SSH COMMUNICATIONS SECURITY CORP INTERIM REPORT OCTOBER 21, 2009 AT 9:00 A.M. SSH INTERIM REPORT, JANUARY 1 - SEPTEMBER 30, 2009 July-September - Net sales totaled EUR 2.2 million, up by 13.9 % year on year (EUR 2.0 million in 7-9/2008). - Operating profit amounted to EUR 0.1 million, (an operating loss of EUR -0.3 million in 7-9/2008) including EUR 0.1 of non-recurring costs, profit EUR 0.2 million (EUR -0.4 million). January-September - Net sales totaled EUR 5.9 million, down by 6.4 % percent year on year (EUR 6.3 million in 1-9/2008). - Operating loss amounted to EUR -1.9 million (an operating loss of EUR -1.4 million in 1-9/2008) including EUR 0.7 of non-recurring costs, loss EUR -1.6 million (EUR -1.1 million). The company's financial position remained healthy, with equity ratio 78.2 % (92.8%) and liquid assets at the end of the period EUR 6.0 million (EUR 16.1 million). -------------------------------------------------------------------------------- | KEY FIGURES | | | | | | | -------------------------------------------------------------------------------- | | 7-9/ | 7-9/ | 1-9/ | 1-9/ | Change | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | % | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales (MEUR) | 2.2 | 2.0 | 5.9 | 6.3 | -6.4 | 8.5 | -------------------------------------------------------------------------------- | Operating profit/loss | 0.1 | -0.3 | -1.9 | -1.4 | -34.3 | -2.2 | | (MEUR) | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 4.9 | -16. | -32.6 | -22.7 | | -25.9 | | | | 9 | | | | | -------------------------------------------------------------------------------- | Profit/loss before | 0.2 | -0.1 | -1.6 | -0.9 | -84.3 | -1.5 | | taxes (MEUR) | | | | | | | -------------------------------------------------------------------------------- | Profit/loss (MEUR) | 0.2 | -0.4 | -1.6 | -1.1 | -44.0 | -1.8 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Return on equity, % | | | -22.9 | -4.7 | | -10.2 | -------------------------------------------------------------------------------- | Return on investment, % | | | -21.6 | -3.3 | | -7.4 | -------------------------------------------------------------------------------- | Liquid assets | | | 6.0 | 16.1 | -62.5 | 16.5 | -------------------------------------------------------------------------------- | Gearing (%) | | | -138.5 | -106.1 | | -112.8 | -------------------------------------------------------------------------------- | Equity ratio (%) | | | 78.2 | 92.8 | | 91.3 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Earnings per share | | | -0.06 | -0.04 | -43.1 | -0.06 | | (EUR) | | | | | | | -------------------------------------------------------------------------------- | Shareholders' equity | | | 0.15 | 0.53 | -71.6 | 0.51 | | per share (EUR) | | | | | | | -------------------------------------------------------------------------------- CEO's BUSINESS REVIEW During the third quarter net sales increased by 13.9 percent and the operations turned into profits. The sales include agreements with a major U.S. research agency, one of the largest U.S. banks and a mid-size U.S. retailer chain. During the reporting period, net sales decreased -6.4 percent compared to the previous year. The company's financial position is good. SSH focused its sales efforts for the enterprise class security infrastructure customers in its main markets. The company entered to the growing Managed File Transfer (MFT) market segment with the launch of a study made by an international market analysis company. The analysis company positioned SSH as a visionary MFT security vendor in its categorization. In the reporting period SSH closed its first MFT sales in the U.S and Japan with increasing prospect listing globally. The introduction of new automation and governance solutions for enterprise and business process security were well received in the market. Started at the end of the second quarter, SSH continued the decided cost cutting program. The aim is to save an estimated 15% in expenses during second half of 2009 compared to second half of 2008. The management objective is to turn the operations into profits in the second half of 2009. SSH Helsinki office move to new premises is estimated to save EUR 0.2 million in annual costs beginning from 2010. The full positive impact of the cost cutting program during 2010 is estimated at EUR 2.0 million compared to 2008 before potential company growth and expansion costs. The company launched the renewed customer strategy in its operations and continued the started development of operational efficiency. The development of company key processes was focusing on the high-impact global sales process and the assessment and improvement of a managed product development process. The financial and administrative process was focusing on improving the overall internal efficiency, management reporting and renewal of key ICT infrastructure. SSH will continue its efforts on developing the company into a sales and marketing oriented technology company with strong value-added offering and customer focus. The company is enhancing the market position in its key markets with chosen strategic channel partners to existing and new customer segments. Further, SSH will establish and strengthen the quality and excellence of systems integrator and channel partner model within markets that have the highest estimated growth potential. SSH's growth drivers are consistent and continuous improvement in operative efficiency, sustainable growth in global customer and maintenance base of G1.000 companies, new value-added security solutions for current and new markets, as well as focused development and efficiency of certified, value-added partner network. SSH sales pipeline includes large customer cases that are not part of the full year net sales estimate. SSH estimates its net sales during 2009 to remain on 2008 level, and expects the net result of the year to improve from 2008, but to remain negative. NET SALES Consolidated net sales for January-September totaled EUR 5.9 million (EUR 6.3 million), down by -6.4 %, year on year. The Americas, the ‘Europe and Rest of the World' market area and the Asia Pacific region accounted for 69.6 percent (67.5 percent), 20.4 percent (21.8 percent) and 9.9 percent (10.7 percent) of reported net sales, respectively. -------------------------------------------------------------------------------- | SSH NET SALES | | | | | | | -------------------------------------------------------------------------------- | EUR Million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | Change | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | % | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | BY SEGMENT | | | | | | | -------------------------------------------------------------------------------- | AMERICAS | 1.7 | 1.2 | 4.1 | 4.2 | -3.4 | 5.8 | -------------------------------------------------------------------------------- | APAC | 0.3 | 0.2 | 0.6 | 0.7 | -13.0 | 0.8 | -------------------------------------------------------------------------------- | EROW | 0.3 | 0.5 | 1.2 | 1.4 | -12.1 | 1.9 | -------------------------------------------------------------------------------- | SSH Group Total | 2.2 | 2.0 | 5.9 | 6.3 | -6.4 | 8.5 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | BY OPERATION | | | | | | | -------------------------------------------------------------------------------- | License sales | 1.1 | 0.8 | 2.3 | 3.0 | -22.1 | 4.0 | -------------------------------------------------------------------------------- | Maintenance | 1.2 | 1.1 | 3.5 | 3.3 | 8.0 | 4.5 | -------------------------------------------------------------------------------- | Total | 2.2 | 2.0 | 5.9 | 6.3 | -6.4 | 8.5 | -------------------------------------------------------------------------------- The majority of SSH's invoicing is U.S. dollar based. During the report period, the U.S. dollar's average exchange rate to euro strengthened approximately 10.2 percent compared to the same period a year ago. At constant currency, net sales would have decreased 13.0 percent compared to corresponding period in 2008. RESULTS AND EXPENSES Operating loss for January-September amounted to EUR -1.9 million (an operating loss of EUR -1.4 million), with net loss totaling EUR -1.6 million (a loss of EUR -1.1 million). Related to the ongoing cost saving program, EUR 0.7 million onetime expense was charged as cost during the reporting period. Related to the Helsinki office move to new premises, the company booked EUR 0.1 million onetime cost in the third quarter. Research and development expenses for the report period totaled EUR 2.8 million (EUR 2.9 million), while sales and marketing expenses amounted EUR 3.3 million (EUR 3.6 million) and administrative expenses EUR 1.8 million (EUR 1.2 million). BALANCE SHEET AND FINANCIAL POSITION The financial position of SSH remained at a healthy level during the report period, despite the capital returned to shareholders. The consolidated balance sheet total on September 30, 2009 stood at EUR 8.2 million (EUR 19.0 million), of which liquid assets accounted for EUR 6.0 million (EUR 16.1 million), or 73.2 percent of the balance sheet total. The company's interest bearing liabilities, EUR 0.1 million, comprised lease finance commitments. On September 30, 2009, gearing, or the ratio of net liabilities to shareholders' equity, was -138.5 percent (-106.1) and the equity ratio stood at 78.2 percent (92.8). The reported gross capital expenditure for the period totalled EUR 0.0 million (EUR 0.1 million). The reported financial income consisted mainly of interest on fixed-term deposits. Financial income and expenses totalled EUR 0.3 million (EUR 0.6 million). During January-September, SSH reported a negative cash flow of EUR -1.9 million (EUR -2.1 million) from business operations, and investments showed a positive cash flow of EUR 11.5 million (EUR 6.8 million). Cash flow from financing totaled EUR -8.5 million (EUR -4.3 million), mainly consisting of capital returned to shareholders. Total cash flow from operations, investments and financing was positive EUR 1.1 million (EUR 0.4 million) during the period. RESEARCH AND DEVELOPMENT Research and development expenses for January-September totaled EUR 2.8 million (EUR 2.9 million), the equivalent of 47.1 percent of net sales (46.7 percent). During the report period SSH did not capitalize any research and development expenses. HUMAN RESOURCES AND ORGANIZATION At the end of September, the Group had 63 employees on its payroll, down by 12 from the previous year, a decrease of 16 percent. At the end of the period, 59 percent of the employees worked in R&D, 22 percent in sales and marketing, and 19 percent in corporate administration. BOARD AND AUDITORS The Annual General Meeting (AGM) on March 4, 2009 re-elected Tomi Laamanen, Pyry Lautsuo, Juha Mikkonen and Tatu Ylönen to the Board of Directors. Juho Lipsanen was elected as a new member to the board. He also chairs the board. The AGM also re-elected PricewaterhouseCoopers Oy, authorized public accountants, as the company's auditor, with Henrik Sormunen, authorized public accountant, acting as the principal auditor. SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE The reported trading volume of SSH Communications Security Corp. shares totaled 3 624 965 (valued at EUR 2 918 394). The highest quotation was EUR 1.24 and the lowest EUR 0.65 The trade-weighted average share price for the period was EUR 0.81 and the share closed at EUR 0.72 (September 30, 2009). During the report period, the ownership structure of the company did not change essentially. Tatu Ylönen holds, directly and through his company, Tatu Ylönen Oy, 51.1 percent of the company's shares, Assetman Oy holds 14.6 percent and Tero Kivinen 5.1 percent. More information about the shareholding can be obtained from the company´s web site. SHARE CAPITAL AND BOARD AUTHORIZATIONS The company's registered share capital on September 30, 2009 was EUR 863 953.47 consisting of 28 798 449 shares. During the report period, SSH increased its share capital twice, based on subscriptions to the new shares under SSH's stock-option plans. In total, 2,600 new SSH shares were subscribed under the I/1999 stock option plan and 143,581 shares under I/2003 stock option plan respectively. With these subscriptions the Company's share capital was increased by EUR 4,385.43. The Annual General Meeting approved the Board of Directors' proposal to authorize the Board of Directors to decide upon the issuing of in total 5,500,000 shares in one or more tranches as share issues against payment or by giving stock options or other special rights defined in Chapter 10 Section 1 of the Finnish Companies Act, which entitle to shares either according to the shareholders' pre-emptive right to share subscription or deviating from this right. The authorization will be valid until the next Annual General Meeting, but will expire on June 30th 2010 at the latest. In addition the Annual General Meeting authorized the Board of Directors to decide upon acquiring a maximum of 2,000,000 of the company's own shares in one or more tranches, which amount corresponds approximately to seven (7) per cent of all shares of the company. The compensation to be paid for the acquired shares shall be determined on the date of acquisition on the basis of a trading rate determined for the company's share in a public trading arranged by NASDAQ OMX Helsinki Ltd. The authorization to acquire the shares shall be valid at most for eighteen (18) months after the decision of the Annual General Meeting. The Annual General Meeting decided upon the distribution of assets from the invested non-restricted equity fund to the shareholders in such a way that assets shall be distributed 0.30 euro per share. The amount to be distributed is in total 8,595,680.40 euro. The return of equity was paid to the shareholders who on the record date on March 9th 2009 were registered in the shareholders' register of the company held by Euroclear Finland Oy, and the payment date was on March 16th 2009. Furthermore, the Annual General Meeting decided to lower the subscription price of the shares that can be subscribed based on the option plans released by the company between years 2000-2008, with an amount corresponding to the distribution of assets, i.e. 0.30 euro per option right. The subscription price of the shares shall, however, always have at least the same value as the par value. CORPORATE GOVERNANCE The company complies with the corporate governance recommendations for listed companies issued by the NASDAQ OMX Helsinki, the Central Chamber of Commerce of Finland, and the Confederation of Finnish Industry and Employers. More information on corporate governance is available on the company's Web site (www.ssh.com). This interim report follows IAS 34 (Interim Financial Reporting) accounting standard. The same accounting principles have been used in the financial statements for 2008. These data are based on unaudited figures. The interim report also complies with the renewed IAS 1 and IAS 8 standards. Based on IAS 1, the exchange differences on translating foreign subsidiaries are presented as a part of the comprehensive income statement. SSH reports Americas, Asia and pacific and Europe and the rest of the world as its IAS 8 operational segments. In addition licence and maintenance sales are separated from each other. -------------------------------------------------------------------------------- | INCOME STATEMENT | | | | | | -------------------------------------------------------------------------------- | EUR million | | | | | | -------------------------------------------------------------------------------- | | | 7-9 | 7-9 | 1-9 | 1-9 | 1-12 | | | | /2009 | /2008 | /2009 | /2008 | /2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Net sales | 2.2 | 2.0 | 5.9 | 6.3 | 8.5 | -------------------------------------------------------------------------------- | | Cost of goods sold | -0.1 | 0.0 | -0.1 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | | Gross profit | 2.2 | 2.0 | 5.8 | 6.3 | 8.5 | -------------------------------------------------------------------------------- | | Other operating income | 0.0 | 0.0 | 0.1 | 0.1 | 0.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Product development | -0.9 | -0.9 | -2.8 | -2.9 | -4.0 | | | expenses | | | | | | -------------------------------------------------------------------------------- | | Distribution costs | -0.8 | -1.0 | -3.3 | -3.6 | -5.0 | -------------------------------------------------------------------------------- | | Administrative expenses | -0.4 | -0.4 | -1.8 | -1.2 | -1.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Operating profit/loss | 0.1 | -0.3 | -1.9 | -1.4 | -2.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Financial income and | 0.1 | 0.2 | 0.3 | 0.6 | 0.7 | | | expenses | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Profit/loss before taxes | 0.2 | -0.1 | -1.6 | -0.9 | -1.5 | -------------------------------------------------------------------------------- | | Taxes | 0.0 | -0.2 | 0.0 | -0.2 | -0.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Net profit/loss for the | 0.2 | -0.4 | -1.6 | -1.1 | -1.8 | | | period | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Other profit and loss | | | | | | | | account items: | | | | | | -------------------------------------------------------------------------------- | | Foreign subsidiary | 0.0 | 0.0 | -0.1 | 0.0 | 0.2 | | | translation differences | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Total comprehensive income | 0.2 | -0.4 | -1.7 | -1.1 | -1.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EARNINGS PER SHARE | | -------------------------------------------------------------------------------- | | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share (EUR) | | | -0.06 | -0.04 | -0.06 | -------------------------------------------------------------------------------- | Earnings per share, diluted | | | -0.06 | -0.04 | -0.06 | | (EUR) | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | BALANCE SHEET | | | | -------------------------------------------------------------------------------- | EUR million | | | | -------------------------------------------------------------------------------- | | | 09/30/2009 | 09/30/2008 | 12/31/2008 | -------------------------------------------------------------------------------- | | ASSETS | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Non-current assets | | | | -------------------------------------------------------------------------------- | | Tangible assets | 0.2 | 0.4 | 0.3 | -------------------------------------------------------------------------------- | | Intangible assets | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | | Total non-current assets | 0.2 | 0.4 | 0.3 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | | Current assets | | | | -------------------------------------------------------------------------------- | | Trade and other receivables | 2.0 | 2.5 | 2.3 | -------------------------------------------------------------------------------- | | Short-term financial assets | 3.0 | 14.0 | 14.5 | -------------------------------------------------------------------------------- | | Cash and cash equivalents | 3.0 | 2.1 | 2.0 | -------------------------------------------------------------------------------- | | Total current assets | 8.0 | 18.6 | 18.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Total assets | 8.2 | 19.0 | 19.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | LIABILITIES AND SHAREHOLDERS' | | | | | | EQUITY | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Shareholders' equity | 4.3 | 15.1 | 14.5 | -------------------------------------------------------------------------------- | | Non-current liabilities | | | | -------------------------------------------------------------------------------- | | Provisions | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | | Non-current interest-bearing | 0.1 | 0.1 | 0.1 | | | liabilities | | | | -------------------------------------------------------------------------------- | | Total long-term liabilities | 0.1 | 0.1 | 0.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Current liabilities | 3.9 | 3.8 | 4.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Total equity and liabilities | 8.2 | 19.0 | 19.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW STATEMENT | | | | -------------------------------------------------------------------------------- | EUR million | | | | -------------------------------------------------------------------------------- | | | 1-9/2009 | 1-9/2008 | 1-12/2008 | -------------------------------------------------------------------------------- | | Cash flow from business | -1.9 | -2.1 | -2.0 | | | operations | | | | -------------------------------------------------------------------------------- | | Cash flow from investments | 11.5 | 6.8 | 6.5 | -------------------------------------------------------------------------------- | | Cash flow from financing | -8.5 | -4.3 | -4.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Increase(+) / decrease (-) in | 1.1 | 0.4 | 0.2 | | | liquid assets | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Liquid assets at period start | 2.0 | 1.7 | 1.7 | -------------------------------------------------------------------------------- | | Adjustment for translation | 0.0 | 0.0 | 0.0 | | | difference | | | | -------------------------------------------------------------------------------- | | Liquid assets at period end | 3.0 | 2.1 | 2.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT ON CHANGES IN | | | | | | SHAREHOLDERS' EQUITY | | | | | -------------------------------------------------------------------------------- | EUR million | Share | Share | Fair | Trans-l | Unrest-ric | Total | | | Capi- | Premi- | value | ation | ted equity | | | | tal | um | reser- | diff. | funds and | | | | | | ves | | retained | | | | | | | | earnings | | -------------------------------------------------------------------------------- | Shareholders' | 0.9 | 11.5 | 0.1 | -1.0 | 8.9 | 20.4 | | equity | | | | | | | | Jan, | | | | | | | | 1. 2008 | | | | | | | -------------------------------------------------------------------------------- | Change | | | | | | | -------------------------------------------------------------------------------- | Net profit | 0.0 | -11.5 | 0.0 | 0.0 | 7.3 | | -------------------------------------------------------------------------------- | | | | | | -1.1 | | -------------------------------------------------------------------------------- | Shareholders' | 0.9 | 0.0 | 0.1 | -1.0 | 15.1 | 15.1 | | equity | | | | | | | | Sep, | | | | | | | | 30. 2008 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | | -------------------------------------------------------------------------------- | Net profit | | | | | -0.7 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders´ | 0.9 | 0.0 | 0.1 | -0.9 | 14.4 | 14.5 | | equity | | | | | | | | Dec, 31. 2008 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change | 0.0 | 0.0 | 0.0 | -0.1 | -8.5 | | -------------------------------------------------------------------------------- | Net profit | | | | | -1.6 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' | 0.9 | 0.0 | 0.2 | -1.0 | 4.3 | 4.3 | | equity | | | | | | | | Sep, | | | | | | | | 30. 2009 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY SEGMENT | | | | | | -------------------------------------------------------------------------------- | EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | AMER | 1.7 | 1.2 | 4.1 | 4.2 | 5.8 | -------------------------------------------------------------------------------- | APAC | 0.3 | 0.2 | 0.6 | 0.7 | 0.8 | -------------------------------------------------------------------------------- | EROW | 0.3 | 0.5 | 1.2 | 1.4 | 1.9 | -------------------------------------------------------------------------------- | SSH Group total | 2.2 | 2.0 | 5.9 | 6.3 | 8.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING PROFIT/LOSS | | | | | | | BY SEGMENT | | | | | | -------------------------------------------------------------------------------- | EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | | | 2009 | 2008 | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | AMER | 1.1 | 0.5 | 1.6 | 1.9 | 2.7 | -------------------------------------------------------------------------------- | APAC | 0.2 | 0.2 | 0.3 | 0.5 | 0.4 | -------------------------------------------------------------------------------- | EROW | 0.1 | 0.3 | 0.3 | 0.8 | 1.1 | -------------------------------------------------------------------------------- | Common Group | -1.3 | -1.3 | -4.1 | -4.6 | -6.4 | | expenses* | | | | | | -------------------------------------------------------------------------------- | SSH Group total | 0.1 | -0.3 | -1.9 | -1.4 | -2.2 | -------------------------------------------------------------------------------- * Common Group expenses include Group administration expenses (e.g. management and finance) and product management and R&D expenses for corporate headquarters. -------------------------------------------------------------------------------- | KEY FIGURES AND RATIOS | | | | | -------------------------------------------------------------------------------- | EUR million | 1-9/2009 | 1-9/2008 | 1-12/2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales | 5.9 | 6.3 | 8.5 | -------------------------------------------------------------------------------- | Operating profit/loss | -1.9 | -1.4 | -2.2 | -------------------------------------------------------------------------------- | Operating profit/loss, as % of | -32.6 | -22.7 | -25.9 | | net sales | | | | -------------------------------------------------------------------------------- | Profit/loss before extraordinary | -0.9 | -0.9 | -1.2 | | items and taxes | | | | -------------------------------------------------------------------------------- | Profit/loss before extraordinary | -14.8 | -13.9 | -14.2 | | items and taxes, as % of net | | | | | sales | | | | -------------------------------------------------------------------------------- | Profit/loss before taxes | -1.6 | -0.9 | -1.5 | -------------------------------------------------------------------------------- | Profit/loss before taxes, as | -27.4 | -13.9 | -18.0 | | % of net sales | | | | -------------------------------------------------------------------------------- | Return on investment (%) | -21.6 | -3.3 | -7.4 | -------------------------------------------------------------------------------- | Return on equity (%) | -22.9 | -4.7 | -10.2 | -------------------------------------------------------------------------------- | Interest-bearing net liabilities | -6.0 | -16.0 | -16.4 | -------------------------------------------------------------------------------- | Equity ratio (%) | 78.2 | 92.8 | 91.3 | -------------------------------------------------------------------------------- | Gearing (%) | -138.5 | -106.1 | -112.8 | -------------------------------------------------------------------------------- | Gross capital expenditure | 0.0 | 0.0 | 0.1 | -------------------------------------------------------------------------------- | % of net sales | 0.0 | 0.0 | 1.3 | -------------------------------------------------------------------------------- | R&D expenses | 2.8 | 2.9 | 4.0 | -------------------------------------------------------------------------------- | % of net sales | 47.1 | 46.7 | 46.6 | -------------------------------------------------------------------------------- | Personnel, period average | 66 | 79 | 77 | -------------------------------------------------------------------------------- | Personnel, period end | 63 | 75 | 73 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PER-SHARE DATA | | | | -------------------------------------------------------------------------------- | EUR | 1-9/2009 | 1-9/2008 | 1-12/2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, undiluted | -0.06 | -0.04 | -0.06 | -------------------------------------------------------------------------------- | Earnings per share, diluted | -0.06 | -0.04 | -0.06 | -------------------------------------------------------------------------------- | Equity per share | 0.15 | 0.53 | 0.51 | -------------------------------------------------------------------------------- | No. of shares at period end | 28 798 | 28 550 | 28 584 | | (thousand) | | | | -------------------------------------------------------------------------------- | Share performance | | | | -------------------------------------------------------------------------------- | Average price | 0.81 | 1.41 | 1.48 | -------------------------------------------------------------------------------- | Low | 0.65 | 0.99 | 0.66 | -------------------------------------------------------------------------------- | High | 1.24 | 1.69 | 1.69 | -------------------------------------------------------------------------------- | Share price, period end | 0.72 | 1.05 | 0.70 | -------------------------------------------------------------------------------- | Market capitalization, period end | 20.7 | 30.0 | 20.0 | | (EUR million) | | | | -------------------------------------------------------------------------------- | Volume of shares traded (million) | 3.6 | 2.8 | 3.6 | -------------------------------------------------------------------------------- | Volume of shares traded, as | 12.6 | 9.8 | 12.5 | | % of | | | | | total | | | | -------------------------------------------------------------------------------- | Value of shares traded (EUR | 2.9 | 3.9 | 4.5 | | million) | | | | -------------------------------------------------------------------------------- | Price-to-earnings ratio (P/E) | - | - | - | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONTINGENT LIABILITIES | | | | -------------------------------------------------------------------------------- | EUR million | 09/30/2009 | 09/30/2008 | 12/31/2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Leasing commitments outside | | | | | the balance sheet | | | | -------------------------------------------------------------------------------- | Maturing within 1 year | 0.5 | 0.7 | 0.7 | -------------------------------------------------------------------------------- | Maturing between 1 and 5 years | 1.1 | 0.7 | 0.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- DISCLAIMER The content in this report is provided by SSH Communications Security Corp ("SSH") and its third party content providers for your personal information only, and does not constitute an offer or invitation to purchase any securities. Nor does it provide any form of advice (investment, tax, legal) amounting to investment advice, or make any recommendations regarding particular investments or products. SSH does not provide investment advice or recommendations to buy or sell its shares or the shares of others. If you are interested in investing in SSH, please contact your financial adviser for further details and information. Past performance of SSH shares is not indicative of future results. EXCEPT AS PROVIDED BY APPLICABLE COMPULSORY LAW SSH EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, AS TO THE AVAILABILITY, ACCURACY OR RELIABILITY OF ANY OF THE CONTENT PROVIDED, OR AS TO THE FITNESS OF THE INFORMATION FOR ANY PURPOSE. SSH Communications Security Corp will release its next interim report and financial statements for January 1-December 31, 2009 in February 2010. Further information will be available on the company's website in due course. Helsinki, October 21st 2009 SSH COMMUNICATIONS SECURITY CORP Board of Directors Jari Mielonen CEO For further information, please contact: Jari Mielonen, CEO, tel. +358 (0)20 500 7400 Mikko Karvinen, CFO, tel. +358 (0)20 500 7419 Distribution: NASDAQ OMX Helsinki Ltd Major media www.ssh.com