CeoTronics AG

Earnings Release • Oct 10, 2008

News Details

Ad-hoc | 10 October 2008 14:42

CeoTronics AG: Consolidated Interim Report for Q1 2008/2009

CeoTronics AG / Quarter Results

Release 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.

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Revenues of €2,998 thousand / Positive EBITDA, EBIT, profit as well as cash
flow development / Healthy order backlog

CeoTronics AG Audio Video Data Communication (ISIN: DE0005407407),
Adam-Opel-Strasse 6, 63322 Rödermark, Germany, listed in the Prime Standard
and the Technology All Share segment of the Frankfurt Stock Exchange,
generated consolidated revenues of €2,998 thousand in the first quarter of
fiscal year 2008/2009 (the summer months of June, July, and August) in
accordance with IFRSs (down €147 thousand as against prior-year figure).

The Group's order backlog normalized by -40.1% year-on-year as of August
31, 2008.

EBITDA (Earnings before Interest, Taxes, Depreciation and goodwill
Amortization/impairment) increased by €57 thousand compared with the
prior-year period, from €71 thousand to €128 thousand. EBIT improved by €59
thousand, from €-58 thousand to €1 thousand. Consolidated profit before tax
improved by €56 thousand, from €-80 thousand to €-24 thousand. Consolidated
profit after tax improved by €80 thousand, from €-97 thousand to €-17
thousand.

Gross cash flow increased by €78 thousand in the period under review, from
€32 thousand in the prior-year period to €110 thousand. Earnings per share
increased by €0.01 to € 0.00, compared with €-0.01 for the same period last
year.

Consolidated equity as of August 31, 2008 amounted to €12,908 thousand (up
€1,295 thousand), while the equity ratio was 72.5% (prior-year period:
70.4%).

The number of employees in the Group (including trainees) increased to 151
as of August 31, 2008 (August 31, 2007: 145).

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Information and Explaination of the Issuer to this News:

The slight fall in revenues can be explained by the production work already
performed for the third batch of the major order CT-DECT JetCom systems
from the German Armed Forces for. This batch, worth some €3.0 million, is
expected to be delivered and invoiced in the second quarter. Pulling
forward a large portion of the production work freed up capacity to
complete orders by the end of 2008 and for possible orders relating to the
switch to digital radio by the German security authorities and
organizations. In addition, delays in contract awards, the continued and
expected 'revenue normalization' in Spain and France, and the sluggish
switch to digital radio by the security authorities and organizations in
Germany and other neighboring European countries all affected revenue
development in Q1 2008/2009.

Despite the slight decline in revenues, all key earnings and financial
indicators improved year-on-year – in some cases substantially.

The order backlog fell as expected compared with the prior-year figure, as
CeoTronics was able to deliver and invoice the first two batches of the
major order from the German Armed Forces in the course of fiscal year
2007/2008. At the prior-year reporting date, these had been contained in
the order backlog in the amount of approximately €5.5 million. The healthy
order backlog as of August 31, 2008 is above the average for the last three
quarterly reporting dates.

At -6.6%, CeoTronics AG’s share price fell in the period under review (June
1 to August 31, 2008) despite the publication of very strong figures for
fiscal year 2007/2008 (e.g., revenues +18.8%, approximately 45% rise in
EBIT, and approximately 75% rise in profit).

The undervaluation of CeoTronics shares was documented by the research
study published by German Business Concept AG (GBC) on September 4, 2008.
The price target calculated by GBC is €4.87, with an upside potential in
excess of 70%. (October 9, 2008: > 111%) CeoTronics shares received a buy
recommendation.

The undervaluation of CeoTronics shares is also shown by the following key
figures: The price/earnings ratio is 8.3, the price/book ratio was measured
at 1.2, and the enterprise value/EBITDA ratio is 4.8 (each based on the
share price on October 9, 2008, and the figures for fiscal year 2007/2008).

If the General Meeting on November 7, 2008 adopts the dividend proposal of
€0.15 per share, the dividend yield will be 6.5% as measured in terms of
the share price as of October 9, 2008.

In keeping with tradition, CeoTronics expects to issue its revenue and
earnings targets for fiscal year 2008/2009 in January 2009, at the time of
publication of its interim results for the first half of the year.

'Our current order backlog and the expected deliveries and invoices
stretching into the third quarter of the current fiscal year, as well as
the switch to digital radio in Germany, Austria, and Northern Europe offer
CeoTronics an interesting future revenue potential,' said Thomas. H.
Günther, Chairman of the Board of Management.

Further information:

CeoTronics AG
Audio Video Data Communication
Investor Relations, Adam-Opel-Strasse 6, 63322 Rödermark, Germany
Tel.: +49 6074/8751-722, Fax: +49 6074/8751-720
E-mail: chairman@ceotronics.com, Internet: http://www.ceotronics.com
10.10.2008 Financial News transmitted by DGAP

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Language: English
Issuer: 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, Stuttgart, München, Hamburg, Düsseldorf

End of News DGAP News-Service

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