CANCOM SE — Earnings Release 2003

Nov 7, 2003

News Details

Ad-hoc | 7 November 2003 18:33

Cancom IT Systeme AG english

CANCOM announces its results for the first nine months of 2003 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Turnaround is anticipated in the fourth quarter of the year, profitable operations in September and October Scheppach, 11/7/03: CANCOM IT Systeme AG realised Group sales of Euro 133.1 mill in the first 9 months of 03 after adjustment for discontinued operations. Group sales during the same period of 02 amounted to Euro 179.4 mill after adjustment. Accordingly, sales in the third quarter of 03 totalled Euro 44.5 mill following Euro 46.6 mill in Q1 and Euro 42.0 mill in Q 2/03. EBITDA declined from Euro 2.2 mill in the first 9 months of 02 to Euro -1.0 mill in the first nine months of 03. At the same time, CANCOM was able to improve its cash and cash equivalents position from Euro 4.3 mill at 30 June 03 to Euro 7.4 million at 30 September 03. As already reported, the company disposed of its unprofitable shareholding in eBizcuss in order to bring about a sustained improvement in profits. It will be eliminated from the accounts as discontinued operations in accordance with US GAAP. The CANCOM Group’s sales and result for the current financial year and for 02 will be accordingly adjusted to take these discontinued operations into account. The company radically reduced the goodwill from Euro 28.9 mill at 31 December 02 to the unscheduled figure of Euro 11.7 mill Amortisation of goodwill has no impact on the Group’s operating result or its liquidity position. The company took this drastic step, which will lead to the permanent restructuring of the Group balance sheet, as a result of the depressed state of the German IT market that has lasted for several years now. As a result of the non-recurrent special effect of the unscheduled goodwill amortisation, EBIT in the first nine months of 03 amounted to minus Euro 18.8 mill. Already in September and in October positive monthly operating result were recorded. Against this background and thanks to the first visible success of our Profit Improvement Programme, CANCOM anticipates a turnaround in the operating result in the current fourth quarter of the year. CANCOM expects that the positive development will continue in 04 and that the profit situation will further improve. end of ad-hoc-announcement (c)DGAP 07.11.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: The decline in sales compared with the previous year is due to the discontinuance of business divisions, an extremely successful Microsoft campaign in the middle of last year and temporary delays in the delivery of the new Apple PowerMac G5 in Q3/03. The accumulated backlog could only be partially reduced in the third quarter. Apple is now able to deliver higher unit volumes. Despite the aforementioned delivery problems, another positive monthly operating result was recorded in September. ——————————————————————————– WKN: 541910 ; ISIN: DE0005419105; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 071833 Nov 03