Ad-hoc | 11 August 2003 23:52

Gericom AG english

Q2 sales and earnings burdened by rivalry for market share Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Revenues of 110.5 mio EUR (Q2/2002: 123.0 mio EUR) , EBIT: -0.70 mio EUR (2002: 5.55 mio EUR) , 2003 targets revised Rivalry for market share in the European notebook market has burdened sales and earnings of GERICOM AG in the second quarter of fiscal year 2003. Despite a rise in units sold of round about 20 % to more than 94.000 present figures show last quarter sales lowered by 10,2 % to 110.5 mio EUR year-on-year (Q2/2002: 123.0 mio EUR). This is reflected in the strong decline in average prices for notebooks by -22 % in comparison to the previous year. At the same time due to the negative economic environment the most important sales partners of GERICOM were not able to sell units as contracted. On behalf of a long-term fortification of the partnership and a joint further increase of market share in the course of the year GERICOM abstained from the enforcement of these claims and invested with his partners in lower prices for the consumer. This resulted in a one-time impact on the operating income (EBIT), which thus was negative for the first time in the second quarter by -0.7 mio EUR (5.6 mio EUR). In return these partners committed themselves to meet a fixed sales target by the end of the year with GERICOM as their strategic partner. For the first half of 2003 there was an increase in revenues of 11, 6 % to 235.5 mio EUR year-on-year (Q2/2002: 211.0 mio EUR). EBIT amounted to 4.2 mio EUR after 9.9 mio EUR in the preceding year. At the same time GERICOM managed to generate a substantially higher cash flow of 13.8 mio EUR (-12.3 mio EUR). Hence cash and cash equivalents increased to 51.4 mio EUR (about 33.1 mio EUR per 12/2002). Against the background of this prevailing tense economic situation in the core market Germany and acute competition in Europe, in which GERICOM wants to aggressively gain market share, we revise our sales and earnings targets for 2003. On the basis of cautious planning we expect full year sales to be at 2002 levels (about 540 mio EUR) and in comparison to this a clearly recurrent EBIT (2002: 23.8 mio EUR). end of ad-hoc-announcement (c)DGAP 11.08.2003 ——————————————————————————– WKN: 565773; ISIN: AT0000729108; Index: SDAX Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 112352 Aug 03