233 802.0% 10 383 |
|Operating result before IFRS3 amortization 540 -1 337 4 256 |
|Operating result 310 -1 569 3 331 |
|% of net sales 1.0% -5.3% 2.7% |
|Result before tax 11 -1 526 3 284 |
|Result for the period -76 -962 -92.1% 2 605 |
| |
|Return on equity, % -0.3% -3.9% 2.6% |
|Return on investment, % 1.7% -4.9% 3.9% |
|Liquid assets 21 308 23 276 -8.5% 13 218 |
|Gearing, % -15.1% -13.2% -4.7% |
|Equity ratio, % 65.9% 63.7% 77.1% |
| |
|Earnings per share |
|Undiluted, EUR -0.01 -0.07 0.20 |
|Diluted, EUR -0.01 -0.07 0.20 |
|Equity per share, EUR 7.40 7.51 -1.4% 7.62 |
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Business operations

Basware is the global leader in providing purchase-to-pay and e-invoicing
solutions in the world of commerce. We empower companies to unlock value
across their financial operations by simplifying and streamlining key
financial processes. Our Basware Commerce Network, the largest open business
network in the world, connects 1 million companies across 100 countries and
enables easy collaboration between buyers and suppliers of all sizes. Through
this network, leading companies around the world achieve new levels of spend
control, efficiency and closer relations with their suppliers. With Basware,
businesses can introduce completely new ways of buying and selling to achieve
significant cost savings and boost their cash flow.
Reporting
Basware Corporation reports one operating segment: Purchase to Pay, P2P. The
segment is divided into the Network Services and Solution Services businesses
that support each other.
As of 2014, the company reports revenue from products and services as follows:
Network Services (e-invoicing solutions and services) and Solution Services
(software solutions and services). In addition to this, the company reports
revenue from its products and services according to the breakdown of the
previous reporting practice: License sales, Professional Services, Customer
Support, and Automation Services.

In accordance with the previous practice, Customer Support and Automation
Services together form the recurring revenue reported by the company.

Network Services revenue is comprised of e-invoicing, paper invoice scanning
services, printing service, catalog exchange, purchase message exchange,
activation services, and start-up fees of e-invoicing services and added
value services related to financing. Solution Services revenue is comprised
of software revenue (SaaS revenue and license sales), software maintenance
and extended customer support services (customer support), Professional
Services, and start-up fees of SaaS services.

As geographic information Basware reports geographical areas Finland,
Scandinavia, rest of Europe, and Other. Net sales are reported by the
customer's location, and net sales and operating result are also reported by
the location of the assets. In addition, the geographical information of
non-current assets is reported by the location of the assets in the annual
financial statements.

CEO Esa Tihilä:
Net sales for the first quarter amounted to EUR 31 013 thousand, growth of 4.0
percent compared to the corresponding period in the previous year, and
operating result was EUR 310 thousand. International net sales grew by 9.2
percent, and the international share of Basware's net sales was 64.1 percent
(61.1%) in the first quarter.
The net sales of the Network Services business developed as strongly as
expected during the first quarter and amounted to EUR 8 032 thousand, growth
of 23.0 percent compared to the corresponding period in the previous year.
The growth is entirely organic. The strong growth in the transaction volume
continued during the first quarter, up 25.5 percent, and 17.2 million
transactions were processed via Basware Commerce Network.

Solution Services net sales amounted to EUR 22 981, down 1.4 percent. The
development of net sales was influenced by the utilization rate of consulting
being lower than planned, non-chargeable work, and delays in the entry of new
SaaS services into production compared to the plans. The Solution Services
business is expected to develop more favorably during the rest of the year.
The growth in the sales of Alusta is expected to have a positive effect on
software net sales and professional services.

The development of costs was still moderate during the first quarter of 2014.
The co-operation negotiations regarding the personnel were concluded in the
first quarter, and the Group will also conduct other saving and
rationalization measures with an estimated annual cost impact of EUR 2.5
million. The development of operations has also aimed at accelerating the
deployment of our services and products, accelerating the production of SaaS
and e-invoicing agreements through product and process improvements and to
make operations more efficient and improve profit-making ability.

The global market growth in e-invoicing has been estimated to be approximately
20 percent. Basware is pursuing accelerated growth that exceeds the market
growth in its Network Services. Stronger growth can be achieved by developing
and automating the connection of buyers and suppliers to the e-invoicing
services, by utilizing digital marketing and sales channels more extensively,
and through acquisitions.

Basware's internationalization and transformation into the global leader in
providing purchase-to-pay and e-invoicing solutions is illustrated by our
refreshed brand promise,Unlocking value in a connected business world
. It reflects how we empower our customers to unlock value across their
financial operations by simplifying and streamlining key financial processes.
Our Basware Commerce Network enables easy collaboration between 1 million
buyers and suppliers in over 100 countries. The cooperation with MasterCard
for creating value added services for financing and a new global e-payment
solution for Purchase to Pay proceeds as planned.
FUTURE OUTLOOK
Operating environment and market outlook

Companies of all sizes globally are under pressure to improve their cash
flows, find new innovative payment strategies and automate their financial
processes and functions. The company expects the same to continue also in
2014 and the continuous need for services to remain at a favorable level
among its customers.
Consolidation is expected to continue in the business environment, with the
role of services growing in companies' portfolios. Basware continues active
analysis of acquisition targets especially in the e-invoicing market in
Europe and in the U.S. according to its strategy.

By the end of 2015, Basware aims to become the largest business commerce
network for buyers and suppliers. The penetration rate of e-invoicing is
still low. It varies between 5-30 percent depending on the country, and it
has been estimated to grow strongly. The growing and evolving e-invoicing
market will offer Basware excellent growth opportunities, as will the
provision of added value services related to financing.

Outlook 2014
The global market growth in e-invoicing has been estimated to be approximately
20 percent. Basware is pursuing accelerated growth that exceeds the market
growth in its Network Services. Stronger growth can be achieved by developing
and automating the connection of buyers and suppliers to the e-invoicing
services, by utilizing digital marketing and sales channels more extensively,
and through acquisitions.
The Solution Services business is expected to develop more favorably during
the rest of the year. The growth in the sales of Alusta is expected to have a
positive effect on software net sales and professional services.

The development of costs was still moderate during the first quarter of 2014.
Decisions about investments required by the growth will be made during the
year if the market situation and business development so requires.

Basware expects its net sales and operating profit (EBIT) for 2014 to grow
compared to 2013.

Espoo, Finland, April 10, 2014

BASWARE CORPORATION
Board of Directors

For more information, please contact:

Esa Tihilä, CEO, Basware Corporation

Tel. +358 40 480 7098

Distribution:
NASDAQ OMX Helsinki Ltd
Key media
www.basware.com

Basware Interim Report Q1/2014
http://hugin.info/131662/R/1776138/605927.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Basware via Globenewswire

HUG#1776138

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