technotrans SE

Earnings Release • Aug 5, 2010

News Details

Ad-hoc | 5 August 2010 07:01

At technotrans the upswing is gradually taking shape

technotrans AG / Half Year Results/Quarter Results

05.08.2010 07:01

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---

For the first time in a long while, revenue for the second quarter of the
2010 financial year was higher than in the corresponding prior-year
quarter. The business volume reached EUR 21.0 million and was therefore
2.6% up on the second quarter of 2009 (EUR 20.5 million). This welcome
development is attributable exclusively to the Technology segment, where
the revenue trend was reversed from a fall of 21.4% in the first quarter to
a rise of 4.9% in the second quarter. Revenue for the first half of 2010
reached EUR 40.8 million.

The 2.6% rise in revenue in the second quarter also led to an improvement
in earnings. A gross profit of EUR 6.9 million was achieved, representing a
rise of 6.5% on the second quarter of the previous year (EUR 6.5 million);
the gross margin was 32.8% (previous year 31.6%). Half way through the year
the gross profit was EUR 13.3 million despite the lower revenue (previous
year EUR 12.7 million, +4.8%).

Whereas the prior-year quarter had yielded a loss of EUR 1.1 million at
EBIT level, the second quarter of the 2010 financial year was likewise once
again profitable. EBIT reached EUR 0.9 million, representing a slight
improvement on the result for the first quarter of 2010 (EUR 0.6 million);
the EBIT margin was 4.4%, as against 3.2% in the first quarter of 2010.
Whereas first-half EBIT was still negative at EUR -2.0 million in the
previous year, it reached EUR 1.6 million or 3.8% in 2010.

The net income for the period was EUR 0.5 million for the second quarter,
bringing the total for the first half to EUR 0.8 million. This corresponds
to earnings per share of EUR 0,13 (previous year EUR -0.41) for shares
outstanding.

Net worth and financial position

Changes on the equity and liabilities side of the balance sheet largely
concerned the financial liabilities, the maturities of which have shifted
towards the medium to long-term as a result of the new financing concept.
Current liabilities thus fell by around EUR 6.3 million, whereas
non-current liabilities simultaneously rose by EUR 5.9 million. Largely
because of this change, working capital (current assets - current
liabilities) grew from EUR 9.0 million in the first quarter to EUR 17.0
million at the end of the second quarter.

Net cash from operating activities at the six-month mark was up to EUR 3.6
million (previous year EUR 6.5 million). In relation to revenue, this
produced a cash flow ratio of 8.9%. The free cash flow remains positive
after six months, at just under EUR 3.2 million.

Net debt continued to fall to EUR 9.5 million (end of 2009: EUR 12.4
million). Gearing at the reporting date was 28.7%.

Outlook

There have been increasing signs over the past few weeks that the printing
industry has overcome the worst of the crisis. This underpins the
expectations of a slightly more dynamic business performance in the second
half which, bearing in mind the weak start to the year, will be needed if
the company is to achieve its revenue and earnings targets for the 2010
financial year as a whole.

In pursuing activities focusing on applications away from the printing
industry technotrans is generating fresh future potential in an effort to
safeguard the company's long-term growth. An initial visible step was taken
through the cooperation with Termotek AG. If the shared expectations of the
cooperation are fulfilled, technotrans will be prepared to strengthen ties
with Termotek still further. Besides there are also various other options
that technotrans is planning to explore primarily with self-developed
products. The extent to which these projects have taken on firm contours
varies considerably, but in certain cases technotrans has already reached
the phase of building prototypes and will now proceed to test them in
practice.

In light of expectations that business should recover further in the second
half of the year, Management believes there is further scope for
improvement over the year as a whole. All in all, it expects to achieve the
revenue target (EUR 85 to 90 million) for the current financial year; the
pace of development in the second half will substantially determine how far
technotrans can progress beyond the lower end of this range. technotrans
has successfully returned to sustained profitability even from a low level
of revenue. Management continues to expect a margin of between 3 and 5% for
the second half. Here, too, an upturn in revenue would have clearly
positive effects and would pave the way for EBIT margins in excess of 5%.

Contact: Thessa Roderig, technotrans Investor Relations, phone +49
(0)2583/301-1887, mail thessa.roderig@technotrans.de

05.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

---

Language: English
Company: technotrans AG
Robert-Linnemann-Str. 17
48336 Sassenberg
Deutschland
Phone: +49 (0)2583 - 301 - 1000
Fax: +49 (0)2583 - 301 - 1030
E-mail: info@technotrans.de
Internet: http://www.technotrans.de
ISIN: DE000A0XYGA7
WKN: A0XYGA
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart

End of News DGAP News-Service

---