f-secure corporation interim report 1q 2008 · 2020-03-24 · interim report 1q08 –april 23rd,...

F-Secure CorporationInterim report 1Q 2008

April 23rd, 2008

Kimmo Alkio, President and CEO

Interim Report 1Q08 – April 23rd , 2008

Q1 Revenues

• Solid overall growth of 15% to 26.6m

• Strong ISP growth to 10.9m

• +8% quarter over quarter

• +41% from 1Q07 (YoY)

• Mobile security advances

• New mobile operator and device

manufacturer partnerships

• Traditional channel sales grew +2% to

15.7m

0

5

10

15

20

25

30

Revenues


Q1 Costs

• Q1 Costs ~19.5m

• Continuously investing into future

growth

• Costs include

• Capitalization of Development costs

marginal

• Granted stock options ~0.2m

• Gross margin 92% (92%)

0

5

10

15

20

25

Q2'0

5

Q3'0

5

Q4'0

5

Q1'0

6

Q2'0

6

Q3'0

6

Q4

´06

Q1

´07

Q2'0

7

Q3

'07

Q4'0

7

Q1'0

8

S&M R&D G&A write-off


Q1 Operating Result

• EBIT 5.3m

• 20% of revenues

• +31% EBIT growth from 1Q07

• Equity ratio strong

• Mar 31, 2008 71%*

• Dec 31, 2007 82%

• Sep 30, 2007 81%

-2

-1

0

1

2

3

4

5

6

7

Without impairment loss of Network Control* If dividends were paid in March

equity ratio 81% - was paid in April


Development of EBIT margin

• Continue to prioritise growth over short

term profitability

• Average EBIT has improved gradually

• The 2-4 year goal is to reach 25% EBIT

level

0 %

5 %

10 %

15 %

20 %

25 %

30 %

Q3'0

3

01

'04

Q3'0

4

Q1'0

5

Q3'0

5

Q1'0

6

Q3'0

6

Q1'0

7

Q3'0

7

Q1'0

8

EBIT% Ave (4 qrts)

Graph shows EBIT without the non-recurring

impairment loss of Network Control in 4Q06


Q1 Cash flow

• Positive cash flow 6.1m

• Cash flow includes:

• SRV payment over 1m

• Prepaid corporate taxes

• Liquid assets 90.3m (72.4m)

• Market value on Mar 31st, 2008

50

55

60

65

70

75

80

85

90

95

Dividend Cash position

Dividend pay-out


Q1 Deferred Revenues

• Deferred revenues accrued in balance

sheet

• Mar 31, 2008 33.7m

• Dec 31, 2007 31.9m

• Sep 30, 2007 29.1m

• Development following an annual pattern

10

15

20

25

30

35

Q2

'0

5

Q3

'0

5

Q4

'0

5

Q1

'0

6

Q2

'0

6

Q3

'0

6

Q4

´0

6

Q1

'0

7

Q2

'0

7

Q3

'0

7

Q4

'0

7

Q1

'0

8

Deferred Revenues


Regional Revenue Split

2007Q12008Q1

40 %

43 %

8 % 9 %

Nordic Countries RoE

North America RoW

39 %

44 %

8 %9 %


ISP Business – continued strong growth

• 10.9m of revenues

• +41% of total Q1 revenues

• Strong growth

• +8% from 4Q07, +41% from 1Q07

• Growth accelerating activities continued

0

2000

4000

6000

8000

10000

12000

Q1/01 Q1/02 Q1/03 Q1/04 Q1'05 Q1'06 Q1'07 Q1'08

kE

UR


Growing number of ISP partners

• 169 partners in 38 countries

• 6 new partners in Q1

• Strong competitiveness in signing new

partners continues

• Q1 significant partner announcements

• Cabovisao, Portugal

• Comstar-Direct, Russia

• Ziggo, the Netherlands

0

20

40

60

80

100

120

140

160

180

Cumulative


F-Secure Partners’ annual market share of residential broadband

0 %

5 %

10 %

15 %

20 %

25 %

30 %

35 %

40 %

2006 2007 2006 2007 2006 2007

F-Secure

Partners’ market share of residential

broadband

• 37% (34%) in Europe

• 10% (10%) in NA

• 9% (n/a) in Asia

(estimates by Dataxis & F-

Secure)

Europe

NA ASIA


F-Secure Service Provider partnersin the Americas


F-Secure Service Provider partnersin EMEA part1


F-Secure Service Provider partnersin EMEA part 2


F-Secure Service Provider partnersin APAC


Q1 Mobile Security Business

• Device manufacturers

• Partnership announcement (Q1) with

Sony Ericsson and Toshiba

Information Systems

• Available for a majority of the

currently shipping or upcoming Nokia

S60 3rd edition devices

• Continued strong growth in trial usage

• Slow steady growth in revenues

• Ca 3% of total revenues (Q1)

• Sony Ericsson integration project

revenues affecting Q1

• Operators key for awareness &

availability

• T-Mobile UK & Germany

• Orange UK & Switzerland

• Swisscom

• TeliaSonera

• Elisa

• CSL (Hong Kong)


Recent mobile partner in APAC

The biggest mobile operator in Hong Kong

Symbian S60, UIQ and WinMobile phones


Key product announcements in Q1

• F-Secure Health Check

• Pre-release in Q4, official launch Q1

• F-Secure Mobile Security for Windows

Mobile (Apr 08)


Number of Personnel 602 at the end of quarter

0

100

200

300

400

500

600

700

Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108

S&M R&D G&A


Future Outlook

• Strategy in a nutshell

(1) Continue to drive growth

(2) Capitalize on industry leadership in Security

as a Service

(3) Develop leadership in mobile security

• Investing in growth

• New sales & marketing activities for

scalability in ISP& mobile

• Pursue security related technologies and

new services related to the online wellbeing

• Mobile business

• Revenues continue to grow gradually

• Remaining a small part of total revenues in

2008

Based on the sales pipeline at the time of publishing, existing subscriptions and support contracts, previous experience

• Q2 2008 outlook

• Revenues 26.5-28.5m

• Costs below 21m

• FY 2008 outlook

• Expected revenues 110-120m

• EBIT% for the full year 19-23%

• ISP growth c. 40% during 2008

f-secure corporation interim report 1q 2008 · 2020-03-24 · interim report 1q08 –april 23rd,...

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