LEUVEN, BELGIUM--(Marketwire - Mar 7, 2013) - Option N.V. (EURONEXT Brussels: OPTI; OTC:
OPNVY), a global leader in wireless connectivity, security and experience,
announced its results for the full fiscal year and second half year ended
December 31, 2012. The financial information reported in this release is
presented in Euros and has been prepared in accordance with the recognition
measurement criteria of IFRS as adopted by the European Union. The
policies and methods of computation followed in the attached financial
statements are the same as those followed in the most recent annual
After finishing an industrial transformation, Option concentrated its
the second half year of 2012 on testing, fine-tuning and go-to-market
for its new line of products and services, including e.g. WiFi in the car
XYFI. The development of the products XYFI and VIU² have resulted in
of some valuable new assets including a service management platform, a
device user interface with streaming capabilities and routing software.
assets have allowed the Company to further improve the features of its
products and will continue to do so for new product lines.
The most important new product-line that the Company launched in the second
of 2012 was CloudGate, a secure, reliable and affordable 3G M2M gateway
brings new levels of flexibility and ease of deployment for M2M solutions.
after the launch in October 2012, the Company announced partnerships
distributors, leading US System Integrators and developers, such as
GetWireless, ClearConnex, Exosite, and Hilton Development Group. The fact
these and other partners signed up so quickly demonstrates the pent up
for a configurable, reliable and affordable M2M gateway. The Company
to work on further developing an ecosystem to secure a good market
presence in the different M2M segments. The first CloudGate products
shipped in Q4, 2012 and have successfully been deployed in a number of
The Company also continues to focus on cost reductions. In line
restructuring exercise at Option Wireless Ltd. (Ireland) and Option
(France) has started. It is anticipated that these exercises will
positive impact on the cost base in the second half of 2013. The
exercise of Option Wireless Ltd. leads to a reduction of the net equity
of Option NV. As the net equity of Option NV falls below the threshold
half of its share capital, the Company is required by law and in accordance
article 633 of the Belgian Code of Companies, to organize a Special
Meeting of Shareholders to vote on the continuity of the company.
Option confirms its intention to raise the amount of minimum 9 million
the issue of a convertible bond. As announced in January the Board expects
this transaction will be concluded before the end of the first quarter of
In order to bridge potential cash requirements until the completion
transaction, the Company came to an agreement with Mondo NV, controlled
Callewaert, on a mid term loan facility up to a maximum amount of 5 million
Financial Highlights of the second half year 2012
* Total revenues for the second half year of 2012 were EUR 17.6 million
compared with EUR 24.1 million realized in the second half year of
Product related revenues decreased from EUR 7.7 million in the second
of 2011 till EUR 6.8 million in the same period of 2012, while software
license revenues decreased from EUR 16.4 million in the second half of
to EUR 10,8 million in the same period of 2012. EUR 10.6 million of
amount came out of licenses. The decrease is explained by the fact that
license agreement with Huawei has ceased in the course of Q4, 2012.
* Gross margin for the second half year 2012 was 47.3% on total revenues,
compared with a gross margin of 69.1% for the comparable period in
gross margin for the second half year 2012 was negatively affected by
important license revenues and by an inventory write off of EUR 3.7
The Company has assessed its inventory and has revalued some of its
leading to an extraordinary write off.
* Compared to the second half year 2011, total operating expenses in the
second half of 2012 decreased with EUR 8.6 million from EUR 16.8
EUR 8.2 million as a result of the continuing efforts of an effective
control within the Group, but also impacted by a negative impairment on
capitalized R&D for an amount of EUR 3.6 million and a positive effect
lowering the IPR accrual for an amount of EUR 6.7 million. The company
assessed its capitalized R&D expenses and has decided to concentrate
two platforms (3G and LTE). The company took an extraordinary write off
EUR 3.6 million on other projects. The company also reassessed its
outstanding payables regarding IPR obligations and, taking into account
market conditions and external advice, the Board of Directors decided
decrease the outstanding payables with an amount of EUR 6.7 million.
* The second half year 2012 EBIT amounted to EUR 0.1 million compared
-0.1 million during the corresponding period in 2011.
* Result before taxes amounted to EUR 0.02 million in the second half of
compared with EUR 0.06 million during the corresponding period in 2011.
Financial Highlights of the full fiscal year result 2012
* Total revenues for the full year 2012 were EUR 40.8 million, a decrease
18.2% compared with EUR 49.9 million revenues realized during the
period in 2011. Software and license revenues decreased from EUR 30.7
million in 2011 to EUR 28.2 million in 2012, explained by the fact that
Huawei license revenue stopped during Q4. EUR 27.0 million of that
came out of licenses. Product related revenues decreased from EUR 19.2
million in 2011 to EUR 12.6 million in 2012, due to the phasing out of
old products and the fact that the sales of new products did not
* Gross margin for the full year was EUR 25.9 million compared with EUR
million in 2011. Gross margin year to date in 2012 was 63.4%, compared
a gross margin of 61.6% in 2011. Also in 2012 the gross margin was
positively impacted by license revenues, delivering higher margins
to revenues generated by products. During 2012 the company booked an
inventory write off for an amount of EUR 4.3 million.
* Compared to the full year 2011, total operating expenses for 2012
with EUR 12.0 million from EUR 34.3 million to EUR 22.3 million. The
expenses are the result of the downsizing of the Company, combined with
lower sales related costs as well as effective cost control within the
Group. As explained above in the financial highlights of the second
year the operating expenses were negatively impacted by impairment on
capitalized R&D for an amount of EUR 3.7 million and a positive impact
lowering the IPR accrual for an amount of EUR 7.4 million.
* EBIT was EUR 3.6 million or 8.8% on total revenues during the full year
2012, compared with EBIT of EUR -3.6 million or -7.2% on total revenues
* The 2012 net result was EUR 3.6 million compared with a net result of
-2.9 million in 2011, or EUR 0.044 per basic share in 2012 compared
-0,035 per basic share in 2011.
* The Group's balance sheet includes EUR 3.1 million in cash. The trade
other receivable position decreased from EUR 3.9 million to EUR 3.2
and the inventory levels from EUR 6.8 million to EUR 4.0 million by the
of 2012. The intangible assets impacted by a negative impairment of EUR
million decreased from EUR 8.8 million in 2011 to EUR 4.9 million in
The trade and other payable position decreased to EUR 11.9 million from
18.1 million impacted by lowering our IPR accrual. The Group didn't
any licenses from Huawei in 2012 compared to the EUR 33 million in Q1
as prepaid licenses. As result, there is a decrease of deferred revenue
EUR 27.1 million to EUR 0.1 million. No deferred tax asset was
For the entire press release, including tables, click on the link below.
Option is a global leader in wireless connectivity, security and
Option enhances the performance, functionality and usability of
communications through a portfolio of 3G, 4G HSPA/LTE and WLAN
solutions. The company works with mobile operators, OEMs, retailers
enterprise customers to create compelling products that enable new
secure services. Option is headquartered in Belgium, with further an ISO
production engineering and logistics facility in Ireland. Option
offices in Europe, the US, Greater China, Japan and Australia.
Copyright ©2013 OPTION. All rights reserved. All product and
herein may be (registered) trademarks or trade names.
Option reports second half year and full year 2012 results:
Option rapporteert resultaten tweede halfjaar en volledig jaar 2012:
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Source: Option via Thomson Reuters ONE