Ad-hoc | 28 October 2004 13:21

init reports positive result in third quarter

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– init reports positive result in third quarter According to preliminary figures, init innovation in traffic systems AG managed a trend reversal in the third quarter of 2004, reporting a considerable gain in both its sales and operating result. Thus, the sales revenue of the company between July and September saw a substantial rise from 5.3 million Euro in the previous quarter to 8.1 million Euro. Compared with the previous year, it increased by in excess of 30 per cent (Q3 2003: 6.2 million Euro). Furthermore, the operating result (EBIT) evidenced initial effects due to the rationalization of internal structures and the closure of branch offices in both Berlin and Essen. Thus, the third quarter closed with positive earnings before interest and taxes of 0.9 million Euro, after the negative result in the previous year of 0.4 million Euro. The quarterly net profit totaled 0.7 million Euro (prior-year deficit: -0.3 million Euro), with net earnings per share amounting to 0.07 Euro (2003: -0.03 Euro). On the whole, the nine-monthly report will still be burdened by the first six months of the year and the recession on the domestic German market. Thus, for the first nine months of 2004, the company recorded an EBIT of -3.6 million Euro (2003: -0.5 million Euro), with sales amounting to 17.0 million Euro (2003: 18.5 million Euro). The consolidated deficit totaled -2.3 million Euro, compared with -0.3 million Euro in the same period of the previous year. The internationalization of init AG continues to develop very promising. In a quarterly comparison, init managed to more than double its business in Europe in the last two years, while sales in the USA even increased eightfold as against 2001. However, the related built-up of workforce over the past two years must be seen alongside the continuously disappointing trend in Germany. Therefore, in September, the Managing Board decided on further rationalization measures, resulting in a gradual reduction of staffing levels in Germany, which had been raised in 2002/2003 in view of future growth, to the level of 2001. As a result of these very savings, init anticipates a positive effect on its operating result exceeding 2 million Euro in 2005. Due to the characteristics of its project business, init as a rule recognizes around half of its annual sales not before the last quarter. Thus, the managing board expects in the last quarter a considerable gain in both its sales and operating result. The full nine-monthly report of init will be published on November 11. For further information please contact Ms. Weiss +49 721 6100-102/ Mail ir@initag.de or Mr. Brunner +49 89 13959633. end of ad-hoc-announcement (c)DGAP 28.10.2004 ——————————————————————————– WKN: 575980; ISIN: DE0005759807; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 281321 Okt 04