Ssh Communications Security Oyj · OMXHEX:SSH1V

Ssh Communications Security Oyj — Q1 2006 Earnings Presentation

18 slides from Ssh Communications Security Oyj's earnings presentation, May 2006

  1. Slide 1: Financial Results January 1 – March 31, 2006

    SSH COMMUNICATIONS SECURITY CORP FINANCIAL RESULTS January 1 – March 31, 2006 WELCOME! COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 1

  2. Slide 2: Agenda

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

  3. Slide 3: 1st Quarter Business Review

    1st 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: 1Q highlights – key numbers

    1Q highlights – key numbers y Net Sales 2.0 MEUR y Growth Q1/2005 to Q1/2006 +27% y Americas revenue +41 % y Europe revenue +19% y Asia revenue +13% y EBIT –0.65 MEUR, Net profit –0.37 MEUR y 2 orders above 100 kEUR; largest single order 0.16 MEUR y Frame agreement and first order from a German indu

  5. Slide 5: 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

  6. Slide 6: 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 sales projects have been triggered by SOX or PCI audits y New regulations and cost of implementing and operating data security convert customers to commercially supported platforms su

  7. Slide 7: Q1 ongoing activities

    Q1 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: sec

  8. Slide 8: 2006 outlook positive

    2006 outlook positive y Sales prospect base grown significantly larger than year ago y Next Generation SSH Tectia products ready and selling y SSH Tectia covers the widest range of enterprise OS platforms y New applications of SSH Tectia expand our market y SSH’s cost structure corrected and large i

  9. Slide 9: Financials January 1 – March 31, 2006

    FINANCIALS January 1 – March 31, 2006 Mika Peuranen CFO SSH Communications Security Corp COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. www.ssh.com 9

  10. Slide 10: Revenue and EBIT by quarter

    Revenue and EBIT by quarter Revenue EBIT 5 4 3 2 1 0 -1 -2 -3 1Q05 2Q05 3Q05 4Q05 1Q06 www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 10

  11. Slide 11: Financial Highlights 1Q06

    Financial Highlights 1Q06 y Net sales EUR 2.0 million (EUR 1.6 million in 2005) y Operating loss EUR –0.6 million (EUR –1.9 in 2005) y During the first quarter revenue increased 27 % compared to the last year’s first quarter y Fixed costs decreased by EUR 0.8 million compared to the previous year´s

  12. Slide 12: Key Financials 1Q06

    Key Financials 1Q06 EUR 1000 1Q06 % of sales 1Q05 % of sales Revenues 2 037 1 598 Purchasing and Production Costs 15 0.7 % 13 0.8 % Gross Margin 2 022 99.3 % 1 585 99.2 % Research and Development 863 42.4 % 985 61.6 % Sales and Marketing 1 340 65.8 % 1 910 119.5 % Administration 468 23.0 % 547 34.2

  13. Slide 13: Quarterly Financials 4Q04–1Q06

    Quarterly Financials 4Q04–1Q06 EUR 1000 1Q06 4Q05 3Q05 2Q05 1Q05 4Q04 2005 Revenues 2 037 4 118 2 358 1 224 1 598 1 908 9 297 Gross Margin 2 022 4 090 2 335 1 201 1 585 1 856 9 211 Research and Development 863 810 748 880 985 873 3 424 Sales and Marketing 1 340 1 867 1381 1 580 1 910 2 204 6 738 Adm

  14. Slide 14: Net Sales by Market in 1Q06

    Net Sales by Market in 1Q06 Asia Pacific Asia Americas 11.7% Americas Pacific 59.9% 55.9% 13.3% Europe Europe and and Rest of Rest of World World 28.4% 30.8% 1Q06 EUR 2.0 million 1Q05 EUR 1.6 million www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 14

  15. Slide 15: 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 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 15

  16. Slide 16: Development of Costs Structure

    Development of Costs Structure Sales & Marketing EUR million Research & Development Administration 5 4 3 2 1 0 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 www.ssh.com COPYRIGHT © 2005 SSH COMMUNICATIONS SECURITY CORP. ALL RIGHTS RESERVED. 16

  17. Slide 17: Financial Targets for 2006

    Financial Targets for 2006 y Thanks to growth in tenders, new customers and new products, SSH expects to show a profit for 2006 y SSH committed to continue the 2H/2005 positive trend y Prospect base substantially higher than a year ago y New major customers provide long-term sustainability and growt

  18. Slide 18: 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 18

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