Ad-hoc | 18 August 2006 17:41

CeoTronics AG: Consolidated profit in accordance with IFRSs as of May 31, 2006

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Consolidated profit in accordance with IFRSs as of May 31, 2006 / Figures for Q4/2005-2006 / Proposed dividend payment Revenues up 13.7% to €18.06 million / EBITDA €2,239 thousand / EBIT €1,698 thousand / EBIT margin 9.4% / Profit for the year €979 thousand / Gross cash flow €1,520 thousand / Good fourth quarter / Order backlog up 10% / Proposed dividend per share: €0.30 In fiscal year 2005/2006, CeoTronics AG Audio Video Data Communication, Adam-Opel-Strasse 6, 63322 Rödermark, Germany, listed in the Prime Standard and the Technology All Share Index (ISIN: DE0005407407), recorded year-on-year growth in consolidated revenues (in accordance with IFRSs) of €2,182 thousand (+13.7%), from €15,878 thousand to €18,060 thousand. CeoTronics AG is publishing its consolidated figures according to International Financial Reporting Standards (IFRSs) for the first time. The comparative figures from the previous year have also been determined in accordance with IFRSs. Slight discrepancies are possible to the figures for the previous year, which were calculated in accordance with US GAAP. EBITDA (Earnings Before Interest, Taxes, Depreciation and goodwill Amortization/impairment) rose by €231 thousand year-on-year (+11.5%), from €2,008 thousand to €2,239 thousand. EBIT increased by €110 thousand (+6.9%) from €1,588 thousand to €1,698 thousand. Consolidated profit for fiscal year 2005/2006 amounted to €979 thousand, down €73 thousand year-on-year (-6.9%). Consolidated profit for the previous year in accordance with IFRSs amounted to €1,052 thousand. Consolidated profit attributable to parent company shareholders (excluding minority interests) amounted to €961 thousand for the past fiscal year (previous year: €1,030 thousand). Earnings per share fell slightly by €0.03, from €0.47 to €0.44. Consolidated equity amounted to €11,343 thousand at May 31, 2006, and the equity ratio was 79.5% (previous year: 77.5%). In the period under review, gross cash flow increased by €48 thousand year-on-year (+3.2%), from €1,472 thousand to €1,520 thousand. The Group’s order backlog increased to €3,431 thousand, up 10% as of the reporting date on the previous year’s high level (up 60% over 2003/2004 as of May 31, 2005). The number of employees (including vocational trainees), at May 31, 2006, increased by 7 year-on-year, from 129 to 136. In its meeting on August 18, 2006, the Supervisory Board concurred with the Board of Management in proposing to the General Meeting a €0.30 per share dividend payment (previous year: €0.20) from the parent company’s net retained profit of €2,353 thousand. On August 18, 2006, the Supervisory Board approved the resolution and proposal by the Board of Management to acquire the previously rented property in Rödermark, Adam-Opel-Strasse 6 + 6a for a net total of €2,490 thousand. Overall, the total purchase price of the property is €60 thousand below the appraised market value. Q4 2005/2006 recorded an increase in consolidated revenues of €1,677 thousand (+57.4%), from €2,923 thousand to €4,600 thousand, and an improvement in EBITDA of €289 thousand (+77.9%), from €104 thousand to €393 thousand, compared with Q4 2004/2005. EBIT increased by €308 thousand from €-14 thousand to €294 thousand. Profit for the quarter rose by €150 thousand (+197.3%), from €76 thousand to €226 thousand. Gross cash flow increased by €131 thousand year-on-year (+67.5%) for the quarter from March 1 to May 31, from €194 thousand to €325 thousand. Quarterly earnings per share increased from €0.03 to €0.10 year-on-year. ————————————————————————— Information and Explaination of the Issuer to this News: With approximately €18.1 million in consolidated revenues during the reporting period, we exceeded our target revenues for fiscal year 2005/2006 (€17.6 million). The partial deliveries for the major French orders scheduled for fiscal 2006/2007 were in fact drawn down by the customer during fiscal 2005/2006, and we were able to deliver extremely late incoming orders in time for their use during the 2006 World Cup. We also exceeded our profit forecasts for fiscal year 2005/2006. Our goal was to generate a profit of at least €800 thousand. As of May 31, 2006, we recorded a profit for the period of €979 thousand. Our increased expenditures on employee expenses and capacities, markets, R&D projects, and marketing are investments in CeoTronics’ future. CeoTronics will continue to position itself optimally to meet future challenges and seize opportunities in fiscal year 2006/2007. Our profit of €979 thousand is the second-best result in the Group’s history, despite one-time charges (e.g. depreciations on stocks caused by RoHS and depreciations on the goodwill of CeoTronics USA) of approximately €300 thousand. EBIT, EBITDA, and gross cash flow rose to new record levels in fiscal year 2005/2006. The CeoTronics Group is a successful company with extremely sound finances. The equity ratio rose again to 79.5%, and the Group has cash and cash equivalents amounting to €2,376 thousand, as well as access to adequate lines of credit. In addition to the encouraging order backlog at the end of the fiscal year, we are pleased with the orders we have received to date and the projects currently being negotiated or prepared for fiscal year 2006/2007. ‘In keeping with tradition, CeoTronics expects to issue its revenues and earnings targets for fiscal year 2006/2007 in January 2007, at the time of publication of its interim results,’ announced 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 (c)DGAP 18.08.2006 ————————————————————————— Language: English Issuer: CeoTronics AG Adam-Opel-Straße 6 63322 Rödermark Deutschland Phone: +49 (0)6074 8751-722 Fax: +49 (0)6074 8751-720 E-mail: investor.relations@ceotronics.com WWW: www.ceotronics.com ISIN: DE0005407407 WKN: 540740 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service —————————————————————————