Nørresundby, Denmark, 21 November 2012, 2012-11-22 10:33 CET (GLOBE NEWSWIRE) -- The Supervisory Board of RTX A/S has today considered and adopted the Group’s annual report and interim report for the fourth quarter of the financial year 2011/12 (covering the period 1 July 2012 to 30 September 2012).

Summary of the annual report of the RTX Group for 2011/12

• Group revenue amounts to DKK 191.3 million for the financial year 2011/12 compared to DKK 204.9 million for the financial year 2010/11. Revenue thus decreased by 6.6%.
• The gross margin improved, from 57.9% in the last financial year to 59.9% in 2011/12.
• Operating profit (EBIT) amounts to DKK 2.5 million, or 1.3%, compared to DKK 9.0 million, or 4.4% in the last financial year.
• The capacity costs are on par with the previous year and contain significant investments in new technologies and new product platforms.
• The operating cash flow amounts to DKK -8.2 million compared to DKK 17.0 million in the previous financial year. The net cash flow was heavily impacted by an increase in the working capital. The launch of a new Skype phone and the launch of the first handset for Alcatel Lucent were in 2011/12 the main drivers behind an increase in the working capital.
• The Group’s total cash flow in 2011/12 was impacted by the continued investments in own development, even though RTX received final funding of DKK 5.0 million. The net cash flow for the year was consequently negative with DKK 18.8 million compared to a positive cash flow of DKK 1.0 milllion for the previous financial year.
• The Group’s equity amounted to DKK 156.3 million on 30 September 2012, which is an increase of DKK 4.4 million compared to the financial year 2010/11.
• The profit after tax amounts to DKK 1.9 million compared to DKK 3.9 million in the previous financial year.
• At the beginning of the financial year 2012/13 RTX stands with an almost complete renewal of the product range both within the telephony field and within a new technology for low power modules for wireless communications solutions. The new products and technologies give RTX good opportunities for growth. The sales and distribution platform has been strengthened and enlarged globally over the past year in both business units, enabling RTX to better capitalize on the investments made in the product portfolio and new technologies.
• The Supervisory Board proposes that the shareholders at the Annual General Meeting in January 2013 authorize the Company to acquire treasury shares at a total nominal value of up to 10% of the Company’s share capital.

Prospects for the financial year 2012/13

The beginning of the financial year 2012/13 is connected with somewhat uncertainty about the global economic outlook. Both business units in RTX are dependent on the general global economy and the customers’ will to invest, either in new technologies and products as what concerns Design Services, or in new Enterprise communications solutions as what concerns Enterprise & VoIP. RTX has, however, during the past years invested significantly in new technologies and product platforms, and has also focused on expanding its sales platform. The Management expects that these investments will compensate for the general economic uncertainty which impacts the world economy, thus RTX will generate results slightly above the level for the financial year 2011/12. It is expected that Design Services will be in line with the result for the financial year 2011/12, while the result for Enteprise & VoIP will be a bit better than the result for 2011/12.

The Management expects to achieve Group revenue in the range of DKK 200-210 million, an operating profit (EBIT) in the range of DKK 4-6 million and an EBITDA in the range of DKK 12-14 million. The Management expects to capitalize approx. DKK 2-3 million in the financial year 2012/13, in connection with the completion of the Enterprise platform. The investments in own development projects are thus expected to decrease significantly compared to 2011/12. The Group expects to achieve a positive cash flow from operations in 2012/13.

Summary of the interim report of the RTX Group for the fourth quarter of 2011/12

• Group revenue amounts to DKK 47.0 million for the fourth quarter of 2011/12 compared to DKK 63.2 million in the same period last year. The decrease in revenue of 25.6% is due to a minor decline in Design Services (former RTX Technology), where revenue declined from DKK 21.4 milllion in the fourth quarter of 2010/11 to DKK 20.7 million in the fourth quarter of 2011/12, equal to a decrease in revenue of 3.3%. Revenue in Enterprise & VoIP (former RTX Products) amounts for the fourth quarter of 2011/12 to DKK 25.8 million compared to DKK 40.6 million in the same period last year, equal to a decrease in revenue of 36.5%.
• The Group’s gross margin improved to 56.7% for the fourth quarter of 2011/12 compared to a gross margin of 53.6% for the same period last year.
• Operating profit/loss (EBIT) amounts to DKK -1.7 million for the fourth quarter of 2011/12 compared to DKK 3.7 million for the same period last year.
• Profit/loss after tax amounts to DKK -2.3 million compared to DKK 0.8 million for the same period last year.
• The Group’s total cash flow amounts to DKK -8.3 million for the fourth quarter of 2011/12 compared to DKK -7.6 million in the same period last year. 

Revenue and profit for the fourth quarter of 2011/12 has developed in line with Management’s expectations, as announced in the interim report for the third quarter of 2011/12.

Jesper Mailind has resigned from his position as President & CEO in RTX A/S to become President & CEO in the consulting engineering company ALECTIA A/S. The Supervisory Board has initiated a search for a suitable replacement. Jesper Mailind has 6 months’ notice, and he will leave RTX as soon as a replacement can take over his position, however, no later than by the end of April 2013.

The Supervisory Board will at the coming General Assembly recommend the shareholders that Jesper Mailind is elected member of the Supervisory Board in RTX A/S.

Yours sincerely,

RTX A/S

Jens Alder                                                          Jesper Mailind

Chairman                                                            President & CEO

Questions and further information:

Jesper Mailind, President & CEO, tel. +45 96 32 23 00

At 9 am on 22 November 2012 RTX A/S will hold a conference call. At the meeting President & CEO Jesper Mailind and CFO Jacob Vittrup will comment on the result for the fourth quarter and the annual report for 2011/12, and will answer questions, if any. The password for the conference call can be obtained by contacting ir@rtx.dk.