Kontron AG (formerly S&T AG)

Earnings Release • Nov 27, 2000

News Details

Ad-hoc | 27 November 2000 15:54

Ad hoc-Service: GERICOM AG Engl.

Ad hoc-Mitteilung verarbeitet und übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist der Emittent verantwortlich. —————————————————————————— Mobile computing specialist with record growth Growth in earnings of 150 percent to EURO 9.6 million at GERICOM AG 3rd quarter very successful – DVFA profit per share rises to Euro 0,59 (Euro 0.23 in 1999) – Major new order from English retailer Linz, 27th November 2000: GERICOM AG can look back on a very successful third quarter in the current fiscal year. In comparison to the same period of the previous year, the mobile computing specialist, which initiates business for retailers with notebooks, Internet-compatible multimedia products and communications electronics, increased its sales in the first nine months of 2000 by 40.8% and earnings before tax by 153%. The DVFA profit per share figure for this period thus rose to Euro 0.59, well above the previous year’s figure of Euro 0.23. This strong performance was, in particular, a result of above- average growth of 82% in the area of mobile computing (high performance and lifestyle products) and an increase in the proportion of sales accounted for by high-margin direct business with high-end products. Of total notebook sales, over 75% were made in Germany, so that GERICOM AG was able to consolidate further its market leadership in the household sector in Germany. Increased promotional activity also contributed to the rise in sales, as did the consequent stronger relationships with new retail customers in the food and media sectors. Compared to the same period of the previous year. total sales in the first nine months of 2000 increased from Euro 155.4m to Euro 218.8m, while earnings before tax increased from Euro 3.8m to Euro 9.6m. Net profits for the period increased at an above-average rate from Euro 2.5m to Euro 6.3 m. GERICOM AG, which is already outstandingly well-positioned in Germany as the market leader for notebooks in the household sector, also successfully stepped up its European expansion. In addition to the development of a central distribution centre for the European market, the company also made a particularly successful entry into the English market, a step which was originally planned for 2001. This success is underscored by a contract concluded last week, for a major order from the largest English computer retailer, Dixons, which will see Gericom marketing several thousand notebooks with a total value of around Euro 6 million for the Christmas trade in England. Negotiations are currently taking place between the two partners with regard to regular monthly deliveries in 2001, which could represent around 10 times the volume of the current order. This is an example of how GERICOM takes advantage of its pioneering technical role in the growth segment of mobile computing to tie it to customers like Dixons. Thus, the company is a front-runner in marketing the first notebook with a 933 MHz Intel Pentium III processor. This Notebook has already been awarded the highly-prized LGA certificate from the Landesgewerbeamt Bayern (Bavarian State Factory Inspectorate), which confirms its high level of functionality (e.g. with respect to temperature or the life of its storage batteries) and electrical safety. The Board of Management of GERICOM AG regards the future business prospects for the company as extremely positive and, in view of the record level of earnings before taxes of Euro 9.6 million achieved in the first nine months of the year and with an eye on the imminent Christmas trade and the traditionally strongest 4th quarter, is extremely confident that planning targets for the full-year will be met. In addition, the market for mobile computing & communication will continue to grow at an above-average rate over the coming year, thanks to the growing demand for lifestyle products and mobile communication solutions and on the basis of the new technologies and transmission standards such as, for example, GPRS. Business initiators like GERICOM AG, who seek to strengthen ties with their customers through comprehensive promotional activity, will benefit from increasing demand for efficient service and for the provision of consultancy services to customers in sectors such as the food industry or the book trade who do not have their own technological know-how. The company has already succeeded in doing this with Europe’s leading computer retailers, as evidenced by the fact that, according to their own figures, two of the leading retail chains already obtain more than half of all notebooks they sell from GERICOM. The complete nine-month report can be accessed under www.gericom.com. Contacts: GERCOM AG Kohtes Klewes Frankfurt GmbH Mag. Michaela Hochreiter Björn Wojtaszewski Investor Relations Manager Wind mühlstraße 1 Industriezeile 35 60329 Frankfurt am Main A-4021 Linz Telephone: +49 (0)69-242 86 144 Telephone: +43-732-7664-9113 Fax: +49 (0)69-242 86 250 Fax: +43-732-7664-113 E-Mail: wojtaszewski.bjoern@kohtes-klewes.de Mobile: +43-664-1853371 E-Mail: hochreiter@gericom.com www.gericom.com Ende der Mitteilung