InTiCa Systems AG — Earnings Release 2007

Nov 14, 2007

News Details

Corporate | 14 November 2007 07:00

InTiCom Systems Aktiengesellschaft: Continuing growth in sales and profit in Q3 2007

InTiCom Systems Aktiengesellschaft / Quarter Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

---

• Sales increased by 11 % to EUR 9.0 Mio. In the third quarter 2007
• InTiCom Systems increase in earnings by 33 percent to 39 cents per share
exceeds already the earnings of the total year 2006 of 37 cents per share
• Second main business unit automotive evolved from newcomer in this sector
into technology leader and internationally significant market player

Passau, November 14, 2007 – InTiCom Systems AG (ISIN DE0005874846, Prime
Standard) achieved a sales increase in the third quarter by 11.1 % over the
prior-year period, to EUR 9.0 million. With an increase of the net income,
at EUR 0.5 million, by roughly 30 % over the prior-year quarter, the growth
in profit was disproportionately high compared to the growth in sales. The
tax advantages of the production location Prachatice (CZ) made a
substantial contribution to this development. Earnings per share by 33
percent to 39 cents in the first nine months exceeds already the earnings
of the total year 2006 of 37 cents per share.

In the first nine months of the financial year 2007, InTiCom Systems
generated sales of roughly EUR 30.8 million, a plus of 7.4 % over the
prior-year period (PY EUR 28.7 million). This growth was carried especially
by the starting manufacture in the automotive segment at the location
Prachatice (CZ) and the parallel trend of a rising demand for VDSL
splitters for telecommunication.

In spite of the expanded serial production for automotive electronics in
Czechia, the cost of materials ratio was reduced to 77.3 % for the first
nine months 2007 (PY 79.5 %). However, the ratio of the third quarter of
2007 of 80.0 % was above the previous quarters’ levels, owing to the
relocation of manufacture from Greece to Czechia and the continued
expansion of serial production in the automotive sector. Owing to the
expansion of serial production and the extension of the value added chain,
the personnel expenses ratio climbed to 12.7 % in the nine-month period (PY
10.7 %).

Earnings before interest and taxes (EBIT) were raised by roughly 12.6 % in
the current year’s third quarter, coming to EUR 0.7 million (PY EUR 0.6
million). Because of this financial year’s increased sales, the growth in
accumulated nine-month earnings by 20.3 % to roughly EUR 2.4 million was
disproportionately high. The EBT (earnings before taxes) also gained just
over 20 % in the first nine months 2007 to reach EUR 2.4 million (PY EUR
2.0 million). More modest was the increase for the third quarter of roughly
9 % to EUR 0.6 million.

The net income for the quarter amounts to EUR 0.5 million, a plus on the
prior year quarter of about EUR 0.1 million in absolute figures, equalling
a 30.9 % gain. Because of the lower effective tax rate of approximately 30
%, the net income for the nine-month period is up 33.4%
and comes to EUR 1.7 million (PY EUR 1.2 million). Net margin of the third
quarter of 2007 of 5.4 % was 0.8 percentage points above the previous
year’s level of comparison. Also in the nine-month comparison net margin
increases to 5.4 % (PY 4.4 %). Three quarters into the year 2007, InTiCom
Systems has thus generated earnings per share of EUR 0.39 (PY EUR 0.29).

Capital expenditures came to roughly EUR 4.2 million in the first nine
months of 2007, EUR 1.6 million below the previous year’s level (PY EUR 5.8
million), which was characterized especially by the start-up of production
in Czechia. This year’s expenditures have been made for the continued
expansion of the highly automated serial production for automotive
electronics and the new VDSL technology in Prachatice, Czechia. By
expanding capacity (new factory building in Prachatice and relocation of
some manufacturing lines from Thessaloniki, Greece, to Prachatice) to more
than twice its former level, the contractually secured serial orders for
keyless entry systems, tire pressure control systems, anti-theft devices
and filter applications placed by several system suppliers from Asia, the
U.S. and Europe can be satisfied on time.

Liquid funds sum up to EUR 15.3 million as of September 30, 2007 (PY EUR
15.2 million), as compared to EUR 13.8 million as of balance-sheet date
2006. The continued high level of liquid funds is a result of the stringent
working capital management.

As of September 30, 2007, the order backlog of InTiCom Systems amounted to
roughly EUR 14.2 million, surpassing the previous year’s level considerably
(PY EUR 12.6 million). Based on the estimated annual sales, the Group’s
backlog range comes to roughly four months.

Because the upgrade of the German DSL network towards higher transmission
rates did not happen in the last year for the most part, InTiCom Systems
has missed out on sales potential. However, the VDSL business still
provides enormous potential for InTiCom Systems, owing to the fact that the
network upgrade has only suffered a delay, and because system suppliers
especially in other European countries are intent on increasing their VDSL
activities to a larger extent. InTiCom Systems will therefore achieve
sizable sales and profit improvements beyond 2007 by the development of new
DSL and VDSL markets in more and more countries.

Rising sales contributions from the automotive segment in the current
financial year signify the still growing importance of the automotive
sector as the second main pillar of InTiCom Systems. This segment will
become the essential driving force behind the future development. InTiCom
Systems expects to generate sales in this segment of between EUR 50 and 60
million in the next five to seven years.

For the long term the Group anticipates a sales split of 50 percent for
automotive, 40 percent for xDSL, and about 10 percent for industrial
electronics. For 2007 InTiCom Systems expects a growth in sales and profit
over the past financial year’s rate.

From November 14, 2007, further details of the 9-month consolidated
financial statements 2007 and the complete interim report on the first nine
month 2007 can also be found at:

www.inticom-systems.de  Investor Relations  Publications
 2007 quarterly reports

InTiCom Systems AG
The Board of Directors

Christian Schubert
Board of Directors

Phone: +49 - (0)851 - 966 92 - 0
Fax: +49 - (0)851 - 966 92 - 15

E-mail: c.schubert@inticom-systems.de

14.11.2007 Financial News transmitted by DGAP

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
Internet: www.InTiCom-Systems.de
ISIN: DE0005874846
WKN: 587484
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hamburg, München, Stuttgart

End of News DGAP News-Service

---