Helsinki, Finland, 2013-09-16 18:52 CEST (GLOBE NEWSWIRE) --
Ixonos Plc Stock Exchange Release 16 September 2013 at 19:45
IXONOS LOWERS ITS 2013 REVENUE AND PROFITABILITY GUIDANCE, AND OUTLINES NEW COST SAVING INITIATIVES, INCLUDING CO-OPERATION NEGOTIATIONS IN FINLAND
Ixonos forecasts its revenue for 2013 to be lower than the earlier guidance range of 40 - 50 MEUR. The company now estimates 2013 revenue to be in the range of 35 - 38 MEUR. As a result of the reduced revenue outlook, EBITDA for the full year is expected to be negative.
New guidance: Estimated turnover for 2013 to be in the range of EUR 35 - 38 million. EBITDA for the full year is expected to be negative. Previous guidance: Estimated turnover for 2013 to be in the range of EUR 40 - 50 million. EBITDA for the entire year is expected to be positive. EBIT in the second half-year is estimated to be better than in the first half.
Main reasons for the changed forecast are the following: Project with an Asian operator (based on contract signed in 2012) being delayed and becoming loss-making, strategy changes amongst some other key customers, and weakening market outlook and demand. Ixonos will book a significant loss provision in its Q3 profit and loss statement due to the Asian operator project.
Ixonos plans to implement a set of global cost saving initiatives during the second half of 2013, and as part of this commences co-operation negotiations with its personnel in Finland for reasons related to production and financial position. The objective of the co-operation negotiations and other saving measures is to align company's cost structure in line with turnover outlook and direction, and to lay basis for profitable operations during 2014. The co-operation negotiations apply to all Ixonos personnel in Finland, and the planned measures include permanent dismissals as well as temporary layoffs ("toistaiseksi voimassaoleva lomautus"), impacting a maximum of 100 people. In addition, fixed-term temporary lay-offs ("määräaikainen lomautus") regarding the whole personnel will be under the negotiation scope.
Ixonos commences its cost-saving actions with immediate effect. In parallel the company will strengthen its sales in its focus segments, and is planning to strengthen its working capital and cash position during the coming weeks.
Board of Directors
Esa Harju, President and CEO
For more information, please contact:
Esa Harju, President and CEO, tel. +358 40 844 3367, firstname.lastname@example.org
Teppo Talvinko, CFO, tel. +358 40 715 3660, email@example.com
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