CANCOM SE — Earnings Release 2002

Aug 14, 2002

News Details

Ad-hoc | 14 August 2002 08:05

Cancom IT Systeme AG english

CANCOM: 30.8 per cent growth in sales – outlook improved Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– CANCOM: 30.8 per cent growth in sales – outlook improved The CANCOM Group’s consolidated sales rose to Euro 131.4 million in the first six months of 2002 – a 30.8 per cent increase on the same period last year, when sales were Euro 100.4 million. In the currently contracting IT market, the sales growth and the accompanying expansion of CANCOM’s market share at the expense of competitors were in line with expectations. The decrease in margins has stabilised and there has even been a slight improvement since the first quarter. The company achieved EBITDA earnings of Euro 1.4 million in the first half of 2002, compared with Euro 1.9 million in the first half of 2001. EBITA – earnings before interest, tax and scheduled goodwill amortisation – amounts to Euro 0.2 million. This compares with Euro 1,3 million in the first half of 2001. EBITA is being used instead of EBIT as a measure of earnings in the interests of better comparability with companies that have adopted US GAAP, under which figures for earnings do not take into account scheduled goodwill amortisation. The steady growth in CANCOM’s market share has left the company strategically well placed as market and cost leader for business in the second half of the year and in 2003, and is thus the long-term basis for the company’s continued success. Because of the very good inflow of new orders in June, the company made sales of Euro 30 million in July, according to initial calculations. In addition, a major product innovation for professional desktop publishing is expected from Apple in September. CANCOM therefore expects an improvement on the sales and profits made in the first two quarters of 2002 by the fourth quarter at the latest, partly to be brought about by seasonal factors. And the company is still forecasting total sales of just under Euro 300 million for the year as a whole, with a significant increase expected in EBITA earnings. For 2003, CANCOM expects growth to continue strong compared with the rest of the market, with the return on sales rising to as much as 3 per cent. Despite the improved outlook, the company currently has a market capitalisation of only Euro 19 million, so that it is valued at less than 7 per cent of its sales for 2002. In our opinion this leaves considerable potential for a medium-term increase in both the operating result and the price of the CANCOM share. end of ad-hoc-announcement (c)DGAP 14.08.2002 ——————————————————————————– WKN: 541910 ; ISIN: DE0005419105; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 140805 Aug 02