PRESS RELEASE: Kontron AG registers record level of design wins
27.10.2008
Kontron AG / Quarter Results
27.10.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
=--------------------------------------------------------------------------
Third-quarter sales rise to EUR 123.8 million / Volume of design wins jumps
to EUR 241 million / Gross margin rises to 31.7 percent / Net cash position
of over EUR 40 million / 2008 sales and earnings forecasts confirmed
Eching, Munich, October 27, 2008. With sales of EUR 123.8 million, Kontron
AG continued the dynamic business progress of the first six months in the
third quarter of the current financial year. This represents growth of 7.7
percent compared to the prior year period (EUR 115.0 million). The record
level of the second quarter (EUR 126.7 million) was once again slightly
exceeded when taking into account the discontinuation of proceeds resulting
from the deconsolidation of the Asian Quanmax joint venture as of June 30
(around EUR 4.7 million). Total organic growth was even in excess of 16
percent when adjusted for the deconsolidation of Quanmax, and strongly
negative currency effects. Kontron AG consequently achieved sales of EUR
356.3 million in the first nine months of the 2008 financial year, compared
with EUR 322.6 million in the previous year period. The order backlog
climbed to EUR 299 million as of September 30. This represents an increase
of 12 percent compared with the prior year period (EUR 267 million),
despite the sharp drop in the dollar. Growth rates were even higher in
terms of design wins, which are important for medium-term planning and
forecasts. The number of design wins grew to 328, compared with 254 in the
same period of the previous year, and volumes rose to EUR 241 million in
the first three quarters (EUR 202 million in the prior year period). In
particular, a new record level of EUR 91 million (previous year: EUR 73
million) was achieved in the third quarter. Among other things, major
orders were booked in the energy area of application, in
telecommunications, as well as in the new fields of application in the
infotainment area. Kontron AG's high degree of diversification is
consequently continuing to have a sustainably positive effect in vertical
markets in the third quarter.
Gross margin rises to 31.7 percent
With operating earnings (EBIT) of EUR 12.6 million, Kontron AG continued to
achieve a double-digit EBIT margin of slightly above 10 percent in the
third quarter. When making comparisons with the extraordinarily high
figure of EUR 16.8 million achieved in the previous year, it should be
noted that this contains extraordinary effects arising from the sale of the
mobile computer division in the USA, and the purchase of PLG. Operating
earnings rose by over 29 percent year-on-year when adjusted for these two
effects (around EUR 7 million). EBIT totaled EUR 34.0 million in the first
nine months of the current financial year (compared with EUR 33.9 million
in the prior year period). Third-quarter net earnings amounted to EUR 9.5
million (previous year: EUR 12.8 million), consequently bringing the total
for the first nine months to EUR 25.4 million, compared with EUR 25.6
million in the previous year period. In this case too, it should also be
noted that the previous year's figure contains the extraordinary effects
arising from the sale of the mobile product line, and the acquisition of
PLG. Kontron AG's significant year-on-year rise in profitability is also
evident in the gross margin, which rose from 30.5 percent in the third
quarter of the previous year to 31.7 percent this year. This also reflects
the initial positive effects from the successful restructuring in Asia.
Very good liquidity
Kontron AG enjoys an excellent and stable liquidity position as of
September 30. Cash and short-term securities of EUR 52.3 million, for
instance, registered a further rise compared with the end of the second
quarter (EUR 49.3 million). Given an almost unchanged level of bank debt,
net cash amounted to slightly above EUR 40 million. Positive operating cash
flow continued to be achieved in the third quarter, at EUR 6.0 million. It
totaled EUR 12.6 million as of the end of September.
Positive year's outlook despite the threat of recession
'Third-quarter sales growth, the high level of the order backlog of almost
EUR 300 million, and, in particular, the further rise in design wins, both
in terms of numbers and volumes, are positive indicators for Kontron AG's
continued profitable business growth,' commented Kontron CEO Ulrich
Gehrmann. He went on to say that, as far as expectations for the fourth
quarter are concerned, the company is assuming it will achieve the targets
it set itself for 2008: (currency-adjusted) double-digit sales growth,
accompanied by an even faster rise in operational earnings. While
short-term negative effects cannot be excluded due also for Kontron to
growing uncertainties in global markets, and particularly due to the
emerging recession, Kontron, as an outsourcing specialist, nevertheless
regards itself as well positioned due to its strong vertical and geographic
diversification, and its stable financial and asset positions. CEO Gehrmann
went on to say that the extensive Profit Improvement Program continues to
cater for positive effects on the earnings side. In particular, the
successful restructuring in Asia is already having a positive impact on the
gross and EBIT margins as a result of more favorable purchasing conditions,
and the fact that the company has recourse to its own production facilities
there.
Investor Relations: For further information:
Gaby Moldan Dr. Udo Nimsdorf
Kontron AG Engel & Zimmermann AG
Oskar-von-Miller-Str. 1, Agentur für Wirtschaftskommunikation
85386 Eching Schloss Fußberg, Am Schlosspark 15,
Tel:+498165/77212,Fax+498165/77222 D - 82131 Gauting
Tel:+4989-8935633,Fax+4989-89398429
Email: Gaby.Moldan@kontron.com Email: info@engel-zimmermann.de
27.10.2008 Financial News transmitted by DGAP
=--------------------------------------------------------------------------
Language: English
Issuer: Kontron AG
Oskar-von-Miller-Str. 1
85386 Eching
Deutschland
Phone: 08165-77-225
Fax: 08165-77-222
E-mail: martin.przybyla@kontron.com
Internet: www.kontron.com
ISIN: DE0006053952
WKN: 605395
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, München, Hamburg, Düsseldorf, Stuttgart
End of News DGAP News-Service
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Kontron AG / Quarter Results
27.10.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
=--------------------------------------------------------------------------
Third-quarter sales rise to EUR 123.8 million / Volume of design wins jumps
to EUR 241 million / Gross margin rises to 31.7 percent / Net cash position
of over EUR 40 million / 2008 sales and earnings forecasts confirmed
Eching, Munich, October 27, 2008. With sales of EUR 123.8 million, Kontron
AG continued the dynamic business progress of the first six months in the
third quarter of the current financial year. This represents growth of 7.7
percent compared to the prior year period (EUR 115.0 million). The record
level of the second quarter (EUR 126.7 million) was once again slightly
exceeded when taking into account the discontinuation of proceeds resulting
from the deconsolidation of the Asian Quanmax joint venture as of June 30
(around EUR 4.7 million). Total organic growth was even in excess of 16
percent when adjusted for the deconsolidation of Quanmax, and strongly
negative currency effects. Kontron AG consequently achieved sales of EUR
356.3 million in the first nine months of the 2008 financial year, compared
with EUR 322.6 million in the previous year period. The order backlog
climbed to EUR 299 million as of September 30. This represents an increase
of 12 percent compared with the prior year period (EUR 267 million),
despite the sharp drop in the dollar. Growth rates were even higher in
terms of design wins, which are important for medium-term planning and
forecasts. The number of design wins grew to 328, compared with 254 in the
same period of the previous year, and volumes rose to EUR 241 million in
the first three quarters (EUR 202 million in the prior year period). In
particular, a new record level of EUR 91 million (previous year: EUR 73
million) was achieved in the third quarter. Among other things, major
orders were booked in the energy area of application, in
telecommunications, as well as in the new fields of application in the
infotainment area. Kontron AG's high degree of diversification is
consequently continuing to have a sustainably positive effect in vertical
markets in the third quarter.
Gross margin rises to 31.7 percent
With operating earnings (EBIT) of EUR 12.6 million, Kontron AG continued to
achieve a double-digit EBIT margin of slightly above 10 percent in the
third quarter. When making comparisons with the extraordinarily high
figure of EUR 16.8 million achieved in the previous year, it should be
noted that this contains extraordinary effects arising from the sale of the
mobile computer division in the USA, and the purchase of PLG. Operating
earnings rose by over 29 percent year-on-year when adjusted for these two
effects (around EUR 7 million). EBIT totaled EUR 34.0 million in the first
nine months of the current financial year (compared with EUR 33.9 million
in the prior year period). Third-quarter net earnings amounted to EUR 9.5
million (previous year: EUR 12.8 million), consequently bringing the total
for the first nine months to EUR 25.4 million, compared with EUR 25.6
million in the previous year period. In this case too, it should also be
noted that the previous year's figure contains the extraordinary effects
arising from the sale of the mobile product line, and the acquisition of
PLG. Kontron AG's significant year-on-year rise in profitability is also
evident in the gross margin, which rose from 30.5 percent in the third
quarter of the previous year to 31.7 percent this year. This also reflects
the initial positive effects from the successful restructuring in Asia.
Very good liquidity
Kontron AG enjoys an excellent and stable liquidity position as of
September 30. Cash and short-term securities of EUR 52.3 million, for
instance, registered a further rise compared with the end of the second
quarter (EUR 49.3 million). Given an almost unchanged level of bank debt,
net cash amounted to slightly above EUR 40 million. Positive operating cash
flow continued to be achieved in the third quarter, at EUR 6.0 million. It
totaled EUR 12.6 million as of the end of September.
Positive year's outlook despite the threat of recession
'Third-quarter sales growth, the high level of the order backlog of almost
EUR 300 million, and, in particular, the further rise in design wins, both
in terms of numbers and volumes, are positive indicators for Kontron AG's
continued profitable business growth,' commented Kontron CEO Ulrich
Gehrmann. He went on to say that, as far as expectations for the fourth
quarter are concerned, the company is assuming it will achieve the targets
it set itself for 2008: (currency-adjusted) double-digit sales growth,
accompanied by an even faster rise in operational earnings. While
short-term negative effects cannot be excluded due also for Kontron to
growing uncertainties in global markets, and particularly due to the
emerging recession, Kontron, as an outsourcing specialist, nevertheless
regards itself as well positioned due to its strong vertical and geographic
diversification, and its stable financial and asset positions. CEO Gehrmann
went on to say that the extensive Profit Improvement Program continues to
cater for positive effects on the earnings side. In particular, the
successful restructuring in Asia is already having a positive impact on the
gross and EBIT margins as a result of more favorable purchasing conditions,
and the fact that the company has recourse to its own production facilities
there.
Investor Relations: For further information:
Gaby Moldan Dr. Udo Nimsdorf
Kontron AG Engel & Zimmermann AG
Oskar-von-Miller-Str. 1, Agentur für Wirtschaftskommunikation
85386 Eching Schloss Fußberg, Am Schlosspark 15,
Tel:+498165/77212,Fax+498165/77222 D - 82131 Gauting
Tel:+4989-8935633,Fax+4989-89398429
Email: Gaby.Moldan@kontron.com Email: info@engel-zimmermann.de
27.10.2008 Financial News transmitted by DGAP
=--------------------------------------------------------------------------
Language: English
Issuer: Kontron AG
Oskar-von-Miller-Str. 1
85386 Eching
Deutschland
Phone: 08165-77-225
Fax: 08165-77-222
E-mail: martin.przybyla@kontron.com
Internet: www.kontron.com
ISIN: DE0006053952
WKN: 605395
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, München, Hamburg, Düsseldorf, Stuttgart
End of News DGAP News-Service
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