Evotec SE — Earnings Release 2002

Mar 25, 2003

News Details

Ad-hoc | 25 March 2003 08:00

Evotec OAI AG english

Evotec OAI AG FY 2002: Sustained Growth in Challenging Markets Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Evotec OAI AG FY 2002: Sustained Growth in Challenging Markets Evotec OAI (WKN 566480) made significant progress in 2002, despite a challenging year for the biotechnology and pharmaceutical industries. Total revenues increased by 11% to EUR 70.0 m (2001: EUR 63.2 m) with the company’s core service lines, discovery biology and chemistry, growing significantly faster. With a substantial amount of revenues generated in British pound, its weakness against the Euro affected performance, reducing reported revenues by EUR 1.6 m compared with 2001 exchange rates. The operating loss was EUR 135.5 m (2001: EUR 152.5 m), an improvement of 11%, largely due to the discontinuation of goodwill amortisation offset by lower impairment of goodwill. Operating losses before amortisation or impairment of goodwill and other intangible assets amounted to EUR 14.1 m (2001: EUR 12.3 m). This increase was primarily due to a different sales mix, resulting in lower gross margins of 45% (2001:47%), and planned idle capacity costs at our new pilot plant. EBITDA totalled EUR -2.2 m, only slightly below last year’s level (2001: EUR – 1.0) and significantly better than our October 2002 guidance (EUR -3 to -6 m). At 31 December 2002, our cash and cash equivalents totalled EUR 21.3 m, up from EUR 14.9 m at the end of Q3 2002. With this healthy liquidity position, combined with cost cutting measures initiated in the second half of 2002, we remain confident that Evotec OAI can sustain continued strong growth of its services business. We expect to achieve growth of 10-15% in 2003, assuming that the outsourcing market remains weak. However, we continue to believe that we can reach mid- to long-term growth of 20%-30% p.a., once the markets recover. As of February 2003, the order book for 2003 amounted to EUR 57m, covering 73% of current analyst revenue expectations for 2003 (analyst consensus: EUR 78m). This compares favourably to contracted 2002 revenues of EUR 37 m at the same time in 2002. With our strong order position and stringent cost management, the Company is on track to reach its target of positive EBITDA in 2003. Contact: Anne Hennecke, Evotec OAI AG, Investor Relations, phone: +49/40/56081- 286, e-mail: anne.hennecke@evotecoai.com end of ad-hoc-announcement (c)DGAP 25.03.2003 ——————————————————————————– WKN: 566480; ISIN: DE0005664809; Index: TecDAX, NEMAX 50 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 250800 Mär 03