Ssh Communications Security Oyj · OMXHEX:SSH1V

Ssh Communications Security Oyj — Q3 2006 Earnings Presentation

19 slides from Ssh Communications Security Oyj's earnings presentation, November 2006

  1. Slide 1: Financial Results January 1 – September 30, 2006

    SSH COMMUNICATIONS SECURITY CORP FINANCIAL RESULTS January 1 – September 30, 2006 WELCOME! COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 1

  2. Slide 2: Agenda

    Agenda y 3Q Business Review - Arto Vainio y Financial report 1-9/2006 - Mika Peuranen www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 2

  3. Slide 3: 3rd Quarter Business Review

    3rd Quarter Business Review Arto Vainio CEO SSH Communications Security Corp COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 3

  4. Slide 4: 1-3Q 2006 highlights – key numbers

    1-3Q 2006 highlights – key numbers y Net Sales 6.1 MEUR y Growth 1-3Q/2005 to 1-3Q/2006 +18.3% y Americas revenue +7 % y Europe revenue +41% y Asia revenue +44% y EBIT –1.4 MEUR, Net profit –0.9 MEUR www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 4

  5. Slide 5: 3Q 2006 highlights

    3Q 2006 highlights y Net Sales 1.8 MEUR y A number of US customer orders moving forward y Sales Q3/2005 to Q3/2006 -24.9% y Americas –39% y Europe +30% y Asia +15% y EBIT –0.5 MEUR, Net profit –0.4 MEUR www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 5

  6. Slide 6: SSH Tectia business approach

    SSH Tectia business approach y SSH Tectia is a data security solution aimed at large corporations, financial institutions and government organisations y A system level product with versatile expansion potential in all existing and new accounts y Multi-year frame agreements, multi-year maintenance re

  7. Slide 7: Notes on typical SSH Tectia projects

    Notes on typical SSH Tectia projects y SSH Tectia projects form parts in larger IT infrastructure programs y Several projects have been triggered by SOX or PCI audits y New regulations and cost of operating data security convert customers to commercially supported platforms such as SSH Tectia y Eval

  8. Slide 8: 2006 ongoing activities

    2006 ongoing activities y Target customers in active evaluations and preparation of new projects in all markets y Good portfolio of mature, well-developed sales cases y New sales teams operational, additional hiring in the USA y New products and applications expand our available market y Original: s

  9. Slide 9: 2006 prospects

    2006 prospects y New legislation and new, tighter industry specific data security practices/ policies/ standards y E.g. Sarbanes-Oxley Act (SOX), Health Insurance Portability and Accountability Act (HIPAA), and Gramm-Leach-Bliley Act (GLBA), Visa PCI standards, etc. y Next Generation SSH Tectia prod

  10. Slide 10: Financials January 1 – September 30, 2006

    FINANCIALS January 1 – September 30, 2006 Mika Peuranen CFO SSH Communications Security Corp COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 10

  11. Slide 11: Revenue and EBIT by quarter

    Revenue and EBIT by quarter Revenue EBIT 5 4 3 2 1 0 -1 -2 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 11

  12. Slide 12: Financial Highlights 1-3Q06

    Financial Highlights 1-3Q06 y Net sales EUR 6.1 million (EUR 5.2 million in 2005) y Operating loss EUR –1.4 million (EUR –3.7 million in 2005) y During the first three quarters revenue increased 18 % compared to the previous year´s first three quarters y Fixed costs decreased by EUR 1.2 million comp

  13. Slide 13: Key Financials 1-3Q06

    Key Financials 1-3Q06 EUR 1000 1-3Q06 % of sales 1-3Q05 % of sales Revenues 6 127 5 179 Purchasing and Production Costs 47 0.8 % 58 1.1 % Gross Margin 6 079 99.2 % 5 121 98.9 % Research and Development 2 437 39.8 % 2 614 50.5 % Sales and Marketing 4 118 67.2 % 4 871 94.0 % Administration 1 202 19.6

  14. Slide 14: Quarterly Financials 2Q05–3Q06

    Quarterly Financials 2Q05–3Q06 EUR 1000 3Q06 2Q06 1Q06 4Q05 3Q05 2Q05 2005 Revenues 1 770 2 320 2 037 4 118 2 358 1 224 9 297 Gross Margin 1 752 2 306 2 022 4 090 2 335 1 201 9 211 Research and Development 749 825 863 810 748 880 3 424 Sales and Marketing 1 244 1 534 1 340 1 867 1 381 1 580 6 738 Ad

  15. Slide 15: Net Sales by Market in 1-3Q06

    Net Sales by Market in 1-3Q06 Asia Pacific Asia Americas 12.4% Americas Pacific 61.5% 67.9% 10.2% Europe Europe and and Rest of Rest of World World 26.1% 21.9% 1-3Q06 EUR 6.1 million 1-3Q05 EUR 5.2 million www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 15

  16. Slide 16: Development of Number of Personnel, Revenue and EBIT

    Development of Number of Personnel, Revenue and EBIT EUR million Personnel Revenue EBIT # of personnel 10 8 160 6 4 120 2 0 80 -2 -4 40 -6 -8 0 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 16

  17. Slide 17: Development of Costs Structure

    Development of Costs Structure Sales & Marketing EUR million Research & Development Administration 5 4 3 2 1 0 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 17

  18. Slide 18: Outlook for 2006

    Outlook for 2006 y The full year sales and profitability remain highly dependent on the sales results of the last quarter y Due to the large size of individual orders and uncertainty of timing, significant variance of revenue per quarter may occur www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECU

  19. Slide 19: Further Information

    Further Information: Arto Vainio, CEO +358 20 500 7400 Mika Peuranen, CFO +358 20 500 7419 http://www.ssh.com/investors/ THANK YOU! COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 19

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