Corporate | 9 November 2009 07:30
InTiCa Systems AG / Quarter Results
09.11.2009
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Successful performance by Automotive Technology and Industrial Electronics
stabilize sales and earnings
Cost-cutting has greatly improved earnings position
Pre-tax earnings at year-end 2009 likely to be slightly lower than at
end-September
Sales expected to grow by around 20% yoy in 2010
Passau, November 04, 2009 - InTiCa Systems AG (ISIN DE0005874846, Prime
Standard, Ticker: IS7) moved back into profit in the third quarter of 2009.
Along with measures introduced in 2008 to cut costs and raise efficiency
that were fully effective in the third quarter, the new Automotive
Technology and Industrial Electronics segments played a significant part in
the successful turnaround.
Sales continue to stabilize
Sales contracted by 21% to EUR 17.6 million in the reporting period (Q3
2008: EUR 22.3 million), chiefly due to the sharp drop in business volume
in the Communication Technology segment as a result of economic and
competitive factors. In this segment, sales were EUR 11.2 million, down
roughly 35% year-on-year (Q3 2008: EUR 17.3 million). Although strong sales
growth was reported by Automotive Technology and Industrial Electronics
segments despite the tough economic conditions (Automotive Technology EUR
5.5 million vs. EUR 4.6 million in 2008; Industrial Electronics EUR 0.9
million vs. EUR 0.4 million), this was not sufficient to completely offset
the sales shortfall in the Communication Technology segment.
Earnings position improved significantly year-on-year
The successful cost-cutting measures were reflected in the year-on-year
reduction in the material cost ratio (from 71% to 66%) and personnel
expense ratio (from 22% to 20%).
Group EBITDA rose considerably year-on-year to EUR 2.16 million (2008: EUR
1.40 million). EUR 1.0 million and thus around half of this was generated
in the third quarter (Q3 2008: EUR 0.3 million).
Despite the sharp drop in sales, EBIT improved by EUR 0.76 million.
Nevertheless, at the end of the first nine months EBIT was still negative
at minus EUR 0.45 million (2008: minus EUR 1.21 million). The Automotive
Technology segment and the Industrial Electronics segment, which is
included in 'Others', both broke even for the first time in the second
quarter of 2009 and reported a further significant year-on-year rise in
sales and earnings in the third quarter. EBIT was EUR 0.3 million in the
Automotive Technology segment and EUR 0.1 million in the Industrial
Electronics segment. Both thus reported clearly positive EBIT for the first
nine months (2008: minus EUR 0.1 million in each segment).
Financial expense was EUR 0.4 million in the reporting period, compared
with financial income of EUR 0.2 million. At Group level, InTiCa Systems
reported an after-tax loss of EUR 0.8 million (2008: after-tax loss of EUR
1.5 million). Earnings per share were minus EUR 0.18 (2008: minus EUR
0.36).
Order backlog requires higher working capital
During the first nine months of 2009 there was an increase in receivables
and inventories. At the same time, trade payables decreased. The increase
in receivables was chiefly connected with the expansion of the customer
base in the automotive industry and the longer payment terms customary in
this sector. The higher inventories were principally due to contractually
agreed stocks of goods for customers with take-off obligations.
Equity ratio increased after nine months
Equity remained stable and the equity ratio increased from 53% to around
56% thanks to the lower proportion of short-term debt.
Cash-flow still negative after nine months
The operating cash flow was negative in the first nine months, principally
due to prefinancing for which payments have not yet been received.
Outlook
In view of the earnings turnaround in the third quarter, in its outlook for
the remainder of 2009 the Board of Directors assumes that the company will
also report a satisfactory performance in the fourth quarter. For the full
year the Board of Directors currently anticipates that sales will stabilize
at approx. EUR 24 million and pre-tax earnings will be slightly lower than
at the end of the first nine months. InTiCa Systems' technological
leadership in inductive components, passive analogue switching technology
and mechatronic assemblies, especially for use in systems to reduce CO2
emissions, is enabling it to grow against the sector trend. The success
achieved in adjusting costs and further product diversification into new
areas make the Board of Directors and staff at InTiCa Systems confident
that they can successfully master the upcoming business challenges, even in
uncertain and volatile market conditions.
The Board of Directors expects sales to grow by around 20% year-on-year in
2010, driven by the Automotive Technology and Industrial Electronics
segments.
The complete interim report for the first nine months of 2009 is available
under www.intica-systems in the Investor Relations section.
InTiCa Systems AG
The Board of Directors
CONTACT Walter Brückl | CEO
PHONE +49 (0) 851 - 966 92 - 0
FAX +49 (0) 851 - 966 92 - 15
MAIL investor.relations@intica-systems.de
09.11.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: InTiCa Systems AG
Spitalhofstraße 94
94032 Passau
Deutschland
Phone: 0851 / 96692 0
Fax: 0851 / 96692 15
E-mail: investor.relations@intica-systems.de
Internet: www.intica-systems.de
ISIN: DE0005874846
WKN: 587484
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Hamburg, Stuttgart
End of News DGAP News-Service
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