init innovation in traffic systems SE

Earnings Release • May 12, 2004

News Details

Ad-hoc | 12 May 2004 07:54

Init AG: Quarterly sales in target range – 70% increase in orders

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Quarterly sales in target range – 70% increase in orders The first quarter of the 2004 financial year of init innovation in traffic systems AG was marked, on the one hand, by further successes in international tendering and, on the other, by a continuing reluctance of local public transport companies in Germany to invest. These contrasting developments resulted both in an increase in incoming orders by more than 70% as well as in a drop in sales as at the balance sheet date compared with the previous year. Thus, at first glance, sales at init AG in the first quarter of 2004 seemed significantly less than in the comparatively strong previous quarter (5.5 million Euro), recording a mere 3.6 million Euro. However, it should be noted that, for many years, only around 10% of total annual sales have on average been attributable to the first quarter. Thus, the sales figure for the first quarter of 2004 is well within the target range of the projected estimate of 33 mil- lion Euro for the overall year 2004. By the end of March, init had also recorded incoming orders of around 6.4 million Euro, which is more than 70% above the figure for the comparative prior- year period (2003: 3.7 million Euro). Thus, the orders on hand as at the balance sheet date had increased to 39.0 million Euro (2003: 30.6 million Euro). In sales, the strategically planned internationalization led to disproportionately rising costs. At the same time, the share of hardware supplied in the majority of the large-scale projects currently implemented turned out to be less in this phase. This resulted in the sales revenues and in the gross profit. The hardware deliveries will now be effected in the coming months. Thus, the earnings before interest and taxes (EBIT) as at the end of March stood at -2.2 million Euro (2003: -0.9 million Euro). The consolidated deficit reached -1.4 million Euro, after -0.5 million Euro in the comparative prior-year period. Therefore, the net earnings per share in the first quarter amounted to -0.14 Euro (2003: -0.05 Euro). Despite individual positive signals in the German market, the domestic business remained at a rather low level, recording sales of 0.9 million Euro (2003: 2.7 million Euro). The Managing Board therefore reacted by introducing a number of cost savings measures. These measures include the closure of our branch offices in Berlin and Essen as well as an adjustment of our workforce. Based on the high level of orders on hand and the increasing hardware deliveries for major projects in the USA and Europe over the next few months, we anticipate a positive business trend in the course of the year and are confident that we will reach our growth targets set for 2004. end of ad-hoc-announcement (c)DGAP 12.05.2004 ——————————————————————————– WKN: 575980; ISIN: DE0005759807; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 120754 Mai 04