Hi, everyone. This is Jan Häglund, CEO of Enea, and I'm sitting here in Kista, our head offices of Enea with Ola Burmark, our CFO. We will be summarizing the Q4 2021 as well as the full- year for you this morning. We will be summarizing the key events. I'll give you some details on the deals that we have won and taken in the quarter. Ola will walk us through some details of the financial results, and I'll wrap up in the end with a recap of our strategy and way forward. On page three, we summarize the financial result of the Q4 as well as for the full year 2021. The Q4 net sales came in at SEK 279 million, a 13% increase on the same period last year.
We delivered a strong operating margin of 29.8% corresponding to SEK 83 million of operating profit, excluding non-recurring items. Earnings per share came out at 2.54. Operating cash flow also strong, significantly stronger than in the previous quarter this year, came in at SEK 142 million. As an innovation company, we continue to invest in R&D. About 28% of our net sales goes back into R&D investments. For the full- year, we came in at net sales of SEK 976 million, an operating margin of close to 26%, excluding non-recurring items, and an earnings per share at 9.3, significantly up from last year's 6.6. Some of the key events in the quarter on page four.
We closed an important deal for secure authentication worth EUR 3.1 million with an affiliate of a European tier-one operator. We closed another important and strategic multi-year deal for traffic classification with a North American cloud computing and virtualization technology vendor. This deal over four years is worth $3.1 million. 5G and private networks in 5G is a hot and emerging area, and we're happy to announce a reference that a Taiwanese company called Compal Electronics, a major ODM in this area that have decided to use our software for their private 5G network. We get awarded for innovation. We continue to innovate, and we come out with new unique products. In this quarter, in particular, our product for 5G security as well as Internet of Things were awarded in industry events.
We did take a portfolio change in the quarter. I'll be coming back to that, but the edge market has not been evolving as expected, and we have decided that our platform for edge virtualization will be discontinued, and we did decide to do a one-time write-off of SEK 20 million of capitalized development costs. Let me give you a bit more detail on coming slides on all these key items. Coming back to the contract on secure authentication on page five. It's a contract of three years with an important European tier-one operator. This is really a contract in our specialty area of security and telecommunication. Our software secures the connection to the mobile network for subscribers and for devices throughout the entire mobile network.
The contract covers both, software licenses, as well as professional services and support maintenance. The financial impact in the quarter was relatively limited, EUR 0.4 million, since the contract primarily builds on recurring revenue through the full contract period. We always prioritize long-term recurring revenue. Next page, a few details on the contract we took for classification, traffic classification. We are a world leader in traffic classification with the broadest coverage in terms of protocol coverage for classifying different kind of internet protocols and services. This is an important feature, an important piece of software used by many companies, in particular in enterprise communication and cybersecurity. This four-year agreement is with a U.S.-based cloud computing and virtualization technology vendor.
It helps them to enhance their offering in what's called SD-WAN, software-defined wide area networks, and it allows them to provide real-time traffic intelligence for cybersecurity, for optimization, and for quality of service. We're really happy about this contract also, which is yet another strategic win for us. The next Page 7. I did mention the win with Compal Electronics, one of the world's largest ODM providers. Our offering, MicroCore, was launched during last year, and it's in fact then a small scale packaging of our 5G software. I'm really happy to see then this reference where this software now is used for a private 5G network. This is an emerging trend where companies across the world are looking at deploying 5G networks to secure their connectivity, their wireless connectivity based on the new 5G standard.
Our software is built around the new standard called standalone 5G, and also built for small scale and cloud deployment. These are really the reasons why we were selected by Compal. Best of breed virtualized software reduced hardware cost up to 50% through the efficiency of our software, which also lead to low carbon footprint. It's an emerging market, but we hope that this reference will help us to further enhance our position in the 5G private network market going forward. On Page 8, quick highlights on some innovation awards that we have been given during the quarter. As you know, our focus on 5G and on 5G cybersecurity is very strong. With the acquisition of AdaptiveMobile Security in July last year, we have significantly strengthened our offering in this area.
AdaptiveMobile Security is a leader in messaging and signaling security, and 5G is obviously a hot topic where potentially new threats will also emerge. It's really important that from the start to secure 5G networks from any kind of cyberattack. This is what our product suite now has been deployed for. The innovation that was recognized by Fierce Telecom Awards is for leadership in 5G security. We're really happy about that. Then another win, which was in fact together with a customer, Telia and a partner, Amazon Web Services, where we got awarded for our Aptilo IoT Connectivity Control Service. This is a way of building Internet of Things connectivity to devices in a secure way. It's been deployed, in fact, commercially, and it's also a market that we see as promising going forward.
Again, really happy to get this recognition in an important industry forum. On page nine, summarize a decision that we have taken around parts of our portfolio. Looking at two important sales trends for us. The market for virtualization platforms has not developed as expected, significantly slower. Partly it's pandemic effects, we believe, but there are also other technologies that also have had an impact on this market. There is another market, which is our traditional market for operating systems, real-time operating systems. For those of you following the company, it's no news that this is on a declining pattern since several years. These two market trends and sales trends together make us take a number of decisions here.
First of all, we have decided that our offering, the Edge Virtualization Platform, will be discontinued, and that allows us to focus on the growth areas of 5G and cybersecurity. As a consequence of this, we have decided to write off SEK 20 million of capitalized development costs in the fourth quarter of 2021. The combination of this and the continued adjustment of cost and capacity on the operating system side also means that we will be adjusting our workforce. We will be reducing by some 30 people at an estimated restructuring cost of about SEK 30 million, and this will be done during the first quarter 2022.
Now all in all, this will reduce our cost base, starting from the second quarter by some SEK 45 million, which also gives us the possibility to focus even more and to reinvest into growth areas, in particular 5G and cybersecurity. That's really all the highlights, and I think now it's time to move over to some financial details, and I'll leave it over to you, Ola.
Thank you, Jan. We continue on Page 11 please. Net sales in the quarter ended at SEK 279 million, compared to SEK 248 million previous year. Corresponds to growth of 13%, and that's actually 13% also currency adjusted. For the full year, we reached SEK 976 million corresponding to SEK 915 million full- year 2020. This is a growth of 7% or 11% currency adjusted. The acquired growth in the quarter was SEK 56 million, which is the growth and the net sales that AdaptiveMobile Security has added to the group net sales.
In the quarter, we do also have some other revenues, which relate to loans in the U.S. that have been forgiven, and these are loans given during the COVID-19 pandemic, where we have applied for forgiveness of these loans and that have been approved during the quarter. On top of that, we have a grant for 5G development that was actually approved, the grant in 2020, and we were during this quarter able to submit documentation which will allow us for another SEK 6 million in grants. So all in all, the total revenue for the quarter came in at SEK 293 million. For the full year, the total revenue was actually SEK 1 billion.
If we look at our product areas, we still see that the network solution area is the major part. It now represents 77% of our net sales, which is shown on Page 12. In total, we have increased net sales in fixed currencies of 25%, largely driven by the acquisition of AdaptiveMobile Security. Organic growth for the sort of non-acquired part of the network solution, that growth was negative by 8% in the quarter. The reason for this being that we do sell lots of licenses to larger operators across the world, and those license revenues tend to fluctuate all the quarters. Compared to the Q4 2020, our license revenues were less.
Operating systems declined by 18%, and this is one of the reasons which Jan explained earlier on, that this has been declining for several years, and we're also taking measures to adjust the cost base going forward. Our software development services represent today about 10% of the total sales in the group, and it has since last year decreased by 12%. This is mainly driven actually by the COVID-19 effects and in particular towards the U.S. market, where we in the past had big exposure to the airline industry, where we have less sort of external work to perform. We move to Page 13. Profit-wise, before non-recurring items, we ended up at almost 30% EBIT margin for the Q4 or SEK 83.1 million.
We do have some non-recurring items in here, which is mainly the write-off of the Edge Virtualization Platform of SEK 20 million. Reported EBIT is now SEK 61 million, or a margin of 21.9%, which is very much in line with our guidance, despite the one-off write-down. Earnings per share, 2.54 for the quarter and 9.30 for the full- year. Thank you. We move to the next one. Short summary of the financial position. We are still a very cash flow generating company. Cash flow before changes in working capital amounted to SEK 12.8 million compared to eight previous year. Cash flow from operations amounted to SEK 142 million compared to 61 same quarter last year.
In total, our interest-bearing bank loans amount to about SEK 740 million. It is an increase compared to last year, which is related to the acquisition of AdaptiveMobile Security, which was 100% debt-funded. Cash for the end of the year amounted to SEK 211 million, which leads us to a net debt versus EBITDA of 1.41. An equity ratio of 58.6%. Thank you.
Very good. Thank you, Ola. I'll just wrap us up at the end on Page 16, just summarizing and reiterating our strategy. We stay firm on our strategy as a software product company. Many of our competitors are encumbered or hindered by legacy hardware business. As a pure software company, we fully embrace the cloud technology, best-of-breed business models, and as-a-service models to both deliver and commercially address our customers. We're not a full system vendor, but rather we are selective. Our strategy is to provide software components in market segments with good profitability and growth potential, and being a specialist, being a leader in everything we do. We have some exciting and important trends that we are leveraging and where we have a good and early position.
In particular, 5G core networks that I did talk about before, where in particular data management is a hot area where we have some very important references and a broad and leading portfolio. Cloud native telco software is the future for the entire telco industry, and all future communication networks will be built around software adapted and specialized for cloud. The last but not least, cybersecurity. With increasing threats to people, enterprises, and society, we see cybersecurity as an important area to address, to be in, and quite frankly, to be able to help also against these threats. There is a lot going on and we see increasing trends here, and I'm particularly happy that AdaptiveMobile Security gives us a leadership position in messaging and signaling security for mobile infrastructure.
This gives us an outlook on Page 17 where we have and maintain a positive long-term view on the market. We see growing markets for 5G and cybersecurity. We believe we have a strategy and a position and the competence and the global culture to challenge established players and to increase our market share. Therefore, we maintain our target to significantly grow revenues, both organically and through complementary acquisitions, as we have done during recent years. In particular, it's network solutions that is our growth area. This quarter, it grew by 25%, and we intend to continue the growth of network solutions while maintaining an operating margin of healthy 20% or above, and to surpass an annual turnover of SEK 1.5 billion latest by 2023.
In the shorter term, we of course do see the pandemic that still holds a grip on parts of the world, although we do also see trends going back to more of a normalized business. Step by step, we believe that the hindrances that we are still seeing or project delays and hindrances for new sales will hopefully then be reduced during the year. This gives us an outlook for the year of continuing to increase revenues compared to previous year and to maintain our target of delivering an operating margin above 20%. With that, I thank you for listening and give it back to the moderator.
Thank you. If you wish to ask a question, please dial one on your telephone keypads now to enter the queue. Once your name has been announced, you can ask your question. If you find it's answered before it's your turn to speak, you can dial two to cancel. Our first question comes from the line of Jesper von Koch of Redeye. Please go ahead. Your line is open.
Good morning, guys. All right. Let's start with the network solutions where you recorded a negative organic growth of 8% due to some timing effects on licensing and royalties. Can you just elaborate on the underlying reality of this segment?
Thank you, Jesper. No, as I think Ola stated, our business is built on combinations of licenses, professional services, support and maintenance contracts, and we also have a dependency, an increased dependency with the growth of network solutions on larger deals. They have variations between quarters, and we believe that what we see here is an example of that variation. We had higher revenues, in particular license revenues, for some of our business in the Q4 in the same period last year. Therefore, the negative trend without the new acquisition in the quarter.
All right. Thanks. Regarding the shutdown of the Edge product, this came as a surprise, at least for me, since you've, I mean, quite recently written more than one post on, for example, your blog about the possibilities of Edge in combination with, for example, SD-WAN and the boost from 5G fixed wireless access and so on. Could you just explain some more reasons behind the shutdown?
Yeah. No, thank you for that. It's a good question. I mean, we as a technology company, we make choices every day, and we see a lot of opportunities and possibilities in our growth areas of 5G and cybersecurity. The Edge Virtualization Platform initiative, which was started several years ago, was and has been to a large extent built on our legacy position as operating system provider. And there has been a market trend towards virtualization, in particular small scale virtualization. And that's why we decided to try out and to invest in that. But what we've seen during recent years, and in particular the last two years, is a significant slowdown of that market.
A slowdown probably dependent on partly the pandemic, because we see enterprise customers building their enterprise networks in different ways or perhaps not building their networks in different ways. But we also see other technology alternatives emerging, like cloud-based communication also for enterprise. All in all, with the choices we have on growth areas and the weak market outlook, we've chosen to take this focused position, which is really about spending our time and effort and resources where we see the best bang for the buck.
Great. Thanks. If we move on to software development services, it seems that this segment is still struggling from the pandemic. First, is this related to the continued downturn in the airline industry? If so, what are your expectations on this going forward?
Well, software development services is an area where we have a strong customer base. We have many customers that rely on us, and we get very positive feedback also on our competence, especially for real-time critical embedded software. There are companies, new companies and segments where we have been growing healthily also. For example, medical industry that has had a positive effect during the corona pandemic. We continue to see that. However, as Ola stated also, historically, we have had a strong customer base, in particular in North America, of companies depending on airline industry. As we all know, airline industry has taken a significant hit during the corona pandemic. Part of what to do as a company then is to take out costs and take out consultants.
That consultancy business has then for us significantly declined as a result of the COVID-19 pandemic. Again, it's been partly compensated by growing areas like medical industry and automotive industry also. It's a good and healthy business for us, generating recurring revenues. Again, it has taken a hit during the pandemic.
Great. Thank you very much. Just one last question about the operating systems there. We believe it's good that you're taking action to adapt the organization as revenues decline. Just about the decline, is this going faster than you had previously anticipated, or is it somewhat in line with expectations?
I would say that it's in line with our expectations. As you may know, we have some contracts where we are recording royalties and revenues as they come, so depending on the production of new units from these customers. Then we have other contracts which are stable and predictable with one, for example, of our key customers, over four years that was closed in 2019. All in all, this is in line with our expectations. We also believe that given the dependency customers have on the installed base, the importance of being able to support and maintain the installed base, we continue to have a strong position as well as being important for these customers for a long time to come.
Mm-hmm. Great. Thank you so much for answering my questions and good luck going forward.
Thank you.
Thank you. Currently we have one further person in the queue. Just as a reminder to participants, if you do wish to ask a question, please dial zero one now. That next question comes from the line of Simon Granath of ABG. Please go ahead. Your line is open.
Thank you, operator. Good morning, Jan and Ola. Hope all is well with you guys. A couple of questions from me. Initially on the cost savings, could you give some more color on the timing for these, and adjusting for the non-recurring items that are expected in Q1? Should we see any positive effects to your cost base already occurring in that quarter?
You will see the impact of this sort of this restructuring. It will have basically full effect on an annual basis as from the Q2 2022. This restructuring or reorganization is implemented as we speak during this quarter. The restructuring cost that was mentioned here will be the cost for the total program that we will take in the Q1 2022, and then those costs will be out going forward.
Okay. Thank you. Over the years, you have broadened your product portfolio quite significantly. How would you say that you are now positioned in terms of portfolio breadth to capture the trends you mentioned here relating to 5G, cybersecurity, etc.? Is it more about investing in the current products that you have, or is it also about broaden the portfolio further?
Yeah, thank you. Well, I believe that, in the areas that we address and have been investing in, for example, data management for 5G and now recently cybersecurity for messaging and signaling, we are well-positioned. We have a both portfolio as well as competence to address customers, small and large, and we are doing so. Having said that, there are more areas to look into, and, we are continuously evaluating both through organic investment and through complementary acquisitions, areas where we can, where we can also take a leadership position and where we have synergies, both technical synergies and go-to-market synergies with our sales force. That's what we did, through the acquisition of AdaptiveMobile Security, where we, where we, have found synergies, both technically as well as with the the customer base.
We will continue to drive that strategy going forward.
Thank you so much. Also could you comment on the recent introductions to the market relating to private 5G networks, including Amazon and Microsoft? Do you see any read across from these introductions to your business?
Yeah, good question. Yeah, it's a very hot market, and many players are addressing this, including the larger cloud providers that you mentioned. They have a tradition also and an established base towards enterprises and private networks. For us, we are completely agnostic to the underlying platform. Our software is cloud native, which means that it runs perfectly on all these platforms and more like Amazon, like Microsoft and other alternatives also. I believe this can be good for us. We will probably see more and more of deployments on these kind of public cloud platforms going forward.
Thank you. On AdaptiveMobile, I believe it was a good quarter presented from that entity. Should we expect a similar run rate as the recent numbers were at going forward, or was this an extraordinary strong quarter for that entity?
I mean, we're happy about the start of AdaptiveMobile Security. We acquired it in July 2021, and we have had, I think, not only one, but two good and strong quarters. I mean, this is a business also which is built on software. I think variations between quarters are to be expected also in this area.
Thank you so much. That's all for me.
Thank you, Simon.
Thank you. We've had one further person join the queue. That's [unaudible] of SEB. Please go ahead. Your line is open.
Thanks and morning. I just have one question on the write-down and closing the Edge business line. Can you just give us some flavor of the impact on organic growth going forward? I mean, is it a tangible part of the business today?
Thank you, Erik. The business model for Edge has been entirely built on deployments, meaning that our revenues would scale with customers deploying and scaling up their networks. I mean, as I mentioned, the market has been very slow, which means that deployments for us and for the market have been really limited. That means that the revenue impact is very limited through this. Yeah. It just basically negligible revenue in 2021 generated by this product line. It's less, you know, it's less than SEK 10 million or even half of that that we have in the numbers for 2021. It will not have an impact for growth going forward.
All right. Thanks. Just one more question on your guidance, because I mean, looking at 21%, it seems a bit conservative with 20% operating margin given where you are now. What's sort of your take on that?
Yeah, I mean, we've been beating the 20% mark in every quarter during 2021, and we're really happy about that, and we're happy, of course, about the full year result, also 26%. Yeah, that's. We've given the guidance for previous year of 20% and above, and we maintain that. Obviously, we have an ambition to continue to grow revenues and to maintain healthy on the operating margin side. That's what you should hope and expect from us going forward.
All right. Thank you. That's all for me.
Thank you.
Thanks. Thank you. As there are no further questions coming through at this time, I'll hand back to our speakers for the closing comment.
Very good. Well, thank you for listening this morning, at least in Europe. Enea stays focused as a software product company addressing 5G and cybersecurity as exciting markets and