CeoTronics AG

Earnings Release • Jul 16, 2010

News Details

Ad-hoc | 16 July 2010 14:45

CeoTronics AG: Impairment losses related to the investment in CeoTronics, Inc., USA, increase loss for fiscal year 2009/2010

CeoTronics AG / Profit Warning

16.07.2010 14:45

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

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Rödermark, July 16, 2010 - CeoTronics AG Audio Video Data Communication
(ISIN: DE0005407407), Adam-Opel-Strasse 6, 63322 Rödermark, Germany, listed
in the Prime Standard segment of the Regulated Market on the Frankfurt
Stock Exchange and in the 'DAXplus Family Index', has identified a need to
charge impairment losses due to the current development of the business and
future prospects of CeoTronics Inc., U.S.A. As things stand today,
CeoTronics, Inc.'s current development of the business and prospects for
fiscal year 2010/2011 do not appear to be sufficiently positive to support
the original planning primarily due to the expected delay in the launch of
new products (due to delays in getting approvals by the US Authorities),
the training of new sales force members, which is a time-consuming task for
sales management, and the development of a stronger indirect sales channel.

The impairment test performed after completion of the annual planning
process has identified a need to charge an impairment loss on the goodwill
reported in CeoTronics AG's consolidated financial statements (EUR615
thousand). Valuation allowances will also have to be charged on deferred
tax assets in respect of tax loss carryforwards at CeoTronics, Inc. (EUR280
thousand). In addition, the carrying amount of the investment in CeoTronics
Inc. in CeoTronics AG's unconsolidated financial statements will have to be
written down by EUR777 thousand and receivables from CeoTronics, Inc. by
EUR1,342 thousand.

These one-off effects are expected to reduce CeoTronics, Inc.'s profit for
fiscal year 2009/2010 by US$ 903 thousand, CeoTronics AG's net income
reported in its single unconsolidated financial statements by EUR2,119
thousand, and CeoTronics's IFRS consolidated profit for the period by
EUR895 thousand. As a result of the impairment losses related to the
investment in CeoTronics, Inc., CeoTronics AG is expecting a consolidated
loss for the period of EUR1,400 thousand. Because CeoTronics AG will not
have sufficient net retained profit (Bilanzgewinn), and consolidated profit
for the period would also have been negative without these one-off effects,
there is no basis for paying a dividend for fiscal year 2009/2010.

These impairment losses will not result in negative cash flow effects. The
Group's equity ratio as of May 31, 2010 will not fall below 60%.

Further information:
CeoTronics AG Audio Video Data Communication
Investor Relations, Adam-Opel-Strasse 6, 63322 Rödermark, Germany
Tel.: +49 (0)6074/8751-722, Fax: +49 (0)6074/8751-720
E-mail: chairman@ceotronics.com, Internet: http://www.ceotronics.com

16.07.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: CeoTronics AG
Adam-Opel-Straße 6
63322 Rödermark
Deutschland
Phone: +49 (0)6074 8751-724
Fax: +49 (0)6074 8751-720
E-mail: investor.relations@ceotronics.com
Internet: www.ceotronics.com
ISIN: DE0005407407
WKN: 540740
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg

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