RTX — Earnings Release 2011

Nov 21, 2012

RTX is in line with announced expectations for 2011/12 with realized revenue of
DKK 191.3 million and a profit before tax of DKK 2.5 million

Nørresundby, Denmark, 21 November 2012, 2012-11-21 13:43 CET (GLOBE NEWSWIRE)
-- The Supervisory Board of RTX A/S has today considered and adopted the
Group’s annual report and interim report for the fourth quarter of the
financial year 2011/12 (covering the period 1 July 2012 to 30 September 2012).

Summary of the annual report of the RTX Group for 2011/12

-- Group revenue amounts to DKK 191.3 million for the financial year 2011/12
compared to DKK 204.9 million for the financial year 2010/11. Revenue thus
decreased by 6.6%.
-- The gross margin improved, from 57.9% in the last financial year to 59.9%
in 2011/12.
-- Operating profit (EBIT) amounts to DKK 2.5 million, or 1.3%, compared to
DKK 9.0 million, or 4.4% in the last financial year.
-- The capacity costs are on par with the previous year and contain
significant investments in new technologies and new product platforms.
-- The operat
ing cash flow amounts to DKK -8.2 million compared to DKK 17.0 million in
the previous financial year. The net cash flow was heavily impacted by an
increase in the working capital. The launch of a new Skype phone and the
launch of the first handset for Alcatel Lucent were in 2011/12 the main
drivers behind an increase in the working capital.
-- The Group’s total cash flow in 2011/12 was impacted by the continued
investments in own development, even though RTX received final funding of
DKK 5.0 million. The net cash flow for the year was consequently negative
with DKK 18.8 million compared to a positive cash flow of DKK 1.0 milllion
for the previous financial year.
-- The Group’s equity amounted to DKK 156.3 million on 30 September 2012,
which is an increase of DKK 4.4 million compared to the financial year
2010/11.
-- The profit after tax amounts to DKK 1.9 million compared to DKK 3.9 million
in the previous financial year.
-- At the beginning of the financial year 2012/13 RTX stands with an almost
complete renewal of the product range both within the telephony field and
within a new technology for low power modules for wireless communications
solutions. The new products and technologies give RTX good opportunities
for growth. The sales and distribution platform has been strengthened and
enlarged globally over the past year in both business units, enabling RTX
to better capitalize on the investments made in the product portfolio and
new technologies.
-- The Supervisory Board proposes that the shareholders at the Annual General
Meeting in January 2013 authorize the Company to acquire treasury shares at
a total nominal value of up to 10% of the Company’s share capital.

Prospects for the financial year 2012/13

The beginning of the financial year 2012/13 is connected with somewhat
uncertainty about the global economic outlook. Both business units in RTX are
dependent on the general global economy and the customers’ will to invest,
either in new technologies and products as what concerns Design Services, or in
new Enterprise communications solutions as what concerns Enterprise & VoIP. RTX
has, however, during the past years invested significantly in new technologies
and product platforms, and has also focused on expanding its sales platform.
The Management expects that these investments will compensate for the general
economic uncertainty which impacts the world economy, thus RTX will generate
results slightly above the level for the financial year 2011/12. It is expected
that Design Services will be in line with the result for the financial year
2011/12, while the result for Enteprise & VoIP will be a bit better than the
result for 2011/12.

The Management expects to achieve Group revenue in the range of DKK 200-210
million, an operating profit (EBIT) in the range of DKK 4-6 million and an
EBITDA in the range of DKK 12-14 million. The Management expects to capitalize
approx. DKK 2-3 million in the financial year 2012/13, in connection with the
completion of the Enterprise platform. The investments in own development
projects are thus expected to decrease significantly compared to 2011/12. The
Group expects to achieve a positive cash flow from operations in 2012/13.

Summary of the interim report of the RTX Group for the fourth quarter of 2011/12

-- Group revenue amounts to DKK 47.0 million for the fourth quarter of 2011/12
compared to DKK 63.2 million in the same period last year. The decrease in
revenue of 25.6% is due to a minor decline in Design Services (former RTX
Technology), where revenue declined from DKK 21.4 milllion in the fourth
quarter of 2010/11 to DKK 20.7 million in the fourth quarter of 2011/12,
equal to a decrease in revenue of 3.3%. Revenue in Enterprise & VoIP
(former RTX Products) amounts for the fourth quarter of 2011/12 to DKK 25.8
million compared to DKK 40.6 million in the same period last year, equal to
a decrease in revenue of 36.5%.
-- The Group’s gross margin improved to 56.7% for the fourth quarter of
2011/12 compared to a gross margin of 53.6% for the same period last year.
-- Operating profit/loss (EBIT) amounts to DKK -1.7 million for the fourth
quarter of 2011/12 compared to DKK 3.7 million for the same period last
year.
-- Profit/loss after tax amounts to DKK -2.3 million compared to DKK 0.8
million for the same period last year.
-- The Group’s total cash flow amounts to DKK -8.3 million for the fourth
quarter of 2011/12 compared to DKK -7.6 million in the same period last
year.

Revenue and profit for the fourth quarter of 2011/12 has developed in line with
Management’s expectations, as announced in the interim report for the third
quarter of 2011/12.

Jesper Mailind has resigned from his position as President & CEO in RTX A/S to
become President & CEO in the consulting engineering company ALECTIA A/S. The
Supervisory Board has initiated a search for a suitable replacement. Jesper
Mailind has 6 months’ notice, and he will leave RTX as soon as a replacement
can take over his position, however, no later than by the end of April 2013.

The Supervisory Board will at the coming General Assembly recommend the
shareholders that Jesper Mailind is elected member of the Supervisory Board in
RTX A/S.

Yours sincerely,

RTX A/S

Jens Alder Jesper
Mailind

Chairman President &
CEO

Questions and further information:

Jesper Mailind, President & CEO, tel. +45 96 32 23 00

At 9 am on 22 November 2012 RTX A/S will hold a conference call. At the meeting
President & CEO Jesper Mailind and CFO Jacob Vittrup will comment on the result
for the fourth quarter and the annual report for 2011/12, and will answer
questions, if any. The password for the conference call can be obtained by
contacting ir@rtx.dk.