TIE Holding N.V. (“TIE”) reports the following highlights with regard to the Fourth Quarter of FY2012 (July 1, 2012 – September 30, 2012) and the fiscal year 2012 (October 1, 2011 – September 30, 2012).
Business Results:
• Total Income for the Fourth Quarter FY2012 amounts to € 3,451k, an increase of 29% compared to the same period in FY2011 (€ 2,684k).
• Total Comprehensive Income for the Fourth Quarter FY2012 amounts to € 521k, an increase of 51% compared to the same period in FY2011 (€ 344k).
• SaaS revenue is € 1,237k for the Fourth Quarter FY2012 (36% of Total Income), an increase of 17% compared to € 1,060k in the same period in FY2011 (39% of Total Income).
• Total Income for FY2012 amounts to € 12,494k an increase of 17% compared to FY2011 (€ 10,671k).
• Total Comprehensive Income for FY2012 amounts to € 703k, an increase of 79% compared to FY2011 (€ 393k), partly due to an improvement in operating activities and due to the capitalization of deferred tax assets.
• The net cash flow from operating activities for FY2012 amounts to € 1,009k (FY2011: € 958k).
Mr. Jan Sundelin, CEO of TIE, comments:
“Our E-commerce and Content Syndication suites showed a growth of 39% in FY2012 compared to FY2011 and over the last six months of FY2012 even a growth of 51% comparing to the same period in FY2011.
In France we had to impair TIE France, due to the loss of ADEC. Further, we decided to reorganize TIE France by opening a sales office in Paris.
With the acquisition of ascention per October 1, 2012, we now have a footprint in DACH area. On the same date we also opened an office in the UK.
Starting from January 2013, TIE Netherlands, TIE MamboFive and TIE Light will move to one new single office, with the aim to further improve efficiency of the operation in the Netherlands.
Starting fiscal year 2012 and up to this moment, the Company reported the following highlights on:
Customers and Products:
• October 20, 2011: TIE is technology provider in European Union Project ‘Adventure’, the value of the contract for TIE amounts to € 500k;
• December 22, 2011: TIE and The Online Company have agreed with T-mobile to deliver all webshop activities in the Netherlands for B2C and B2B, the value of the 3 year contract for TIE amounts to € 1.2mln in SaaS;
• January 21, 2012: TIE and Progress Software Corporation expand partnership to Global Strategic Alliance.
• February 7, 2012: TIE and Newco Food Retail open fourth online food webshop.
• March 13, 2012: TIE is technology provider in European Projects PREMANUS.
• October 15, 2012: TIE is technology provider in European Union Project ARUM and receives funding amounting to € 964k.
Employees:
• March 15, 2012; TIE appoints Mr. Brian Tervo as Chief Operational Officer (COO).
• July 15, 2012: TIE announces the appointment of Marc Gijsberts as new director EU Operations.
Legal and Financial:
• November 23, 2011: TIE reports that the Annual Result 2011 amounted to € 393k, and SaaS Revenue increased by 20%;
• January 31, 2012: TIE announced publication of its Annual Report 2011 and agenda for the Annual General Meeting of Shareholders.
• February 15, 2012: TIE publishes its Q1 Trading update: Profitable Q1, Total Comprehensive Income € 113k.
• May 23, 2012: TIE reports its half year results.
• August 8, 2012: TIE announces an acquisition in the Netherlands.
• August 16, 2012: TIE publishes its Q3 Trading update: Total Income and SaaS Revenue increased by respectively 27% and 18%.
• October 1, 2012: TIE acquires ascention and expands coverage to DACH region.
• October 10, 2012: TIE announces that the court dismissed of 6 of 7 grievances but ordered Samar to repay € 250k to TIE.
• October 23, 2012: TIE announces the TIE Investor Event.
Financial and Cash Position:
Shareholders’ Equity amounts to € 5,354k on September 30, 2012 (€ 4,535k on September 30, 2011). Equity per September 30, 2012 amounts to € 5,399k (€ 4,580k per September 30, 2011) including Convertible Bonds amounting to € 45k (€ 45k per September 30, 2011).
On September 30, 2012 the Company held a net cash and cash equivalents position of € 747k (September 30, 2011 € 380k).
The net cash flow from operating activities for the year amounted to € 1,009k (2011: € 958k).
Impairment/Re-impairment of Intangible Assets:
Based on the results of the annual impairment test, the Company did an impairment of Goodwill of the CGU TIE France of € 216k, predominantly resulting from the loss of ADEC as customer. The test on CSP revealed that a re-impairment of € 280k is required.
The CGU’s are:
TIE Netherlands (Business Integration)
TIE France (Business Integration)
TIE Commerce (Business Integration)
TIE MamboFive (E-commerce)
TIE CSP (Content Syndication)
As in past years we used a discounted cash flow model to determine the value in use, based on a 15% WACC and 10 years horizon. TIE has assessed the assumptions regarding expected growth rates.
Income Taxes:
The Company did capitalize, based on loss carry forward, an amount of € 97k in the Netherlands and $ 250k in the US as deferred tax asset. The Company has in both the Netherlands and the US substantial amounts of loss carry forward. Based on the business expectation for the coming years the Company has reassessed the tax position.
In the Netherlands an amount of € 22mln of loss carry forward lapsed as the statutory period for loss compensation did expire. The remaining amount for loss carry forward amounts to € 15.1mln in the Netherlands and $ 3.4mln in the US.
Contracted Value: Projections
The Contracted Value is calculated for the next three years, using the following assumptions: SaaS and Maintenance & Support Contracts run between 12 and 36 months with an automatic renewal for 12 months. Since contracts may be renewed during the projected period of three year, the Contracted Value is adjusted based on historical churn rates.
