Hoofddorp, The Netherlands
Business Results
During the fourth Quarter 2010 Total Income amounts to € 2,613k (Q4_2009: 2,802k). Operating Income Q4 amounts to € -1,103k (Q4_2009: € 219k) and Total Comprehensive Income to € -1,534k (Q4_2009: € 166k).
Total Income for the year amounts to € 11,013k (2009: € 11,190k), Operating Income amounts to € -1,393k (2009: € 759k) and Total Comprehensive Income amounts to € -1,763k (2009: € 540k). The net cash flow from operating activities for the year amounts to € -677k (2009: € 568k).
Our strategic investment in additional staff for the E-commerce and Content Syndication platforms needs more time to generate profit, also because of the increasing component of Software as a Service (Saas) generating an ongoing revenue stream as an annuity. We are in the process of reviewing our product portfolio, resulting for this reporting period in an amortization of Goodwill of € 171k for the software obtained in 2005 by the acquisition of Nspyre. Finally the company was engaged in two lawsuits. The costs associated with these suits amounted to € 987k. Additional onetime costs are € 250k. Thus the combined costs of the total onetime expenses for 2010 amounted to € 1,237k. The net cash flow for 2010 normalized for onetime expenses amounted to € 560k (2009: € 568k).
CEO Jan Sundelin said: “We have taken major steps to focus more clearly on the growing E‑commerce, Content Syndication and SaaS for Business Integration. Our relationships with our two most important partners, CNET (a division of CBS), and Epicor have been strengthened considerably. We have invested in sales, marketing, development and support staff in the E-commerce and the emerging Content Syndication businesses. For 2011, we expect limited growth of our Business Integration revenue for both license and SaaS. However, we are confident to further grow our E-commerce and Content Syndication business, through a combination of SaaS and Consultancy. TIE’s competitive advantage is the ability to merge its three platforms, resulting in a Total Integrated E-commerce solution”.
Starting fiscal year 2010 and up to this moment, the Company reported the following highlights:
Customers and Products
- October 7, 2009: TIE reported that it entered into a partnership agreement with Intertrade Systems Inc. as well the sale of the Edge desktop business in the US to Intertrade Systems Inc. The income of this sale was realized in 2010.
- October 21, 2009: TIE reports that it releases version 4.0 of the Translator, TIE’s any-to-any business document translation tool.
- December 8, 2009: TIE reports that it appoints Siebe van Ineveld to promote the development of TIE’s business in EMEA.
- February 23, 2010: TIE announces the release of version 3.0 of their Content Syndication Platform.
- June 10, 2010: TIE reported that Capgemini Retail Solutions has exclusively selected Freeconnect as part of TIE’s Business Integration Platform.
- June 17, 2010: TIE reported the selection of the TIE Kinetix Business Integration Platform by the Royal Malaysian Customs in cooperation with TIE’s partner Edaran IT Services Sdn Bhd.
- June 24, 2010: TIE reported that TIE’s global strategic partner CNET Content Solution, a division of CBS Interactive, has teamed up with Lenovo to syndicate the PC maker’s content worldwide through ContentCast™ using the TIE Content Syndication Platform.
- July 1, 2010: TIE reported that Microsoft was able to increase the online conversion rate of their office products with selected retailers by using the TIE Kinetix Content Syndication Platform.
- August 3, 2010: TIE reported that Siemens Enterprise Communications GmbH (SEN) introduced their worldwide Digital Channel partner program, powered by the TIE Kinetix Content Syndication Platform, in China.
- August 16, 2010: TIE reported the launch of the first online specialty shop for daily fresh food: Culinaireversmarkt.nl.
- September 28, 2010: TIE reported that T-Mobile has implemented the TIE Kinetix E‑commerce Platform for its new online phone shop.
- October 26, 2010: TIE reported that the ‘EDI managed services on demand’ is available for Epicor customers.
- November 15, 2010: TIE reported that it is engaged in the European Unions Omelette project which aims at improving the internet as a global delivery platform with a specific focus on converged services in the telecom domain.
Legal and Financial
- October 14, 2009: TIE announced that it has obtained a credit facility and that Rabobank becomes the new banker of TIE.
- November 20, 2009: TIE announced that it is investigating a potential infringement on its Content Syndication Platform.
- January 5, 2010: TIE reported the launch of 1.62M options under the Annual Stock Option plan.
- January 29, 2010: TIE announces that it has published the Company’s 2009 Annual Report.
- February 17, 2010: TIE reports Q1 trading update and announcement Annual General Meeting of Shareholders.
- March 1, 2010: TIE reported the conversion of Convertible Bonds into shares of the Company for an amount of € 476k, representing 4,760,000 ordinary shares.
- March 30, 2010: TIE reported the independent value proposition of the Company as made by Investablish B.V.
- April 6, 2010: TIE reported that it exercised the 24.5% option on the shares of MamboFive B.V., TIE holds 100% of the shares in MamboFive B.V.
- May 25, 2010: TIE publishes its first half year 2010 for the 6 months ended March 31, 2010.
- July 9, 2010: TIE reported that the court has come to a ruling in the Samar case. All claims by Samar have been granted and TIE is ordered to pay full damages.
- August 18, 2010: TIE reports the third quarter 2010.
- August 31, 2010: TIE reported the issue of Convertible Bonds amounting to € 870k. The proceeds will be reserved for the outcome of current legal proceedings of the Samar case.
- November 10, 2010: TIE reported that the credit facility with Rabobank will not be extended.
Financial and Cash Position
During Q4 2010 an amount of € 870k was added to the equity position of the Company as result of the issue of Convertible Bonds. CEO Jan Sundelin participated for an amount of
€ 30k, Supervisory Board members Peter van Schaick, through Alto Imaging Group NV participated for an amount of € 400k and Erik Honée for an amount of € 100k.
Shareholders’ Equity amounts to € 2,661k on September 30, 2010 (€ 2,417k on September 30, 2009). Equity per September 30, 2010 amounts to € 4,026k (€ 4,078k per September 30, 2009) including Convertible Bonds amounting to € 1,365k (€ 1,661k per September 30, 2009).
On September 30, 2010 the Company held a positive cash and cash equivalents position of € 327k (September 30, 2009 € 457k). The credit facility of € 350k was used for an amount of € 316k (September 30, 2009 nil).
The credit facility with Rabobank will not be extended. As a result of this, the credit facility will be reduced in steps and ends on February 28, 2011.
TIE is in the process of preparing documentation allowing financial institutions to make their Sales Pitch for facilitating TIE with credit. TIE expects that the repayment of the current credit facility will not lead to cash flow issues, due to the limited size of the facility.
Due to the onetime expenses the cash flow from operating activities was € -677k (2009: € 568k), if adjusted for the for the one time (cash) expenses, amounting to € 1,237k, the 2010 normalized operating cash flow was € 560k.
Amortization of Goodwill
The Company decided not to make longer use of the products obtained in 2005 through the acquisition of Nspyre B.V. Resulting from this decision an amount of €171k was amortized during Q4_2010.
Annual Accounts
The financial results of the Company are unaudited. The audit of the Company's Financial Statements will not be completed until the publication thereof in January 2011.
Samar claim
On July 7, 2010 the court granted unexpected all claims to Samar and TIE was ordered to pay full damages. On August 31, 2010 the Company paid to Samar an amount of € 804k consisting of the claim, legal interest and legal costs. The hit to our Q4_2010 results amounted to € 697k, net off the Companies own legal costs. As the Company has filed an appeal, the Company has set up a provision for the foreseeable legal costs.
Pending Litigations
Since December 2007 the Company has been involved in discussions and subsequently in legal proceedings with Samar. All claims in the summary proceedings were instantly dismissed at the court hearing of February 15, 2008. On July 7, 2010, the court of Haarlem unexpectedly granted all claims by Samar. In Q4_2010 TIE has paid damages, this amount may be adjusted upwards or downwards in the procedure regarding the assessment of the damages. TIE has filed an appeal.
On November 20, 2009, TIE initiated an investigation on a potential infringement on the Content Syndication Platform. On May 7, 2010 the judge pronounced a ruling in summary proceedings, dismissing TIE’s claim and ruling payment of the costs of litigation of the defendants. TIE has lodged an appeal against the ruling.
Consolidated Balance Sheet
At September 30
Assets | |||||
(EUR x 1,000) | 2010 | 2009 | |||
(unaudited) | |||||
Non Current Assets | |||||
Intangible fixed assets | |||||
Goodwill | 2.402 | 2.546 | |||
Other intangible fixed assets | 1.492 | 1.334 | |||
3.894 | 3.880 | ||||
Tangible fixed assets | |||||
Property, Plant and Equipment | 164 | 180 | |||
164 | 180 | ||||
Financial fixed assets | |||||
Deferred Tax Asset | 1.477 | 1.780 | |||
Loans and Receivables | 38 | 40 | |||
1.515 | 1.820 | ||||
Total Non Current Assets | 5.573 | 5.880 | |||
Current Assets | |||||
Non Current Assets hold for sale | - | 198 | |||
Trade Debtors and Other Receivables: | |||||
Trade Debtors | 1.839 | 1.817 | |||
Taxation and Social Security | 4 | 10 | |||
Other Receivables and Prepayments | 795 | 714 | |||
2.638 | 2.541 | ||||
Cash and Cash Equivalents | 327 | 457 | |||
Total Current Assets | 2.965 | 2.998 | |||
Total Assets | 8.538 | 9.076 | |||
Consolidated Balance Sheet
At September 30
Liabilities | |||||
(EUR x 1,000) | 2010 | 2009 | |||
(unaudited) | |||||
Equity | |||||
Shareholders’ Equity | 2.661 | 2.417 | |||
Convertible Bonds | 1.365 | 1.661 | |||
Capital and Reserves attributable | |||||
to equity holders of TIE | 4.026 | 4.078 | |||
Minority Interest | - | - | |||
Total Equity | 4.026 | 4.078 | |||
Non Current Liabilities | |||||
Provisions | 11 | 8 | |||
Total Non Current Liabilities | 11 | 8 | |||
Current Liabilities | |||||
Provisions short term | - | 19 | |||
Settlement Liabilities short term | - | 94 | |||
Short Term Debt | 100 | 805 | |||
Credit Facility used | 316 | - | |||
Trade Creditors | 435 | 494 | |||
Deferred Revenue | 1.911 | 1.981 | |||
Affiliated Companies | - | 4 | |||
Taxation and Social Security | 229 | 201 | |||
Other Payables and Accruals | 1.510 | 1.392 | |||
Total Current Liabilities | 4.501 | 4.990 | |||
Total Equity and Liabilities | 8.538 | 9.076 |
Consolidated Income Statement
For the year ended September 30
(EUR x 1,000) | 2010 | 2009 | |||
(unaudited) | |||||
Revenues | |||||
Licenses | 1497 | 1212 | |||
Maintenance and Support | 2963 | 3243 | |||
Consultancy | 2378 | 2458 | |||
Software as a Service | 3377 | 3472 | |||
Total Revenues | 10.215 | 10.385 | |||
Other Income | 798 | 805 | |||
Total Income | 11.013 | 11.190 | |||
Direct Purchase Costs | (1.307) | (1.367) | |||
Income Net of Direct Purchase Costs | 9.706 | 9.823 | |||
Operating Expenses | |||||
Employee Benefits | 6.769 | 6.496 | |||
Onetime expenses | 1.237 | - | |||
Depreciation and Amortization | 503 | 360 | |||
Amortization of Goodwill | 171 | - | |||
Other Operating Expenses | 2419 | 2.208 | |||
Total Operating Expenses | 11.099 | 9.064 | |||
Operating Income | (1.393) | 759 | |||
Interest and other Financial Income | 2 | 15 | |||
Interest and other Financial Expense | (64) | (48) | |||
Income before Tax | (1.455) | 726 | |||
Corporate Income Tax | (471) | (196) | |||
Income after Tax | (1.926) | 530 | |||
Other Comprehensive Income | |||||
Exchange differences on translating of foreign operations | 163 | 10 | |||
Total Comprehensive Income | (1.763) | 540 | |||
Attributable to Shareholders: | |||||
Income after Tax | (1.926) | 530 | |||
Comprehensive Income | 163 | 10 | |||
Net result per share – basic | (0,02) | 0,01 | |||
Weighted average shares outstanding – basic (thousands) | 77.486 | 58.346 | |||
Net result per share – diluted | (0,02) | 0,01 | |||
Weighted average number of shares fully diluted (thousands) | 80.060 | 72.397 |
Consolidated Cash Flow Statement
For the 12 months ended 30 September
(EUR x 1,000) | 2010 | 2009 | ||
(unaudited) | ||||
Income before tax | (1.455) | 726 | ||
Non Cash Adjustments: | ||||
Share based payments expense | 292 | 292 | ||
Depreciation and amortization | 503 | 360 | ||
Amortization of Goodwill | 171 | - | ||
Increase (decrease) provisions for redundancy, legal and rent building | (94) | (635) | ||
Increase (decrease) provisions | (23) | 24 | ||
Other movements | 5 | 2 | ||
854 | 43 | |||
Working Capital Movements | ||||
(Increase) decrease in debtors | (43) | (281) | ||
(Decrease) increase in deferred revenue | (156) | 147 | ||
(Decrease) increase in current liabilities | 102 | (69) | ||
(97) | (203) | |||
Cash generated (applied) in operations | (698) | 566 | ||
Interest paid | (34) | (13) | ||
Interest received | 2 | 15 | ||
Income taxes paid | 53 | - | ||
Net Cash flow from operating activities | (677) | 568 | ||
Disinvestments in intangible fixed assets | 198 | - | ||
Disinvestment in financial fixed assets | 2 | (18) | ||
Investments in intangible fixed assets | (608) | (572) | ||
Disinvestments tangible fixed assets | - | - | ||
Investments in tangible fixed assets | (88) | (87) | ||
Acquisition of a subsidiary net of cash acquired | - | (332) | ||
Dividend paid MamboFive to old shareholders | - | (191) | ||
Net Cash flow generated / (used) in investing activities | (496) | (1.200) | ||
Increase (decrease) bank overdrafts/loans short term | 50 | (439) | ||
Issue of Convertible bonds | 870 | 361 | ||
Costs of shares and bonds issued | - | - | ||
Shares issued and share premium | 107 | 80 | ||
Net Cash flow generated / (used) by financing activities | 1.027 | 2 | ||
Net increase (decrease) in Cash and Cash Equivalents | (146) | (630) | ||
Currency Exchange Rate Difference on opening balance Cash and Cash Equivalents | 16 | (1) | ||
Opening balance Cash and Cash Equivalents | 457 | 1.088 | ||
Closing balance Cash and Cash Equivalents | 327 | 457 | ||
Net Cash flow from operating activities | 677- | 568 | ||
Onetime expenses | 1.237 | - | ||
Cash Flow from onetime expenses | 1.237 | - | ||
Normalized Net Cash Flow from operating activities | 560 | 568 |
Consolidated Income Statement
For the 3 months ended September 30
(EUR x 1,000) | 2010 | 2009 | ||
(unaudited) | ||||
Revenues | ||||
Licenses | 245 | 381 | ||
Maintenance and Support | 751 | 775 | ||
Consultancy | 566 | 596 | ||
Software as a Service | 941 | 861 | ||
Total Revenues | 2.503 | 2.613 | ||
Other Income | 110 | 189 | ||
Total Income | 2.613 | 2.802 | ||
Direct Purchase Costs | (354) | (326) | ||
Income Net of Direct Purchase Costs | 2.259 | 2.476 | ||
Operating Expenses | ||||
Employee Benefits | 1.645 | 1.571 | ||
Onetime expenses | 837 | - | ||
Depreciation and Amortization | 136 | 112 | ||
Amortization of Goodwill | 171 | - | ||
Other Operating Expenses | 573 | 574 | ||
Total Operating Expenses | 3.362 | 2.257 | ||
Operating Income | (1.103) | 219 | ||
Interest and other Financial Income | 2 | 4 | ||
Interest and other Financial Expense | (22) | (30) | ||
Income before Tax | (1.123) | 193 | ||
Corporate Income Tax | (189) | 73 | ||
Income after Tax | (1.312) | 266 | ||
Other Comprehensive Income | ||||
Exchange differences on translating of foreign operations | (222) | (100) | ||
Total Comprehensive Income | (1.534) | 166 | ||
Attributable to Shareholders: | ||||
Income after Tax | (1.312) | 266 | ||
Comprehensive Income | (222) | (100) | ||
Net result per share – basic | (0,02) | 0,00 | ||
Weighted average shares outstanding – basic (thousands) | 82.202 | 64.907 | ||
Net result per share – diluted | (0,02) | 0,00 | ||
Weighted average number of shares fully diluted (thousands) | 83.160 | 84.424 |
Segment info
For the three months ended September 30, 2010
The Netherlands |
North America |
Rest of World | Holding and Eliminations | Total | |
Revenues | |||||
Licenses | 49 | 106 | 90 | - | 245 |
Maintenance and Support | 211 | 431 | 109 | - | 751 |
Consultancy | 298 | 171 | 97 | - | 566 |
Software as a Service | 403 | 298 | 240 | - | 941 |
Total Revenue | 961 | 1.006 | 536 | - | 2.503 |
Other Income | 121 | 12- | 1 | - | 110 |
Total Income | 1.082 | 994 | 537 | - | 2.613 |
Direct Purchase Costs | 158 | 132 | 64 | - | 354 |
Income Net of Direct Purchase Costs | 924 | 862 | 473 | - | 2.259 |
Operating Expenses | |||||
Employee Benefits | 624 | 623 | 242 | 156 | 1.645 |
Onetime expenses | 697 | - | - | 140 | 837 |
Depreciation and Amortization | 88 | 35 | 6 | 7 | 136 |
Amortization of Goodwill | - | - | 171 | - | 171 |
Other Operating Expenses | 211 | 134 | 117 | 111 | 573 |
Total Operating expenses | 1.620 | 792 | 536 | 414 | 3.362 |
Operating Income | 696- | 70 | 63- | (414) | 1.103- |
Interest and Other Financial Income | 2- | 1 | 1 | 2 | 2 |
Interest and other Financial Expense | (11) | (5) | - | (6) | (22) |
Income before Tax | 709- | 66 | 62- | (418) | 1.123- |
Corporate Income Tax | 12- | (165) | (2) | 10- | (189) |
Income after Tax | 721- | (99) | (64) | (428) | (1.312) |
For the three months ended September 30, 2009
The Netherlands |
North America |
Rest of World | Holding and Eliminations | Total | |
Revenues | |||||
Licenses | 255 | 78 | 48 | - | 381 |
Maintenance and Support | 220 | 440 | 115 | - | 775 |
Consultancy | 277 | 142 | 177 | - | 596 |
Software as a Service | 465 | 221 | 175 | - | 861 |
Total Revenue | 1.217 | 881 | 515 | - | 2.613 |
Other Income | 189 | - | - | - | 189 |
Total Income | 1.406 | 881 | 515 | - | 2.802 |
Direct Purchase Costs | 217 | 103 | 6 | - | 326 |
Income Net of Direct Purchase Costs | 1.189 | 778 | 509 | - | 2.476 |
Operating Expenses | |||||
Employee Benefits | 672 | 522 | 235 | 142 | 1.571 |
Depreciation and Amortization Expense and Impairment Losses | 62 | 47 | 1- | 4 | 112 |
Other Operating Expenses | 297 | 101 | 87 | 89 | 574 |
Total Operating expenses | 1.031 | 670 | 321 | 235 | 2.257 |
Operating Income | 158 | 108 | 188 | (235) | 219 |
Interest and Other Financial Income | 4 | - | - | - | 4 |
Interest and other Financial Expense | - | - | - | (30) | (30) |
Income before Tax | 162 | 108 | 188 | (265) | 193 |
Corporate Income Tax | 2 | (166) | (6) | 243 | 73 |
Net Income | 164 | (58) | 182 | (22) | 266 |
Profile TIE
TIE (NYSE Euronext: TIE Holding) delivers innovative web centric, software based solutions that enable all trading partners in the supply chain to work seamlessly together on the major E-commerce processes of marketing, sales and fulfillment. With its TIE Kinetix concept, it provides a Total Integrated E-commerce process, embracing three innovative platforms for Business Integration (including e-invoicing, XML/EDI data synchronization), Content Syndication and E-commerce. The Total Integrated E-commerce solutions minimize the energy needed for a transaction lifecycle throughout the supply chain giving organizations the advantage to reduce cost and maximize revenue and profit.
TIE has more than two decades of experience in developing and implementing global E‑commerce standards. TIE is a listed company with offices in the United States, Australia, France and the Netherlands.
Further information:
TIE Holding N.V.
Jan Sundelin, CEO
Antareslaan 22-24
2132 JE Hoofddorp
The Netherlands
T: +31-20-658 93 33
F: +31-20-658 90 01
E: info@TIEHolding.com
W: www.TIEHolding.com
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