Corporate | 27 October 2010 07:50
STRATEC Biomedical Systems AG / Key word(s): Quarter Results/Interim Report 27.10.2010 07:50 --------------------------------------------------------------------------- STRATEC boosts its growth rate in the third quarter of 2010 - Sales of EUR 26.1 million in Q3/2010 (+34.3%; Q3/2009: EUR 19.5 million) - Consolidated net income of EUR 3.8 million in Q3/2010 (+31.9%; Q3/2009: EUR 2.9 million) - EBIT margin increased by 0.4% points to 18.5% in Q3/2010 (Q3/2009: 18.1%) - Sales of EUR 69.2 million in Q1-Q3/2010 (+23.5%; Q1-Q3/2009: EUR 56.0 million) - Consolidated net income of EUR 9.7 million in Q1-Q3/2010 (+25.1%; Q1-Q3/2009: EUR 7.8 million) - EBIT margin increased by 1.0% points to 18.5% in Q1-Q3/2010 (Q1-Q3/2009: 17.5%) Birkenfeld, October 27, 2010 STRATEC Biomedical Systems AG today announced its results for the period from January 1, 2010 to September 30, 2010, upon the publication of its interim report as of September 30, 2010.Key Figures 01.01.- 01.01.- Change EUR thousand) 09.30.2010 09.30.2009 Sales 69,149 56,001 + 23.5% Overall performance 76,419 62,164 + 22.9% EBITDA 14,977 11,735 + 27.6% EBIT 12,793 9,775 + 30.9% Consolidated net income 9,746 7,788 + 25.1% Earnings per share (EUR) 0.85 0.69 + 23.2% EBIT margin (%) 18.5 17.5Financial performance - STRATEC significantly boosted its rate of growth in the third quarter of 2010 compared with the two previous quarters and the previous year. It achieved this due to continuing strong turnover with analyzer systems already established on the market, the rising number of pre-serial and serial systems to be produced and the working down in the supply backlog reported at the end of the second quarter of 2010. Year-on-year, sales grew by 34.3% from EUR 19.5 million to EUR 26.1 million in the third quarter of 2010. Consolidated net income increased by 31.9% from EUR 2.9 million to EUR 3.8 million. Notwithstanding the initial costs incurred in the third quarter of 2010 to integrate Ballista, the US company acquired in July 2010, and the temporary comparative weakness of the consumables and spare parts business, the Group managed to increase its EBIT margin for the third quarter of 2010 from 18.1% to 18.5%. Sales for the first nine months as a whole increased to EUR 69.2 million, up 23.5% from EUR 56.0 million in the previous year's period. Consolidated net income for the same period showed growth of 25.1% from EUR 7.8 million to EUR 9.7 million. The EBIT margin amounted to 18.5% as of September 30, 2010 (previous year: 17.5%). Project development - Alongside the market launch of NEO by Immucor, which was the first STRATEC analyzer system to be newly launched in the current year and which received FDA approval in the USA just a few weeks after its approval in Europe, STRATEC expects customer approval for serial production in three further projects (Gen-Probe, QIAGEN and DiaSorin) in the near future. Other development - Within our expansion strategy, at the beginning of July 2010 we extended our presence in the USA by acquiring Ballista. This US company specializes in optical and opto-mechanical precision technology and related development, production and advisory services and can point to a proven track record of expertise in the diagnostics, medical technology, biotechnology and aerospace industries. Its expertise and capacities range from prototype assembly through to serial production. In 2009, Ballista generated sales of US$ 2.7 million with 18 employees. The company was founded in 2004 and is based in Newbury Park, a short distance from Los Angeles. Its three founding partners have longstanding experience in managing and expanding high-growth companies and they have committed, via employment contracts, stock holdings and options, to remain engaged and to work with STRATEC to further develop its US presence and to work on the targeted expansion of the company's existing customer and technology base. Ballista has been consolidated in the Group's accounts as of July 1, 2010. In preparation for further growth at the STRATEC Group in future, construction work began in October 2009 and April 2010 on new buildings at the Group's locations in Beringen (Switzerland) and Birkenfeld (Germany). While the 4,000 m² production building in Switzerland was already completed in June 2010, the 5,000 m² development building at the Group's main location in Birkenfeld will be ready for occupation in November 2010. Once construction work has been completed, our Group's production capacities will have virtually doubled. We therefore believe that we are excellently equipped for the further growth spurt expected in the coming years. Personnel development - Including temporary employees and staff at Ballista, a company acquired in July 2010, the STRATEC Group had a total workforce of 440 employees as of September 30, 2010 (previous year: 351). Compared to June 30, 2010 the STRATEC Group expanded its workforce by 41. Outlook - Some companies in the diagnostics industry have in recent months revised their growth expectations in some cases or issued subdued outlooks for the sector. Given STRATEC's business outlook, which has so far not been affected by this, the company can affirm its sales forecast for the 2010 financial year, namely that the Group will post sales in a range between EUR 96 million and EUR 102 million (2009 sales. EUR 79.6 million). As in previous years, the fourth quarter should witness accelerated earnings growth, as a result of which we still expect to generate an EBIT margin of at least 19.0% for the 2010 financial year. Furthermore, the forecasts provided by our customers give reason to expect substantial overall growth in business with the analyzer systems STRATEC produces for them in the foreseeable future. Alongside growth in its existing business, STRATEC's very good growth prospects are mainly based on market launches of new products by its customers. Although STRATEC's partners have made some changes to their analyzer system market launch schedules in the current year, a significant share of the Group's sales is nevertheless already attributable to these new systems due to the sale of pre-serial units. This development will not have any negative impact on STRATEC's budgeted sales and earnings performance in the 2010 financial year. STRATEC plans to detail its sales and earnings forecasts for the 2011 financial year and subsequent years as soon as customer approval is received for serial production in the three projects about to be launched onto the market (Gen-Probe, QIAGEN and DiaSorin) and once the operating sales generated by our customers can be realistically planned. Further details can be found in our interim report as of September 30, 2010, which has been published at www.stratec-biomedical.de > Investor Relations > IR News > Financial Reports. About STRATEC STRATEC Biomedical Systems AG (www.stratec-biomedical.de) designs and manufactures fully automated systems for its partners in the fields of clinical diagnostics and biotechnology. These partners market such systems, in general together with their own reagents, to laboratories, blood banks and research institutes around the world. The company develops its products on the basis of its own patented technologies. Shares in the company (ISIN: DE0007289001) are traded in the Prime Standard segment of the Frankfurt Stock Exchange. The STRATEC Group consists of the publicly listed parent company STRATEC Biomedical Systems AG and of subsidiaries and second-tier subsidiaries in Germany, the USA, the UK, Switzerland and Romania. Further information can be obtained from: STRATEC Biomedical Systems AG André Loy, Investor Relations Gewerbestr. 37, 75217 Birkenfeld Germany Phone: +49 7082 7916 190 Fax: +49 7082 7916 999 ir@stratec-biomedical.de www.stratec-biomedical.de 27.10.2010 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: STRATEC Biomedical Systems AG Gewerbestraße 37 75217 Birkenfeld Deutschland Phone: +49 (0)7082 7916 0 Fax: +49 (0)7082 7916 999 E-mail: info@stratec-biomedical.de Internet: www.stratec-biomedical.de ISIN: DE0007289001 WKN: 728900 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in München, Düsseldorf, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------