CeoTronics AG / Final Results
23.08.2010 16:48
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Revenues EUR14,361 thousand / EBITDA EUR102 thousand / EBIT EUR-1,130
thousand / Consolidated loss EUR1,396 thousand / Gross cash flow EUR-164
thousand / Order backlog EUR2,409 thousand (+7.9%) / Incoming orders in Q4
+44.6% / Impairment losses impact annual earnings
CeoTronics AG Audio Video Data Communication (ISIN: DE0005407407),
Adam-Opel-Strasse 6, 63322 Rödermark, Germany, listed in the Prime Standard
segment of the Regulated Market on the Frankfurt Stock Exchange and in the
'DAXplus Family Index', recorded consolidated revenues of EUR14,361
thousand for fiscal year 2009/2010. This corresponds to a decline of 23.7%
year-on-year.
Fiscal year 2009/2010 closed with EBITDA of EUR102 thousand (previous year:
EUR2,533 thousand) and EBIT of EUR-1,130 thousand (previous year: EUR2,006
thousand). The EBIT margin was -7.9% (previous year: 10.7%).
The consolidated loss before tax amounted to EUR1,297 thousand, after
profit before tax of EUR1,906 thousand in the previous year. The
consolidated loss after tax was EUR1,396 thousand (previous year:
consolidated profit after tax of EUR1,279 thousand). This corresponds to
earnings per share of EUR-0.21 (previous year: EUR0.19).
Consolidated equity as of May 31, 2010 amounted to EUR10,863 thousand,
while the equity ratio was 68.7% (previous year: 72.5%). Gross cash flow
was EUR-164 thousand (previous year: EUR1,806 thousand).
CeoTronics identified a need to charge impairment losses due to current
business growth and future prospects at CeoTronics, Inc., U.S.A. As things
stand today, CeoTronics, Inc.'s current business growth and prospects for
fiscal year 2010/2011 do not appear to be sufficiently positive to support
the original planning, due among other things to the fact that the market
launch of new products is expected to be put back (as a result of delays in
approvals by the U.S. authorities), the training of new sales team members,
which is a time-consuming task for sales management, and the development of
a stronger indirect sales channel.
The impairment test performed after completion of the annual planning
process has identified a need to charge an impairment loss on the goodwill
reported in CeoTronics AG's consolidated financial statements (EUR643
thousand, of which EUR28 thousand are currency effects). Moreover,
previously recognized deferred tax assets relating to tax loss
carryforwards at CeoTronics, Inc. were no longer recognized, impacting
earnings by EUR280 thousand. In addition, the carrying amount of the
investment in CeoTronics, Inc. in CeoTronics AG's single-entity financial
statements has been written down by EUR777 thousand and receivables from
CeoTronics, Inc. by EUR1,342 thousand. These impairment losses
significantly reduce the risk of future business development related to
CeoTronics, Inc.
These one-time factors reduced CeoTronics, Inc.'s profit for fiscal year
2009/2010 by USD 903 thousand, CeoTronics AG's net income reported in its
single-entity financial statements by EUR2,119 thousand, and CeoTronics'
IFRS consolidated profit for the period by EUR923 thousand.
The consolidated order backlog as of the reporting date increased by 7.9%
as against the prior-year level to EUR2,409 thousand. Incoming orders in
the fourth quarter of fiscal year 2009/2010 were up 44.6% year-on-year.
The number of employees (including vocational trainees) as of May 31, 2010
was 154 (previous year: 155).
In comparison with Q4 2008/2009, Q4 2009/2010 (March 1 to May 31, 2010) saw
a decline in consolidated revenues of EUR1,317 thousand (-28.2%), from
EUR4,675 thousand to EUR3,358 thousand, and a decrease in EBIT of EUR1,295
thousand, from EUR413 thousand to EUR-882 thousand. Profit for the quarter
was down by EUR1,198 thousand year-on-year, from EUR90 thousand to
EUR-1,108 thousand. As a result, quarterly earnings per share declined to
EUR-0.17 (previous year: EUR0.01).
---------------------------------------------------------------------------
Information and Explaination of the Issuer to this News:
Fiscal year 2009/2010 was impacted by the effects of the global economic
and financial crisis, which while they did not occur immediately were all
the more severe, further delays in the switch to digital radio in Germany
and Northern Europe, and the calling of a halt to the German Armed Forces
project worth a total of approximately EUR4 million due to budget
restraints.
In addition to these unforeseeable external negative influences, CeoTronics
faced the expected return to normal of its business in Spain, Switzerland,
and the Benelux countries, following the substantial investments made in
the switch to digital radio in previous years.
CeoTronics U.S.A.'s operating business recorded a clear upturn. After
consolidation and translation from U.S. dollars to euros, CeoTronics
U.S.A.'s revenues increased by 125.3% year-on-year. The order backlog rose
by 156.1%.
CeoTronics, Inc.'s current business growth and prospects for fiscal year
2010/2011 do not appear to be sufficiently positive to support the original
planning, due among other things to the delay that is, unfortunately,
likely to occur in the availability of new products - including ones aimed
at additional new customer groups - the training of new sales team members,
which is a time-consuming task for sales management, and the development of
a stronger indirect sales channel.
As CeoTronics U.S.A.'s balance sheet assets were largely written down as a
result of this one-time factor, no material effects are expected on
long-term earnings in the coming years due to additional writedowns.
In addition to positive revenue and margin trends, the U.S. dollar exchange
rate also had a positive effect on earnings in fiscal year 2009/2010.
Without the one-time factor mentioned above, this would have resulted in a
profit for the year of USD 16 thousand for CeoTronics U.S.A., a significant
improvement on the previous year (USD -232 thousand).
CeoTronics AG continues to see earnings potential in the U.S. market.
However, for the reasons given it is taking a more reserved view on the
time required to realize this.
'The Board of Management analyzed in detail the order forecasts, project
lists, and the order backlog (including orders placed/batches drawn down
for the switch to digital radio in Berlin, Thuringia, and Hamburg that will
be delivered and invoiced in Q1 and Q2 of fiscal year 2010/2011) and
addressed the economic trends and budgetary position of the public-sector
customers in CeoTronics' priority markets. The results of this
forward-looking assessment are positive, assuming that no unusual and
currently unforeseen circumstances impact our assumptions. It appears
sufficiently likely that CeoTronics will be able to significantly increase
revenues and generate positive earnings again in fiscal year 2010/2011.
Equally, we are currently expecting our business performance in fiscal year
2011/2012 to be positive, with rising revenues and profit for the year.
CeoTronics is well positioned for the upturn,' said Thomas H. Günther,
Chairman of the Board of Management.
Further information:
CeoTronics AG Audio Video Data Communication
Investor Relations, Adam-Opel-Strasse 6, 63322 Rödermark, Germany
Tel.: +49 (0)6074/8751-722, Fax: +49 (0)6074/8751-720
E-mail: chairman@ceotronics.com, Internet: http://www.ceotronics.com
23.08.2010 16:48 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
---------------------------------------------------------------------------
Language: English
Company: CeoTronics AG
Adam-Opel-StraÃe 6
63322 Rödermark
Deutschland
Phone: +49 (0)6074 8751-724
Fax: +49 (0)6074 8751-720
E-mail: investor.relations@ceotronics.com
Internet: www.ceotronics.com
ISIN: DE0005407407
WKN: 540740
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Düsseldorf, Berlin, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-Adhoc: CeoTronics AG: Consolidated Annual Earnings Figures (IFRSs) as of May 31, 2010 / Figures for Q4 2009/2010
| Source: EQS Group AG