The financial year 2009/2010 was a year with substantial progress for RTX
Telecom. The Group enjoyed growth in top line and operating profit (EBIT), and
generated for the first time since 2006/07 a positive cash flow.
Today, the Supervisory Board has reviewed and approved the annual report of RTX
Telecom for the financial year 2009/10 for the period 1 October 2009 to 30
September 2010.
The financial year 2009/2010 was a year with substantial progress for RTX
Telecom, where the Group enjoyed growth in top line and operating profit
(EBIT), and generated, for the first time since 2006/07, a positive cash flow.
The key contributors to this positive development were a significant growth in
the business unit RTX Products and the results of the substantial
restructuring, which took place in the previous financial year 2008/2009, thus
the Group reduced break-even revenue considerably throughout the year.
RTX Telecom has decided to discontinue its activities within the business unit
RTX Network Systems, as the prospects of establishing an attractive and
profitable business are believed not to be present. The operating profit (EBIT)
for the continued business units RTX Technology and RTX Products, and the RTX
Telecom Group as a whole, is quite positive when eliminating the effects of the
discontinued business unit RTX Network Systems.
Summary of the annual report
• The Group achieved revenue of DKK 220.7 million from continuing operations in
the financial year 2009/2010 compared to revenue of DKK 191.6 million in the
financial year 2008/2009. Revenue thus increased by 15.2%.
• The gross profit was improved by DKK 13.6 million in 2009/10 compared to the
financial year 2008/09, whereas the gross margin declined from 52.7% in 2008/09
to 52.0% in 2009/10 as a result of a changed product mix.
• The operating profit (EBIT) from the continuing operations amounts to DKK
13.4 million compared to a loss of DKK 36.3 million in the financial year
2008/09.
• The capacity costs were reduced by 26.2% and amount to DKK 101.3 million
compared to DKK 137.3 million last year.
• The cash flow amounts to DKK 27.9 million in 2009/10 compared to DKK -33.7
million in 2008/09.
• The result from the discontinuing operations is increased from DKK -12.3
million in 2008/09 to DKK -29.0 million in 2009/10. The result from the
discontinuing operations is affected by restructuring costs of DKK 22.4
million.
• The Group's equity amounted to DKK 145.2 million at 30 September 2010, which
is a decline of DKK 14.9 million compared to the financial year 2008/09.
The operating profit (EBIT) from the continuing and the discontinuing
activities amounted to a loss of DKK 18.0 million (cf. note 3 in the annual
report 2009/10). The result includes non-recurring expenses of DKK 22.4 million
for restructuring of the discontinued business RTX Network Systems. If the
operating profit (EBIT) from the continuing and discontinuing operations is
adjusted with the restructuring costs related to the discontinued operations,
the Group profit was DKK 4.4 million, of which DKK 2.8 million are capitalized
development costs made in the fourth quarter of the financial year 2009/10. It
is thus the Management's opinion that the Group result is in accordance with
the published expectations (cf. Stock Exchange Announcement no. 10/2010 of 26
August 2010), in which the restructuring costs for the discontinued operations
were not included in the full-year expectations.
Prospects for the financial year 2010/11
In the financial year 2009/10 RTX Telecom's Management has made an adjustment
of the Group's strategic business areas, and has decided to stop the activities
of the business unit RTX Network Systems. This means that the Group will have
to dismiss a small number of employees in 2010/11 and to close down the Group's
activities and presence in Latin America.
The activities for the business unit RTX Technology is expected to be on level
with 2009/10. The Group will in the coming financial year continue its
development of a new product platform, which is expected to lead to increased
revenue for the business unit RTX Products towards the end of the financial
year 2010/11. As a result of the significant investment in product development
in RTX Products the Management expects for the financial year 2010/11 that the
operating profit (EBIT) will be slightly lower than in 2009/10. The Management
will continue focusing on a stable Group cash flow, and will ensure business
processes to support this objective.
For the financial year 2010/11 the Management expects that the RTX Telecom
Group will achieve a positive development in revenue to a level between DKK
230-240 million, with the improvement mainly related to the second half of the
financial year. The operating profit (EBIT) from the continuing operations is
expected to be DKK 8-12 million.
In general
The Company's annual report for 2009/10 will be sent to NASDAQ OMX Copenhagen
A/S in continuation of this announcement. Please see annual report for more
details. The annual report will be available at RTX Telecom's website
www.rtx.dk.
Meeting for financial analysts and the press
At 9am on 2 December 2010, Danske Market Equities will hold a Small Cap Seminar
at Hotel Mariott Copenhagen, Kalvebod Brygge 5, Copenhagen V. At the meeting
RTX Telecom's Management will comment on the annual report for 2009/10 for the
Group and the Management's expectations for the financial year 2010/11.
Annual general meeting
The Company's annual general meeting will be held on Friday 28 January 2011 at
3pm at RTX Telecom, Strømmen 6, DK-9400 Nørresundby.
Yours sincerely,
RTX Telecom A/S
Jens Alder
Chairman
Jesper Mailind
President & CEO
Questions and further information:
Jesper Mailind, President & CEO, tel. +45 96 32 23 00
Please visit RTX Telecom's website at: www.rtx.dk
This announcement includes statements about the future. These statements
include expectations or prognoses for events, such as introduction of new
products, product approvals and financial results. These statements might be
influenced by risks, uncertainty factors and inaccurate assumptions, and
consequently the actual development might be different from the expectations
indicated. These risk and uncertainty factors include - but are not limited to
include - a number of factors such as general business and financial
conditions, dependence on co-operators, delivery time of components as well as
exchange rate and interest rate fluctuations, etc. Risks and uncertainty
factors are further described in the annual report for 2009/10. RTX Telecom is
not obliged to update the statements about the future or to adjust such
statements to actual results unless required by law.
This announcement has been prepared in a Danish-language and an
English-language version. The English-language version is a translation of the
Danish-language version. In the event of any inconsistency between the Danish
version and this announcement, the Danish version shall prevail.
