Corporate | 2 August 2006 07:30

SINGULUS TECHNOLOGIES Announces Results for the 2nd Quarter of 2006

Corporate news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Press Release SINGULUS TECHNOLOGIES Announces Results for the 2nd Quarter of 2006 – 18 % higher sales than in the 1st half of 2005 – Order backlog almost doubled to € 138.7 million – Significantly increased operating cash flow of € 7.3 million Kahl am Main, August 2, 2006 – During the 1st half of 2006 the SINGULUS TECHNOLOGIES Group (SINGULUS) achieved sales of € 116.5 million, which is 18 % higher than the level achieved in the 1st half of 2005 (€ 99.1 million). Sales of € 67.6 million in the 2nd quarter 2006 were significantly higher than in the previous year (Q2 2005: € 48.7 million). On the one hand, the rise in sales results from the first-time consolidation of HamaTech, on the other hand, an increase in the activities with Prerecorded CD equipment was reported. The order intake increased from € 78.7 million in the same period one year ago to € 86.8 million in the 2nd quarter 2006. As of June 30, 2006, the order backlog stood at € 138.7 million (previous year: € 70.7 million), which is significantly higher than at the same time one year ago. The earnings before interest and taxes (EBIT) were slightly negative at -€ 1.8 million (previous year: € 0.2 million) in the 2nd quarter 2006. The deterioration in earnings compared with the same period last year results from a negative earnings contribution from HamaTech. For the 1st half of 2006 SINGULUS achieved a positive EBIT in the amount of € 5.2 million (previous year: € 1.2 million). This includes one-off effects in connection with the first-time consolidation of HamaTech in the 1st quarter of 2006. They stem from an extraordinary gain in the amount of € 34.1 million from the earnings-relevant reversal of a resulting badwill in the course of the first-time consolidation as well as restructuring charges in the amount of € 20.1 million. The earnings after taxes came in at minus € 2.4 million in the 2nd quarter 2006, which was below previous year’s level (€ 0.5 million). For the 1st half of 2006 compared with the previous year the earnings after taxes rose by € 6.0 million to € 7.3 million. The operating cash flow of € 7.3 million in the 1st half of 2006 was substantially higher than in the previous year (- € 2.4 million). This increase results mainly from the higher net profit before the consideration of depreciation. Compared with June 30, 2005, the headcount (excluding HamaTech) declined from 638 to 560 employees. HamaTech also adjusted its headcount continuously to the economic situation. The SINGULUS Group (including HamaTech) employed 1,154 people as of June 30, 2006. The average headcount in the Group (including HamaTech) amounted to 1,232 employees (previous year: 688) in the 1st half of 2006. In particular, the orders we received for our TIMARIS machine, which we announced in the past couple of weeks, underlined a favorable trend. In total, by now already five machines are earmarked for delivery including the two orders in the 2nd quarter 2006 and the order received on July 26, 2006. As of the end of June 2006 no substantial improvement in the field of the optical disc sector could be seen on a global basis compared with the previous year. In particular the Asian market remains characterized by a restraint in capital expenditure. However, the project activities picked up in the last two months. This holds also true for the activities with machines for once-recordable disc (Recordable). Insofar, we expect a slight pick-up of the market for the remainder of the business year 2006 as well as for 2007. An important milestone of the optical disc industry in the next couple of months will be the introduction of the new formats HD DVD and Blu-ray. Here the market launch of the Playstation 3 by Sony with a Blu-ray drive is awaited with great attention. The same holds true for the upgraded Microsoft X-Box with an HD DVD drive. Taking into account the current market conditions, from today’s point of view we expect consolidated sales in the range of € 280 to 300 million with a positive EBIT. Since the business segments ETA-Optik, the photo masking activities (APE) and the production location in Nove Mesto, Slovakia, are up for sale, the expected level of sales could decline due to the divestments. We see growth stimulus from the traditional CD and DVD activities in 2007 once again, but also from the new formats HD DVD and Blu-ray. In addition, the MRAM division with five machines to be delivered will contribute considerably to sales for the first time in 2007. Also the latest order intake in optical coatings prove that the chosen diversification strategy is correct to base the company on a broader foundation. We will continue to go this way consistently without neglecting our core activities. Consolidated key figures 2. quarter 2004-2006 pursuant to IFRS 2004 2005 2006 Sales 91.0 48.7 67.6 Order intake 157.7 78.7 86.8 EBIT 11.3 0.2 -1.8 Earnings before taxes 11.6 0.6 -1.4 Net profit 7.3 0.5 -2.4 Research and development 5.2 3.8 7.5 Consolidated key figures 1st half 2004-2006 pursuant to IFRS 2004 2005 2006 Sales 160.4 99.1 116.5 Order intake 297.6 113.0 194.3 Order backlog (June 30) 215.9 70.7 138.7 EBIT 17.9 1.2 5.2 Earnings before taxes 18.7 1.9 5.9 Net profit 11.6 1.3 7.3 Operating cash flow -5.9 -2.4 7.3 Shareholders’ equity 239.3 248.3 270.0 Balance sheet total 379.2 359.8 430.0 Research and development 9.5 8.2 12.5 Employees (June 30) 709 638 1,154 Weighted average shares 37,073,907 35,188,654 34,941,929 outstanding (basic) Earnings per share 0.31 0.04 0.21 Company profile SINGULUS TECHNOLOGIES With a consistent focus on its core competencies, since the management buyout SINGULUS TECHNOLOGIES has transformed itself into the global leader of systems and equipment for optical storage media within a time span of ten years. Operating and acting according to the principles of profitability always remained in the spotlight. SINGULUS TECHNOLOGIES is the only equipment producer in the world offering the entire value-added chain for the manufacturing of optical disc: the products range from mastering and injection molding to replication lines. With the set-up of a high degree of the depth of the value-added chain, SINGULUS TECHNOLOGIES was successful in broadening the range of products offered to customers in the past couple of years. Therefore, the positioning of SINGULUS TECHNOLOGIES in the optical disc segment is one of kind in the world. SINGULUS TECHNOLOGIES’ declared goal is to integrate the new formats HD DVD and Blu-ray into this structure as well. With the acquisition of STEAG HamaTech in January 2006, SINGULUS TECHNOLOGIES is also excellently positioned worldwide in the future for machines for recordable formats. SINGULUS TECHNOLOGIES still considers the market for machines to produce optical disc as its core competence. In addition, new business areas are intended to contribute to sales and earnings in the future. SINGULUS TECHNOLOGIES – Smart Solutions to Drive the Future SINGULUS TECHNOLOGIES AG, Hanauer Landstrasse 103, D-63796 Kahl/Main, ISIN: DE0007238909, WKN: 723890 For further information please contact: Maren Schuster, Investor Relations, Tel.: + 49 (0) 6188 440 612 Bernhard Krause, Corporate Communications, Tel.: + 49 (0) 6181 98280 20 SINGULUS TECHNOLOGIES AG, Hanauer Landstrasse 103, D-63796 Kahl/Main, ISIN: DE0007238909, WKN: 723890 For further information please contact: Maren Schuster, Investor Relations, Tel.: + 49 (0) 6188 440 612 Bernhard Krause, Corporate Communications, Tel.: + 49 (0) 6181 98280 20 (c)DGAP 02.08.2006 ————————————————————————— Language: English Issuer: SINGULUS TECHNOLOGIES AG Hanauer Landstrasse 103 63796 Kahl am Main Deutschland Phone: +49 (0)6188 440-105 Fax: +49 (0)6188 440-110 E-mail: maren.schuster@singulus.de WWW: www.singulus.de ISIN: DE0007238909 WKN: 723890 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service —————————————————————————