InTiCa Systems AG — Earnings Release 2006

Nov 30, 2006

News Details

Corporate | 30 November 2006 07:00

InTiCom Systems Aktiengesellschaft: Sales growth after nine months 2006 despite delays in VDSL network roll-out in Germany

Corporate News transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Sales growth after first nine months 2006 despite delays in VDSL network roll-out in Germany • Sales growth after nine months 2006 of almost 17 % compared to previous year • Earnings increase in third quarter compared to second quarter 2006 • Further investments to increase capacity of the successful automotive serial production Passau, 30 November 2006 – InTiCom Systems AG (ISIN DE0005874846, Prime Standard) recorded sales of around EUR 8.1 million (previous year EUR 9.3 million) in the third quarter of 2006. Cumulative sales for the first nine months of 2006 grew by almost 17% to around EUR 28.7 million (previous year EUR 24.5 million). Substantial delays in expanding the VDSL network in Germany – dominated by the discussion between the EU and the German government on the issue of whether and if so, how the new high-speed telecommunications technology should be regulated – have put a stop to investment in this new technology. Great expectations of a rapid roll-out of the VDSL network in Germany were not fulfilled in 2006. In the last two quarters, InTiCom Systems has therefore lost considerable budgeted sales in Germany, despite existing supply agreements. In contrast, the successful start of serial production for automotive electronics at the new manufacturing site in Prachatice in the Czech Republic went according to plan. A continuously rising number of successful customer certifications from highly satisfied automobile manu-facturers and suppliers are the result of the carefully planned serial production start of our RFID products with modern machines and innovative process engineering in mid May 2006. Higher material and staff costs to ensure a smooth start to serial production in the automotive electronics business at the new production site in Prachatice (Czech Republic) depressed operating profits (EBIT). The figure of EUR 0.6 million for the third quarter 2006, which is below comparable quarterly earnings for last year of EUR 1.0 million, was largely responsible for the drop in cumulative nine-monthly earnings to EUR 2.0 million (previous year EUR 2.6 million). All earnings figures for the third quarter 2006 were above the comparable figures for the previous quarter of this year (Q2) and are once again trending upwards. Earnings per share in the third quarter 2006 were 9 euro cents compared to 7 euro cents in the second quarter of the year. Still assuming a tax rate of around 38%, this results in net income for the period after nine months of EUR 1.2 million (previous year EUR 1.6 million). At the close of the third quarter 2006, this means that InTiCom Systems has cumulative earnings per share of EUR 0.29 (previous year EUR 0.38). Capital expenditure amounted to around EUR 5.8 million in the first nine months of 2006 (previous year EUR 3.4 million) and served further to establish serial production for automotive electronics at the modern and highly automated production site in the Czech Republic. Cash and cash equivalents amounted to EUR 15.2 million as of 30 September 2006 (previous year EUR 9.6 million) compared to EUR 10.7 million as of the reporting date 2005. The high cash inflow in the first quarter from the capital increase, amounting to EUR 9.4 million, and stringent working capital management ensured a high cash balance despite increased capital expenditure. As of 30 September 2006, InTiCom Systems had outstanding orders of around EUR 12.6 million (previous year EUR 9.3 million), well above the figure for the previous year. Given the volume of expected sales for 2006, this is equivalent to a slight increase in order coverage to around four months. Increased demand in the telecommunications sector is visible in the fourth quarter, which will in all likelihood lead to a clear increase in sales in the coming months. We do not anticipate being able to make good all the foregone sales this year, however. InTiCom Systems continues to expect moderate sales growth for 2006 compared to the previous year and earnings somewhat below the figure for last year. Full order books and a positive full year effect from the automotive sector will only take effect from 2007. InTiCom Systems AG The Management Board For further details of the nine-month accounts 2006 and the complete interim report for the nine month period please use: www.inticom-systems.de  English  Investor Relations  Publications  2006 quarterly reports or please contact directly: Dieter Schopf Board Member Phone: +49 – (0)851 – 966 92 – 0 Fax: +49 – (0)851 – 966 92 – 15 mailto: d.schopf@inticom-systems.de (c)DGAP 30.11.2006 ————————————————————————— Language: English Issuer: InTiCom Systems Aktiengesellschaft Spitalhofstraße 94 94032 Passau Deutschland Phone: +49 (0)851 9 66 92-0 Fax: +49 (0)851 9 66 92-15 E-mail: info@InTiCom-Systems.de WWW: www.InTiCom-Systems.de ISIN: DE0005874846 WKN: 587484 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hamburg, München, Stuttgart End of News DGAP News-Service —————————————————————————