Earnings Release • May 9, 2011
Earnings Release
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Corporate | 9 May 2011 07:00
Gigaset AG: Figures for the first quarter 2011: Gigaset AG on track
Gigaset AG / Key word(s): Quarter Results
09.05.2011 / 07:00
Figures for the first quarter 2011: Gigaset AG on track
– Gigaset achieves clearly positive EBITDA
– Significant improvement in consolidated annual net income
– Positive free cash flow generated
– Continued low financial debt
– Outlook reaffirmed for 2011
Munich, May 9, 2011 – In the first quarter of 2011 Gigaset AG was able to continue the satisfying course of the final quarter of 2010, which was brought about by successfully redirecting the company in the telecommunications industry. The company views the forthcoming business year positively.
Sales revenues from continuing operations are almost entirely composed of the core segment, Gigaset, and are subject to the usual seasonal fluctuations in the consumer business. Therefore, sales revenues from continuing operations declined slightly, the EBITDA generated could however remain on the extraordinarily high level of the previous year's figure of about EUR 17 million. This illustrates that, due to the processes designed to generate sustainable profitability, Gigaset is in a position to absorb revenue volatility on the earnings side and to achieve similarly high margins.
The company achieved an EBIT improvement of EUR 6.8 million to reach EUR 13.5 million. This is mainly due to the fact that in the first quarter of 2011 no other special charges were incurred and are no longer expected for the future. The income leaped by EUR 7.0 million to EUR 8.4 million.
Positive free cash flow secures investment capacity
The group generated free cash flow of EUR 2.1 million in the first quarter, having stood at EUR -12.6 in the first quarter of 2010.
This allowed the debt that had already reached a historic low on December 31, 2010, to be further reduced. As at March 31, 2011 the group still has debts of EUR 3.5 million.
2011 forecast confirmed
Gigaset strategically focuses on its core business, consistently penetrates all markets and thus improves processes now and in future, thereby sustainably increasing its profitability. This strategy is complemented by Gigaset's proven, high level of innovation. Even in the current fiscal year, new product groups with significant revenue and earnings potential will be introduced. In April, Gigaset introduced the L410 hands-free clip, a novelty on the world market, allowing total freedom of movement at the same time as hands free telephony.
In addition, the company plans to grow inorganically through acquisitions.
In the current competitive environment Gigaset has positioned itself perfectly as market leader and will be in a position to play out its strengths in terms of its product and supply policy. As a premium brand Gigaset achieves significantly higher average selling prices than the competition and furthers the displacement of the B-brands and discount brands with this clear brand profile. Especially the high quality of the products manufactured in Germany and the logistical proximity and short delivery times to key markets secure Gigaset a substantial advantage over competitors, who invariably produce outside of Europe.
Parallel to focusing on the profitable core business of voice products (cordless phones, phones for Voice over IP and fixed networks) Gigaset also promotes a range of professional applications for small and medium businesses. With strong growth rates for this IP phone system business, Gigaset will expand this to become a second major business segment. The so-called Gigaset pro business will continue to contribute a significant share of revenue.
Against this background, the Executive Board reaffirms its revenues and earnings forecast for 2011 according to which Gigaset expects revenues of EUR 540 million and an EBITDA of at least EUR 57 million.
Gigaset AG , Munich, is a worldwide operating company focusing on telecommunication and accessories. Gigaset AG is the parent company of the Gigaset Group, the leading producer of cordless phones worldwide and the market leader in Europe for DECT phones.
The shares of Gigaset AG are traded in the Prime Standard of the Frankfurt Stock Exchange. Symbol: AQU, ISIN: DE0005156004.
You can find out more about Gigaset AG at http://www.gigaset.ag
Contact:
Gigaset AG
Kerstin Diebenbusch
Investor Relations
Tel.: +49 (0)89 444456-937
E-Mail: [email protected]
End of Corporate News
09.05.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
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| Language: | English |
| Company: | Gigaset AG |
| Hofmannstraße 61 | |
| 81379 München | |
| Deutschland | |
| Phone: | +49 89/255500-0 |
| Fax: | +49 89/255500-200 |
| E-mail: | [email protected] |
| Internet: | www.gigaset.com |
| ISIN: | DE0005156004 |
| WKN: | 515600 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart |
| End of News | DGAP News-Service |
| - - - |
| 123510 09.05.2011 |
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