Year Ended December 31, Notes 2009
2008 As Adjusted
2007 As Adjusted
(Amounts in thousands of Euro, except per share data)
Product sales . . . 304,439 226,055 177,569 License revenues . . . 23,049 30,202 12,211 Service fees . . . 10,675 10,900 14,006 Total revenues . . . . 4 338,163 267,157 203,786 Cost of product sales . . . (185,599) (138,790) (124,557) Cost of service and license fees . . . (9,014) (6,965) (10,327) Total cost of sales . . . . (194,613) (145,755) (134,884) Gross margin . . . . 143,550 121,402 68,902 Government grants . . . 6,870 5,380 7,086 Other income . . . 12,969 10,772 2,244 Total other operating income. . . . 19,839 16,152 9,330 Research and development. . . (70,176) (70,229) (63,995) Selling, general and administrative . . . (61,400) (64,778) (63,566) Reversal of impairment/(impairment) . . . 5.6/5.7 7,199 4,888 (171) Total other operating expenses . . . . (124,377) (130,119) (127,732) Operating profit/(loss) . . . . 39,012 7,435 (49,500) Financial income . . . 5.2 9,020 6,935 13,190 Financial expenses . . . 5.3 (12,213) (9,597) (11,812) Results investments non-consolidated companies . . . 5.9 2,147 (128) (996) Results disposal of non-consolidated companies . . . 5.9 — 1,570 2,186 Disposal of subsidiaries . . . 1.1 — (367) — Profit/(loss) before tax . . . . 37,966 5,848 (46,932) Income tax . . . 5.4 (14,028) 8,402 2,598 Profit/ (loss) for the year . . . . 23,938 14,250 (44,334) Attributable to:
Equity holders of the parent. . . 23,938 14,250 (44,334) Profit/(loss) per share — basic . . . . 5.5 0.34 0.22 (0.68) Profit/(loss) per share — diluted . . . . 0.33 0.21 (0.68) Weighted average shares outstanding — basic (in thousands) . . . 70,266 65,593 65,103 Weighted average shares outstanding — diluted (in thousands) . . . . 71,685 66,315 65,103 Following the accounting policy adoption to recognize actuarial gains and losses in other comprehensive income as of January 1, 2009, the entries for defined benefit post-employment plans were adjusted starting January 1, 2007. The impact of this retrospective application is provided in note 1.5.1. The accompanying notes are an integral part of these financial statements.
16.4.2 Consolidated Statements of Comprehensive Income
Year Ended December 31, Notes 2009
2008 As Adjusted
2007 As Adjusted
(Amounts in thousands of Euro)
Profit/(loss) for the period . . . . 23,938 14,250 (44,334) Foreign currency translation . . . 13,266 (4,556) (20,363) Unrealized result on available for sale securities . . . 3.5 5,219 (5,086) (2,330) Unrealized results on cash flow hedges . . . 5.13 742 (685) — Actuarial gains and losses on pensions . . . 5.10 (8,217) (842) 1,804 Income tax . . . 5.4 1,786 257 (388) Other comprehensive income for the period, net of tax . . . . 12,796 (10,912) (21,277) Total comprehensive income for the period . . . . 36,734 3,338 (65,611) Attributable to:
Equity holders of the parent . . . 36,734 3,338 (65,611) Following the accounting policy adoption to recognize actuarial gains and losses in other comprehensive income as of January 1, 2009, the entries for defined benefit post-employment plans were adjusted starting January 1, 2007. The impact of this retrospective application is provided in note 1.5.1. The accompanying notes are an integral part of these financial statements.
16.4.3 Consolidated Statements of Financial Position Notes December 31, 2009 December 31, 2008 As Adjusted January 1, 2007 As Adjusted
(Amounts in thousands of Euro)
Assets
Non-current assets
Property, plant and equipment . . . 5.6 192,615 151,206 138,018 Intangible assets . . . 5.7 75,398 79,004 113,077 Goodwill . . . 5.8 46,824 46,076 47,419 Investments in associates and joint ventures . . . 5.9 11,433 9,239 5,998 Pension asset . . . 5.10 2,923 8,612 3,301 Available-for-sale investments . . . 3.5 10,441 4,922 12,339 Deferred tax asset . . . 5.4 208 — 308 Other financial assets . . . 5.11 16,218 14,920 16,430
356,060 313,979 336,890
Current assets
Cash and cash equivalents . . . 5.12 327,837 170,969 157,837 Derivative financial instruments. . . 5.13 286 1,761 68 Trade accounts receivable . . . 5.14 87,031 40,108 58,563 Inventories . . . 5.15 118,420 91,847 75,519 Other current assets . . . 5.16 121,497 17,633 25,084
655,071 322,318 317,071
Total assets . . . . 1,011,131 636,297 653,961 Liabilities and equity
Equity attributable to equity holders of the parent . . . 5.17 738,265 452,534 497,683 Non-current liabilities
Long-term provisions . . . 5.19 6,853 5,876 5,380 Long-term financial liabilities . . . 5.20 33,533 35,297 26,945 Deferred tax liabilities . . . 5.4 18,830 16,644 33,701 Other non-current liabilities and deferred income . . . 5.21 55,484 7,645 —
114,700 65,462 66,026
Current liabilities
Short-term provisions . . . 5.19 739 1,581 2,874 Short-term financial liabilities . . . 5.20 18,767 26,333 19,468 Other current liabilities and deferred income . . . 5.21 47,512 28,405 29,132 Income tax payable . . . 12,049 2,777 266 Trade accounts payable . . . 5.22 79,099 59,205 38,512
158,166 118,301 90,252
Total liabilities . . . . 272,866 183,763 156,278 Total liabilities and equity. . . . 1,011,131 636,297 653,961 Following the accounting policy adoption to recognize actuarial gains and losses in other comprehensive income as of January 1, 2009, the entries for defined benefit post-employment plans were adjusted starting January 1, 2007. The impact of this retrospective application is provided in note 1.5.1. The accompanying notes are an integral part of these financial statements.
16.4.4 Consolidated Statements of Changes in Equity Issued Capital Share Premium Net Unrealized Gains Reserve Hedging Reserve Actuarial Gains / (losses) on Pensions Translation Reserve Accumulated Deficit Total Equity At January 1, 2007 . . . . 15,553 726,869 10,670 — — (7,933) (247,273) 497,886
Change in accounting policy . . . — — — — 383 — (586) (203)
At January 1, 2007 (As adjusted). . 15,553 726,869 10,670 — 383 (7,933) (247,859) 497,683
Issue of shares . . . 132 2,185 — — — — — 2,317
Cost of share-based payments . . . — 6,524 — — — — — 6,524
Total comprehensive income for the
period . . . — — (2,330) — 1,416 (20,363) (44,334) (65,611)
At December 31, 2007
(As adjusted) . . . . 15,685 735,578 8,340 — 1,799 (28,296) (292,193) 440,913
Issue of shares . . . 115 3,115 — — — — — 3,230
Cost of share-based payments . . . — 5,053 — — — — — 5,053
Total comprehensive income for the
period . . . — — (5,086) (685) (585) (4,556) 14,250 3,338
At December 31, 2008
(As adjusted) . . . . 15,800 743,746 3,254 (685) 1,214 (32,852) (277,943) 452,534
Issue of shares . . . 3,747 237,518 — — — — — 241,265
Cost of share-based payments . . . — 7,732 — — — — — 7,732
Total comprehensive income for the
period . . . — — 5,219 742 (6,431) 13,266 23,938 36,734
At December 31, 2009 . . . . 19,547 988,996 8,473 57 (5,217) (19,586) (254,005) 738,265
Following the accounting policy adoption to recognize actuarial gains and losses in other comprehensive income as of January 1, 2009, the entries for defined benefit post-employment plans were adjusted starting January 1, 2007. The impact of this retrospective application is provided in note 1.5.1. The accompanying notes are an integral part of these financial statements.
16.4.5 Consolidated Statements of Cash Flows
Year Ended December 31, Notes 2009
2008 As Adjusted
2007 As Adjusted
(Amounts in thousands of Euro)
Cash flows from (used in) operating activities . . . . 5.27
Profit/ (loss) before tax . . . 37,966 5,848 (46,932) Adjustments
Results of investments in associates and joint ventures . . . . 5.9 (2,147) 128 996 Financial income and expenses . . . 5.2/ 5.3 (814) 3,963 (1,378) Amortization . . . 5.7 11,107 11,674 11,894 Depreciation . . . 5.6 20,393 16,629 14,453 (Reversal of impairment) / impairment . . . 5.6/ 5.7 (7,199) (4,888) 171 Change in pension assets . . . 5.10 5,658 (750) (3,871) Non-cash change in long-term deferred income and
provisions . . . 5.19/5.20 (15,722) (4,131) 13,276 Stock-based compensation . . . 5.18 7,732 5,053 6,817 Other non-cash items . . . 85 (139) 6,257 Changes in net working capital
Trade accounts receivable and other current assets . . . (44,527) 4,191 7,968 Inventories . . . (21,475) (37,121) (6,128) Trade accounts payable and other current liabilities . . . 38,253 3,116 23,330 Interest paid . . . (2,934) (2,684) (2,152) Income taxes paid . . . (3,677) (576) (1,545) Receipts from / (payments of) deferred income and
provisions . . . 54,167 (567) (962) Net cash flows from (used in) operating activities . . . . 76,866 (254) 22,194 Cash flows from (used in) investing activities . . . . 5.28
Purchase of property, plant and equipment . . . 5.6 (51,035) (15,787) (27,156) Proceeds from sale of equipment . . . 5.6 371 — 113 Acquisition of intangible assets (including goodwill) . . . 5.7/ 5.8 (5,477) (237) — Acquisition of business . . . 5.8 (453) — — Proceeds from / (investments) non-consolidated
companies . . . 5.9 — 182 (2,472) Proceeds from / (investments in) financial assets . . . (100,047) 2,540 — Interest received . . . 5.2 2,254 4,395 5,274 Net cash flows (used in) investing activities . . . . (154,387) (8,907) (24,241) Cash flows from financing activities . . . . 5.29
Proceeds from issue of share capital . . . 5.17 241,265 3,230 2,281 Proceeds from financial liabilities . . . 5.20 3,316 35,732 10,309 Repayment of financial liabilities . . . 5.20 (13,069) (22,336) (1,346) Net cash flows from financing activities . . . . 231,512 16,626 11,244 Total cash flow . . . . 153,991 7,465 9,197 Effect of exchange rates on cash and cash equivalents . . . 2,877 256 (3,786) Net increase in cash and cash equivalents . . . . 156,868 7,721 5,411 Cash and cash equivalents at beginning of the year . . . 5.12 170,969 163,248 157,837 Cash and cash equivalents at end of the year . . . . 5.12 327,837 170,969 163,248 Following the accounting policy adoption to recognize actuarial gains and losses in other comprehensive income as of January 1, 2009, the entries for defined benefit post-employment plans were adjusted starting January 1, 2007. The impact of this retrospective application is provided in note 1.5.1. The accompanying notes are an integral part of these financial statements.
16.4.6 Notes to the Consolidated Financial Statements
(Amounts in thousands of Euro, except per share data or as otherwise noted) 1 General information
1.1 Corporate information