TIE Kinetix: First Half Year 2017

May 17, 2017 -Breukelen, the Netherlands

Press release interim consolidated financial statements TIE KINETIX N.V.
Financial information in this interim report is unaudited

TIE Kinetix: First Half Year 2017

First half year results (period Oct, 1, 2016 – March 31, 2017).

• SaaS and hosting revenues grow 5,5% to € 5.078k  (H1 2016: € 4.812k)
• Consultancy revenue declines 15,3% to € 2.711k (H1 2016: € 3.202)
• Total revenue declines 4,4% to € 9.720k (H1 2016: € 10.174k)
• EBITDA amounts to € 837k (H1 2016: € 706k)
• No one-time costs
• EBIT amounts to € 125k (H1 2016: € 98k)
• Order Intake amounts to € 6.715k (H1 2016: € 7.085k)

Highlights

Table 1: Operational Performance

Table 2: EU Projects and Total Performance

TIE Kinetix, the leading provider of Software as a Service managed solutions for Integration, Analytics, Demand Generation and E-Commerce today released interim results for the first half year of its fiscal year 2017, covering the period October 1, 2016 – March 31, 2017. 

Revenue (excl. EU projects)
Revenue - including a positive currency effect of € 88k -, declined with € 235k or 2,4% to € 9.605k (H1 2016: € 9.842k), primarily caused by a decline in Consultancy revenue with € 491k or 15,3% to € 2.711k (H1 2016: € 3.202k). The underlying SaaS revenue grew with € 266k or 5,5% to € 5.078k (H1 2016: € 4.812k). 

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. In France, an upgrade program to our latest integration suite of products fuelled our sales. In the first six months, our Business Integration revenue increased with 4,7% to € 5.512k (H1 2016: € 5.264), driven by 15% higher SaaS revenue at € 2.512k (H1 2016: € 2.185k).
• E-commerce: our E-commerce proposition delivers webshop back-end solutions with full back office integrations. Our largest customer is T-Mobile, for who we deliver various webshop integrations in the Netherlands. Our E-commerce revenue stabilized at € 1.012k (H1 2016: € 1.096k).
• Demand Generation: winning new customer business remains challenging in Demand Generation, even though the Google Ads proposition looks promising. In addition, the termination of various German portals caused further erosion of the Demand Generation revenue base. In the first six months, our Demand Generation revenue, therefore, decreased with almost 20% € 1.790k (H1 2016 € 2.105k).
• Business Analytics: in FY 2016 Google decided to discontinue selling Google search appliance in the license model, which obviously negatively impacted revenue plans at TIE Kinetix in the second half of 2016 and in Q1, 2017. However, the Analytics business picked up nicely in the second quarter of the first half year 2017, following the launch of the new Google suite of products ‘analytics 360’ early 2017. Order intake is growing and promises further strengthening of this business in the next quarters. The Analytics reported revenue came in at € 1.648k (H1 2016: € 1.807k).

Jan Sundelin (CEO) said: “with the introduction of FLOW, TIE Kinetix made the strategic choice to fully focus on the development, and sales and marketing of FLOW applications. No investments will be made in customers that have no potential to become users of our FLOW platform. At the same time, TIE is freeing up resources to further invest in strategic accounts. Certain non-strategic customers may be terminated and/or not extended. During a temporary transition period, sales mix changes may cause top line revenue decline. The development of FLOW is on track and we are starting to get commercial traction with our FLOW platform. Our sales organization is completely focused on selling FLOW and customers are reacting positively towards our proposition. We expect to be able to land more sizable FLOW sales in the subsequent quarters.” 

(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
e-mail: Michiel.Wolfswinkel@TIEKinetix.com

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, which are 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 has offices in the United States, the Netherlands, France, Germany, United Kingdom and Australia.

Submitted by Investor Relations on Wed, 5/17/2017