Exhibit 99.1
PRESS RELEASE
TRIPLE P REPORTS HALF-YEAR FIGURES 2003
August 8, 2003—Vianen, The Netherlands. Triple P N.V. (Nasdaq SCM: TPPP) announced today its results of operations for the first half of 2003. Net revenues were €38.5 million, 18% below last year. As a result of previous measures expenses declined by 11% in the first half of 2003 and gross margin remained stable at 17.6%.
The Company incurred a net loss of €1.0 million in the first half of 2003, including a restructuring charge of €1.3 million. The Company recently has taken additional measures to reduce its costs in anticipation of lower net revenues. The Company has undertaken the termination of the employment of 43 of its 373 employees and, as a result, incurred the €1.3 million restructuring charge in connection with related expenses in the second quarter of 2003. As a result of these additional measures, the Company's annual expenses are expected to decrease by approximately €2.5 million or 8%. The Company expects to complete this restructuring during the second half of 2003.
Without this restructuring charge of €1.3 million, adjusted net income for the first half of 2003 would have been €0.3 million. A reconciliation of net loss to adjusted net income for the six months ended June 30, 2003 is as follows:
Six months ended
June 30, 2003
(in millions)
| Net loss calculated in accordance with GAAP | (€1.0) | |
| Restructuring charge | €1.3 | |
| Adjusted net income | €0.3 |
In addition to cost reductions, the Company has initiated some organizational changes to increase net revenues. The Company has begun to notice improvement in revenues as a result.
Triple P believes that market conditions in 2003 will continue to be difficult. The difficult and uncertain economic climate generally and the continued instability in the ICT market in particular are such that the Company is not providing any specific guidance as to future results of the year 2003.
Triple P (Nasdaq SCM: TPPP) designs, supplies, builds and manages ICT-solutions that in an efficient way contribute to your company's results. The three p's—people performance and partnership—are the basis for long-lasting and successful relationships with our customers.
This release contains a number of forward-looking statements based on current expectations. Actual results may differ materially due to a number of factors which include, but are not limited to: overall ICT- spending and demand for ICT services in the Netherlands; the timing of significant orders; the ability to hire, train and retain qualified personnel and fierce competition. For a more thorough discussion of these risks and uncertainties, see the company's filings with the Securities and Exchange Commission, particularly its most recent annual report on Form 20-F.
TRIPLE P N.V.
CONSOLIDATED BALANCE SHEETS
(in thousands except number of shares and per share amounts)
| | December 31, 2002 | June 30, 2003 | |||
|---|---|---|---|---|---|
| | EUR | EUR (Unaudited) | |||
| ASSETS | |||||
| CURRENT ASSETS: | |||||
| Cash and cash equivalents | 4,207 | 1,011 | |||
| Restricted cash | 59 | 59 | |||
| Accounts receivable | 12,090 | 10,165 | |||
| Inventories | 3,136 | 3,348 | |||
| Prepaid expenses and other current assets | 1,870 | 1,849 | |||
| Total current assets | 21,362 | 16,432 | |||
NON-CURRENT ASSETS: | |||||
| Property and equipment, at cost | 3,999 | 2,791 | |||
| Less: accumulated depreciation and amortization | 2,375 | 1,373 | |||
| Net property and equipment | 1,624 | 1,418 | |||
| Total non-current assets | 1,624 | 1,418 | |||
| Total assets | 22,986 | 17,850 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
CURRENT LIABILITIES: | |||||
| Short-term part of long-term liabilities | 470 | 272 | |||
| Accounts payable | 8,444 | 6,078 | |||
| Accrued liabilities | 5,213 | 3,247 | |||
| Customer deposits | 665 | 534 | |||
| Deferred revenue | 3,981 | 4,606 | |||
| Restructuring reserve | 715 | 1,296 | |||
| Total current liabilities | 19,488 | 16,033 | |||
LONG-TERM LIABILITIES: | |||||
| Pension obligations | 259 | 0 | |||
| Other long-term liabilities | 725 | 291 | |||
| Total long-term liabilities | 984 | 291 | |||
| Total liabilities | 20,472 | 16,324 | |||
SHAREHOLDERS' EQUITY: | |||||
| Common Shares, EUR 0.04 par value per share | |||||
| Authorised—43,750,000 shares | |||||
| Outstanding—30,469,345 shares | 1,219 | 1,219 | |||
| Additional paid-in capital | 53,293 | 53,293 | |||
| Accumulated deficit | (51,998 | ) | (52,986 | ) | |
| Total shareholders' equity | 2,514 | 1,526 | |||
| Total liabilities and shareholders' equity | 22,986 | 17,850 | |||
TRIPLE P N.V.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except number of shares and per share amounts)
| | Three months ended June 30, | Three months ended June 30, | |||||||
|---|---|---|---|---|---|---|---|---|---|
| | 2002 | 2003 | 2002 | 2003 | |||||
| | EUR (unaudited) | EUR (unaudited) | EUR (unaudited) | EUR (unaudited) | |||||
| Net revenues | 24,210 | 17,687 | 47,005 | 38,478 | |||||
| Cost of revenues | 20,239 | 14,499 | 38,728 | 31,706 | |||||
| Gross profit | 3,971 | 3,188 | 8,277 | 6,772 | |||||
| Sales and marketing expense | 2,411 | 2,142 | 4,840 | 4,394 | |||||
| General and administrative expense | 1,366 | 949 | 2,543 | 2,033 | |||||
| Restructuring charge | 0 | 1,281 | 1,281 | ||||||
| Total operating expenses | 3,777 | 4,372 | 7,383 | 7,708 | |||||
| Operating income (loss) | 194 | (1,184 | ) | 894 | (936 | ) | |||
| Interest income (expense) | (77 | ) | (28 | ) | (192 | ) | (72 | ) | |
| Other, net | 8 | 1 | (53 | ) | 20 | ||||
| Total other income (expense), net | (69 | ) | (27 | ) | (245 | ) | (52 | ) | |
| Net income (loss) | 125 | (1,211 | ) | 649 | (988 | ) | |||
| Net income per share: | |||||||||
| Basic | 0.00 | (0.04 | ) | 0.02 | (0.03 | ) | |||
| Diluted | 0.00 | (0.04 | ) | 0.02 | (0.03 | ) | |||
| Weighted average shares outstanding: | |||||||||
| Basic | 30,469 | 30,469 | 30,469 | 30,469 | |||||
| Diluted | 30,469 | 30,469 | 30,469 | 30,469 | |||||
