Interim / Quarterly Report • Jul 28, 2010
Interim / Quarterly Report
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STRATEC DEVELOPS AND MANUFACTURES FULLY AUTOMATED ANALYZER SYSTEMS BASED ON ITS OWN PATENTED TECHNOLOGIES FOR ITS PARTNERS IN THE FIELDS OF CLINICAL DIAGNOSTICS AND BIOTECHNOLOGY. STRATEC'S PARTNERS ARE MOSTLY GLOBAL PLAYERS OPERATING IN THE IN-VITRO DIAGNOSTICS INDUSTRY. THESE COMPANIES MARKET STRATEC'S SYSTEMS, IN GENERAL TOGETHER WITH THEIR OWN REAGENTS, AS SYSTEM SOLUTIONS TO LABORATORIES, BLOOD BANKS, AND RESEARCH INSTITUTES AROUND THE WORLD.
| FOREWORD BY THE BOARD OF MANAGEMENT | 3 |
|---|---|
| INTERIM GROUP MANAGEMENT REPORT | 6 |
| CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2010 | 11 |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the Period from April 1 to June 30, 2010 |
13 |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the Period from January 1 to June 30, 2010 |
14 |
| STATEMENT OF CHANGES IN GROUP SHAREHOLDERS' EQUITY for the Period from January 1 to June 30, 2010 |
15 |
| CONSOLIDATED CASH FLOW STATEMENT for the Period from January 1 to June 30, 2010 |
17 |
| NOTES TO THE GROUP INTERIM REPORT for the Period from January 1 to June 30, 2010 |
18 |
| ADDITIONAL INFORMATION | 21 |
Alongside the market launch of NEO by Immucor, the first analyzer system to be newly launched in the current year, in the first half of 2010 STRATEC Biomedical Systems AG also managed to lay two important foundations for the company's future development. We concluded a major new development and supply agreement with bioMérieux and prepared the takeover of the US company Ballista Inc., the execution of which was then announced on July 2, 2010.
Given our business performance in the first six months and in view of the three market launches pending by our partners – DiaSorin, Gen-Probe and QIAGEN – in the second half of the year, we can confirm our previous forecast, namely that sales for the 2010 financial year as a whole will range between u 96 million and u 102 million (sales in 2009: u 79.6 million).
We boosted our first-half sales by 18.0 % from u 36.6 million in the previous year's period to u 43.1 million in the current year. Earnings showed disproportionate growth of 24.0 % from u 4.9 million in the previous year to u 6.1 million. The EBIT margin amounted to 18.7 % as of June 30, 2010 (previous year: 17.1 %). Although we stockpiled production in the first half of 2010 in preparation for the relocation of our Swiss production activities into a new building, the brief interruption to production and high volumes of customer demand led to a supply backlog of around u 3.4 million, which we intend to have worked down by the end of the third quarter of 2010.
In terms of new contracts, we were able to announce the placing of a further major development and supply order. bioMérieux, a partner previously largely reliant on internally developed solutions, has commissioned STRATEC to develop and produce various core components for the next generation VIDAS, one of the most-used in-vitro diagnostics systems worldwide. This order will contribute to further growth at our company from 2012 onwards. This order too is a reflection of current developments within our industry, in which diagnostics companies are focusing on their core competencies, namely the development and marketing of reagents, while commissioning highly-specialized independent partners such as STRATEC to supply the corresponding automation and instrumentation solutions. This provides diagnostics companies with a major advantage in terms of the critical factor of time-to-market, as well as enabling them to reliably plan their development financing.
As a longstanding partner with in-depth expertise and a very broad range of available technology, we are endeavoring to further extend this competitive advantage by permanently drawing on innovations, enhancing our processes, and optimizing the value for money we can offer.
It is also against this backdrop that the three acquisitions made by STRATEC in recent years should be viewed. These enabled us to acquire technology and expertise we would otherwise have had to build up ourselves over many years. We in turn provide our partners with added value that they would otherwise have to procure from several other sources and then integrate into their overall solutions.
The software solutions at Sanguin, a company we acquired in 2006, whose middleware software solutions provide an interface between the analyzer systems and laboratory and hospital software, thus represented a new milestone in the range of services were able to offer to our customers. The integration of Invitek in 2009 and the nucleic acid purification solutions acquired as a result enable STRATEC to offer its customers an all-round instrumentation solution, thus covering the key step in the molecular diagnostics market.
The takeover of the US company Ballista announced at the beginning of July 2010 has been driven by similar considerations. Its competencies in the field of optics systems will enable us to market joint solutions offering considerable benefits to our customers. Not only that, we will also be jointly developing a competence center for the solutions on offer at the STRATEC Group. From here, it will be possible to provide our partners with hands-on, prompt assistance in their development and integration projects. What's more, by building up a network of suppliers in the US dollar area, we aim to benefit from natural hedging, thus offsetting the effects of currency fluctuations. The maximum purchase price of US\$ 5.2 million, partly dependent on the company's performance, is being settled from our own cash flow and with treasury stock. These treasury stock shares were already acquired within a share buyback program in 2008 at an average purchase price of around u 15 each. We expect Ballista, which will be consolidated into group accounting from July 1, 2010, to already contribute to the further growth of the STRATEC Group in the near future.
Our new building in Birkenfeld, where our development teams will in future be working together centrally and have additional capacity at their disposal, is scheduled to be ready to move into in November 2010. You can follow the construction progress via the webcam available on our homepage at www.stratec-biomedical.de.
We have a promising second half ahead, and are currently working with our partners to prepare those market launches due to take place in the near future. In view of these, as well as of the strong performance of existing systems, we expect to see a further growth spurt, especially in the fourth quarter of 2010 and the next two financial years. Over and above those systems due to be newly launched, we are already developing several projects on behalf of our customers that guarantee our further growth in the years beyond 2012 as well.
Birkenfeld, July 2010
The Board of Management of STRATEC Biomedical Systems AG
Hermann Leistner
Marcus Wolfinger Bernd M. Steidle
While sales rose to u 43.1 million in the first six months of the 2010 financial year, up 18.0 % on the previous year's figure of u 36.6 million, the Group increased its overall performance in the same period by 21.0 % from u 40.4 million to u 48.8 million. In line with these developments, the cost of materials also rose from u 20.3 million to u 23.9 million.
Due in particular to the increase in development activities, as well as to the further expansion in production capacities and the acquisition of Invitek in April of the previous year, personnel expenses rose from u 9.3 million to u 11.5 million. Other operating expenses increased from u 3.5 million to u 4.2 million. It should be noted in this respect that Invitek has been included in the consolidated figures since April 1, 2009. Depreciation and amortization rose to u 1.4 million. STRATEC thus generated consolidated net income of u 6.1 million in the period under report (previous year: u 4.9 million), corresponding to earnings per share of u 0.53 (previous year: u 0.43).
In the balance sheet, property, plant and equipment grew from u 8.9 million to u 12.5 million due to the capitalization of the new production building at Robion AG in Switzerland, and the start of construction on the development building at STRATEC AG in Birkenfeld. Due to the imminent launch of serial production on three development projects, inventories rose from u 31.6 million to u 40.5 million. Total receivables and other assets increased by u 3.4 million to u 19.9 million, while cash and cash equivalents dropped from u 21.2 million to u 13.7 million in the period under report.
The equity ratio decreased from 69.1 % to 66.0 %. The increase in both noncurrent and current financial liabilities was attributable to the taking up of a loan for the construction of a production building at Robion AG in Switzerland. The rise in accounts payable was driven by higher procurement volumes for raw materials and supplies.
With an outflow of funds of u 4.2 million, the Group's investment activities in the first six months of the 2010 financial year were characterized by the completion of the production building at Robion AG, and the launch of construction work in Birkenfeld. Moreover, over the same period the STRATEC Group invested u 0.9 million (previous year: u 1.0 million) in property, plant and equipment, especially tools, and u 0.2 million (previous year: u 0.3 million) in intangible assets.
In its latest Economic Outlook dated July 8, 2010, the International Monetary Fund (IMF) once again raised the growth forecast for the global economy in 2010 to its new level of 4.6 %. The equivalent figure at the beginning of the year had still amounted to 3.9 %. Global growth will be driven in particular by the emerging economic superpowers of China and India in Asia, as well as by Brazil. The IMF also raised its growth forecast for the USA this year to 3.3 %, up from 3.1 % previously, but left its forecast for the euro area unchanged at 1.0 %.
Global demographic developments represent one of the most serious challenges facing the world. The dynamic growth in the world's population, together with an unprecedented increase in the elderly share of the population and the sharp rise in the number of people with access to medical care, represent key factors which will shape the 21st century. This situation is accompanied by scientific and technological progress, which is opening up ever new possibilities in the fields of medicine, research, diagnostics and life science.
These developments will lead not only to an increase in the numbers of medical tests to be performed, but will also result in new, unique opportunities for which STRATEC is optimally positioned with its automation solutions and on which it will continue to focus its strategy and operations.
As a result of the healthcare reform in the USA, there should also be a further increase in the number of people with health insurance, and thus with access to medical care, as well as in the numbers of resultant investigations and related tests.
In view of the factors outlined above, global economic risks, such as the recent recession, only have a very limited impact on STRATEC's business performance and business model. Moreover, long-term supply agreements with our customers and the fact that the work performed is invoiced almost exclusively in euros further minimize the implications of the crisis for STRATEC.
On December 17, 2009, STRATEC published a forecast of the Group's further sales and earnings performance.
STRATEC expects to generate sales in a range of u 96 million to u 102 million in the 2010 financial year. Four major development programs (the LIAISON XL analyzer system for DiaSorin, Panther for Gen-Probe, NEO for Immucor, and the QIAensemble system family for QIAGEN), benefits of scale in production and the increasing share of sales generated with consumables and spare parts will facilitate further growth in the EBIT margin. STRATEC expects its EBIT margin for 2010 to rise by at least 0.5 percentage points to at least 19.0 %.
The marked increase in the "inventories" balance sheet item, which is due to the pending launch of serial production on three development projects (Gen-Probe, QIAGEN and DiaSorin), will return to a lower level once again following the launch of marketing by our customers.
In the meantime, the NEO analyzer system was launched on the European market by Immucor, a customer of ours, in the first quarter of 2010. Following approval by the FDA (the US health authority), the system was launched onto the US market at the beginning of the second quarter of 2010.
The significant increase in customer demand for analyzer systems and the brief interruption to production due to the removal mean that the Group had a supply backlog of u 3.4 million at the end of the first half of 2010. This will be worked down by the end of the third quarter of 2010.
In view of the stable growth in all projects and the prospects and customers forecasts received for new programs, STRATEC expects to generate continuous growth in the coming years. The average rate of growth in sales (CAGR) between 2010 and 2012 is thus expected to exceed 15 % a year.
Furthermore, we are holding talks on promising projects with existing and potential customers, which lead us to expect further growth driven by new projects well beyond 2012.
Following the international economic crisis and the resultant economic downturn, the macroeconomic climate has improved once again. All industrial sectors are nevertheless still confronted with a low level of budgeting reliability. This situation continues to harbor risks for STRATEC's customers and suppliers, as a result of which STRATEC also faces economic risks. The ongoing difficult economic climate also means that STRATEC continues to face increased market risk.
In view of our existing development projects and forecasts, as well as the partial conversion of our forecast systems to the dates at which orders are actually placed by STRATEC's customers, however, our degree of forecasting reliability remains very high.
Apart from this, since the assessment of the situation of the company provided on March 19, 2010 upon the compilation of the Annual Report for the 2009 financial year, no new information has arisen which could lead to any change in our assessment of the expected development of the company.
We analyze and evaluate the risks facing the company and its business environment within the framework of our risk management system, which has been established as an early warning risk identification system. Furthermore, this system also includes a compliance system to ensure compliance with the relevant legal and industry-specific requirements.
STRATEC's business activities basically focus on sustainability and responsible behavior. In future, the company will document this in a sustainability report.
Apart from the factors outlined in the "Report on forecasts and other statements concerning the company's expected development", we do not see any changes compared with the risks and opportunities identified in the Group Management Report for the 2009 financial year dated March 19, 2010. Reference is made to the "Risk Report" section within the 2009 Group Management Report for details concerning our risk management system and our company's specific opportunity and risk profile.
as of June 30, 2010 of STRATEC Biomedical Systems AG
| assets in u thousand |
06.30.2010 | 12.31.2009 |
|---|---|---|
| non -current assets |
||
| Goodwill | 2,195 | 2,141 |
| Other intangible assets | 4,184 | 4,385 |
| Property, plant and equipment | 12,530 | 8,890 |
| Interests in associates | 312 | 310 |
| Deferred tax assets | 242 | 125 |
| 19,463 | 15,851 | |
| current assets |
||
| Raw materials and supplies | 9,893 | 6,915 |
| Unfinished products, unfinished services | 29,207 | 23,893 |
| Finished products and goods | 1,179 | 606 |
| Prepayments made | 236 | 223 |
| Trade receivables | 11,270 | 9,914 |
| Future receivables from construction contracts | 6,844 | 4,922 |
| Receivables from associates | 112 | 165 |
| Other receivables and other assets | 1,684 | 1,456 |
| Securities | 754 | 654 |
| Cash an cash equivalents | 13,666 | 21,186 |
| 74,845 | 69,934 | |
| total assets | 94,308 | 85,785 |
| shareholders' equity and debt in u thousand |
06.30.2010 | 12.31.2009 |
|---|---|---|
| shareholders ' equity |
||
| Share capital | 11,482 | 11,446 |
| Capital reserve | 12,054 | 11,167 |
| Revenue reserves | 32,984 | 26,433 |
| Consolidated net income | 6,069 | 11,674 |
| Other equity | -304 | -1,433 |
| 62,284 | 59,287 | |
| debt | ||
| Non-current debt | ||
| Non-current financial liabilities | 6,517 | 5,602 |
| Pension provisions | 105 | 105 |
| Deferred taxes | 1,849 | 1,637 |
| 8,471 | 7,344 | |
| Current debt | ||
| Current financial liabilities | 1,664 | 488 |
| Trade payables | 4,937 | 3,421 |
| Liabilities to associates | 153 | 24 |
| Other current liabilities | 14,986 | 13,670 |
| Current provisions | 1,173 | 1,301 |
| Income tax liabilities | 638 | 250 |
| 23,552 | 19,154 | |
| Total shareholders' equity and debt | 94,308 | 85,785 |
for the Period from April 1 to June 30, 2010 of STRATEC Biomedical Systems AG
| in u thousand |
04.01.-06.30.2010 | 04.01.-06.30.2009 | ||
|---|---|---|---|---|
| Sales | 22,897 | 19,817 | ||
| Increase in volume of finished and | ||||
| unfinished products and unfinished services | 2,567 | 1,414 | ||
| Other own work capitalized | 109 | 96 | ||
| Overall performance | 25,573 | 21,327 | ||
| Other operating income | 105 | 129 | ||
| Cost of raw materials and supplies | 12,063 | 10,250 | ||
| Cost of purchased services | 291 | 308 | ||
| Personnel expenses | 5,987 | 4,848 | ||
| Other operating expenses | 2,389 | 1,817 | ||
| EBIT DA |
4,948 | 4,233 | ||
| Amortization of intangible assets and depreciation of property, plant and equipment |
726 | 708 | ||
| EBIT | 4,222 | 3,525 | ||
| Net financial expenses | 37 | 167 | ||
| Operating result (EBT) | 4,259 | 3,692 | ||
| Current tax expenses | 1,155 | 1,016 | ||
| Deferred tax income | 4 | 71 | ||
| Consolidated net income | 3,108 | 2,747 | ||
| Income and expenses recognized directly in equity (after taxes) |
||||
| Currency translation of foreign financial statements | 859 | 234 | ||
| Comprehensive income | 3,967 | 2,981 | ||
| Earnings per share in v | 0.27 | 0.24 | ||
| Number of shares used as basis | 11,429,881 | 11,345,699 | ||
| Earnings per share diluted, in v | 0.27 | 0.24 | ||
| Number of shares used as basis, diluted | 11,594,254 | 11,405,623 |
for the Period from January 1 to June 30, 2010 of STRATEC Biomedical Systems AG
| in u thousand |
01.01.-06.30.2010 | 01.01.-06.30.2009 | |
|---|---|---|---|
| Sales | 43,140 | 36,552 | |
| Increase in volume of finished and unfinished products and unfinished services |
5,467 | 3,616 | |
| Other own work capitalized | 214 | 187 | |
| Overall performance | 48,821 | 40,355 | |
| Other operating income | 302 | 286 | |
| Cost of raw materials and supplies | 23,073 | 19,601 | |
| Cost of purchased services | 811 | 720 | |
| Personnel expenses | 11,532 | 9,310 | |
| Other operating expenses | 4,235 | 3,484 | |
| EBIT DA |
9,472 | 7,526 | |
| Amortization of intangible assets and depreciation of property, plant and equipment |
1,416 | 1,295 | |
| EBIT | 8,056 | 6,231 | |
| Net financial expenses | 39 | 360 | |
| Operating result (EBT) | 8,095 | 6,591 | |
| Current tax expenses | 2,006 | 1,793 | |
| Deferred tax expenses (previous year: tax income) | 20 | 96 | |
| Consolidated net income | 6,069 | 4,894 | |
| Income and expenses recognized directly in equity (after taxes) |
|||
| Currency translation of foreign financial statements | 1.128 | 157 | |
| Comprehensive income | 7,197 | 5,051 | |
| Earnings per share in v | 0.53 | 0.43 | |
| Number of shares used as basis | 11,424,011 | 11,318,450 | |
| Earnings per share, diluted, in v | 0.52 | 0.43 | |
| Number of shares used as basis, diluted | 11,591,930 | 11,354,134 |
for the Period from January 1 to June 30, 2010 of STRATEC Biomedical Systems AG
| in v thousand | Share capital | Capital reserve | Retained earnings |
Other revenue reserves |
|
|---|---|---|---|---|---|
| Balance at 12.31.2008 | 11,426 | 10,746 | 18,741 | 5,539 | |
| Dividend payment | |||||
| Allocation to other revenue reserves | 2,000 | ||||
| Profit carried forward | 154 | ||||
| Company acquisition in return for shares from holdings of treasury stock (change in scope of consolidation) |
-257 | ||||
| Issue of subscription shares from stock option programs |
1 | 2 | |||
| Allocations due to stock option programs |
113 | ||||
| Comprehensive income | |||||
| Balance at 06.30.2009 | 11,427 | 10,604 | 18,895 | 7,539 |
| January – june 2010 |
Revenue reserves | ||||||
|---|---|---|---|---|---|---|---|
| in v thousand | Share capital | Capital reserve | Retained earnings |
Other revenue reserves |
|||
| Balance at 12.31.2009 | 11,446 | 11,167 | 18,893 | 7,540 | |||
| Dividend payment | |||||||
| Allocation to other revenue reserves | 3,000 | ||||||
| Profit carried forward | 3,552 | ||||||
| Issue of subscription shares from stock option programs |
36 | 778 | |||||
| Allocations due to stock option programs |
108 | ||||||
| Comprehensive income | |||||||
| Balance at 06.30.2010 | 11,482 | 12,053 | 22,445 | 10,540 |
| Other equity | ||
|---|---|---|
| Currency Group equity Treasury stock translation |
Fair value reserve | Consolidated net income |
| -2,014 -667 49,902 |
0 | 6,131 |
| -3,977 | -3,977 | |
| -2,000 | ||
| -154 | ||
| 1,057 800 |
||
| 113 | ||
| 157 5,051 |
4,894 | |
| -957 -510 51,892 |
0 | 4,894 |
| Currency translation -998 -435 1,128 |
|||
|---|---|---|---|
| Treasury stock | Fair value reserve | Consolidated net income |
|
| 0 | 11,674 | ||
| -5,122 | |||
| -3,000 | |||
| -3,552 | |||
| 6,069 | |||
| 693 | -998 | 0 | 6,069 |
for the Period from January 1 to June 30, 2010 of STRATEC Biomedical Systems AG
| in v thousand | 01.01.-06.30.2010 | 01.01.-06.30.2009 |
|---|---|---|
| Consolidated net income | 6,069 | 4, 894 |
| Depreciation and amortization | 1,416 | 1,295 |
| Current income tax expenses | 2,006 | 1,793 |
| Income taxes paid less income taxes received | -1,618 | -2,350 |
| Financial income | -146 | -280 |
| Financial expenses | 107 | 108 |
| Interest paid | -106 | -108 |
| Interest received | 46 | 71 |
| Other non-cash expenses | 319 | 115 |
| Other non-cash income | -314 | -210 |
| Cash flow | 7,779 | 5,328 |
| Change in deferred taxes through profit or loss | 20 | -96 |
| Profit on disposals of non-current assets | 0 | -190 |
| Increase in inventories, trade receivables and other assets | -11,973 | -5,522 |
| Increase in trade payables and other liabilities | 2,939 | 2,653 |
| Outflow of funds from operating activities (previous year: inflow) |
-1,235 | 2,173 |
| Incoming payments from disposals of non-current assets | ||
| Property, plant and equipment | 14 | 30 |
| Financial assets | 0 | 889 |
| Outgoing payments for investments in consolidated non-current assets | ||
| Intangible assets | -204 | -281 |
| Property, plant and equipment | -3,218 | -979 |
| Prepayments made / assets under construction | -746 | 0 |
| Financial assets | 0 | 0 |
| Outgoing payment for acquisition of consolidated companies plus overdraft facilities taken over |
0 | -2,233 |
| Outflow of funds for investment activities | -4,154 | -2,574 |
| Incoming payments from taking up of financial liabilities | 2,494 | 0 |
| Outgoing payments for repayment of financial liabilities | -573 | -239 |
| Incoming payments from issues of shares for employee stock option programs |
814 | 3 |
| Dividend payment | -5,122 | -3,977 |
| Outflow of funds for financing activities | -2,387 | -4,213 |
| Cash-effective change in cash and cash equivalents | -7,776 | -4,614 |
| Cash and cash equivalents at beginning of period | 21,187 | 19,208 |
| Change in cash and cash equivalents | ||
| due to changes in exchange rates | 255 | 50 |
| Cash and cash equivalents at end of period | 13,666 | 14,644 |
for the Period from January 1 to June 30, 2010 of STRATEC Biomedical Systems AG
The consolidated financial statements of STRATEC AG as of December 31, 2009, were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU valid at the balance sheet date. In the interim report as of June 30, 2010, which has been prepared on the basis of International Accounting Standard (IAS) 34 "Interim Financial Reporting", application has been made of the same accounting methods as in the consolidated financial statements for the 2009 financial year. Application has also been made of all interpretations of the International Financial Reporting Interpretations Committee (IFRIC) with binding effect as of June 30, 2010.
There were no indications of any potential impairment in goodwill at the balance sheet date.
The company's interim reports are neither audited, nor subject to an audit review, by the group auditor, WirtschaftsTreuhand GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft, Stuttgart.
Reference is made to the consolidated financial statements of STRATEC AG as of December 31, 2009 with regard to further information concerning the individual accounting and valuation methods applied.
The Group's currency is the euro. Unless otherwise indicated, all amounts have been stated in thousand euros (v thousand).
The breakdown of sales by geographical region represents the distribution of the STRATEC Group's products. As the customers of the STRATEC Group generally supply their country outlets and customers from central distribution centers, however, this breakdown of sales does not represent the geographical distribution of the final operating locations of the STRATEC Group's analyzer systems .
There have been no changes in the segmentation of the Group's results compared with the consolidated financial statements as of December 31, 2009.
Sales can be broken down by geographical regions (customer locations) as follows:
| in v thousand | Germany | EU | Other | Total |
|---|---|---|---|---|
| January – June 2010 | 7,474 | 28,012 | 7,654 | 43,140 |
| 17.3% | 65.0% | 17.7% | 100.0% | |
| in v thousand | Germany | EU | Other | Total |
| 9,121 | 22,522 | 4,909 | 36,552 | |
| January – June 2009 | 25.0% | 61.6% | 13.4% | 100.0% |
The expenses relating to research and project management, and to development services not fulfilling the capitalization criteria set out in IAS 38, amounted to u 3.1 million in the first six months of the 2010 financial year (previous year: u 2.5 million). These have been reported, mainly as personnel expenses, in the company's consolidated statement of comprehensive income. Moreover, procurement volumes of around u 0.5 million (previous year: u 0.5 million) were incurred during the period under report in connection with materials used in research and development. These have been included in the cost of materials item.
The development in shareholders' equity at the STRATEC Group has been presented in the statement of changes in group shareholders' equity on Pages 15 and 16.
The number of ordinary shares with a nominal value of u 1.00 each issued by STRATEC AG as of June 30, 2010, amounts to 11,482,036. These are all bearer shares.
The Annual General Meeting held on May 21, 2010 approved the distribution of a dividend of u 0.45 per share with dividend rights. This corresponds to a total distribution of u 5.1 million.
STRATEC AG owned a total of 63,895 treasury stock at the interim balance sheet date. This corresponds to a prorated amount of € 63,895.00 of the company's share capital and to a 0.56 % share of its equity.
Members of the Board of Management / Managing Directors and employees held the following numbers of subscription rights (share option rights) at the interim balance sheet date
| Board of Management / Managing Directors |
Employees | Total |
|---|---|---|
| Outstanding on 12.31.2009 265,000 |
45,430 | 310,430 |
| Issued 0 |
0 | 0 |
| Exerciesed 35,000 |
1,300 | 36,300 |
| Lapsed 0 |
0 | 0 |
| Outstanding on 06.30.2010 230,000 |
44,130 | 274,130 |
Due to the issuing of 36,300 shares at an average price of u 22.43, the company's share capital increased by u 36,300.00 and its capital reserve increased by u 777,818.00. As a result, conditional capital has reduced by u 36,300.00.
Including temporary employees the STRATEC Group had a total workforce of 399 employees as of June 30, 2010 (previous year: 325)
On July 2, 2010, STRATEC announced the acquisition of 100% of the voting capital in the US company Ballista Inc. Within its expansion strategy, STRATEC is thus extending its market presence in the USA.
Ballista specializes in precision optics technology and related development, production and advisory services with a strong track record as a supplier to the diagnostics and medical technology, biotechnology and aerospace industries. Its expertise and capacities range from prototype assembly through to serial production. In 2009, Ballista generated sales of US\$ 2.7 million with 18 employees. The company was founded in 2004 and is based in Newbury Park, a short distance from Los Angeles. Its three founding partners have longstanding experience in managing and expanding high-growth companies and they have committed, via employment contracts, stock holdings and options, to remain engaged and to work with STRATEC to further develop its US presence and to build on Ballista's existing customers and technology base.
The purchase price, which still has to be adjusted for receivables and liabilities, amounts to a maximum of US\$ 5.2 million. This includes the handover of 35,790 treasury stock shares with an equivalent value of US\$ 1.2 million (based on STRATEC's average share price of u 27.27 on XETRA in the period from June 21, 2010 to June 25, 2010). The cash component of up to US\$ 4.0 million consists firstly of a performance-related component of around US\$ 1.0 million (earn-out), secondly of temporarily deferred purchase price installments with a total value of US\$ 1.0 million, and finally of a sum of US\$ 2.0 million due for immediate payment and to be reduced by the net balance of the company's receivables and liabilities. The shares are subject to various lockup periods. It is planned to consolidate Ballista into the STRATEC Group from July 1, 2010.
Due to the proximity of the date of publication of this interim report to the acquisition date, it is not possible to make any statements concerning the fair value of the assets and liabilities acquired, or of any goodwill. STRATEC expects to be able to present the preliminary results of the purchase price allocation due to be performed in the near future in the interim group management report upon publication of the interim report as of September 30, 2010.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
| July 28, 2010 | Interim report as of June 30, 2010 |
|---|---|
| Oktober 27, 2010 | Interim report as of September 30, 2010 |
| November 24, 2010 | Deutsches Eigenkapitalforum, Frankfurt am Main, Germany |
| – Analysts' conference – |
Furthermore, based on current planning, STRATEC will also be taking part in the following capital market conferences in 2010:
| August 2010 | Commerzbank Chemicals & Life Sciences Conference, Frankfurt am Main, Germany |
|---|---|
| September 2010 | DZ Bank 8th German Healthcare Conference, Zurich, Switzerland UBS Global Life Sciences Conference, New York, USA |
| Oktober 2010 | Jefferies Global SpecPharma & European Healthcare Conference, London, UK |
| November 2010 | WestLB Deutschland Conference, Frankfurt am Main, Germany HS BC 4th HealthCare Conference, Frankfurt am Main, Germany |
Partially incomplete/subject to amendment
STRATEC Biomedical Systems AG designs and manufactures fully automated analyzer systems for its partners in the fields of clinical diagnostics and biotechnology. These partners market such systems, in general together with their own reagents, as system solutions to laboratories, blood banks and research institutes around the world. The company develops its products on the basis of its own patented technologies.
Shares in the company (ISIN: DE 0007289001) are traded in the Prime Standard segment of the Frankfurt Stock Exchange.
The STRATEC Group consists of the publicly listed parent company STRATEC Biomedical Systems AG and of subsidiaries and second-tier subsidiaries in Germany, the USA, the UK, Switzerland and Romania.
Further information about STRATEC is available on the internet at www.stratec-biomedical.de.
Published by STRATEC Biomedical Systems AG Gewerbestr. 37 75217 Birkenfeld Germany
Phone: +49 7082 7916-0 Fax: +49 7082 7916-999 [email protected] www.stratec-biomedical.de
Andreas Künzel Phone: +49 7082 7916-185 Fax: +49 7082 7916-999 [email protected]
Andre Loy Phone: +49 7082 7916-190 Fax: +49 7082 7916-999 [email protected]
Forward-looking statements involve risks: This interim report contains various statements concerning the future performance of STRATEC. These statements are based on both assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we can provide no guarantee of this. This is because our assumptions involve risks and uncertainties which could result in a substantial divergence between actual results and those expected. It is not planned to update these forward-looking statements.
Discrepancies may arise throughout this interim report on account of mathematical rounding up or down in the course of addition.
This interim report is also available in German.
Gewerbestr. 37 75217 Birkenfeld Germany
Phone: +49 7082 7916-0 Fax: +49 7082 7916-999
[email protected] www.stratec-biomedical.de
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