First Half Year Results (period Oct, 1, 2015 – March 31, 2016)
May 18th, 2016 - Breukelen, the Netherlands
- SaaS and hosting revenues grow 7,2% to € 4.812k (H1 2015: € 4.485k)
- Consultancy revenue grows 2,2% to € 3.202k (H1 2015: € 3.133)
- Total revenue, excl. EU projects, increase by 3,6% to € 9.842k (H1 2015: € 9.495k)
- EBITDA, excl. EU projects, amounts to € 1.009k (H1 2015: € 380k)
- EBITDA, incl. EU projects, amounts to € 701k (H1 2015: € 353k)
- No one-time costs
- EBIT, incl. EU projects, amounts to € 92k (H1 2015: - € 2.051k)
- Three year contract value, incl. EU projects, amounts to € 27.900k (H1 2015: € 31.848k)
Table 1: Operational performance
Table 2: EU projects and total performance
TIE Kinetix, the leading provider of cloud-managed Integration, Analytics, Demand Generation and E-Commerce services today released interim results for the first half year of its fiscal 2016, covering the period October 1, 2015 – March 31, 2016.
EU subsidies repayment
As at March 31st the initial claim of € 705k has been fully repaid plus an amount of € 10k in interest. No further claims have been received. On December 30, 2015 TIE Kinetix issued 170.536 new shares to cover EU damages:
- 15.397 shares to complete the initial emission dated March 31, 2015;
- 49.100 shares as agreed guarantee fee;
- 106.039 shares for expected remaining EU Project damage costs and costs of support.
In return for the shares issued TIE Kinetix has received a total amount of € 652.976.
Revenue (excl. EU projects)
Revenue grew with € 347k or 3,6% to € 9.842k (H1 2015: € 9.495k), including a currency effect of € 250k.
SaaS revenue grew with € 327k or 7,2% to € 4.812k (H1 2015: € 4.485k), including a currency effect of € 99k.
Consultancy revenue grew with € 69k or 2,2% to € 3.202k (H1 2015: € 3.133k), including a currency effect of € 48k.
The following highlights the developments in our four business lines:
- Business Integration: we continue to see a strong demand for our offering particularly in the Netherlands and in the US. Conversion of existing license based customers into our SaaS offering drives our growth rate beyond market growth rate in the Netherlands. In the first six months, our Business Integration revenue increased with 22,5% to € 5.502k (H1 2015: € 4.490k), fuelled by 48% higher consultancy revenue at € 1.306k (H1 2015: 881k) and 41,5% higher SaaS revenue at € 2.411k (H1 2015: € 1.703k).
- E-commerce: our E-commerce proposition delivers webshop back-end solutions with full back office integrations. Our customers are typically large telecommunications companies such T-Mobile. In the first half year KPN decided to consolidate certain of its labels as a result of which TIE Kinetix lost KPN-Hi and KPN-Telfort as a customer. Our E-commerce revenue declined with 49,4% to € 889k (H1 2015: € 1.756k).
- Demand Generation: in the US we experience a reduction in customer win rate as the competition seems better positioned to engage in bespoke development. New implementations in Europe are the fundament under growth of our Demand Generation business. In the first six months, our Demand Generation revenue increased with 5,9% to € 2.230k (H1 2015 € 2.105k).
- Business Analytics: in order to stimulate customers moving to cloud based solutions, Google has suspended the availability of the Google Search Appliance in the license model. Even though this has slowed down the growth of our Analytics business, we are still able to book a 30,9% growth to € 1.807k (H1 2015: € 1.380k).
Jan Sundelin (CEO) said: “We are happy to see growth numbers of our SaaS revenue, replacing the loss of customer KPN at the end of FY 2015. With the EC matters contained we have been able to focus on improving our operations and focusing on our core business: delivering excellent SaaS propositions in the supply chain. We have focused our development team towards our new product FLOW, launched at our AGM end of March. With FLOW, TIE Kinetix will be able to bring together the functionality from all its business lines and platforms into one single offering. We expect significant upsell and cross sell opportunities in our current customer base which today only consist of customers served with products from one single business line platform.”
(For the full version of the press release, please download from the link below.)
This document may contain expectations about the financial state of affairs and results of the activities of TIE Kinetix as well as certain related plans and objectives. Such expectations for the future are naturally associated with risks and uncertainties because they relate to future events, and as such depend on certain circumstances that may not arise in future. Various factors may cause real results and developments to deviate considerably from explicitly or implicitly made statements about future expectations. Such factors may for instance be changes in expenditure by companies in important markets, in statutory changes and changes in financial markets, in the EU grant regime, in the salary levels of employees, in future borrowing costs, in future take-overs or divestitures and the pace of technological developments. TIE Kinetix therefore cannot guarantee that the expectations will be realized. TIE Kinetix als refuses to accept any obligation to update statements made in this document.
For further information, please contact:
TIE Kinetix N.V.
Jan Sundelin (CEO) or Michiel Wolfswinkel (CFO)
Phone: +31 (0) 88 3698060
About TIE Kinetix
TIE Kinetix transforms the digital supply chain by providing Total Integrated E-Commerce solutions. These solutions maximize revenue opportunities by minimizing the energy required to market, sell, deliver and optimize online. Customers and partners of TIE Kinetix constantly benefit from innovative, field-tested, state-of-the-art technologies, backed by over 25 years of experience and prestigious awards. TIE Kinetix makes technology to perform, such that customers and partners can focus on their core business.
TIE Kinetix is a public company (Euronext Amsterdam: TIE), and has offices in the United States, the Netherlands, France, Germany, United Kingdom and Australia.
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Submitted by Investor Relations on Wed, 05/18/2016
Press release interim consolidated financial statements TIE Kinetix N.V.
Financial information in this interim report is unaudited
END OF PRESS RELEASE