InTiCa Systems AG

Earnings Release • Nov 10, 2008

News Details

Corporate | 10 November 2008 07:00

InTiCa Systems AG: Cost reduction program implemented successfully –

InTiCa Systems AG / Quarter Results

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• Growth and continued capacity expansion in the business of automotive
technology and industrial electronics
• Breakeven point for sales lowered by EUR 9 million due to cost reduction
programs
• 27% decline in sales to EUR 22.3 million solely accounted for by weak
telecommunication business
• Net result after nine months 2008 at EUR – 1.5 million (PY EUR 1.7
million)

Passau, November 10, 2008 – Sales of InTiCa Systems (Prime Standard, ISIN
DE0005874846) went down roughly 27% to EUR 22.3 million in the first nine
months 2008. The decline of the telecommunication business by 35% or EUR
9.5 million to EUR 17.3 million could be balanced only partially by
increasing sales in the business of automotive technology by roughly 23% to
EUR 4.6 million and the business of industrial electronics by EUR 0.2
million to EUR 0.4 million.

The communication technology segment continued to be affected in the third
quarter by the basic effect of the loss of a customer relationship with a
Northern European telecommunication company. In addition, the slowdown of
demand in the service provider business has increased. In this business
framework, competitive pressure and pricing pressure have gained
considerably as well. Measures were initiated in the third quarter to
improve price competitiveness by developing new sources of supply and
changing manufacturing processes. Thus it will be possible in the future to
win new telecommunications companies as customers as well. These measures
have a consolidating effect; however, most probably they will not fully
compensate for the declining business volume in Germany.

The automotive technology segment kept up its positive performance despite
the economic slump. Because of the expansion of the business of automotive
technology and the establishment of the industrial electronics segment,
InTiCa Systems is positioning itself on an increasingly broader and more
diversified base.

A decline in group sales by EUR 8.5 million is countered by a decline in
material expenses by EUR 8.0 million due to cost reduction measures. The
capacity expansion with regard to the segments automotive technology and
industrial electronics raised personnel expenses by roughly EUR 1.0 million
and depreciation by EUR 1.3 million. The operating result (EBIT) thus
dropped to EUR -1.1 million in the reporting period, after EUR 2.4 million
in the prior-year period.

Research and development expenses amounted to EUR 1.4 million in the first
nine months of fiscal year 2008 (PY EUR 1.6 million). This slight decline
is based on the reduction of development activity in the communication
technology segment. On the other hand, the development effort has been
intensified in the segments automotive technology and industrial
electronics.

Capital expenditures of the first nine months 2008 showed another slight
increase over the prior-year period to roughly EUR 4.4 million (PY EUR 4.2
million). The focus continued to be placed on the further expansion of the
virtually automated serial production of automotive and industrial
electronics.

Liquid assets come to EUR 11.7 million as of September 30, 2008, compared
to EUR 15.5 million as of balance sheet date 2007. This drop is essentially
a consequence of increased investments in inventories and property, plant
and equipment towards the continued expansion of the serial production in
the automotive technology segment.

At 59% as of September 30, 2008, the Group’s equity ratio remains at a high
level.

Group sales of InTiCa Systems for the fiscal year 2008 will amount to
roughly EUR 26 million.

The measures for structural adjustment and support of sales and development
resources improve the market position and the technological know-how of
InTiCa Systems.

With substantial investments in the segments automotive technology and
industrial electronics, InTiCa Systems has placed its business model on a
broader base and will be dependent on the unfavorable development of
particularly the domestic telecommunication business decreasingly in the
future. The course for medium-term and sustainable growth in both sales and
profit is thus set. Cost reduction measures already realized and initiated
improve the company’s competitiveness significantly. On this basis, a
stabilization of sales and an improvement of earnings are projected for
fiscal year 2009.

InTiCa Systems AG
The Board of Directors

Walter Brückl | CEO
PHONE +49 (0) 851 – 966 92 – 0
FAX +49 (0) 851 – 966 92 – 15
MAIL investor.relations@intica-systems.de

10.11.2008 Financial News transmitted by DGAP

Language: English
Issuer: InTiCa Systems AG
Spitalhofstraße 94
94032 Passau
Deutschland
Phone: 0851 / 96692 0
Fax: 0851 / 96692 15
E-mail: investor.relations@intica-systems.de
Internet: www.intica-systems.de
ISIN: DE0005874846
WKN: 587484
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hamburg, München, Stuttgart

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