f-secure corporation interim report 1q 2008 · 2020-03-24 · interim report 1q08 –april 23rd,...
TRANSCRIPT
Interim Report 1Q08 – April 23rd , 2008 Page 2
Q1 Revenues
• Solid overall growth of 15% to 26.6m
• Strong ISP growth to 10.9m
• +8% quarter over quarter
• +41% from 1Q07 (YoY)
• Mobile security advances
• New mobile operator and device
manufacturer partnerships
• Traditional channel sales grew +2% to
15.7m
0
5
10
15
20
25
30
Revenues
Interim Report 1Q08 – April 23rd , 2008 Page 3
Q1 Costs
• Q1 Costs ~19.5m
• Continuously investing into future
growth
• Costs include
• Capitalization of Development costs
marginal
• Granted stock options ~0.2m
• Gross margin 92% (92%)
0
5
10
15
20
25
Q2'0
5
Q3'0
5
Q4'0
5
Q1'0
6
Q2'0
6
Q3'0
6
Q4
´06
Q1
´07
Q2'0
7
Q3
'07
Q4'0
7
Q1'0
8
S&M R&D G&A write-off
Interim Report 1Q08 – April 23rd , 2008 Page 4
Q1 Operating Result
• EBIT 5.3m
• 20% of revenues
• +31% EBIT growth from 1Q07
• Equity ratio strong
• Mar 31, 2008 71%*
• Dec 31, 2007 82%
• Sep 30, 2007 81%
-2
-1
0
1
2
3
4
5
6
7
Without impairment loss of Network Control* If dividends were paid in March
equity ratio 81% - was paid in April
Interim Report 1Q08 – April 23rd , 2008 Page 5
Development of EBIT margin
• Continue to prioritise growth over short
term profitability
• Average EBIT has improved gradually
• The 2-4 year goal is to reach 25% EBIT
level
0 %
5 %
10 %
15 %
20 %
25 %
30 %
Q3'0
3
01
'04
Q3'0
4
Q1'0
5
Q3'0
5
Q1'0
6
Q3'0
6
Q1'0
7
Q3'0
7
Q1'0
8
EBIT% Ave (4 qrts)
Graph shows EBIT without the non-recurring
impairment loss of Network Control in 4Q06
Interim Report 1Q08 – April 23rd , 2008 Page 6
Q1 Cash flow
• Positive cash flow 6.1m
• Cash flow includes:
• SRV payment over 1m
• Prepaid corporate taxes
• Liquid assets 90.3m (72.4m)
• Market value on Mar 31st, 2008
50
55
60
65
70
75
80
85
90
95
Dividend Cash position
Dividend pay-out
Interim Report 1Q08 – April 23rd , 2008 Page 7
Q1 Deferred Revenues
• Deferred revenues accrued in balance
sheet
• Mar 31, 2008 33.7m
• Dec 31, 2007 31.9m
• Sep 30, 2007 29.1m
• Development following an annual pattern
10
15
20
25
30
35
Q2
'0
5
Q3
'0
5
Q4
'0
5
Q1
'0
6
Q2
'0
6
Q3
'0
6
Q4
´0
6
Q1
'0
7
Q2
'0
7
Q3
'0
7
Q4
'0
7
Q1
'0
8
Deferred Revenues
Interim Report 1Q08 – April 23rd , 2008 Page 8
Regional Revenue Split
2007Q12008Q1
40 %
43 %
8 % 9 %
Nordic Countries RoE
North America RoW
39 %
44 %
8 %9 %
Interim Report 1Q08 – April 23rd , 2008 Page 9
ISP Business – continued strong growth
• 10.9m of revenues
• +41% of total Q1 revenues
• Strong growth
• +8% from 4Q07, +41% from 1Q07
• Growth accelerating activities continued
0
2000
4000
6000
8000
10000
12000
Q1/01 Q1/02 Q1/03 Q1/04 Q1'05 Q1'06 Q1'07 Q1'08
kE
UR
Interim Report 1Q08 – April 23rd , 2008 Page 10
Growing number of ISP partners
• 169 partners in 38 countries
• 6 new partners in Q1
• Strong competitiveness in signing new
partners continues
• Q1 significant partner announcements
• Cabovisao, Portugal
• Comstar-Direct, Russia
• Ziggo, the Netherlands
0
20
40
60
80
100
120
140
160
180
Cumulative
Interim Report 1Q08 – April 23rd , 2008 Page 11
F-Secure Partners’ annual market share of residential broadband
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
40 %
2006 2007 2006 2007 2006 2007
F-Secure
Partners’ market share of residential
broadband
• 37% (34%) in Europe
• 10% (10%) in NA
• 9% (n/a) in Asia
(estimates by Dataxis & F-
Secure)
Europe
NA ASIA
Interim Report 1Q08 – April 23rd , 2008 Page 16
Q1 Mobile Security Business
• Device manufacturers
• Partnership announcement (Q1) with
Sony Ericsson and Toshiba
Information Systems
• Available for a majority of the
currently shipping or upcoming Nokia
S60 3rd edition devices
• Continued strong growth in trial usage
• Slow steady growth in revenues
• Ca 3% of total revenues (Q1)
• Sony Ericsson integration project
revenues affecting Q1
• Operators key for awareness &
availability
• T-Mobile UK & Germany
• Orange UK & Switzerland
• Swisscom
• TeliaSonera
• Elisa
• CSL (Hong Kong)
Interim Report 1Q08 – April 23rd , 2008 Page 17
Recent mobile partner in APAC
The biggest mobile operator in Hong Kong
Symbian S60, UIQ and WinMobile phones
Interim Report 1Q08 – April 23rd , 2008 Page 18
Key product announcements in Q1
• F-Secure Health Check
• Pre-release in Q4, official launch Q1
• F-Secure Mobile Security for Windows
Mobile (Apr 08)
Interim Report 1Q08 – April 23rd , 2008 Page 19
Number of Personnel 602 at the end of quarter
0
100
200
300
400
500
600
700
Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108
S&M R&D G&A
Interim Report 1Q08 – April 23rd , 2008 Page 20
Future Outlook
• Strategy in a nutshell
(1) Continue to drive growth
(2) Capitalize on industry leadership in Security
as a Service
(3) Develop leadership in mobile security
• Investing in growth
• New sales & marketing activities for
scalability in ISP& mobile
• Pursue security related technologies and
new services related to the online wellbeing
• Mobile business
• Revenues continue to grow gradually
• Remaining a small part of total revenues in
2008
Based on the sales pipeline at the time of publishing, existing subscriptions and support contracts, previous experience
• Q2 2008 outlook
• Revenues 26.5-28.5m
• Costs below 21m
• FY 2008 outlook
• Expected revenues 110-120m
• EBIT% for the full year 19-23%
• ISP growth c. 40% during 2008