MALMO, Sweden, Feb. 12, 2002 (PRIMEZONE) -- Year-End Report for AudioDev AB (PLC) January - 31 December 2001:
(Figures within parenthesis refer to the period January-December 2000)
-- Net sales amounted to SEK 215 (237) million. AudioDev's sales
continue to grow strongly within the DVD segment and sales amounted
to SEK 180 (104) million.
-- Operating profit amounted to SEK 40 (60) million.
-- Cash flow from current operations amounted to SEK 19 (-8)
million.
-- The volume of orders amounted to SEK 8 (45) million as of December 31,
2001. This volume is a result of weak demand in the branch.
Jan-Dec 2001 Jan-Dec 2000 Change %
Net sales,
SEK millions 215.1 237.1 -9
Operating income,
SEK millions 39.7 60.0 -34
- as % of net sales
18.5 25.3 --
Profit for period,
SEK millions 32.1 46.0 -30
- as % of net sales
14.9 19.4 --
Volume of orders,
SEK millions 7.7 44.8 -83
The AudioDev Group
AudioDev is an international market leader in the field of testing equipment for optic media such as CDs and DVDs. With a market share of 35 percent (according to our own estimates) and a unique product range in a key growth area, AudioDev holds the strongest position in its segment of a rapidly expanding market. The base of the Company's operations is the market for optic media as a whole. The actors in this market are the content suppliers (film companies, record companies, computer gaming companies, etc.) who use CDs and DVDs to distribute their products, and the manufacturers of optic media and players for these media types. AudioDev is a supplier of production equipment for the optic media market and a leading actor in the testing equipment niche.
The Company's Market Position
Since its start in 1987, AudioDev has developed the de facto standards for how optic media are tested. By establishing de facto standards for how each new format is to be quality tested, we became the industry's quality control yardstick. The Parent Company has its headquarters in Malmo, where our European operations are based. Subsidiaries in the U.S.A. and Hong Kong are responsible for the American and Asian markets. In addition, AudioDev has built a network of agents in every land and region of noticeable importance. None of the Company's competitors has the same global presence. Our customers include Technicolor, Ritek Global Media, Microsoft, EMI, Samsung, Warner, Sonopress, Pioneer, Cinram, Panasonic, MBI, DAI Nippon Printing, and CMC.
Four Factors that Drive the Demand for Testing Equipment
1. Demand for optic media is increasing. Music is bought on CD, information is stored on CD-R, we watch films on DVD, and so on
2. New optic formats are introduced at an increasing rate. Recordableand re-recordable DVD-formats, DVD-ROM, and DVD-Audio (audio discswith higher capacity than CD) are a few examples. DVR is the nextgeneration of DVD with greater capacity and better image quality.
3. Complexity is increasing. For each new format, the demand for moreadvanced analysers increases.
4. Development of existing formats. Product development of anestablished format places new demands on quality testing.
Irregular Growth in the Market for Production Equipment
Demand for testing equipment is dependent upon the demand for opticmedia, but displays another pattern. When an optic media, such asrecordable DVDs for example, gains acceptance in the consumer chain, a large demand for testing equipment arises among the manufacturers. These have a tendency to over invest, which regularly leads to surplus capacity for a certain period. Then comes a new period of major investment, followed by a new period of stagnation - repeating until growth declines and the media enters a mature phase, where the demand for testing equipment is primarily comprised of re-investments and service and the like.
Strong Development in underlying markets
Even if the demand for testing equipment, as mentioned earlier, does not follow the optic media market, it is important to study the development of these underlying markets in order to gain a picture of the need for investment in the industry. During 2001, all these markets have experienced positive and steady development. For DVDs and CD-Rs, growth has even been higher than expected. The only media that is decreasing is CD.
On a global scale, the number of DVD discs sold during 2001 equaled SEK 1.2 billion (650 million), according to the British research firm Understanding & Solutions (published during the second half of 2001). Growth is driven by the USA, which with its 563 million DVD discs (294) sold was responsible for nearly half the world's market. In total, the sales of DVD discs in various formats are expected to increase by 70 percent during 2002.
This information was brought to you by Waymakerhttp://www.waymaker.net
The full text report with financial tables can be found at the following URLs:
www.waymaker.net/bitonline/2002/02/12/20020212BIT01160/bit0003.doc
www.waymaker.net/bitonline/2002/02/12/20020212BIT01160/bit0003.pdf
www.waymaker.net/bitonline/2002/02/12/20020212BIT01160/bit0003.xls