Corporate | 3 May 2011 07:45

STRATEC – Growth continues in 2011

STRATEC Biomedical AG / Key word(s): Quarter Results/Interim Report

03.05.2011 / 07:45

PRESS RELEASE

STRATEC – Growth continues in 2011

– Sales of EUR 22.2 million in Q1/2011 (+9.5%; Q1/2010: EUR 20.2 million)

– Significantly higher EBIT margin of 18.0% in Q1/2011, as against 14.8% in Q4/2010 (Q1/2010: 18.5%)

– Consolidated net income of EUR 3.0 million in Q1/2011 (+3.5%; Q1/2010: EUR 2.9 million)

– Dividend of EUR 0.50 distributed (total distribution sum: EUR 5.8 million)

– Renaming as STRATEC Biomedical AG

Birkenfeld, May 3, 2011

Upon the publication of its interim report as of March 31, 2011, STRATEC Biomedical AG (Frankfurt: SBS; Prime Standard, TecDAX) today announced its figures for the period from January 1, 2011 to March 31, 2011.

Key figures (EUR 000s)	01.01.- 03.31.2011	01.01.- 03.31.2010	Change
Sales	22,145	20,225	+9.5%
Overall performance	25,368	23,229	+9.2%
EBITDA	4,757	4,433	+7.3%
EBIT	3,982	3,743	+6.4%
Consolidated net income	2,974	2,873	+3.5%
Earnings per share (EUR)	0.26	0.25	+4.0%
EBIT margin (%)	18.0%	18.5%

Financial performance
Sales for the first quarter of 2011 rose by 9.5% from EUR 20.2 million to EUR 22.1 million, with substantial growth in the consumables business compared with the fourth quarter of 2010. As a result, the EBIT margin was increased to 18.0%. The share of sales generated with consumables has normalized once again, especially when compared with the fourth quarter of 2010, which was affected by several one-off factors and which resulted in an EBIT margin of 14.8%. Both sales and the EBIT margin are therefore within the planned corridor forecasted in the financial guidance published in March 2011, according to which STRATEC expects to generate sales in a range of between EUR 110 million and EUR 123 million with an EBIT margin of at least 18.5% in 2011.

Project development
The systems newly launched onto the market in the past year have shown a promising performance at the beginning of the new year and form the cornerstone for the growth expected in the second half of the year. Furthermore, in the coming weeks and months we will be creating production capacities for further systems currently in preparation for serial production and expanded production volumes.

Further development projects are progressing on schedule and give reason to expect further system market launches in the coming years.

Of the new contracts expected in 2011, a first development and supply contract has already been signed. Further negotiations are in advanced stages and provide grounds for us to affirm our forecast. Additional details concerning these contracts will be published once agreements have been reached with the respective customers.

The subsidiaries STRATEC Biomedical USA (previously Ballista Inc.), STRATEC Biomedical UK (previously Sanguin), and STRATEC Molecular (previously Invitek) also concluded new contracts which gives us reason to be optimistic of winning further contracts within the STRATEC Group. Given their proportion of consolidated sales, and consistent with customer wishes, however, these have not been listed individually at this point in time.

Other developments
The Annual General Meeting held after the end of the first quarter on April 14, 2011 resolved the distribution of a dividend of EUR 0.50 per share. All other agenda items proposed by the management were also approved. Accordingly, the company has also been renamed from STRATEC Biomedical Systems AG to STRATEC Biomedical AG. This renaming should be viewed in connection with the standardization of the company's structure and the increased brand recognition of the STRATEC Group. As part of this process, the subsidiaries have also changed their names. Sanguin International Ltd. has thus become STRATEC Biomedical UK, Ltd., Invitek Gesellschaft für Biotechnik & Biodesign mbH has become STRATEC Molecular GmbH, Ballista, Inc. has become STRATEC Biomedical USA, Inc., and Robion AG has become STRATEC Biomedical Switzerland AG.

Personnel development
Including temporary employees, the STRATEC Group had a total workforce of 454 employees as of March 31, 2011 (March 31, 2010: 387). Compared with December 31, 2010, the workforce has therefore increased by a further 14 employees.

Outlook
STRATEC continues to expect further sales growth, accompanied by a rising EBIT margin, in the 2011 financial year. Specifically, the company expects to generate sales in a range of EUR 110 million to EUR 123 million in 2011. Based on sales in the 2010 financial year, the Group expects to achieve average sales growth (CAGR) of at least 17.0% in the financial years 2011 to 2013. Consistent with these expectations, the EBIT margin should amount to at least 18.5% in 2011 and to at least 19.0% in the two subsequent years.
Achievement or any potential exceeding of the upper end of the sales corridor of EUR 123 million in 2011 is dependent on the timing of the planned pending market launches of new systems and the approvals in the relevant markets.

Further details can be found in our Interim Report as of March 31, 2011 published at www.stratec.com > Investor Relations > IR News > Financial Reports.

About STRATEC
STRATEC Biomedical AG (www.stratec.com) 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, and are a constituent of the Deutsche Börse TecDAX.

The STRATEC Group consists of the publicly listed parent company STRATEC Biomedical AG as well as subsidiaries and second-tier subsidiaries in Germany, the USA, the UK, Switzerland and Romania.

Further information can be obtained from:
STRATEC Biomedical AG
André Loy, Investor Relations
Gewerbestr. 37, 75217 Birkenfeld
Germany
Phone: +49 7082 7916 190
Fax: +49 7082 7916 999
ir@stratec.com
www.stratec.com

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Language:	English
Company:	STRATEC Biomedical AG
	Gewerbestr. 37
	75217 Birkenfeld
	Deutschland
Phone:	+49 (0)7082 7916 0
Fax:	+49 (0)7082 7916 999
E-mail:	info@stratec.com
Internet:	www.stratec.com
ISIN:	DE0007289001
WKN:	728900
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart

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