Catalis SE / Key word(s): Quarter Results
16.11.2010 06:57
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.
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Eindhoven, November 16, 2010 - Catalis SE, the worldwide service provider
for the digital media and entertainment industry, is pleased to announce
its financial results for the third quarter and first nine months of 2010
and provides an updated outlook for the full fiscal year. Guidance is also
given for 2011. Third quarter results confirm the Group's successful return
to profitability after the past quarters of adjustment to changing market
conditions.
In the third quarter 2010, Kuju and Testronic as well as Catalis Group as a
whole, successfully returned to profitability. It is also pleasing to note
that the third quarter profits of Testronic and Catalis Group not only
greatly exceeded those of the second quarter but also exceeded those of the
third quarter in 2009. Kuju also made good progress returning to profit
after losses in the second quarter.
Although in general the market environment remains weak, Catalis Group
benefitted from the previous rigorous structural and organisational
adjustments it made to its business in the past four quarters. Customer
demand for our services has also been stronger in the third quarter partly
driven by the upcoming holiday season when a large number of home
entertainment products are traditionally brought to the market.
In the third quarter of the fiscal year 2010, revenues of Catalis Group
were down 6.5% from EUR 8.2m in 2009 to EUR 7.7m. In light of a still
difficult industry environment we have seen a significant turnaround from
the development of the previous quarters. The EBIT (operating profit)
before non-recurring costs, increased from EUR 0.3m to EUR 0.7m. The
non-recurring costs amounted to EUR 0.2m and were attributable to further
adjustments at both Kuju and Testronic. Despite the 6.5% fall in revenues
EBIT after these costs was EUR 0.5m (2009: EUR0.3m), an increase of 62.2%.
Earnings per share for the third quarter amounted to EUR 0.01 compared to
EUR 0.00 for the third quarter of 2009.
For the first nine months of 2010, revenues of Catalis Group amounted to
EUR 19.7m (2009: EUR 25.3m). This is a decrease of 22.1%. EBIT before
non-recurring costs was down to EUR -1.2m (2009: EUR 1.0m). Non-recurring
costs amounted to EUR 0.7m (2009: EUR 1.4m) resulting from structural and
organisational adjustments at Kuju and Testronic. Including these costs,
EBIT was EUR -1.9m (2009: EUR -0.4m). Including the financial result of EUR
-0.3m (2009: EUR -0.4m), pre-tax earnings amounted to EUR -2.2m (2009: EUR
-0.8m). Net income for the period amounted to EUR -2.2m (2009: EUR -0.7m).
Earnings per share for the first nine months of the fiscal year 2010
amounted to EUR -0.06 (2009: EUR -0.02).
Testronic has seen revenues for the third quarter of 2010 move up from EUR
3.6m in 2009 to EUR 4.4m. This represents an increase of 21.1% which is due
to a consolidation of the DVD testing business and the strong development
of Testronic's European business. Testronic generated an EBIT before
non-recurring costs of EUR 0.8m (2009: EUR0.5m). Non-recurring costs
amounted to EUR 0.1m (2009: EUR 0.0m). EBIT after such costs was EUR 0.7m
(2009: EUR 0.5m). For the first nine months of 2010, revenues at Testronic
amounted to EUR 9.9m (2009: EUR 10.1m), a decrease of 2.1% from the
previous year. Testronic's EBIT before non-recurring costs for the first
nine months of 2010, amounted to EUR 0.6m (2009: EUR 0.9m). Non-recurring
costs amounted to EUR 0.1m (2009: EUR 0.8m). EBIT after such costs was EUR
0.5m (2009: EUR 0.1m).
In the third quarter of 2010, Kuju generated revenues of EUR 3.3m (2009:
EUR 4.6m), representing a decrease of 28.5%. EBIT before non-recurring
costs for the period showed a slight profit and amounted to EUR 0.1m (2009:
EUR 0.1m). Despite the large fall in revenues (which were in line with the
general market declines) and including non-recurring costs of EUR 0.1m,
EBIT was just positive at EUR 0.0m (2009: EUR 0.1m). In the first nine
months of 2010, Kuju generated revenues of EUR 9.8m (2009: EUR 15.2m),
representing a decrease of 35.5%. Kuju's EBIT before non-recurring costs
for the first nine months of the fiscal year 2010 amounted to EUR -1.1m
(2009: EUR 1.0m). Including non-recurring costs of EUR 0.6m (2009: EUR
0.6m), EBIT was EUR -1.7m (2009: EUR 0.4m).
As recently announced, Doublesix Digital Publishing (DDP) has been
established as a separate entity alongside sister company, Kuju
Entertainment, as the group looks to build on its successful self-published
digital games strategy. As DDP was officially constituted in late August
2010, it will be reported as a separate division from the current fourth
quarter onwards. On a pro-forma basis, it was profitable in the first nine
months of 2010.
Outlook
In the fourth quarter of 2010, we expect the business of Testronic to slow
as the seasonal holiday rush subsides. However, we expect Testronic to
improve against the fourth quarter of 2009 and to be profitable in that
quarter as well. At Kuju, we also expect to retain profitability on the
third quarter level and to end the second half of the year with a better
than break-even result. DDP will concentrate on the further build-up and
expansion of its pure self-publishing business where the division is
currently working on a number of promising own and co-funded titles and is
in discussions about several new compelling licences for 2011.
Following from the above, we expect to retain profitability in the fourth
quarter also on the Group level further indicating the successful
turnaround of our Group in the second half of this year. Markets remain
somewhat unpredictable however, based on the results of the first nine
months of 2010 and our expectations for the fourth quarter we expect full
fiscal year 2010 revenues of approximately EUR 26.0m and an EBIT of EUR
-1.7m. In 2011, we currently expect revenues to grow to approximately EUR
29.0m and an EBIT of EUR 1.5m.
For the full 2010 third quarter and nine months report and further
information on Catalis SE and its wholly owned subsidiaries, Testronic,
Kuju and DDP, please refer to www.catalisgroup.com, www.kuju.com,
www.doublesixgames.com and www.testroniclabs.com. For further questions
please contact:
Investor Relations Catalis SE
Investor Relations Team
t: +49 89 24 41 18 - 413
f: +49 89 24 41 18 - 499
info@catalisgroup.com
_______________________________________________________________________
About Catalis SE:
Catalis is a worldwide leading outsourcing provider focusing on high-end
technical services relating to the creation of digital content for the
film, video games and software industries. Catalis offers both testing and
development services. It operates through its wholly owned subsidiaries
Testronic, Kuju and DDP from ten locations throughout the US, the UK,
Poland, Belgium and the Czech Republic.
Forward-looking statements
This press release contains forward-looking statements. These statements
are based on current expectations, estimates and projections of Catalis SE
management and information currently available to the company. The
statements involve certain risks and uncertainties that are difficult to
predict and therefore Catalis SE does not guarantee that its expectations
will be realized. Furthermore, Catalis SE has no obligation to update the
statements contained in this press release.
16.11.2010 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Catalis SE
Geldropseweg 26-28
5611 SJ Eindhoven
Niederlande
Phone: +31 (0)40 2135930
Fax: +31 (0)40 2135604
E-mail: info@catalisgroup.com
Internet: www.catalisgroup.com
ISIN: NL0000233625
WKN: 927093
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in München, Düsseldorf, Berlin, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Catalis SE announces results for the third quarter and first nine months of 2010. Third quarter figures show successful return to profitability
| Source: EQS Group AG