Helsinki, Finland -
July 27, 2005
SSH's interim report for January 1 - June 30, 2005
- Net sales reported for January - June totaled EUR 2.8 million, down
33.1 percent year on year (EUR 4.2 million in Q1-Q2/2004). Invoicing
for the most important customer projects in 2005 will take place in
the second half of the year.
- In January, the company launched the industrys first Secure Shell
product for the IBM mainframe environment.
- In February, the company introduced SSH G3, the 3G Secure Shell
software architecture, which provides SSH Tectia products with a
number of new features.
- Operating loss was EUR 3.5 million (Q1-Q2/2004: a loss of EUR 3.8
million).
KEY FIGURES
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2005 2004 2005 2004 2004
Net sales (MEUR) 1.2 2.6 2.8 4.2 8.2
Net sales, change % -52.1 -37.5 -33.1 -44.9 -40.6
Operating profit/loss -1.6 -1.7 -3.5 -3.8 -6.4
(MEUR)
% of net sales -134.8 -66.1 -124.2 -90.3 -77.8
Operating profit/loss, 2.3 -32.6 7.9 -18.0 -223.7
change %
Profit/loss before -1.2 -1.5 -3.1 -3.5 -5.9
extraordinary items and
taxes (MEUR)
% of net sales -100.8 -57.7 -109.3 -83.2 -71.2
Number of employees 81 106 81 106 105
at period end
Earnings per share (EUR) -0.11 -0.13 -0.21
Shareholders equity per 0.86 1.35 1.26
share (EUR)
NET SALES
Consolidated net sales for January - June totaled EUR 2.8 million
(EUR 4.2 million), down 33.1 percent year on year. The Q1-Q2/2004 net
sales are not fully comparable with those recorded a year later
because they include sales generated by sales of SSH Certifier as a
standalone product. In November 2004, SSH licensed the further
development of its SSH Certifier product to Instasec Oy on an OEM
basis, including the transfer of existing SSH Certifier customer
accounts.
The biggest change in net sales affected the Americas, with net sales
in this market area falling by just over 42 percent during the report
period. Such major fluctuations in net sales are attributable to the
ongoing changes in the sales structure and the timing of the deals.
The change in sales structure is reflected by the fact that the value
of one or two major single-customer projects may represent over half
of the companys invoicing for an entire quarter. In the first half of
2005, only three sales agreements reached the invoicing stage over EUR
100 000, as compared with six in 2004, one of which was an
exceptionally large one.
Second-quarter net sales for 2005 came to EUR 1.2 million, down by
52.1 percent year on year.
During Q2, SSH continued the systematic implementation of its strategy
based on the Tectia solution, primarily targeting large enterprises,
financial institutions, and government agencies, with almost all of
the companys Q2 sales stemming from these customer categories.
Since the majority of SSHs invoicing is based on the U.S. dollar, the
dollars value and changes in it have a fundamental effect on
consolidated net sales. During the report period, the average value of
the dollar decreased by almost 5 percent as compared to the same
period in 2004.
RESULTS AND EXPENSES
January through June saw an operating loss of EUR 3.5 million
(Q1-Q2/2004: a loss of EUR 3.8 million), with net loss coming to
EUR 3.1 million (Q1-Q2/2004: a loss of EUR 3.5 million). Exceptional
non-recurring expenses were incurred due to the relocation of the
companys headquarters from downtown Helsinki to Pitäjänmäki. The
lease for these new premises will considerably reduce SSH Finlands
rental costs during the second half of 2005.
The company also incurred costs arising from a dispute over royalty
payments between F-Secure Corporation and Nokia Corporation.
Accordingly, F-Secure Corporation is claiming excess royalties paid to
SSH for 2001-2004. In December 2004, SSH entered a reserve for EUR
136,000 in expenses for any such royalty refunds. An agreement was
reached on this matter in April, resulting in an additional
expenditure of approximately EUR 70,000 for SSH.
Operating loss for the second quarter amounted to EUR 1.6 million
(Q2/2004: a loss of EUR 1.7 million), while the net loss totaled
EUR 1.2 million (EUR 1.5 million loss).
The fixed costs SSH reported for the period continued their
year-on-year decline, as evidenced by the reduction of about EUR 1.5
million in fixed costs recorded for the first half, due to cuts in
both payroll costs and the use of external services.
Research and development expenses for the period totaled EUR 1.9
million (EUR 2.2 million), while sales and marketing expenses came to
EUR 3.5 million (EUR 4.4 million) and administrative expenses EUR 1.1
million (EUR 1.3 million).
Second-quarter research and development expenses totaled EUR 0.9
million, compared with EUR 1.1 million a year earlier. Sales and
marketing expenses in Q2 came to EUR 1.6 million (EUR 2.4 million),
and administrative expenses totaled EUR 0.5 million (EUR 0.6 million).
Since early 2005, SSH has applied IFRS 2 (Share-based Payment) to all
of its stock options granted since November 7, 2002, and to which the
rights had not accrued prior to January 1, 2005. No expenses for prior
stock options are included on the income statement. Based on the
Black-Scholes option-pricing model, stock options are recorded at
their fair value on their granting date. The fair value for stock
options to which the rights are expected to accrue will be expensed on
the income statement for the period during which such a right accrues.
Comparatives for 2004 are in compliance with IFRS 2 as if SSH had
applied the standard in earlier accounting periods.
BALANCE SHEET AND FINANCIAL POSITION
The financial position of SSH remained at a healthy level during the
report period. The consolidated balance sheet total on June 30, 2005,
stood at EUR 26.3 million (EUR 40.3 million), of which liquid assets
accounted for EUR 23.3 million (EUR 32.5 million), or 88.4 percent of
the balance sheet total. The company has no long-term liabilities.
In May 2005, SSH paid out over EUR 8.1 million in dividends.
On June 30, 2005, gearing, or the ratio of net liabilities to
shareholders equity, was -95.8 (-85.4) and the equity ratio stood at
94.9 percent (95.2 percent).
The reported gross capital expenditure for the period totaled EUR 0.1
million (EUR 0.2 million), consisting mainly of equipment purchases.
Reported financial income came mainly from capital gains on fund
units. Financial income and expenses totaled EUR 0.4 million, compared
with EUR 0.3 million a year ago.
Since SSH, under IAS 39, classifies financial assets and other
marketable securities as available-for-sale assets, it recognizes any
changes in their value under shareholders equity. Only after the
disposal of an asset does the company recognize interest income on the
income statement. During the report period, SSH recognized an increase
of EUR 0.04 million in the value of its available-for-sale assets.
The cash flow for SSHs business operations for the period showed a
negative cash flow of EUR 2.5 million, whereas investments showed a
positive cash flow of EUR 0.6 million, the latter stemming from
capital gains on investments. Cash flow from financing, EUR -8.1
million, comprised dividends paid in May, resulting in the company
showing a negative total cash flow of EUR 10.0 million during the
period.
MARKET DEVELOPMENTS
The number of invitations to tender and that of projects pending among
SSHs customers - large enterprises, financial institutions, and
government agencies - continued their upward trend in the first half
of the year, as evidenced by a major year-on-year increase in the
related prospect portfolio. The shift to becoming a supplier to very
large organizations in line with the selected market focus involves
considerably lengthy technical and commercial negotiations. For this
reason, the conclusion of major contracts in particular takes longer
than was anticipated earlier.
Legislative reforms concerning data confidentiality and secure data
communication are occurring in the United States, Japan and Europe.
Customers are facing an ever-greater challenge in terms of information
security management due to deperimeterization, or the gradual
disappearance of boundaries between companies internal and external
information networks, with recent surveys suggesting that large
corporations are finding it more difficult to protect their networks
and businesses from sophisticated worms and backdoor-based attacks.
The SSH Tectia solutions features and management capabilities align
well with this trend, and SSH is confident that the reforms will have
favorable effects in terms of customers planning secure remote
management of their information systems and solutions for protecting
their business applications.
In SSHs main market area, North America, demand focused primarily on
solutions for secure remote management of network services and various
kinds of data communication equipment. Currently, SSH Tectia Manager
is included in practically all major SSH Tectia installations. In
addition, rules in Section 404 of the Sarbanes-Oxley Act in the U.S.
have begun to contribute to SSHs target customers data security
plans for 2005 and the related investment plans.
From SSHs viewpoint, the European market is currently the most
challenging one since European customers continue to pursue a very
cautious investment policy. Product launches made by the company in
early 2005 have attracted growing interest in the SSH Tectia solution
in Europe, with Germany, the U.K., and the Nordic countries continuing
to be the most interesting countries for SSH.
In Japan, a new law on the distribution and storage of personal data
is expected to increase both public and private-sector investments in
data security.
The report period saw no major changes in competition in the market
for secure remote management solutions.
SALES PERFORMANCE
SSHS NET SALES
EUR million 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-12/
2005 2005 2004 2004 2004 2004
BY SEGMENT*
AMER 0.8 0.9 1.4 1.4 2.0 5.7
APAC 0.1 0.2 0.2 0.1 0.1 0.6
EROW 0.3 0.5 0.3 0.6 0.5 2.0
SSH Group total 1.2 1.6 1.9 2.1 2.6 8.2
SSH TECTIA BUSINESS
Net sales / license 0.8 1.0 1.4 1.5 2.1 6.2
Sales
Net sales / 0.4 0.6 0.5 0.6 0.4 2.0
maintenance
SSH Tectia total 1.2 1.6 1.9 2.1 2.6 8.2
* The 2004 net sales are not fully comparable because they include
sales generated by sales of SSH Certifier as a standalone product.
In line with its strategy, SSH continued to sell its SSH Tectia
solution to selected categories of customers. This solution enables
customer companies to protect their information systems remote
management, data transfer, and business application data
communications against both external and internal risks in a
cost-efficient manner.
The sales process for a system-level product for major customers is a
long one. In line with its strategy, SSH aims at a major increase in
the average size of contracts. Due to sales processes with major
customers being particularly slow and substantial growth occurring in
the size of future contracts, as judged by tenders submitted, the
future is going to see major fluctuations in sales from quarter to
quarter.
The Americas, the Asia Pacific region, and the Europe and Rest of the
World market area accounted for 60.0 percent (69.7 percent), 10.6
percent (5.9 percent), and 29.4 percent (24.4 percent) of reported net
sales, respectively.
During the report period, SSH concluded a number of new customer
agreements, three of which were each worth more than EUR 100,000. The
10 largest customers accounted for 45.4 percent of reported net sales,
with the largest single customer accounting for around 9.9 percent.
PRODUCTS AND MARKETING
During the report period, SSH focused its sales and marketing efforts
on large enterprises, financial institutions, and government agencies
in the U.S., Europe, and Asia, in line with its long-term strategy.
The company strengthened its sales organization by reinforcing its
partner network complementing the SSH Tectia solution.
In April, SSH announced that it will initiate a global partnership
arrangement with SoftLink, aiming at enhancing secure file transfer in
cross-platform environments. Integration of SSH Tectia with SoftLinks
B-Hub allows large enterprises to secure their file transfers in
heterogeneous IT environments.
This year marks the 10th anniversary of the Secure Shell technology
developed by SSH - Tatu Ylönen launched the first version of the
Secure Shell protocol on July 12, 1995. The Secure Shell protocol is
the basis of the SSH Tectia solution.
RESEARCH AND DEVELOPMENT
Research and development expenses in the first half totaled EUR 1.9
million (EUR 2.2 million), the equivalent of 66.1 percent of net sales
(52.2 percent).
In accordance with IFRS principles, SSH capitalizes only product
development expenses caused by the commercialization of completely new
products at the end of R&D processes. No development expenses were
capitalized during the period under review.
At the end of June, the company held 10 patents, and 17 were pending.
HUMAN RESOURCES AND ORGANIZATION
At the end of June, the Group had 81 employees on its payroll, down 25
from the previous years number, a decrease of 23.6 percent. The
number of administrative personnel decreased by 15 and sales and
marketing by 10 employees, year on year. The number of people working
in R&D remained unchanged.
At the end of the period, 42.0 percent of the employees worked in R&D,
43.2 percent in sales and marketing, and 14.8 percent in corporate
administration.
BOARD AND AUDITORS
The Annual General Meeting (AGM) on April 26, 2005, re-elected Tapio
Kallioja, Tomi Laamanen, Timo Ritakallio, and Tatu Ylönen to SSH
Communications Security Corp.s Board of Directors, with Laamanen
re-elected as chairman.
The AGM again elected to have PricewaterhouseCoopers Oy, authorized
public accountants, as the companys auditor, with Henrik Sormunen,
authorized public accountant, acting as the principal auditor.
SHARES, SHAREHOLDING AND CHANGES IN GROUP STRUCTURE
The reported trading volume of SSH Communications Security Corp.
shares totaled 5,956,070 (valued at EUR 8,172,816.54); i.e., 21.19
percent of the shares changed hands. The highest quotation was
EUR 1.78 and the lowest EUR 1.00. The trade-weighted average share
price for the period was EUR 1.37, and the share closed at EUR 1.07
(June 30, 2005).
There were no substantial changes in SSH Communications Security
Corp.s shareholding information during the report period. Tatu Ylönen
and Tero Kivinen are the largest shareholders. The former holds,
directly and through his company, Tatu Ylönen Oy, 53.7 percent of the
companys shares, and Kivinen holds 8.4 percent. Ylönen and Kivinen
owned Applied Computing Research (ACR) Oy, which previously held 60.4
percent of SSH shares. As a consideration in Applied Computing
Research (ACR) Oys merger with SSH on October 31, 2004, ACRs
shareholders - Ylönen and Kivinen - received 14,344,639 and 2,597,848
new SSH shares, respectively, or a total of 16,942,487 shares. This
equals the number of SSH shares then held by ACR.
SHARE CAPITAL AND BOARD AUTHORIZATIONS
The companys registered share capital on June 30, 2005, was
EUR 843,323.73, consisting of 28,110,791 shares. During the report
period, SSH increased its share capital twice, based on subscription
to the new shares under SSHs stock-option plan. In total, 4,250 and
4,999 new SSH shares were subscribed to under the 1999 and 2003
stock-option plan, respectively, with the result that the companys
share capital increased by EUR 277.47.
The SSH Annual General Meeting of April 26, 2005, authorized the Board
of Directors to decide by April 26, 2006, to increase the share
capital through a rights issue and/or convertible bonds, in such a way
that the resultant share capital may increase by a maximum of
EUR 165,000. The Board has not yet exercised this authorization.
Due the companys withdrawal from the VPN-hardware business, the sale
of its OEM business, and stopping its Certifier business, the Board of
Directors decided, February 9 2005, to start preparations for the
potential reduction of the tied equity and the distribution of part of
its assets to shareholders. There are no technical obstacles in this
matter and the Board of Directors will make the final proposal still
during this year.
CORPORATE GOVERNANCE
The company complies with the corporate governance recommendations for
listed companies issued by HEX Ltd., the Central Chamber of Commerce
of Finland, and the Confederation of Finnish Industry and Employers in
December 2003. More information on corporate governance is available
on the companys Web site (www.ssh.com).
PROSPECTS
Legislative reforms (for example Sarbanes-Oxley Act) are constantly
creating, within SSHs current customer base, new projects especially
in the U.S. During the summer of 2005, SSH launched a new generation
of SSH Tectia -products, which will increase both the usefulness and
the market for its products. The number of active sales cases has
increased during the first half of the year and the pipeline is bigger
than ever.
It is still possible to reach the revenue estimation given earlier
(EUR 8-10 million), but there is uncertainty in it, because the value
of a single contract in the pipeline may continue to account for as
much as half of an entire quarters invoicing. Therefore, SSH has
decided not to issue a net sales forecast for the whole of 2005 until
the timing and the size for those sales cases in the pipeline can
better be estimated. The whole year results will be negative.
INCOME STATEMENT
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2005 2004 2005 2004 2004
Net sales 1.2 2.6 2.8 4.2 8.2
Purchasing and production 0.0 0.0 0.0 -0.1 -0.1
costs
Gross profit 1.2 2.5 2.8 4.1 8.1
Other operating income 0.1 0.0 0.1 0.0 0.3
Expenses
Product development -0.9 -1.2 -1.9 -2.2 -3.8
Sales and -1.6 -2.4 -3.5 -4.4 -8.5
marketing
Administration -0.5 -0.7 -1.1 -1.4 -2.4
Operating profit/loss -1.6 -1.7 -3.5 -3.8 -6.4
Financial income and expenses 0.4 0.2 0.4 0.3 0.5
Profit/loss before taxes -1.2 -1.5 -3.1 -3.5 -5.9
a Taxes 0.0 0.0 0.0 0.0 0.0
Net profit/loss for the -1.2 -1.5 -3.1 -3.5 -5.9
period
a) Taxes are proportionate to the net profit for the period, and no
deferred tax assets are recorded for the accrued loss.
1-6/ 1-6/ 1-12/
2005 2004 2004
Earnings per share (EUR) -0.11 -0.13 -0.21
Earnings per share, diluted -0.11 -0.12 -0.21
(EUR)
BALANCE SHEET
EUR million 6/30/ 6/30/ 12/31/
2005 2004 2004
ASSETS
Fixed and other non-current
assets
Tangible assets 0.3 0.4 0.4
Intangible assets 0.7 1.1 0.9
Deferred tax assets 0.2 0.2 0.2
Total fixed and other 1.3 1.7 1.6
non-current assets
Inventories and current
assets
Short-term receivables 1.8 6.1 2.6
Short-term investments 22.3 30.6 32.3
Cash and cash equivalents 1.0 2.0 1.5
Total inventories and current 25.1 38.6 36.4
assets
Total assets 26.3 40.3 38.0
LIABILITIES AND SHAREHOLDERS
EQUITY
Shareholders equity 24.2 37.8 35.4
Long-term liabilities
Provisions 0.1 0.0 0.2
Long-term financial 0.1 0.3 0.3
liabilities
Total long-term liabilities 0.2 0.3 0.6
Short-term liabilities 1.9 2.2 2.0
Total liabilities and 26.3 40.3 38.0
shareholders equity
STATEMENT ON CHANGES IN
SHAREHOLDERS EQUITY
EUR million Share Issue Fair Transl Retained Total
capital premium value ation earnings
fund* and differ
other ence
reserves
Shareholders 0.8 39.3 0.0 -0.7 1.7 41.1
equity
Jan. 1, 2004
Change 0.0 -14.9 15.1 0.1 -3.5
Shareholders 0.8 24.4 15.1 -0.6 -1.9 37.8
equity
June 30, 2004
Change 0.0 0.0 0.0 -0.2 -2.4
Shareholders 0.8 24.4 15.1 -0.8 -4.2 35.4
equity
Dec. 31, 2004
Change 0.0 0.0 0.0 0.1 -8.1
Net loss -3.1
Shareholders 0.8 24.4 15.1 -0.7 -15.5 24.2
equity
June 30, 2005
* Transfer to the retained loss account has resulted in a reduction in
the issue premium fund.
CASH FLOW STATEMENT
EUR million 1-6/ 1-6/ 1-12/
2005 2004 2004
Cash flow from business operations -2.5 -4.2 -2.6
Cash flow from investments 0.6 -0.1 -0.4
Cash flow from financing -8.1 0.1 0.1
Increase(+) / decrease (-) in -10.0 -4.2 -2.8
liquid assets
Liquid assets at period start 33.0 35.9 35.9
Adjustment for translation 0.1 0.0 0.0
difference
b Liquid assets at period end 23.0 31.7 30.0
b) Liquid assets consist of cash and cash equivalents, as well as
the amount invested in the interest-bearing funds from other
marketable securities.
NET SALES BY SEGMENT
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2005 2004 2005 2004 2004
AMER 0.8 2.0 1.7 2.9 5.7
APAC 0.1 0.1 0.3 0.3 0.6
EROW 0.3 0.5 0.8 1.0 2.0
SSH Group total 1.2 2.6 2.8 4.2 8.2
OPERATING PROFIT/LOSS
BY SEGMENT
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2005 2004 2005 2004 2004
AMER 0.1 1.0 0.3 1.1 2.1
APAC -0.1 0.0 0.0 0.1 0.2
EROW -0.3 -0.4 -0.5 -0.9 -1.6
Common Group expenses* -1.4 -2.2 -3.3 -4.1 -7.1
SSH Group total -1.6 -1.7 -3.5 -3.8 -6.4
* Common Group expenses include Group administration expenses (e.g.,
management and finance) and product management and R&D expenses for
corporate headquarters.
KEY FIGURES AND RATIOS
1-6/ 1-6/ 1-12/
2005 2004 2004
Net sales (MEUR) 2.8 4.2 8.2
Operating profit/loss (MEUR) -3.5 -3.8 -6.4
Operating profit/loss, as % of -124.2 -90.3
net sales -77.2
Profit/loss before extraordinary -3.1 -3.5 -5.9
items and taxes (MEUR)
Profit/loss before extraordinary -109.3 -83.7 -71.2
items and taxes, as % of net
sales
Profit/loss before taxes (MEUR) -3.1 -3.5 -5.9
Profit/loss before taxes, as -109.3 -83.7 -71.2
% of net sales
Return on investment (%) -13.5
Return on equity (%) -15.1
Interest-bearing net liabilities -23.2 -32.3
(MEUR) -33.5
Equity ratio (%) 94.9 95.2 94.8
Gearing (%) -95.8 -85.3 -94.8
Gross capital expenditure (MEUR) 0.1 0.2 0.5
% of net sales 2.3 4.8 5.6
R&D expenses (MEUR) 1.9 2.2 3.8
% of net sales 66.1 52.2 46.7
Personnel, period average 89 107 105
Personnel, period end 81 106 105
PER-SHARE DATA
1-6/ 1-6/ 1-12/
2005 2004 2004
Earnings per share, undiluted -0.11 -0.13 -0.21
(EUR)
Earnings per share, diluted -0.11 -0.12
(EUR) -0.21
Equity per share (EUR) 0.86 1.35 1.26
No. of shares at period end 28,111 28,066 28,102
(thousands)
Share performance (EUR)
Average price 1.37 1.95 1.69
Low 1.00 1.20 1.18
High 1.78 2.69 2.69
Share price, period end 1.07 1.47 1.28
Market capitalization, period 30.1 41.8
end (MEUR) 36.0
Volume of shares traded 6.0 5.7
(in millions) 9.3
Volume of shares traded, as 21.2 20.4
% of total 33.3
Value of shares traded, in 8.2 11.2
millions of euros 15.8
Price-to-earnings ratio (P/E) -6.1
CONTINGENT LIABILITIES
EUR million 6/30/ 6/30/ 12/31/
2005 2004 2004
Rental liabilities 0.2 0.2 0.1
Leasing liabilities 0.1 0.2 0.1
Other contingent liabilities 0.7 2.4 0.6
Currency derivatives (not 0.0 2.0 0.7
included in hedge accounting)
These data are based on unaudited figures.
NOTES TO THE CONSOLIDATED ACCOUNTS
1. ACCOUNTING PRINCIPLES
This interim report is based on IAS 34 (Interim Financial Reporting)
accounting principles.
The table below shows the effects of IFRS 2 (Share-based Payment) on
the 2004 comparatives.
2. RECONCILIATION OF INCOME
STATEMENT
EUR million 1-6/ Effect 1-12/ IFRS 1-12/
2004 on 1-3/ 2004 2 2004
IFRS 2 2004
Net sales 4.2 4.2 8.2 8.2
Purchasing and -0.1 -0.1 -0.1 -0.1
production costs
Gross profit 4.1 4.1 8.1 8.1
Other operating 0.0 0.0 0.3 0.3
income
Operating expenses -8.0 -0.02 -8.0 -14.7 -0.04 -14.8
Operating -3.8 -0.02 -3.8 -6.4 -0.04 -6.4
profit/loss
Total financial 0.3 0.3 0.5 0.5
income and expenses
Net profit/loss for -3.5 -0.02 -3.5 -5.8 -0.04 -5.9
the period
Earnings per share -0.13 -0.13 -0.21 -0.21
(EUR)
Earnings per share, -0.12 -0.12 -0.21 -0.21
diluted (EUR)
The table below shows the effects of IFRS 2 (Share-based Payment) on
the 2004 comparatives.
3. RECONCILIATION OF BALANCE
SHEET
EUR million 6/30/ IFRS 2
2004 6/30/
2004
Fixed and other
non-current assets
Tangible assets 0.4 0.4
Intangible assets 1.1 1.1
Deferred tax assets 0.2 0.2
Total fixed and other 1.7 1.7
non-current assets
Inventories and current
assets
Short-term receivables 6.1 6.1
Available-for-sale 30.6 30.6
assets
Cash and cash 2.0 2.0
equivalents
Total inventories and 38.6 38.6
current assets
Total assets 40.3 40.3
LIABILITIES AND
SHAREHOLDERS EQUITY
Shareholders equity
Share capital 0.8 0.8
Issue premium fund 24.4 24.4
Fair value reserve 15.1 0.04 15.1
Retained earnings -2.5 -0.04 -2.5
Total shareholders 37.8 37.8
equity
Long-term liabilities
Long-term financial 0.3 0.3
liabilities
Deferred tax liability 0.0 0.0
Total long-term 0.3 0.3
liabilities
Short-term liabilities 2.2 2.2
Total liabilities and 40.3 40.3
shareholders equity
SHAREHOLDERS
On June 30, 2005, the companys 10 largest shareholders, excluding
nominee-registered shares, were as follows:
Tatu Ylönen 52.4%
Tero Kivinen 8.4%
Assetman Oy 5.0%
Markus Jaakonsaari 2.3%
Ilmarinen Mutual Pension Insurance Company 1.7%
Promotion Capital I Ky 1.7%
Tatu Ylönen Oy 1.3%
Pohjola Finland Value Investment Fund 1.3%
Kalle Kaukonen 0.8%
Arto Vainio 0.5%
eQ Extreme Mutual Fund 0.4%
Total 75.8%
FINANCIAL REPORTING
The company will hold a briefing on its interim report for equity
analysts and the media in its head office, Cabinet 204, 2nd floor,
Valimotie 17, Helsinki, on Tuesday, July 27, 2005, starting at 11:00
a.m.
The next interim report for SSH Communications Security Corp.,
covering January 1 - September 30, 2005, will be released on October
19, 2005.
Helsinki, on July 27, 2005
SSH COMMUNICATIONS SECURITY CORP
Board of Directors
Arto Vainio
CEO
CEO
Arto Vainio
Tel: +358 20 500 7400
Investor Relations/CFO
Mika Peuranen
Tel: +358 20 500 7419
E-mail: 
© 2005 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.