Document:

Exhibit
10.1

 

Triple P N.V.

Consolidated Financial Statements

 

	
  Contents

  
	
  Report of Independent
  Auditors

  
	
  Consolidated Balance
  Sheets

  
	
  Consolidated
  Statements of Operations

  
	
  Consolidated
  Statements of Shareholders’ Equity

  
	
  Consolidated
  Statements of Cash Flows

  
	
  Notes to
  Consolidated Financial Statements

  
	
  Valuation and Qualifying Accounts (Schedule
  II)

  

 

 

Triple P N.V.

Report
of Independent Auditors

 

 

To the Shareholders and Supervisory Board of
Triple P N.V.,

 

We have audited the accompanying consolidated balance sheet of Triple P
N.V. as of December 31, 2002, and the related consolidated statements of
operations, shareholders’ equity, and cash flows for the year then ended. Our
audit also included the financial statement schedule attached to the
consolidated financial statements. These consolidated financial statements and
the financial statement schedule are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these financial
statements and schedule based on our audit. The consolidated financial statements
and financial statement schedule of Triple P N.V. and subsidiaries for the
fiscal years ended December 31, 2001 and 2000, were audited by other auditors
who have ceased operations. Those auditors expressed an unqualified opinion on
those statements in their report dated February 7, 2002.

 

We conducted our audit in
accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

 

In our opinion, the
consolidated financial statements referred to above present fairly, in all
material respects, the consolidated financial position of Triple P N.V. at
December 31, 2002 and the consolidated results of their operations and their
cash flows for the year then ended in conformity with accounting principles
generally accepted in the United States of America. Also, in our opinion, the
related financial statement schedule, when considered in relation to the basic
consolidated financial statements taken as a whole, presents fairly in all
material respects the information set forth therein.

 

 

	
  March 4, 2003

  
	
  Eindhoven, The
  Netherlands

  
	
  Ernst & Young
  Accountants

  

 

2

 

Triple P N.V.

Report
of Independent Auditors (former Auditor)

 

This report is a copy of a report previously issued by Arthur
Andersen in connection with Triple P N.V.’s filing on Form 20-F for the year
ended December 31, 2001.  The report has
not been re-issued by Arthur Andersen nor has Arthur Andersen provided a
consent to the inclusion of its report in this Form 20-F.

 

To Triple P N.V.

 

We have audited the accompanying consolidated balance sheets of Triple
P N.V. and subsidiaries as of December 31, 2000 and 2001, and the related
consolidated statements of operations, shareholders’ equity and cash flows for
each of the three years in the period ended December 31, 2001. These financial
statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

 

We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

 

In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Triple
P N.V.. and subsidiaries at December 31, 2000 and 2001, and the consolidated
results of their operations and their cash flows for each of the three years in
the period ended at December 31, 2001 in conformity with accounting principles
generally accepted in the United States.

 

Our audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The schedule listed in the index of
financial statements is presented for purposes of complying with the Securities
and Exchange Commissions rules and is not part of the basic financial
statements. This schedule has been subjected to the auditing procedures applied
in the audit of the basic financial statements and, in our opinion, fairly
states in all material respects the financial data required to be set forth
therein in relation to the basic financial statements taken as a whole.

 

	
  February 7, 2002

  
	
  Eindhoven,The Netherlands

  
	
  Arthur Andersen

  

 

3

 

Triple P N.V.

Consolidated Balance Sheets

(in thousands, except shares and per share amounts)

 

 

	
   

  	
   

  	
  At December 31,

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
   

  	
   

  	
  EUR

  	
   

  	
  EUR

  	
   

  
	
  Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and cash
  equivalents

  	
   

  	
  1,010

  	
   

  	
  4,207

  	
   

  
	
  Restricted cash

  	
   

  	
  59

  	
   

  	
  59

  	
   

  
	
  Accounts
  receivable, net of an allowance for doubtful accounts of EUR 1,155 in 2001
  and EUR 1,202 in 2002

  	
   

  	
  15,291

  	
   

  	
  12,090

  	
   

  
	
  Inventories

  	
   

  	
  3,916

  	
   

  	
  3,136

  	
   

  
	
  Prepaid expenses
  and other current assets

  	
   

  	
  3,336

  	
   

  	
  1,870

  	
   

  
	
  Current assets
  of discontinued operations

  	
   

  	
  1,860

  	
   

  	
  —

  	
   

  
	
  Total
  current assets

  	
   

  	
  25,472

  	
   

  	
  21,362

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Non-Current Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property and
  equipment, at cost

  	
   

  	
  4,603

  	
   

  	
  3,999

  	
   

  
	
  Less:
  accumulated depreciation and amortization

  	
   

  	
  2,365

  	
   

  	
  2,375

  	
   

  
	
  Net property and
  equipment

  	
   

  	
  2,238

  	
   

  	
  1,624

  	
   

  
	
  Non-current
  assets of discontinued operations

  	
   

  	
  165

  	
   

  	
  —

  	
   

  
	
  Total
  non-current assets

  	
   

  	
  2,403

  	
   

  	
  1,624

  	
   

  
	
  Total assets

  	
   

  	
  27,875

  	
   

  	
  22,986

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Liabilities and shareholders’
  equity

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Short-term part
  of long-term liabilities

  	
   

  	
  485

  	
   

  	
  470

  	
   

  
	
  Accounts payable

  	
   

  	
  7,835

  	
   

  	
  8,444

  	
   

  
	
  Accrued
  liabilities

  	
   

  	
  7,147

  	
   

  	
  5,213

  	
   

  
	
  Customer
  deposits

  	
   

  	
  1,369

  	
   

  	
  665

  	
   

  
	
  Deferred revenue

  	
   

  	
  4,084

  	
   

  	
  3,981

  	
   

  
	
  Restructuring
  reserve

  	
   

  	
  —

  	
   

  	
  715

  	
   

  
	
  Current
  liabilities of discontinued operations

  	
   

  	
  1,643

  	
   

  	
  —

  	
   

  
	
  Total
  current liabilities

  	
   

  	
  22,563

  	
   

  	
  19,488

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pension
  obligations

  	
   

  	
  190

  	
   

  	
  259

  	
   

  
	
  Reserve for
  anticipated loss on disposition of discontinued operations

  	
   

  	
  628

  	
   

  	
  —

  	
   

  
	
  Other long-term
  liabilities

  	
   

  	
  1,002

  	
   

  	
  725

  	
   

  
	
  Total long-term
  liabilities

  	
   

  	
  1,820

  	
   

  	
  984

  	
   

  
	
  Total
  liabilities

  	
   

  	
  24,383

  	
   

  	
  20,472

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Commitments and
  Contingencies (Note 7)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholders’ equity:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preferred
  shares, EUR 0.04 par value per share;

  Authorized - 19,750,000 shares;

  Outstanding - none

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Common shares,
  EUR 0.04 par value per share;

  Authorized - 43,750,000 shares;

  Outstanding - 30,469,345 shares

  	
   

  	
  1,219

  	
   

  	
  1,219

  	
   

  
	
  Additional
  paid-in capital

  	
   

  	
  53,293

  	
   

  	
  53,293

  	
   

  
	
  Accumulated
  deficit

  	
   

  	
  (50,906

  	
  )

  	
  (51,998

  	
  )

  
	
  Cumulative
  translation adjustment

  	
   

  	
  (114

  	
  )

  	
  —

  	
   

  
	
  Total shareholders’
  equity

  	
   

  	
  3,492

  	
   

  	
  2,514

  	
   

  
	
  Total liabilities and shareholders’
  equity

  	
   

  	
  27,875

  	
   

  	
  22,986

  	
   

  

 

The accompanying notes are an integral part of these consolidated
financial statements.

 

4

 

Triple P N.V.

Consolidated
Statements of Operations

(in thousands, except per share amounts)

 

	
   

  	
   

  	
  At December 31,

  	
   

  
	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
   

  	
   

  	
  EUR

  	
   

  	
  EUR

  	
   

  	
  EUR

  	
   

  
	
  Net revenues

  	
   

  	
  122,353

  	
   

  	
  110,874

  	
   

  	
  96,373

  	
   

  
	
  Cost of revenues

  	
   

  	
  100,252

  	
   

  	
  91,793

  	
   

  	
  79,438

  	
   

  
	
  Gross Profit

  	
   

  	
  22,101

  	
   

  	
  19,081

  	
   

  	
  16,935

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales and
  marketing expense

  	
   

  	
  10,227

  	
   

  	
  9,743

  	
   

  	
  9,777

  	
   

  
	
  Research and
  development expense

  	
   

  	
  661

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  General and
  administrative expense

  	
   

  	
  5,770

  	
   

  	
  4,658

  	
   

  	
  5,660

  	
   

  
	
  Goodwill
  amortization

  	
   

  	
  191

  	
   

  	
  189

  	
   

  	
  —

  	
   

  
	
  Restructuring
  charge

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  1,370

  	
   

  
	
  Total operating
  expenses

  	
   

  	
  16,849

  	
   

  	
  14,590

  	
   

  	
  16,807

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating income from continuing
  operations

  	
   

  	
  5,252

  	
   

  	
  4,491

  	
   

  	
  128

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest income

  	
   

  	
  68

  	
   

  	
  197

  	
   

  	
  —

  	
   

  
	
  Interest expense

  	
   

  	
  (409

  	
  )

  	
  (360

  	
  )

  	
  (417

  	
  )

  
	
  Other income
  (expense), net

  	
   

  	
  (176

  	
  )

  	
  (82

  	
  )

  	
  (231

  	
  )

  
	
  Total other
  income (expense), net

  	
   

  	
  (517

  	
  )

  	
  (245

  	
  )

  	
  (648

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income (loss) from continuing
  operations

  	
   

  	
  4,735

  	
   

  	
  4,246

  	
   

  	
  (520

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Profit (loss)
  from discontinued operations

  	
   

  	
  326

  	
   

  	
  (377

  	
  )

  	
  —

  	
   

  
	
  Profit (loss) on
  disposal of discontinued operations, including a provision for estimated
  operating losses during disposal period

  	
   

  	
  —

  	
   

  	
  (628

  	
  )

  	
  —

  	
   

  
	
  Net Income (loss) from discontinued operations

  	
   

  	
  326

  	
   

  	
  (1,005

  	
  )

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income (loss)

  	
   

  	
  5,061

  	
   

  	
  3,241

  	
   

  	
  (520

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preferred stock
  dividend

  	
   

  	
  980

  	
   

  	
  572

  	
   

  	
  —

  	
   

  
	
  Preferred stock
  withdrawal premium

  	
   

  	
  —

  	
   

  	
  454

  	
   

  	
  —

  	
   

  
	
  Net income
  (loss) available to common stockholders

  	
   

  	
  4,081

  	
   

  	
  2,215

  	
   

  	
  (520

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Basic and diluted earnings per
  share

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income
  (loss) per share from continuing operations

  	
   

  	
  0.12

  	
   

  	
  0.10

  	
   

  	
  (0.02

  	
  )

  
	
  Net income
  (loss) per share from discontinued operations

  	
   

  	
  0.01

  	
   

  	
  (0.03

  	
  )

  	
  —

  	
   

  
	
  Total net income
  (loss) per share

  	
   

  	
  0.13

  	
   

  	
  0.07

  	
   

  	
  (0.02

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Basic and diluted weighted average
  shares outstanding

  	
   

  	
  30,469

  	
   

  	
  30,469

  	
   

  	
  30,469

  	
   

  

 

The accompanying notes are an integral part of these consolidated
financial statements.

 

5

 

Triple P N.V.

Consolidated
Statements of Shareholders’ Equity

(in thousands of euros exept share amounts)

 

	
   

  	
   

  	
  Preferred Shares

  Number

  	
   

  	
  Common

  shares(1)

  Amount

  	
   

  	
  Additional
Paid-in

  Capital(1)

  	
   

  	
  Accumulated  
Deficit

  	
   

  	
  Accumulated
Translation   

  	
   

  	
  Total
Shareholders’

  	
   

  
	
   

  	
   

  	
  Number

  	
   

  	
  Amount

  	
   

  	
  Number

  	
  Adjustment

  	
   

  	
  Equity

  	
   

  
	
  Balance at
  January 1, 1999

  	
   

  	
  24,000,000

  	
   

  	
  2,178

  	
   

  	
  30,469,345

  	
   

  	
  1,219

  	
   

  	
  62,005

  	
   

  	
  (56,794

  	
  )

  	
  (106

  	
  )

  	
  8,502

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Income

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,061

  	
   

  	
  —

  	
   

  	
  5,061

  	
   

  
	
  Translation adjustment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  (7

  	
  )

  	
  (7

  	
  )

  
	
  Comprehensive income

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,054

  	
   

  
	
  Preferred dividend

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (980

  	
  )

  	
  —

  	
   

  	
  (980

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Balance at
  December 31, 2000

  	
   

  	
  24,000,000

  	
   

  	
  2,178

  	
   

  	
  30,469,345

  	
   

  	
  1,219

  	
   

  	
  62,005

  	
   

  	
  (52,713

  	
  )

  	
  (113

  	
  )

  	
  12,576

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Income

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  3,241

  	
   

  	
  —

  	
   

  	
  3,241

  	
   

  
	
  Translation adjustment

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  (1

  	
  )

  	
  (1

  	
  )

  
	
  Comprehensive income

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,240

  	
   

  
	
  Preferred dividend

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  (980

  	
  )

  	
  —

  	
   

  	
  (980

  	
  )

  
	
  Withdrawal preferred shares

  	
   

  	
  (24,000,000

  	
  )

  	
  (2,178

  	
  )

  	
  —

  	
   

  	
  —

  	
   

  	
  (8,712

  	
  )

  	
  (454

  	
  )

  	
  —

  	
   

  	
  (11,344

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Balance at
  December 31, 2001

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  30,469,345

  	
   

  	
  1,219

  	
   

  	
  53,293

  	
   

  	
  (50,906

  	
  )

  	
  (114

  	
  )

  	
  3,492

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net loss

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  (520

  	
  )

  	
  —

  	
   

  	
  (520

  	
  )

  
	
  Translation adjustment

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  114

  	
   

  	
  114

  	
   

  
	
  Comprehensive income

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (406

  	
  )

  
	
  Preferred dividend

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  (572

  	
  )

  	
  —

  	
   

  	
  (572

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Balance at
  December 31, 2002

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  30,469,345

  	
   

  	
  1,219

  	
   

  	
  53,293

  	
   

  	
  (51,998

  	
  )

  	
  0

  	
   

  	
  2,514

  	
   

  

 

(1)  The common shares and
additional paid-in capital have been restated for all periods presented to
reflect the revision of the par value from Dutch guilders 0.20 per share to EUR
0.04 per share, which occurred during 2001.

 

The accompanying notes are an integral part of these consolidated
financial statements.

 

6

 

Triple P N.V.

Consolidated
Statements of Cash Flows

(in thousands)

 

	
   

  	
   

  	
  Year Ended December 31,

  	
   

  
	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
   

  	
   

  	
  EUR

  	
   

  	
  EUR

  	
   

  	
  EUR

  	
   

  
	
  Cash flow from operating activities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income
  (loss) from continuing operations

  	
   

  	
  4,735

  	
   

  	
  4,246

  	
   

  	
  (520

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments to
  reconcile net income (loss) to net cash provided by (used in) continuing
  operations: 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and
  amortization

  	
   

  	
  2,149

  	
   

  	
  1,524

  	
   

  	
  1,022

  	
   

  
	
  Impairment of
  fixed assets

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  1,019

  	
   

  
	
  Provision for
  doubtful accounts

  	
   

  	
  913

  	
   

  	
  316

  	
   

  	
  268

  	
   

  
	
  Provision for
  inventories

  	
   

  	
  —

  	
   

  	
  104

  	
   

  	
  142

  	
   

  
	
  Restructuring
  reserve

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  715

  	
   

  
	
  Reserve for
  losses of discontinued operations

  	
   

  	
  —

  	
   

  	
  628

  	
   

  	
  (628

  	
  )

  
	
  Other long-term
  liabilities

  	
   

  	
  (297

  	
  )

  	
  (943

  	
  )

  	
  262

  	
   

  
	
  Currency
  translation adjustment

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  114

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Changes in
  operating assets and liabilities from continuing operations:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts
  receivable

  	
   

  	
  (719

  	
  )

  	
  1,492

  	
   

  	
  2,933

  	
   

  
	
  Inventories

  	
   

  	
  329

  	
   

  	
  288

  	
   

  	
  638

  	
   

  
	
  Other current
  assets

  	
   

  	
  1,778

  	
   

  	
  (4

  	
  )

  	
  1,466

  	
   

  
	
  Accounts payable

  	
   

  	
  (477

  	
  )

  	
  (2,674

  	
  )

  	
  609

  	
   

  
	
  Accrued
  liabilities

  	
   

  	
  (195

  	
  )

  	
  546

  	
   

  	
  (1,934

  	
  )

  
	
  Customer
  deposits

  	
   

  	
  497

  	
   

  	
  (1,129

  	
  )

  	
  (704

  	
  )

  
	
  Deferred revenue

  	
   

  	
  49

  	
   

  	
  509

  	
   

  	
  (103

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net cash provided by continuing
  operations

  	
   

  	
  8,762

  	
   

  	
  4,903

  	
   

  	
  5,299

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income
  (loss) from discontinued operations

  	
   

  	
  326

  	
   

  	
  (1,005

  	
  )

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments to
  reconcile net income (loss) to net cash provided by (used in) discontinued
  operations:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and
  amortization

  	
   

  	
  139

  	
   

  	
  135

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Changes in
  operating assets and liabilities from discontinued operations:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts
  receivable

  	
   

  	
  539

  	
   

  	
  1,147

  	
   

  	
  597

  	
   

  
	
  Inventories

  	
   

  	
  134

  	
   

  	
  38

  	
   

  	
  155

  	
   

  
	
  Other current
  assets

  	
   

  	
  (211

  	
  )

  	
  182

  	
   

  	
  288

  	
   

  
	
  Accounts payable

  	
   

  	
  145

  	
   

  	
  (516

  	
  )

  	
  (421

  	
  )

  
	
  Accrued
  liabilities

  	
   

  	
  (512

  	
  )

  	
  (93

  	
  )

  	
  (788

  	
  )

  
	
  Customer
  deposits

  	
   

  	
  (48

  	
  )

  	
  (15

  	
  )

  	
  —

  	
   

  
	
  Deferred revenue

  	
   

  	
  252

  	
   

  	
  (11

  	
  )

  	
  (434

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net cash provided by (used in)
  discontinued operations

  	
   

  	
  764

  	
   

  	
  (138

  	
  )

  	
  (603

  	
  )

  

 

7

 

	
   

  	
   

  	
  Year Ended December 31,

  	
   

  
	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
   

  	
   

  	
  EUR

  	
   

  	
  EUR

  	
   

  	
  EUR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash flow from investing activities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property and
  equipment purchased

  	
   

  	
  (868

  	
  )

  	
  (58

  	
  )

  	
  (1,427

  	
  )

  
	
  Intangible
  assets

  	
   

  	
  (3

  	
  )

  	
  —

  	
   

  	
  —

  	
   

  
	
  Decrease in
  other non current assets

  	
   

  	
  15

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Restricted cash

  	
   

  	
  (351

  	
  )

  	
  329

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net cash provided by (used in)
  investing activities of continuing operations

  	
   

  	
  (1,207

  	
  )

  	
  (387

  	
  )

  	
  (1,427

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property and
  equipment purchased, net

  	
   

  	
  (108

  	
  )

  	
  (50

  	
  )

  	
  165

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net cash used in investing
  activities of discontinued operations

  	
   

  	
  (108

  	
  )

  	
  (50

  	
  )

  	
  165

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash flow from financing activities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Borrowings under
  short-term credit facilities

  	
   

  	
  3,236

  	
   

  	
  9,687

  	
   

  	
  6,541

  	
   

  
	
  Repayments under
  short-term credit facilities

  	
   

  	
  (3,236

  	
  )

  	
  (9,687

  	
  )

  	
  (6,541

  	
  )

  
	
  Paid lease
  obligation

  	
   

  	
  (45

  	
  )

  	
  (289

  	
  )

  	
  (485

  	
  )

  
	
  Preferred stock
  dividend

  	
   

  	
  (980

  	
  )

  	
  (980

  	
  )

  	
  (572

  	
  )

  
	
  Preferred stock
  withdrawal

  	
   

  	
  —

  	
   

  	
  (11,344

  	
  )

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net cash used in financing
  activities of continuing operations

  	
   

  	
  (1,025

  	
  )

  	
  (12,613

  	
  )

  	
  (1,057

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Increase)
  decrease cash position of discontinued operations

  	
   

  	
  (457

  	
  )

  	
  (763

  	
  )

  	
  820

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Impact of
  exchange rate on cash

  	
   

  	
  (7

  	
  )

  	
  (1

  	
  )

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Increase (decrease) in cash and
  cash equivalents of continued operations

  	
   

  	
  6,722

  	
   

  	
  (8,275

  	
  )

  	
  3,197

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and cash
  equivalents at beginning of year

  	
   

  	
  2,563

  	
   

  	
  9,285

  	
   

  	
  1,010

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and cash
  equivalents at end of year

  	
   

  	
  9,285

  	
   

  	
  1,010

  	
   

  	
  4,207

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Supplemental
  cash flow information

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash paid for
  interest

  	
   

  	
  341

  	
   

  	
  163

  	
   

  	
  417

  	
   

  

 

The accompanying notes are an integral part of these consolidated
financial statements.

 

8

 

Triple P N.V.

Notes to
Consolidated Financial Statements

December 31, 2002

 

1

Organization
and operations

 

Triple P is a provider of high quality Information and Communication
Technology (‘ICT’) infrastructure solutions for medium and large businesses in
the Benelux.These solutions include ICT-consultancy, project management and
implementation services, and operational management and maintenance services.
The Company’s solutions are compatible with the established products of among
others Compaq, Toshiba, IBM, Sun Microsystems, Hewlett Packard, Citrix, Cisco,
Nortel, Microsoft, Novell and Oracle.

 

Until December 31, 2002, Triple P organized its business in three
divisions: Systems & Networks, Services, and Software & Systems
Integration. The Company’s Systems & Networks Division provided system and
network integration consulting and re-sold system and network products. The
Company’s Services Division provided consulting, project management and
implementation services as well as management services and maintenance
services. The Company’s Software & Systems Integration Division provided
standard software, implementation and customization and maintenance services in
the home-care and publishing markets. 
As of January 1, 2003 these three divisions were integrated into a
single organization.

 

2

Basis of
presentation and summary of significant accounting policies

 

Basis of
Presentation

The consolidated financial statements are stated in thousands of euros
and are prepared in accordance with United States Generally Accepted Accounting
Principles (US GAAP).

 

The consolidated financial statements are prepared using discontinued
operations accounting for the Belgian subsidiary, Triple P Belgium N.V./S.A.,
as the Company decided to discontinue these operations and no longer serve any
customer in the Belgian healthcare market. 
Further reference is made to Note 5.

 

Unless indicated otherwise, all financial information in the notes to
the consolidated financial statements exclude discontinued operations.

 

Use of
Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from those estimates.

 

Foreign
currency translation

Assets and liabilities denominated in foreign currencies are translated
into euros at the year end exchange rate. Transactions in foreign currencies
are translated at the exchange rate in effect at the time of the transaction.
The exchange results are recorded under other income and expense in the statement
of operations and were insignificant for all periods presented.

 

The Company has no derivative instruments.

 

Principles
of Consolidation

All significant intercompany balances and transactions have been
eliminated in consolidation. The consolidated financial statements include the
financial statements of Triple P N.V. and the following subsidiaries:

 

9

 

	
  Name

  	
   

  	
  Legal Seat

  	
   

  	
  Ownership
  %

  	
   

  
	
  Active

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Triple P
  Management B.V.

  	
   

  	
  Vianen - The Netherlands

  	
   

  	
  100

  	
  %

  
	
  Triple P
  Nederland B.V.

  	
   

  	
  Vianen - The Netherlands

  	
   

  	
  100

  	
  %

  
	
  Triple P
  Healthcare B.V.

  	
   

  	
  Vianen - The Netherlands

  	
   

  	
  100

  	
  %

  
	
  Triple P
  eActivity B.V.

  	
   

  	
  Zeist - The Netherlands

  	
   

  	
  100

  	
  %

  
	
  Mediasystemen
  B.V.

  	
   

  	
  Haarlem - The Netherlands

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Inactive

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Triple P
  Services / B-Catel B.V.

  	
   

  	
  Driebergen - The Netherlands

  	
   

  	
  100

  	
  %

  
	
  Telesystems
  Europe B.V.

  	
   

  	
  Zeist - The Netherlands

  	
   

  	
  100

  	
  %

  
	
  Triple P
  Intellectual Properties B.V.

  	
   

  	
  Vianen - The Netherlands

  	
   

  	
  100

  	
  %

  
	
  Triple P Lab
  Info Systems B.V.

  	
   

  	
  Eindhoven - The Netherlands

  	
   

  	
  100

  	
  %

  
	
  F.W. Salomons
  Holding B.V.

  	
   

  	
  Driebergen - The Netherlands

  	
   

  	
  100

  	
  %

  
	
  Omega N.V./S.A.

  	
   

  	
  Mechelen - Belgium

  	
   

  	
  100

  	
  %

  
	
  Triple P USA, Inc.

  	
   

  	
  Fairfax - USA

  	
   

  	
  100

  	
  %

  

 

The Company has a minority interest of 41% in Es@s N.V./S.A., a Belgian
ICT-company. The investment is accounted for under the equity method of
accounting.

 

Cash and
cash equivalents

The Company considers investments in highly liquid debt instruments
with original maturities of 90 days or less at the date of purchase to be cash
equivalents.

 

Restricted
cash

All cash not directly accessible (legally restricted) are considered to
be restricted cash. As of December 31, 2002, restricted cash relates primarily
to bank guarantees issued for lease commitments and rental contracts.

 

Accounts
receivable

Accounts receivable are stated at face value, less an allowance for
possible doubtful accounts. The Company provides an allowance for possible
doubtful accounts based on management’s periodic review of accounts, including
the delinquency of account balances. 
Accounts are considered delinquent when payments had not been received
within agreed upon terms and are written off when management determined that
collection is not probable.

 

Inventories

Inventories are stated at the lower of cost (first-in, first-out) or
market value and consist principally of hardware purchased for resale, spare
parts and work in progress less a provision for obsolete and slow-moving
inventories.

 

Property
and Equipment

Property and equipment is stated at the acquisition cost less
straight-line depreciation. The depreciation is calculated on the basis of
acquisition cost less residual value and the estimated useful life of the
related asset. The estimated useful lives are:

 

	
  Office equipment

  	
   

  	
  2-10 years

  	
   

  
	
  ERP-software

  	
   

  	
  5 years

  	
   

  

 

Maintenance and repairs are charged to expense as incurred. Major
betterments and improvements which extend the useful life of the item are
capitalized and depreciated over the remaining useful life of the asset. The
cost and accumulated depreciation of property, plant and equipment retired or
otherwise disposed of are removed from the related accounts, and any residual
values are charged or credited to income.

 

Recoverability
of long-lived assets

The Company evaluates the carrying value of all long-lived assets
whenever events or circumstances indicate the carrying value of assets may
exceed their recoverable amounts. An impairment loss is recognized when the
estimated future cash flows (undiscounted and without interest) expected to
result from the use of an asset are less than the carrying amount of the asset.

 

10

 

Measurement of an impairment loss is based on fair value of the asset
computed using discounted cash flow if the asset is expected to be held and
used. Measurement of an impairment loss for an asset held for sale would be
based on fair market value less estimated costs to sell.

 

In August 2001, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets (SFAS 144). SFAS 144 establishes a
single accounting model for long-lived assets to be disposed of by sale
consistent with the fundamental provisions of SFAS No. 121, Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of.
Under this statement, a long-lived asset that is to be abandoned is considered
disposed of when it ceases to be used.

 

Capital
Leases

The Company recognizes capital leases as assets and liabilities in the
balance sheet at amounts equal at the inception of the lease to the fair value
of the leased property or, if lower, at the present value of the minimum lease
payments. Lease payments are apportioned between the finance charge and the
reduction of the outstanding liability. The finance charge is allocated to
periods during the lease term so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each period.

 

A capital lease gives rise to depreciation expense for the asset
(included in depreciation expense) as well as a finance expense (included in
other income and expenses, net) for each accounting period. The depreciation
policy for leased assets is consistent with that for depreciable assets that
are owned.

 

Revenue
recognition

The Company generates revenues from (i) the design, delivery and
installation of ICT-infrastructure systems including third party software, (ii)
the provision of maintenance and management services based on service level
agreements, (iii) the provision of consulting services and (iv) licensing the
rights to its proprietary software products directly to end users either as
stand-alone products or as part of a software solution.

 

Revenue from the design, delivery and installation of
ICT-infrastructure systems including third party software is generally
recognized on a time and materials basis or when the system has been installed
and accepted by the customer. The completed contract method is used for those
contracts with customer-specific acceptance criteria and for which the Company
does not have sufficient history to enable it to prepare reliable cost
estimates. The Company records losses on contracts at the time such losses
become known.

 

Revenue from the providing of maintenance and management services is
recognized ratably over the term of the contract period. If maintenance
services are included in the software license fee, a portion of the software
license fee representing the fair market value of the maintenance services
based on the value established by independent sales of such maintenance
services to customers is allocated to maintenance revenue and recognized over
the period for which the Company is obligated to perform maintenance services.

 

Consulting services, other than in connection with the design, delivery
and installation of ICT-infrastructure systems, are usually performed on a time
and materials basis and are recognized as the services are provided.

 

Proprietary software products are licensed under perpetual license
agreements and revenue is recognized when persuasive evidence of an agreement
exists, delivery has occurred, the vendors fee is fixed or determinable and
collection of the related receivable is deemed probable.  In 2002 the Company had no such revenues.

 

Customer deposits represent cash received from customers in advance of
fulfilling customer purchase orders. Revenue related to such transactions is
recognized upon the fulfillment of customer orders. Deferred revenue primarily
consists of revenue deferred under maintenance and management contracts. The
Company generally invoices its customers in advance and, as discussed above,
recognizes revenue on a pro rata basis over the term of the service level
agreement.

 

A provision for warranty costs is recorded upon revenue recognition
when appropriate.

 

11

 

Stock
Option Plan

The Company applies the intrinsic value-based method of accounting
prescribed by Accounting Principles Board (“APB”) Opinion No. 25, “Accounting
for Stock Issued to Employees”, and related interpretations, in accounting for
its fixed plan stock options. Generally, compensation expense is only recorded
on the date of grant if the current market price of the underlying stock
exceeds the exercise price. Pro forma information regarding net income and net
income per share is required by FAS 123 for awards granted after June 30, 1995,
as if the Company had accounted for its stock-based awards to employees under
the fair value method of FAS 123. The Company’s net income and net income per
share would have decreased to the following pro forma amounts if compensation
cost for stock options granted under the Employee Plan had been recorded based
on the fair value method at the grant dates.

 

	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Net Income (in
  thousands of euros):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  As reported
  after preferred stock dividend

  	
   

  	
  4,081

  	
   

  	
  2,215

  	
   

  	
  (520

  	
  )

  
	
  Deduct:  Total stock based compensation expense
  under the fair value method for all awards

  	
   

  	
  280

  	
   

  	
  146

  	
   

  	
  144

  	
   

  
	
  Pro Forma

  	
   

  	
  3,801

  	
   

  	
  2,069

  	
   

  	
  (664

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income per share
  (euros)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Basic and
  diluted (1) as reported

  	
   

  	
  0.13

  	
   

  	
  0.07

  	
   

  	
  (0.02

  	
  )

  
	
  Basic and
  diluted (1) Pro Forma

  	
   

  	
  0.12

  	
   

  	
  0.07

  	
   

  	
  (0.02

  	
  )

  

 

(1)  Options to purchase
1,690,138,  976,725 and 906,627 shares of
common stock were outstanding as of December 31, 2000, 2001 and 2002
respectively.These shares were not included in the computation of diluted
earnings per share as the options’ exercise price was greater than the commom
shares’ average market price.

 

Income
Taxes

The Company accounts for income taxes following the asset and liability
methods which requires recognition of deferred tax assets and liabilities for
the expected future tax consequences of events that have been included in the
financial statements or tax returns. Under this method, deferred tax assets and
liabilities are determined based on the difference between the financial
statements and tax bases of assets and liabilities using currently enacted tax
rates.

 

Fair
Value of Financial Instruments

The Company considers its cash and cash equivalents, restricted cash,
accounts receivable and accounts payable to be its only significant financial
instruments and believes that the carrying amounts approximates fair value
because of the short maturity of these instruments.

 

Concentration
of credit risk

The Department of Justice in The Netherlands accounted for
approximately EUR 24.5 million, or 20%, EUR 32.5 million, or 29% and EUR 30.7
million, or 32%, of consolidated net revenues in the years ended December 31,
2000, 2001 and 2002, respectively.  The
Company has a master-contract with the Department of Justice in The Netherlands
based on which more than hundred separate purchasing units order ICT-systems
they need.

 

Comprehensive
income

Comprehensive income represents net income plus translation
adjustments.

 

Net
income (loss) per share

Basic earnings per share are computed by dividing income available to
common stockholders by the weighted average number of common shares outstanding
during the period.

 

Diluted earnings per share have been adjusted for the assumed
conversion of all potentially dilutive securities. Potentially dilutive
securities are those that do not have a current right to participate fully in
earnings but could do so in the future by virtue of their option or conversion
rights.The exercise of options or conversion of convertible securities is not
assumed if the result would be antidilutive for the period being calculated.

 

12

 

Net
income (loss) per share:

(in thousands of euros, except per share amounts)

 

	
   

  	
   

  	
  Year ended December 31,

  	
   

  
	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Weighted average
  common shares outstanding

  	
   

  	
  30,469

  	
   

  	
  30,469

  	
   

  	
  30,469

  	
   

  
	
  Dilutive stock
  options(1)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Diluted number
  of shares

  	
   

  	
  30,469

  	
   

  	
  30,469

  	
   

  	
  30,469

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income
  (loss) from continuing operations

  	
   

  	
  4,735

  	
   

  	
  4,246

  	
   

  	
  (520

  	
  )

  
	
  Net income
  (loss) from discontinued operations

  	
   

  	
  326

  	
   

  	
  (1,005

  	
  )

  	
  —

  	
   

  
	
  Net income
  (loss)

  	
   

  	
  5,061

  	
   

  	
  3,241

  	
   

  	
  (520

  	
  )

  
	
  Preferred stock
  dividend

  	
   

  	
  (980

  	
  )

  	
  (572

  	
  )

  	
  —

  	
   

  
	
  Preferred stock
  withdrawal premium

  	
   

  	
  —

  	
   

  	
  (454

  	
  )

  	
  —

  	
   

  
	
  Net income
  (loss) available to common stockholders

  	
   

  	
  4,081

  	
   

  	
  2,215

  	
   

  	
  (520

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income
  (loss) per share from continuing operations - basic and diluted

  	
   

  	
  0.12

  	
   

  	
  0.10

  	
   

  	
  (0.02

  	
  )

  
	
  Net income
  (loss) per share from discontinued operations - basic and diluted

  	
   

  	
  0.01

  	
   

  	
  (0.03

  	
  )

  	
  —

  	
   

  
	
  Total net income (loss) per share
  available to common stockholders - basic and diluted

  	
   

  	
  0.13

  	
   

  	
  0.07

  	
   

  	
  (0.02

  	
  )

  

 

(1)  Options to purchase 1,690,138, 976,725 and 906,627
shares of common stock were outstanding as of December 31, 2000, 2001 and 2002,
respectively.These shares are not included in the computation of diluted
earnings per share as the options’ exercise price was greater than the common
shares’ average market price.

 

New
accounting policies

In June 2001, the Financial Accounting
Standards Board issued SFAS No. 141, “Business Combinations” and SFAS No. 142,
“Intangible Assets.” SFAS No. 141 requires that all business combinations
initiated after June 30, 2001 be accounted for under the purchase method and
addresses the initial recognition and measurement of goodwill and other
intangible assets acquired in a business combination. SFAS No. 142 addresses
the initial recognition and measurement of intangible assets acquired outside
of a business combination and the accounting for goodwill and other intangible
assets subsequent to their acquisition. SFAS No. 142 provides that intangible
assets with finite useful lives be amortized and that goodwill and intangible assets
with indefinite lives not be amortized, but instead tested at least annually
for impairment. The adoption of SFAS No. 141 and 142 did not impact the
Company’s financial position, result of operations or cash flows. Per December
31, 2001 and 2002 the Company had no goodwill on its balance sheet.

 

In August 2001, the FASB issued SFAS 144,
“Accounting for the Impairment or Disposal of Long-Lived Assets.” This
statement addresses the impairment or disposal of long-lived assets and
supersedes SFAS 121, “Accounting for the Impairment of Long-Lived Assets and
for Long-Lived Assets to be Disposed Of,” and Accounting Principles Board
Opinion No. 30, “Reporting the Results of Operations, for a disposal of a
segment of a business.” SFAS 144 is effective for fiscal years beginning after
December 15, 2001. The adoption of this standard did impact the Company’s
financial position, result of operations or cash flows.

 

In June 2002, the FASB issued SFAS 146,
“Accounting for Costs Associated with Exit or Disposal Activities.” This
statement defines the accounting and reporting for costs associated with exit
or disposal activities and is effective for exit or disposal activities that
are initiated after December 31, 2002, with early application encouraged. SFAS
146 supersedes Emerging Issues Task Force (EITF) issue 94-3, “Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit
an Activity.” The Company will adopt SFAS 146 as of January 1, 2003 and does
not expect the adoption of the statement to have a significant impact on its
financial position, result of operations or cash flows.

 

In November 2002, the FASB issued FASB
Interpretation No. 45 (“FIN 45”), “Guarantor’s Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of
Others.” The disclosure provisions of FIN 45 are effective for financial
statements of interim or annual periods that end after December 15, 2002. The
provisions for initial recognition and measurement are effective on a prospective
basis for guarantees that are issued or modified after December 31, 2002,
irrespective of a guarantor’s year-end. 
The adoption of this standard did not impact the Company’s financial
position, result of operations or cash flows.

 

13

 

In November 2002, the EITF 00-21 “Revenue
Arrangements with Multiple Deliverables” was released. The provisions of EITF
Issue No. 00-21 will apply to revenue arrangements entered into in fiscal
periods beginning after June 15, 2003. The Company has not yet determined the
impact of the adoption of EITF Issue No. 00-21 on its financial position,
result of operations or cash flows.

 

In December 2002, the FASB Issued Statement
No.148, “Accounting for Stock-Based Compensation -Transition and Disclosure -an
Amendment of FASB Statement No. 123,” (“SFAS 148”). SFAS 148 amends FASB
Statement No. 123, “Accounting for Stock Based Compensation” (“SFAS 123”) and
provides alternative methods for accounting for a change by registrants to the
fair value method of accounting for stock-based compensation. Additionally,
SFAS 148 amends the disclosure requirements of SFAS 123. The statement is
effective for fiscal years ending after December 15, 2002, and disclosures are
effective for the first fiscal quarter beginning after December 15, 2002. The
adoption of this standard did not impact the Company’s financial position,
result of operations or cash flows.

 

14

 

3

Balance
sheet data

 

Property
and equipment consist of the following

(in thousands of euros)

 

	
   

  	
   

  	
  At
  December 31,

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Office equipment

  	
   

  	
  803

  	
   

  	
  540

  	
   

  
	
  ERP-software

  	
   

  	
  1,435

  	
   

  	
  1,084

  	
   

  
	
  Total property and equipment

  	
   

  	
  2,238

  	
   

  	
  1,624

  	
   

  

 

Changes in property and equipment are as follows 

(in thousands of euros):

 

	
   

  	
   

  	
  Office

  equipment

  	
   

  	
  ERP-software

  	
   

  	
  Total

  	
   

  
	
  Book value
  January 1, 2002

  	
   

  	
  803

  	
   

  	
  1,435

  	
   

  	
  2,238

  	
   

  
	
  Additions, net

  	
   

  	
  311

  	
   

  	
  1,116

  	
   

  	
  1,427

  	
   

  
	
  Depreciation

  	
   

  	
  (574

  	
  )

  	
  (448

  	
  )

  	
  (1,022

  	
  )

  
	
  Write down

  	
   

  	
  —

  	
   

  	
  (1,019

  	
  )

  	
  (1,019

  	
  )

  
	
  Book
  value December 31, 2002

  	
   

  	
  540

  	
   

  	
  1,084

  	
   

  	
  1,624

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cost value

  	
   

  	
  2,614

  	
   

  	
  1,385

  	
   

  	
  3,999

  	
   

  
	
  Accumulated
  depreciation

  	
   

  	
  (2,074

  	
  )

  	
  (301

  	
  )

  	
  (2,375

  	
  )

  
	
  Book
  value December 31, 2002

  	
   

  	
  540

  	
   

  	
  1,084

  	
   

  	
  1,624

  	
   

  

 

In 2000 the Company selected an ERP-software solution. The latest phase
of the implementation has been completed May 1, 2002. The Company invested
EUR 496,000, EUR 1,001,000 and EUR 1,116,000 in the years 2000, 2001 and 2002,
respectively, for this technology.

 

During the last quarter of 2002 certain seperately identifiable components
of the ERP-software solution were written off as such components will no longer
be used by the Company. This write down was a direct result of the streamlining
and restructuring of the Company in which the Company’s three former divisions
have been integrated into a single organization with one software system. Total
impairment in connection with the write down of assets in this respect were EUR
1,019,000 of which EUR 655,000 was recorded as a restructuring charge and EUR
364,000 was recorded as a general and administrative expense (see Note 4).

 

Inventory consist of the following

(in thousands of euros)

 

	
   

  	
   

  	
  At
  December 31,

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Trade goods

  	
   

  	
  3,386

  	
   

  	
  2,911

  	
   

  
	
  Other

  	
   

  	
  796

  	
   

  	
  533

  	
   

  
	
  Total inventories

  	
   

  	
  4,182

  	
   

  	
  3,444

  	
   

  
	
  Provision

  	
   

  	
  (266

  	
  )

  	
  (308

  	
  )

  
	
  Total Inventories

  	
   

  	
  3,916

  	
   

  	
  3,136

  	
   

  

 

Prepaid
expenses and other current assets consists of the following

(in thousands of euros)

 

	
   

  	
   

  	
  At
  December 31,

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Prepaid ERP-
  software

  	
   

  	
  547

  	
   

  	
  —

  	
   

  
	
  Prepaid expenses

  	
   

  	
  1,068

  	
   

  	
  283

  	
   

  
	
  Other
  receivables

  	
   

  	
  1,721

  	
   

  	
  1,587

  	
   

  
	
  Total prepaid expenses and other
  current assets

  	
   

  	
  3,336

  	
   

  	
  1,870

  	
   

  

 

The Company will transfer the prepaid ERP-Software to property and
equipment and begin depreciation over a five year period after the ERP-Software
comes into use.

 

15

 

Accrued
liabilities consist of the following

(in thousands of euros)

 

	
   

  	
   

  	
  At
  December 31,

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Accrued payroll
  (bonus, vacation allowances)

  	
   

  	
  1,663

  	
   

  	
  1,791

  	
   

  
	
  Accrued taxes
  and social security premiums

  	
   

  	
  2,758

  	
   

  	
  1,806

  	
   

  
	
  Other accrued
  liabilities

  	
   

  	
  2,726

  	
   

  	
  1,616

  	
   

  
	
  Total accrued liabilities

  	
   

  	
  7,147

  	
   

  	
  5,213

  	
   

  

 

Other
long-term liabilities

(in thousands of euros)

 

	
   

  	
   

  	
  At
  December 31,

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Deferred gain on
  sale of building

  	
   

  	
  324

  	
   

  	
  173

  	
   

  
	
  Financial lease
  obligation

  	
   

  	
  678

  	
   

  	
  208

  	
   

  
	
  Long-term loan

  	
   

  	
  —

  	
   

  	
  344

  	
   

  
	
  Total other long-term liabilities

  	
   

  	
  1,002

  	
   

  	
  725

  	
   

  

 

In 1994, the Company sold a building in a sale leaseback transaction.
The deferred gain represents the difference between the sale price as agreed
upon by the Company with a third party and the acquisition price of the
building. The deferred gain is being amortized over the contractual lease term
of the building (10 years).The lease contract expires September 2004.

 

The Company entered into a loan agreement with Nationale
Nederlanden.  Redemption of the loan is
in three annual installments until the year 2005.  Interest on the loan accures 4%.

 

4

Restructuring

 

The Company applies the criteria defined in
Emerging Issues Task Force consensus (EITF) 94-3, “Liability Recognition for
Certain Employee Termination Benefits and Other Costs to Exit an Activity
(including Certain Costs Incurred in a Restructuring)”, in determining when a
liability for restructuring or exit costs should be recognized. With respect to
employee termination costs, authorized plans that have been communicated to the
employees involved in a sufficient level of detail for them to estimate their
termination benefits. Other exit costs include write down of certain assets and
unused leasehold facilities. Related costs are determined based on expected
settlement fees and commited payments, taking into account future potential
benefits, if any, from those commitments.

 

The Company applies Statement of Financial Accounting Standards (SFAS)
No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”.

 

The Management Board, with the approval of the Supervisory Board,
further streamlined and restructured the Company in the last quarter of 2002.
Legally, financially and organizationally, the Company’s three former divisions
were integrated into a single organization. 
As a result of this restructuring, the Company incurred a restructuring
charge of EUR 1,370,000 for the impairment of certain unused assets, the
termination of employee contracts and unused leasehold facilities.  As
a result of these measures the Company’s annual fixed costs are expected to
decrease by about EUR 1.5 million commencing in the 2003 fiscal year.  A discussion of the components of
restructuring charge follows.

 

Impairment
of certain assets

The Company’s three former divisions have been integrated into a single
organization with one software system. As a result the Company has written down
the seperately identifiable elements of the ERP-system that will no longer be
used. Total losses incurred in 2002 in connection with the write down of assets
as a direct result of the restructuring were EUR 655,000.

 

16

 

Employee
contract termination

In connection with the restructuring the Company decided to terminate
29 employee contracts. The total amount provided for and charged to expense in
2002 with respect to this reduction in workforce force was EUR 550,000
which is included in the restructuring reserve at December 31, 2002.  Payments related to employee contract
termination are foreseen in 2003.

 

Unused
leasehold facilities

As a result of the reduction in workforce of 29 employees in
December 2002, the Company now has vacant office space in its main
building. The Company conducted a formal evaluation of the situation based on
which management recorded a provision of EUR 165,000 as part of their 2002
restructuring charge and included in the restructing reserve at
December 31, 2002. The amount is based on an estimated period of one year
for finding a new sub-lessee.

 

5

Discontinued
operations and divestitures

 

During the year 2001, the Company divested its ITC independent training
center business. This divestiture had no significant impact on the results of
operations. At the same time the Company decided to stop financing its US
subsidiary, Triple P USA Inc.  As a
result of this decision the Company no longer transfers cash to the US
subsidiary.  In July 2002 the
Company began the process to legally dissolve the subsidiary which is expected
to be finalized in the second quarter of 2003. Management believes that no
reserve is necessary in connection with possible liabilities related to Triple
P USA Inc. as all known liabilities have been settled.

 

In December 2001, the Company decided to discontinue operations of
its Belgian subsidiary, Triple P Belgium N.V./SA. As a result of this decision
the company no longer serves any customer in the Belgian healthcare market. The
Company provided for the estimated loss on disposal of the discontinued Belgian
operations an amount of EUR 628,000 representing EUR 578,000 net asset value of
the Belgian subsidiary and EUR 50,000 estimated disposal expense. On
February 11, 2002 the Company sold its Belgian subsidiary to the Belgian
management. In 1997, the Company issued a guarantee to a customer of Triple P
Belgium N.V./SA.  The sale and purchase
agreement, provided that Triple P N.V. will be subrogated by Triple P Belgium
N.V./SA in connection with this guarantee. During 2002, the Company was informed
by the Belgian management that the customer accepted the project and
accordingly paid the final installment. Although management believes that based
on current estimates no provision for potential liabilities is necessary,
future events could require management to make adjustments for revisions to
these estimates.

 

The consolidated financial statements of the Company for fiscal years
2000 and 2001 have been reclassified to account for the disposal of the Belgian
subsidiary as discontinued operations. Accordingly, the net revenues, costs and
expenses, assets and liabilities and cash flows associated with the
discontinued operations have been excluded from the respective captions in the
accompanying consolidated balance sheet, statement of operations and statement
of cash flows.

 

The following table includes assets and liabilities of discontinued
operations which have been excluded from the respective captions in the
accompanying consolidated balance sheet (in thousands of euros):

 

	
   

  	
   

  	
  At
  December 31,

  2001

  	
   

  
	
  Total assets

  	
   

  	
   

  	
   

  
	
  Current assets:

  	
   

  	
   

  	
   

  
	
  Cash

  	
   

  	
  820

  	
   

  
	
  Accounts
  receivable, net

  	
   

  	
  597

  	
   

  
	
  Inventories

  	
   

  	
  155

  	
   

  
	
  Prepaid expenses
  and other current assets

  	
   

  	
  288

  	
   

  
	
  Total current
  assets

  	
   

  	
  1,860

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Non-current
  assets:

  	
   

  	
   

  	
   

  
	
  Property and
  equipment, net

  	
   

  	
  165

  	
   

  
	
  Total
  non-current assets

  	
   

  	
  165

  	
   

  
	
  Total assets

  	
   

  	
  2,025

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities

  	
   

  	
   

  	
   

  
	
  Current
  liabilities:

  	
   

  	
   

  	
   

  
	
  Accounts payable

  	
   

  	
  421

  	
   

  
	
  Accrued
  liabilities

  	
   

  	
  788

  	
   

  
	
  Customer
  deposits

  	
   

  	
  —

  	
   

  
	
  Deferred revenue

  	
   

  	
  434

  	
   

  
	
  Total current
  liabilities

  	
   

  	
  1,643

  	
   

  
	
  Total liabilities

  	
   

  	
  1,643

  	
   

  

 

17

 

Total net sales and operating results of the Belgian subsidiary prior
to the date of discontinuance were EUR 8.0 million and EUR (0.4 million)
respectively for the year ended December 31, 2001 and EUR 9.2 million and
EUR 0.3 million respectively fot the year ended December 31, 2000.

 

In the first quarter of 2002 the Company disposed of its interest in
the Belgian subsidiary. No expenses were incurred other than the expenses
accrued for at December 31, 2001. As of December 31, 2002 there were
no remaining assets or liabilities for discontinued operations.

 

6

Borrowing
arrangements

 

Short-term
borrowings

The Company has an euro denominated revolving credit facility agreement
with IFN Finance B.V. (ABN-AMRO) whereby the Company may borrow up to 70%
of eligible accounts receivable. Borrowings under this facility are secured by
the Company’s accounts receivable. Borrowings are subject to a maintenance
covenant requiring the ratio of equity to total assets equal at least 15%. IFN
Finance issued a waiver for this maintenance covenant allowing the Company to
exceed the 15% solvency ratio by December 31, 2003, in exchange for a
potential higher interest rate on outstanding loan amounts. Interest on such
borrowings accrues at the European Central Bank’s discount rate plus 1.5% with
a minimum of 5.25% and is payable monthly. In addition, the Company pays a
basic fee of 0.075% of total net revenues including VAT. This credit agreement,
which took effect May 18, 2000, was renewed in May 2001 for a period
of one year with an automatic renewal for a period of one year. The agreement
may be terminated at the end of each period by either party upon
expiration of a 90-day notice period.

 

As of December 31, 2001 and 2002, no amounts were outstanding
under this facility with IFN Finance B.V.

 

7

Commitments
and contingencies

 

Capital
leases

The Company and its subsidiaries lease their ERP-software including
implementation expense under a capital lease with a lease term of three years
that will expire in 2004. Interest on the capital leases accrues between 5.809%
and 7.695%.

 

The following table gives an analysis of
assets under capital lease

(in thousands of euros):

 

	
   

  	
   

  	
  At
  December 31,

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Equipment at
  cost

  	
   

  	
  1,497

  	
   

  	
  1,497

  	
   

  
	
  Accumulated
  depreciation

  	
   

  	
  62

  	
   

  	
  772

  	
   

  
	
  Net book value

  	
   

  	
  1,435

  	
   

  	
  725

  	
   

  

 

18

 

The following table gives the future minimum
lease payments for the above capital leases (in thousands of euros):

 

	
   

  	
   

  	
  At
  December 31,

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  2002

  	
   

  	
  547

  	
   

  	
  —

  	
   

  
	
  2003

  	
   

  	
  501

  	
   

  	
  501

  	
   

  
	
  2004

  	
   

  	
  214

  	
   

  	
  214

  	
   

  
	
  Total minimum
  lease obligations

  	
   

  	
  1,262

  	
   

  	
  715

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest

  	
   

  	
  99

  	
   

  	
  37

  	
   

  
	
  Present value of minimum
  obligations

  	
   

  	
  1,163

  	
   

  	
  678

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital lease
  obligations

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current

  	
   

  	
  485

  	
   

  	
  470

  	
   

  
	
  Non-current

  	
   

  	
  678

  	
   

  	
  208

  	
   

  
	
  Total

  	
   

  	
  1,163

  	
   

  	
  678

  	
   

  

 

Operating
leases

The Company and its subsidiaries lease their current facilities and
automobiles under operating leases that expire at various dates through the
year 2007. Part of the leasehold facilities are sub-leased.

 

Total gross rent expense for the years ended December 31, 2000,
2001 and 2002 was approximately EUR 4,444,000, EUR 3,727,000 and EUR
4,365,000, respectively. Total income from sub-leases for the years ended
December 31, 2000, 2001 and 2002 was approximately EUR 712,000, EUR
422,000 and EUR 373,000 respectively. 
Total net rent expense for the years ended December 31, 2000, 2001
and 2002 were approximately EUR 3,732,000, EUR 3,305,000 and EUR 3,993,000.

 

Future minimum annual rental payments under
non-cancelable operating leases as of December 31, 2002 (in
thousands of euros):

 

	
   

  	
   

  	
  Gross

  	
   

  	
  Sub-leased

  	
   

  	
  Net

  	
   

  
	
  2003

  	
   

  	
  3,733

  	
   

  	
  394

  	
   

  	
  3,339

  	
   

  
	
  2004

  	
   

  	
  2,546

  	
   

  	
  273

  	
   

  	
  2,273

  	
   

  
	
  2005

  	
   

  	
  1,230

  	
   

  	
  327

  	
   

  	
  903

  	
   

  
	
  2006

  	
   

  	
  789

  	
   

  	
  327

  	
   

  	
  462

  	
   

  
	
  2007

  	
   

  	
  382

  	
   

  	
  218

  	
   

  	
  164

  	
   

  
	
  Thereafter

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  8,680

  	
   

  	
  1,539

  	
   

  	
  7,141

  	
   

  

 

Guarantees

The guarantees provided by the Company and its subsidiaries on behalf
of third parties amount to EUR 545,000 and relate to bank guarantees issued for
lease commitments and rental contracts.

 

The following table summarizes the Company’s guarantees and its
expiration dates (in thousands of euros):

 

At December 31, 2002

 

	
   

  	
   

  	
  Total
  Amount

  	
   

  	
  < 1
  year

  	
   

  	
  1-3 years

  	
   

  	
  4-5 years

  	
   

  	
  > 5
  years

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Guarantees

  	
   

  	
  545

  	
   

  	
  48

  	
   

  	
  312

  	
   

  	
  175

  	
   

  	
  10

  	
   

  

 

Litigation

The Company is engaged as plaintiff or defendant in several lawsuits in
The Netherlands and Belgium originating before 2002. Although the Company
vigorously defends against these claims it maintains reserves to an amount of
approximately EUR 513,000 for specific lawsuits as a matter of

 

19

 

course, which represent estimates of its probable liabilities with
respect to these specific claims. The Company does not believe that based on
current judgement and estimates the outcome in any of these lawsuits
individually or in the aggregate would have a material adverse impact on the
Company’s business, results of operations or financial condition. As this
litigation may take several years to complete future events could require
management to make significant adjustments for revisions to these estimates.

 

8

Employee
benefit plan

 

The Company has a defined benefit pension plan and a defined
contribution pension plan.

 

Defined
Benefit Plan

Under the Company’s plan, employee benefits are based on length of
service and final yearly pay reduced by government provided retirement
benefits. The weighted average discount rate used in determining the actuarial
present value of projected benefit obligations was 6%, 5.75% and 5.25% for
2000, 2001 and 2002, respectively. The assumed long-term rate of return on
assets was 6%, 5% and 5% for 2000, 2001 and 2002, respectively. The estimated
future salary increase was on average 3% for 2000, 2001 and 2002.

 

Funded status of the Company’s defined
benefit plan is as follows:

(in thousands of euros):

 

	
   

  	
   

  	
  At
  December 31,

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Vested benefit
  obligations

  	
   

  	
  3,245

  	
   

  	
  3,841

  	
   

  
	
  Non-vested
  benefit obligations

  	
   

  	
  1

  	
   

  	
  —

  	
   

  
	
  Accumulated
  benefit obligations

  	
   

  	
  3,246

  	
   

  	
  3,841

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Projected
  benefit obligations for services rendered to date

  	
   

  	
  3,433

  	
   

  	
  4,064

  	
   

  
	
  Less: Plan
  assets at fair value, primarily debt-securities

  	
   

  	
  3,592

  	
   

  	
  3,813

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Projected
  benefit obligations in excess of (less than) plan assets

  	
   

  	
  (159

  	
  )

  	
  251

  	
   

  
	
  Unrecognized
  transition gain (loss)

  	
   

  	
  (99

  	
  )

  	
  (83

  	
  )

  
	
  Unrecognized
  actuarial profit

  	
   

  	
  448

  	
   

  	
  91

  	
   

  
	
  Net pension liability

  	
   

  	
  190

  	
   

  	
  259

  	
   

  

 

Net pension plan costs are
as follows:

(in thousands of euros):

 

	
   

  	
   

  	
  At
  December 31,

  	
   

  
	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Service cost

  	
   

  	
  60

  	
   

  	
  36

  	
   

  	
  40

  	
   

  
	
  Interest cost on
  projected benefit obligations

  	
   

  	
  219

  	
   

  	
  183

  	
   

  	
  201

  	
   

  
	
  Actual return on
  plan assets

  	
   

  	
  (216

  	
  )

  	
  (159

  	
  )

  	
  (182

  	
  )

  
	
  Other, net

  	
   

  	
  (33

  	
  )

  	
  (12

  	
  )

  	
  (9

  	
  )

  
	
  Net pension cost

  	
   

  	
  30

  	
   

  	
  48

  	
   

  	
  68

  	
   

  

 

Changes in projected benefit
obligations are as follows:  (in
thousands of euros):

 

	
   

  	
   

  	
  At
  December 31,

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Projected
  benefit obligations at beginning of year

  	
   

  	
  3,482

  	
   

  	
  3,433

  	
   

  
	
  Service cost

  	
   

  	
  36

  	
   

  	
  79

  	
   

  
	
  Interest cost

  	
   

  	
  183

  	
   

  	
  201

  	
   

  
	
  Plan
  participants contributions

  	
   

  	
  39

  	
   

  	
  —

  	
   

  
	
  Actuarial
  (gains)/losses

  	
   

  	
  148

  	
   

  	
  351

  	
   

  
	
  Benefits paid

  	
   

  	
  (30

  	
  )

  	
  —

  	
   

  
	
  Other

  	
   

  	
  (425

  	
  )

  	
  —

  	
   

  
	
  Projected benefit obligations at
  end of year

  	
   

  	
  3,433

  	
   

  	
  4,064

  	
   

  

 

20

 

Changes in plan assets are
as follows:

(in thousands of euros):

 

	
   

  	
   

  	
  At December 31,

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Plan assets at
  beginning of year

  	
   

  	
  3,154

  	
   

  	
  3,592

  	
   

  
	
  Actual return on
  plan assets

  	
   

  	
  181

  	
   

  	
  182

  	
   

  
	
  Employer
  contributions

  	
   

  	
  785

  	
   

  	
  —

  	
   

  
	
  Plan
  participants contributions

  	
   

  	
  39

  	
   

  	
  39

  	
   

  
	
  Benefits paid

  	
   

  	
  (30

  	
  )

  	
  —

  	
   

  
	
  Other

  	
   

  	
  (537

  	
  )

  	
  —

  	
   

  
	
  Plan assets at end of year

  	
   

  	
  3,592

  	
   

  	
  3,813

  	
   

  

 

Other changes in Projected benefit obligations and Plan assets are
related to the former Aegon plan which was settled in 2001.  No future liabilities exist to this plan.

 

Defined
contribution plan

The Company changed the major portion of its pension plan from defined
benefit to defined contribution in 1999. Under the Company’s defined
contribution plan the employer contribution is based on the age of employees
and final yearly pay reduced by government provided retirement benefits (gross
pension salary). The employers contribution varies between 5.5% and 19.5% of
gross pension salaries, increasing with the age of employees.

 

Under this plan the Company contributed EUR 550,000, EUR 491,000 and
EUR 658,000 in 2000, 2001 and 2002, respectively.  The increase in 2002 payments were related to 2002 and 2001
pension premiums.

 

9

Stock
option plans

 

The Company reserved an aggregate of 2,500,000 common shares for
issuance under its 1996 Stock Option Plan for employees (the ‘Employee Plan’).The
Employee Plan provides for the grant of options to employees (including
officers) and consultants of the Company and its affiliates. The Employee Plan
provides that the exercise price of options granted under the Plan shall be
100% of the average fair market value of the common shares during a period of
five trading days prior to the date of grant plus 0%, 10%, 20% or 30% at the
optionee’s choice. The exercise price is determined at date of grant. All
options under the plan are immediately exercisable.The maximum term of an
option granted under the Employee Plan is five years from the date of grant.
Resale to third parties of shares purchased through exercise of an option
granted under the Employee Plan is restricted. Only 25% of such shares may be
sold in the year following the date the option was granted and in each of the
three years following the first anniversary of the date of grant the optionee
gains the right to sell an additional 25% of the shares covered by the option.
In the event of termination of an optionee’s employment or consulting
arrangement, all options that have not been exercised terminate. The Emplyee
Plan will terminate in September 2005.

 

The Company reserved 200,000 common shares for issuance under its 1995
Director Option Plan (the ‘Director Plan’). The Director Plan provides for
automatic grants of stock options to Supervisory Directors of the Company. Each
person who becomes a Supervisory Director after September 1995, other than
individuals who immediately prior thereto served as a Chief Executive Officer
of the Company automatically are granted an option to purchase 5,000 common
shares of the Company (a ‘First Option’). In addition, each Supervisory
Director is automatically granted an option to purchase 10,000 common shares (a
‘Subsequent Option’) on January 1 of each year, provided that he or she has
served on the Board for at least three months as of that date. All options
granted under the Director Plan are exercisable immediately. Under the terms of
the Director Plan, the exercise price of options granted to Supervisory
Directors is 100% of the average fair market value of the common shares on the
date of grant. Shares purchased upon exercise of a Subsequent Option are
subject to a repurchase right. The Company may repurchase at the exercise price
of the Subsequent Option any shares purchased by the optionee pursuant to the
Subsequent Option if the optionee ceases to 

 

21

 

be a Supervisory Director of the Company.This repurchase right lapses
as to one twelfth of the shares subject to the Subsequent Option for each month
that passes after date of grant of the Subsequent Option so long as the
optionee remains a Director. All options granted under the Director Plan have a
term of five years. In the event of termination of an optionee’s status as a
Director, the optionee may exercise his or her remaining options within 90 days
of the termination date (or 12 months in the case of termination as a result of
death or disability), but in no event later than the expiration date of any
such option. The Director Plan will terminate in September 2005.

 

At December 31, 2002, options to purchase 906,627 common shares are
outstanding, comprising 891,627 options under the Employee Plan and 15,000
options under the Director Plan.

 

Option activity under both Plans is as
follows:

 

	
   

  	
   

  	
  Number of

  Shares

  	
   

  	
  Outstanding
  Options

  Weighted Average

  Exercise Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  US$

  	
   

  
	
  Balance as of 1
  January 1999

  	
   

  	
  1,609,078

  	
   

  	
  2.34

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exercised

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  Forfeited

  	
   

  	
  (148,220

  	
  )

  	
  2.52

  	
   

  
	
  Expired

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  Granted

  	
   

  	
  229,280

  	
   

  	
  1.80

  	
   

  
	
  Balance as of 31
  December 2000

  	
   

  	
  1,690,138

  	
   

  	
  2.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exercised

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  Forfeited

  	
   

  	
  (939,913

  	
  )

  	
  2.33

  	
   

  
	
  Expired

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  Granted

  	
   

  	
  226,500

  	
   

  	
  0.98

  	
   

  
	
  Balance as of 31
  December 2001

  	
   

  	
  976,725

  	
   

  	
  1.87

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exercised

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Forfeited

  	
   

  	
  (416,798

  	
  )

  	
  1.77

  	
   

  
	
  Expired

  	
   

  	
  (216,325

  	
  )

  	
  2.11

  	
   

  
	
  Granted

  	
   

  	
  563,025

  	
   

  	
  0.82

  	
   

  
	
  Balance as of 31
  December 2002

  	
   

  	
  906,627

  	
   

  	
  1.21

  	
   

  

 

 

	
  Range of

  Exercise

  Prices US$

  	
   

  	
  Number

  Outstanding at

  31 December 2002

  	
   

  	
  Weighted

  Average

  Remaining Life

  	
   

  	
  Weighted

  Average Exercise

  Price US$

  	
   

  
	
  0.50 - 0.99

  	
   

  	
  629,247

  	
   

  	
  3.10

  	
   

  	
  0.87

  	
   

  
	
  1.00 - 1.49

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  1.50 - 1.99

  	
   

  	
  225,880

  	
   

  	
  1.56

  	
   

  	
  1.82

  	
   

  
	
  2.00 - 2.49

  	
   

  	
  32,500

  	
   

  	
  0.98

  	
   

  	
  2.40

  	
   

  
	
  2.50 - 2.99

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  3.00 - 3.99

  	
   

  	
  19,000

  	
   

  	
  0.55

  	
   

  	
  3.62

  	
   

  
	
  0.50 - 3.99

  	
   

  	
  906,627

  	
   

  	
  2.59

  	
   

  	
  1.21

  	
   

  

 

All options granted under the plans are exercisable immediately.

 

22

 

As permitted under FAS 123, the Company has elected to follow APB
Opinion No. 25 and related interpretations in accounting for stock-based awards
to employees. Under APB 25, the Company has recorded no compensation expense
because at the grant date of the option the fair value of the underlying shares
is equal to or less than the exercise price. Pro forma information regarding
net income and net income per share is required by FAS 123 for awards granted
after June 30, 1995, as if the Company had accounted for its stock-based awards
to employees under the fair value method of FAS 123. The Company’s net income
and net income per share would have decreased to the following pro forma
amounts if compensation cost for stock options granted under the Employee Plan
had been recorded based on the fair value method at the grant dates.

 

	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Net Income (in
  thousands of euros):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  As reported
  after preferred stock dividend

  	
   

  	
  4,081

  	
   

  	
  2,215

  	
   

  	
  (520

  	
  )

  
	
  Deduct: Total
  stock based compensation expense under the fair value method for all awards

  	
   

  	
  280

  	
   

  	
  146

  	
   

  	
  144

  	
   

  
	
  Pro Forma

  	
   

  	
  3,801

  	
   

  	
  2,069

  	
   

  	
  (664

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income per share
  (euros)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Basic and
  diluted (1) as reported

  	
   

  	
  0.13

  	
   

  	
  0.07

  	
   

  	
  (0.02

  	
  )

  
	
  Basic and
  diluted (1) Pro Forma

  	
   

  	
  0.12

  	
   

  	
  0.07

  	
   

  	
  (0.02

  	
  )

  

 

(1)   Options to purchase 1,690,138,  976,725 and 906,627 shares of common stock
were outstanding as of December 31, 2000, 2001 and 2002 respectively.These
shares were not included in the computation of diluted earnings per share as
the options’ exercise price was greater than the commom shares’ average market
price.

 

The fair value of the Company’s stock option awards to employees was
estimated using the Black-Scholes option-pricing model assuming no dividends
and the following weighted-average assumptions:

 

	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Expected life
  (in years)

  	
   

  	
  4.60

  	
   

  	
  4.40

  	
   

  	
  4.03

  	
   

  
	
  Expected stock
  price volatility rate

  	
   

  	
  80.0

  	
  %

  	
  80.0

  	
  %

  	
  76.5

  	
  %

  
	
  Risk-free
  interest rate

  	
   

  	
  5.30

  	
  %

  	
  4.50

  	
  %

  	
  4.50

  	
  %

  

 

For options granted in the twelve months ended 31 December 2002, with
an exercise price equal to market price of the shares at grant date, the
weighted average exercise price and fair value at grant date were estimated at
US$ 0.76 and US$ 0.49, respectively. For options granted in the twelve months
ended 31 December 2002 with an exercise price greater than the market price of
the shares at grant date, the weighted average exercise price and fair value at
grant date were estimated at US$ 0.82 and US$ 0.47, respectively.

 

10

Income
Taxes

 

Income (loss) from continuing operations
before income taxes is as follows

(in thousands of euros)

 

	
   

  	
   

  	
  At December 31,

  	
   

  
	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  The Netherlands

  	
   

  	
  4,733

  	
   

  	
  4,266

  	
   

  	
  (520

  	
  )

  
	
  Rest of world

  	
   

  	
  2

  	
   

  	
  (20

  	
  )

  	
  —

  	
   

  
	
  Income (loss) before income taxes

  	
   

  	
  4,735

  	
   

  	
  4,246

  	
   

  	
  (520

  	
  )

  

 

23

 

Effective tax rate of continuing operations
is as follows

(in thousands of euros)

 

	
   

  	
   

  	
  At December 31,

  	
   

  
	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Pretax income
  (loss) from continuing operations

  	
   

  	
  4,735

  	
   

  	
  4,246

  	
   

  	
  (520

  	
  )

  
	
  Statutory tax
  rate

  	
   

  	
  35

  	
  %

  	
  35

  	
  %

  	
  34.5

  	
  %

  
	
  Tax expense
  (income) at statutory rate

  	
   

  	
  1,657

  	
   

  	
  1,486

  	
   

  	
  (179

  	
  )

  
	
  Change in
  valuation allowance

  	
   

  	
  (1,657

  	
  )

  	
  (1,486

  	
  )

  	
  179

  	
   

  
	
  Tax expense from
  continuing operations

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Effective tax
  rate

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  	
  0

  	
  %

  

 

Deferred tax asset is as follows

(in thousands of euros)

 

	
   

  	
   

  	
  At
  December 31,

  	
   

  
	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Net operating
  loss carry forward

  	
   

  	
  23,687

  	
   

  	
  19,950

  	
   

  	
  23,066

  	
   

  
	
  Statutory tax
  rate

  	
   

  	
  35

  	
  %

  	
  35

  	
  %

  	
  34.5

  	
  %

  
	
  Gross deferred
  tax asset

  	
   

  	
  8,290

  	
   

  	
  6,983

  	
   

  	
  7,958

  	
   

  
	
  Valuation
  allowance

  	
   

  	
  (7,836

  	
  )

  	
  (6,529

  	
  )

  	
  (7,504

  	
  )

  
	
  Net deferred tax
  asset

  	
   

  	
  454

  	
   

  	
  454

  	
   

  	
  454

  	
   

  

 

The provision for income taxes is calculated based on the statutory tax
rate of the applicable fiscal entities for the years ended December 31, 2000,
2001 and 2002. These calculations consider the relevant local regulations for
non-tax deductible items.

 

The operating loss carry forwards available at December 31, 2002 relate
to entities in The Netherlands. The statutory tax rate for The Netherlands is
34.5%. The effective tax rate for the Company is 0%.  In 2000 and 2001 the difference between the statutory tax rate
and the effective tax rate is primarily caused by utilization of the tax loss
carryforwards.  In 2002, the difference
between the statutory rate and the effective tax rate was caused by the
establishment of additional tax loss carry forwards.

 

The utilization of the Company’s tax loss carryforwards is subject to
various local conditions and regulations including, in many cases, the
requirement that the entity utilizing the tax loss carry forwards be the entity
that incurred the tax losses. The net operating loss carryforwards have no
expiration date.

 

Management has evaluated evidence impacting the realizibility of its
deferred tax assets, which primarily consists of net operating loss carry
forwards. Management has considered the Company’s history and forecasts for the
future and concluded that it is more likely than not that benefits of these tax
loss carryforwards exceeding EUR 454,000 will not be realized in the near term.
As a result the company recorded a valuation allowance for the deferred tax
assets exceeding EUR 454,000. The deferred tax asset is accounted for under
accrued taxes and social security premiums (see footnote 3).

 

11

Capital
stock withdrawal

 

On August 21, 1997 the Company completed the sale in a private
placement of 6,380,000 common shares and 24,000,000 Preferred shares
aggregating EUR 22.7 million. The net proceeds of the financing were used to
fund costs associated with the September 1996 and June 1997 restructurings,
reduce bank indebtedness and increase equity and working capital.

 

At December 31, 2001, there were 24,000,000 Preferred shares
outstanding with no stated term. Each Preferred Share was entitled to a
cumulative annual dividend of approximately EUR 0.04 and was entitled to cast
one vote at meetings of the Company’s shareholders.The holders of the Preferred
Shares had no right to require redemption of such shares. Subsequent to the
issuance of the Preferred Shares the Company was granted an irrevocable offer
by the investor to withdraw the Preferred Shares at any time for an amount
equal to EUR 10.9 million plus (i) accrued and unpaid

 

24

 

dividends to the date of withdrawal, and (ii) a withdrawal premium of
EUR 0.45 million. Upon redemption of the Preferred Shares, the Investor Call
Option, as defined below, would have been terminated upon payment of EUR 0.45
million. Upon the dissolution or liquidation of the Company, the holder of
Preferred Shares would have been entitled to payment, after satisfaction of the
Company’s debts and before payment of any other class of capital stock, of an
amount equal to EUR 0.45 per share plus any accumulated and unpaid dividends
for the then current year and any prior years. In addition, the Company issued
to the investor purchasing the Preferred Shares an option (the ‘Investor Call
Option’) to purchase 360,000 shares of newly issued common stock, representing
90% of the outstanding shares of common stock of the Company’s Triple P
Nederland B.V. subsidiary (‘TPN’). The option would have expired August 26,
2002. TPN owns a substantial majority of the assets of the Company and
generates a substantial portion of the Company’s net revenues and net income.
The Investor Call Option provided that the investor had the right to purchase
such 360,000 shares of TPN for an aggregate purchase price of EUR 1.8 million.
The Investor Call Option could have been exercised in full at any time without
restrictions upon observance of the three months notice period. In addition, if
the investor exercised the Investor Call Option, the investor had the right to
sell all shares of TPN. In such event, the Company had the option (the ‘Put
Option’) to require the investor to purchase the remaining 10% of the shares of
TPN held by the Company. The aggregate purchase price that the investor was
obligated to pay under the Put Option would be determined pursuant to a formula
based upon the proceeds of the sale of all TPN shares.

 

In 2001 Triple P N.V. effected a financial restructuring. The Company
withdrew all outstanding Preferred Shares on August 1, 2001 for an aggregate
EUR 11.8 million, representing paid-in capital of EUR 10.9 million, an agreed
upon withdrawal premium of EUR 0.45 million and EUR 0.45 million for the
cancellation of the Investor Call Option. The Company financed this withdrawal
with available surplus cash and by borrowings from its revolving credit
facility. By withdrawing these Preferred Shares Triple P N.V. eliminated its
obligation to pay a yearly dividend of EUR 1.0 million on the Preferred Shares.
As per December 31, 2001, the Company has the obligation to pay a preferred
dividend of EUR 572,000 related to the year 2001. This preferred dividend was
included in shareholders’ equity as per December 31, 2001.

 

During 2002 the Company paid the final installment of preferred
dividend related to 2001 of EUR 572,000 to the former holders of Preferred
Shares.

 

As of December 31, 2002 the Company has authorized 43,750,000 Common
Shares and 19,750,000 Preferred Shares and as of that date 30,469,345 Common
Shares and no Preferred Shares were outstanding.

 

12

Segment
information

 

The Company operates in the Information and Communication Technology
(‘ICT’) industry offering computing and network products (‘Systems’), providing
consulting, project management and implementation services as well as
operational management and maintenance services (‘Services’) and offering
software licenses (‘Software’) to customers located primarily in The
Netherlands.

 

The Company evaluates performance based on several factors. Primary
financial measures are net revenues and operating income. The accounting
policies of the segments are the same as those described in the summary of
significant accounting policies in Note 2 of the Notes to the Consolidated
Financial Statements.

 

25

 

Summarized financial information concerning the Company’s reportable
segments is as follows

(in millions of euros, except number of employees)

 

	
   

  	
   

  	
  Year ended December 31,

  	
   

  
	
   

  	
   

  	
  2000

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  
	
  Net revenues

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Systems &
  Networks

  	
   

  	
  87.5

  	
   

  	
  79.1

  	
   

  	
  66.4

  	
   

  
	
  Services

  	
   

  	
  24.1

  	
   

  	
  26.0

  	
   

  	
  24.9

  	
   

  
	
  Software &
  Systems Integration

  	
   

  	
  10.8

  	
   

  	
  5.8

  	
   

  	
  5.1

  	
   

  
	
  Total Company

  	
   

  	
  122.4

  	
   

  	
  110.9

  	
   

  	
  96.4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating income

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Systems &
  Networks

  	
   

  	
  3.4

  	
   

  	
  1.4

  	
   

  	
  0.3

  	
   

  
	
  Services

  	
   

  	
  3.8

  	
   

  	
  3.3

  	
   

  	
  3.0

  	
   

  
	
  Software &
  Systems Integration

  	
   

  	
  (0.7

  	
  )

  	
  0.2

  	
   

  	
  (0.2

  	
  )

  
	
  Corporate

  	
   

  	
  (1.2

  	
  )

  	
  (0.4

  	
  )

  	
  (3.0

  	
  )

  
	
  Total Company

  	
   

  	
  5.3

  	
   

  	
  4.5

  	
   

  	
  0.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number of Employees

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Systems &
  Networks

  	
   

  	
  134

  	
   

  	
  115

  	
   

  	
  86

  	
   

  
	
  Services

  	
   

  	
  251

  	
   

  	
  242

  	
   

  	
  242

  	
   

  
	
  Software &
  Systems Integration

  	
   

  	
  85

  	
   

  	
  62

  	
   

  	
  49

  	
   

  
	
  Corporate

  	
   

  	
  31

  	
   

  	
  27

  	
   

  	
  25

  	
   

  
	
  Total Company

  	
   

  	
  501

  	
   

  	
  446

  	
   

  	
  402

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Systems &
  Networks

  	
   

  	
  16.7

  	
   

  	
  12.9

  	
   

  	
  8.9

  	
   

  
	
  Services

  	
   

  	
  6.1

  	
   

  	
  8.7

  	
   

  	
  7.4

  	
   

  
	
  Software &
  Systems Integration

  	
   

  	
  3.0

  	
   

  	
  2.2

  	
   

  	
  3.2

  	
   

  
	
  Corporate

  	
   

  	
  11.5

  	
   

  	
  2.1

  	
   

  	
  3.5

  	
   

  
	
  Discontinued
  operations

  	
   

  	
  2.7

  	
   

  	
  2.0

  	
   

  	
  —

  	
   

  
	
  Total Company

  	
   

  	
  40.0

  	
   

  	
  27.9

  	
   

  	
  23.0

  	
   

  

 

The Company only operates in the geographical area of the Benelux.

 

26

 

Schedule II

 

Valuation and qualifiying accounts

(in thousands of euros)

 

	
   

  	
   

  	
  Balance at

  beginning of period

  	
   

  	
  Charged to
  cost

  and expenses

  	
   

  	
  Deductions
  and

  write-offs

  	
   

  	
  Balance at
  end

  of period

  	
   

  
	
  Year ended December 31, 2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Allowances for
  doubtful receivables, trade

  	
   

  	
  1,108

  	
   

  	
  913

  	
   

  	
  (284

  	
  )

  	
  1,737

  	
   

  
	
  Year ended December 31, 2001

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Allowances for
  doubtful receivables, trade

  	
   

  	
  1,737

  	
   

  	
  316

  	
   

  	
  (898

  	
  )

  	
  1,155

  	
   

  
	
  Year ended December 31, 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Allowances for
  doubtful receivables, trade

  	
   

  	
  1,155

  	
   

  	
  268

  	
   

  	
  (221

  	
  )

  	
  1,202

  	
   

  

 

27Exhibit 10.2

 

CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350,

 

AS
ADOPTED PURSUANT TO

 

SECTION
906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the annual report on Form
20-F of Triple P N.V. (the “Company”) for the period ended December 31, 2002 as
filed with the Securities and Exchange Commission on the date hereof (the
“Report”), the undersigned Robert Pijselman, Chief Executive Officer of the
Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that:

 

(1)          the Report fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934;
and

 

(2)          the information contained in the Report
fairly presents, in all material respects, the financial condition and results
of operation of the Company.

 

 

	
  Dated:   May 28, 2003

  	
  /s/ R.E. Pijselman

  	
   

  
	
   

  	
  R.E. Pijselman

  
	
   

  	
  Chief Executive Officer

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