Eching, Munich, April 27, 2009. Despite the further intensification of the global economic crisis, Kontron AG continued its profitable growth path in the first quarter of the 2009 financial year, and reported a slight increase in revenue to EUR 106.6 million compared with the EUR 105.9 million reported in the prior year period. Kontron AG's robust business developments in the current economic crisis is also reflected in the rise in its order backlog to EUR 306.3 million (compared with EUR 291.4 million as of the start of the year), thanks to the good order intake in the first quarter. In particular, design wins, the most important indicator of medium and long-term growth, advanced to mark a new historic record level of EUR 116.9 million in the first quarter. This corresponds to growth of 56 percent compared with the prior year period (EUR 75.1 million), and confirms the rising trend to outsource to embedded computer specialist such as Kontron in economically difficult periods. Kontron AG's innovative strength and high degree of diversification, in particular, is having a sustainably positive effect in vertical markets. Declines in the automation and infotainment areas were offset by orders from the somewhat more cyclically independent areas of telecommunications, energy, transportation and government. In the first months of the year, Kontron AG has already garnered two large design wins with a total volume of over USD 80 million and USD 100 million respectively from two major international telecoms equipment suppliers. The globally leading embedded computer provider will supply these customers in the future with platforms based on the latest ATCA technology. The advanced third and fourth generation systems manage the network infrastructure of existing backbones in a more rapid and error-tolerant manner. A major order was also won in the transportation technology area from a European company.
Due to the fact that the "Program 2011" profit improvement program is being implemented more rapidly and intensively than originally planned in view of the continuing global recession, higher restructuring costs arose particularly in the first quarter. These charges place a burden on earnings. For example, operating earnings of EUR 7.0 million and net income for the period of EUR 4.9 million were below the prior year's results (EUR 8.7 million and EUR 6.8 million respectively). The accelerated measures for the further relocation of production from America and Europe to the more cost-effective location in Penang, Malaysia, where 60 percent of Kontron's basis production is already located, had a particular impact. These investments will nevertheless have a positive effect on Kontron AG's earnings position in the medium and long term.
Kontron AG enjoys a very solid financial and asset position with an operating cash flow of EUR 10.1 million (prior-year period: minus EUR 5.3 million), a rise in its cash holdings from EUR 54.2 million at the turn of the year to currently EUR 58.8 million, and an approximately unchanged and low level of bank borrowings of around EUR 12.8 million (EUR 11.7 million). The excellent liquidity position also allows scope for further shareholder-oriented measures, including potential, fortuitously priced acquisition opportunities.
Kontron AG's Management Board is assuming that the difficult economic environment will continue over coming months. The company is expecting a fall in order intake particularly from the infotainment and automation areas. By contrast, the areas of telecommunication, medical technology, and especially infrastructure projects are proving highly stable with the promise of growth potential. Thanks to Kontron's broad sector diversification, its presence in all important global markets, and the ongoing outsourcing trend, the Kontron Management Board is optimistic that the Group can continue to operate profitably on the markets and gain new additional market shares.
85386 Eching ,
Tel: 08165/77212, Fax 08165/77222
For further information:
Dr. Udo Nimsdorf
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Am Schlosspark 15,
Tel. 089-89 35 633, Fax: 089-89 39 84 29
Email : email@example.com