PVA TePla AG — Earnings Release 2001

Aug 29, 2001

News Details

Ad-hoc | 29 August 2001 08:01

TePla AG english

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Feldkirchen bei München, August 29, 2001: In the first half of 2001, Tepla AG (WKN 746100), makers of plasma systems for the semiconductor industry and industrial surface treatment systems, increased sales by 120 percent as planned from EUR 5.4 million to EUR 12.0 million. Despite the crisis in the semiconductor market, pro forma sales (excluding those generated by MetroLine Industries Inc., the US company acquired in October 2000) rose significantly relative to the same period the year before, namely by 33 percent to EUR 7.3 million. However, the operating result (Ebit) was worse than expected, coming in at EUR -1.7 million (H1/2000: EUR – 0.2 million). Earnings per share, based on the DVFA method, were EUR -0.66 compared to EUR -0.03 the year before. This deterioration in earnings was attributable to two main factors: firstly, the expense of restructuring MetroLine, which proved to be considerable more than expected. Secondly, expenditure on research and development was substantially higher, particularly in respect of a new system for treating glass substrates for flat display panels, which the first customer is already using in Taiwan. Given that the restructuring measures will already take effect in the current third quarter, the company expects a positive operating result for the second half of the year. However, it does not expect the losses incurred in the first six months to be fully compensated by the end of the year. TePla AG reiterates its sales targets of EUR 25 million in 2001. end of ad-hoc-announcement (c)DGAP 29.08.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: In addition to continuing its penetration of the semiconductor industry, its core business, the growth strategy operated by TePla AG is also geared to systematic transferral of its plasma technology to other industries. Within this context, the acquisition of MetroLine Industries Inc. in October 2000 was a highly important move, because it enhances the company’s presence not only in the world’s most important semiconductor market, but also in the ‘Industrial/Medical’ field. The company now generates more than 50 percent of its sales in sectors other than the cyclical semiconductor industry, and the sales growth achieved are solid evidence for the success of this strategy. With 53 percent the USA is now the most important market for the TePla group. However, the extent to which it was necessary to restructure the new US subsidiary was much greater than originally anticipated – the second MetroLine production site in Hayward, in costly Silicon Valley, caused production costs within the Group as a whole to increase beyond the budgeted figures. As at July 1 of this year, the Hayward plant was closed down, outdated product lines were discontinued and all production concentrated in Corona, California. Unplanned start-up costs for new products led to a further reduction in operating results for the first half of the year. The latter costs were primarily related to the FPD40 plasma system used to produced flat panel displays, and in time will generate a greater pay-back, in that the system is targeted at a market which is expected to grow at rates in excess of 100 percent in the years ahead. A few weeks ago, the system was accepted by the first reference customer a mere five months after development commenced. ——————————————————————————– WKN: 746100; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 290801 Aug 01