InTiCa Systems AG — Earnings Release 2007

May 22, 2007

News Details

Corporate | 22 May 2007 07:00

InTiCom Systems Aktiengesellschaft: Accelerated growth in profits despite capacity

InTiCom Systems Aktiengesellschaft / Quarter Results

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• Q1 sales increase of around 8 % continues positive growth trend
• Earnings increase of about 10 % resembles stronger increase than sales
despite production and personnel expansion in automotive electronics

Passau, May, 22nd 2007 – InTiCom Systems AG (ISIN DE0005874846, Prime
Standard) achieved a sales growth of around 8 % to EUR 11.0 million
(previous year EUR 10.2 million) in the first three months of the 2007
fiscal year. DSL splitters for subscribers and national telecommunication
companies remained the main sales driver with growth particularly generated
outside of Germany once again. The automotive electronics segment generated
sales revenues of approximately EUR 1.0 million underlined by a strong
growth trend.

In 2007 the xDSL business of InTiCom Systems AG, both domestic and
international, will continue to supply increasing unit numbers and sales
figures. In Germany alone, growth rates comparable to 2006 are secured in
the DSL segment. Additional market stimulation is provided by the domestic
VDSL network, which is gradually given shape. That InTiCom Systems as the
market and technology leader will participate in this business
significantly is a fact: Since the beginning of 2007, the company has
provided the system suppliers with VDSL splitters which are already being
installed on the service provider side despite the still unresolved
regulation issue from the side of the EU (as of March 2007).

Due to supply contracts with major international telecommunication
companies, InTiCom Systems will also benefit even more than before from the
development of new DSL and VDSL markets in an increasing number of
countries.

Furthermore, the company managed to break even already by the end of the
year with its new business segment automotive electronics, for which
production was started only in mid-year 2006 at the newly set up production
location Prachatice in the Czech Republic.

A lower further decreased material cost ratio in Q1 2007 – despite the
production establishment of the series production of automotive
applications in the Czech Republic – of 74.7 % compared to 79.0 % in the
same period of the previous year documents the company’s consistent focus
on profitability.

The profit from ordinary activities (EBT) increased by some 8 % to EUR 1.0
million in Q1 2007 (previous year EUR 0.9 million). This equals a remaining
stable gross return on sales of 9.0 % despite the expansion of capacities
compared to the previous year. Net income of EUR 0.6 million in the quarter
exceeded the previous year’s figure by approximately 10 % -under the
continuously constant assumption of a tax rate of around 38 %.

InTiCom Systems thus achieved earnings per share of EUR 0.14 in the first
quarter 2007 (previous year EUR 0.13).

Capital expenditures in Q1 2007 came out to EUR 0.2 million (previous year
EUR 1.5 million) and provided the basis for the establishment of serial
production for automotive electronics at the modern and highly automated
production location in the Czech Republic. Production capacity will be
probably doubled until the end of 2007 in order to serve the existing
serial orders for keyless go and tyre pressure monitor systems, immobiliser
modules and filter applications by multiple systems suppliers and
automobile manufacturers from Asia and Germany.

Liquid funds as of 31 March 2007 amounted to EUR 16.8 million (previous
year EUR 18.5 million) compared to EUR 13.8 million as of the balance sheet
date 2006. The strong rise in liquid funds was primarily the result of the
cash proceeds from ordinary business activities as well as a stringent
working capital management and an increase in net-debt with a similar
amount.

As of 31 March 2007, the order backlog of InTiCom Systems amounted to some
EUR 12.5 million (previous year EUR 12.3 million) on a constantly high
level. In light of the 2006 sales volume, coverage remains constant with a
period of around 3 months. For the first time orders from the automotive
industry are included in the order backlog for the upcoming three months.
Currently new contracts with major car manufacturers and suppliers to the
automobile industry are closed almost by the month.

The upgrade of the German DSL network or higher transmission rates (VDSL)
failed to occur in 2006 to a large extent; thereby InTiCom Systems missed
out on considerable sales potential in 2006. However, the field of VDSL
still represents an enormous potential for InTiCom Systems as the
development of the German VDSL network is only postponed, and especially
due to the large number of system providers in the other European countries
determined to expand their VDSL business activities much more. Experts
predict growth rates for VDSL technology at least as high as those DSL
technology has enjoyed.

First earnings contributions from the automotive segment in the current
financial year clarify the increasing importance of the automotive segment
as the second main pillar of InTiCom Systems. In the year 2007 the
full-year effect will come to bear in the automotive segment for the first
time – and will become the essential driving force of future development.
InTiCom Systems expects to generate sales in this field of EUR 50 to 60
million within the next 5 to 7 years.

InTiCom Systems expects for 2007 growth in sales and net profit compared to
the previous year.

InTiCom Systems AG
The Management Board

For further details of the Three-month report and the complete report
please use
www.inticom-systems.de  English  Investor Relations
 Publications

or please contact:

Dieter Schopf
Member of the Management Board

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

mailto: d.schopf@inticom-systems.de

DGAP 22.05.2007

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

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