CANCOM SE — Earnings Release 2004

Nov 11, 2004

News Details

Ad-hoc | 11 November 2004 09:52

CANCOM IT Systeme AG continues on course for growth

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– CANCOM IT Systeme AG continues on course for growth -Sales of EUR 50.3 million in the third quarter of 2004 compared with EUR 44.5 million in the third quarter of 2003 (+ 13 percent) -EUR 0.2 million EBIT in the third quarter of 2004 following EUR -17.1 million in the reference period of 2003 -Equity ratio increases to 44.3 percent -Positive outlook for the fourth quarter 2004 and the whole of 2005 Jettingen-Scheppach, Germany, 11 November 2004 – The final figures for the third quarter of 2004 show that the CANCOM Group has realised further growth. Sales and operating income by far surpassed the figures for the previous year both in the third quarter and in the first nine months of 2004. Group sales of EUR 150.3 million were achieved in the first nine months of 2004. In the reference period of 2003, Group sales totalled EUR 133.1 million. This constitutes organic growth of 13 percent. Group sales increased on an organic basis by 13 percent to EUR 50.3 million in the third quarter of 2004 compared with the third quarter of 2003. Group earnings before interest, taxes, depreciation and amortisation (EBITDA) improved considerably in the first nine months of 2004 compared with the same period last year, i.e. from EUR -1.0 million to EUR 1.9 million. In the third quarter of 2004, Group EBITDA was EUR 0.5 million following EUR -0.3 million in the 2003 reference period. Although negative Group EBIT of EUR -18.8 million was reported in respect of the first nine months of 2003, partly due to special write-offs, positive Group EBIT of EUR 0.7 million was realised in the first nine months of 2004. Group EBIT of EUR 0.2 million for the third quarter of 2004 is the fourth positive quarterly Group EBIT result in succession following negative Group EBIT of EUR -17.1 million in the third quarter of 2003. After adjustment for the aforementioned special write-offs, Group EBIT for the first nine months of 2003 amounted to EUR -2.7 million, and EUR -0.9 million in the third quarter of 2003. This shows that Group EBIT has improved substantially compared with the previous year’s figure, even after adjustment for this special effect. The equity ratio of the CANCOM Group also improved strongly from 36.5 percent at 31 December 2003 to 44.3 percent at 30 September 2004. These business figures confirm the consolidation course set by the CANCOM Group last year. Since the fourth quarter is generally the quarter when the highest sales are recorded, positive net income is anticipated for the year as a whole. It has already been established that the merger of the two major subsidiaries of CANCOM Deutschland GmbH will bring about annual cost savings of around EUR 1 million per year from 2005 onwards. Furthermore, the expectation that growth in Group sales can be driven up again next year leads to the assumption that operating income will improve significantly again in 2005. The nine months’ report for 2004 will be published on our website at http://www.cancom.de during the course of today. If you have any queries, please contact: CANCOM IT Systeme Aktiengesellschaft Armin Blohmann Investor & Public Relations Messerschmittstrasse 20 D-89343 Jettingen-Scheppach, Germany Phone: +49 (0)8225 996 1051 Fax: +49 (0)8225 996 4 1051 E-mail to: armin.blohmann@cancom.de end of ad-hoc-announcement (c)DGAP 11.11.2004 ——————————————————————————– WKN: 541910 ; ISIN: DE0005419105; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 110952 Nov 04