Ad-hoc | 14 January 2005 17:59

CeoTronics AG: Consolidated Report on H1 2004/2005 as of January 14, 2005

Ad hoc announcement §15 WpHG Consolidated Report on H1 2004/2005 CeoTronics AG: Consolidated Report on H1 2004/2005 as of January 14, 2005 Ad hoc announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— CeoTronics AG Ad Hoc Disclosure in Accordance with Section 15 of the WpHG (German Securities Trading Act) January 14, 2005 Consolidated Report on H1 2004/2005 as of January 14, 2005 Revenues up 45.9% / EBITDA EUR1,211 thousand / EBIT EUR1,016 thousand / half- yearly net income after taxes EUR595 thousand / gross cash flow EUR790 thousand / order backlog up 18.3% / best half-yearly result since 1998 / revenue target 04/05: EUR15,500 thousand / earnings target 04/05: EUR1,000 thousand In the first six months of fiscal year 2004/2005, CeoTronics AG Audio Video Data Communication, Adam-Opel-Strasse 6, 63322 Rödermark (Germany), listed in the Prime Standard’s Technology All Share segment of the Frankfurt Stock Exchange (ISIN: DE0005407407), recorded year-on-year growth in consolidated revenues of EUR2,725 thousand, from EUR5,935 thousand to EUR8,660 thousand. EBITDA (Earnings Before Interest, Taxes, Depreciation and goodwill Amortization/impairment) rose by EUR995 thousand year-on-year, from EUR216 thousand to EUR1,211 thousand. EBIT improved by EUR1,030 thousand, from EUR-14 thousand to EUR1,016 thousand. Net income of EUR595 thousand was realized, in contrast to the net loss after taxes of EUR96 thousand in the corresponding period of the previous year; this represents an increase in the Group’s half- yearly earnings of EUR691 thousand. Gross cash flow improved by EUR656 thousand in the period under review, from EUR134 thousand in the prior-year period to EUR790 thousand. Earnings per share increased from EUR-0.04 to EUR0.27, up EUR0.31 year-on-year. Consolidated shareholders’ equity as of November 30, 2004 amounted to EUR10,307 thousand, while its equity ratio was 70.0% (previous year: 66.5%). The consolidated order backlog after the first six months was up 18.3% as against the previous year. For fiscal year 2004/2005 as a whole, the CeoTronics Group aims to increase total revenues by around 14.2% year-on-year to roughly EUR15,500 thousand, and to generate earnings of approximately EUR1,000 thousand (up around 216%). A comparison of Q2 2004/2005 and Q2 2003/2004 shows that consolidated revenues increased by EUR2,477 thousand, from EUR3,384 thousand to EUR5,861 thousand, while EBITDA rose by EUR701 thousand, from EUR351 thousand to EUR1,052 thousand, and EBIT improved by EUR720 thousand, from EUR239 thousand to EUR959 thousand. Net income after taxes for the quarter increased by EUR409 thousand year-on-year, from EUR175 thousand to EUR584 thousand, while gross cash flow improved by EUR389 thousand in the period from September 1 to November 30, from EUR288 thousand in the previous year to EUR677 thousand. Earnings per share for Q2 amounted to EUR0.27 after EUR0.08 in the previous year. CeoTronics AG Adam-Opel-Straße 6 63322 Rödermark Deutschland ISIN: DE0005407407 WKN: 540740 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 14.01.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: The figures for the first six months of fiscal year 2004/2005 in accordance with U.S. GAAP represent the CeoTronics Group’s best half-yearly result since its 1998 IPO and the start of its interim reporting. The unusually high level of revenue growth is also due to the delivery and invoicing of the largest single order in CeoTronics’ history. The Company supplied digital communication systems based on its CT-DECT civil technology worth EUR1.92 million. The systems meet the German Air Force’s high standards for this specialized military application, and are also compatible with the recently purchased CT noise protection/communication helmets for handling jets such as the Eurofighter. Even without the completion of this major order, however, CeoTronics would have generated double-digit growth in consolidated revenues. Sales by the German parent company, CeoTronics AG, Rödermark, in accordance with the HGB (German Commercial Code) grew 59.1%. EBITDA improved by EUR1,835 thousand, from EUR-20 thousand to EUR1,815 thousand, while EBIT increased by EUR1,862 thousand, from EUR-221 thousand to EUR1,641 thousand. In contrast to the previous year’s half-yearly net loss after taxes of EUR138 thousand, net income of EUR1,151 thousand was generated in the first six months of this year. This represents an increase in earnings after taxes of EUR1,289 thousand. Unfortunately, the prolonged fall in the US dollar is now having a negative impact on business development in the U.S. Similarly, the lack of a decisive improvement in political relations between the U.S. and German governments does not exactly benefit sales by a German-owned company in the U.S.A. We were forced to revise our revenue and earnings targets in the U.S. for fiscal year 2004/2005. Accordingly, in line with the principles of prudent business practice, the value of the equity interest in CeoTronics, Inc. U.S.A. recognized in the balance sheet of the parent company was reduced by EUR500 thousand, while receivables from the U.S. subsidiary were written down by EUR100 thousand. In addition, inventories were written down by EUR200 thousand at the German parent company and at Group level. In the period under review, the price of CeoTronics shares increased by a further 44.1%, thus clearly bucking the negative trend on the TECDAX and the only slight recovery on the DAX. CeoTronics shares have also outperformed the Technology All Share performance index since their first inclusion on September 1, 2004, recording growth of 16.7% compared with 9.6%. The Board of Management is satisfied with the half-yearly results, particularly in light of the macroeconomic environment and the necessary write-downs, and believes that the Group’s revenue and earnings targets for fiscal year 2004/2005 are well within reach. Further information: CeoTronics AG Audio Video Data Communication Investor Relations, Adam-Opel-Strasse 6, 63322 Rödermark, Germany Tel.: +49 (0)6074/8751-722, Fax: +49 (0)6074/8751-720 E-Mail: chairman@ceotronics.com, Internet: http://www.ceotronics.com End of message (c)DGAP 141759 Jän 05