Ad-hoc | 14 April 2005 17:28

CeoTronics AG: Report for the nine months to February 28, 2005, CeoTronics Gro

Ad hoc announcement §15 WpHG Period results CeoTronics AG: Report for the nine months to February 28, 2005, CeoTronics Gro Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Revenues up 38.5% / EBITDA up EUR1,418 thousand / EBIT increase of EUR1,448 thousand / Full-year earnings target nearly achieved already at EUR976 thousand / Cash flow improved by EUR941 thousand/ Healthy order book / Own expectations exceeded again CeoTronics AG Audio Video Data Communication, Adam-Opel-Strasse 6, 63322 Rödermark, Germany, listed in the Prime Standard and in the Technology All Share index (ISIN: DE0005407407), increased consolidated revenues (U.S. GAAP) for the first nine months of fiscal year 2004/2005 to February 28, 2005 by EUR3,601 thousand compared with the same period for the previous year, from EUR9,354 thousand to EUR12,955 thousand. EBITDA (Earnings before Interest, Taxes, Depreciation and goodwill Amortization/impairment) rose by EUR1,418 thousand compared with the same period for the previous year, from EUR486 thousand to EUR1,904 thousand. EBIT for the same period improved by EUR1,448 thousand, from EUR154 thousand to EUR1,602 thousand. Last year’s modest figure for net income after taxes of EUR5 thousand improved to EUR976 thousand – an increase in consolidated net income of EUR971 thousand. Gross cash flow improved by EUR941 thousand in the period under review, from EUR337 thousand for the comparable period of the previous year to EUR1,278 thousand. Net income per share improved by EUR0.44 to EUR0.44 compared to EUR0.00 for the same period last year. Consolidated shareholders’ equity amounted to EUR10,695 thousand at February 28, 2005, and the equity ratio was 75.4% (previous year: 67.9%). The exceptionally high order book from the previous year declined as expected to a healthy, above-average level at the reporting date, February 28, 2005. The number of employees remained at 126, the same as at the corresponding date last year. Q3 2004/2005 showed an increase in consolidated revenues of EUR876 thousand from EUR3,419 thousand to EUR4,295 thousand, and an improvement in EBITDA of EUR423 thousand from EUR270 thousand to EUR693 thousand, compared with Q3 2003/2004. EBIT increased by EUR418 thousand, from EUR168 thousand to EUR586 thousand. Net income after taxes rose by EUR280 thousand from last year’s EUR101 thousand to EUR381 thousand. Gross cash flow improved by EUR285 thousand from EUR203 thousand to EUR488 thousand year-on-year for the quarter from December 1 to February 28/29. Net income per share for the quarter improved by EUR0.12 to EUR0.17 compared with EUR0.05 for the same quarter of the previous year. In Q3 of the fiscal year, we once again had to revise our targets for revenues and earnings for CeoTronics in the U.S.A. for fiscal 2004/2005. In accordance with the principles of prudent business practice, therefore, we have again reduced the value of the equity interest in CeoTronics, Inc. U.S.A. recognized in the balance sheet of the parent company by EUR200 thousand, and charged additional write-downs of receivables from the US company of EUR200 thousand. CeoTronics’ parent company achieved net income after taxes for the nine months of EUR426 thousand, an increase of EUR389 thousand over the same period for 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 14.04.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: The first nine months of fiscal year 2004/2005 have once again demonstrated the strengths of CeoTronics’ broad customer base, varied and innovative range of products and international distribution network. Cyclical weakness in individual customer sectors, budget constraints for public sector customers in various markets and the unsatisfactory development of CeoTronics’ business position in the U.S.A. did not endanger growth in revenues and profitability for our Group as a whole, although they did impact them to a certain extent. CeoTronics successfully bucked the general trend within German industry with impressive increases of 38.5% in consolidated revenues and EUR971 thousand in consolidated net income compared with the same period of the previous year. This very high level of revenue growth is partly due to the delivery and invoicing of the largest single order in CeoTronics’ history. Even without the completion of this major order, however, CeoTronics would have generated double-digit growth in consolidated revenues. The weak US dollar continued to have a negative impact on business development in the U.S.A. The poor political climate between the US and German governments makes it more difficult for a German-owned company to achieve sales in the country. CeoTronics U.S.A. is more and more concentrating on the sale and distribution of specialty products with unique features. These systems are highly complex in some cases and involve elaborate and time-consuming project development activity, leading to a correspondingly lengthy decision process on the part of the customer. The cost structure and organization of CeoTronics U.S.A. will continue to be adjusted in line with the development in revenues over the coming quarters. “Once again, CeoTronics has exceeded our own expectations, those of shareholders and media. We expect to hit our target revenues for fiscal 2004/2005 of around EUR15,500 thousand and to exceed our earnings target of around EUR1,000 thousand. We have thus created the basis for positive future share price development”, said Thomas H. Günther, Chairman of the Board of Management. Further information: CeoTronics AG Audio Video Data Communication Investor Relations, Adam-Opel-Strasse 6, 63322 Rödermark, Germany Tel: +49 6074 8751-722, Fax: +49 6074 8751-720 E-mail: chairman@ceotronics.com, Internet: http://www.ceotronics.com End of message (c)DGAP 141728 Apr 05