Ssh Communications Security Oyj · OMXHEX:SSH1V

Ssh Communications Security Oyj — Q3 2004 Earnings Presentation

14 slides from Ssh Communications Security Oyj's earnings presentation, October 2004

  1. Slide 1: SSH Communications Security Corp Financial Results January 1 – September 30, 2004

    SSH COMMUNICATIONS SECURITY CORP FINANCIAL RESULTS January 1 – September 30, 2004 WELCOME! COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 1

  2. Slide 2: Business Review

    Business Review January 1 – September 30, 2004 Johanna Lamminen CFO SSH Communications Security Corp COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 2

  3. Slide 3: Highlights 1-3Q04

    Highlights 1-3Q04 ƒ Net sales for January-September totaled EUR 6.3 million, down 42.5 % on year (EUR 11.0 million in 2003) ƒ Compared to the net sales of products belonging to the SSH Tectia™ solution net sales increased by about 5 % year on year ƒ During the third quarter SSH Tectia revenue increa

  4. Slide 4: Market and Sales Development During 1-3Q04

    Market and Sales Development During 1-3Q04 ƒ SSH’s customers became more active in requesting tenders and launching SSH Tectia product tests ƒ The conclusion of actual contracts is still a slow process ƒ Legislation concerning data confidentiality and secure data tranfer is changing in the USA and E

  5. Slide 5: Business Outlook 2004

    Business Outlook 2004 ƒ Customers will remain careful with their investment decisions, but the changing legislation is expected to have a positive effect on the market ƒ Strengthening of sales organization has now been finalized in key markets and will help SSH to expand in it’s key market areas ƒ N

  6. Slide 6: Financials

    FINANCIALS January 1 – September 30, 2004 Johanna Lamminen CFO SSH Communications Security Corp COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 6

  7. Slide 7: Financial Highlights 1-3Q04

    Financial Highlights 1-3Q04 ƒ Net sales EUR 6.3 million (EUR 11.0 million in 2003) ƒ SSH Tectia business increased by 5 % at the same time ƒ Operating results EUR -4.6 million (EUR -4.0 in 2003) ƒ During the third quarter SSH Tectia revenue increased almost 30 % compared to the last year’s third qua

  8. Slide 8: Key Financials 1-3Q04

    Key Financials 1-3Q04 EUR 1000 1-3Q04 % of sales 1-3Q03 % of sales Revenues 6 322 10 998 Purchasing and Production Costs 97 1.5 % 2 476 22.5 % Gross Margin 6 224 98.5 % 8 521 77.5 % Research and Development 2 950 46.7 % 4 000 36.4 % Sales and Marketing 6 305 99.7 % 6 878 62.5 % Administration 1 835

  9. Slide 9: Quarterly Financials 2Q03–3Q04

    Quarterly Financials 2Q03–3Q04 EUR 1000 3Q04 2Q04 1Q04 4Q03 3Q03 2Q03 2003 Revenues 2 107 2 554 1 661 2 853 3 347 4 085 13 851 Gross Margin 2 085 2 509 1 630 2823 2 827 2 835 11 345 Research and Development 761 1 146 1 043 1 179 1 144 1 218 5 178 Sales and Marketing 1 880 2 385 2 039 2 704 2 033 2 3

  10. Slide 10: Development of Costs Structure

    Development of Costs Structure Sales & Marketing EUR million Research & Development Administration 6 5 4 3 2 1 0 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 10

  11. Slide 11: Net Sales by Market in 1-3Q04

    Net Sales by Market in 1-3Q04 Asia Pacific Asia Americas 6.1% Americas Pacific 67.9% 45.4% 15.3% Europe Europe and and Rest of Rest of World World 26.0% 39.3% 1-3Q04 EUR 6.3million 1-3Q03 EUR 11.0 million COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 11

  12. Slide 12: Development of Number of Personnel, Revenue and EBIT

    Development of Number of Personnel, Revenue and EBIT # of personnel EUR million Personnel Revenue EBIT 10 200 8 6 150 4 2 100 0 -2 -4 50 -6 -8 0 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 12

  13. Slide 13: Financial Targets 2004

    Financial Targets 2004 ƒ SSH estimates that its net sales will be between EUR 9 million and EUR 11 million ƒ The range is due to the increasing number of large deals and uncertainty of closing them during the FY 2004 ƒ SSH estimates that the operating results for the full fiscal year 2004 will be ne

  14. Slide 14: Further Information

    Further Information: Arto Vainio, CEO +358 20 500 7400 Johanna Lamminen, CFO +358 20 500 7419 THANK YOU! COPYRIGHT © 2004 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 14

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