TIE Holding N.V. (“TIE”) reports the following highlights with regard to the fiscal year 2011 (October 1, 2010 – September 30, 2011) and the 4th quarter 2011 (July 1, 2011 – September 30, 2011).
Hoofddorp, The Netherlands
During the fourth Quarter 2011 Total Income amounts to € 2,684k (Q4_2010: 2,613k). Operating Income Q4 amounts to € 298k (Q4_2010: € -1,103k) and Total Comprehensive Income to € 344k (Q4_2010: € -1,534k).
Total Income for the year amounts to € 10,671k (2010: € 11,013k), Operating Income amounts to € 597k (2010: € -1,386k) and Total Comprehensive Income amounts to € 393k (2010: € -1,765k). The net cash flow from operating activities for the year amounted to € 958k (2010: - € 841k).
The focus of 2011 was on growing our SaaS business; the SaaS Income showed a growth of 20% from € 3,377k, to € 4,069k. As a result of this our Contracted Value for SaaS for the next three years showed a growth of 49% from € 6,1million per April 1, 2011 to
€ 9,1 million per October 1, 2011. During the year the Company managed to strengthen its partnerships with CBS/Cnet, Epicor, Progress Software and entered into new partnerships with Medius, Newco Food Retail and Gothia. During 2011 the Company also released 2 new Business Integration solutions, TIE Kinetix SmartBridge for Europe and Evision 6.0. for the US market.
CEO Jan Sundelin said: “I’m pleased to report that SaaS Income has grown during the 4th quarter by 12% compared to last year. Year to date 2011 SaaS Revenue increased by 20% compared to last year, resulting from the contribution from our Content Syndication and E-commerce businesses. The SaaS and Maintenance models allow us to make reliable projections for the coming 3 years. Based on a 3 year projection our order intake for SaaS has grown by € 3,1 million since April 1, 2011, offering a more sustainable projected revenue for the next years. The License Income for the 4th quarter is back on track compared to last year, due to the introduction of new license products as TIE Kinetix SmartBridge and Evision 6.0. Overall costs are under control, and showed a decrease of 7%, after adjustment for one-time expenses. The Company had a positive net cash flow from operating activities”.
Starting fiscal year 2011 and up to this moment, the Company reported the following highlights:
Customers and Products:
• October 26, 2010: TIE announced that the TIE Kinetix “EDI Managed Services On-Demand” is available to Epicor Customers;
• November 15, 2010: TIE announced that it participates in EU project Omelette;
• December 9, 2010: TIE announced the website for SME to reduce costs by invoicing using WebEDI:www.3stappenEDI.nl;
• January 18, 2011: TIE announced that it participates in the “Webwinkel vakdagen 2011” as Gold sponsor;
• January 20, 2011: TIE announced that it will modernize the Emobiel.nl webshop;
• January 24, 2011: TIE announced that it has entered into a strategic partnership with Medius;
• January 25, 2011: TIE reported that it received the SaaS excellence award at the Global Partner Conference of Progress Software Corporation;
• March 9, 2011: TIE announced being Gold Sponsor of Forum 2011;
• April 26, 2011: TIE announced it has signed an agreement with ADEC with a value of € 1 million;
• April 28, 2011: TIE announced that it entered into a partnership with Newco Food Retail;
• May 17, 2011: TIE announced the release of TIE Kinetix SmartBridge;
• May 24, 2011:TIE announced its participation at TM Management World Conference;
• June 8, 2011: TIE announced the release of eVision 6.0 , an update to the Business Integration Platform;
• July 4, 2011: TIE announced that Quantore selected Total Integrated E-commerce;
• July 7, 2011: TIE announced strategic partnership with Gothia;
• August 18, 2011: TIE announced that TIE’s global strategic partner CNET Content Solutions has expanded its relationship with a global industry leading manufacturer, leveraging CCS’s newest service, ContentCast™ in order to maximize its global digital marketing presence through this real-time content and brand syndication service;
• August 28, 2011: TIE announced the introduction of the Home Deco Channel guide in cooperation with Sanoma Media;
• September 14, 2011: TIE announced the release of the new HI.nl webshop;
• September 15, 2011: TIE announced that Safety shop has selected the TIE E-commerce Platform to substantiate its growth to European level;
• September 20,2011: TIE announced that the new webshop of www.MKBkantoorartikelen.nl went online;
• October 20, 2011: TIE announced its position as technology provider for the European Union Project “Adventure”.
Legal and Financial:
• November 10, 2010: TIE announced that it is selecting a new Banker;
• November 24, 2010: TIE announced: 2010 Annual Result € 1,700k negative;
• December 28, 2010: TIE announced that it grants stock option to the Managing Director of TIE France SAS;
• January 31, 2011: TIE announced publication of its Annual Report 2010 and agenda for the annual General Meeting of Shareholders;
• February 16, 2011: TIE reported Q1_2011 trading update, Profitable Q1 Total Comprehensive income of € 114k;
• March 23, 2011: TIE reported that the Supervisory Board reappoints Jan Sundelin as member of the management board of TIE Holding;
• March 31, 2011: TIE reported that it had settled its dispute with CMC;
• April 1, 2011: TIE reported conversion of Convertible Bonds amounting to € 450k;
• May 25, 2011:TIE reported its half year results: Cash Flow positive and Profitable;
• June 28, 2011: TIE reported the release of the updated Valuation Proposition Report: TIE ready growth;
• August 17,2011: TIE reported Q3_2011 trading update: Operating Income on track;
• August 31, 2011: TIE reported conversion of Convertible Bonds amounting to € 870k.
Financial and Cash Position:
Shareholders’ Equity amounts to € 4,535k on September 30, 2011 (€ 2,663k on September 30, 2010). Equity per September 30, 2011 amounts to € 4,580k (€ 4,028k per September 30, 2010) including Convertible Bonds amounting to € 45k (€ 1,365k per September 30, 2010).
On September 30, 2011 the Company held a net cash and cash equivalents position of € 380k (September 30, 2010 € 10k).
The net cash flow from operating activities for the year amounted to € 958k (2010: € 841k). During 2011 the Company did redeem the credit facility for € 316k and loan of € 100k, as outstanding per September 2010.
Impairment/Repairment of Intangible Assets:
Based on the results of the annual impairment test the Company did a repairment (reversal of impairment) of the CSP trademark amounting to € 200k and an impairment of Goodwill of the CGU TIE France of € 40k.
The CGU’s are:
TIE Netherlands (Business Integration)
TIE France (Business Integration)
TIE Commerce (Business Integration)
TIE MamboFive (E-commerce)
TIE CSP (Content Syndication)
As in past years we used a discounted cash flow model to determine the value in use. TIE has reassessed the assumptions regarding expected growth rates and the horizon for projected cash flows.
Contracted Value: Projections
The Contracted Value is calculated for the next three years, using the following assumptions:
SaaS and Maintenance & Support Contracts run between 12 and 36 months with an automatic renewal for 12 months. As contracts may renew during this three year period shown, the Contracted Value is adjusted based on historical churn rates.
The Total Contracted Value shows a growth from € 13,3 million per April 1, 2011 to € 18,5 million to October 1, 2011 for the next 3 years.
As a result of the growth of SaaS Income for all TIE solutions from € 3,4 million to € 4,1 million for the year, the Contracted Value for SaaS increased from € 6,1 million per April 1, 2011 to
€ 9,2 million to October 1, 2011, for the next 3 years.
Maintenance and Support Contracted Value shows a growth from € 7,1 million per April 1, 2011 to € 7,4 million per October 1, 2011.
License and Consultancy activities have been included based upon their current contract values. EU projects (other income) are included based on the actual contracts.
The financial results of the Company are unaudited. The audit of the Company's Financial Statements will not be completed until the publication thereof in January 2012.
Based on the management information used and the relative share of the various operating segments the Company now recognizes the following operational segments:
-TIE Netherlands (business integration)
-TIE MamboFive (E-commerce)
-TIE Rest of World
Pending Litigation: Samar claim
Since December 2007 the Company has been involved in discussions and subsequently in legal proceedings with Samar. All claims in the summary proceedings were instantly dismissed at the court hearing of February 15, 2008. On July 7, 2010, the court of Haarlem unexpectedly granted all claims by Samar. In Q4_2010, TIE has paid damages. This amount may be adjusted upwards or downwards in the procedure regarding the assessment of the damages. TIE has filed an appeal and provided the court with its substantiated findings. The Company currently awaits Samar’s response.
Consolidated Balance Sheet
At September 30,
Consolidated Balance Sheet
At September 30,
Consolidated Income Statement
For the year ended September 30,
Consolidated Cash Flow Statement
For the 12 months ended 30 September,
Consolidated Income Statement
For the 3 months ended September 30,
For the three months ended September 30, 2011
TIE (NYSE Euronext: TIE Holding) delivers innovative web centric, software based solutions that enable all trading partners in the supply chain to work seamlessly together on the major E-commerce processes of marketing, sales and fulfillment. With its TIE Kinetix concept, it provides a Total Integrated E-commerce process, embracing three innovative platforms for Business Integration (including e-invoicing, XML/EDI data synchronization), Content Syndication and E-commerce. The Total Integrated E-commerce solutions minimize the energy needed for a transaction lifecycle throughout the supply chain giving organizations the advantage to reduce cost and maximize revenue and profit.
TIE has more than two decades of experience in developing and implementing global
E- commerce standards. TIE is a listed company with offices in the United States, Australia, France and the Netherlands.
TIE Holding N.V.
Jan Sundelin, CEO
2132 JE Hoofddorp
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