SMARTRAC N.V. / Quarter Results
06.11.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Q3 2008 sales increased by 35 percent to EUR 30.2 million (sales Q2 2008:
EUR 22.5 million) strongest quarter in history of the company
9M 2008 sales increase by 18 percent to EUR 79.8 million
(Sales 9M 2007: EUR 67.7 million)
SMARTRAC delivers on strategic objectives
Challenging environment in the ePassport business
9M 2008 EBITDA decrease by 7 percent to EUR 16.4 million
(EBITDA 9M 2007: EUR 17.5 million) mainly due to change in product mix
Amsterdam, November 6, 2008 The Dutch Company SMARTRAC N.V. (stock
abbreviation SM7) today announced its results for the first nine months of
2008. The SMARTRAC Q3 2008 Interim Report is available for download from
the companys website at www.smartrac-group.com.
SMARTRAC reported sales of EUR 79.8 million in the first nine months of
2008, which represents an improvement of some 18 percent compared to sales
of EUR 67.7 million in the first nine months of 2007. SMARTAC made full use
of its production capacity and, although SMARTRAC was faced with a very
challenging environment in its US ePassport business, the company has
achieved its best quarter since inception. From July to September 2008
group sales exceeded EUR 30 million (EUR 30.2 million) for the first time
representing 35 percent growth over the previous quarter.
SMARTRAC´s ability to compensate the significant decline in the US
ePassport business with other projects and product lines is evidence of the
strength of its diversified product portfolio. Due to the change in the
product mix, ramp-up costs and extraordinary legal expenses, EBITDA from
January to September decreased by 7 percent from EUR 17.6 million to EUR
16.4 million, still generating an EBITDA margin of above 20 percent. In the
period under review, SMARTRAC is generating cash flow from operating
activities of EUR 13.9 million compared to EUR 9.4 million a year ago.
The change in the product mix and the challenges in the ePassport business
have led to SMARTRAC reassessing its sales for the fourth quarter. SMARTRAC
now assumes its fourth quarter sales to be at least slightly up on the
third quarter with a certain growth potential to finish the year close to
the original sales target for the full year 2008. Management assumes total
sales for the fiscal year 2008 to be in the range of EUR 110 million to EUR
120 million, representing a year-on-year growth in the range of 14 percent
to 24 percent. In terms of profitability SMARTRAC assumes an EBITDA margin
of around 20 percent in light of the changing product mix.
'SMARTRAC has returned a record quarter. In light of the economic
environment in general and the development in our ePassport business in
particular, the result is a strong performance. It shows the strength of
our diversified portfolio and provides an indication of what SMARTRAC would
have achieved if development in the US passport sector had been normal,'
said Dr. Christian Fischer, CEO of SMARTRAC. 'With the acquisition of
Sokymat Automotive, entry into the Chinese market, the settlement of a
licensee dispute, and a co-operation with Sony, we have realized important
steps of our business strategy. SMARTRAC has delivered on its strategic
objectives and again returned profitable growth from its operating
business.'
Sales in the first nine months of 2008 in the High Security segment reached
EUR 45.9 million, representing a decrease of some 3 percent compared to
sales of EUR 47.5 million from the same period of the previous year. Due to
a higher proportion of chip-sourcing, EBITDA in the nine month period ended
September 30, 2008 fell disproportionately by some 6 percent to EUR 14.8
million compared to EUR 15.8 million from January to September 2007.
Sales in the Standard segment for the first nine months of 2008 of EUR 34.3
million are 67 percent higher compared to sales of EUR 20.5 million from
the comparable period in 2007. With EBITDA of EUR 3.5 million in the first
nine months of 2008, the Standard segment returned a slight increase on the
EBITDA of EUR 3.2 million recorded in the same period in 2007. EBITDA
growth in the first nine months of 2008 was not proportional to sales
growth mainly due to a higher proportion of chip sourcing, the ramp-up
costs for the new product lines such as eTickets with etched antennas, and
RFID components for animal identification and logistics.
About SMARTRAC N.V.
SMARTRAC is a leading supplier of RFID (Radio Frequency Identification)
components for Standard and High Security product segments. In the Standard
segment, the company produces ready-made components for RFID applications
in public transport, access control, and logistics. In the High Security
segment, SMARTRAC is the global leader in high-quality RFID inlays for
passports with integrated, contactless chips (ePassports) and contactless
credit cards (ePayment). SMARTRAC was founded in 2000 and since going
public in July 2006 has been trading as a stock corporation under Dutch law
with its registered headquarters in Amsterdam. The company currently
employs some 2.800 employees around the globe.
Forward-looking statements
To the extent that this press release contains forward-looking statements,
such statements are based on assumptions, planning, and forecasts at the
time of publication of this press release. Forward-looking statements
always involve uncertainties. Business and economic risks and developments,
the conduct of competitors, political decisions, and other factors may
cause the actual results to be materially different from the assumptions,
planning, and forecasts at the time of publication of this press release.
Therefore, SMARTRAC N.V. does not assume any responsibility relating to
forward-looking statements contained in this press release. Furthermore,
SMARTRAC N.V. does not assume any obligation to update the forward-looking
statements contained in this press release.
Andreas Schwarzwälder
SMARTRAC N.V.
Investor Relations & Corporate Communications
Tel: +31 20 30 50 156
Email: investor.relations@smartrac-group.com
DGAP 06.11.2008
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Language: English
Issuer: SMARTRAC N.V.
Strawinskylaan 851
1077 XX Amsterdam
Niederlande
Phone: +31 20 30 50 156
Fax: +31 20 30 50 155
E-mail: investor.relations@smartrac-group.com
Internet: www.smartrac-group.com
ISIN: NL0000186633
WKN: A0JEHN
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: SMARTRAC N.V. reports on results for the first nine months of 2008 returning strongest quarter ever with sales of over EUR 30 million
| Source: EQS Group AG