financial result q3 2012 - enea · ‒ more than 250m of the 325m lte population coverage is...
TRANSCRIPT
Anders Lidbeck, President and CEO Oct 24, 2012
Financial result Q3 2012
Agenda Enea intro
Enea financials
Way forward & Outlook
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Enea is Powering the Wireless
Broadband
TEN OFFICES IN NORTH AMERICA,
EUROPE AND ASIA
REVENUE
446.7 MSEK
NO. OF EMPLOYEES
426
The market for wireless communication is expanding rapidly.
Enea is global software company showing revenue growth and high operating profit margins.
Enea already holds a world-leading position on this market with products that unquestionably work. ‒ More than 250M of the 325M LTE
population coverage is powered by Enea OS Solutions.
‒ Enea OS Solutions run in more than half of the world’s 8.2M radio base stations.
Powering the Wireless Broadband
Numbers for 2011
DIVIDEND
8.00 SEK /SHARE
Customer Trust, Delivered
Enea products include operating systems, development tools, middleware, interprocess communication tool, databases and network protocols, all with focus on embedded development.
The solutions are customized for each customer.
Most common usage is in base stations and mobile devices.
Enea Products
Custom Software
Linux Databases RTOS
Interprocess Communication
tools More
Customer Integration
and Services
…
Operating Systems Solutions Offering
Middleware
Q3 2012
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Continued Growth in Third Quarter
Q3/12 Q3/11 Q1-Q3/12 Q1-Q3/11 Revenue (MSEK): 107.3 101.1 345.3 322.0 Growth (%) 6.1 7.2 Growth (%) (excl. currency effects) 5.8 5.2
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Revenue MSEK
1/11 2/11 3/11 4/11 1/12 2/12 3/12
Type of Revenue MSEK
1/11 2/11 3/11 4/11 1/12 2/12 3/12
Other Perpetual Rentals Royalty Support & Maintenance Services
Growth in North America and Europe
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Europe MSEK
1/11 2/11 3/11 4/11 1/12 2/12 3/12
North America MSEK
1/11 2/11 3/11 4/11 1/12 2/12 3/12
Asia MSEK
1/11 2/11 3/11 4/11 1/12 2/12 3/12
64% Europe
30% North America 6% Asia
• Europe: Revenue growth and improved profits. Increased revenue from key accounts. Revenue in line with previous year in Romania.
• North America: Increased services revenue but a decline in license revenue. In total, revenue growth but lower margins.
• Asia: Declining revenues with lower profits. Revenue in Japan in line with previous year. Revenue in China lower than previous year.
Strong Product Offering
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Over the third quarter, sales increased for operating systems and for services, compared with the same period in the previous year.
Sales for middleware and tools declined compared with the same
period previous year.
Revenue per product
53% Operating systems
6% Middleware
2% Tools
34% Services
5% Others
MSEK
1/11 2/11 3/11 4/11 1/12 2/12 3/12
Revenue per product
Improved Earnings
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Q3/12 Q3/11
EBIT (MSEK) 18.0 3.2
Operating margin (%) 16.8 3.2
Earnings per share (SEK) 0.77 -1.63*
Q1-Q3/12 Q1-Q3/11
EBIT (MSEK) 52.1 21.5
Operating margin (%) 15.1 6.7
Earnings per share (SEK) 2.31 -0.91*
Operating margin (excl. write downs) %
1/11 2/11 3/11 4/11 1/12 2/12 3/12
All numbers excluding capital gain. *including write downs of SEK 37.5 millions.
Continued Strong Financial Position
Cash flow from operations amounted to 26.6 (17.9) MSEK for Q3.
Cash and cash equivalents at the end of the period were 134.6 (121.6) MSEK
Enea has unused credits amounting to 100 MSEK
The equity/assets ratio was 81.1 (72.2)%
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Cash flow (from operations)
MSEK
1/11 2/11 3/11 4/11 1/12 2/12 3/12
The figures from 2011 include the divested business
Way Forward & Outlook
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Long Term Ambition Enea’s ambition during the next five years is to create a
global software company with significantly higher revenues, high profitability, good cash flows and a large proportion of recurring revenues.
Enea will be focusing on organic growth, but both strategic and supplementary acquisitions will be evaluated regularly. This growth will vary over the years and between the quarters, depending on when individual deals take place and the development of royalty revenue streams which are dependent on customers’ sales volumes.
The operating margin will vary in line with growth over the various quarters of the period. Our objective during this five year period is to achieve an operating margin of 20 percent.
Equipment manufac-turers want system-on-chip, i.e pre-integrated hardware and software
TechnologyTrends and Enea Innovation
The equipment manufacturer can then consult a single player and receive a fully integrated solution which is tested and verified right from the outset. The relationships with hardware manufacturers become even more important.
Accelerated focus on Linux.
Linux with real-time properties is a crucial factor in the communications segment.
Enea Linux Base Station Platform , well suited for Freescale’s System-on-Chip (SoC) solutions.
Increased investment in partner
relationships .
Enea Linux with strengthened real-time properties.
Enea Linux Base Station Platform provides customers fast and flexible access to a basic platform for base station development.
Enea focus Enea projects
Linux combined with RTOS is the de facto standard in telecoms
The Enea OSE family of real-time operating systems with its proven and reliable performance is subject to a continuous evolution.
Extension of the Enea operating system OSE with 64-bit support for selected CPU architectures.
Continuous development of OSE’s multicore architecture makes it possible to support future CPUs such as Freescale T4240 with 24 virtual cores.
Demand on increased performance and capacity pushes RTOS evolution
Market Outlook
Growth and operating margin will vary in line with growth over the various quarters of the period, depending on when individual deals take place and the development of royalty revenue streams which are dependent on customers’ sales volumes. Our objective during this five year period is to achieve an operating margin of 20 percent.
Outlook for 2012 The long term objective will not be reached in 2012. For 2012 Enea has decided not to provide any further outlook.
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Enea is Powering the Wireless Broadband
Thank You! For further information, please contact: Anders Lidbeck, CEO,
[email protected] Catharina Paulcén, VP Communications
[email protected] Phone: +46 8 507 140 00