CANCOM SE — Earnings Release 2002

May 14, 2002

News Details

Ad-hoc | 14 May 2002 08:26

Cancom IT Systeme AG english

CANCOM: growth despite the poor market environment Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– CANCOM: growth despite the poor market environment The CANCOM Group’s sales rose to Euro 66.6m in the first three months of 2002, a 38 per cent increase over the consolidated sales figure of Euro 48.4m reported for the same period last year. Despite a currently rather contracting IT market, the company managed it to win over market shares from its competitors and to increase its sales according to plan. The market shake-up has only been possible by a slight, temporary decrease in our margins. However, this negative effect was offset to a certain extent by cost-reduction measures implemented since October 2001, resulting in EBITDA of Euro 0.7m for the first quarter of 2002 compared with Euro 0.9m for the same period in 2001. Before scheduled amortization of goodwill, EBITA amounts to Euro 0.1m, compared with Euro 0.6m for the first quarter of 2001. EBITA is being used as a measure of earnings instead of EBIT from now on in order to make CANCOM’s figures more easily comparable with those of companies using US GAAP, whose earnings figures do not take into account scheduled goodwill amortization. CANCOM’s increased total market share means it will be in a strong strategic position when the economy starts to recover. This is the long-term basic factor for the company’s continued success. CANCOM therefore expects to achieve its projected total sales figure of almost Euro 300m for the entire year of 2002. EBITA is also expected to be very positive, though it is not possible to give an exact forecast at present because of the uncertain economic environment. CANCOM expects its growth to continue strong compared to the market as a whole, with a return on sales of up to 3 per cent. Taking into account CANCOM’s target return on sales for 2003 and the company’s current market capitalisation of only 11 per cent of sales for 2002, in our opinion, there is considerable potential for an increase in both our operating profit and the price of the CANCOM share. end of ad-hoc-announcement (c)DGAP 14.05.2002 ——————————————————————————– WKN: 541910 ; ISIN: DE0005419105; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 140826 Mai 02