InTiCa Systems AG — Earnings Release 2007

Aug 22, 2007

News Details

Corporate | 22 August 2007 07:00

InTiCom Systems Aktiengesellschaft: Disproportionately high profit improvement in 2nd quarter of 2007

InTiCom Systems Aktiengesellschaft / Half Year 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.

---

• Net income for the second quarter of 2007 almost doubled over previous
year
• Earnings per share rise by 45 % to 29 cents per share in the first
half-year
• Second main pillar automotive established in record time

Passau, August 22, 2007 –InTiCom Systems AG (ISIN DE0005874846, Prime
Standard) achieved a disproportionately high profit improvement in this
year’s second quarter and almost doubled the net income for the quarter
compared to the prior-year quarter. By half-year comparison, the sales
increase by almost six percent results in a 45 percent improvement of the
earnings per share, to 29 cents; this already amounts to just under 80
percent of the entire earnings per share for the fiscal year 2006.

InTiCom Systems generated sales of EUR 10.7 million in the second quarter
of 2007 after EUR 11.0 million in this fiscal year’s first three months;
this means a sales increase by roughly 6 % to EUR 21.8 million in the first
half-year 2007 (PY EUR 20.5 million).
Main contributors to sales are still DSL splitters for the subscriber and
service provider sides, with the substantial increase being generated
abroad once again. In the segment automotive electronics, sales of
approximately EUR 3.0 million were achieved, showing a fast growing
tendency.

The cost of materials ratio in the second quarter of 2007, at 77.7 % (PY
81.4 %) significantly lower than in the prior-year period of comparison
despite the continuing expansion of the serial production of automotive
electronics in Czechia, gives proof of the Company’s consistent profit
orientation and leads to a decreasing cost of materials ratio of 76.2 % on
6-month basis, compared to 80.2 % in the previous year’s period.

The disproportionately high improvement of the earnings before taxes (EBT)
by roughly 53 % to EUR 0.8 million in the second quarter of 2007 (PY EUR
0.5 million) results from a gross margin which still came to more than 7 %
despite the ongoing capacity expansion compared to the previous year’s
period. The net income for the quarter of EUR 0.6 million (PY EUR 0.3
million) exceeds the prior-year amount by roughly 100 %, benefiting from a
lower effective tax rate. InTiCom Systems thus doubles its earnings per
share in the second quarter of 2007 to EUR 0.15 (PY EUR 0.07).

The 6-month earnings before taxes (EBT) rise by about 24 % to EUR 1.8
million (PY EUR 1.4 million). Due to the lower effective tax rate of about
30 %, the resulting net income for the first half-year of EUR 1.2 million
is up by almost 42 % (PY EUR 0.9 million). In the first half-year 2007,
InTiCom Systems thus achieves earnings per share of EUR 0.29 (PY EUR 0.20);
this already amounts to almost 80 % of the earnings per share of EUR 0.37
achieved for the total fiscal year 2006.

The capital expenditures of just under EUR 2.1 million in the first
half-year 2007 (PY EUR 4.1 million) supported the further setup of the
virtually fully automatic serial production for automotive electronics and
the new VDSL technology at the up-to-date production location in the Czech
Republic, as well as doubling the existing production capacity in order to
complete the contractually secured volume orders received from several
system suppliers in Asia, the U.S. and Europe for keyless go and tire
pressure monitoring systems, anti-theft systems, and filter applications
with delivery reliability.

The Group’s liquidity came to EUR 15.5 million as of June 30, 2007 (PY EUR
16.0 million), as opposed to EUR 13.8 million as of balance sheet date
2006. The increase in liquid funds principally is a result of the cash
inflow from the operating activities, a stringent working capital
management, and net borrowing of a comparable dimension (approx. EUR 2.0
million), to be used for financing the Company’s future growth.

As of June 30, 2007, the order backlog of InTiCom Systems amounted to
roughly EUR 13.8 million (PY EUR 12.6 million), keeping up the high level.
Considering the net income for the fiscal year 2006, the resulting backlog
range remains constant at roughly four months. Orders from the automobile
industry for the next four months are included here.

The upgrade of the German DSL network towards higher transmission rates
(VDSL) did not happen in 2006 for the most part; InTiCom Systems therefore
missed out on considerable sales potential in 2006. However, InTiCom
Systems will benefit from the development of new DSL and VDSL markets in
more and more countries even after 2007 in the shape of significant sales
and profit improvements.

First profit contributions from the automotive segment in the current
fiscal year signify the still rising importance of the automotive sector as
the second main pillar of InTiCom Systems. Doubling the production space
and the corresponding capacity because of the steadily increasing use to
capacity of the newly erected production location Prachatice (Czech
Republic) will allow once again, responding to the demand for components of
flawless quality and absolute delivery reliability. In the year 2007, the
full-year effect of the automotive segment will come to bear for the first
time – and it will become the essential driving force behind the future
development. In this segment, InTiCom Systems expects to generate sales of
between EUR 50 and 60 million in the next 5 to 7 years.

InTiCom Systems AG
The Board of Directors

From August 22, 2007, further details of the 6-month consolidated financial
statements 2007 and the complete interim report on the first half-year 2007
can also be found at:

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

If you have questions, please contact:

Maria Grohs
Board of Directors

Phone: +49 - (0)851 - 966 92 - 0
Fax: +49 - (0)851 - 966 92 – 15
E-mail: m.grohs@inticom-systems.de

Günther Kneidinger ppa.
Manager Automotive

Telefon: +49 - (0)851 - 966 92 - 173
Fax: +49 - (0)851 - 966 92 – 16
E-Mail: g.kneidinger@inticom-systems.de
22.08.2007 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
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hamburg, München, Stuttgart

End of News DGAP News-Service

---