Helsinki, Finland -
February 13, 2003
Financial Statements Bulletin January 1-December 31, 2002
- Reported net sales fell by 15.4 percent, to EUR 16.8 million (EUR
19.9 million in 2001)
- Operating loss amounted to EUR -14.1 million (a loss of EUR -6.7
million)
- Operating loss includes non-recurring expenses of EUR 5.1 million
- During the fourth quarter, the company concluded 20 license and
maintenance agreements worth more than EUR 50,000. Fourth-quarter
net sales improved by 13.8 percent compared to the previous quarter
- After the end of its fiscal year, SSH announced that it would
continue to make its operations more effective by concentrating the
SSH Sentinel product development to Helsinki
KEY FIGURES
Q4/02 Q4/01 2002 2001
Net sales, EUR million 4.4 4.9 16.8 19.9
Net sales, growth % -9.3 -8.1 -15.4 27.6
Operating loss,
EUR million -2.2 -2.3 -14.1* -6.7
% of net sales -48.8 -47.5 -83.7 -33.8
Operating loss, growth % 7.7 -276.5 -109.3 -302.4
Profit before extraordinary
items and taxes, EUR million -1.7 -1.3 -13.6 -4.1
% of net sales -38.2 -26.7 -80.6 -20.8
Personnel, period-end 147 181 147 181
Earnings per share, EUR -0.49 -0.15
* = Operating loss includes a total of EUR 5.1 million of non-
recurring expenses, which are specified in more detail in the Results
and Expenses section.
NET SALES
SSHs year-on-year consolidated net sales declined by 15.4 percent, to
EUR 16.8 million (EUR 19.9 million in 2001). The underlying reason for
the fall being customers persistent wariness of investment decisions.
Parent company net sales decreased by 24.4 percent, to EUR 11.1
million (EUR 14.6 million).
The year 2002 was characterized by the difficulty to predict the
development of SSH's revenues and net sales. The uncertain mood in the
US and European information technology markets persisted, leading
customers to put off their investment decisions in an increasingly
uncertain economic environment.
First quarter consolidated net sales in 2002 fell by 31.3 percent on a
year earlier (EUR 6.4 million), to EUR 4.4 million. Despite the marked
deterioration, net sales were still as expected and in line with the
Groups forecasts for the year. Second-quarter net sales did not,
however, develop as planned and showed a lower figure than in the
previous quarter, amounting to EUR 4.2 million (EUR 4.1 million).
Third-quarter net sales were particularly affected by the sudden
downturn in investment, which was directly reflected in SSHs sales.
SSHs consolidated net sales decreased to EUR 3.9 million (EUR 4.5
million). Fourth-quarter net sales increased by 13.8 percent on the
previous quarter, to EUR 4.4 million (EUR 4.9 million). In particular,
sales of the SSH Secure Shell product achieved the targets set for the
fourth quarter.
RESULTS AND EXPENSES
SSHs consolidated operating loss for the fiscal year reached EUR -
14.1 million (a loss of EUR -6.7 million), while its net loss for the
same period totaled EUR -13.6 million (a loss of EUR -4.1 million).
Parent-company operating loss came to EUR -7.7 million (a loss of EUR -6.5
millon) and net loss totaled EUR -8.0 million (a loss of EUR -3.8
million). Fourth quarter consolidated operating loss amounted to EUR -
2.2 million (a loss of EUR -2.3 million), while net loss totaled EUR -
1.7 million (a loss of EUR -1.9 million).
SSHs cumulative results were burdened by the first-half (January-June
2002) write-downs and certain non-recurring expenses. These write-
downs were due to the fact that the company discontinued the
development of VPN devices. The non-recurring expenses were
attributable to a one-time provision for sublease rate changes
pertaining to SSHs facilities in the US, the reinforcement of the
companys sales organization, operational restructuring, and the
adjustment of the overall staffing level to the market situation.
These non-recurring expenses entered in 2002 totaled EUR 5.1 million.
SSH made dedicated efforts in 2002 to improve its profitability. The
impact of these measures will materialize in full as of the beginning
of 2003. The Group took measures to adjust its cost structure to meet
the changing market situation, including a cautious recruitment
policy, postponing IT infrastructure investment, concentrating US
operations in Finland and cutting administrative expenses. On the
other hand, the company invested strongly in more efficient sales and
marketing operations and maintained its R&D spending at a robust
level, with a view to ensuring SSHs long-term competitiveness despite
the weak market conditions.
SSHs fixed expenses increased to EUR 27.2 million, compared to EUR
23.1 million in the previous year, due mainly to non-recurring
expenses resulting, for example, from the discontinuance of the VPN
device development and organizational restructuring. Due to the
adjustment measures taken, second-half fixed expenses decreased by
32.0 percent on the first half of the year, to EUR 5.2 million. Second-
half fixed expenses decreased by 10.1 percent year-on-year. The final
quarter saw further entries of EUR 0.4 million in credit losses and
EUR 0.3 million in non-recurring expenses caused by operational
adjustment measures. The cost-cutting measures taken contribute only
partly to the second-half results for 2002.
R&D expenses for the fiscal year totaled EUR 8.2 million (EUR 8.1
million) and EUR 1.7 million (EUR 2.0 million) for the fourth quarter.
For the fiscal year R&D spending accounted for around 49 percent of
consolidated net sales.
Sales and marketing expenses for the year increased to EUR 14.7
million (EUR 10.0 million), while administrative expenses were EUR 4.3
million (EUR 5.0 million). The increase in sales and marketing
expenses was due to non-recurring expenses resulting from business
reorganization, additional investment in sales personnel and the
establishment of sales offices in the UK and the US east coast.
Fourth-quarter sales and marketing expenses came to EUR 3.2 million
(EUR 3.0 million), while administrative expenses for the same period
were EUR 0.8 million (EUR 1.5 million).
Return on investment (ROI) was -30.0 percent (-7.06 percent) and
return on equity (ROE) came to -31.68 percent (-7.93 percent).
Earnings per share were EUR -0.49 (EUR -0.15) and equity per share
amounted to EUR 1.3 (EUR 1.82).
BALANCE SHEET AND FINANCIAL POSITION
The consolidated balance sheet total on December 31, 2002 stood at EUR
42.0 million (EUR 57.4 million), of which liquid assets accounted for
EUR 34.7 million (EUR 44.6 million), or 82.6 percent of the balance
sheet total. The parent-company balance sheet total on December 31,
2002 was EUR 45.1 million (EUR 56.0 million). Except for the
subordinated loan of EUR 0.2 million in shareholders equity granted
by the National Technology Agency (Tekes), the company has no other
long-term liabilities.
Gearing, or the ratio of net liabilities to shareholders equity,
remained at the previous years level almost throughout the financial
year, standing at -95.8 percent (-89.0 percent) at the end of
December. The Group has no other interest-bearing liabilities except
for the above-mentioned subordinated loan. Equity-to-assets ratio on
December 31, 2002 was 88.7 percent (90.1 percent).
The reported gross capital expenditure totaled EUR 0.4 million (EUR
1.4 million), comprising mainly parent-company investments in
software, machinery and equipment. The reported financial income
consisted of interest income. Financial income and expenses for the
year totaled EUR 0.5 million, compared to EUR 2.6 million in the
previous year. Exchange rate losses and the general fall in interest
rates reduced the financial income reported for the year. The parent
company recorded financial income and expenses of EUR -0.4 million,
compared to the previous years EUR 2.7 million.
A total of EUR 0.9 million of product development funding, granted by
the National Technology Agency, and consultation fees were entered in
the other income from business operations. The Group had two TEKES
projects underway during the report period.
MARKET DEVELOPMENTS
The companys target markets experienced a challenging market
situation during 2002. Hardware manufacturers, service providers and
end-user organizations IT investments remained low.
Having started in the third quarter, the flagging investment activity
in the US also continued in the fourth quarter. As forecast by SSH,
only some of the investments postponed at the end of the third quarter
were implemented during the final quarter of the year. World economic
uncertainties and especially the growing threat of war between the US
and Iraq caused a number of US companies to refrain from their
investment decisions.
Although end-user organizations, by and large, continued to pursue a
cautious investment policy in the fourth quarter, SSH received several
orders e.g. from large international banks.
Since service providers investment activity remained at a very low
level throughout 2002, hardware and software manufacturers did not
venture to make investments nor resume their product development
projects, which was reflected in demand for SSHs IPSec and Secure
Shell Toolkit products.
In 2002, SSHs main markets were the US, Germany, Japan and the Nordic
countries, the US still being the largest market area. SSH increased
its sales efforts in the US, the UK, Germany, Sweden, Taiwan and
South Korea.
SSHs competitive position remained steady during the fourth quarter.
The company is still the worlds leading developer and marketer of
Internet Protocol Security (IPSec) and Secure Shell technologies.
Competition intensified for IPSec Toolkit products in the segment of
customers who manufacture low-cost, low-end network equipment. The VPN
and PKI markets were still exposed to fierce competition.
During 2002, SSH continued the process of shifting its role as a
technology supplier in the value chain towards a provider of end-user
solutions. In line with its long-term strategy, the company will place
a particular emphasis on data-security solutions designed for large
corporations and especially banks and other financial institutions, as
well as public-sector organizations. The company is also building
relationships with system integrators used in IT deployments by these
customers. In addition to end product sales, SSH will license its
basic solutions to hardware and software manufacturers. SSHs long-
term goal in these customer segments is to become one of the worlds
leading providers of data-security solutions.
SALES PERFORMANCE
During 2002, Secure Shell products, IPSec Toolkit products and new VPN
and PKI products accounted for 56.0 percent, 38.3 percent and 5.7
percent of SSHs sales, respectively. The sales of new products came
mainly from SSH Sentinel VPN client products.
During the fourth quarter, SSH concluded 20 license and maintenance
agreements, each exceeding EUR 50,000, of which 15 were one-time
licenses. During the corresponding period in the previous year, the
number of agreements valued at more than EUR 50,000 totaled 23, of
which 14 were one-time licenses.
The 2002 license and maintenance agreements valued at over EUR 50,000
totaled 99 (93 in 2001), of which 64 (41 in 2001) were one-time
licenses. Royalties, related down payments, and maintenance charges
accounted for nearly 44.9 percent of consolidated net sales.
The ten largest customers accounted for 17.8 percent of net sales.
None of the customers, however, represents more than 5 percent of net
sales, i.e. the company does not depend on a single customer.
The US maintained its position as SSHs main market area during the
report period. The US, Finland, the rest of Europe, and the rest of
the world - such as Japan - accounted for 42.2 percent (49.7 percent),
21.6 percent (21.6 percent), 19.8 percent (15.9 percent) and 16.4
percent (12.8 percent), respectively.
The majority of 2002 net sales derived from direct sales by SSHs own
sales organization to its customers. In order to buttress its own
sales organization, the company has searched for strategic partners
and distributors. The establishment of the distribution network
proceeded according to plan in 2002, and SSH had 66 distributors on a
global basis at the end of 2002.
During 2002, SSH announced major SSH Secure Shell agreements with two
of the worlds leading banks, Commerzbank and UBS, and IPSec Toolkit
agreements with Hitachi Information Technology and Adaptec, a US
company. Since banks and other financial institutions are SSHs key
customer segment, these agreements with Commerzbank and UBS will serve
as significant references, opening up opportunities for additional
agreements. The agreement with Hitachi-IT will be an important
reference for SSH in the Japanese market, strengthening the companys
market position as a leading provider of IPSec Toolkit software in
Asia. Adaptec is one of the worlds leading SAN (Storage Area Network)
hardware and software manufacturers.
RESEARCH AND DEVELOPMENT
SSH continued to invest in research and development in 2002, reported
R&D expenses accounting for 49 percent of net sales.
SSH launched several products on the market during 2002. In the first
quarter, the company broadened the range of its SSH Certifier PKI
product family by introducing software that, for example, enabled the
use of electronic certifiers, stored in smart cards, in user
authentication. The second quarter saw the launch of two brand new
toolkit products: SSH QuickSec Toolkit for SAN is a data security
software package especially targeted at the manufacturers of storage
area network (SAN) devices, whereas SSH QuickSec Toolkit for Access
Networks is a software suite customized for the manufacturers of
network equipment containing small, embedded operating systems (so-
called access or edge devices).
In the first half of 2002, SSH decided to concentrate on the
development of Internet security software and management products. At
the same time, it decided to discontinue the manufacture of VPN
hardware, while continuing the development of VPN software. SSH has
discontinued the active search of licensing opportunities for its VPN
hardware technology.
In October, SSH announced an updated release of its prize-winning SH
Sentinel VPN software. In addition, the company launched updated
versions of most of its products in 2002. SSHs products also won
international prizes during the report period. For instance, SSH
Secure Shell and SSH Sentinel were awarded the "Best of 2002" prize by
SC Magazine as advanced data security products.
During the report period, SSH entered into several partnerships, of
which one of the most important included the OPSEC (TM) certification
granted by Check Point Software Technologies, the worlds leading
firewall and VPN manufacturer, to SSH Certified. This certification
will guarantee that the SSH Certifier product, designed for the
granting and management of electronic authentication, is seamlessly
integrated with Check Points VPN-1(R)/FireWall-1(R) Next Generation
software products. Also, the certification will help SSH sell and
market SSH Certifier to Check Points customers.
At the end of December, SSH held 4 patents while 37 were pending.
During 2003, the companys product development will pay particular
attention to the easy installation and manageability of its products.
HUMAN RESOURCES AND ORGANIZATON
At the end of 2002, the Group had 147 employees on its payroll. The
number of employees fell by 34, or 18.8 percent. Employees in R&D,
sales & marketing and administration accounting for 49.0 percent, 38.1
percent and 12.9 percent of all Group personnel, respectively.
During the second quarter, SSH adjusted its cost structure to the
prevailing market conditions. Consequently, the company entered into
Group-wide joint discussions with its personnel, resulting in the
reduction of personnel by 33, of which 22 were in Finland and 11 in
international offices.
During the second quarter, SSH appointed Arto Vainio, BSc (Econ),
as the new Chief Executive Officer. Vainio assumed the duties of CEO
on July 3, 2002, having previously acted as the Marketing Director of
Tellabs. At the same time, the previous CEO and founder of SSH, Tatu
Ylönen, took over the development of the companys technology strategy
and its application in research and development as well as products.
During 2002, SSH restructured its organization on a more customer-
driven basis. Based on the redefinition of its business strategy in
September, SSH divided its product and marketing team into two focus
areas according to customer segments: Enterprise Security Solutions
specializes in data-security solutions for selected end-customer
segments and Security Technologies is responsible for the sale of
SSHs toolkit and other OEM (Original Equipment Manufacturer) products
to hardware and software manufacturers. These changes will support the
companys redefined business strategy and the shifting of strategic
focus towards end-user organizations.
BOARD AND AUDITORS
SSH Communications Security Corps Annual General Meeting of April 11,
2002 elected the following Board members: Bo Harald, Tapio Kallioja,
Tomi Laamanen and Tatu Ylönen. Tomi Laamanen was re-elected as
Chairman.
The AGM of April 11, 2002 re-elected PricewaterhouseCoopers Oy,
Authorized Public Accountant, the companys auditors, with Henrik
Sormunen, Authorized Public Accountant, acting as the principal
auditor.
SHARES AND SHAREHOLDING
The reported trading volume of SSH Communications Security Corp shares
for the financial year totaled 4,289,902 shares (valued at EUR
7,137,801.28), i.e. 15.5 percent of the shares changed hands. The
highest quotation for the year was EUR 3.70 and the lowest was EUR
0.6. The trade weighted average price for the year was EUR 1.66, and
the companys share closed at EUR 0.75 on the final trading day of the
year (December 30, 2002). Fourth-quarter trading volume totaled
1,908,516 shares (valued at EUR 1,535,518.57), i.e. 6.9 percent of the
shares changed hands at a low of EUR 0.6 and a high of EUR 1.20.
There were no substantial changes in SSH Communications Security
Corps shareholding during the financial year. The period-end number
of shareholders totaled 7,571 (7,800). On December 31, 2002, the ten
largest shareholders accounted for 74.7 percent (77.0 percent) of the
companys shares and voting rights. Applied Computing Research Ltd
(ACR) still holds 61.2 percent of the companys shares. Foreign
shareholding accounted for 0.4 percent.
SHARE CAPITAL DEVELOPMENTS
The companys registered share capital on December 31, 2002 came to
EUR 831,418.05, consisting of 27,713,935 shares. SSH increased its
share capital three times during 2002, based on share subscriptions
according to SSHs stock options. The number of shares subscribed on
the basis of the 1999 stock options totaled 22,750, increasing the
companys share capital by EUR 682.50.
SSHs AGM on April 11,2002 authorized the Board to decide by April 11,
2003 to increase share capital through a rights issue and/or grant
stop options or issue bonds with equity warrants or convertible bonds
in such a way that the share capital may increase by a maximum of EUR
120,000.
The AGM approved SSHs new stock options plans. On the basis of the
stock option plan I/2002, the Group may offer its employees a maximum
of two million stock options, each option entitling its holder to
subscribe for one SSH Communications Security Corp share at a nominal
value of EUR 0.03. Depending on the type of warrant, the subscription
period will begin in several stages on May 1 of 2003, 2004, 2005 and
2006 and will expire for all stock options on May 1, 2008. The
subscription price of SSH share equals the closing price quoted in
continuous trading on the Helsinki Exchanges on March 19, 2002 (EUR
2.67) plus 30 percent and finally rounded up to the closest ten cent.
As a result of the subscriptions, the companys share capital may
increase by a maximum of EUR 60,000.
On the basis of the stock option plan II/2002, the Group may offer its
US employees a maximum of 94,000 stock options, each option entitling
its holder to subscribe for one SSH Communications Security Corp share
at a nominal value of EUR 0.03. Depending on the type of warrant, the
subscription period will begin in several stages on June 6 of 2002,
and on May of 2003, 2004 and 2005 and will expire for all stock
options on April 11, 2012. The subscription price of SSH share equals
the closing price quoted in continuous trading on the Helsinki
Exchanges on 6 May, 2002 (EUR 2.00), and, as a result of the
subscriptions, the companys share capital may increase by a maximum
of EUR 2,820.
SSH Communications Security Corps Board of Directors decided to grant
stock options, as distinct from the shareholders pre-emption right,
to the management and employees of SSH Communications Security, Inc.,
a US subsidiary, as part of the Groups incentive scheme (Stock Option
Plan III/2002). Consequently, the Group may offer a maximum of 114,498
stock options, entitling their holders to subscribe for 114,498 new
SSH Communications Security Corp shares at a per-share nominal value
of EUR 0.03. In accordance with the stock options terms, the
subscription price of one SSH share equals the closing price quoted in
continuous trading on the Helsinki Exchanges on 10 July, 2002 (EUR
1.90). As a result of the subscriptions, the companys share capital
may increase by a maximum of EUR 3,434.94.
EVENTS AFTER THE REPORT PERIOD
On February 2003, SSH announced that it would continue the process
launched in the spring of 2002 of streamlining and refocusing its
operations. As a result, while running down the Kuopio office, SSH
will concentrate the product development of SSH Sentinel from Kuopio
to Helsinki. At the same time, the company entered into
employer/employee negotiations with the Kuopio office personnel. SSH
considers that the concentration will have no impact on SSH Sentinel
sales.
PROSPECTS FOR 2003
In the fall of 2003, while redefining its business strategy SSH
focused its business on two business areas. The company will
increasingly focus on large corporations, banks and other financial
institutions, and public-sector organizations. Moreover, it will
cooperate closely with the worlds leading hardware and equipment
manufacturers, to which it licenses its data security software
products.
During 2003, SSH will continue to invest strongly in more efficient
sales and marketing operations. This will involve developing its own
sales organization, finding a few selected partners and cooperating
closely with them. The company will also increasingly develop new
cooperation models with its existing customers. Ready to strengthen
its position across all markets, SSH is geared up for sharp
competition.
The companys management estimates that the market situation will
remain highly challenging during 2003. End-user organizations will
remain wary of their investment decisions. Hardware and software
manufacturers investment activity has not yet rebounded, as they are
expecting economic recovery to justify the launch of product
development projects. SSH is well positioned to raise net sales once
markets rebound and investments take off.
By the light of current development, SSHs consolidated net sales for
2003 are predicted to reach around EUR 18 million, suggesting a sales
improvement of 5 percent, year-on-year. The company management
estimates that the growth will derive mainly from the well targeted
SSH Secure Shell sales for large corporations, coupled with extended
applications for the product. Sales of the IPSec and Secure Shell
Toolkit product family are licensed to hardware and software
manufacturers, and are predicted to remain almost at the 2002 levels.
Also, SSH Certifier and SSH Sentinel products will boost growth in
sales.
Although SSH Group will show a loss in the first half of 2003, it
should be able to make a profit during the second half. An important
reason for this is that the contractual royalties entered as
purchasing and production costs that have burdened SSHs results since
2000 will expire at the end of the third quarter. Consequently, the
company estimates that the purchasing and production costs will be
restored to their normal levels, to less than 5 percent of net sales.
Due to these contractual royalties, a comparable figure in 2002 was
about 22 percent of net sales. This is expected to markedly improve
profitability from the fourth quarter on.
During 2002, the company has also taken a number of measures to adjust
its cost structure to the prevailing market conditions. Under the
terms agreed on January 2003, the new lease on the companys US office
will also substantially lighten the cost structure in 2003, generating
annual cost savings of approximately USD 1.0 million. As profitability
is SSHs key focus area in 2003, the company is determined to rein in
its costs.
Net sales and profit forecasts depend on world economic
developments and, above all, the duration of the war, if it breaks
out, between the US and Iraq including its world economic
repercussions. In the event that the war breaks out and has a great
economic impact, the company may be forced to revise its forecasts for
net sales and profit.
BOARD PROPOSAL TO THE ANNUAL GENERAL MEETING
The company has no distributable earnings. The Board proposes that no
dividend be paid for the financial year 2002 and that the net loss of
EUR 8,030,987.71 reported for the period be entered in the
shareholders equity. The Board also proposes that the loss of EUR
13,626,297.62 shown in the balance sheet be covered by reducing the
issue premium fund.
FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
1-12/2002 1-12/2001
EUR million
Net sales 16.8 19.9
Purchasing and production costs -4.6 -4.6
Gross margin 12.2 15.2
Expenses
R&D -8.2 -8.1
Sales & marketing -14.7 -10.0
Administration -4.3 -5.0
Other operating income 0.9 1.2
Operating results -14.1 -6.7
Financial income and expenses 0.5 2.6
Profit/loss before taxes -13.6 -4.1
Taxes *) 0.0 0.0
Net profit for the period -13.6 -4.1
* Taxes are proportionate to the net profit for the period.
CONSOLIDATED BALANCE SHEET
Dec. 31, 2002 Dec. 31, 2001
EUR million
ASSETS
Fixed assets
Intangible assets 1.0 1.7
Tangible assets 0.5 1.0
Inventories and current assets
Inventories 0.8 1.1
Current assets
Short-term receivables 5.0 8.9
Cash and cash equivalents 34.7 44.6
Total assets 42.0 57.4
SHAREHOLDERS EQUITY AND LIABILITIES
Shareholders equity
Share capital 0.8 0.8
Issue Premium fund 54.6 54.6
Retained earnings/loss -5.9 -1.4
Net profit for the period -13.6 -4.1
Subordinated loans 0.3 0.3
Shareholders equity total 36.2 50.2
Liabilities
Short-term liabilities
Liabilities total 5.8 7.2
Total Shareholders Equity and
Liabilities 42.0 57.4
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1-12/2002 1-12/2001
Cash flow from operations -9.5 -4.9
Cash flow from investments -0.4 -1.6
Cash flow before financing -9.9 -6.5
Cash flow from financing 0.0 0.0
Cash flow after financing -9.9 -6.5
SSH Communications Security Corp has neither long-term receivables nor
liabilities. The subordinated loan of EUR 245,218, at the base rate
determined by the Bank of Finland plus one percentage point with a
maturity of eight years, was granted by the National Technology
Agency.
FINANCIAL INDICATORS
1-12/2002 1-12/2001
Net sales, EUR million 16.8 19.9
Operating results, EUR million -14.1 -6.7
% of net sales -83.7 -33.8
Profit before taxes, EUR million -13.6 -4.1
% of net sales -81.0 -20.8
Return on investment, % -30.6 -7.1
Return on equity, % -31.7 -7.9
Interest-bearing net
liabilities, EUR million -34.5 -44.4
Equity-to-assets ratio, % 88.7 90.1
Net gearing, % -95.8 -89.0
Gross capital expenditure,
EUR million 0.4 1.4
% of net sales 2.6 7.0
Investments, EUR million, 0.4 1.6
% of net sales 2.6 8.0
R&D expenses, EUR million, 8.2 8.1
% of net sales 49.0 40.7
Personnel, on average 166 182
Personnel, period-end 147 181
The value of orders is not regarded as a relevant note to the
Financial Statements from the industrys perspective.
PER-SHARE DATA
1-12/2002 1-12/2001
Earnings per share,
EUR (diluted) -0.49 -0.15
Equity per share, EUR 1.30 1.82
Divdidend per share, EUR 0.00 0.00
Dividend per profit, % 0.0 0.0
Number of shares, average,
during period, 000 27,702 27,379
Number of shares, period-end,
000 27,714 27,691
Share performance, EUR
Average price 1.66 7.06
Lowest 0.60 2.30
Highest 3.70 15.99
Share price, period-end 0.75 3.05
Market capitalization,
period-end, EUR million 20.8 84.5
Volume of shares traded,
Million 4.3 8.4
Volume of shares traded,
% of share capital 15.5 30.4
Value of shares traded,
EUR million 7.1 59.4
Price-earnings ratio (P/E) -1.6 -20.5
CONTINGENT LIABILITIES
Dec. 31, 2002 Dec. 31, 2001
EUR million
Assets pledged
Rental liabilities 0.8 1.2
Leasing liabilities 0.3 0.2
The social expenses incurred due to stock options exercised during the
financial period have been entered as expenses in the income
statement. Social expenses from stock options exercisable in the
future would amount to EUR 19,495, calculated on the closing price of
the companys share (at EUR 0.75). Any future social expenses have not
been included in the income statement or in the balance sheet.
All data in this bulletin are based on unaudited figures.
SHAREHOLDERS
The companys ten largest shareholders, including nominee-registered
shares, were as follows on December 31, 2002:
Applied Computing Research (ACR) Ltd 61.2%
Mutual Pension Insurance Company Varma-Sampo 2.3%
Ylönen Tatu 1.9%
Nixu Oy 1.9%
Mutual Pension Insurance Company Ilmarinen 1.7%
Promotion Capital I Ky 1.7%
Kalle Kaukonen 1.3%
Markula Jussi 0.9%
Mattila Samuli 0.9%
Mutual Insurance Company Kaleva 0.8%
Total 74.7%
Nominee-registered shares 0.2%
FINANCIAL INFORMATION
A briefing on this financial bulletin for analysts and the media will
be presented at the auditorium of SSHs headquarters on the 1st floor,
Fredrikinkatu 42, Helsinki, on Thursday, February 13, 2003 at 10:00
a.m. Entrance at the corner of Fredrikinkatu and Malminkatu.
SSH Communications Security Corp will publish its Interim Reports for
2003 as follows:
Interim Report, First quarter April 23, 2003
Interim Report, First two quarters July 30, 2003
Interim Report, First three quarters October 22, 2003
Helsinki, February 13, 2003
SSH COMMUNICATIONS SECURITY CORP
Board of Directors
Arto Vainio
President and CEO
CEO
Arto Vainio
Tel: +358 20 500 7400
Investor Relations/CFO
Mika Peuranen
Tel: +358 20 500 7419
E-mail: 
© 2003 SSH Communications Security Corp. All rights reserved. ssh® is a registered trademark of SSH Communications Security Corp in the United States and in certain other jurisdictions. All other names and marks are property of their respective owners.