Pironet NDH AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
13.11.2009
Interim report according to Article 37x of the WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Cost Cuts Take Effect at PIRONET NDH but Quarter is Weak
Cologne, 13 November 2009: Germany was not the only country to which 2009
dealt the biggest economic blow since the end of the Second World War. By
mid-year there was a dramatic decline in economic output. Since then,
things have begun to plateau, but the recession has been such that the
manufacturing industries have produced some 20% fewer goods this year than
in 2008. At the other end of the spectrum there are government programmes,
stable private consumption levels and a comparatively robust building
sector. On balance, economic experts are expecting a drop in real GDP in
the region of 5%.
During this process of decline, the ICT industry has developed better than
the economy as a whole. At the start of the year, the sector was still
optimistic that it would be able to distance itself from the general trend,
but this hope was eclipsed by reality. Nonetheless, the drop in turnover
expected by the national association BITKOM for software (-3.2%) and IT
services (-0.2%) is well below that of the economy overall. PIRONET NDH has
developed better than average for the sector. After nine months, the
company, which provides innovative solutions to create, synchronise and
distribute digital content of all kinds, and to improve internal and
external business processes (including ICT outsourcing), showed a plus in
turnover of just below 1%. This was, however, well below its target
figures, meaning that the target turnover and results were not achieved,
mainly due to a weak third quarter.
Following a first quarter which was still satisfactory, as the year
continued the targets for growth proved too ambitious in view of the
economic crisis. The extension of the sales division meant that costs had
risen too sharply. Steps were taken to deal with this in July, and an
extensive savings regime was enforced which cut costs by at least EUR 2.5
million in the second half of the year. Thus, costs were reduced from some
EUR 16.7 m (Q2) to almost EUR 15.1 m. The figures show that PIRONET NDH is
coming along well with its cost reduction programme, but the negative trend
in returns has continued, with turnover dropping 14.2% in the third quarter
compared with the same time last year, to EUR 13.9 m. The EBIT turned from
EUR 1 million to EUR -1.2 m and the EBT from EUR 1.1 m to EUR -1.4 m.
Figures in for the first nine months paint the following picture: turnover
EUR 45 m (PY: EUR 44.7 m); EBIT EUR -1.9 m (EUR 1.9 m); EBT EUR -2.5 m (EUR
2.5 m). Even though yields declined again from the second to the third
quarter, PIRONET NDH has taken a major step forward regarding one of the
main aims of the savings programme: saving liquid capital. Cash assets fell
EUR 1.4 million from EUR 14.3 m (30 June) to EUR 12.9 million, with EUR 1 m
going towards dividend payment alone. In operational terms this meant that
spending was at a level of EUR 0.4 million, after a level of EUR 4.5 m as
late as April to June. PIRONET NDH continues to work without any
liabilities to banks.
From an operational point of view, the third quarter is most likely the low
for the current reporting period. In the final quarter, stabilising liquid
capital remains top priority, but seen annually, results are expected to
show a loss.
The Management Board
About Pironet NDH
Founded in 1995, Pironet NDH offers innovative solutions for the creation,
synchronization and distribution of digital content of any kind, as well as
for the optimization of internal and external business processes. The
company's main areas of expertise include consulting and creative services,
software products and the operation of business-critical infrastructures
and applications. The technology firm listed on the stock exchange with
headquarters in Cologne employs more than 450 people in several offices in
Europe. Clients include both medium-sized companies and international
corporate groups. Further information at: http://www.pironet-ndh.com
Contact:
Investor Relations Pironet NDH
Von-der-Wettern-StraÃe 27
Tel.: +49.2203.935 30-3951 51149 Cologne
Fax: +49.2203.935 30-3959 E-Mail: ir@pironet-ndh.com
13.11.2009 Financial News 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|]]]|]
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Language: English
Company: Pironet NDH AG
Von-der-Wettern Str. 27
51149 Köln
Deutschland
Internet: www.pironet-ndh.com
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