Q3 Report ver4 - Techstep ASA · 2019-02-14 · the latest Cisco VNI Global Mobile Data Traffic Forecast Update, mobile data traffic in Japan will grow 14‐fold between 2012 and

QUARTERLY REPORT / Q3 2013 QUARTERLY REPORT / Q3 2013

Quarterly ReportQ3 2013

QUARTERLY REPORT / Q3 2013

3. Q3 Quick Summary

5. CEO update

7. Schilling´s Monthly

8. Business focus

11. Market Outlook

12. Result of Operations

14. Cash flow

15. Financial statements

20. Notes

22. Financial Calendar

Content

2


EBITDA continues to improve Yr./Yr.

88.9%Revenue increased 88.9%

over the same period last

year

Secure Mobility strengthens its position in the UK market

HP contract proves Birdstep´s go‐to‐market strategy in new markets

66% In North America mobile off‐load is expected to account for 66 percent of total mobile traffic in 2017


JULY – SEPTEMBER 2013 > Revenue was NOK 16.5 (8.7) million, representing an increase of 88.9% over the same

period last year.

> EBITDA ended at NOK ‐1.9 (‐7.7) million, representing a reduced loss of NOK 5.8 million over the same period last year.

> Continuing operating earnings per share amounted to NOK ‐0.04 (‐0.07).

> Total net cash flow amounted to NOK ‐5.2 (‐4.9) million. *

> Cash balance was NOK 1.8 (8.9) million.*

> Birdstep signed a global contract with HP, a multinational information technology corpo‐

ration and OEM for its EasySmart solution.

* The company would have been cash positive were it not for the late settlement of invoices amounting to NOK 5.8 million (paid early October).

JANUARY – SEPTEMBER 2013

> Revenue was NOK 52.0 (30.7) million, representing an increase of 69.3% over the same

period last year.

> EBITDA ended at NOK ‐0.8 (‐19.9) million, representing a reduced loss of NOK 19.1 million over the same period last year.

> Continuing operating earnings per share amounted to NOK ‐ 0.08 (‐0.31).

> Total net cash flow amounted to NOK –15.2 (‐25.9) million. **

** The company´s net cash flow would have been NOK ‐9.4 million were it not for the late set‐tlement of invoices amounting to NOK 5.8 million (paid early October). SIGNIFICANT EVENT AFTER THE PERIOD

> On October 15th Birdstep completed a successful private placement amounting to NOK 20.0 million.

Birdstep Technology ASAInterim report

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I am delighted to inform you that Q3 sales slightly exceeded our goals and expectations, closing with a 88.9 % increase Yr./Yr.

The majority of our revenue growth this quarter has been driven by renewed demand from North

American mobile operators for our Smart Mobile Data offering. Also worth mentioning is the success of our Secure Mobility business in the UK market.

In North America mobile offload is expected to account for 66 % of total mobile traffic in 2017. As mobile operators continue to grow their adaption of Wi‐Fi strategies more exciting business opportu‐nities have opened up for Birdstep. While the business climate in Europe continues to be chal‐lenged we have several ongoing trials in Asia and Japan, which is becoming an increasingly important focus for our products. This market is expected to grow in outsized proportion to the rest of the world in terms of mobile data traffic, driven by the rapidly increasing penetration rates for bandwidth‐hungry devices like smartphones. Japan generates 16% of the world’s total mobile data traffic even though it has only 2% of the world’s internet con‐nections – statistics, which pose major challenges for the country’s mobile operators. According to the latest Cisco VNI Global Mobile Data Traffic Forecast Update, mobile data traffic in Japan will grow 14‐fold between 2012 and 2017, a compound annual growth rate of 71%.

Also China is preparing for the onslaught of mobile data traffic growth. According to Reuters the coun‐try plans to spend $326.7 billion on its ambitious plan to make broadband available to nearly the entire population by 2020.

Our Secure Mobility line of business is also showing international progress. In the quarter Birdstep closed its first license order with the UK Utility company Scottish Water. By simplifying access to corporate network and organisational systems, SafeMove will improve productivity for Scottish Water’s engineers and enable more reliable com‐munications in challenging environmental condi‐tions. Birdstep also further strengthened its posi‐tion in the UK healthcare market with a SafeMove license expansion order from The Rotherham NHS Foundation Trust.

In the last report I mentioned our interest in PC manufacturers’ plans for increasing their use of embedded cellular and Wi‐Fi technologies in their notebook, Convertible and Tablet products. On September 9th we announced a global contract with a multinational Information Technology cor‐poration and OEM for our EasySmart product fami‐ly. In October we revealed that the customer was Hewlett Packard. The collaboration with HP repre‐sents a major step forward for Birdstep, giving de‐vice manufacturers such as HP, the ability to significantly differentiate their products and ser‐

5

The CEO update


vices in a very tangible way. This solution enables device manufacturers to offer enhanced connectiv‐ity services, which address real customer frustra‐tion. Our go‐to‐market strategy is now being prov‐en in new markets such as Original Equipment Manufacturers (OEM's and vertical) which will be one of our new focus areas in 2014.

The combined result of Q3 sales and prudent cost management resulted in a Q3 negative EBITDA of NOK 1.9 million compared to negative EBITDA of NOK 7.7 million in Q3 2012.

In conclusion, we are satisfied with our strong Q3 results. At Birdstep we continue to believe that it's the quality of the online user experience that de‐termines the value of the mobile broadband ser‐vice provided. The nature of the strategic global deployment with HP achieves several goals for Birdstep; first, it further validates our value propo‐sition of delivering the exceptional user experi‐ence; second, we deliver value not only to smartphones, but also the fastest growing device segments such as tablets and convertibles; third, our go‐to‐market strategy is being proven in new markets such as OEM's and verticals such as enter‐prise; and fourth, we have proven we are a global company with a global product strategy. I look forward to reporting back to you next quar‐ter Lonnie Schilling CEO

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JULY Opportunities It goes without saying that professionals—in any industry—want to understand the market in which they sell, and the people who are buying their products or services. One of my goals during my first months in the company was to understand what drives our business. In this effort I have been travelling back and forth to US, Asia and Europe talking to customers, partners, analysts and of course our biggest assets; our employees around the world. Also this warm summer month I experi‐enced invaluable time in North America meeting with key customers, and equally important, new potential customers.

AUGUST Partners We are continually gaining traction across the EMEA region with our Secure Mobility solutions. But to gain and maintain a competitive edge we must constantly develop advantage through our Go‐To‐Market strategies. Part of the success with Secure Mobility has been the development of our channel strategy. Strong partners will enable us to beat our competition by actively pursuing the most cost effective and efficient access to customers. Together with my VP Sales for Secure Mobility, I spent a week in South East Asia meeting new po‐tential partners in order to develop this strategy further. We also attended the Third Annual Infor‐mation Security Summit together with our partner Haynik in Malaysia. After interactions and discus‐sions with the event host I was spontaneously asked to join a panel discussion, talking about big data analytics. This was very encouraging and it proves the interest for our solutions.

During the latter part of the month I returned to US for negotiations with our newest customer HP and to visit our US staff in the new Sprint support office in Kansas.

SEPTEMBER

Success For me long‐term customer relationships require time and attention. Negotiating win‐win solutions with customers will not only give us the best chance to succeed, it will also position us for future sales opportunities. September was all about in‐tense final negotiations with Hewlett Packard, both in Stockholm and in the US. This has been a very effective sales process that started with a meeting at Mobile World Congress in Barcelona early this year. After a few weeks we were part of a competi‐tive bidding process with Birdstep being one of several potential suppliers. And even though I was very proud to announce the deal on September 9th I am even more proud of my team who has been working tirelessly, enabling Birdstep to win this strategically important new customer.

Schilling´s Monthly

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HP deal opens up for new market opportuni‐ties for Smart Mobile Data solutions

This quarter Birdstep signed a global contract with HP, a multinational information technology corpo‐ration and OEM for its EasySmart solution. The HP DataPass service simplifies consumer connectivity by including mobile data for a chosen time on se‐lected HP devices. Birdstep is delivering a global solution enabling HP to offer enhanced connectivi‐ty services through a combination of EasyConnect & EasySmart.

The solution is initially available on three different devices in Sweden, Denmark and United Kingdom.

Strong Run‐rate Business with Sprint

The commercial rollout of mobile operator Sprint’s data offload project with Birdstep’s EasySmart so‐lution resulted in a high activation rate with 2.37 Million new EasySmart clients in Q3. Sprint project Phase 2.5 was finalized in the quarter and is now being deployed on new devices for all vendors.

This version of EasySmart includes a whole set of new features and functions, which will continue to improve the user experience and increase savings for Sprint.

New Business on the Verge

Birdstep started a commercial roaming initiative trial with a large North American operator. If suc‐cessful, the solution from Birdstep will save signifi‐cant roaming fees for the operator.

The company has started to gain traction in Japan for its EasySmart solutions. In one of several on‐going trials, Birdstep`s client products offloaded as much as 87% of the traffic to Wi‐Fi.

Business Focus

8


Secure Mobility strengthens its position in the UK market while increasing its visibility in the EMEA region

This quarter Birdstep closed its first license order with the UK based Utility company Scottish Water. By simplifying access to corporate network and organisational systems, SafeMove will improve productivity for Scottish Water’s field work engi‐neers and enable more reliable communications in challenging environmental conditions.

Birdstep further strengthened its position in the UK healthcare market with a SafeMove license expan‐sion order from The Rotherham NHS Foundation Trust. Birdstep’s SafeMove Mobile VPN has provid‐ed care workers with access to patient records and clinical data seamlessly from the field over multiple networks since 2012. The new deal will expand use of the Rotherham Trust’s SafeMove Mobile VPN use in home care services by allowing care workers full access to the same applications and systems they would have on a desktop in the hospital.

The company also won strategically important deals and trials in the UK, the US and EMEA (Eu‐rope, Middle East & Africa) region:

> SafeMove Environment update deals with 2 UK based utility companies

> Development project started with a company in the defense industry

> SafeMove managed service deal with a Finnish government office was completed

> Several smaller SafeMove Mobile VPN 7 up‐grade projects were closed in Finland

> SafeMove Crypto IP GW license deal with a Finnish OEM partner

> SafeMove Mobile VPN and SafeMove Mobile Router trials for government, health care and finance started together with our partners Haynik in Malaysia and Four Systems in Saudi Arabia

The company also signed two new reseller agree‐ments in Bahrain and Vietnam.

9


Milestones & Significant Events > Birdstep reported a sales growth of 88.9% Yr./Yr.

> Birdstep signed a global contract with HP, a multinational information technology corporation and OEM for its EasySmart solution.

> Birdstep further strengthened its position in the UK healthcare market with a SafeMove license expan‐sion order from The Rotherham NHS Foundation Trust

> Birdstep closed its first license order with the UK Utility company Scottish Water.

> Birdstep attended the third annual Information Security Summit together with our partner Haynik in Malaysia.

10


Birdstep is continuing to pursue its focus on the four key areas of rapidly expanding mobile data services in the cellular market. These remain: intel‐ligent data between cellular and Wi‐Fi, intelligent marketing capabilities, secure mobile communica‐tions and smart data analytics. Through these of‐ferings, Birdstep adds meaning to raw data and will enable service providers to maximise data‐related revenue opportunities over the coming years while providing tools to aggressively reduce infrastruc‐ture costs. This quarter Birdstep yet again proved its go‐to‐market strategy in new markets such as OEM's (Original Equipment Manufacturer) and verticals such as “enterprise” when announcing the major OEM deal where its software is preinstalled on HP consumer devices.

The solution makes mobile data available to end users in all situations. The service is initiated by a quick registration and will then provide direct ac‐cess to Mobile Data across networks in all launched countries. The service also provides a unified means of access to account control, support and data top‐up functionality. It also has the capability to understand user movement patterns in order to manage connectivity at and away from home and office Wi‐Fi. This allows the user to reduce power consumption and data usage by efficiently power‐ing on and off the Wi‐Fi radio when the person is in the vicinity of known networks. For OEM’s this is a tremendous opportunity to remove the expense and complexity of connectivity regardless of the underlying network technology. According to Tech‐Thoughts the Android Tablet

Market Outlook

11


market penetration is 60% and projected to grow at 67% in 2014, reinforcing Birdstep’s decision to broaden our market from smartphones to Android and Windows tablets, notebooks and convertible devices. For Birdstep the agreement with HP fur‐ther validates our value proposition of delivering an exceptional user experience. Looking ahead, as Wi‐Fi usage continues to prolif‐erate dramatically, mobile operators want to see Wi‐Fi service management fully integrated into OEM devices so they can monetize it. This in turn will compel device chip manufacturers to look at software alternatives to provide themselves eco‐nomic or competitive advantage beyond what Moore’s Law allows. We witness this today when Intel purchased and integrated McAffee security software or Qualcomm partnering and integrating network software from Cisco. Here too, Birdstep anticipates opportunities to grow and expand into new markets. The demand for our Smart Mobile Data solutions around the world, especially in North America and Asia Pacific, is still growing. By providing visibility across the Wi‐Fi and cellular infrastructures, our Smart Mobile Data products are generating equal interest in Europe, where many operators are more concerned with ensuring an optimal customer experience once data has been offloaded. Europe’s potential is unchanged, but the economic climate has lengthened sales cycles. To maximize our business opportunities, Birdstep has trials and active negotiations under way with operators in Asia Pacific and South East Asia. The use of mobile data in the work force and the trend toward Wi‐Fi offload continues to grow. To‐gether, these increase the importance of strong end‐to‐end security. The continued popularity of Bring Your Own Device (BYOD) for employees is still generating great interest from both operators and enterprise customers for our Secure Mobility prod‐ucts. Our product portfolio in this space secures customer devices and protects user data from enti‐ties and organizations wishing to compromise mo‐

bile communications. We have expanded our se‐cure mobility portfolio to more platforms with the SafeMove Mobile Router Toolkit and the SafeMove Toolkit for Android. Our secure mobility solutions have gained particularly strong traction across the EMEA region with the expansion of the reseller network, witnessed by further new deals in Q3, for example Scottish Water or The Rotherham NHS Foundation Trust.

12


Third quarter

Third quarter revenue was NOK 16.5 (8.7) million,

which represents an increase in revenue of 88.9%

over the same quarter last year. The increase in

revenue compared to the same quarter last year is

due to growing usage of our product Easy Smart,

specifically in North America.

Salaries and wages were NOK 11.8 (10.1) million.

The increase in salaries and wages is due to a de‐

crease in capitalized R&D.

The number of employees ending as at 30.09.2013

was 62 (62).

Other operating expenses for the quarter were

NOK 5.2 (5.3) million.

The quarterly Other financial items, net of NOK ‐0.1

million consists of currency gains from re‐

evaluating internal loans within the group. Com‐

pared to the same quarter last year Other financial

items, net were NOK 4.1 million which consisted of

the earn‐out provision from the Orbyte transac‐

tion.

As a result of the above factors, Income (Loss) from

continuing operations NOK ‐3.9 (‐4.9) million was

recorded in the quarter.

EBITDA ended at NOK ‐1.9 (‐7.7) million which rep‐

resents a decreased in losses of NOK 5.8 million

compared with the same period last year.

Nine Month

Revenue for the first nine months was NOK 52.0

(30.7) million and represents an increase in reve‐

nue of 69.3% over the same period last year. The

increasing revenue trend for Easy Smart started to

take effect in Q4 as the newer product line was

rolled out in the market.

Salaries and wages were NOK 33.2 (29.5) million.

Other operating expenses were NOK 16.7 (17.7)

million.

As a result of the above factors, a loss from contin‐

uing operations NOK ‐6.9 (‐21.9) million was rec‐

orded for the period.

EBITDA ended at NOK ‐0.8 (‐19.9) million which

represents a decreased loss of NOK 19.1 million

compared to the same period last year.

Result of operations

13


Third quarter The cash balance at the end of the quarter was

NOK 1.8 Million, representing a decrease of NOK

5.1 million during the quarter. The company would

have been cash positive were it not for the late

settlement of invoices amounting to NOK 5.8 mil‐

lion (paid early October). Hence the accounts re‐

ceivable at the end of the quarter was NOK 19.3

million. Compared with the same quarter last year

the cash balance decreased with NOK 4.9 million.

Nine Month Cash flow for the first nine months was negative

and the net cash balance decreased with NOK 15.2

million. Compared to the same period last year, the

cash balance decreased with NOK 25.9 million.

Cash flow

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Financial statements

Condensed Consolidated Statements of Operations

(In thousands of NOK, except share and per share data)

30.09.2013 30.09.2012 30.09.2013 30.09.2012 2012

OPERATING REVENUES 16 469 8 717 52 036 30 728 44 131

Cost of revenues (1 397) (1 038) (2 890) (3 524) (4 603)

OPERATING EXPENSES

Salaries and wages (11 778) (10 075) (33 238) (29 453) (40 829)

Share‐based compensation ‐ (0) ‐ (16) (16)

Other operating expenses (5 180) (5 314) (16 726) (17 671) (23 687)

TOTAL OPERATING EXPENSES (16 958) (15 389) (49 964) (47 140) (64 532)

EBITDA (1 886) (7 710) (818) (19 936) (25 004)

Depreciation and amortization (2 141) (1 392) (6 161) (6 106) (9 821)

EBIT (4 027) (9 102) (6 980) (26 042) (34 825)

OTHER INCOME (EXPENSE)

Interest income, net 79 79 140 90 (52)

Other financial items, net 48 4 126 (99) 4 064 (307)

OTHER INCOME, NET 127 4 205 41 4 154 (359)

INCOME(LOSS) FROM CONTINUING OPERATIONS

OPERATIONS BEFORE TAXES (3 900) (4 897) (6 939) (21 888) (35 184)

Income taxes ‐ ‐ ‐ ‐ ‐

INCOME(LOSS) FROM CONTINUING OPERATIONS (3 900) (4 897) (6 939) (21 888) (35 184)

Earnings and diluted earnings per share (NOK)

Continuing operations (0,04) (0,07) (0,08) (0,31) (0,38)

Total (0,04) (0,07) (0,08) (0,31) (0,38)

For the threemonths ended

For the full year

For the nine months ended

15


Full yearended

30.09.2013 31.09.2012 30.09.2013 30.09.2012 2012

Net income (loss) for the period (3 900) (4 897) (6 939) (21 888) (35 184)

OTHER COMPREHENSIVE INCOME

Currency translation effect (1 100) (1 398) 122 (2 289) 87

TOTAL COMPREHENSIVE INCOME (5 000) (6 295) (6 817) (24 177) (35 097)

Attributable to:

Equity holder of the parent company (5 000) (6 295) (6 817) (24 177) (35 097)

Minority interests ‐ ‐ ‐ ‐ ‐

TOTAL COMPREHENSIVE INCOME (5 000) (6 295) (6 817) (24 177) (35 097)



Condensed Consolidation Statements of Comprehensive Income (In thousands of NOK, except share and per share date)

16


Condensed Consolidation Balance Sheets (In thousands of NOK, except share and per share date)

30.09.2013 30.09.2012 2012ASSETSNon‐current assets:Intangible assets 48 930 58 925 50 734 Property and equipment 118 120 62 Other non‐current assets ‐ ‐ ‐ Total non‐current assets 49 048 59 045 50 796

Current assets:Accounts receivable 19 284 7 870 11 840 Other current assets 3 206 1 228 1 275 Assets held for sale ‐ ‐ ‐ Restricted cash ‐ ‐ ‐ Cash & cash equivalents 1 766 8 918 16 921 Total current assets 24 256 18 016 30 036

Total assets 73 304 77 960 80 832

LiabilitiesShareholders’ equity:Share capital 9 199 7 139 9 198 Share premium fund 17 159 149 17 165 Other equity, including translation reserves 25 440 49 389 32 259 Total shareholders’ equity 51 797 56 677 58 622

Non‐current liabilities: Accrued pension costs 12 200 158 Deferred tax l iabil ities ‐ ‐ ‐ Other l iabil ities 3 137 3 214 3 229 Total non‐current liabilities 3 149 3 415 3 387

Current liabilities:Accounts payable 2 579 2 974 4 138 Deferred revenue 3 498 4 452 2 248 Liabil ities held for sale ‐ ‐ ‐ Accrued expenses and other l iabil ities 12 280 10 443 12 437 Total current liabilities 18 357 17 868 18 823

Total Liabilities and Shareholders’ Equity 73 304 77 960 80 832

As of

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Condensed Consolidated Statements of Cash Flows (In thousands of NOK)

30.09.2013 30.09.2012 30.09.2013 30.09.2012 2012

Cash flow from operating activities

Net income (loss) (3 900) (4 897) (6 939) (21 888) (35 184)

Depreciation and amortization 2 141 1 392 6 161 6 106 9 821

Write down and impairment of intangible assets ‐ ‐ ‐ ‐ ‐

Share based compensation ‐ ‐ ‐ 16 16

Gain/loss on disposal of discountinued operations ‐ ‐ ‐ ‐ ‐

Change in working capital (2 172) 41 (10 078) (2 121) (5 199)

Net cash from operating activities (3 931) (3 464) (10 855) (17 887) (30 546)

Cash flows from investing activities

Purchase of fixed and intangible assets (1 208) (1 061) (4 557) (7 340) (9 345)

Effect of foreigin exchange rate changes ‐ ‐ ‐ ‐ ‐

Sale of Service Factory ‐ net proceedes (costs) ‐ ‐ ‐ ‐ ‐

Change in restricted cash balances ‐ ‐ ‐ ‐ 19 620

Change in loan balance with affil iated company ‐ ‐ ‐ ‐ ‐

Net cash provided by (used in) investing activities (1 208) (1 061) (4 557) (7 340) 10 275

Effect of foreign exchange rate changes (51) (343) 257 (638) 2 409

Net cash flow (5 190) (4 868) (15 155) (25 864) (17 861)

Cash at beginning of period 6 956 13 786 16 921 73 122 34 782

Cash at end of period 1 766 8 918 1 766 47 258 16 921

For the ninemonths ended

For the full year


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Condensed Consolidated Statements of Changes in Shareholders’ Equity (In thousands of NOK, except share and per share date)

Share

capital

Share

premium

Other paid

equity

Other

equity

Translation

reserves

Total

equity

Equity as at 31 December 2012 9 199 17 165 61 232 (40 304) 11 330 58 621

Net income (loss) ‐ ‐ ‐ (6 939) ‐ (6 939)

Other comprehensive income for the period

Foreign currency exchange ‐ ‐ ‐ ‐ 122 122

Total comprehensive income ‐ ‐ ‐ (6 939) 122 (6 818)

Transactions with shareholders:

Issue of ordinary shares ‐ ‐ ‐ ‐ ‐ ‐ Sale of treasury shares ‐ ‐ ‐ ‐ ‐ ‐

Recognition of share‐based payments ‐ (6) ‐ ‐ ‐ (6)

Total transactions with shareholders ‐ (6) ‐ ‐ ‐ (6)

Equity as at 30 June 2013 9 199 17 159 61 232 (47 243) 11 452 51 797

19


Accounting Policies

The accompanying consolidated financial state‐

ments are prepared under International Financial

Reporting Standards (IFRS). Our fiscal year runs

from January 1 to December 31.

The accompanying condensed consolidated state‐

ments of operations and cash flows cover the nine

first months of 2013, and the related information

on Birdstep included in these notes to the financial

statements is unaudited. In the opinion of man‐

agement, such interim statements include all ad‐

justments, which consist only of the normally re‐

curring adjustments necessary for a fair presenta‐

tion of the consolidated results of operations, fi‐

nancial position and cash flows for each period

presented. The interim consolidated results are not

necessarily indicative of results for the full year.

The same accounting policies and methods of

computation are followed in the interim financial

statements as those of the most recent annual

financial statements.

These interim financial statements are presented in

Norwegian crowns (NOK). The functional currency

of Birdstep’s foreign operations is the currency of

the country in which the operations are conducted.

The accounts of Birdstep are translated into the

reporting currency, NOK, using exchange rates in

effect at period‐end for assets and liabilities, and at

average exchange rates during the period for the

results of operations.

EBITDA is equivalent to operating income (loss)

excluding both discontinued operations and non‐

cash charges, such as depreciation and amortiza‐

tion.

Income per share is calculated by dividing net in‐

come available to common shareholders for the

period by the weighted average number of com‐

mon shares outstanding during the period.

As of September 30, 2013, the Company has

91.984.627 shares issued and 91.963.572 shares

outstanding, the difference of 21.055 representing

treasury shares.

Notes

20


*InQ42012awritedownofintangibleassetsofNOK6.9millionwasmadeinSecureMobility

*

Risks

This report contains statements regarding the fu‐

ture in connection with the company’s growth ex‐

pectations, general and specific market outlook

and objectives. All statements about the future are

subject to inherent risks and uncertainties, and

many factors can lead to actual profits and devel‐

opments deviating substantially from that which

has been expressed or implied in such statements.

Birdstep Technology is exposed to various forms of

market, operational and financial risk.

Financial instruments that potentially subject Bird‐

step to concentrations of credit risk consist pri‐

marily of cash and accounts receivable. Birdstep

performs ongoing evaluations of customers’ finan‐

cial condition to determine if any reserve for po‐

tential uncollectible amounts is needed. As of Sep‐

tember 30, 2013, no potential uncollectible

amounts had been made.

The company’s various risks have been described in

the Annual Report/ Prospectus in further detail and

no other risks has been identified.

Segment Reporting The Company is divided into two separate operating segments (Smart Mobile Data and Secure Mobility).

For the full Year

MNOK 30.09.2013 30.09.2012 30.09.2013 30.09.2012 2012

Smart Mobile Data

Operating Revenues 11 978 5 067 38 967 20 023 28 413

EBIT (3 318) (6 540) (4 100) (18 713) (25 625)

Secure Mobility

Operating Revenues 4 491 3 650 13 069 10 705 15 718

EBIT (708) (2 561) (2 879) (7 328) (16 518)

For the three months ended


21


Preliminary financial calendar, with reserva‐tions for changes: 13‐ 14 November 2013 Investor Relations presentations. To be held at Hotel Continental in Oslo. For more information and reservation please contact: Marie‐Louise Nilsson‐Kanon [email protected] +46 70 232 5998 Birdstep Technology ASA invites shareholders, in‐vestors, media and other stakeholders to a phone conference following the announcement of the quarterly earnings reports. Time and call‐in details or place of the events above will be communicated at a later stage via OSE, Oslo Stock Exchange and www.birdstep.com

Financial Calendar 2013

22

Documents

Q3 Report ver4 - Techstep ASA · 2019-02-14 · the latest Cisco VNI Global Mobile Data Traffic Forecast Update, mobile data traffic in Japan will grow 14‐fold between 2012 and