InTiCa Systems AG

Earnings Release • May 20, 2008

News Details

Corporate | 20 May 2008 10:05

InTiCom Systems Aktiengesellschaft: InTiCom Systems AG invests in future projects with strong growth and registers therefore a loss for the first quarter of 2008

InTiCom Systems Aktiengesellschaft / Quarter Results

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• Revenues decline by 13 percent to 9.6 million EUR compared to 11.0
million EUR in the same period of the previous year as a result of sales
consolidation
• Accelerated expansion of the Automotive segment leads to an increase in
personnel expenses and higher depreciation
• Net income for the first quarter 2008 amounts to a loss of 0.4 million
EUR (prior year: 0.6 million EUR)

Passau, May 20, 2008 – InTiCom Systems AG (ISIN DE0005874846, Prime
Standard) registered a decline in revenues of 13.2 percent to 9.6 million
EUR in the first quarter of the current fiscal year compared to 11.0
million EUR in the same period of last year. The reasons for this decline
were the decision for the discontinuation of orders without margin
contribution as well as the already omitted customer relationship to a
Northern European company in the telecommunications segment.

The cost of material ratio as a percentage of sales rose only slightly from
74.7 percent in the prior year’s period to 75.2 percent in the first
quarter 2008 in spite of numerous new production starts and the expansion
of the serial production in the Automotive segment in the Czech Republic.

Personnel expenses of the Group increased from 1.3 million EUR in the first
quarter 2007 to 1.6 million EUR in the first quarter 2008. Personnel
expenses ratio as a percentage of sales thus reached 17.2 percent after
11.7 percent in the prior year’s period. Staff rose by 24 to 260 employees
in the first quarter. This underpins the consequent expansion of the sales
and development capacities of InTiCom Systems opening up new markets and
developing new innovative products. Also the serial production for the
automotive industry was strongly pushed.

Research and development expenses amounted to 0.5 million EUR for the Group
(prior year: 0.4 million EUR). This reflects the expansion of capacities
for the product development at Passau and the expenses for development and
creation of the Group’s own production technology at Neufelden. In the
field of RFID applications additional customer tailored developments for
access authorization systems and tire pressure control systems were made
especially. Moreover new developments in the growth areas of hybrid and
solar technologies were started.

As a result of the capital expenditure in the past years into the expansion
of the business segments and innovative developments, depreciation for the
first quarter 2008 rose to 0.8 million EUR which is 0.4 million EUR above
prior year’s quarter level.

As a consequence of the aforementioned development, earnings before
interest and taxes (EBIT) is reduced by 1.2 million EUR to -0.3 million EUR
(prior year 0.9 million EUR). The quarterly net result shows a loss of 0.4
million EUR (prior years period: +0.6 million EUR).

Further on high liquidity of 13.8 million EUR as of March 31, 2008 (prior
year 16.8 million EUR) are below the amount as of the balance sheet date
2007 (15.5 million EUR). The drop in comparison with the balance sheet date
is due to increased capital expenditures in property, plant and equipment
as well as inventories and the continued expansion of the serial production
in the Automotive segment.

Overall, capital expenditures in the first quarter 2008 amounted to 1.8
million EUR and exceed last year’s volume (0.6 million EUR) by 1.2 million
EUR. These funds have mainly used for the expansion of the nearly fully
automated serial production and the new VDSL-technology in Prachatice,
Czech Republic.

The Group’s equity ratio remains at a high level of 60 percent. As of
December 31, 2007 the equity ratio was 59 percent.

A decrease in sales and net income is expected for the Telecommunication
segment in fiscal year 2008.

Automotive segment will make a significantly higher contribution to Group
sales with targeted segment sales of 6.1 million EUR. The segment’s result
for the current business year will be negative mainly due to the
aforementioned high capital expenditures to grow this business segment.
Break even in the Automotive segment is targeted for 2009. In the next 4 to
5 years the segment shall contribute around 40% to Group sales.

The business segment Industry shall contribute sales of around 0.9 million
EUR in 2008. Break even of this segment is expected for 2010.

In comparison with the prior year The Board of Directors expect a decrease
in sales for the current business year. The ongoing expansion of sales and
development resources for innovative projects for future profitable growth
and exceptional one-time charges will lead to a net loss for the fiscal
year on all likelihood.

InTiCom Systems AG
The Board of Directors

Further details of the Three-month consolidated financial statements
2008 and the complete interim report on the first three-year 2008 can also
be found at:

www.inticom-sytems.de  Investor Relations  Publications
 2008 quarterly reports

If you have questions, please contact:

Walter Brückl
CEO

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

E-mail: investor.relations@inticom-systems.de

20.05.2008 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

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