Corporate | 22 August 2007 07:00
InTiCom Systems Aktiengesellschaft / Half Year Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- • Net income for the second quarter of 2007 almost doubled over previous year • Earnings per share rise by 45 % to 29 cents per share in the first half-year • Second main pillar automotive established in record time Passau, August 22, 2007 –InTiCom Systems AG (ISIN DE0005874846, Prime Standard) achieved a disproportionately high profit improvement in this year’s second quarter and almost doubled the net income for the quarter compared to the prior-year quarter. By half-year comparison, the sales increase by almost six percent results in a 45 percent improvement of the earnings per share, to 29 cents; this already amounts to just under 80 percent of the entire earnings per share for the fiscal year 2006. InTiCom Systems generated sales of EUR 10.7 million in the second quarter of 2007 after EUR 11.0 million in this fiscal year’s first three months; this means a sales increase by roughly 6 % to EUR 21.8 million in the first half-year 2007 (PY EUR 20.5 million). Main contributors to sales are still DSL splitters for the subscriber and service provider sides, with the substantial increase being generated abroad once again. In the segment automotive electronics, sales of approximately EUR 3.0 million were achieved, showing a fast growing tendency. The cost of materials ratio in the second quarter of 2007, at 77.7 % (PY 81.4 %) significantly lower than in the prior-year period of comparison despite the continuing expansion of the serial production of automotive electronics in Czechia, gives proof of the Company’s consistent profit orientation and leads to a decreasing cost of materials ratio of 76.2 % on 6-month basis, compared to 80.2 % in the previous year’s period. The disproportionately high improvement of the earnings before taxes (EBT) by roughly 53 % to EUR 0.8 million in the second quarter of 2007 (PY EUR 0.5 million) results from a gross margin which still came to more than 7 % despite the ongoing capacity expansion compared to the previous year’s period. The net income for the quarter of EUR 0.6 million (PY EUR 0.3 million) exceeds the prior-year amount by roughly 100 %, benefiting from a lower effective tax rate. InTiCom Systems thus doubles its earnings per share in the second quarter of 2007 to EUR 0.15 (PY EUR 0.07). The 6-month earnings before taxes (EBT) rise by about 24 % to EUR 1.8 million (PY EUR 1.4 million). Due to the lower effective tax rate of about 30 %, the resulting net income for the first half-year of EUR 1.2 million is up by almost 42 % (PY EUR 0.9 million). In the first half-year 2007, InTiCom Systems thus achieves earnings per share of EUR 0.29 (PY EUR 0.20); this already amounts to almost 80 % of the earnings per share of EUR 0.37 achieved for the total fiscal year 2006. The capital expenditures of just under EUR 2.1 million in the first half-year 2007 (PY EUR 4.1 million) supported the further setup of the virtually fully automatic serial production for automotive electronics and the new VDSL technology at the up-to-date production location in the Czech Republic, as well as doubling the existing production capacity in order to complete the contractually secured volume orders received from several system suppliers in Asia, the U.S. and Europe for keyless go and tire pressure monitoring systems, anti-theft systems, and filter applications with delivery reliability. The Group’s liquidity came to EUR 15.5 million as of June 30, 2007 (PY EUR 16.0 million), as opposed to EUR 13.8 million as of balance sheet date 2006. The increase in liquid funds principally is a result of the cash inflow from the operating activities, a stringent working capital management, and net borrowing of a comparable dimension (approx. EUR 2.0 million), to be used for financing the Company’s future growth. As of June 30, 2007, the order backlog of InTiCom Systems amounted to roughly EUR 13.8 million (PY EUR 12.6 million), keeping up the high level. Considering the net income for the fiscal year 2006, the resulting backlog range remains constant at roughly four months. Orders from the automobile industry for the next four months are included here. The upgrade of the German DSL network towards higher transmission rates (VDSL) did not happen in 2006 for the most part; InTiCom Systems therefore missed out on considerable sales potential in 2006. However, InTiCom Systems will benefit from the development of new DSL and VDSL markets in more and more countries even after 2007 in the shape of significant sales and profit improvements. First profit contributions from the automotive segment in the current fiscal year signify the still rising importance of the automotive sector as the second main pillar of InTiCom Systems. Doubling the production space and the corresponding capacity because of the steadily increasing use to capacity of the newly erected production location Prachatice (Czech Republic) will allow once again, responding to the demand for components of flawless quality and absolute delivery reliability. In the year 2007, the full-year effect of the automotive segment will come to bear for the first time – and it will become the essential driving force behind the future development. In this segment, InTiCom Systems expects to generate sales of between EUR 50 and 60 million in the next 5 to 7 years. InTiCom Systems AG The Board of Directors From August 22, 2007, further details of the 6-month consolidated financial statements 2007 and the complete interim report on the first half-year 2007 can also be found at: www.inticom-systems.de Investor Relations Publications 2007 quarterly reports If you have questions, please contact: Maria Grohs Board of Directors Phone: +49 - (0)851 - 966 92 - 0 Fax: +49 - (0)851 - 966 92 – 15 E-mail: m.grohs@inticom-systems.de Günther Kneidinger ppa. Manager Automotive Telefon: +49 - (0)851 - 966 92 - 173 Fax: +49 - (0)851 - 966 92 – 16 E-Mail: g.kneidinger@inticom-systems.de 22.08.2007 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: InTiCom Systems Aktiengesellschaft Spitalhofstraße 94 94032 Passau Deutschland Phone: +49 (0)851 9 66 92-0 Fax: +49 (0)851 9 66 92-15 E-mail: info@InTiCom-Systems.de Internet: www.InTiCom-Systems.de ISIN: DE0005874846 WKN: 587484 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------