AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

CeoTronics AG

Interim / Quarterly Report Jan 13, 2010

5373_10-q_2010-01-13_f9a74a44-d1d2-4cf8-92bc-3c72e816a124.pdf

Interim / Quarterly Report

Open in Viewer

Opens in native device viewer

Q2 Half-yearly Financial Report of CeoTronics AG for Fiscal Year 2009/2010

Key Group Figures

H1 2009/2010
IFRS / € thousand
H1 2008/2009
IFRS / € thousand
Change
Revenues 6.745 10.193 -33,8%
Investments 513 458 +12,0%
R&D expenses 893 796 +12,2%
EBITDA -191 1.809 T€ -2.000
EBIT -468 1.549 T€ -2.017
Profit before tax
Profit for the period
Profit attributable to shareholders of
CeoTronics AG
-536
-468
-461
1.512
1.170
1.150
T€ -2.048
T€ -1.638
T€ -1.611
Gross cash flow -191 1.430 T€ -1.621
Cash and cash equivalents 1.707 546 +212,6%
Total assets 19.655 21.655 -9,2%
Equity 12.072 12.926 -6,6%
Equity ratio (%) 61,4 59,7 +1,7%
Employees as of November 30 157 154 +3
Earnings per share (in €) -0,07 0,17 -0,24
Gross cash flow per share (in €) -0,03 0,22 -0,25

Consolidated Half-yearly Financial Report of CeoTronics AG for Fiscal Year 2009/2010

  • Key Group Figures
  • Letter from the Board of Management Group Management Report
  • Our Market
  • Business Developments
  • Results of Operations
  • Investments and Depreciation
  • Net Assets and Financial Position
  • Workforce Development
  • CeoTronics' Shares
  • Report on Risks and Opportunities up to May 31, 2010
  • Report on Expected Developments

Consolidated Financial Statements as of November 30, 2009

  • Consolidated Balance Sheet (IFRS)
  • Consolidated Income Statement (IFRS)
  • Consolidated Cah Flow Statement (IFRS)
  • Statement of Changes in Equity (IFRS)
  • Notes to the Consolidated Half-yearly Report
  • Consolidated Segment Reporting
  • Executive Bodies
  • Responsibility Statement
  • Current Financial Calendar
  • CeoTronics Update

Letter from the Board of Management

Ladies and Gentlemen, Dear Shareholders,

In the first half of fiscal year 2009/2010 (June 1 to November 30, 2009), the CeoTronics Group generated revenues of €6,745 thousand (previous year: €10,193 thousand).

The decline in revenues towards the end of the first half of the year is due, among other things, to the last of the batch of the major order from the German Armed Forces worth over €3.1 million being delivered and invoiced in Q2 last year. Furthermore, the effects of the worst global economic and financial crisis in 80 years impacted the course of business at CeoTronics, despite the obvious investment bottleneck and customers having to make up ground in communications technology. Moreover, weak order intake in the past quarter and in the fourth quarter of fiscal year 2008/2009, as well as the delays to the switch to digital radio by security authorities and organizations in Germany and Northern Europe, had an adverse effect on revenue and order backlog development.

CeoTronics increased consolidated revenues in euros by 235.4% in the U.S.A. and 140.8% in Switzerland. CT-Video GmbH also increased its consolidated revenues by 14.0% and its order backlog after the first six months by 221.3%. However, these successes were unable to compensate for the negative revenue figures in the other markets.

The significant decline in revenues meant that CeoTronics was unable to match the key earnings figures and financial indicators recorded in the prior-year period. The first half of the year closed with EBIT of €-468 thousand, a loss before tax of €536 thousand, and a consolidated loss of €468 thousand. Gross cash flow amounted to €-191 thousand.

Consolidated equity fell by €854 thousand year-on-year in the reporting period, from €12,926 thousand to €12,072 thousand. The equity ratio was 61.4% (previous year: 59.7%).

The order backlog fell by 20.0% compared with the prior-year figure. However, this satisfactory order backlog also contains master orders whose production lots are not expected to be called in the next three months.

Due to the continual weak order intake (-5.3% in H1, -49.6% in Q2) and the as yet unreleased orders for the tender for digital radio accessories we won from the federal state of Berlin, the Board of Management resolved to introduce short-time working for some departments at the production location in Rödermark from December 2009. Short-time working was expanded from January 2010. Previously, CeoTronics reacted to the declining production capacity utilization with the reduction of overtime and holiday entitlements, and the exploitation of potentials of flexible working time models.

Short-time working will be lifted once the switch to digital radio by security authorities and organizations in Germany and Northern Europe leads to further contracts/awards and released orders for CeoTronics, or orders pick up and capacity utilization rates improve.

CeoTronics will master the more difficult fiscal year thanks to its adequate cash funds and credit lines, high equity ratio (61.4%), expert and dedicated employees, and strong sales structure and product quality. We are currently focusing on cost management and on developing new products and new sales markets in order to have a good head-start when the economic crisis is over.

Consolidated revenues of approximately €16.0 million, consolidated EBIT of approximately €300 thousand, and consolidated profit of approximately €100 thousand are predicted for fiscal year 2009/2010, a year that has been impacted by the global economic and financial crisis.

In subsequent fiscal years, CeoTronics should achieve significantly higher revenues and earnings figures due, among other things, to the economic recovery and the switch to digital radio by governments and industry in Germany and Northern Europe.

We are looking to the future with optimism! Rödermark, January 13, 2010

Thomas H. Günther Chairman of the Board of Management

Group Management Report as of November 30, 2009

Our Market

CeoTronics specializes in high-end communications under difficult conditions, and develops, produces, and sells audio, video, and data communications solutions. The primary requirement in this niche market is to ensure clear and precise interaction: in noisy or hazardous areas, while wearing protective helmets or protective clothing, in explosion hazard zones, in undercover operations, and in hands-free communication.

Our broad range of products for extremely diverse applications meets the toughest demands and focuses in particular on endto-end system solutions in addition to traditional headsets and other communication systems for connecting to analog and digital radio systems. For example, mobile or fixed digital radio networks that can be set up in seconds and used on the move.

Our customer base includes well-known companies in industry, the service sector and sports, airlines, airports, and ground handling service companies as well as firefighters, civil defense, and rescue services.

A particular strength of CeoTronics AG is the development and supply of custom communications solutions for the German State and Federal Police, customs authorities, and the army, navy, and air force. A wide range of systems is available in this field. Fully and partially covert communication systems as well as miniature radio cameras are used for the wireless digital transfer of video images during undercover investigations and for preserving evidence.

All of CeoTronics' priority markets were dominated by the worst global economic and financial crisis in 80 years during the H1 2009/2010 reporting period.

Many priority markets still need to increase their budgets, which have been reduced over the course of many years, i.e., to adjust them for necessary investments and staffing requirements. Better communication systems enable industrial enterprises to accelerate their workflows and increase occupational safety at the same time.

The global threat posed by international terrorism has not waned. Accordingly, government security and law enforcement agencies must upgrade their equipment in order to maintain the highest degree of security for citizens, as well as to protect freedom and democracy.

Government security and law enforcement agencies in a number of priority European markets already began switching from analog to digital radio many years ago.As a result, CeoTronics' subsidiaries in Spain, France, and Switzerland have significantly increased their revenues in recent years.

Preparations are being made for the switch in several other priority European markets. CeoTronics expects large investments in Germany on the part of security authorities and organizations (BOS – Behörden und Organisationen mit Sicherheitsaufgaben), the Armed Forces, firefighters, and industry. Those responsible for Germany's switch to digital radio at the federal and state levels are projecting 500,000 BOS digital radio users and plan to invest a total of over €4.5 billion. Additionally, CeoTronics expects to see its revenues grow through the switch to digital radio in industry and by firefighters.

As CeoTronics has produced and sold over 50,000 systems for connection to the new digital TETRA/TETRAPOL radios since 1999, the Company has a pool of experience that is certainly a major competitive advantage.

Business Developments

CeoTronics' revenues in the first 6 months of fiscal year 2009/2010 (June 1 to November 30, 2009) were below the figure for the previous year. Consolidated revenues fell by €3,448 thousand (or 33.8%), from €10,193 thousand to €6,745 thousand.

Expressed in euros after consolidation, revenues in some cases increased substantially at CeoTronics Switzerland (+140.8%), CeoTronics U.S.A. (+235.4%), and CT-Video (+14.0%). As expected, CeoTronics Spain (-28.9%), CeoTronics France (-7.8%), and CeoTronics Germany (-47.2%) were unable to match the previous year's very high level of revenues. From a low level CeoTronics Poland lost 87.9% of the previous year's turnover

The share of revenues generated outside Germany increased to 50.5% in the first six months of fiscal year 2009/2010 (previous year 32.8%). The proportion accounted for by Germany fell correspondingly to 49.5% (previous year: 67.2%).

While CeoTronics recorded a significant rise in incoming orders in the first quarter of the current fiscal year, they remained behind expectations in the second quarter at a year-on-year decline of 49.6%. Overall, incoming orders in the first half of the year were down 5.3% on the previous year.

As of November 30, 2009, the order backlog contracted by 20.0% as against the prior-year.

Results of Operations

The decline in revenues meant that CeoTronics was unable to match the key earnings figures and financial indicators recorded in the same half of the previous year, which developed as follows:

€ thousand H1
2009/2010
H1
2008/2009
EBITDA -191 1.809
EBIT -468 1.549
Result before tax -536 1.512
Result for the period -468 1.170

The share of profit for the period attributable to shareholders of the parent amounted to €-461 thousand for the first half of fiscal year 2009/2010 (previous year: €1,150 thousand). Earnings per share (after tax) were €-0.07, down from €0.17 in the prioryear period.

The cost of sales fell by 3.5% from 51.8% in the previous year to 48.3% despite lower revenues due to changes in the order structure.

Operating expenses (excluding cost of materials) accounted for 20.3% of revenues, up from 15.9% in the previous year due to the significantly lower revenues.

Selling and marketing expenses as a percentage of revenues amounted to 32.8% in the first six months of fiscal year 2009/2010 (previous year 21.7%). Absolute costs (€2,212 thousand) were virtually unchanged as against the prior-year period (€2,215 thousand).

General and administrative expenses fell by 8.5%. The savings were mainly the result of lower employee expenses. These costs now account for 11.3% of revenues (previous year: 8.2%).

Research and development costs increased year-on-year, climbing by 12.2%. The ratio of research and development costs to revenues is now 13.2% (previous year: 7.8%).

Investments and Depreciation

CeoTronics has prepared itself in good time to meet future challenges by investing in employee capacity, markets, technologies, developments, and production technologies and processes.

Investments in the first six months of fiscal year 2009/2010 totaled €531 thousand, up 12.0% year-on-year (T€ 458).

Net Assets and Financial Position

Gross cash flow fell year-on-year in the reporting period, from €1,430 thousand to € -191 thousand.

Cash and cash equivalents increased by €1,161 thousand as against the prior-year period to €1,707 thousand.

As of November 30, 2009, equity fell by €854 thousand, from €12,926 thousand to €12,072 thousand. The equity ratio rose to 61.4% (previous year: 59.7%) due to the decline in total assets.

Workforce Development

The number of employees in the Group (including trainees) increased to 157 as of November 30, 2009 (November 30, 2009: 154), of whom two work in Research and Development. The increase in the workforce related solely to the Company's German locations in Rödermark and Lutherstadt Eisleben (currently 142 staff). This reflects our clear commitment to Germany.

CeoTronics' Shares

Despite poorer revenues and earnings figures in H1 2009/2010, CeoTronics' share price rose by 6.8% in the reporting period.

Nevertheless, CeoTronics' shares underperformed the benchmark indices. The TECDAX rose by 23.9%, the Technology All Share by 24.8%, and the GEX by 14.2%.

CeoTronics' shares (ISIN DE0005407407/WKN 540740), compared with the indices for the period from June 1, 2009 to November 30, 2009 (indexed)

Source: DZ Bank

Report on Risks and Opportunities up to May 31, 2010

It became clear in the course of 2009 that the current global financial and economic crisis has significantly exceeded all economic crises of the past decades in terms of both its duration and its severity. This negative development also impacted the course of business at CeoTronics.

CeoTronics is focusing on developing new products and new sales markets, as well as on cost management, in order to be ideally positioned once the economic crisis is over.

Competitors, radio manufacturers and dealers, and importers are stepping up their efforts to penetrate CeoTronics' markets – especially Germany – using components from Asia, among other things, in order to win tenders during the switch to digital radio. CeoTronics will not leave the premium segment and will continue to attempt to keep price acceptance and appreciation for its products and systems at a high level by offering outstanding quality and performance.

The switch to digital radio by the police, firefighters, and industrial enterprises in Germany, Northern Europe, and Austria offers CeoTronics attractive market potential for audio products. However, if CeoTronics does not participate to the desired extent in the switch to digital radio in the above-mentioned markets and in the continuation of the switch in Switzerland and Spain, or if the switch is delayed further in Germany and Northern Europe, this could have a more adverse effect on CeoTronics AG's revenues and earnings development.

CT video systems will play an even more important role in fighting crime and terrorism in future. The CeoTronics Group's long-term revenue growth will be boosted by authorities investing in monitoring areas at risk – especially those temporarily at risk – and in securing video evidence and trial monitoring, as well as by CT-Video GmbH's new product innovations.

The development and marketing of new products ensure CeoTronics' market leadership and open up new markets. This also applies to markets outside of the defined geographical priority markets in Europe and North America.

Report on Expected Developments

Consolidated revenues of approximately €16.0 million, consolidated EBIT of approximately €300 thousand, and consolidated profit of approximately €100 thousand are predicted for fiscal year 2009/2010, a year that has been impacted by the global economic and financial crisis.

In the following fiscal years, CeoTronics should achieve significantly higher revenues and corresponding positive earnings figures due, among other things, to the economic recovery and the switch to digital radio by governments and industry in Germany and Northern Europe.

Rödermark, January 13, 2010

CeoTronics AG

Thomas H. Günther Chairman of the Board of Management, CEO

Berthold Hemer Deputy Chairman of the Board of Management, CTO

Günther Thoma

Chief Operating Officer, COO

[email protected] • Phone +49 6074 87510

Consolidated Financial Statements as of November 30, 2009

Consolidated Balance Sheet (IFRS)

Assets in € thousand Half-yearly report
(closing date of the
current quarter)
November 30, 2009
Annual report
(closing date of last
annual report)
May 31, 2009
Current assets
Cash and cash equivalents 1,707 566
Trade receivables 2,948 3,577
Inventories 5,503 4,919
Other current assets 672 418
Total current assets 10,830 9,480
Noncurrent assets
Proberty, plant, and equipment 6,360 6,091
Intangible assets 320 355
Goodwill 1,223 1,269
Trade receivables 276 374
Deferred tax assets 646 572
Total noncurrent assets 8,825 8,661
Total assets 19,655 18,141

Consolidated Balance Sheet (IFRS)

Equity and liabilities in € thousand Half-yearly report
(closing date of the
current quarter)
November 30, 2009
Annual Report
(closing date of last
annual report)
May 31, 2009
Current liabilities
Current financial liabilities 2,988 260
Trade payables 727 682
Advance payments received 218 37
Provisions 523 1,177
Current tax payables 123 252
Other current liabilities 506 418
Total current liabilities 5,085 2,826
Noncurrent liabilities
Noncurrent financial liabilities 2,414 2,087
Deferred tax liabilities 84 84
Total noncurrent liabilities 2,498 2,171
Equity
Subscribed capital 6,600 6,600
Capital reserves 4,471 4,471
Retained earnings 886 886
Cumulative other recognized income and expense 22 -47
Net retained profit 39 1,160
Equity attributable to shareholders of CeoTronics AG 12,018 13,070
Minority interest 54 74
Total equity 12,072 13,144
Total equity and liabilities 19,655 18,141

Consolidated Income Statement (IFRS)

€ thousand September 1, 2009 -
November 30, 2009
Quarterly figures
(current quarter)
September 1, 2008 -
November 30, 2008
Quarterly figures
previous year
November 30, 2009
Year-to-date (cur
rent fiscal year)
June 1, 2009 -
Year-to-date (previ
November 30, 2008
June 1, 2008 -
ous year)
Revenues 3,923 7,195 6,745 10,193
Cost of sale -1,796 -3,846 -3,256 -5,284
Gross profit 2,127 3,349 3,489 4,909
Selling and marketing expenses -1,219 -1,200 -2,212 -2,215
General and administrative expenses -416 -513 -763 -834
Research and development expenses -513 -458 -893 -796
Other operating income and expenses -85 370 -89 485
Operating profit (EBIT) -106 1,548 -468 1,549
Interest income/expense -34 -12 -68 -37
Profit before tax -140 1,536 -536 1,512
Income tax expense -19 -349 68 -342
Profit for the period -159 1,187 -468 1,170
Consolidated profit/loss attributable to:
Minority interest
-4 15 -7 20
Shareholders of CeoTronics AG -155 1,172 -461 1,150
Earnings per share (basic) in € -0.02 0.18 -0.07 0.17
Earnings per share (diluted) in € -0.02 0.18 -0.07 0.17
Weighted average shares outstanding
(basic)
6,599,994 6,599,994 6,599,994 6,599,994
Weighted average shares outstanding
(diluted)
6,599,994 6,599,994 6,599,994 6,599,994

Consolidated Cash Flow Statement (IFRS)

€ thousand Year-to-date
(current fiscal year)
June 1, 2009 -
November 30, 2009
Year-to-date
(previous year)
June 1, 2008 -
November 30, 2008
Cash flow from operating activities
Profit before tax -536 1,512
Income tax expense 68 -342
Profit for the period -468 1,170
Dereciation, amortization, and impairment losses 277 260
Gross cash flow -191 1,430
Changes in assets and liabilities
Change in trade receivables 629 -1,390
Change in inventories -584 -313
Change in other assets -254 80
Change in trade payables 45 42
Change in advance payments received 181 487
Change in other provisions -654 -495
Change in tax payables -129 159
Change in other current liabilities 88 383
Change in deferred tax assets -74 -23
Total changes in assets and liabilities -752 -1,070
Net cash provided by/used in operating activities -943 360
Cash flow from investing activities
Payments to acquire intangible assets -27 -105
Payments to acquire property, plant, and equipment -488 -353
Change in foreign currency differences 48 -167
Disposal of noncurrent assets (net carrying amounts) 3 0
Net cash uses in investing activities -464 -625
Cash flow from financing activities
Change in current financial liabilities 2,728 1,142
Change in noncurrent financial liabilities 424 -27
Dividend payment to minority interest 0 -16
Dividend payment to shareholders of CeoTronics AG -660 -990
Net cash provided by financing activities 2,492 109
Change in cash and cash equivalents 1,085 -156
Effect of exchange rate changes on cash and cash equivalents 56 -206
Cash and cash equivalents at beginning of period 566 908
Cash and cash equivalents at end of period 1,707 546

Statement of Changes in Equity (IFRS)

Equity attributable to shareholders of CeoTronics AG
€ thousand Subscribed
capital
Capital reserves Retained
earnings
Net retained pro
fit/net accumula
ted losses
recognized income
Cumulative other
and expense
Total Minority interest Total equity
Current year
Balance at May 31, 2009
6,600 4,471 886 1,160 -47 13,070 74 13,144
Profit for the period -461 -461 -461
Dividend distribution -660 -660 0 -660
Currency translation adjustments 69 69 0 69
Change in minority interest -20 -20
Balance at November 30, 2009 6,600 4,471 886 39 22 12,018 54 12,072
Previous year´s figures for
comparison Balance at
May 31, 2008
6,600 4,471 886 898 52 12,907 60 12,967
Profit/loss for the period 1,150 1,150 20 1,170
Dividend distribution -990 -990 -16 -1,006
Currency translation adjustments -207 -207 1 -206
Change in minority interest -15 -15 16 1
Balance at November 30, 2008 6,600 4,471 886 1,043 -155 12,845 81 12,926

The equity ratio of the CeoTronics Group was 61.4% as of November 30, 2009 (previous year 59.7%).

There were no material changes to equity compared with the last annual financial statements.

Notes to the Consolidated Half-yearly Report

Accounting policies

The unaudited consolidated quarterly report of CeoTronics AG as of November 30, 2009 was prepared in accordance with the International Financial Reporting Standards (IFRSs). This interim report complies with IAS 34 Interim Financial Reporting.

The quarterly report was prepared using the accounting, measurement, and consolidation principles applied in the preparation of the consolidated annual financial statements as of May 31, 2009. Further details can be found in the Annual Report for fiscal year 2008/2009.

Consolidated group structure and shareholdings

There were no changes in the consolidated Group structure in the first three months of fiscal year 2009/2010.

The following companies are included in the consolidated financial statements:

CeoTronics AG (Rotkreuz, Switzerland), CeoTronics S.A.R.L. (Brie Comte Robert, France), CeoTronics Ltd. (Aberdeen, United Kingdom), CeoTronics Inc. (Virginia Beach, U.S.A.) ,CeoTronics S.L (Madrid, Spain), CT-Video GmbH (Lutherstadt Eisleben, Germany), CeoTronics Sp. z o.o. (Lodz, Poland). Subsidiaries in which the parent directly or indirectly holds the majority of shares and hence of the voting power are consolidated in accordance with the principles of acquisition accounting under IFRSs.

We account for the 25% minority interest in CeoTronics Sp. z o.o. by deducting the minority interest and the resulting effects on profit or loss within equity in the balance sheet, in the income statement, the cash flow statement, and the statement of changes in equity.

Consolidated Segment Reporting

The Company assesses the performance of the subsidiaries on the basis of their pre-tax profit. The accounting and reporting principles used for regional reporting comply with the group accounting principles. The subsidiaries in the individual countries are legally independent and have their own management teams.

The Company's product groups are comparable in terms of both the production process used and the marketing methods. Internal and external reporting primarily follows geographic criteria.

The information below is presented by region.

Revenues

Revenues for the first six months of 2009/2010 and 2008/2009 are attributable as follows, broken down by country of origin (primary segment):

€ thousand H1
2009/2010
H1
2008/2009
Germany 1,135 7,739
Rest of Europe 5,383 2,386
Rest of world 227 68
Revenues 6,745 10,193

By customer country (secondary segment):

€ thousand H1
2009/2010
H1
2008/2009
Germany 3,340 6,852
Rest of Europe 3,091 3,169
Rest of world 314 172
Revenues 6,745 10,193

Profit/loss

The profit or loss for the first six months 2009/2010 and 2008/2009 is attributable as follows to the subsidiaries in the various regions (primary segment):

€ thousand H1
2009/2010
H1
2008/2009
Germany -290 798
Rest of Europe 8 92
Rest of world -186 280
Consolidated profit for
the period
-468 1,170

Segment assets

Segment assets are attributable as follows to the subsidiaries in the various regions (primary segment) as of November 30, 2009 and November 30, 2008:

€ thousand November
30, 2009
November
30, 2008
Germany 14,180 15,980
Rest of Europe 3,644 3,746
Rest of world 1,831 1,929
Total segment assets 19,655 21,655

Segment liabilities

Segment liabilities are attributable as follows to the subsidiaries in the various regions (primary segment) as of November 30, 2009 and November 30, 2008:

€ thousand November
30, 2009
November
30, 2008
Germany 7,133 7,582
Rest of Europe 336 1,085
Rest of world 29 62
Total segment liabilities 7,498 8,729

Noncurrent assets

Noncurrent assets are attributable as follows to the subsidiaries in the various regions (primary segment) as of November 30, 2009 and November 30, 2008:

€ thousand November
30, 2009
November
30, 2008
Germany 6,586 6,060
Rest of Europe 523 533
Rest of world 794 951
Total noncurrent assets 7,903 7,544

Investments

Investments in the first six months of 2009/2010 and 2008/2009 are attributable to the subsidiaries in the various regions (primary segment) as follows:

€ thousand H1
2009/2010
H1
2008/2009
Germany 512 417
Rest of Europe 1 4
Rest of world 0 37
Total investments 513 458

Depreciation, amortization, and impairment losses

Depreciation, amortization, and impairment losses are attributable as follows to the subsidiaries in the various regions (primary segment) in the first six months of 2009/2010 and 2008/2009:

€ thousand H1
2009/2010
H1
2008/2009
Germany 256 238
Rest of Europe 16 17
Rest of world 5 5
Total depreciation, amor
tization, and impairment
losses
277 260

Executive Bodies

Changes in the Company´s executive bodies

There were no changes in the Company's executive bodies in the first six months of 2009/2010.

Shareholdings of the members of the executive bodies as of November 30, 2009

(ISIN DE0005407407/WKN 540740) CeoTronics
shares
(quantity)
Board of Management
Chairman Thomas H. Günther 28,494
Deputy Chairman Berthold Hemer 513,150
Chief Operating
Officer
Günther Thoma 18,066
Supervisory Board
Chairman Hans-Dieter Günther 1,113,600
Deputy Chairman Horst Schöppner 655,410
Member Stephan Haack 0

The total number of CeoTronics AG shares at the reporting date amounted to 6,599,994.

Related party disclosures

No significant related party transactions were conducted in the first six months of 2009/2010.

Responsibility Statement

"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 perfomance 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."

Rödermark, January 13, 2010

CeoTronics AG

The Board of Management

Financial Calendar*

Publication of preliminary revenue
and order backlog figures for the first
9 months of fiscal year 2009/2010
Calendar week 9, 2010
Report on 3rd quarter as of
February 28, 2010
March 25, 2010
End of fiscal year 2009/2010 May 31, 2010
Publication of preliminary revenue
and order backlog figures for the full
fiscal year 2009/2010
Calendar week 22, 2010
Annual report 2009/2010 August 13, 2010
Annual earnings press conference
and Analyst meeting
August 26, 2010
Publication of preliminary revenue
and order backlog figures for the first
3 months of the fiscal year 2010/2011 Calendar week 35, 2010
Report on 1st quarter as of
August 31, 2010
October 8, 2010
General Meeting 2010 November 5, 2010

* (Dates may change)

Legal Notice:

This quarterly report contains forward-looking statements that reflect the current views of CeoTronics AG's Board of Management. These statements are based on the Company's current plans, estimates, projections, and expectations and are therefore subject to risks and uncertainties that could cause actual results to differ from expected results. The forward-looking statements are only valid at the time of publication of this quarterly report and cannot be guaranteed. CeoTronics AG assumes no obligation to the public to update or correct forward-looking statements. This does not affect the Company's statutory obligation to fulfill its information and reporting duties.

CeoTronics Update

CT-Video GmbH's tenth anniversary.

CT-Video GmbH had a number of reasons to celebrate in November 2009: The move to the expanded production building and the Company's tenth anniversary were celebrated at a ceremony with employees and numerous guests from across Germany.

In addition to representatives from the Saxony-Anhalt state parliament, the Mansfeld-Südharz district council, the local lord mayor, and chamber of commerce officials, many companies involved in the building's construction also accepted the invitation from CT Video's management. The Supervisory Board and the Board of Management of the parent, CeoTronics AG, also took part in the ceremony. In his speech, Günther Thoma, Managing Director of CT-Video, emphasized the far-sighted attitudes of CeoTronics' Board of Management to establish a subsidiary for video communications. The subsidiary was profitable only three years after it was founded, and doubled revenues between 2004 and 2008; revenues rose by a further 20% in the last fiscal year. Management continues to expect double-digit growth for the current fiscal year.

Production capacity in Lutherstadt Eisleben was expanded by 650 m² to a total of approximately 1,900 m². CT-Video GmbH currently employees 41 people. The expansion will result in 65 people being employed locally. The expansion of capacities serves not only the development, production, and quality assurance of CT-Video products: the new premises are also intended to be used to manufacture standard audio products. Corresponding capacities for the production of audio accessories for radios are expected to be used here in connection with the switch to digital radio networks by the authorities in Germany, Austria, and Northern Europe.

Relaunch CT-News gets new format and design!

With the introduction of the new corporate design the CT-News, the popular newsletter for customers and employees got a redesign. The relaunch puts emphasis on a more modern cover design and even more information in a large format magazine stile.

CT-News No. 40 for customers and interested parties will be available soon. On request it will be sent out by regular mail or e-mail. It can also be downloaded from our website.

Further information about CeoTronics you find in the internet:

www.ceotronics.com

www.ct-video.com

Wireless Video Transmission Systems

[email protected]

CeoTronics AG

Audio • Video • Data Communication Adam-Opel-Str. 6 63322 Rödermark (Germany) Tel.: +49 6074 8751-722 Fax: +49 6074 8751-720 E-Mail: [email protected] Web: www.ceotronics.com

Talk to a Data Expert

Have a question? We'll get back to you promptly.