Pompey, France 04/19/2007 07:30:00 AM
GLOBAL GRAPHICS S.A. (Euronext: GLOG), toonaangevend internationaal ontwikkelaar van technologie voor open document en drukoplossingen, maakt de financiële resultaten bekend voor het eerste kwartaal 2007.
Vergelijking van het eerste kwartaal 2007 (Q1 07) met hetzelfde kwartaal vorig jaar (Q1 06):
- Omzet van 5,0 miljoen euro voor dit kwartaal (5,4 miljoen euro tegen Q1 06 wisselkoersen) in vergelijking met 4,4 miljoen euro in Q1 06;
- EBIT-stijging naar 1,9 miljoen euro in Q1 07, in vergelijking met 1,0 miljoen euro in Q1 06;
- Pro forma bedrijfswinst (EBITA) van 1,3 miljoen euro voor dit kwartaal in vergelijking met 1,0 miljoen euro in Q1 06;
- Pro forma winst vóór belastingen van 1,3 miljoen euro voor dit kwartaal (of 0,12 euro per aandeel) in vergelijking met 1,0 miljoen euro in Q1 06 (of 0,09 euro per aandeel)
- Een nettowinst van 1,4 miljoen euro voor dit kwartaal (of 0,13 euro per aandeel) in vergelijking met euro 0,8 miljoen in Q1 06 (of 0,08 euro per aandeel); en
- Pro forma nettowinst van 1,0 miljoen euro voor dit kwartaal (of 0,10 euro per aandeel) in vergelijking met 0,8 miljoen euro in Q1 06 (of 0,08 euro per aandeel).
Jim Freidah, Chief Operating Officer, lichtte de resultaten toe: “Het verheugt ons te melden dat de omzet voor het eerste kwartaal 13,6% hoger lag dan voor het eerste kwartaal van 2006 (bij huidige wisselkoersen) en zelfs 23,5% hoger tegen de wisselkoers van Q1 06. De omzet in onze nieuwe segmenten van digitale druk en elektronische documenten steeg 62,8% in vergelijking met Q1 06 (tegen huidige wisselkoersen), en was goed voor 64,5% van de totale kwartaalomzet. Dat illustreert dat we er goed in slagen om een bredere groep klanten in digitale druk te bereiken. Deze resultaten waren in het bijzonder te danken aan de sterke omzet uit de nieuwe contracten die we in het laatste kwartaal van 2006 hebben afgesloten, in combinatie met een groter dan verwachte omzet bij onze bestaande klanten voor digitale druk.
“In het traditionele segment (grafische sector) daalde de omzet met 26,6% t.o.v. het eerste kwartaal van 2006 (tegen huidige wisselkoersen) en nam zo 35,5% van de totale kwartaalomzet voor zijn rekening. Ondanks dat lag de omzet uit dit segment hoger dan in het derde en vierde kwartaal van 2006, voornamelijk als gevolg van een grote bestelling van een van onze traditionele klanten.
“Als onderdeel van onze voortdurende zoektocht naar nieuwe omzet, hebben wij in het eerste kwartaal 2007 een zeer actief promotieprogramma met een mix van o.m. vakbeurzen, lezingen en klantenbezoeken opgezet, om het Global Graphics merk en ons concurrentievoordeel bij het leveren van paginabeschrijvingstaal (PDL) technologie voor toepassingen rond druk en elektronische documenten te promoten. Zo waren wij aanwezig op o.m Page 2007 expo in Tokio, de Lyra Imaging Symposiums in Californië en Tokio, Xplor Global Document Exchange in Miami en PODi 2007 Application Forum.
“Vooruitkijkend naar de rest van 2007, kunnen wij melden dat we onderhandelen met een aantal klanten uit het digitale druk segment en dat wij het schokeffect van XPS op de drukindustrie verder zullen exploiteren door nieuwe commerciële initiatieven in de sector voor digitale druk te nemen. Wij zullen ook de beschikbaarheid van onze XPS-technologie naar de traditionele grafische sector verlengen, als onderdeel van onze inspanningen om de omzet in dit segment te maximaliseren. In die zin zijn wij al voorbereidende gesprekken gestart met een aantal bedrijven uit de traditionele grafische sector .
“Wij hebben daarnaast een bijkomend omzet- en marketinginitiatief genomen om nieuwe zakelijke opportuniteiten te vinden voor onze PDL-expertise buiten het drukdomein. Zo hebben wij al een goed gevolgd Early Adopter Program gelanceerd voor onze nieuwe generatie elektronische documenttechnologie, die een softwarebibliotheek omvat voor hoogperformante documentconversie en -bewerking van hoge kwaliteit. Die bedrijven omvatten een brede waaier van ontwikkelaars van toepassingen voor document management en archivering als ook ontwikkelaars van webgebaseerde diensten en drukgerelateerde workflows.”
Resultaten eerste kwartaal 2007
De omzet voor het kwartaal bedroeg 5,0 miljoen euro, in vergelijking met 4,4 miljoen euro in het eerste kwartaal 2006, en 5,0 miljoen euro in het vierde kwartaal 2006, of een stijging met 13,6% tegen de huidige wisselkoersen tegenover Q1 06. Ongeveer 90,9% van de kwartaalomzet werd uitgedrukt in US dollar (tegen een gemiddelde koers van 1,319 dollar voor 1 euro) en de wisselkoersschommelingen t.o.v. de euro bleven een weerslag hebben op de omzet en de bedrijfsresultaten van de onderneming. Indien de kwartaalomzet omgewisseld werd tegen de gemiddelde dollarkoers van toepassing in hetzelfde kwartaal van 2006 (d.w.z. 1,203 dollar voor 1 euro), dan zou de omzet ca. 5,4 miljoen euro hebben bedragen, of een stijging met 23,5% t.o.v. de omzet in Q1 06 (bij constante wisselkoersen).
De totale bedrijfskosten (exclusief verkoopkosten, afschrijving van immateriële activa, uitgaven voor aandelencompensatie en het effect van de kapitalisatie van bepaalde ontwikkelings-uitgaven voor een bedrag van 0,8 miljoen euro in Q1 07), bedroegen in het eerste kwartaal van 2007 3,6 miljoen euro t.o.v. 3,3 miljoen euro in het eerste kwartaal van 2006 en 3,2 miljoen euro in het vierde kwartaal van 2006, hoofdzakelijk als gevolg van de gestegen uitgaven voor verkoop- en marketingactiviteiten en voor infrastructuur, die voortvloeiden uit de opening van een kantoor in Pune (India) in maart 2006 en de verhuis van de kantoren in het Verenigd Koninkrijk naar een nieuwe locatie in de buurt van Cambridge, in oktober 2006.
De EBIT bedroeg dit kwartaal 1,9 miljoen euro (of 37,5% van de kwartaalomzet), in vergelijking met 1,0 miljoen euro in Q1 06 (of 23,5% van de kwartaalomzet).
De EBITA (pro forma bedrijfswinst, als gedefinieerd in de bijgaande tabel) kwam voor dit kwartaal uit op 1,3 miljoen euro, in vergelijking met 1,0 miljoen euro in Q1 06. De EBITA marge bedroeg dit kwartaal 25,0% in vergelijking met 22,2% van de kwartaalomzet in Q1 06.
De pro forma winst vóór belastingen (als gedefinieerd in de bijgaande tabel) bedroeg dit kwartaal 1,3 miljoen euro in vergelijking met 1,0 miljoen euro in Q1 06. Bijgevolg was de pro forma winst vóór belastingen per aandeel dit kwartaal 0,12 euro in vergelijking met euro 0,09 in Q1 06.
De netto winst kwam dit kwartaal uit op 1,4 miljoen euro (of 0,13 euro per aandeel), in vergelijking met 0,8 miljoen euro in Q1 06 (of 0,08 euro per aandeel).
De pro forma netto winst (zo als gedefinieerd in de bijgaande tabel) bedroeg voor dit kwartaal 1,0 miljoen euro in vergelijking met 0,8 miljoen euro voor het eerste kwartaal van 2006. De pro forma winst per aandeel voor dit kwartaal kwam daardoor uit op 0,10 euro in vergelijking met 0,08 euro in Q1 06.
Vooruitzichten voor 2007
Jim Freidah vervolgde, “We blijven verder investeren in de uitbreiding van onze technologie voor elektronische documenten en digitale druk. Die investering is cruciaal voor de toekomstige groei van de onderneming en omvat de verdere uitbreiding van ons kantoor te Pune in India.
“Zoals al gesteld verwachten wij dat de omzet in onze traditionele markt in 2007 zal dalen tegen hetzelfde ritme als in 2006, waarbij dit segment zowel een aanhoudende consolidering kent als een erosie als gevolg van de weerslag van de groei van digitale druk.
“Tevens hebben we tijdens het eerste kwartaal, zoals al gesteld, een sterke bijdrage van onze nieuwe segmenten kunnen vaststellen, vooral omdat we een omzet van ca. 1,4 miljoen euro, voortvloeiend uit de in november 2006 aangekondigde contracten, aan dit kwartaal konden toewijzen. Wij verwachten deze nieuwe segmenten verder sterk te zien presteren, in het bijzonder door de digitale druk productie.
“Omdat de omzettoewijzing verschilt van contract tot contract, afhankelijk van hoe en wanneer wij de softwarecomponenten leveren, verwachten wij dat de totale omzet voor het jaar 2007 zich zal situeren tussen ca. 18,0 miljoen euro en 20,0 miljoen euro, de bedrijfskosten tussen 14,0 miljoen euro en 14,3 miljoen euro, en de EBITA tussen 3,5 miljoen euro en 5,2 miljoen euro (of tussen 19,5% en 26,0% van de gepande omzet voor 2007). Omdat de niet-operationele elementen de bedrijfsresultaten ook dit jaar niet significant zullen beïnvloeden, verwachten wij dat de pro forma winst vóór belastingen per aandeel zal liggen tussen 0,34 euro en 0,50 euro, wat een stijging tot 32% kan betekenen t.o.v. de 0,38 euro per aandeel die we voor het jaar 2006 hebben gerapporteerd. Deze indicatie is gebaseerd op een gemiddelde wisselkoers van 1,33 dollar voor 1 euro (1,259 dollar voor 1 euro in 2006) en van 1,97 dollar voor 1 pond (1,906 dollar voor 1 pond in 2006).”
Programma voor de wederinkoop van eigen aandelen
Overeenkomstig de toestemming die de aandeelhouders aan de raad van bestuur hebben gegeven tijdens de aandeelhoudersvergadering van 20 april 2006, heeft de onderneming in de loop van het derde kwartaal van het jaar dat eindigde op 31 december 2006, een programma gestart voor de wederinkoop van eigen aandelen. Met dat programma heeft de onderneming, tijdens het jaar eindigend op 31 december 2006, 37.670 eigen aandelen ingekocht voor een totaal van 0,4 miljoen euro. In de loop van maart 2007 kocht de onderneming nog eens 31.000 aandelen in voor een totaal bedrag van 0,3 miljoen euro. De onderneming heeft het voornemen om de wederinkoop van de eigen aandelen voort te zetten op de tijdstippen en in de aantallen die zij geschikt acht.
Alle 68.670 eigen aandelen die de onderneming per 31 maart 2007 aanhield, werden toegewezen aan de eerste van drie doelstellingen van het wederinkoopprogramma, namelijk tegemoetkomen aan de verplichtingen die ontstaan uit de aandelenoptie- en aandelenschenkingsplannen van de onderneming.
Bijkomende informatie over het wederinkoopprogramma van de eigen aandelen is terug te vinden in het informatiememorandum (beschikbaar in het Frans en het Engels) dat door de onderneming werd uitgegeven in april 2007 en dat gedownload kan worden van het investeerdersluik op de website van de onderneming (www.globalgraphics.com).
Algemene vergadering van aandeelhouders
De algemene vergadering van aandeelhouders heeft plaats op vrijdag 27 april 2007 om 15u00 CET in de kantoren van Andlinger & Co. Cvba, 140 Louizalaan, Brussel (België). De agenda en de voorgestelde besluiten (in het Frans en het Engels) zijn terug te vinden onder het luik “Investors” op de website van de onderneming: http://www.globalgraphics.com.
Bekendmaking van de resultaten van het tweede kwartaal 2007
Global Graphics verwacht de financiële resultaten voor het kwartaal en het halfjaar eindigend op 30 juni 2007 bekend te maken op vrijdag 27 juli 2007 vóór beurstijd.
GLOBAL GRAPHICS SA AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
In thousands of Euro, except share data in Euro
Unaudited figures
Quarters
ended 31 March
2007 2006
Sales (note 5) 5,004 4,405
Cost of sales (111) (122)
Amortization of intangible assets (17) (17)
GROSS PROFIT 4,876 4,266
Selling, general & administrative expenses (1,564) (1,474)
Research and development expenses (1,278) (1,674)
Share compensation expenses (136) (63)
Amortization of intangible assets (19) (19)
OPERATING PROFIT 1,879 1,036
Interest income 6 14
Interest expenses (3) (39)
Foreign currency exchange gains (losses), net 3 15
PROFIT BEFORE INCOME TAX 1,885 1,026
Income tax expense (benefit) (note 6) 508 192
NET PROFIT 1,377 834
EARNINGS PER SHARE (note 7)
Basic net profit per share 0.13 0.08
Diluted net profit per share 0.13 0.08
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The accompanying selected explanatory notes are an integral part of these consolidated interim financial statements as at and for the quarter ended 31 March 2007.
GLOBAL GRAPHICS SA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
In thousands of Euro 31 March 31 December
2007 2006
Unaudited Audited
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 1,111 1,039
Intangible assets 2,501 1,770
Goodwill 8,406 8,514
Other non-current assets 147 149
Deferred tax assets (note 4) 3,829 4,269
TOTAL NON-CURRENT ASSETS 15,994 15,741
CURRENT ASSETS
Inventories 124 94
Trade receivables 3,816 3,814
Current tax receivables 375 423
Other current assets 91 164
Prepaid expenses 556 440
Cash 3,437 3,310
TOTAL CURRENT ASSETS 8,399 8,245
TOTAL ASSETS 24,393 23,986
LIABILITIES & SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital (note 8) 4,109 4,099
Share premium (note 8) 28,827 28,754
Share options outstanding 2,244 2,108
Reserve for own shares (note 9) (690) (399)
Accumulated deficit (5,766) (7,143)
Foreign currency translation reserve (6,832) (6,638)
TOTAL SHAREHOLDERS' EQUITY 21,892 20,781
LIABILITIES
NON-CURRENT LIABILITIES
Borrowings 0 0
Other non-current liabilities 2 2
TOTAL NON-CURRENT LIABILITIES 2 2
CURRENT LIABILITIES
Borrowings 0 0
Bank overdrafts 230 234
Trade payables 489 457
Other payables 885 837
Customer advances and deferred revenue 895 1,675
TOTAL CURRENT LIABILITIES 2,499 3,203
TOTAL LIABILITIES 2,501 3,205
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 24,393 23,986
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The accompanying selected explanatory notes are an integral part of these consolidated interim financial statements as at and for the quarter ended 31 March 2007.
GLOBAL GRAPHICS SA AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENT
In thousands of Euro
Unaudited figures Quarters
ended 31 March
2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES
* Profit before income tax 1,885 1,026
* Adjustments for:
- Depreciation on property, plant and equipment 85 45
- Amortisation of intangible assets 36 36
- Amortisation of capitalised development expenses 14 14
- Share compensation expenses 136 63
- Interest expenses (interest income) (3) 25
- Foreign currency exchange losses (gains) (3) (15)
- Expenses offset against the share premium (note 8) 0 (3)
- Other items (62) 16
* Change in value of operating assets and liabilities
- Inventories (30) 58
- Trade receivables (2) 174
- Current tax receivables 48 0
- Other current assets 73 (47)
- Prepaid expenses (116) (15)
- Trade payables 32 (110)
- Other payables 48 110
- Customer advances and deferred revenue (780) (25)
* Interest received 7 14
* Interest paid (3) (42)
* Income tax paid (40) (25)
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,325 1,299
CASH FLOWS FROM INVESTING ACTIVITIES
* Acquisition of property, plant and equipment (162) (66)
* Capitalised development costs (815) (171)
NET CASH USED IN INVESTING ACTIVITIES (977) (237)
CASH FLOWS FROM FINANCING ACTIVITIES
* Proceeds from the exercise of share options (note 8) 83 68
* Repurchase of own shares (note 9) (291) 0
* Repayment of bank overdrafts (4) (1)
* Repayment of borrowings 0 (888)
NET CASH USED IN FINANCING ACTIVITIES (212) (821)
NET INCREASE (DECREASE) IN CASH 136 241
CASH AT 1 JANUARY 3,310 4,548
EFFECT OF EXCHANGE RATE FLUCTUATIONS
ON CASH HELD AT 1 JANUARY (9) (81)
CASH AT 31 MARCH 3,437 4,708
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The accompanying selected explanatory notes are an integral part of these consolidated interim financial statements as at and for the quarter ended 31 March 2007.
GLOBAL GRAPHICS SA AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
In thousands of Euro
Unaudited figures
2007 2006
Shareholders’ equity at 1 January 20,781 17,576
* Recognized income for the period:
- Net profit for the period 1,377 834
- Change in foreign currency translation adjustment (194) (313)
Total recognized income for the period 1,183 521
* Effect of share option schemes:
- Value of services rendered during the period 136 63
- Net proceeds from shares issued in the period 83 65
Total effect of share option schemes 219 128
* Effect of the share repurchase programme (291) 0
Shareholders’ equity at 31 March 21,892 18,225
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The accompanying selected explanatory notes are an integral part of these consolidated interim financial statements as at and for the quarter ended 31 March 2007.
GLOBAL GRAPHICS SA AND SUBSIDIARIES
SELECTED EXPLANATORY NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT AND FOR THE QUARTER ENDED 31 MARCH 2007
NOTE 1: REPORTING ENTITY
These consolidated interim financial statements as at and for the quarter ended 31 March 2007 comprise Global Graphics SA, a French-based company, and its subsidiaries (together referred to as the Company).
They were approved for issue by the Board of Directors on 18 April 2007.
NOTE 2: STATEMENT OF COMPLIANCE
These consolidated interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting (IAS 34), and other applicable International Financial Reporting Standards (IFRSs) and related interpretations issued by the International Accounting Standards Board and as adopted by the European Union.
They do not include all of the information required for full annual consolidated financial statements and should be read in conjunction with the Company’s consolidated financial statements as at and for the year ended 31 December 2006.
NOTE 3: ACCOUNTING POLICIES AND METHODS
(a) Basis of preparation
These consolidated interim financial statements as at and for the quarter ended 31 March 2007 have been prepared under the historical cost convention, except for the revaluation of financial assets and financial liabilities (including derivative instruments as appropriate) at fair value through the income statement.
Non-current assets are stated at the lower of amortized cost and fair value less disposal costs, when applicable.
(b) Accounting policies and methods
The accounting policies and methods used for the preparation of the Company’s consolidated interim financial statements as at and for the quarter ended 31 March 2007 are the same as those used for the preparation of the Company’s consolidated financial statements as at and for the year ended 31 December 2006, which are set out in note 2 to the Company’s consolidated financial statements for that year.
NOTE 4: CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of financial statements in accordance with IFRSs requires the use of certain critical accounting estimates.
It also requires management to exercise judgement in the process of applying the Company’s accounting policies, and to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making management’s judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period and future periods if the revision affects both current and future periods.
Estimates and judgements made by management in the application of IFRSs that involve a higher degree of complexity, have a significant effect on the consolidated interim financial statements as at and for the quarter ended 31 March 2007, or have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next twelve months, are discussed hereafter.
(a) Impairment of goodwill and other intangible assets
IAS 34 requires that the Company applies the same impairment testing, recognition and reversal criteria (as applicable) at an interim date as it would at the end of its financial year, i.e. at 31 December.
In accordance with paragraph 36 of appendix B of IAS 34, the Company did not perform a detailed impairment calculation as at 31 March 2007, but reviewed indications of significant impairment of goodwill and other intangible assets since 31 December 2006.
No impairment charge was recognized in respect of this impairment test in the quarter ended 31 March 2007 (no impairment charge also in the quarter ended 31 March 2006).
(b) Capitalisation of computer software development costs
As stated in note 2i to the Company’s consolidated financial statements for the year ended 31 December 2006, costs associated with developing or maintaining existing computer software technology and programmes are recognised as an expense when incurred.
As required by IAS 38, Intangible assets (IAS 38), costs that are directly associated with the production of identifiable and unique software products over which the Company has proprietary rights, that can be measured reliably, and where it is probable that future economic benefits attributable to such software will flow to the Company, are recognised as intangible assets. Such costs consist solely of direct costs, and include the software development employee costs as well as an appropriate portion of relevant overheads.
Computer software development costs recognized as intangible assets are then amortised over their estimated useful lives, which do not exceed three years, starting from the completion date of the corresponding development project.
(i) Capitalized development costs as at and for the quarter ended 31 March 2006
At 31 March 2006, the Company considered it could demonstrate that it met all of the above-mentioned recognition criteria for two specific development projects.
Capitalized development expenses corresponding to the first project, which was completed and was commercially launched in September 2005, amounted to Euro 96,000 at 31 March 2006. These expenses are amortized from completion date over the expected useful life of the asset, expected to end on 30 June 2007; the corresponding amortization charge which was recognized in the quarter ended 31 March 2006 with regards to this first project amounted to Euro 14,000.
Capitalized development expenses corresponding to the second project amounted to Euro 418,000 at 31 March 2006, following the capitalization of additional development expenses of Euro 171,000 in the quarter ended 31 March 2006. As the development of this project was not completed at that date, no amortization charge was recognized in the first quarter of 2006 with regards to this project.
(ii) Capitalized development costs as at and for the quarter ended 31 March 2007
At 31 March 2007, the Company considered it could demonstrate that it met all of the above-mentioned recognition criteria for three specific development projects
Capitalized development expenses corresponding to the first project, amounted to Euro 98,000 at 31 March 2007. The corresponding amortization charge which was recognized in the quarter ended 31 March 2007 with regards to this first project amounted to Euro 14,000.
Capitalized development expenses corresponding to the other projects amounted to Euro 2,195,000 at 31 March 2007, following the capitalization of additional development expenses of Euro 815,000 in the quarter ended 31 March 2007.
As the development of these projects was not completed at 31 March 2007, no amortization charge was recognized in the quarter ended 31 March 2007 with regards to these two projects.
(c) Income tax
(i) Current income tax
The Company is subject to income tax in France and in all jurisdictions where it has subsidiaries (notably in the UK and the US).
Significant judgement is required in determining the provision for income taxes, as there are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business.
The Company recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax provisions in the period in which such determination is made.
(ii) Deferred income tax
The Company recognises deferred tax assets as stated in note 2v to the Company’s IFRS consolidated financial statements for the year ended 31 December 2006.
In evaluating whether it is probable or not that a deferred tax asset recognised in a specific jurisdiction may be utilised against future taxable profits to be recognised in that jurisdiction, the Company uses estimates of future taxable profits over an appropriate period of time from the balance sheet date, based on growth and profit assumptions considered to be appropriate by management.
Deferred tax assets are predominantly attributable to capital allowances available to the UK subsidiary as the result of the acquisitions made by the Company in the years ended 31 December 1999 and 2000. Although such allowances may be used without any deadline, they can only be used in a given year up to 25% of the outstanding balance at the beginning of that year.
At 31 December 2006, considering both the recent history of tax profits made by the UK subsidiary and the projected tax profits to be made in the coming years, management considered it was appropriate to recognize a deferred tax asset corresponding to the amount of capital allowances the Company projected to use over the next four years: this resulted in the recognition of a deferred tax asset amounting to a total of Euro 4,622,000 at that date.
The recognition of a deferred tax asset corresponding to the amount of capital allowances the Company projected to use over the period ending 31 March 2011 to offset taxable profit to be made by its UK-based subsidiary resulted in the recognition of a deferred tax asset amounting to a total of Euro 4,339,000 at 31 March 2007, and a corresponding deferred tax charge amounting to Euro 225,000 in the quarter ended 31 March 2007.
NOTE 5: SEGMENT REPORTING
(a) Primary reporting format – by business segment
The Company is engaged in only one segment of business and is therefore not required to provide information in this respect.
(b) Secondary reporting format – by geographical area
The Company operates in four main geographical areas, even though the Company is managed on a worldwide basis, which are as follows: Continental Europe (including France, which is the home country of the Company), the UK, North America (USA and Canada) and Asia (notably Japan and India).
(i) Geographical allocation of sales
The allocation of sales made in these geographical areas during the quarters ended 31 March 2007 and 2006, respectively, is as follows:
Quarters
ended 31 March
In thousands of Euro 2007 2006
Continental Europe 908 647
United Kingdom 270 482
North America 3,308 2,453
Asia (including Japan and India) 506 800
Other countries 12 23
Total sales 5,004 4,405
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(ii) Geographical allocation of capital expenditures
The allocation of capital expenditures made in these geographical areas during the quarters ended 31 March 2007 and 2006, respectively, is as follows:
Quarters
ended 31 March
In thousands of Euro 2007 2006
Continental Europe 0 0
United Kingdom 917 228
North America 10 5
Asia (including Japan and India) 50 4
Other countries 0 0
Total capital expenditures 977 237
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NOTE 6: INCOME TAX EXPENSE (BENEFIT)
(a) Current income tax
The Company recorded a current income tax charge amounting to Euro 43,000 in the quarter ended 31 March 2007 (a current tax charge of Euro 28,000 in the quarter ended 31 March 2006).
(b) Deferred income tax
The Company recorded a deferred income tax charge amounting to Euro 465,000 in the quarter ended 31 March 2006 (a charge of Euro 164,000 in the quarter ended 31 March 2006).
As indicated in note 4c, this deferred tax charge notably arises from the decrease in the amount of the deferred tax assets attributable to the capital allowances which the Company expects to use to offset projected taxable profit made by its UK subsidiary over a four-year period from 31 March 2007: such decrease resulted in a deferred tax charge amounting to Euro 225,000 in the quarter ended 31 March 2007 (a charge of Euro 172,000 in the quarter ended 31 March 2006).
The other significant component of the deferred tax charge reported in the quarter ended 31 March 2007 relates to the tax effect of the capitalization of development expenses: as indicated in note 4b, the corresponding tax charge was Euro 240,000 in the quarter ended 31 March 2007 (a charge of Euro 47,000 in the quarter ended 31 March 2006).
NOTE 7: EARNINGS PER SHARE
(a) Basic earnings per share
Basic earnings per share are calculated by dividing the profit attributable to shareholders for a period by the weighted average number of ordinary shares outstanding during that period.
Computation for the quarters ended 31 March 2007 2006
Issued ordinary shares as at 1 January 10,247,530 10,157,209
Effect of the 3,500 shares issued on 17 February 2006 0 1,672
Effect of the 14,666 shares issued on 27 March 2006 0 815
Effect of the 3,001 shares issued on 7 February 2007 1,767 0
Effect of the 5,500 shares issued on 8 February 2007 3,178 0
Effect of the 16,500 shares issued on 13 February 2007 8,617 0
Effect of the 2,964 shares repurchased on 20 March 2007 (395) 0
Effect of the 80 shares repurchased on 21 March 2007 (10) 0
Effect of the 228 shares repurchased on 23 March 2007 (23) 0
Effect of the 8,664 shares repurchased on 26 March 2007 (578) 0
Effect of the 6,925 shares repurchased on 27 March 2007 (385) 0
Effect of the 1,242 shares repurchased on 28 March 2007 (55) 0
Effect of the 897 shares repurchased on 29 March 2007 (30) 0
Effect of the 10,000 shares repurchased on 30 March 2007 (222) 0
Weighted average number of ordinary shares for 10,259,394 10,159,696
the quarters ended 31 March
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(b) Diluted earnings per share
Diluted earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.
The Company has only one category of dilutive potential ordinary shares: share options. Contingently issuable shares (i.e. ordinary shares issuable for little or no cash or other consideration upon the satisfaction of specified conditions in a contingent share agreement) are not included in the calculation of diluted earnings per share until the above mentioned conditions are satisfied, which was not the case at either 31 March 2007 or 31 March 2006.
The calculation is performed for the share options to determine the number of shares that could have been acquired at fair value (determined as the average market price of the Company’s shares over the period for which the computation is performed) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
Computation for the quarters ended 31 March 2007 2006
Weighted average number of ordinary shares for 10,259,394 10,159,696
the quarters ended 31 March
Adjustment for outstanding share options 44,094 98,344
Weighted average number of ordinary shares for diluted
EPS computation for the quarters ended 31 March 10,303,488 10,258,040
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NOTE 8: SHARE CAPITAL AND SHARE PREMIUM
(a) Share capital
A total of 25,001 share options were exercised during the quarter ended 31 March 2007 (see note 7a for further details).
As a result, the total number of outstanding, fully paid, ordinary shares of the Company, each of par value of Euro 0.40, is 10,272,531 as at 31 March 2007.
(b) Share premium
The share premium amount increased by Euro 73,000 during the quarter ended 31 March 2007 through the net proceeds of the 25,001 share options exercised during that period (an increase of Euro 58,000 during the quarter ended 31 March 2006, after deduction of Euro 3,000 for operating expenses incurred in relation with the Company’s share option plans).
NOTE 9: REPURCHASE OF OWN SHARES
Pursuant to the authority granted to the Board of Directors by the shareholders in their meeting on 20 April 2006, the Company initiated its share repurchase programme in the course of the quarter ended 30 September 2006.
A total of 37,670 shares were repurchased by the Company in the year ended 31 December 2006. Another 31,000 shares were repurchased by the Company in the quarter ended 31 March 2007(see note 7a), for a total of Euro 291,000.
In accordance with paragraph 33 of IAS 32, these 68,670 shares are held as treasury shares, and have been deducted from equity at 31 March 2007.
More information on the Company’s share repurchase programme is available in the information memorandum on such programme (available in both French and English) which was released by the Company on 13 April 2007.
GLOBAL GRAPHICS SA AND SUBSIDIARIES
PRO FORMA OPERATING PROFIT (EBITA) COMPUTATION
In thousands of Euro
Unaudited figures
Quarters
ended 31 March
2007 2006
Reported operating profit 1,879 1,036
Add back (deduct):
* Amortization of intangible assets
- recorded in cost of sales 17 17
- recorded in operating expenses 19 19
* Share compensation expenses 136 63
* Capitalization of development expenses (815) (171)
as required by IAS 38 (note 4)
* Amortization of capitalized development 14 14
expenses (note 4)
Total adjustments to reported operating profit (629) (58)
Pro forma operating profit 1,250 978
Pro forma operating profit in % of sales 25.0% 22.2%
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The Company provides information prepared in accordance with and required by IFRSs, but it believes that evaluating its ongoing results may not be as useful if an investor is limited to reviewing only IFRS financial measures.
Accordingly, the Company uses pro forma financial information to evaluate its ongoing operations as well as for internal planning and forecasting purposes.
The Company’s management does not itself, nor does it suggest that investors should, consider such pro forma financial measures in isolation from, or as a substitute for, financial information prepared in accordance with IFRSs.
The Company presents such pro forma financial measures in reporting its financial results to provide investors with an additional tool to evaluate the Company’s results in a manner that focuses on what the Company believes to be its ongoing business operations.
The Company’s management believes that the inclusion of pro forma financial measures provides consistency and comparability with past reports of financial information and has historically provided comparability to similar companies in the Company’s industry, many of which present the same or similar pro forma financial measures to investors.
When the Company uses such a pro forma financial measure, it provides a reconciliation of the pro forma financial measure to the most closely applicable financial measure required by IFRSs.
Investors are encouraged to review the related IFRS financial measures and the reconciliation of these pro forma financial measures to the most directly comparable IFRS financial measures as detailed above.
GLOBAL GRAPHICS SA AND SUBSIDIARIES
PRO FORMA PRE-TAX PROFIT COMPUTATION
In thousands of Euro, except share data in Euro
Unaudited figures
Quarters
ended 31 March
2007 2006
Reported profit before income tax 1,885 1,026
Add back (deduct):
* Amortization of intangible assets
- recorded in cost of sales 17 17
- recorded in operating expenses 19 19
* Share compensation expenses 136 63
* Capitalization of development expenses (815) (171)
as required by IAS 38 (note 4)
* Amortization of capitalized development 14 14
expenses (note 4)
* Change in fair value of carry-back tax assets 0 (3)
Total adjustments to reported
profit before income tax (629) (61)
Pro forma pre-tax profit 1,256 965
Pro forma pre-tax profit per share (*) 0.12 0.09
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(*) Pro forma pre-tax profit per share is computed using the weighted average number of ordinary shares outstanding during the respective periods, i.e. 10,259,394 shares and 10,159,696 shares for the quarters ended 31 March 2007 and 2006, respectively.
The Company provides information prepared in accordance with and required by IFRSs, but it believes that evaluating its ongoing results may not be as useful if an investor is limited to reviewing only IFRS financial measures.
Accordingly, the Company uses pro forma financial information to evaluate its ongoing operations as well as for internal planning and forecasting purposes.
The Company’s management does not itself, nor does it suggest that investors should, consider such pro forma financial measures in isolation from, or as a substitute for, financial information prepared in accordance with IFRSs.
The Company presents such pro forma financial measures in reporting its financial results to provide investors with an additional tool to evaluate the Company’s results in a manner that focuses on what the Company believes to be its ongoing business operations.
The Company’s management believes that the inclusion of pro forma financial measures provides consistency and comparability with past reports of financial information and has historically provided comparability to similar companies in the Company’s industry, many of which present the same or similar pro forma financial measures to investors.
When the Company uses such a pro forma financial measure, it provides a reconciliation of the pro forma financial measure to the most closely applicable financial measure required by IFRSs.
Investors are encouraged to review the related IFRS financial measures and the reconciliation of these pro forma financial measures to the most directly comparable IFRS financial measures as detailed above.
GLOBAL GRAPHICS SA AND SUBSIDIARIES
PRO FORMA NET PROFIT COMPUTATION
In thousands of Euro, except share data in Euro
Unaudited figures
Quarters
ended 31 March
2007 2006
Reported net profit 1,377 834
Add back (deduct):
* Amortization of intangible assets
- recorded in cost of sales 17 17
- recorded in operating expenses 19 19
* Share compensation expenses 136 63
* Capitalization of development expenses (815) (171)
as required by IAS 38 (note 4)
* Amortization of capitalized development 14 14
expenses (note 4)
* Change in fair value of carry back tax assets 0 (3)
* Tax effect of above-mentioned adjustments 240 48
Total adjustments to reported net profit (389) (13)
Pro forma net profit 988 821
Pro forma net profit per share (*) 0.10 0.08
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(*) Pro forma net profit per share is computed using the weighted average number of ordinary shares outstanding during the respective periods, i.e. 10,259,394 shares and 10,159,696 shares for the quarters ended 31 March 2007 and 2006, respectively.
The Company provides information prepared in accordance with and required by IFRSs, but it believes that evaluating its ongoing results may not be as useful if an investor is limited to reviewing only IFRS financial measures.
Accordingly, the Company uses pro forma financial information to evaluate its ongoing operations as well as for internal planning and forecasting purposes.
The Company’s management does not itself, nor does it suggest that investors should, consider such pro forma financial measures in isolation from, or as a substitute for, financial information prepared in accordance with IFRSs.
The Company presents such pro forma financial measures in reporting its financial results to provide investors with an additional tool to evaluate the Company’s results in a manner that focuses on what the Company believes to be its ongoing business operations.
The Company’s management believes that the inclusion of pro forma financial measures provides consistency and comparability with past reports of financial information and has historically provided comparability to similar companies in the Company’s industry, many of which present the same or similar pro forma financial measures to investors.
When the Company uses such a pro forma financial measure, it provides a reconciliation of the pro forma financial measure to the most closely applicable financial measure required by IFRSs.
Investors are encouraged to review the related IFRS financial measures and the reconciliation of these pro forma financial measures to the most directly comparable IFRS financial measures as detailed above.
GLOBAL GRAPHICS SA AND SUBSIDIARIES
INFORMATION ON SHARE AND SHARE OPTION NUMBERS, VOTING RIGHTS AND SIGNIFICANT SHAREHOLDINGS AS AT 31 MARCH 2007
Unaudited figures
SHARE AND SHARE OPTION NUMBERS
a) SHARE NUMBER
- Shares outstanding at 1 January 2007 10,247,530
- Shares issued in the quarter ended 31 March 2007 25,001
- Shares outstanding at 31 March 2007 10,272,531
b) SHARE OPTIONS NUMBER
- Options outstanding at 1 January 2007 172,277
- Options granted in the quarter ended 31 March 2007 0
- Options that were cancelled in the quarter ended 31 March 2007 (4,350)
- Options that expired in the quarter ended 31 March 2007 0
- Options that were exercised in the quarter ended 31 March 2007 (25,001)
- Options outstanding at 31 March 2007 142,926
of which:
Vested options, i.e. immediately exercisable at 31 March 2007 76,749
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c) CONTINGENTLY ISSUABLE SHARES
On 12 December 2006, certain directors and employees were granted 69,710 shares which will be issuable for no cash on the second anniversary of the grant date (i.e. 12 December 2008) upon the satisfaction of the following conditions:
- Continuing employment condition: the share grant recipient must be a director or an employee of the Company at any time until 12 December 2008;
- Minimum share price condition: the closing price for the Company’s share on the last trading day immediately preceding 12 December 2008, or the average of closing prices over the twenty trading day period immediately preceding such date, must be at least equal to Euro 12.00 a share; and
- The shares may not be sold, or otherwise disposed of, before 12 December 2010.
VOTING RIGHTS (*)
* Shares with a double voting right (**) 23,090
* Shares with a single voting right 10,249,441
* Total number of voting rights attached to the Company’s shares 10,295,621
outstanding at 31 March 2007
SIGNIFICANT SHAREHOLDINGS
* Stichting Andlinger & Co. Euro-Foundation
- Number of shares held 2,882,981
- % of total outstanding issued shares 28.06%
- Number of voting rights held 2,882,981
- % of total voting rights (*) 28.00%
* Other shareholders
- In excess of 5% of outstanding issued shares (i.e. 513,627 shares) none
- In excess of 5% of outstanding voting rights (i.e. 514,782 rights) none
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Notes:
(*) The information on voting rights is provided with regards to voting rights relating to all outstanding ordinary shares of the Company at 31 March 2007 (i.e. 10,272,531 shares), not taking into account the 68,670 own shares held by the Company at that date which are deprived from their voting rights.
Editor's Notes
Over Global Graphics
Global Graphics (http://www.globalgraphics.com) is een toonaangevende ontwikkelaar van open document technologie en drukoplossingen. Het levert krachtige en gesofistikeerde softwarecomponenten voor de grafische en commerciële drukindustrie, voor de markt van digitale druk en voor PDF (Portable Document Format) software toepassingen. Global Graphics verkoopt zijn RIP, PDF, workflow en kleurentoepassingen aan een klantenkring die hoofdzakelijk bestaat uit apparatuurproducenten (OEMs), integratoren, softwareontwikkelaars en distributeurs. Deze partners omvatten de meeste belangrijke spelers in de pre-press wereld, breedformaatkleurenprinters, kleurproefystemen, digitale kopieerapparaten, printers voor de kantoor- en SOHO-markt en een brede waaier van toonaangevende softwaretoepassingen.
Toekomstgerichte verklaringen
Dit persbericht bevat, naast historische informatie, toekomstgerichte verklaringen die risico’s en onzekerheden inhouden. Dit omvat verklaringen aangaande de groei- en expansieplannen van de onderneming, haar financiering en de verwachte resultaten voor toekomstige perioden. Dergelijke verklaringen steunen op de huidige verwachtingen van het management en zijn onderhevig aan een aantal onzekerheden en risico’s die ertoe zouden kunnen leiden dat de feitelijke resultaten materieel verschillen van die beschreven in de toekomstgerichte verklaringen. Hoewel het management ervan overtuigd is dar zijn verwachtingen die in de toekomstgerichte verklaringen naar voren komen redelijk zijn, gebaseerd op de thans beschikbare informatie, kan het aan niemand garanderen dat de verwachtingen juist zullen blijken. Dienovereenkomstig is het aangewezen dat lezers niet louter en alleen op deze toekomstgerichte verklaringen vertrouwen. In ieder geval zijn deze verklaringen van toepassing op de datum van deze persmededeling. De vennootschap neemt geen enkele verplichting op zich om de hier geuite verklaringen te herzien of te actualiseren teneinde gebeurtenissen of omstandigheden van na de datum van deze mededeling of nieuwe informatie of het voorkomen van onvoorziene gebeurtenissen te reflecteren.
Contacts
Johan Volckaerts, CEO
Tel.: + 32 2 647 80 70
Alain Pronost, CFO
Tel.: + 33 6 62 60 56 51