Balda AG / Quarter Results 07.05.2008 Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Slight growth in revenues to 45.2 million euros (2007: 42.9 million euros) - Delayed start of production hindering revenue growth - Special effects have negative influence on results - Minus 5.2 million euros operating result (EBIT) of continued operations (2007: plus 0.8 million euros) below plan - Guidance for 2008 confirmed: Revenues and earnings growth expected to be borne by second half of the year Bad Oeynhausen, May 7, 2008. The Balda Group increased its sales revenues from January to March 2008 in continued operations to 45.2 million euros (previous year: 42.9 million euros). The slight increase compared to the same period of the previous year is primarily due to the touch screen operations at the TPK subsidiary. The sales in the continued European operations were generated exclusively by the medical technology sector. Sales revenues increased by 0.9 million euros or 16.4 percent to 6.6 million euros compared to the first quarter of 2007 (previous year: 5.7 million euros). Balda closed the first quarter of 2008 with sales revenues of 34.7 million euros in Asia (previous year: 35.3 million euros). This is a drop of 0.6 million euros or 1.7 percent compared to the previous years quarter. The limited development of sales in both the infocom and the touch screen operations compared to the second half of 2007 hindered a more dynamic sales trend. Old projects are being run down and new ones being ramped up with a time lag. In addition to this, the first quarter is typically a seasonally weak period for the mobile phone market. Company investments in tangible and intangible fixed assets in continued operations amounted to 9.8 million euros in the first quarter of the current fiscal year (previous year: 14,8 million euros). Investments for the most part concerned preproduction costs for customer contracts at TPK. The Balda Group employed 6,550 staff worldwide in the continued business areas as of 31 March 2008. This is a minus of 9.3 percent compared to the end of the 2007 fiscal year with 7,218 employees. The reduction primarily affected temporary workers at TPK and Balda Solutions in Suzhou, China. Projects are being discontinued at both production locations. The follow-up projects are beginning according to plan but with a delay in the pilot models. The expenditures for materials and services rendered in the period under review expanded disproportionately by 8.6 million euros or 42.4 percent to 28.7 million euros (previous year: 20.1 million euros). The main reason for the increase was the growth in business volume for TPK in China compared to the first quarter of 2007. The touch screen operations require significantly higher material usage than the other Balda operations. As expected, the operating result (EBIT) dropped into the negative at the end of the first quarter of 2008 with minus 5.2 million euros (previous year: plus 0,8 million euros). In this result expenditures for depreciation on activated customer relations in Asia are reflected as well as increased consulting costs and the aforementioned impact of projects being run down and being ramped up with a time lag. The earnings before taxes (EBT) amounted to minus 7.4 million euros after the first three months of the current fiscal year (previous year: minus 1.9 million euros). After taxes and minority interests, the Balda Group closed the first three months of 2008 with a deficit of 6,7 million euros in the quarterly results for the continued operations (previous year: surplus of 1,7 million euros). Based on 54.2 million shares (status at 31 March 2008), an undiluted outcome per share of minus 0,9 cents has been calculated from the deficit in the first quarter of 2008 (previous year: minus 8.1 cents at 47.4 million shares). For 2008, the Balda Group is planning revenues of 600 million US dollars and earnings before taxes (EBT) of 35 million US dollars based on the exchange rate of 1.45 US dollars per euro. The group wants to achieve over 80 percent of its revenues in Asia in the current financial year 2008. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: Key figures of Balda AG (continued operations) in mio. EUR Q1/2008 Q1/2007 Variation in % Revenues 45.2 42.9 5.5 Europe 6.6 5.7 16.4 Asia 34.7 35.3 -1.7 America 3.9 3.3 17.7 India 0.2 - - Total operating performance 52.5 43.4 20.2 EBITDA 1.1 3.8 -72.3 Operating result (EBIT) -5.2 0.8 -757,3 EBIT margin (in %) -9.9 1.8 Earnings before taxes (EBT) -7.4 -1.9 -300.1 Q1 net income -6.7 1.7 -485.3 Q1 net income including discontinued operations -0.5 -4.1 88.4 Earnings per share (in cents) -0.9 -8.7 89.9 Employees 6,550 7,351 -10.9 If you have any questions please contact: Balda AG, Clas Röhl, Phone: +49 5734 922 2728, Fax: +49 5734 922 2691, Mail: croehl@balda.de, Internet: www.balda.de DGAP 07.05.2008 --------------------------------------------------------------------------- Language: English Issuer: Balda AG Bergkirchener Str. 228 32549 Bad Oeynhausen Deutschland Phone: +49-(0)5734-922-0 Fax: +49-(0)5734-922-2747 E-mail: info@balda.de Internet: www.balda.de ISIN: DE0005215107 WKN: 521510 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Balda AG: delayed revenue growth in the first quarter / quarterly loss below plan
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