Ad-hoc | 28 November 2001 08:01

TePla AG english

Tepla AG: Revenues more than doubled/ US market has negative impact on result Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Tepla AG: Revenues more than double previous year’s figure / Downturn in US market has negative impact on result / Net loss for the year higher than expected Feldkirchen, nr. Munich, 28.11.2001: In the first nine months of the current business year, Tepla AG (securities code 746100), a producer of plasma systems for the semiconductor industry and industrial surface treatments, more than doubled its nine-month sales total from EUR 8.1 million in 2000 to EUR 16.9 million in 2001. Despite the crisis afflicting the semiconductor market, proforma sales (excluding MetroLine Industries Inc., the US company acquired in October 2000) rose by 22 percent to EUR 9.9 million. Sales fell well short of expectations on account of the major setback suffered by the market in the USA. Several American consumer goods manufacturers cancelled or postponed their orders at short notice. This drop in demand adversely attected the otherwise positive impacts resulting of restructuring of the US business and the increase of the gross margin of the Group to 36 percent. As a consequence, the operating result (EBIT) was worse than expected at EUR -2.4 million (previous year: EUR – 0.4 million). Accrual of a tax loss carryforward in accordance with US GAAP caused a reduction in the net loss for the first nine months to EUR -1.9 million. Earnings per share, calculated according to DVFA accounting rules, were EUR -0.58, compared to EUR -0.03 for the first nine months of 2000. In view of the persistent crisis in the US economy and the global economic downturn, the company expects revenues in the fourth quarter – traditionally the strongest quarter of the year in terms of sales – to be equal at best to those of the third quarter. Although restructuring in the USA will have a positive influence on earnings, this is unlikely to compensate for the shortfall in sales. Against this background, TePla AG corrected its forecasts for the current business year – the net loss is expected to be approximately EUR -2.5 million instead of EUR -1.9 million as planned. The company is cautiously optimistic for the first half of 2002. The apparent investment backlog will be dissolved within the medium term, and TePla is well positioned with several products for future growth markets. end of ad-hoc-announcement (c)DGAP 28.11.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Key elements of the restructuring program in the USA have meanwhile been implemented and are now starting to take effect. This is primarily manifested in reduced administrative expenses. Major improvements in efficiency are evident from the increase in the Group’s gross margin to 36 percent in the third quarter – this being the first time since the acquisition of MetroLine that gross margins have again been compliant with internal targets. However, these positive impacts were essentially destroyed by the unexpectedly severe drop in demand in the USA; neither are there any signs of improvement in the fourth quarter. TePla is cautiously optimistic with regard to the first half of 2002, on the other hand. At present, even profitable companies working to full capacity have postponed essential investments in replacement equipment. In the medium term, this investment backlog will have to be dissolved. Another reason for optimism is the undisputed growth potential of new plasma technology applications – annual growth rates of 100 percent in the years ahead are forecast for systems used to clean glass substrates in flat panel displays, for example. As soon as the market begins to grow again, TePla will be present with its FPD40 system – a product for which no serious competitor has yet emerged. The share capital increase decided upon at the end of the third quarter is clear evidence that the Management Board is convinced of the company’s future prospects – of 680,000 newly issued shares, the Board subscribed to 20 percent. Eighty percent of the new shares were taken over by DEWB, engaged at TePla since the IPO, who now holds more than 25 percent of the company’s shares. The increase in share capital by around EUR 1.7 million increases the financing scope for further implementation of the growth strategy pursued by TePla. ——————————————————————————– WKN: 746100; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 280801 Nov 01