Corporate | 23 February 2016 10:13
Focus: Gigaset’s Executive Board presents three-point plan
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DGAP-News: Gigaset AG / Key word(s): Preliminary Results
Focus: Gigaset’s Executive Board presents three-point plan
After around eight weeks in office, the new Gigaset AG CEO Klaus Weßing and CFO Hans-Henning Doerr, who was also newly appointed to the position just before Christmas, have completed the first phase of the systematic analysis and corporate planning. The new management team is now presenting a three-point plan outlining the cornerstones of the future alignment of the communications technology specialist. “We want to give Gigaset clear prospects,” states Klaus Weßing, CEO of Gigaset AG. “We know the challenges, but in the past weeks have identified much that we can build on.” Our three-point plan summarizes the measures which will allow Gigaset to enjoy healthy growth again over the long term.” The company is relying on
Strengthening core business
In the Business Customers segment, Gigaset is likewise relying on IP technology and the success of its premium business phone Maxwell 10. Expansion of the Maxwell product line and a broader range of telecommunications systems for enterprises are intended to further boost the company’s revenue, which has been growing recently at a double-digit rate. In the Home Networks segments, the number of customers is to be grown mainly through an intensified and focused marketing strategy. Home Networks offers security solutions for the home that can be customized quickly and easily. Apart from high-quality sensors, cameras and sirens from Gigaset, third-party devices and lights can also be controlled from the smartphone using the solutions – even from on the road.
Adjusting production and administrative capacities
Improving transparency
Following a good fourth quarter and anticipated consolidate revenue of EUR305 million, Gigaset AG expects a positive operating result before depreciation and amortization, special effects and expenses for restructuring of EUR10 to EUR13 million for fiscal 2015. Due to the restructuring provision that has to be set up and revaluation of the sale of the trademark and domain rights that was carried in the report for Q3 2015, the company expects negative income for the year before taxes in the low double-digit million range. At the closing date the company has liquidity of around EUR41 million. Goldin Brand Ltd. has not yet exercised its rights from the agreement to acquire trademark and domain rights that was concluded in 2015 and has not yet paid the purchase price. The trademark and domain rights are the property of Gigaset Communications GmbH, a wholly owned subsidiary of Gigaset AG, until payment of the purchase price. Since the rights have not yet been transferred to the seller, Gigaset is not reporting any income from the transaction for the fiscal year 2015. However, the Gigaset Group is still entitled to use the trademark without restriction in its core business of telephony and the smart home even after the possible transfer of the rights. The newly established smartphone business is driven by Gigaset Mobile, in which Gigaset AG has an indirect 15-percent stake. CEO Klaus Weßing states in this regard: “The Gigaset ME is a competitive smartphone, praised by the trade press, which meets the generally high standard of Gigaset products in terms of quality and technology. We continue to see major growth potential for our associated company Gigaset Mobile, if production and marketing pick up speed. We are working on that together with our Chinese joint venture partner and the majority shareholder of Gigaset Mobile, Goldin Fund Pte. Ltd.” Chief Financial Officer Hans-Henning Doerr adds: “Potential income from Gigaset Mobile or sales of the Gigaset trademark to Goldin Brand Ltd. are not currently part of our planning.” At the moment and until further notice, Gigaset Mobile will pay a license fee of three percent of the revenue from each smartphone sold. The aim of the Executive Board is to further elaborate the three-point plan before the presentation of the annual results. CEO Klaus Weßing: “We have a lot of work ahead of us. However, the good talks, initial partial successes, coherent planning and a good operating result make us very optimistic that we will achieve our objectives together with our employees.” Gigaset AG will present its audited Annual Report for fiscal 2015 on April 15, 2016.
Gigaset AG
, Munich, is an internationally operating company in the area of communications technology. The company is Europe’s market leader in DECT telephones. The premium supplier is likewise the leader worldwide with around 1,250 employees and sales activities in around 70 countries. Under the name Gigaset pro, the company continues to develop and market innovative business telephony solutions for small and medium-sized enterprises. The company also operates in the smart home arena. Cutting-edge, cloud-based products and solutions for the smart home are developed and marketed under the name Gigaset elements. In addition, together with the Singapore-based Goldin Fund Pte. Ltd., the company runs Gigaset Mobile, which operates in the mobile phone, smartphone, and accessory segments.
2016-02-23 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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| Language: | English | |
| Company: | Gigaset AG | |
| Seidlstraße 23 | ||
| 80335 München | ||
| Germany | ||
| Phone: | +89444456866 | |
| Fax: | +89444456930 | |
| E-mail: | info@gigaset.com | |
| Internet: | www.gigaset.com | |
| ISIN: | DE0005156004 | |
| WKN: | 515600 | |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart | |
| End of News | DGAP News Service |