Basler AG

Earnings Release • Aug 15, 2001

News Details

Ad-hoc | 15 August 2001 20:45

Basler AG english

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Basler AG improves earnings in the second quarter At 7.96 million EUR, gross sales exceed the previous quarter’s figure – losses, at xxx1.15 million EUR, more than halved compared with the previous quarter Cost reduction measures successful – Gross margin still at a high level (54%) Ahrensburg, 15 August 2001 – In the second quarter, Basler AG more than halved its losses (-1.28 million EUR compared with -2.55 million EUR in Q1/2001), demonstrating that the stringent cost reduction program is having the desired effect, in spite of the continuing weakness in the market for capital goods for the manufacture of optical storage media. Sales at Basler AG are also showing a positive trend, rising to 7.97 million EUR during the same period. The incoming orders in Q2 increased slightly against the Q1 with an total of 7.7 million EUR. The growth of the newer business divisions was sustained throughout the second quarter. The division of Display Inspection (inspection systems for flat screens), in particular, was awarded contracts of major strategic significance. Overall developments in 2001 are in line with the forecasts already published. As expected, sales in 2001 will not match the level of the previous year, and losses will continue. Nevertheless, the first successful effects of the strategy of diversification coupled with the emerging market recovery in the next year form a good basis from which to significantly increase sales and to return to profitability in the year 2002. The key figures in summary: in EUR million Q2-2001 / Q1-2001 / 01-06 2001 / Q2-2000 / 01-06 2000 Sales 7,96 / 6,98 / 14,94 / 12,76 / 22,28 EBIT -1,15 / – 2,45 / -3,60 / 0,60 / 0,93 Profit/Loss -1,28 / -2,55 / -3,83 / 0,56 / 0,65 Earnings per share (in EUR) -0,36 / – 0,73 / -1,09 / 0,16 / 0,19 Incoming orders 7,7 / 7,3 / 15 / 10,58 / 24,39 Employees at reporting date 293 / 297 / 293 / 308 / 308 end of ad hoc announcement (c) DGAP 15.08.2001 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Basler AG improves earnings in the second quarter Ahrensburg, 15 August 2001 – In the second quarter 2001, Basler AG has significantly reduced its costs and generated 12% higher sales of 7.96 million EUR compared with the previous quarter (6.98 million EUR). Overall sales for the first half-year 2001 are reported at 14.94 million EUR. A comparison with the previous yearxxxs figure of 22.28 million EUR underlines the implications of the weakness of the market for inspection systems for CDs/DVDs, which has been ongoing since the middle of last year, and which affects Basler’s largest business division, Optical Media Inspection. A recovery of this market segment can be expected by next year. Positive impulses from the newer business divisions In addition to the scheduled development of the division Sealing Inspection (inspection systems for sealing rings), positive trends are also being signalled by new business divisions: Display Inspection (inspection of flat screens) was awarded a major contract worth over one million Euros in Q2, whereas Web Inspection (inspection of synthetic films) was able to report an increase in incoming orders for the first time. Overall the newer growth areas of Web and Display Inspection together with Vision Components (high-performance camera business) account thus for nearly 50% of sales nowadays – and are still on the increase. Margins remain attractive – improved cost management So far, Basler has not been affected by the decline in prices for high technology products, which has been the subject of various reports. The company continues to generate high gross margins of approx. 54% across the entire board of its business divisions. As Dr. Dietmar Ley, Chief Executive Officer of Basler AG explains: xxxOur customers invest in high-performance technologies because of the fast return-on-investment. As an innovator in the field of artificial vision, we can thus generate attractive contribution margins with our leading products, even in more difficult market conditions.xxx Moreover, the program implemented this year to reduce costs is already having a considerable impact. At 6.09 million EUR, operating expenditure in the second quarter is 10% below the figure for the previous quarter (6.62 million EUR). Compared with the same quarter last year (7.72 million EUR) savings have even nearly reached 30%. Overall, EBIT increased from -2.45 million EUR to -1.15 million EUR compared with the previous quarter, whilst losses declined from – 2.55 million EUR (- 0.73 EUR per share) to – 1.28 million EUR (- 0.36 EUR per share), equivalent to EBIT for the first half-year of -3.60 million EUR and to a loss for the first half-year of -3.83 million EUR (-1.09 EUR per share). Prerequisites set for the turnaround The financial basis to ensure a successful turnaround has been secured. At 65%, the equity ratio is still high and secures the continued financing of the company until it regains profitability in 2002. Short-term payables increased only slightly from 9.56 million EUR (as at 31.03.2001) to 10.87 million EUR (as at 30.06.2001) in line with the improved operating result. Apart from which, current assets amount to 20.28 million EUR, whilst financial assets (investment in Photobit Corp.) are valued at 14.89 million EUR. Stable order situation despite continuing weakness in the core market The order situation is still affected by the economic weakness, but is nevertheless slightly better than at the end of the first quarter. Order books of nearly 8 million EUR represent a major proportion of the sales budgeted for 2001. Incoming orders in Q2 amounted to 7.7 million EUR as at the reporting date of 20.06.2001, equivalent to an increase of 6% compared with Q1 (7.3 million EUR). As such, Basler reported total incoming orders for the first half-year of approximately 15 million EUR. Profitable growth in the offing In the second half-year, Basler AG will continue to pursue its strategy of consolidation, whilst at the same time looking confidently ahead to the year 2002. As Ley states: “We at Basler are on the right track. The stringent cost reduction program, which is running on schedule, and increasing productivity within the organization will give us a good basis for profitable growth in the coming year”. Major positive impulses from the market will be a while in coming in the second half of 2001: Although first signs of recovery are visible both in the market for single recording storage media (CD-R) and for DVDs, a recovery across the board for optical media production equipment is not to expected before the coming year”, emphasizes Ley. On the other hand, positive forecasts are already possible for the newer business divisions of Vision Components, Display Inspection and Web Inspection. These will continue to grow in importance throughout the course of the year. According to Ley: “We started reducing our dependence on individual markets in good time by implementing our strategy of diversification. It is becoming increasingly clear that this strategy is correct; first effects are already visible, and the strategy will pay off in the medium term.” Further information: Christian Höck – Investor Relations, Tel. 04102 – 463 175, christian.hoeck@baslerweb.com, Basler AG, An der Strusbek 60-62, 22926 Ahrensburg ——————————————————————————– WKN: 510 200; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, München und Stuttgart 152045 Aug 01