Carl Zeiss Meditec AG

Earnings Release • Dec 14, 2001

News Details

Ad-hoc | 14 December 2001 06:30

Asclepion-Meditec AG english

Asclepion-Meditec AG: Sales bounce back in fourth quarter of FY 00/01 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– – Sales in FY 00/01 at same level as last year – Extraordinary effects hold down results – Significant sales growth and return to profitability expected for the current FY – Merger with ophthalmic activities of Carl Zeiss creates leading global provider of ophthalmic equipment Asclepion-Meditec AG (Sec. ID 531370) achieved sales revenues of EUR 41.0m (previous year: EUR 41.9m) in the FY 00/01. After good sales in the first two quarters (EUR 11.7m and EUR 11.8m respectively), the company had to contend with a severe slump in sales to EUR 6.4m in the third quarter before recovering significantly in the fourth quarter to EUR 10.9m. Orders on hand as at 30 September 2001 exceeded the previous year’s level by more than 50%. The gross margin remained virtually unchanged at a healthy level of 51.2% (previous year: 51.5%). Due to the slump in sales in the third quarter it was not possible to cover the cost base which was oriented towards fast corporate growth. This resulted in a negative EBIT for the FY 00/01 of EUR -5.0m (previous year: EUR 4.7m). Measures to reduce costs were introduced in the third quarter of the FY 00/01. These took effect in the fourth quarter and are intended to take the company back into profit within the current financial year. The financial results of Asclepion include extraordinary effects to the value of EUR 5.9m. These have no effect on liquidity. At this point special mention should be made of value adjustments on two investments in North America that were intended as a distribution base for Asclepion products. These did not, however, yield the expected sales increase. Allowing for these extraordinary effects, earnings before tax amounted to EUR -10.2m (previous year: EUR 5.4m) The net result amounted to EUR -7.4m (previous year: EUR 2.0m). The equity ratio is 74.3%. Asclepion has liquid and near-liquidity funds of EUR 42.9m. As a result of the planned merger with the ophthalmic activities of Carl Zeiss, the company – trading under the name Carl Zeiss Meditec – will move into a new sales dimension in 2002. With sales totalling roughly EUR 260m (base: FY 00/01) the merger will make the company the global leader in ophthalmic systems. The activities of Asclepion and Carl Zeiss complement each other perfectly. Thanks to its technology position and its innovative product pipeline Asclepion regards itself well placed for the merger. end of ad-hoc-announcement (c)DGAP 14.12.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Asclepion-Meditec AG in figures (in euro ‘000) 2001/2002 FY 1999/2000 FY Net sales 40,946 41,902 Gross result 20,946 21,579 Gross margin (%) 51.2 51.5 EBIT -4,916 4,737 Result before income tax (EBT) -10,204 5,358 Net result -7,386 1,957 Result per share (in euro) -1.19 0.38 Balance sheet total (30 September) 82,690 82,122 Staff (30 September) 238 216 Sales by business units In 00/01 – as in the preceding years – the business unit with the strongest performance was Vision. A significant factor for the decline in sales to EUR 24.1m (previous year: EUR 26.2m) was the cancellation or postponement of transactions planned with the key account Icon which ran into economic difficulties. Sales revenues of the Aesthetic business unit increased slightly to EUR 11.0m (previous year: EUR 10.8m). However, expansion in this area was slower than expected due to delays in approval processes, for example in key markets such as China and Korea, and problems associated with the sales partner U.S. Medical. The Dental business unit benefited from the launch of the first laser with an automatic diagnostic system for caries identification and treatment. Total sales revenue in the 00/01 financial year was EUR 0.8m, up from EUR 0.3m the previous year. Sales revenues of the Service business unit showed an increase of 9% to EUR 5.1m (previous year: EUR 4.7m) and confirm Asclepion’s close ties with customers. Outlook: Asclepion entering into merger with full pipeline of products On a stand-alone basis Asclepion assumes that sales will see significant growth in the 2001/2002 financial year. With adjustments in cost structures, entry into new regional markets and the introduction of several new products, the company expects to return to profit. The market launch of groundbreaking PAD technology, which permits virtually pain-free and substance-retaining caries treatment, is intended to contribute to growth in the future. The planned merger will position the new company – trading under the name Carl Zeiss Meditec – as the worldwide market leader of ophthalmic equipment. In the growth market of laser treatment of vision defects – refractive surgery – Asclepion is the largest European system supplier. In ophthalmology, Carl Zeiss is the leading brand for diagnostic systems in the world. The new company Carl Zeiss Meditec will thus be able to offer a complete range of products from diagnosis through to operation and follow up treatment. The merger will open up extensive market synergies, thus enabling faster company growth. For example, the strong US presence of Carl Zeiss gives Asclepion products access to the world’s most important market for ophthalmic products. Carl Zeiss will hold the majority stake in Carl Zeiss Meditec. The precise valuation ratio will be determined at the beginning of 2002 following a comprehensive due diligence. Contact: Jens Brajer Investor Relations/Public Relations Phone: +49/3641/220-105 Fax: +49/3641/220-102 E-mail: investors@asclepion.com ——————————————————————————– WKN: 531 370; ISIN: DE0005313704; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München, Stuttgart 140630 Dez 01