Trading update Q4: Revenue up 14% for the year 2013 and down 4% for the fourth quarter. Impairment loss and one time effects impact net result.

TIE Kinetix N.V. (“TIE”) reports the following highlights with regard to Q4 of 2013 (July 1, 2013 – September 30, 2013) and full year 2013 (October 1, 2012 – September 30, 2013). 

Breukelen, The Netherlands

Operational Performance:

  • Revenue for the Q4, 2013 amounts to € 3,323k, a decrease of 3.7% compared to the same period in 2012 (€ 3,451k) caused by the loss of customer CNETearlier in the year.
  • Net Income for the Q4, 2013 amounts to a loss of € 690k, which includes an impairment loss of € 679k. (Q4, 2012: net income profit of €560k, consisting of an impairment gain of € 64k and an operational profit of € 448k).
  • SaaS revenue is € 1,230k for Q4, 2013 (37% of revenue), a decrease of 1% compared to € 1,237k in the same period in 2012 (36% of revenue). Many new SaaS accounts have been signed, which has almost completely balanced the loss of CNET revenue earlier in the year.
  • Revenue for 2013 amounts to € 14,293k an increase of 14% compared to 2012 (€12,494k).
  • Net Income for 2013 amounts to a loss of €1,280k, compared to a profit of € 652k for 2012; this partly caused by higher one time legal fees (€ 120k), office integration and moving costs (€ 77k), higher costs of investor relations activity (€ 105k), severance payments and temporary staff (€ 203K), other non-recurring costs (€ 46k) and an impairment loss (€ 679k).
  • The net cash flow from operating activities for 2013 amounts to € 992k (2012: € 1,030k).

 
Mr. Jan Sundelin, CEO of TIE, comments:
“The 2012 acquisition of Ascention did not bring TIE what we expected. Sales performance both on the acquired product suite and on the TIE products was disappointing and key staff was lost after the acquisition. We have taken action to improve the functionality of the acquired products and have rolled out a marketing campaign for the TIE products. Our action plan will result in improved performance in 2014.
 
The loss of customer CNET has made us reconsider our solution offering in the US. With our modular packaging of the CSP solution, we are now able to speed up considerably our US sales whilst at the same time we are reducing the sales cycle. Our lead generation program looks promising and in Q4, 7 new accounts have been signed.
 
In The Netherlands our business developed well as our E-commerce revenue continues to steadily increase with 16% this year. The relation with our large customers KPN and T-Mobile developed according to plan.

The acquisition of TFT will bring the required expansion for our company. TFT has valuable knowledge on hosting large customers in a complex environment and has ample experience with Google Search Engine Optimization. We will add this knowledge to the current TIE solutions. We have comprised an elaborate integration plan covering both the front end of our business, selling TIE products in the TFT customer base, the back office of our operations.”  
 
(For the full version of the press release, please download from the link below.)

 
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 and deliver 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 is a public company (NYSE Euronext: TIE Holding), and has offices in the United States, the Netherlands, France, Australia, UK, Spain, Germany, Austria and Switzerland.
 
For more information, please contact:
 
TIE Kinetix N.V.
Jan Sundelin, CEO
De Corridor 5d
3621 ZA Breukelen
The Netherlands
 
T:      +31-88-369-8000
E:       info@TIEKinetix.com
W:      http://www.TIEKinetix.com
 
 
Follow TIE Kinetix on Twitter: twitter.com/TIEKinetix
Follow TIE Kinetix on Facebook: facebook.com/TIEKinetix

Submitted by Investor Relations on Wed, 11/20/2013
 
END OF PRESS RELEASE

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