Notes to the Consolidated Financial Statements

  

1. Segment information

Digia's business segments are Enterprise Solutions and Mobile Solutions. 

Net sales

€ 000

2011

2010

Enterprise Solutions

82,659

75,674

Mobile Solutions

39,281

55,152

Group total

121,940

130,825

 
In the Enterprise Solutions segment, no single customer accounted for more than 10 per cent of the consolidated net sales. The Mobile Solutions segment’s major customer is Nokia, which accounted for more than 10 per cent of the consolidated net sales in the fiscal year.

Operating profit before extraordinary items

€ 000

2011

2010

Enterprise Solutions

8,365

11,001

Mobile Solutions

-280

6,164

Group total

8,084

17,164


Digia’s consolidated profitability for 2011 was significantly affected by extraordinary non-recurrent items comprising a EUR 25.4 million goodwill writedown and a EUR 4.9 million restructuring provision related to the closure of sites. The goodwill writedown was entirely attributable to the Mobile Solutions segment. EUR 4.4 million of the restructuring provision was attributable to Mobile Solutions and EUR 0.5 million to Enterprise Solutions. Operating profit before extraordinary items is an indicator of the company’s operational profitability.

Operating profit (EBIT)

 € 000

2011

2010

Enterprise Solutions

7,895

11,001

Mobile Solutions

-30,063

6,164

Group total

-22,168

17,164

Assets 

€ 000

2011

2010

Enterprise Solutions

69,744

63,762

Mobile Solutions

8,422

40,491

Unallocated

9,647

11,185

Group total

87,813

115,438


The assets of the Enterprise Solutions segment include goodwill arising from the acquisition of Digia Sweden AB (formerly Capital C AB), Samstock Ltd and Sentera Plc, as well as the part of the goodwill arising from the acquisition of Yomi Software Ltd that is attributable to the operations of the segment. The assets of the Mobile Solutions segment include goodwill arising from the acquisition of Digia Inc. and Sunrise Resources Ltd, as well as the part of the goodwill arising from the acquisition of Yomi Software Ltd that is attributable to the operations of the segment. A EUR 25.4 million writedown applied to the goodwill of the Mobile Solutions segment during the year. The goodwill items are described in more detail in Note 15.

The most significant unallocated asset item comprises investments and cash and cash equivalents treated from the viewpoint of the Group level.


Liabilities

€ 000

2011

2010

Enterprise Solutions

19,016

12,270

Mobile Solutions

6,401

10,264

Unallocated

22,644

25,493

Group total

48,061

48,027

The most significant item within unallocated liabilities consists of a long-term bank loan.

Depreciation, amortisation, and impairment

€ 000

2011

2010

Enterprise Solutions

2,702

1,671

Mobile Solutions

26,565

2,048

Group total

29,268

3,719


Capital expenditure

€ 000

2011

2010

Enterprise Solutions

2,026

1,023

Mobile Solutions

707

942

Group total

2,733

1,965


Geographical distribution of net sales 

€ 000

2011

2010

Finland

120,196

120,196

Other countries

14,697

10,629

Total

121,940

130,825