RTX annual report 2010/11 1 CONTENTS DEAR SHAREHOLDER SUMMARY FINANCIAL HIGHLIGHTS PRIMARY ACTIVITY ACTIVITIES AND FINANCES UNCERTAINTY INTELLECTUAL CAPITAL CSR RESEARCH AND DEVELOPMENT PROSPECTS CORPORATE GOVERNANCE SUPERVISORY BOARD EXECUTIVE BOARD COMPANY SHAREHOLDER INFORMATION REPORTING PROCESS AND INTERNAL CONTROLS STATEMENTS FINANCIAL STATEMENTS AdDRESSES TECHNICAL TERMS ANNUAL REPORT 2010/11 2 RTX annual report 2010/11 2 RTX annual report 2010/11 CONTENTS DEAR SHAREHOLDER SUMMARY FINANCIAL HIGHLIGHTS PRIMARY ACTIVITY ACTIVITIES AND FINANCES UNCERTAINTY INTELLECTUAL CAPITAL CSR RESEARCH AND DEVELOPMENT PROSPECTS CORPORATE GOVERNANCE SUPERVISORY BOARD EXECUTIVE BOARD COMPANY SHAREHOLDER INFORMATION REPORTING PROCESS AND INTERNAL CONTROLS STATEMENTS FINANCIAL STATEMENTS AdDRESSES TECHNICAL TERMS CONTENTS MANAGEment’s review 4 DEAR SHAREHOLDER 6 SUMMARY FOR THE YEAR 8 finanCial highlights foR The gRoup 9 PRiMaRY aCTiViTY SAN JOSÉ 11 RTX TeChnologY 14 RTX pRoducts 17 RTX NETWORK systEms 19 DEVELOPMenT in aCTiViTieS and finanCeS 22 UNCeRTainTY RELATing To ReCOGNITion and MeaSuReMenT 24 INTelleCTUAL CapiTal ReSOURCeS 26 CoRPORaTe SoCial ReSPONSiBiliTY (CSR) 27 ReSeaRCh and deVELOPMenT aCTiViTieS 28 PRoSpeCTS FOR The finanCial YeaR 2011/12 29 CoRPORaTe GOVeRnanCe 30 SupeRViSoRY BOARd 31 EXeCuTiVe BOARd 32 SHAREHOLDER INFORMATION 33 The finanCial REPORTing pRoCeSS and inTeRnal ConTRolS 36 STaTeMenT by The ManageMenT on The annual Report 37 IndependenT audiToR’S Report FINANCIAL STATEMENTS 38 InCoMe staTeMenT foR 2010/2011 39 STaTeMenT of CoMpRehenSiVe inCoMe 2010/2011 40 BalanCe SheeT 30 SepTeMBeR 2011 assets 41 BalanCe SheeT 30 SepTeMBeR 2011 equity and liaBiliTieS USA 42 Equity staTeMenT foR The gRoup San José RTX Technology’s US sales 43 Equity staTeMenT foR The paRenT office is located in the heart of Califor- 44 CaSh flow staTeMenT 2010/2011 nia’s Silicon Valley, one of the country’s major innovation centers, in close pro- 45 NOTES ximity to many of RTX’s semiconductor partners and major customers. 83 ADDRESSES 84 teChniCal TeRMS and eXplanAtIonS RTX annual report 2010/11 3 RTX annual report 2010/11 3 CONTENTS DEAR SHAREHOLDER SUMMARY FINANCIAL HIGHLIGHTS PRIMARY ACTIVITY ACTIVITIES AND FINANCES UNCERTAINTY INTELLECTUAL CAPITAL CSR RESEARCH AND DEVELOPMENT PROSPECTS CORPORATE GOVERNANCE SUPERVISORY BOARD EXECUTIVE BOARD COMPANY SHAREHOLDER INFORMATION REPORTING PROCESS AND INTERNAL CONTROLS STATEMENTS FINANCIAL STATEMENTS ADDRESSES TECHNICAL TERMS NOERRESUNDBY HONG KONG RTX DESIGNS AND PRODUCES ADVANCED WIRELESS SOLUTIONS FOR GLOBAL CLIENTS ACROSS A VARIETY OF MARKETS. Denmark Asia Global Noerresundby RTX is headquartered in Hong Kong The strong asian base of RTX is represented globally in all major noerresundby. R&d, sales, projects and RTX. approx. 50 employees work with markets via its own sales organization administration is situated here. RTX be- product development, supply chain or certified distributors. nefit froma alborg university’s wireless management and quality assurance of technology research, and the areas’ products, outsourcing, partners and cluster of communication and techno- sub-suppliers. in addition, hong Kong logy companies. There are approx. 120 houses sales & service support func- employees in noerresundby. tions. 4 RTX annual report 2010/11 4 RTX annual report 2010/11 CONTENTS DEAR SHAREHOLDER SUMMARY FINANCIAL HIGHLIGHTS PRIMARY ACTIVITY ACTIVITIES AND FINANCES UNCERTAINTY INTELLECTUAL CAPITAL CSR RESEARCH AND DEVELOPMENT PROSPECTS CORPORATE GOVERNANCE SUPERVISORY BOARD EXECUTIVE BOARD COMPANY SHAREHOLDER INFORMATION REPORTING PROCESS AND INTERNAL CONTROLS STATEMENTS FINANCIAL STATEMENTS ADDRESSES TECHNICAL TERMS DEAR SHAREHOLDER, The financial year 2010/11 marks the processes and systems have been or and are widely acknowledged across first milestone in RTX’s turnaround plan. are in the process of being improved the world. RTX’s wireless know-how is This year we present the first positive and updated. The competences have applied in the products of respected results in 8 years. been selectively improved both in global brands such as Microsoft, philips management and in key R&d positions. healthcare, Siemens, alcatel-lucent, in 2009, RTX embarked on a journey to There is increased focus on margin, panasonic, neC, Sennheiser and dialog transform the Company into profitabi- and investments in the future have Semiconductor. lity and to prepare ourselves for future been undertaken. The engineering staff growth. The turnaround plan included has been increased, thereby enabling RTX will take advantage of growth three phases; becoming profitable, investments in new technologies and within the use of wireless techno- improving business processes and com- product platforms, and improving our logy and the increased awareness of petences, and refocusing on areas and ability to execute on business oppor- low-energy solutions within ip-based segments that offer scalability and can tunities. telephony, gaming, home automation, generate growth in the mid- to longer smart grid, healthcare and machine term. These investments and our increased to machine (M2M) communication. in focus on scalable business areas will addition, RTX endeavors to capitalize The first phase involved a significant enable RTX to initiate growth from a on our combination of solid wireless “slimming” of organization and mana- stronger and more stable base. know-how and years of experience in gement. furthermore, a re-organiza- design of effective manufacturing test tion added clear alignment between as designer, developer and manufac- solutions for our customers. resources and business responsibility. turer of advanced wireless solutions Manufacturing has been outsourced and test systems, RTX is well positioned The strategy going forward focuses on to low-cost areas and the balance to benefit from global trends. More and developing innovative and cost-effec- sheet has been reduced. in addition, more communication, data or voice, is tive solutions that will generate growth the overall risk profile of RTX has been becoming wireless. RTX has profound and create value for both shareholders reduced by the termination of a loss- technological knowledge of wireless and stakeholders. making business area. protocols, products and solutions within Bluetooth®, wi-fi™, deCT, CaT-iq™, Voip Jesper Mailind The second and the third phases are and cellular technologies. RTX’s solu- president & CEO still ongoing. in the past year, business tions are built upon solid experience, RTX annual report 2010/11 5 RTX annual report 2010/11 5 CONTENTS DEAR SHAREHOLDER SUMMARY FINANCIAL HIGHLIGHTS PRIMARY ACTIVITY ACTIVITIES AND FINANCES UNCERTAINTY INTELLECTUAL CAPITAL CSR RESEARCH AND DEVELOPMENT PROSPECTS CORPORATE GOVERNANCE SUPERVISORY BOARD EXECUTIVE BOARD COMPANY SHAREHOLDER INFORMATION REPORTING PROCESS AND INTERNAL CONTROLS STATEMENTS FINANCIAL STATEMENTS ADDRESSES TECHNICAL TERMS Jesper Mailind, President & CEO 6 RTX annual report 2010/11 6 RTX annual report 2010/11 CONTENTS DEAR SHAREHOLDER SUMMARY FINANCIAL HIGHLIGHTS PRIMARY ACTIVITY ACTIVITIES AND FINANCES UNCERTAINTY INTELLECTUAL CAPITAL CSR RESEARCH AND DEVELOPMENT PROSPECTS CORPORATE GOVERNANCE SUPERVISORY BOARD EXECUTIVE BOARD COMPANY SHAREHOLDER INFORMATION REPORTING PROCESS AND INTERNAL CONTROLS STATEMENTS FINANCIAL STATEMENTS ADDRESSES TECHNICAL TERMS SUMMARY FOR THE YEAR The financial year 2010/11 was highly both by existing and new engineering • The operating profit/loss (eBiT) successful for RTX. it was the first year design customers, and by a substan- amounts to dKK 9.0 million, or 4.4%, with a positive result for several years. tial lift within the odM business and compared to dKK 13.4 million, or even though the overall revenue was the test system business. all factors 6.1%, for the comparable business lower than the previous year, RTX gene- contributing to a positive result and a for the previous financial year. rated positive results on eBiT level. The better performance than the previous gross profit improved due to changes financial year. • The capacity costs increased by dKK in the product mix and the past years’ 18.0 million, primarily due to signifi- focus on margin. The fixed costs in the RTX products, a supplier of advanced ip- cant investments in new technologies business units grew within investments, telephony solutions for the enterprise and new product platforms. The ca- whereas costs were kept stable in the and SMe market, experienced a nega- pacity costs also included a significant administration functions. tive revenue development following a write-down of old debtors, which is very strong development in 2009/10. an increase of dKK 4.3 million com- as RTX’s solvency and liquidity are The main contributor to the lower pared to the previous financial year. strong, RTX is in a position to make revenue was a phase-out of a Tle (Tele- investments when the right opportuni- phone line extender) product. even • The cash flow amounts to dKK 1.0 ties appear. Therefore, RTX increased though revenue declined, the gross million compared to dKK 27.9 million its cost base compared to last financial profit improved compared to 2009/10, in the previous financial year. The year in order to invest significantly in and RTX products also generated posi- cash flow was last year positively new technologies and new product tive results for the financial year. affected by sales of short-term cur- platforms. The aim is to secure future rent assets of dKK 16.7 million. in growth within both business