May 25 - 2010 - Hoofddorp, The Netherlands
TIE Holding N.V. (“TIE”) hereby publishes its First half year 2010 Unaudited Condensed Consolidated Interim Financial Statements, for the 6 months ended March 31, 2010.
TIE reports First half year 2010 Total Income of € 5.62m (6M_2009: € 5.53m) and EBIT of € -234k (6M_2009: EBIT of € 338k) and a Total Comprehensive Income of € -223k (6M_2009: € 344k).
In the continued fragility of world markets, our total Income, for the first six months 2010, in North America increased by 9% (in $). In the Netherlands income declined by 1% and in the Rest of World (ROW) it increased by 14% compared to the first six months last year. The foreign currency rate effect (EUR/USD) on Total Income for the First six months had a negative effect of € 193k.
In the First six months, License Income increased by 71%, while Consultancy Income decreased by 4%, Maintenance Income decreased by 13% and SaaS Income decreased by 13%, compared to the first six months of FY 2009. Other Income, increased by 51% resulting from the sale of Edge software to a third party (net € 176k) and participation in European Commission Supported Projects yielded € 386k (2009:€ 338k EU projects and € 30k other income).
The Company experienced a difficult second quarter 2010 (Jan-March) resulting from customers that went out of business, an unexpected decrease in messaging/hosting services and termination of several large volume contracts. Expected new sizable orders for our Content Syndication and E-commerce platform were unfortunately delayed by several major customers.
Total Operating Expenses increased by € 776k compared to first six months 2009. The depreciation of the USD against the EURO had a positive effect on costs of € 132k. A provision of € 250k had been made for legal and redundancy costs and for legal expenses to protect the IP rights of the Company. Bad debts expenditure for the period amounted to € 120k (2009: -€ 44k).
In executing our growth strategy, the Company hired new sales staff for growing E-commerce and Content Syndication markets.
Shareholder’s Equity amounted to € 3.52m (at September 30, 2009 € 2.42m), with Equity totaling to € 4.01m (At September 30 2009: € 4.09m).
The Company generated a positive net cash flow, during the first six months 2010, from operating activities of € 495k (first six months 2009: € 609k).
The net cash position of the Company per March 31, 2010 amounted to € 517k (March 31, 2009: € 569k).
Jan Sundelin, CEO said: ’The Company’s results were clearly disappointing as the investment in new sales staff and marketing expenses for our E-commerce and Content Syndication Platform has not yet been realized despite serious interest from potential customers. As a result of the continued economic uncertainty we experienced a decline in volume of our Business Integration hosting/messaging business as well as termination of contracts and the fallout of bankrupt companies. One time redundancy expenses were taken as well as legal expenses, in order to protect our IP rights. Despite these situations we expect that the interest for E-commerce and Content Syndication will convert into new business. Based on our review of the expected order intake, the management of the Company does not consider taking special measures’.
Further details with respect to these First Six Months Results can be found in the separate Condensed Consolidated Interim Financial Statements for the six month period ended on March 31, 2010, which are attached hereto and are reported in accordance with IAS 34 Interim Financial Reporting. These Condensed Consolidated Interim Financial Statements reported therein are unaudited.
TIE (NYSE Euronext: TIE Holding) delivers 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 TIE Kinetix, TIE provides a Total Integrated E-commerce concept, 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 which enables our customers 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.
TIE Holding N.V.
Jan Sundelin, CEO
2132 JE Hoofddorp
T: +31-20-658 93 33
F: +31-20-658 90 01