CeoTronics AG

Earnings Release • Jan 13, 2006

News Details

Ad-hoc | 13 January 2006 15:58

CeoTronics AG: Consolidated Report on H1 2005/2006

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Revenues with EUR8,111 thousand above plan / EBITDA EUR1,056 thousand / EBIT EUR734 thousand / net income after taxes for H1 EUR400 thousand / gross cash flow EUR722 thousand / order backlog up 49.8% / revenue target 2005/2006: approx. EUR17,000 thousand / earnings target 2005/2006: approx. EUR800 thousand CeoTronics AG Audio Video Data Communication, Adam-Opel-Strasse 6, 63322 Rödermark, Germany, listed in the PRIME Standard and the Technology All Share Index (ISIN: DE0005407407), recorded a year-on-year decline in consolidated revenues (in accordance with U.S. GAAP) for the first six months of fiscal year 2005/2006 of EUR549 thousand as of November 30, 2005, from EUR8,660 thousand to EUR8,111 thousand. This corresponds to a decrease of only 6.3% as against the record half-year in 2004/2005; the order backlog as of November 30, 2005 increased by 49.8% year-on-year. EBITDA (Earnings before Interest, Taxes, Depreciation and goodwill Amortization/impairment) dropped by EUR155 thousand compared with the prior- year period, from EUR1,211 thousand to EUR1,056 thousand. EBIT decreased by EUR282 thousand, from EUR1,016 thousand to EUR734 thousand. Net income after taxes declined by EUR195 thousand, from EUR595 thousand to EUR400 thousand. Earnings per share fell by EUR0.09, from EUR0.27 to EUR0.18. Gross cash flow declined by EUR68 thousand year-on-year, from EUR790 thousand to EUR722 thousand. The Group’s shareholders’ equity amounted to EUR10,741 thousand as of November 30, 2005, and the equity ratio was 77.4% (previous year: 70%). CeoTronics increased its headcount by 6 in Germany for a total of 129 employees in the Group due to the extremely high order backlog and to enable it to leverage all possible opportunities in the priority markets. Investments rose by 203% compared with the prior-year period. After only six months of the current fiscal year 2005/2006, it is possible to confirm on the basis of invoiced revenues and the order backlog that CeoTronics France, CeoTronics Spain, and CT-Video GmbH will all generate their highest revenues and earnings ever in fiscal year 2005/2006. For fiscal year 2005/2006 as a whole, the CeoTronics Group aims to increase total revenues by around 7 % year-on-year to roughly EUR17,000 thousand, and to generate earnings of approximately EUR800 thousand. In addition, the Board of Management plans continuity in dividend payments, if these targets are reached. A comparison with Q2 2004/2005 reveals a drop in consolidated revenues of EUR1,593 thousand from EUR5,861 thousand to EUR4,268 thousand, a fall in EBITDA of EUR598 thousand from EUR1,052 thousand to EUR454 thousand, and a decrease in EBIT of EUR620 thousand from EUR959 thousand to EUR339 thousand. Net income after taxes declined quarter-on-quarter by EUR381 thousand, from EUR584 thousand to EUR203 thousand. Earnings per share for the quarter decreased from EUR0.27 to EUR0.09, a drop of EUR0.18. Gross cash flow declined by EUR359 thousand in the period from September 1 to November 30 as against the previous quarter, from EUR677 thousand to EUR318 thousand. CeoTronics AG Adam-Opel-Straße 6 63322 Rödermark Deutschland ISIN: DE0005407407 WKN: 540740 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 13.01.2006 Issuer’s information/explanatory remarks concerning this ad hoc announcement: As expected, the Company was unable to repeat the extremely high revenues, EBITDA, EBIT and cash flow generated in H1 2004/2005 in the period ending November 30, 2005. This was because the largest single order in the Company’s history to date, amounting to EUR1.92 million, was delivered and invoiced to the German Air Force in November 2004. Although revenues rose year-on-year by 14.1% (in EUR) business in the U.S.A. was slightly below our expectations in the first half of the year. Due to a lot of projects in preparation and an order backlog development of +38.1% (in EUR) of January 6, 2006, we assume an ongoing positive development in the business year 2005/2006. Revenues in accordance with the HGB (Handelsgesetzbuch – German Commercial Code) for the German parent company CeoTronics AG, domiciled in Rödermark, decreased by 17.9% as against H1 2004/2005 with its record results, while EBITDA declined by EUR1,100 thousand from EUR1,815 thousand to EUR715 thousand, and EBIT by EUR1,205 thousand from EUR1,641 thousand to EUR436 thousand. Net income after taxes for the half-year declined by EUR489 thousand, from EUR1,151 thousand to EUR662 thousand because the depreciation the carrying amount of the investment in the parent company’s HGB balance sheet in this half year was substantially lower and the dividend payments of some daughter companies to the CeoTronics AG were higher. In the period under review, the price of CeoTronics shares increased by a further 13.4%, outperforming the positive trend on the TECDAX (+9.5%) and the Technology All Share Index (+11.6). “Our consolidated revenues of EUR10,582 thousand (only -1%) to date (January 6, 2006), together with the extremely high order backlog (+71,8%, also as of January 6, 2006) and the sizable market potential for CeoTronics products (e.g. the football World Cup in 2006), form a good basis for continuing the CeoTronics Group’s success story in fiscal year 2005/2006. Increased capital expenditure in new markets, human resources, and the development of new products assure the future of the CeoTronics Group”, 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 End of message (c)DGAP