Evotec SE — Earnings Release 2002

Nov 14, 2002

News Details

Ad-hoc | 14 November 2002 07:49

Evotec OAI AG english

Evotec OAI Q3 Results: Solid Performance in Difficult Market Environment Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Evotec OAI AG (WKN 566480) achieved revenues of EUR 47.5m in the first 9 months (+20%, 2001: EUR 39.6m), in line with our growth target of 20-30% per year. The market environment, however, has deteriorated in Q3 with customers delaying orders for reasons of their cash conservation. Although Evotec OAI has fundamentally progressed well, growth rates slowed in Q3 (+8%). This development is in line with our updated forecast of October 23, 2002. Operating loss improved by 80% to EUR (23.5)m (2001: EUR (114.9)m) as a consequence of lower regular amortisation of goodwill and other intangible assets. Excluding amortisation, it amounted to EUR (14.4)m (2001: EUR (11.9)m). The increase is primarily a result of a decline in gross margins due to a change in revenue mix in this period as well as the planned under-utilisation in development chemistry. EBITDA amounted to EUR (5.0)m (2001: EUR (4.1)m). Net loss improved by 82% to EUR (20.6)m (2001: EUR (114.8)m). In light of the increasingly difficult market environment we announced on October, 23 that we are reducing our financial targets for the year and that we start taking action in Q3 to reduce our SG&A and R&D expenses by appr. 20% in 2003. These measures will start to have an impact in Q4 and help to maintain our cash position at Q3 levels of EUR 14-15m (30.9.: EUR 14.9m). As our market capitalisation is below book value, which suggests to carefully analyse any impairment write off requirements, we decided to perform an impairment review. It has not been finalised yet, but suggests that we are likely to take an additional, non-cash write-off charge on goodwill created in the merger with OAI amounting to EUR 110-130m in Q4. It does not materially change our fundamental strength and does not have an effect on our cash position. Our order situation is healthy. As of mid November, secured 2002 revenues amounted to EUR 69m (guidance: EUR 68-72m). Following the multi-year contract with Pfizer, our 2003 order book already amounts to EUR 35m. For the purpose of our forecast given today we assume a continued weakness in spending in the industry throughout 2003. While we still believe in the longer term trend of 20- 30% revenue growth, we expect revenues to grow only by 10-15% in 2003. Contact: Anne Hennecke, phone: +49/40/56081-286, anne.hennecke@evotecoai.com end of ad-hoc-announcement (c)DGAP 14.11.2002 ——————————————————————————– WKN: 566480; ISIN: DE0005664809; Index: NEMAX-50 Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 140749 Nov 02