Analyze Current Security Products and Services
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Security Networks AG
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Security Networks AG
Fast Facts
Headquarters Address Kronprinzenstrasse 30,Essen,Nordrhein- Westfalen,45128,Germany
Telephone +49 201 54540
Fax +49 201 54541000
Website www.secunet.com
Ticker Symbol , Exchange Name YSN,XETRA
Number of Employees 383
Fiscal Year End December
Revenue (US$ million) 121
SWOT Analysis
Strengths Weaknesses
Comprehensive Customer-Oriented Solutions
Fall in Efficiency Ratios
Strong Liquidity Position Over Dependence on Government Contracts
Well Established Player
Opportunities Threats
German Market for IT Security Employee Attrition
Strategic Collaborations Technological Landscape
The De-Mail-Law
Share Data
Share price (US$) as on 13 Sep 2016 48
EPS (US$) 1.26
Market Capitalization (US$ million) 311
Enterprise Value (US$ million) 281
Shares outstanding (million) 6
Operating Performance
The company reported revenue of US$121 million during the fiscal year 2015 (2015). The company's revenue grew at a CAGR of 11.95% during 2011– 2015, with an annual growth of 11.29% over 2014. In 2015, the company recorded an operating margin of 9.40%, as against 7.97% in 2014.
Revenue and Margins
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TABLE OF CONTENTS
1 Security Networks AG - Key Employees .................................................................................................... 5
2 Security Networks AG - Key Employees Biographies ............................................................................... 6
3 Security Networks AG - Major Products and Services .............................................................................. 7
4 Security Networks AG - History ................................................................................................................ 10
5 Security Networks AG - Company Statement .......................................................................................... 12
6 Security Networks AG - Locations and Subsidiaries .............................................................................. 14
6.1 Security Networks AG - Head Office ....................................................................................................................... 14
6.2 Security Networks AG - Other Locations and Subsidiaries ..................................................................................... 14
7 Security Networks AG - Business Analysis ............................................................................................. 16
7.1 Security Networks AG - Company Overview .......................................................................................................... 16
7.2 Security Networks AG - Business Description ........................................................................................................ 16
8 Security Networks AG - SWOT Analysis .................................................................................................. 17
8.1 Security Networks AG - SWOT Analysis - Overview .............................................................................................. 17
8.2 Security Networks AG - Strengths .......................................................................................................................... 17
8.2.1 Strength - Strong Liquidity Position .................................................................................................................... 17
8.2.2 Strength - Comprehensive Customer-Oriented Solutions .................................................................................. 17
8.2.3 Strength - Well Established Player ..................................................................................................................... 17
8.3 Security Networks AG - Weaknesses ..................................................................................................................... 18
8.3.1 Weakness - Fall in Efficiency Ratios ................................................................................................................... 18
8.3.2 Weakness - Over Dependence on Government Contracts ................................................................................ 18
8.4 Security Networks AG - Opportunities .................................................................................................................... 18
8.4.1 Opportunity - German Market for IT Security ...................................................................................................... 18
8.4.2 Opportunity - Strategic Collaborations ................................................................................................................ 18
8.4.3 Opportunity - The De-Mail-Law ........................................................................................................................... 18
8.5 Security Networks AG - Threats .............................................................................................................................. 19
8.5.1 Threat - Technological Landscape ..................................................................................................................... 19
8.5.2 Threat - Employee Attrition ................................................................................................................................. 19
9 Security Networks AG - Company Financial Analysis ............................................................................ 20
9.1 Security Networks AG - Five Year Snapshot: Overview of Financial and Operational Performance Indicators .... 20
10 Security Networks AG - Interim ratios ...................................................................................................... 22
10.1.1 Security Networks AG - Financial ratios: Capital Market Ratios .................................................................... 22
10.2 Security Networks AG - Financial Performance and Ratio Charts ......................................................................... 23
10.3 ...................................................................................................................................................................................... 23
10.3.1 Security Networks AG - Revenue and Operating margin ............................................................................... 23
10.3.2 Security Networks AG - Asset and Liabilities ................................................................................................. 24
10.3.3 Security Networks AG - Operational Efficiency .............................................................................................. 25
10.3.4 Security Networks AG - Valuation .................................................................................................................. 26
10.4 Security Networks AG - Key Competitors ............................................................................................................... 27
11 Appendix .................................................................................................................................................... 28
11.1 Methodology ............................................................................................................................................................ 28
11.2 Security Networks AG - Ratio Definitions................................................................................................................ 28
11.3 Disclaimer ................................................................................................................................................................ 33
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List of Tables Table 1: Security Networks AG - Key Employees ..................................................................................................................... 5
Table 2: Security Networks AG - Key Employees Biographies ................................................................................................. 6
Table 3: Security Networks AG - Major Products and Services ................................................................................................ 7
Table 4: Security Networks AG - History ................................................................................................................................. 10
Table 5: Security Networks AG - Subsidiaries ........................................................................................................................ 14
Table 6: Security Networks AG - Locations ............................................................................................................................. 15
Table 7: Security Networks AG - Annual ratios ....................................................................................................................... 20
Table 8: Security Networks AG - Interim ratios ....................................................................................................................... 22
Table 9: Security Networks AG - Capital Market Ratios .......................................................................................................... 22
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List of Figures Figure 1: Security Networks AG - Revenue and Operating Profit ........................................................................................... 23
Figure 2: Security Networks AG - Asset and Liabilities ........................................................................................................... 24
Figure 3: Security Networks AG - Operational Efficiency ........................................................................................................ 25
Figure 4: Security Networks AG - Valuation ............................................................................................................................ 26
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1 Security Networks AG - Key Employees
Table 1: Security Networks AG - Key Employees
Name Job Title Board Level Since Age
Thomas Pleines Director - Finance and Controlling Senior Management 1999
Rainer Baumgart Chairman - Management Board Non Executive Board 2001
Willem Bulthuis Director Non Executive Board 2012
Source: ICD Research
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2 Security Networks AG - Key Employees Biographies
Table 2: Security Networks AG - Key Employees Biographies
Employee Details Biography
Rainer Baumgart
Job Title : Chairman - Management Board
Since : 2001
Mr. Rainer Baumgart has been serving as the chairman of the management board since 2001. He had been associated with Secunet since 1997. He controls the operations of the Public Sector division which holds business units such as, High Security and Government. He also looks over the business development and communication operations of the company. Prior to joining Secunet, he served various reputed IT security companies such as RWTUV AG and TUV Informationstechnik GmbH.
Source: ICD Research
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3 Security Networks AG - Major Products and Services
Secunet AG is a specialist IT security solutions provider. The products and services offered by the company include the following:
Table 3: Security Networks AG - Major Products and Services
Products:
Application Control Unit (ACU)
Common Criteria Consulting
Company Cards
Data Loss Prevention (DLP)
E-Health-Solutions
E-Mail Encryption
eID PKI Suite
eID Test Suite
Electronic Billing
ELSTER
ePassportAPI
Firewalls
Hardware Security Modules (HSM)
Conformity Testing
Identity & Access Management
Information Security Audit
Intrusion Detection System
ISO 27001 Audits and Concepts
Layer 2 Encryption
Log Management
Managed Security Services
Network Access Control (NAC)
Penetration Tests
Public Key Infrastructure (PKI)
secunet biomiddle
secunet GRT platinum edition
secunet KeyCore
secunet konnektor
secunet multisign
secunet snort
Secure Communication Unit (SCU)
Secure Web Solutions
Security Awareness
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Table 3: Security Networks AG - Major Products and Services
Security Concepts
SINA Business
SINA L2 Box
SINA L3 Box
SINA Management
SINA One Way Gateway 2
SINA Thin Client
SINA Virtual Workstation
Single Sign-On
SOA
Virtual Private Networks (VPN)
Web Application Firewall (WAF)
Services:
High Security:
Consulting and Integration
Training
Government:
Secure Web Solutions
Security Validation
Business Security:
E-signatures and B2B Integration
Electronic Billing
Business Partner Integration
E-signature Industry Solutions
Information Security Management (ISO 27001)
Security Analyses:
Technical Security Checks
Social Engineering
Data Loss Prevention (DLP)
Network Security
Network Access Control (NAC)
Log Management
Firewalls
E-mail Encryption
SINA Business
Web Application Firewall
Layer 2 Encryption
Managed Security Services
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Table 3: Security Networks AG - Major Products and Services
Single Sign-on
Identity Management
Public key Infrastructures
Timestamp Services
Hardware Security Modules
Automotive Security:
Function Activation
Flash Data Security
Online Security
Advanced Engineering
Advanced Backend Security
Training
Source: ICD Research
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4 Security Networks AG - History
Table 4: Security Networks AG - History
Year Event type Description
2012
Contracts/Agreements
In February, the company was awarded the contract from the German Federal Police to establish a central certification authority for national border posts.
2012
Contracts/Agreements
In January, the company mediated with Freescale to develop secure solutions for connected cars.
2012
Contracts/Agreements
In February, the company collaborated with LynuxWorks, Inc., to provide SINA Multilevel workstation on LynxSecure separation kernel and hypervisor version.
2012
Contracts/Agreements
In January, the company provided the Prague Ruzyne Airport with EasyGo system, a security solution by acting as a sub contractor to VITKOVICE IT Solutions.
2012
Contracts/Agreements
In February, the company entered into a partnership agreement with Dell. Under the terms of the agreement, Dell will provide its Latitude notebooks as a hardware platform for SINA technology.
2011
Corporate Changes/Expansions
In July, the company relocated its training facility from Munich to Dresden.
2011
Contracts/Agreements
In June, Secunet AG entered into a partnership with National ICT Australia Ltd (NICTA) to develop high-security IT products for the defence and government sectors.
2011
Contracts/Agreements
In August, the company entered into a technology partnership with Elektrobit Automotive GmbH to develop a system to protect communication of control units in onboard vehicle networks.
2011
Others
In July, the company was certified by the German Federal Office for Security for Information Security (BSI) as an IT service provider for German federal authorities.
2011
Contracts/Agreements
In April, the company was commissioned by the German Federal Office for Information Security for extending its control infrastructure services for electronic identity documents.
2010
Plans/Strategy
In December, secunet announced its plans to liquidate its subsidiaries by the year end of 2011 and operate abroad through its local partners.
2008
Contracts/Agreements
secunet signed a contract with German armed forces, to supply several hundred SINA virtual workstations and SINA boxes as the subcontractor to EADS Deutschland GmbH.
2008
Contracts/Agreements
secunet signed a contract with authorities in Germany for the delivery of products and services within the scope of a network infrastructure.
2005
Contracts/Agreements
secunet signed a partnership agreement with Giesecke & Devrient and Valimo Wireless, which contributes its own technology and services.
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Table 4: Security Networks AG - History
Year Event type Description
2005
Contracts/Agreements
secunet signed a distribution agreement for AirLock, a solution for portal security, with Seclutions AG.
2005
Acquisitions/Mergers/Takeovers
secunet acquired SECARTIS AG in April.
2004
Ownership Changes
Giesecke & Devrient becomes major shareholder of the secunet.
2000
Commercial Operation
secunet Started Secure Inter-Network Architecture (SINA) development on behalf of German BSI.
2000
New Products/Services
secunet introduced innovative biometrics in identity documents.
2000
Corporate Changes/Expansions
secunet expanded its business from consulting expertise to vendoring products.
1996
Incorporation/Establishment
The company was established as secunet Security Networks AG.
Source: ICD Research
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5 Security Networks AG - Company Statement A statement by Mr. Rainer Baumgart, the chairman of secunet Security Networks AG is given below. The following statement has been taken from the company’s 2011 annual report. We completed the 2011 financial year with predominantly satisfactory business figures. Demand in the consulting sector was high and our capacity was fully utilised from the middle of the year. However, due to ongoing restructuring at the German Armed Forces – our main customer – and as a result of the postponement of projects for national and international customers, the procurement transactions for hardware and licenses in the past year were significantly lower than we expected. We were therefore unable to match the previous year’s sales result. Business with major projects is volatile, which makes fluctuations in sales unavoidable. We are pleased that this did not affect the result: We continuously work towards optimising our cost structures. Consequently, the costs of the secunet Group in the 2011 financial year showed an overall sharper decrease than the decrease in sales. This resulted in an increase in earnings before interest and taxes (EBIT) from Euro 3.6m in the previous year to Euro 3.8m (+6%). Due to positive tax effects, the profit for the period even increased by around 49% from Euro 1.8m to Euro 2.7m. 2011 was a successful year for sales and marketing. At the end of 2010, the order book of the secunet Group was worth Euro 26.2m. Its value on the same reporting date of the 2011 financial year was Euro 39.5m. This highly pleasing development is down to successful sales and marketing activities. For example, we were able to acquire very promising orders in the Mobile Security business unit (Business Security) and in international business (High Security). At the same time, we were awarded several larger projects for which we had submitted tenders simultaneously. In this respect, there are also extremely positive aspects to the volatile nature of project business. secunet has now been successfully active in the area of IT security and high security for 15 years. Diverse projects in national and international contexts for authorities, international organisations and companies, the recognised specialist skills of our employees and our SINA product range with its comprehensive accreditations are just a few aspects that document our outstanding expertise. This results in our good market position: when there is a need for the implementation of modern infrastructures with a demand for IT security or for the design, implementation and commissioning of security architectures, secunet is the sought-after partner for successful project handling. Our market is developing in unison with the IT market. IT security is driven, in particular, by future topics relating to intelligent networks (SmartGrids, SmartMetering and the Internet of Things) or cloud computing. The latter and similar technologies have the potential to bring about significant changes in the IT landscape: these technologies will only be successful if they are equipped with IT security systems that guarantee high availability and confidentiality. The fact that Web attacks are becoming more complex by the day also has a positive effect on our business: cyber war, warfare, crime and terrorism are on the rise, generating a demand for increasingly high-quality defence strategies. secunet offers tailor-made solutions to such problems and is involved in the design of trendsetting infrastructures with the development of further, high-quality technologies for future requirements. Financial year 2012 is set to be year of growth for secunet. The high number of orders at the end of the previous year is a good basis for an increase in revenue. In addition to this, we continue to boast good sales and marketing opportunities: we will position our excellent, modern products such as the SINA Workstation and the SINA Core encryption component more strongly on national and international markets. An increasing number of products based on “secure web”, Public Key Infrastructures (PKI) and biometric solutions will be implemented in more and more projects. We will strengthen our position in the area of (secure) mobile solutions. To achieve this, we will continue to build on our product and project expertise. In the products arena, separation and the us e of cryptography are the basis for the solutions of the future – and secunet is a proven specialist in this area. We will use prudent personnel development in the corresponding areas to further optimise our project expertise. Based on a strong foundation in national government and high security business, we want to achieve further growth in international and industry business.
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Our strategy is supported by four pillars: • Customer loyalty: IT security is a concentrated market on both the supply and demand side. That is why strategic partnerships with our customers are an important cornerstone for our business success. • Internationalisation: although the German market secures our basic business volume, it is limited in the medium term. This makes a stronger international alignment essential for further growth. • Technology leadership: with our SINA product family, we are the leaders in highly secure, mobile encryption systems. We will continue to do our utmost to retain this position and expand internationally. • Profitability: our objective is long-term growth. Nevertheless, the profitability of our business will always remain a requirement. At the start of 2012 and at the time of compiling this Annual Report, the economic situation, the market conditions in the IT sector, the high number of orders we have already received and foreseeable procurements to be made by our customers over the coming months give us grounds for an optimistic outlook for business performance in 2012. If these general conditions continue to apply, we expect to see significant growth. The Management Board of secunet Security Networks AG forecasts revenue of around Euro 60m and earnings before interest and taxes of over Euro 5m for the coming year.
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6 Security Networks AG - Locations and Subsidiaries
6.1 Security Networks AG - Head Office
Security Networks AG
Kronprinzenstrasse 30
Essen
Nordrhein-Westfalen
Zip: 45128
Germany
Tel: + 49 201 54540
Fax: + 49 201 54541000
6.2 Security Networks AG - Other Locations and Subsidiaries
Table 5: Security Networks AG - Subsidiaries
secunet SwissIT AG
Switzerland
SECUNET s.r.o.
Prague
Czech Republic
Secunet Inc.
Austin
United States of America
Source: ICD Research
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Table 6: Security Networks AG - Locations
Security Networks AG
Alt-Moabit 91 c
Berlin
Germany
Tel: + 49 201 5454130
Fax: +49 201 54541321
Zip: 10559
Security Networks AG
Project Office Bonn
Godesberger Allee 127
Bonn
Germany
Tel: + 49 201 54540
Zip: 53175
Security Networks AG
Konrad-Zuse-Platz 2 – 3
Munich
Germany
Tel: + 49 201 54541307
Fax: +49 201 54541327
Zip: 81829
Security Networks AG
Konrad-Zuse-Platz 2 – 3
Munich
Germany
Tel: + 49 201 54541308
Fax: +49 201 54541328
Zip: 81829
Security Networks AG
Ammonstrasse 74
Dresden
Germany
Tel: + 49 201 5454130
Fax: +49 201 54541323
Zip: 01067
Security Networks AG
Weidenauer Strasse 223 – 225
Siegen
Germany
Tel: + 49 201 54541309
Fax: +49 201 54541329
Zip: 57076
Security Networks AG
Mergenthalerallee 77
Eschborn
Germany
Tel: + 49 201 54541305
Fax: +49 201 54541325
Zip: 65760
Security Networks AG
Osterbekstrasse 90 b
Hamburg
Germany
Tel: + 49 201 54541306
Fax: +49 201 54541326
Zip: 22083
Source: ICD Research
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7 Security Networks AG - Business Analysis
7.1 Security Networks AG - Company Overview
secunet Security Networks AG (Secunet AG) is a provider of information technology (IT) security systems. The company provides holistic IT security solutions which include consulting, concept design, development, implementation and support services. It classifies its business into four divisions, namely, Automotive Security, Business Security; Government and High Security. Secunet AG offers its products and services to diverse markets such as federal authorities, federal states and municipalities, financial services and insurances; defense, telecommunication and media, E-Health, industrial, traffic & logistics, security organizations, energy, trade, and automobile. The company operates as a subsidiary of the Giesecke & Devrient Holding GmbH. It owns and operates three subsidiaries, namely, secunet SwissIT AG in Switzerland; SECUNET s.r.o. in the Czech Republic; and Secunet Inc., in the US. Secunet AG is headquartered in Essen, Germany.
7.2 Security Networks AG - Business Description
secunet Security Networks AG (Secunet AG) is a service provider of information technology (IT) security systems. The company operates six locations within Germany, namely, Berlin, Dresden, Eschborn, Hamburg, Munich and Siegen. It operates as a subsidiary of Giesecke & Devrient Holding GmbH, which engages in printing banknotes and securities, besides production of security paper and currency automation equipment. Secunet AG offerings are classified into four reportable segments, namely, High Security, Government, Business Security, and Other. In the High Security business segment, the company's key offering is the Secure Inter-Network Architecture (SINA) with core competence being crypto-technology. The products offered by the company under SINA product line include SINA L3 Box, SINA L2 Box, SINA One Way, SINA Terminal, SINA Workstation and SINA Management. The SINA products have been approved by the German Federal Office for Information Security and find application in Government offices that handle confidential data. Besides, the segment also offers secunet wall, secunet snort, consulting and integration services. For the fiscal year ended December 2011, the High Security business segment reported revenue of €29.77m, reflecting a decrease of 12.35% over that in 2010. The segment contributed 53.4% to the company’s total revenue in 2011. Through the Government segment, the company supports authorities in all areas related to e-Government and IT security services. It handles all consulting services and products for the public sector customers such as secure web solutions, security validation and electronic healthcare card (eHealth). These services include biometric solutions and electronic ID documents. The company also plans and implements security infrastructures such as virtual mail rooms, electronic signatures for secure communication. For the fiscal year ended December 2011, the Government segment reported revenue of €17.42m, indicating an increase of 9.10% over the previous year. The segment contributed 31.3% to the company’s total revenue in 2011. The company's Business Security segment offers IT security solutions for private companies. The product line offered by this segment includes identity management systems, and qualified mass signature solutions. The company also offers various services such as E-signatures and B2B integrations, electronic billings, business partner integrations, technical security checks, network security, firewall, time-stamp services, public key infrastructures and hardware security modules. For the fiscal year ended December 2011, the Business Security segment reported revenue of €6.92m, reflecting a decrease of 6.42% over that in 2010. The segment contributed 12.4% to the company’s total revenue in 2011. The Other segment of the company primarily provides Automotive security solutions. It offers various services to Automotive OEMs to secure the use of software in vehicles. Secunet AG provides a wide range security services such as function activation services, flash data securities, online securities, advanced engineering and back-end security services. For the fiscal year ended December 2011, the Other segment of the company reported revenue of €1.60m, reflecting a decrease of 11.81% over that in 2010. The segment contributed 2.9% of the company’s total revenue in 2011. Secunet owns and operates three wholly owned subsidiaries, namely, secunet SwissIT AG, Switzerland , Secunet Inc., and SECUNET s.r.o., the Czech Republic. The company’s customer base includes federal authorities, federal states and municipalities, financial services and insurances, defense, telecommunication and media, e-health, industrial, traffic and logistics, security organizations, energy, trade, and automobile industry. A few major customers of the company include, German Foreign Office, Federal Ministry of Defense, Regional Tax Authority of Bavaria, Howaldtswerke Deutsche Werft GmbH, mobile.de, BMW, National-Bank and Stadtwerke Munchen. In May 2012, the company announced about its security solutions being preferred by the Latvian Ministry. The company will act as a subcontractor to Lattelecom, a Riga-based technology company, to provide software for the new Latvian passport and migration information system.
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8 Security Networks AG - SWOT Analysis
8.1 Security Networks AG - SWOT Analysis - Overview
secunet Security Networks AG (Secunet AG) is a specialist in providing sophisticated IT security solutions. It conducts business through four reportable segments, namely, High Security, Government, Business Security, and Other. The company takes advantage of its leading market position in Germany and Europe. Secunet AG capitalizes on its wide offerings to cater to diverse customer base. However, changing technology, growing competition and reliance on the government for majority of the revenue generation could affect the company’s profitability.
8.2 Security Networks AG - Strengths
8.2.1 Strength - Strong Liquidity Position
Strong liquidity helps the company in meeting its working capital requirements effectively. Secunet AG reported an increase in all its liquidity ratios in 2011. During the fiscal year ended December 2011, the company reported current ratio of 2.48 times as against 2.37 times in 2010, quick ratio of 2.35 times as against 2.32 times, and cash ratio of 1.01 times in 2011 as against 0.95 times in 2010. Growth in current ratio indicates that the company is in a strong position to meet its short-term obligations. Secunet AG also reported an increase in its cash and cash equivalents in fiscal year 2011. The company had €17.64m in cash and cash equivalents as of December 2011, as compared to cash and cash equivalents of €14.34m in 2010, reflecting an increase of 23%. The rise in cash reserves was principally due to strong cash flows from operating activities. Increasing cash reserves indicate the company’s ability to obtain additional debt to finance acquisitions, capture business opportunities and meet capital expenditure or other capital requirements in the future.
8.2.2 Strength - Comprehensive Customer-Oriented Solutions
Secunet AG provides a comprehensive range of sophisticated IT security solutions to its clients in multiple industries. The company’s business security solutions include E-Signature and B2B Integration, information security management, security analysis, data loss prevention, network security, security analysis, and single sign-on, among others. Its Government and High Security solutions include eGoverment, Biometrics and eIDs, public health, secure web solutions, security validation, high security, SINA, secunet wall, secunet snort, and consulting and integration. Secunet AG’s automotive security solutions include function enabling, flashware protection, online security, advanced engineering, and advanced backend security. These solutions enable the company to serve diverse entities and markets such as federal authorities, federal states and municipalities, defense, security organizations, e-health, energy, financial services and insurances, telecommunication and media, trade, industrial sector, automobile industry, and traffic and logistics. Such offerings make Secunet AG a one-stop platform for advanced IT security solutions, which helps in retaining a loyal customer base.
8.2.3 Strength - Well Established Player
Business competency in terms of market leadership would drive the company’s growth by providing it a competitive advantage. Secunet AG is a leading provider of advanced IT security solutions in Germany built on its experience and expertise over the years. It has been the security partner of the Federal republic of Germany since 2004. The company collaborates with German Federal Office for Information Security (BSI) and the German Federal Ministry of the Interior (BMI). It also has relations with several vendors/manufacturers as well as institutes for its research and development. Secunet AG has established technology partnerships with Giesecke & Devrient, AT Media, ASTARO, Secusmart and Fox IT. Secunet AG relishes several references from the public sector including federal and state ministries, large corporations and medium-scale businesses. A few of the company’s key references include Beiersdorf AG for Proband administration, guidance and information system; BSI for border control, SINA, and virtual post office; Eurocontrol for Feasibility study on ERRIDS with SINA; European Union for secunet biomiddle for visa in the EU as well as SINA for secure networks; and Austrian State Printing House OeSD, among several others. Secunet AG’s strong foothold in the domestic market enhances its brand image and helps in securing major contracts.
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8.3 Security Networks AG - Weaknesses
8.3.1 Weakness - Fall in Efficiency Ratios
Secunet AG reported a fall in its efficiency ratios, which assumes significance as these are used to analyze the uses of assets and liabilities by the company internally. The company recorded a decline in asset turnover to 1.2 in 2011 from 1.4 in 2009, followed by the fixed asset turnover to 34.48 in 2011 from 36.89 in 2010, current asset turnover to 1.39 in 2011 from 1.65 in 2010, capital employed turnover to 2 in 2011 from 2.38 in 2010, and working capital turnover to 2.33 in 2011 from 2.86 in 2010. Despite strong liquidity position, the company’s efficiency ratios declined. The decline in the ratios clearly indicates that Secunet AG has not made effective use of its assets and liabilities towards maximizing its bottom line and shareholders wealth.
8.3.2 Weakness - Over Dependence on Government Contracts
Secunet AG’s revenue growth could be affected due to its over reliance on government contracts. In the fiscal year ended December 2011, the company generated about 85% of its total revenue from public sector customers as against 82% from the previous year. For the fiscal year ended 2011, the company’s revenue declined to €55.6m from €59.5m in 2010. The major factor that resulted in the decline is the postponement of large-scale projects for international consumers, and low purchases from the German army due to its restructuring measures. This indicates that Secunet AG is heavily dependent on the government for its revenue generation. Failure to develop effective business mix would affect the company’s leading market position.
8.4 Security Networks AG - Opportunities
8.4.1 Opportunity - German Market for IT Security
Secunet AG could customize and promote its offerings as a clever wheeze is required to counter the serious industrial and commercial espionage issues in Germany. The probability of a company becoming the target of espionage is observed to be high in Germany. The key motive of Industrial spies around the world is to pace up with the successful industrial nations such as Germany devoid of expensive research and time. According to Europol, an attack is launched for every two seconds via the internet in Germany. This phenomenon is due to the presence of several high tech corporations in the country and their potential to innovate. The country’s vital role in the EU and NATO coupled with geopolitical situation make it even more prone to such attacks. The growing awareness that companies have to protect their know-how from foreign intelligence services would drive the demand for IT security solutions in Germany. The German Market for IT Security is valued at €3 billion in 2010 and is expected to grow to €3.7 billion in 2012. Being a premium IT security solutions provider in Germany, Secunet AG could exploit growth opportunities in the industry.
8.4.2 Opportunity - Strategic Collaborations
Secunet AG continues to relish strong growth through its collaborations with various industry players. In February 2012, the company signed an agreement with LynuxWorks, Inc. to develop, sell and market their combined SINA Multilevel Workstation, which offers high security for multi-level systems. Secunet AG also signed an agreement with Dell, under the terms of which the company’s SINA Workstation security solution will feature on Dell's Latitude range of notebooks in the future. In June 2011, the company entered into an agreement with National ICT Australia Ltd (NICTA) to develop high- security IT products for the defence and government sectors. These sectors need strong evidence of accuracy and security of their IT products. There has been a significant demand for secure computing systems, which can maintain data strictly separated to avoid unauthorized information crossover between various domains. The component-based design would enable rigorous demonstration of essential security properties and meet the requirement of defence and government sectors.
8.4.3 Opportunity - The De-Mail-Law
The emergence of the ‘De-Mail Law’ in Germany would drive the demand for the company’s services. De-Mail is an e- Government communications service of Germany that assists the exchange of legal electronic documents via Internet. There are certain requirements to be met in advance for the establishment of trust in the security of De-Mail services. The De-Mail Law, which is effective from 3rd May 2011, is a form of legal basis for a legally compliant e-mail. For accreditation as a ‘De-Mail provider’, interested businesses will have to apply to the Federal Office for Information Security (BSI) for adherence to data protection requirements. Secunet AG supports interested potential De-Mail providers in meeting the prerequisites. Its offers a wide range of advisory services ranging from basic design and formulation for the certification process to software development. The company also integrates proprietary ‘connector, which uses chip card-based authentication to facilitate easy and highly secure connection.
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8.5 Security Networks AG - Threats
8.5.1 Threat - Technological Landscape
Secunet AG’s success depends on its ability to adapt itself to the rapid changes in technology. The company operates in the IT security market, which experiences rapid and significant changes due to the introduction of innovative technologies. The company could face serious challenges from its competitors that develop advanced technologies. Secunet AG must continuously design new, and update existing products and services and invest in and develop new technologies in order to meet needs and requirements of its customers. Any difficulties in adopting changes could delay or prevent the successful design, development, testing, introduction or marketing of its products. The company further enhances its technological expertise by expanding its research and development (R&D) activities in collaboration with various institutes. But it has to revise these technologies with time, which requires a significant commitment towards R&D, which in return requires considerable financial resources. Upon investing in these new technologies, Secunet AG’s sales and profits could suffer if they are not accepted in the marketplace as anticipated.
8.5.2 Threat - Employee Attrition
In the IT services industry, success of any company depends heavily on the quality of management of intellectual properties and quality professionals. Secunet AG, being an IT security service provider company depends heavily on its skilled personnel and management team. However, quick attrition level or failure to retain the qualified professionals would affect its operations and the performance. Its ability to execute project engagements and to obtain new clients depends in large part on its ability to attract, train, motivate and retain highly skilled professionals, especially project managers, software engineers and other senior technical personnel. Failure to hire and retain additional qualified personnel could impair its ability to b id on and obtain new projects. Secunet AG should be very choosy, while selecting new qualified personnel and retaining key personnel to walk into future. Continued employee attrition rates in the IT services business would affect the company’s profitable growth.
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9 Security Networks AG - Company Financial Analysis
9.1 Security Networks AG - Five Year Snapshot: Overview of Financial and Operational Performance Indicators
The company reported revenue of US$121 million during the fiscal year 2015 (2015). The company's revenue grew at a CAGR of 11.95% during 2011–2015, with an annual growth of 11.29% over 2014. During 2015, operating margin of the company was 9.40% in comparison with operating margin of 7.97% in 2014. In 2015, the company recorded a net profit margin of 6.70% compared to a net profit margin of 5.31% in 2014.
Table 7: Security Networks AG - Annual ratios
Key Ratios Unit/Currency 2015 2014 2013 2012 2011
Equity Ratios
EPS (Earnings per Share) EUR 0.94 0.68 0.37 0.57 0.42
Dividend per Share EUR 0.34 0.27 0.15
Dividend Cover Absolute 2.77 2.5 2.45
Book Value per Share EUR 6.22 5.51 5.11 4.7 4.27
Cash Value per Share EUR 5.87 5.77 4.52 2.73
Profitability Ratios
Gross Margin % 25.02 23.66 24.15 21.89 22.41
Operating Margin % 9.4 7.97 5.73 8.46 6.95
Net Profit Margin % 6.7 5.31 3.72 5.48 4.86
Profit Markup % 33.37 30.99 31.84 28.03 28.88
PBT Margin (Profit Before Tax) % 9.49 7.95 5.58 8.38 6.98
Return on Equity % 15.15 12.25 7.18 12.13 9.79
Return on Capital Employed % 18.77 15.95 9.85 16.34 12.79
Return on Assets % 7.91 6.37 4.14 6.64 5.84
Return on Fixed Assets % 87.76 74.55 44.45 71.06 60.85
Return on Working Capital % 23.88 20.3 12.65 21.23 16.2
Growth Ratios
Sales Growth % 10.8 28.69 -4.99 20.96 -6.54
Operating Income Growth % 30.7 79.06 -35.66 47.21 8.2
EBITDA Growth % 32.19 83.47 -36.8 45.21 6.06
Net Income Growth % 39.61 83.87 -35.57 36.35 48.76
EPS Growth % 39.35 85.27 -35.57 36.35 48.76
Working Capital Growth % 11.07 11.6 7.97 12.32 14.7
Cost Ratios
Operating Costs (% of Sales) % 90.6 92.03 94.27 91.54 93.05
Administration Costs (% of Sales) % 15.61 15.58 18.41 13.41 15.45
Liquidity Ratios
Current Ratio Absolute 2.14 2.17 2.43 2.29 2.49
Quick Ratio Absolute 1.77 2 2.25 2.18 2.35
Cash Ratio Absolute 1.22 1.36 1.47 1.22 1.15
Leverage Ratios
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Table 7: Security Networks AG - Annual ratios
Key Ratios Unit/Currency 2015 2014 2013 2012 2011
Net Debt to Equity Absolute -0.94 -1.05 -0.88 0.79 -0.64
Efficiency Ratios
Asset Turnover Absolute 1.18 1.2 1.11 1.21 1.2
Fixed Asset Turnover Absolute 38.97 43.89 34.34 38.58 34.49
Inventory Turnover Absolute 5.88 12.94 13.33 22.5 20.2
Current Asset Turnover Absolute 1.35 1.38 1.3 1.41 1.39
Capital Employed Turnover Absolute 2.26 2.31 1.93 2.21 2.01
Working Capital Turnover Absolute 2.54 2.55 2.21 2.51 2.33
Revenue per Employee EUR 232977
Net Income per Employee EUR 15598
Capex to Sales % 1.99 1.37 1.96 1.72 1.61
R&D to Sales % 0.11 0.01
Source: ICD Research
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10 Security Networks AG - Interim ratios
Table 8: Security Networks AG - Interim ratios
Key Ratios Unit/Currency Jun-2016 Dec-2015 Sep-2015 Jun-2015
Equity Ratios
Interim EPS (Earnings per Share) EUR 0.23 0.66 0.21 0.11
Book Value per Share EUR 5.99 6.22 5.52 5.32
Profitability Ratios
Gross Margin % 23.87 32.95 21.51 23.79
Operating Margin % 5.49 20 8.15 4.88
Net Profit Margin % 3.47 13.56 5.53 4.02
Profit Markup % 31.35 49.15 27.41 31.22
PBT Margin (Profit Before Tax) % 5.31 19.86 8.29 5.16
Cost Ratios
Operating Costs (% of Sales) % 94.51 80 91.85 95.12
Administration Costs (% of Sales) % 18.42 12.91 13.33 19.02
Liquidity Ratios
Current Ratio Absolute 2.46 2.14 2.29 2.85
Quick Ratio Absolute 1.98 1.77 1.89 2.52
Leverage Ratios
Net Debt to Equity Absolute -0.57 -0.94 -0.66 -0.68
Source: ICD Research
10.1.1 Security Networks AG - Financial ratios: Capital Market Ratios
Table 9: Security Networks AG - Capital Market Ratios
Key Ratios Value
P/E (Price/Earnings) Ratio 38.19
EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization) 24.41
Enterprise Value/Sales 2.32
Enterprise Value/Operating Profit 24.63
Enterprise Value/Total Assets 2.74
Dividend Yield 0.01
Note: Above ratios are based on share price as of 13-Sep-2016. The above ratios are absolute numbers.
Source: ICD Research
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10.2 Security Networks AG - Financial Performance and Ratio Charts
10.3
10.3.1 Security Networks AG - Revenue and Operating margin
The consolidated group revenue of the company for 2015 stood at US$121 million, which corresponds to a growth rate of 11.29% over the previous year. The operating margin of the company was 9.40% in 2015, an increase of 143.00 basis points over the previous year.
Figure 1: Security Networks AG - Revenue and Operating Profit
Source: ICD Research
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10.3.2 Security Networks AG - Asset and Liabilities
The company's assets grew 12.92% over the previous year to US$103 million in 2015. The company's liabilities grew 12.48% over the previous year to US$49 million in 2015. The company's asset to liability ratio improved from 2.08 in 2014 to 2.09 in 2015.
Figure 2: Security Networks AG - Asset and Liabilities
Source: ICD Research
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10.3.3 Security Networks AG - Operational Efficiency
The company's working capital turnover for 2015 declined to 2.54, from the previous year's working capital turnover of 2.55. In 2015, the company's asset turnover declined to 1.18 from the previous year's asset turnover of 1.20.
Figure 3: Security Networks AG - Operational Efficiency
Source: ICD Research
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10.3.4 Security Networks AG - Valuation
As of 13-Sep-2016, the company recorded an EV/EBIT of 24.63, EV/Total Assets of 2.74 and EV/Sales of 2.32.
Figure 4: Security Networks AG - Valuation
Source: ICD Research
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10.4 Security Networks AG - Key Competitors
The following companies are the major competitors of Security Networks AG: RWTUV AG
Rola Security Solutions GmbH
TUV Informationstechnik GmbH.
Syscore GmbH
genua gmbh
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11 Appendix
11.1 Methodology
Progressive Digital Media company reports are based on a core set of research techniques which ensure the best possible
level of quality and accuracy of data. The key sources used include:
Company Websites
Company Annual Reports
SEC Filings
Press Releases
Proprietary Databases
Notes
Financial information of the company is taken from the most recently published annual reports or SEC filings
The financial and operational data reported for the company is as per the industry defined standards
Revenue converted to US$ at average annual conversion rate as of fiscal year end
11.2 Security Networks AG - Ratio Definitions
Capital Market Ratios
Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock.
Price/Earnings Ratio (P/E)
Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income earned per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of income, so the stock is more expensive compared to one with lower P/E ratio. A high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. Price per share is as of previous business close, and EPS is from latest annual report.
Formula: Price per Share / Earnings per Share
Enterprise Value/Earnings before Interest, Tax, Depreciation & Amortization (EV/EBITDA)
Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is unaffected by a company's capital structure. It compares the value of a business, free of debt, to earnings before interest. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income + Interest + Tax + Depreciation + Amortization)
Enterprise Value/Sales
Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the company's sales. EV/Sales is seen as more accurate than Price/Sales because market capitalization does not take into account the amount of debt a company has, which needs to be paid back at some point. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales
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Enterprise Value/Operating Profit
Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating Income
Enterprise Value/Total Assets
Enterprise Value/Total Assets measures the company's enterprise value to the total assets. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets
Dividend Yield
Dividend Yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock.
Formula: Annual Dividend per Share / Price per Share
Equity Ratios
These ratios are based on per share value.
Earnings per Share (EPS)
Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability.
Formula: Net Income / Weighted Average Shares
Dividend per Share
Dividend is the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
Dividend Cover
Dividend cover is the ratio of company's earnings (net income) over the dividend paid to shareholders.
Formula: Earnings per share / Dividend per share
Book Value per Share
Book Value per Share measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly.
Formula: (Shareholders Equity - Preferred Equity) / Outstanding Shares
Cash Value per Share
Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance sheet) that is determined by dividing cash & equivalents by the total shares outstanding.
Formula: Cash & equivalents / Outstanding Shares
Profitability Ratios
Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated or resources used. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well.
Gross Margin
Gross margin is the amount of contribution to the business enterprise, after paying for direct-fixed and direct variable unit costs.
Formula: {(Revenue-Cost of revenue) / Revenue}*100
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Operating Margin
Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency.
Formula: (Operating Income / Revenues) *100
Net Profit Margin
Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that shows how much of each dollar earned by the company is translated into profits.
Formula: (Net Profit / Revenues) *100
Profit Markup
Profit Markup measures the company's gross profitability, as compared to the cost of revenue.
Formula: Gross Income / Cost of Revenue
PBIT Margin (Profit Before Interest & Tax)
Profit Before Interest & Tax Margin shows the profitability of the company before interest expense & taxation.
Formula: {(Net Profit + Interest + Tax) / Revenue} *100
PBT Margin (Profit Before Tax)
Profit Before Tax Margin measures the pre-tax income over revenues.
Formula: {Income Before Tax / Revenues} *100
Return on Equity
Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners.
Formula: (Net Income / Shareholders Equity)*100
Return on Capital Employed
Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders' earnings.
Formula: EBIT / (Total Assets – Current Liabilities)*100
Return on Assets
Return on Assets is an indicator of how profitable a company is relative to its total assets, the ratio measures how efficient management is at using its assets to generate earnings.
Formula: (Net Income / Total Assets)*100
Return on Fixed Assets
Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant & equipment).
Formula: (Net Income / Fixed Assets) *100
Return on Working Capital
Return on Working Capital measures the company's profitability to its working capital.
Formula: (Net Income / Working Capital) *100
Cost Ratios
Cost ratios help to understand the costs the company is incurring as a percentage of sales.
Operating costs (% of Sales)
Operating costs as percentage of total revenues measures the operating costs that a company incurs compared to the revenues.
Formula: (Operating Expenses / Revenues) *100
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Administration costs (% of Sales)
Administration costs as percentage of total revenue measures the selling, general and administrative expenses that a company incurs compared to the revenues.
Formula: (Administrative Expenses / Revenues) *100
Interest costs (% of Sales)
Interest costs as percentage of total revenues measures the interest expense that a company incurs compared to the revenues.
Formula: (Interest Expenses / Revenues) *100
Leverage Ratios
Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses.
Debt to Equity Ratio
Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also depends on the industry in which the company operates. For example, capital-intensive industries tend to have a higher debt equity ratio.
Formula: Total Liabilities / Shareholders Equity
Debt to Capital Ratio
Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its operations, along with some insight into its financial strength. The higher the debt-to- capital ratio, the more debt the company has compared to its equity. This indicates to investors whether a company is more prone to using debt financing or equity financing. A company with high debt-to-capital ratios, compared to a general or industry average, may show weak financial strength because the cost of these debts may weigh on the company and increase its default risk.
Formula: {Total Debt / (Total assets - Current Liabilities)}
Interest Coverage Ratio
Interest Coverage Ratio is used to determine how easily a company can pay interest on outstanding debt, calculated as earnings before interest & tax by interest expense.
Formula: EBIT / Interest Expense
Liquidity Ratios
Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. A company's ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.
Current Ratio
Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point.
Formula: Current Assets / Current Liabilities
Quick Ratio
Quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.
Formula: (Current Assets - Inventories) / Current Liabilities
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Cash Ratio
Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only looks at the most liquid short-term assets of the company, which are those that can be most easily used to pay off current obligations. It also ignores inventory and receivables, as there are no assurances that these two accounts can be converted to cash in a timely matter to meet current liabilities.
Formula: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Efficiency Ratios
Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its use of resources.
Fixed Asset Turnover
Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate sales. A higher ratio indicates the business has less money tied up in fixed assets for each currency unit of sales revenue. A declining ratio may indicate that the business is over-invested in plant, equipment, or other fixed assets.
Formula: Net Sales / Fixed Assets
Asset Turnover
Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales revenue to the company. A higher asset turnover ratio shows that the company has been more effective in using its assets to generate revenues.
Formula: Net Sales / Total Assets
Current Asset Turnover
Current Asset Turnover indicates how efficiently the business uses its current assets to generate sales.
Formula: Net Sales / Current Assets
Inventory Turnover
Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales or ineffective buying.
Formula: Cost of Goods Sold / Inventory
Working Capital Turnover
Working Capital Turnover is a measurement to compare the depletion of working capital to the generation of sales. This provides some useful information as to how effectively a company is using its working capital to generate sales.
Formula: Net Sales / Working Capital
Capital Employed Turnover
Capital employed turnover ratio measures the efficiency of a company's use of its equity in generating sales revenue to the company.
Formula: Net Sales / Shareholders Equity
Capex to sales
Capex to Sales ratio measures the company's expenditure (investments) on fixed and related assets' effectiveness when compared to the sales generated.
Formula: (Capital Expenditure / Sales) *100
Net income per Employee
Net income per Employee looks at a company's net income in relation to the number of employees they have. Ideally, a company wants a higher profit per employee possible, as it denotes higher productivity.
Formula: Net Income / No. of Employees
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Revenue per Employee
Revenue per Employee measures the average revenue generated per employee of a company. This ratio is most useful when compared against other companies in the same industry. Generally, a company seeks the highest revenue per employee.
Formula: Revenue / No. of Employees
Efficiency Ratio
Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is losing a larger percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for the bank and its shareholders.
Formula: Non-interest expense / Total Interest Income
Source : ICD Research
11.3 Disclaimer
All Rights Reserved
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Progressive
Digital Media.
The data and analysis within this report is driven by Progressive Digital Media from its own primary and secondary research
of public and proprietary sources and does not necessarily represent the views of the company profiled.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the
findings, conclusions and recommendations that Progressive Digital Media delivers will be based on information gathered in
good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such
Progressive Digital Media can accept no liability whatever for actions taken based on any information that may subsequently
prove to be incorrect.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
