F-Secure Corporation Interim report Q1 2009Sales & Marketing Reseach & Development Administration....
Transcript of F-Secure Corporation Interim report Q1 2009Sales & Marketing Reseach & Development Administration....
F-Secure CorporationInterim report Q1 2009(Unaudited)
April 23, 2009
Kimmo Alkio, President and CEO
Interim Report Q12009 – April 23 , 2009 Page 2
Contents
• Highlights in Q1 2009
• Market review
• Outlook
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Q1 Highlights
• Solid growth
• Total revenues 30.6m; growth of 15%
(Q108: 26.6m)
• Service Provider revenues 14.2m, growth
of +30%
• Other channels 16.5m, growth of 5%
• Strong profitability & positive cash
flow
• EBIT 6.1m, 20% of revenues
(Q108: 5.3m)
• EPS EUR 0.03 (EUR 0.03)
• Cash flow of 3.1m positive (Q108: 6.1m)
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Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109
Revenues EBIT
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Q1 Costs
• Cost level 22.3m; +14% YoY
(according to guidance)
• Capitalization of research and
development costs; impact on
Q1 ~-0.2m
• Investment into future growth
continued
• Focus on ISP professional services
and new service innovation
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Sales & Marketing Reseach & Development Administration
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Q1 Operating profit
• Continued strong profitability
• Q1 EBIT 6.1m (5.3m); 20% of revenues; growth of 14% from Q108
• Equity ratio
• Mar 31, 2009 58% / (71%)*
• Dec 31, 2008 70%2)
• Sep 30, 2008 83%
*) If dividend was paid in March
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Development of EBIT margin
• Continue to prioritise growth over short
term profitability
• Average EBIT has gradually improved
• During the next three years, the Group
seeks the EBIT level to be around 25%.
0%
5%
10%
15%
20%
25%
30%
EBIT% Ave (4 qrts)
Graph shows the EBIT excluding the non-recurring impairment
loss of Network Control in 4Q06 and the gain from the sale of
Network control technology in 4Q08
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Q1 Cash position
• Cash flow from operations for Q1
was 3.1m (Q108: 6.1m)
• Impacted by temporary change in
working capital
• Cash position strong
• Market value of liquid assets on
March 31, 2009: 64.3m (90.3m)
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Dividend Cash position
Capital repaymentDividend pay-out
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Q1 Deferred Revenues
• Deferred revenues were 37.8m
• Deferred revenues accrued in the
balance sheet
• Mar 31, 2009 37.8m
• Dec 31, 2008 37.2m
• Sep 30, 2008 33.7m
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Deferred Revenues
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39 %
43 %
9 %9 %
Regional Revenue Split
1-3/20081-3/2009
34 %
45 %
10 % 11 %
Finland & Scandinavia Rest of Europe
North America Rest of World
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Service Provider growth
• Q1 revenues: 14.2m (10.9m)
• Growth of 30% YoY
• 46% of total Q1 revenues
• The Group’s primary target is to
strengthen the co-operation with its
existing ISP partners
• Currently over 190 partners in more than
40 countries
• The online back-up roll-out continues 0
2000
4000
6000
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12000
14000
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kE
UR
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Species Event
•SPECIES is an
executive
worldwide
conference for
.
• Global event for ISP partners
• Focus on improvements of co-operation
• In 2009
• 100 participants
• 53 partners
• 20 countries
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F-Secure’s service provider partners,examples
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Q1 Mobile Security Business
• Co-operation with device
manufacturers continued
• Smartphone security solution:
F-Secure Mobile Security 5
• Anti-theft feature including easy remote
locking and wiping of the confidential data
if the phone is lost or stolen
• Available for a majority of the currently
shipping or upcoming Nokia S60 3rd
edition devices
• Operator partnerships, co-operation
further strengthened
• Operator partnerships with Vodafone UK,
KPN, TDC, Netia and CSL.
• Co-operation with the operators T-Mobile
International, TeliaSonera Group, Orange,
Swisscom and Elisa continued as
planned
• Steady growth in trial users and in
revenues
• Revenues included in the revenues from
the traditional channels
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Recent product announcements
• Mobile Security 5
• Includes anti-theft feature including easy
remote locking and wiping of confidential
data if the phone is lost or stolen
• F-Secure PSB 4.0
• Protection Service for Business (PSB) –
a comprehensive Security as a Service
solution specially designed for the needs
of small and medium-sized companies.
• PSB 4.0 provides a faster than ever
response to emerging new threats,
requires less user involvement, and
delivers significant performance
improvements.
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Number of personnel
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Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109
Sales and Marketing Research and Development Administration
• At the end of Q1: 728
(end of Q108: 602)
• During Q1 net increase of 10 fellows
from the end of Dec. 08
• Focus in global Sales & Marketing
and Research & Development
personnel
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Contents
• Highlights in Q1 2009
• Market review
• Outlook
Interim Report Q12009 – April 23 , 2009 Page 17
Enterprise Antivirus
26%
Consumer Antivirus
27%
E-Mail Security Boundary
8%
URL Filtering
4%
Web Access Management
7%
User Provisioning
9%
Other Security Software
15%
SIEM
4%
Source: Gartner, 2008
Security is a good place to be
Global security
market split, 2009
100% = $11.3B
Global security market
is a $10b+
industry
F-Secure is present in
the segments making
the majority of the
vendor revenue
(SIEM = Security Incident and Event
Management)
F-Secure present
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Security grows twice as fast as software in general
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
16 %
2008 2009 2010 2011 2012
Security software (CAGR 2007-2012: 9.8%)
Software total (CAGR 2007-2012: 5.0%)
Source: IDC, 2008
Western European security software forecast, growth rates 2008-2012
CAGR = Compound Annual Growth Rate
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Contents
• Highlights in Q12009
• Market review
• Outlook
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Growth!• Continue to exceed average market growth
• Scalability through the strong ISP-network
• Mobile partnerships and pre-installations
Software as a Service
Long-term objectives
Financial position and
efficiency
• Expand Software as a Service business model
• Maximise Security as a Service business
• Expansion possibility also through M&A
• Targeted investments for future growth
• Profitability, cash flow and cost management
• Efficient capital structure
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Short-term outlook
1) The numbers are estimates that are based on the sales pipeline at the time of publishing,
existing subscriptions and support contracts, previous experience
• During the year 2009 the Group seeks to continue to exceed the average
market growth
• Q2 2009 outlook 1)
• Revenues 30-32m
• Cost level below 23m