Funkwerk AG

Earnings Release • Mar 5, 2010

News Details

Ad-hoc | 5 March 2010 17:27

Funkwerk presents preliminary figures for 2009 – return to growth and positive result in 2010

Funkwerk AG / Profit Warning

05.03.2010 17:27

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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Funkwerk presents preliminary figures for 2009 -
return to growth and positive result in 2010

Kölleda, March 5, 2010. In 2009, Funkwerk AG (ISIN: DE 0005753149) largely
completed its restructuring measures geared to reduce costs and now expects
to return to growth and a positive result in the coming year. In 2010 the
focus will be on further developing the business models and the
optimization of processes.

According to the preliminary figures now available, the specialist in
professional communication and information systems generated sales of
around EUR219m in the 2009 crisis year. The result remains some 24% below
the prior-year figure (2008: EUR290m). This puts earnings from operations
(before restructuring costs and one-off intangible asset impairment) at
around EUR-14m.

Considerably below projections, the sales trend necessitated adjustment and
restructuring measures in all Funkwerk segments. These were aimed to stop
sources of loss, discontinue peripheral activities, and increase the focus
on sustainable and promising product and market fields. The resulting
restructuring costs of around EUR9m in fiscal 2009, however, must be seen
opposite permanent cost savings of an estimated EUR10m in the following
years.

Due to lower sales revenues, adjustments in the product portfolio and the
discontinuation of unprofitable business activities, Funkwerk was also
required under IFRS to carry out an impairment test and include one-off or
extraordinary amortisations of intangible assets including goodwill and
capitalised development costs in its financial statements. These liquidity-
unrelated impairment expenses totalled around EUR20m.

Taking all these factors into account, Funkwerk expects negative
consolidated earnings before interest and taxes of around EUR-42m for the
whole year. The company's stringent cost and spending discipline, however,
meant that the operating cash flow remained well in the black in the fourth
quarter of 2009, amounting to over EUR15m. This quarterly trend led to an
appreciably positive cash flow from operating activities for the whole
year, after EUR-10m only at the end of the third quarter of 2009. Towards
year-end, the liquidity situation of Funkwerk thus markedly improved on the
third quarter. At over EUR 22m the cash position remained approximately on
prior year level. The net cash-position ended at around EUR 20m. The
company's equity ratio, despite the balance sheet loss could also be
stabilised at over 50%, an above-average level, due to adjustment of the
balance sheet structure and significant reduction of the working capital.

The implementation of its restructuring programme enabled Funkwerk to
improve its competitive position in all its segments and achieve permanent
cost savings for 2010 and beyond. Funkwerk should also benefit in all areas
from the recovery of the global economy. In light of this and the
aforementioned financial basis at year end along with orders at hand worth
slightly under EUR100m, the Executive Board expects a growth in sales in
the current financial year and to report a positive group result.

For further information contact

Funkwerk AG
Im Funkwerk 5
99625 Kölleda/Thuringia
Germany
Jörg Reichenbach
Investor Relations
Telephone: +49 ( 0) 36 35/6 00 -3 46
Fax: +49 (0) 36 35/6 00 -5 07
reichenbach@funkwerk.com

05.03.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: Funkwerk AG
Im Funkwerk 5
99625 Kölleda
Deutschland
Phone: +49 (0)3635 600 0
Fax: +49 (0)3635 600 507
E-mail: info@funkwerk.com
Internet: www.funkwerk.com
ISIN: DE0005753149
WKN: 575314
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart

End of News DGAP News-Service

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