DGAP-News: Viscom AG: Recent economic conditions affect results


Viscom AG / Quarter Results

12.11.2008 

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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• Revenue of first nine month 2008 stays behind expectations with K€
41,116; against the trend, the third quarter 2008 is weaker than the same
period last year
• Orders received of K€ 35,582 below level of previous year – Strain due to
impending recession
• Order backlog of K€ 8.666 lower than corresponding period of last year
• Earnings per share amounts to € 0.13 (previous year: € 0.07)

Hanover, 12 November 2008 – During the first nine months of 2008, Viscom
generated revenues of K€ 41,116, compared to K€ 33,553 for the
corresponding period last year. This corresponds to an increase of 22.5 %.
Contrary to the normal seasonality, during this financial year the third
quarter 2008 developed weaker that expected with K€ 12,670 (previous year:
K€ 14,374). 'Due to the recent events around the financial crisis, an
economic recession seems ever more likely', states Volker Pape, board
member and company founder of the Viscom AG. 'Even an internationally
engaged technological enterprise such as Viscom would not be able to
disengage itself from such a development.' This restrained investment
bearing is expected to persist during the fourth quarter 2008. Even though
the US dollar has posted gains against the euro at the end of the third
quarter, Viscom had to reckon with revenues diminished by more than K€ 800
during the first three quarters of financial year 2008.

Throughout the first three quarters 2008, the customers of the Viscom Group
granted orders amounting to K€ 35,582. Orders received were noticeably
below the level of the previous years' period (K€ 41,100). With K€ 8,666
the order backlog, already lowered after processing of the previous years'
orders during the second quarter of 2008, correspondingly rests 46.0 %
below the value at the end of the third quarter 2007 (K€ 16,100).

The EBIT developed more poorly in comparison to the previous year's period
despite raised revenues, as a result of several factors. Among these was
the expansion of the employee base conducted during the previous year.
These staff costs are borne fully during the year 2008, increasing
operating expenses by about € 1.7 million. Additionally, the development of
the US dollar and the competitive situation in Asia eroded prices in
certain segments, contributing to further reduction in the gross margin.
Moreover, phasing out the predecessor model to the X7056RS resulted in
raised materials costs.

'Viscom was on the other hand able to release a provision of K€ 1.290 that
was no longer required', underlines Ulrich Mohr, board member and financial
officer of the Viscom AG. 'The EBIT therefore increased to K€ 1,613
(previous year: K€ 677).'

In comparison to the previous year, the financial result has dropped
sharply. Due to reduced financial investment and a change in the form of
investment, which has primarily a tax-optimising benefit, the financial
result is currently K€ 239 (previous year K€ 756). The tax-optimising
effects of this form of investment will be recognised at the end of the
year. The tax rate was 38.1 % at 30 September 2008. For the entire year
2008, a notably lowered tax rate is projected. For the first three quarters
2008, Viscom achieved a gain for the period of K€ 1,147 (previous year, K€
675). The earnings per share rose due to the
share buy-back programme rather more steeply than the period profits and
with € 0.13 reached a level higher than the prior year's € 0.07.

'Since a worsening in readiness to invest was already apparent in October,
this tendency will have a sustained influence on the Viscom AG during the
financial year 2008, just as it will on other companies', stresses Dr.
Martin Heuser, board member and company founder of the Viscom AG, 'Thus the
Executive Board has, as announced in an Ad Hoc Notice from
3 November 2008, revised the prognosis delivered in March 2008. The
company's management is now expecting revenues between € 50 million and €
52 million with an EBIT margin between 1 % and 3 %.


Insofar as this notice contains prognoses or expectations or concerns
statements regarding the future, these statements may be marked by risk and
uncertainty. Thus we cannot guarantee that the expectations will prove
themselves correct. Actual events and developments may deviate
significantly from the expectations and assumptions expressed herein. Among
the factors which may cause deviation are changes in the general economic
situation, the competitive situation, exchange rates, interest rates and
changes in national and international laws, among others. Thus the company
assumes no responsibility to update the statements conveyed within this
notice.


Contact:
Viscom AG
Investor Relations
Simone Huch
Carl-Buderus-Str. 9-15
30455 Hannover
Tel.: +49-511-94996-861
Fax:  +49-511-94996-555
simone.huch@viscom.de


DGAP 12.11.2008 
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Language:     English
Issuer:       Viscom AG
              Carl-Buderus-Strasse 9-15
              30455 Hannover
              Deutschland
Phone:        +49 (0) 511 94 996 861
Fax:          +49 (0) 511 94 996 501
E-mail:       simone.huch@viscom.de
Internet:     www.viscom.com
ISIN:         DE0007846867
WKN:          784686
Listed:       Regulierter Markt in Frankfurt (Prime Standard), Hannover;
              Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News                                     DGAP News-Service
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