R&D expenses for the quarter were €44 million, a 19% increase year on year (Q3 2010: €36 million). The year on year increase is mainly the result of higher project related expenditure in our Automotive business. Sequentially R&D expenses increased by 7% (Q2 2011: €41 million).
Marketing expenses were €17 million and flat year on year (Q3 2010: €17 million). Sequentially marketing expenses saw a 43% decrease, owing to seasonality (Q2 2011: €30 million).
Financial results
The total interest charge for the quarter was €5.9 million (Q3 2010: €9.5 million, Q2 2011: €6.1 million). The interest expense on the loan facilities for the quarter amounted to €4.5 million. The amortisation of the transaction costs related to the facility amounted to €1.9 million. The interest expense was partially offset by interest income of €0.5 million on cash balances.
The other financial result for the quarter of €1.5 million consisted of a foreign exchange gain mainly attributed to depreciation of the euro against the US dollar during the quarter.
Debt financing
On 30 September 2011, the carrying value of our borrowings amounted to €492 million, a decrease of €98 million compared to the previous quarter (Q2 2011: €591 million) which results from an early repayment of our debt of €100 million partly offset by the amortised transaction costs which are added back to the borrowings over the life time of the borrowings. Excluding transaction costs, which are netted against the borrowings, our outstanding borrowings amounted to €498 million (Q2 2011: €598 million; Q3 2010: €683).
Our net debt as of 30 September 2011 was €316 million compared to €366 million at the end of the previous quarter. Net debt is the sum of the borrowings (€498 million), minus cash and cash equivalents at the end of the period (€182 million) plus our financial lease commitments (€0.6 million).
Balance sheet
At the end of Q3 2011, accounts receivable amounted to €198 million (Q3 2010: €236 million; Q2 2011: €197 million). Lower revenue explains the decrease of €38 million year on year. The inventory level was €73 million, a decrease of €6.7 million year on year and a decrease of €28 million compared to the previous quarter. Cash and cash equivalents at the end of the quarter were €182 million.
Cash flow
During the quarter, we recorded a cash inflow from operations of €75 million which was mainly driven by EBITDA of €68 million and a decrease of working capital of €7.8 million.
The cash flow used in investing activities during the quarter increased by €4.3 million compared to last year to €20 million (Q3 2010: €16 million; Q2 2011 €25 million).
|
Consolidated income statements |
|||||||||||||||
| (in € thousands) | Q3’11 | Q3’10 |
YTD’11 |
YTD’10 |
|||||||||||
| Revenue | 336,445 | 374,919 | 915,815 | 1,005,249 | |||||||||||
| Cost of sales | 163,625 | 196,585 | 442,119 | 497,767 | |||||||||||
| Gross result | 172,820 | 178,334 | 473,696 | 507,482 | |||||||||||
| Research and development expenses | 43,573 | 36,477 | 126,077 | 117,746 | |||||||||||
| Amortisation of technology & databases | 19,787 | 18,374 | 57,612 | 54,921 | |||||||||||
| Impairment charge | 0 | 0 | 511,936 | 0 | |||||||||||
| Marketing expenses | 17,159 | 17,270 | 57,555 | 56,501 | |||||||||||
| Selling, general and administrative expenses | 49,241 | 46,709 | 148,406 | 146,163 | |||||||||||
| Stock compensation expense | 2,324 | 4,550 | 7,196 | 10,555 | |||||||||||
| Total operating expenses | 132,084 | 123,380 | 908,782 | 385,886 | |||||||||||
| Operating result | 40,736 | 54,954 | -435,086 | 121,596 | |||||||||||
| Interest result | -5,943 | -9,536 | -18,036 | -26,990 | |||||||||||
| Other finance result | 1,529 | -20,307 | 5,379 | -21,090 | |||||||||||
| Result associates | -65 | -511 | -337 | -1,977 | |||||||||||
| Result before tax | 36,257 | 24,600 | -448,080 | 71,539 | |||||||||||
| Income tax | -8,130 | -5,506 | -2,664 | -16,049 | |||||||||||
| Net result | 28,127 | 19,094 | -450,744 | 55,490 | |||||||||||
| Minority interests | -811 | -167 | -1,013 | -573 | |||||||||||
| Net result attributed to the group | 28,938 | 19,261 | -449,731 | 56,063 | |||||||||||
| Basic number of shares (in thousands) | 221,895 | 221,718 | 221,869 | 221,718 | |||||||||||
| Diluted number of shares (in thousands) | 221,940 | 221,718 | 221,886 | 221,752 | |||||||||||
| EPS, € basic | 0.13 | 0.09 | -2.03 | 0.25 | |||||||||||
| EPS, € diluted | 0.13 | 0.09 | -2.03 | 0.25 | |||||||||||
|
Consolidated balance sheet |
||||||
| (in € thousands) | 30 Sep 2011 | 31 Dec 2010 | ||||
| Goodwill | 381,569 | 854,713 | ||||
| Other intangible assets | 895,530 | 946,263 | ||||
| Property, plant and equipment | 32,887 | 38,977 | ||||
| Deferred tax assets | 18,978 | 22,265 | ||||
| Investments | 4,731 | 7,720 | ||||
| Total non-current assets | 1,333,695 | 1,869,938 | ||||
| Inventories | 73,020 | 93,822 | ||||
| Trade receivables | 197,848 | 305,821 | ||||
| Other receivables and prepayments | 69,348 | 41,853 | ||||
| Other financial assets | 5,376 | 5,724 | ||||
| Cash and cash equivalents | 182,313 | 305,600 | ||||
| Total current assets | 527,905 | 752,820 | ||||
| Total assets | 1,861,600 | 2,622,758 | ||||
| Share capital | 44,379 | 44,362 | ||||
| Share Premium | 975,260 | 974,554 | ||||
| Other reserves | 63,041 | 45,757 | ||||
| Stock compensation reserve | 78,592 | 71,662 | ||||
| Accumulated (deficit) | -471,090 | -222 | ||||
| Minority interests | 4,022 | 5,416 | ||||
| Total equity | 694,204 | 1,141,529 | ||||
| Borrowings | 386,948 | 384,011 | ||||
| Provisions | 46,608 | 51,051 | ||||
| Long-term liability | 2,214 | 926 | ||||
| Deferred tax liability | 188,202 | 211,014 | ||||
| Total non-current liabilities | 623,972 | 647,002 | ||||
| Trade payables | 105,207 | 218,419 | ||||
| Borrowings | 105,522 | 203,586 | ||||
| Tax and social security | 39,734 | 35,443 | ||||
| Provisions | 56,532 | 58,237 | ||||
| Other liabilities and accruals | 236,429 | 318,542 | ||||
| Total current liabilities | 543,424 | 834,227 | ||||
| Total equity and liabilities | 1,861,600 | 2,622,758 | ||||
|
Consolidated statements of cash flows |
|||||||||||||||
|
(in € thousands) |
Q3’11 |
Q3’10 |
YTD’11 | YTD’10 | |||||||||||
| Operating result | 40,736 | 54,954 | -435,086 | 121,596 | |||||||||||
| Financial (losses) | -2,335 | -1,108 | -3,231 | -7,395 | |||||||||||
| Depreciation of PPE | 2,939 | 3,379 | 10,829 | 11,467 | |||||||||||
| Amortisation of intangible assets | 24,745 | 22,641 | 71,270 | 67,129 | |||||||||||
| Impairment charge | 0 | 0 | 511,936 | 0 | |||||||||||
| Change to provisions | -896 | -4,210 | -3,579 | -6,678 | |||||||||||
| Change to stock compensation reserve | 2,124 | 3,810 | 6,930 | 10,809 | |||||||||||
| Changes in working capital: | |||||||||||||||
| Change in inventories | 26,820 | -16,926 | 18,232 | -13,022 | |||||||||||
| Change in receivables and prepayments | -17,441 | 7,650 | 82,200 | 37,521 | |||||||||||
| Change in current liabilities | -1,621 | -6,928 | -202,026 | -98,986 | |||||||||||
| Cash generated from operations | 75,071 | 63,262 | 57,475 | 122,441 | |||||||||||
| Interest received | 450 | 252 | 1,336 | 699 | |||||||||||
| Interest paid | -4,516 | -8,290 | -14,462 | -19,464 | |||||||||||
| Corporate income taxes paid | -1,265 | -12,155 | -4,337 | -34,638 | |||||||||||
| Net cash flow from operating activities | 69,740 | 43,069 | 40,012 | 69,038 | |||||||||||
| Investments in intangible assets | -15,490 | -12,211 | -48,407 | -32,954 | |||||||||||
| Investments in property, plant and equipment | -4,334 | -3,526 | -13,130 | -9,711 | |||||||||||
| Investments in financial fixed assets | -239 | 0 | -239 | 0 | |||||||||||
| Total cash flow used in investing activities | -20,063 | -15,737 | -61,776 | -42,665 | |||||||||||
| Repayments on borrowings | -100,000 | -125,000 | -100,000 | -125,000 | |||||||||||
| Proceeds on issue of ordinary shares | 0 | 0 | 724 | 0 | |||||||||||
| Total cash flow from financing activities | -100,000 | -125,000 | -99,276 | -125,000 | |||||||||||
| Net decrease in cash and cash equivalents | -50,323 | -97,668 | -121,040 | -98,627 | |||||||||||
| Cash and cash equivalents at beginning of period | 232,235 | 366,883 | 305,600 | 368,403 | |||||||||||
| Exchange rate effect on cash balances held in foreign currencies | 401 | -1,600 | -2,247 | -2,161 | |||||||||||
| Cash and cash equivalents at end of period | 182,313 | 267,615 | 182,313 | 267,615 | |||||||||||
