Interim / Quarterly Report • Aug 20, 2008
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
Interim report 1 January - 30 June 2008
With over 30 years' experience in telephony Doro is today characterized by innovative and user-friendly consumer electronics products. The company develops markets and sells a wide range of products in three business units: Home Electronics, Business Electronics and Care Electronics. The company's products are sold in more than 30 countries worldwide through a variety of retail outlets, including electronics stores, online stores and specialized channels. The company had sales of SEK 346 million in 2007. Doro's shares are quoted on the OMX Nordic Exchange, Small companies. Read more about Doro at Hwww.doro.com
"Care Electronics' sales continued to show strong growth during Q2, climbing by almost 300 per cent and the business unit now accounts for some 40 per cent of total sales. In June this figure was 47 per cent of total sales.
The HandleEasy 328gsm and HandleEasy 330gsm mobile phones are being launched successfully across Europe. During the second half of 2008 this trend is expected to continue on the back of marketing efforts and the launch of new products for senior citizens. The market for easy-to-use mobile phones adapted to a senior target group continues to grow as the awareness of their availability and ease-of-use increases.
ccording to what was communicated in the Q1 report, this A development has not yet offset Home and Business Electronics' lower sales figures. Lower sales combined with higher marketing and sales costs for introducing new mobile phones in Care Electronics, resulted in a pre tax loss for Doro of SEK 4.3 million for the second quarter.
uring the second half of 2008 we will continue to build our D Care Electronics business. In Home Electronics we will focus on the launch of new products to offset market decline. In Business Electronics we anticipate improved sales of our new range of VoIP products having strengthened our sales force".
n (SEK 72.5 m) in Q2 f ales t of total Doro had sales of SEK 68.1 millio and SEK 139.5 million (SEK 151.2 m) during the first hal year. The lower sales follows forecasted sales trends in Home and Business Electronics. Care Electronics continues to show strong growth and increased its s by almost 300 per cent compared to Q2 last year, and by over 200 per cent during the first half year. Care Electronics sales thereby represented 40 per cen sales for the second quarter and 33 per cent of total sales for the half year.
d financial items for the The operating loss before tax an second quarter was SEK 4.3 million (SEK -0.2 m) and for the half year SEK 3.7 million (SEK +1.1 m).
he gross margin improved due to the increased sales ns. T mix of Care Electronics' products with higher margins. The weakened US dollar had a positive effect on margi
w from operations during the second quarter during al The cash flo was SEK -10.0 million (SEK -16.3 m) and for the half year SEK -27.3 million (SEK -30.3 m), due to seasonal pattern and higher working capital required by Doro´s new product launches in Care Electronics. Investments the second quarter amounted to SEK 1.3 million (SEK 1.3 m) and SEK 2.8 million (SEK 1.3 m) for the half year. At the close of the period Doro had bank loans of SEK 35.7 million, and the company had SEK 60 million in tot pre-agreed credit facilities including factoring as of 30
. The equity/assets ratio was 25 per cent (23) at the end of the period
oro has three business units: Home Electronics, telephony, representing 51 per t in 2, D which is mainly home cent of sales during the second quarter (74 per cen Q2, 2007), Business Electronics, mainly specialising in business telephony, 9 per cent of sales during the second quarter (17 per cent in Q2, 2007) and Care Electronics, which specialises in telecoms and electronic products for senior citizens, 40 per cent of sales during the second quarter (9 per cent in Q 2007).
uring the first half year sales fell for comparable units K 77.3 million (SEK 97.7 m) t year. ine D by 21 per cent to SE although only by 6 per cent in volume. Due to rationalization, product mix and currency effects, margins rose compared to the same period las The negative sales trend followed the general decl of the market. However, at the end of the second quarter demand improved.
uring the first half year Business Electronics had (SEK 22.2 m). The re Doro D sales of SEK 15.5 million introduction of new ranges of VoIP (Voice over IP) products during Q1 has been slow and therefo has strengthened the sales force. A more positive sales figure for VoIP products is forecasted for the second half of 2008.
During the first half year Care Electronics increased its illion (SEK 15.1 m) – a rise of more sales to SEK 46.7 m than 200 per cent. This strong growth is mainly driven by the success of easy-to-use mobile phones. Sales were particularly strong in the Nordic region and in the UK.
ortfolio, the Doro HandleEasy 328gsm and HandleEasy d In addition to the two latest additions to the product p 330gsm, Doro also introduced an innovative amplifie cordless phone HearPlus 318w, emphasizing the need for strong ergonomic features for elderly.
rican business agazine "BusinessWeek" as one of the winners of t ze in In July, Doro was presented in the Ame m IDEA®, the American design award. It is one of the mos prestigious prizes in the world, with only top-class international designs receiving recognition. This year, five of Doro's Care Electronics products have won bron the "Communications products" category.
oro's three regions are Mainland Europe (43 per cent of first half year), Nordic (40 per cent) and UK D sales for the and Ireland (17 per cent).
ales fell by 11 per cent during the first six months of ave a higher proportion of Home S 2008, as sales still h products compared to Nordic region.
ales fell by 4 per cent. The continued strong sales e phones within Care Electronics has . S increase of mobil almost offset the declining sales in Home Electronics
ales by all business units progressed well and rose by eland region through listings S 63 per cent in the UK and Ir with key distributors. Due to the strong sales increase, Doro has gained market share in the UK.
he headcount was 56 at the end of the period. 27 are n, 17 in France, 4 in the UK, 4 in Norway T based in Swede and 4 in Hong Kong.
nette Borén as the company's new hief Financial Officer. Annette Borén will replace Stefan cial Doro has recruited An C Sjölin, as CFO of Doro on 17 October 2008. She has extensive financial experience and for the past three years has worked at Länsförsäkringar Skåne as Finan Director. She has an MBA from Lund University.
OMX Nordic Exchange Stockholm /IT. Doro is listed on the Small Cap - Telekom
ht 130,000 shares in the Eight key employees boug
ompany from DO Intressenter as of 7 January 2008. c
he parent company's net sales for the first half year million (SEK 5.3 m). Doro loss T amounted to SEK 59.5 Nordic AB, the former sales company, merged with the parent company Doro AB on 1 January 2008. The before tax was SEK 9.3 million (SEK -27.9 m).
he gradually increased proportion of Care Electronics, tal Doro sales combined with the improved T as part of to total order intake, is anticipated to improve the result for second half of 2008 compared to the same period previous year. A continuous strengthening of the US dollar may adversely affect the gross margin.
oro's risks and instability factors are mainly related to isruption, customer relations and currency D supplier d exchange rate fluctuations. Apart from these risks and instability factors, which are described in the Annual Report 2007 on pages 24, 41 and 42, no other risks of any significance have been identified during the last period.
or the Group, this interim report is prepared according orting, and the Annual F to IAS 34, Interim Financial Rep Accounts Act and for the parent company, according to the Annual Accounts Act.
he Board has decided the following dates for the r 2008: 4 February 2009 T quarterly reports: January-September 2008: 23 October 2008 January-Decembe
oro's website: www.doro.com The quarterly reports are available at D
awn up in accordance ith the same accounting principles as the last annual This quarterly report has been dr w report, and has not been subjected to a review by the company's auditors.
in this press release is provided erein pursuant to the Swedish Securities Markets Act Information disclosed h and/or the Swedish Financial Instruments Trading Act.
Lund, 20 August 2008 – 08.30
o. Reg. No 556161-9429 ordic Exchange Stockholm The Board Doro AB (publ) C Doro is listed on the OMX N Small Cap - Telekom/IT
significant risks and uncertainties faced by the company and the Group companies.
tion, please contact: EO Jérôme Arnaud, +46 46 280 50 05 For further informa C
6 280 50 80 Director Marketing, Fredrik Forssell +46 4
E-226 43 Lund, Sverige 50 60 Magistratsvägen 10 S Telefon: +46 46 280 www.doro.com
The Board and CEO confirm that this interim report rovides a fair overview of the company´s and Group´s p business, position and results and describes the
o Kastensson B Chairman of the Board
érôme Arnaud J CEO
eter Blom er P Board memb
omas Persson T Board member
onas Mårtensson J Board member
| INCOME STATEMENT (SEK m) Group | 2008 | 2007 | 2008 | 2007 | 2007 |
|---|---|---|---|---|---|
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |
| Net sales | 68.1 | 72.5 | 139.5 | 151.2 | 346.3 |
| Operating costs | -70.9 | -71.8 | -140.4 | -148.5 | -336.3 |
| Operating profit before depreciation | -2.8 | 0.7 | -0.9 | 2.7 | 10.0 |
| Depreciation acc. to plan | -0.8 | 0.1 | -1.6 | -0.6 | -0.8 |
| Operating profit after depreciation | -3.6 | 0.8 | -2.5 | 2.1 | 9.2 |
| Net financial items | -0.7 | -1,0 | -1.2 | -1.0 | -1.1 |
| Pretax profit | -4.3 | -0.2 | -3.7 | 1.1 | 8.1 |
| Taxes | 0.0 | 0.0 | 0.0 | 0.0 | -0.6 |
| Net profit | -4.3 | -0.2 | -3.7 | 1.1 | 7.5 |
| Numbers of shares (average thousand) | 17408 | 17408 | 17408 | 17408 | 17408 |
| EPS before tax | -0.24 | -0.01 | -0.21 | 0.06 | 0.47 |
| EPS after tax | -0.24 | -0.01 | -0.21 | 0.06 | 0.43 |
| BALANCE SHEET SEK m) Group | 2008 | 2007 | 2007 |
|---|---|---|---|
| 30 Jun | 30 Jun | 31 Dec | |
| Intangible assets | 10.7 | 8.8 | 10.4 |
| Tangible assets | 5.3 | 2.4 | 3.8 |
| Inventories | 56.3 | 55.7 | 51.2 |
| Current receivables | 64.7 | 70.7 | 87.7 |
| Cash at hand | 5.5 | 5.9 | 8.3 |
| Total assets | 142.5 | 143.5 | 161.4 |
| Shareholders' equity | 35.7 | 31.7 | 39.5 |
| Interest bearing liabilities | 35.8 | 11.4 | 8.0 |
| Non-interest bearing liabilities | 71.0 | 100.4 | 113.9 |
| Total equity and liablities | 142.5 | 143.5 | 161.4 |
| CASH FLOW (MSEK m) Group | 2008 | 2007 | 2008 | 2007 | 2007 |
|---|---|---|---|---|---|
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |
| Operating profit after depreciation | -3.6 | 0.9 | -2.5 | 2.1 | 9.2 |
| Depreciation | 0.8 | -0.1 | 1.6 | 0.6 | 0.8 |
| Net financial items | -0.7 | -1.1 | -1.2 | -1.0 | -1.1 |
| Taxes | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Changes in working capital | -6.5 | -16.0 | -25.2 | -32.0 | -30.1 |
| Cash flow from current activities | -10.0 | -16.3 | -27.3 | -30.3 | -21.2 |
| Acquisitions | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Investments | -1.3 | -1.3 | -2.8 | -1.3 | -5.1 |
| Cash flow from investments | -1.3 | -1.3 | -2.8 | -1.3 | -5.1 |
| Loans raised | 16.7 | 8.9 | 35.7 | 6.9 | 3.5 |
| New issue | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Dividend paid out | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Translation difference and other | 0.0 | 1.0 | 0.0 | 0.0 | 0.5 |
| Cash flow from financing activities | 16.7 | 9.9 | 35.7 | 6.9 | 4.0 |
| Change in liquid funds | 5.4 | -7.7 | 5.6 | -24.7 | -22.3 |
| Net debt | 11.7 | 4.7 | 30.2 | 5.5 | -0.3 |
| SHAREHOLDERS EQUITY (SEK m) Group | 2008 | 2007 | 2007 |
|---|---|---|---|
| 30 Jun | 30 Jun | 31 Dec | |
| Opening balance | 39.5 | 32.0 | 31.6 |
| Result of the period | -3.7 | 1.1 | 7.5 |
| Dividend | 0.0 | 0.0 | 0.0 |
| New issue | 0.0 | 0.0 | 0.0 |
| Currency effect and other | -0.1 | -1.4 | 0.4 |
| Closing balance | 35.7 | 31.7 | 39.5 |
| OTHER KEY FIGURES Group | 2008 | 2007 | 2007 | 2006 |
|---|---|---|---|---|
| 30 Jun | 30 Jun | 31 Dec | 31 Dec | |
| Equity / Asset ratio | 25 | 23 | 24 | 17 |
| Numbers of A-shares (average thousand) | 17408 | 17408 | 17408 | 17408 |
| Reported equity per share | 2.05 | 1.88 | 2.27 | 1.81 |
| Return on average shareholders' equity | Neg | 7 | 21 | neg |
| Return on average capital employed | Neg | 12 | 27.1 | neg |
| Market price at period's end restated after issue | 4.25 | 7.30 | 5.80 | 5.00 |
| Market value (SEK m) | 74 | 127 | 101 | 87 |
| SALES PER SEGMENT (SEK m) Group | 2008 | 2007 | 2008 | 2007 |
|---|---|---|---|---|
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | |
| Home Electronics | 35.0 | 48.7 | 77.3 | 97.7 |
| Business Electronics | 5.7 | 12.2 | 15.5 | 22.2 |
| Care Electronics | 27.4 | 6.2 | 46.7 | 15.1 |
| Divested units | 0.0 | 5.4 | 0.0 | 16.2 |
| Total | 68.1 | 72.5 | 139.5 | 151.2 |
| OPERATING PROFIT/LOSS AFTER | 2008 | 2007 | 2008 | 2007 |
|---|---|---|---|---|
| DEPRECIATION PER SEGMENT (SEK M) Group | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun |
| Home Electronics | -3.2 | 1.4 | -2.3 | 3.3 |
| Business Electronics | -2.2 | 0.2 | -3.3 | 0.5 |
| Care Electronics | 1.8 | -0.7 | 3.1 | -1.7 |
| Divested units | 0.0 | 0.0 | 0.0 | 0.0 |
| Operating profit/loss after depreciation | -3.6 | 0.9 | -2.5 | 2.1 |
| INCOME STATEMENT (SEK M) Parent company | 2008 | 2007 | 2008 | 2007 |
|---|---|---|---|---|
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | |
| Net sales | 29.0 | 2.8 | 59.5 | 5.3 |
| Operating costs | -28.2 | -17.1 | -64.1 | -31.2 |
| Operating profit before depreciation | 0.8 | -13.3 | -4.6 | -25.9 |
| Depreciation acc. to plan | -1.9 | 0.1 | -3.3 | -0.2 |
| Operating profit after depreciation | -1.1 | -14.2 | -7.9 | -26.1 |
| Net financial items | -0.4 | -0.7 | -1.4 | -1.8 |
| Pretax profit | -1.5 | -14.9 | -9.3 | -27.9 |
| Taxes | 0.0 | 0.0 | 0.0 | 0.0 |
| Net profit | -1.5 | -14.9 | -9.3 | -27.9 |
| BALANCE SHEET (SEK m) Parent company | 2008 | 2007 | 2007 |
|---|---|---|---|
| 30 Jun | 30 Jun | 31 Dec | |
| Intangible assets | 24.7 | 0.0 | 18.0 |
| Tangible assets | 2.4 | 1.0 | 1.0 |
| Financial assets | 77.0 | 78.0 | 77.0 |
| Inventories | 20.3 | 0.0 | 0.0 |
| Current receivables | 21.3 | 16.0 | 12.3 |
| Cash at hand | 0.0 | 0.0 | 1.8 |
| Total assets | 145.7 | 95.0 | 110.1 |
| Shareholders' equity | 36.0 | 45.3 | 45.3 |
| Interest bearing liabilities | 27.2 | 30.7 | 46.4 |
| Non-interest bearing liabilities | 82.5 | 19.0 | 18.4 |
| Total equity and liablities | 145.7 | 95.0 | 110.1 |
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.