Ad-hoc | 12 November 2004 07:45

GERICOM achieves result and cash flow turnaround

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Adhoc-News 12.11.2004 GERICOM achieves result and cash flow turnaround GERICOM AG has continued its positive development and in the first nine months of the 2004 financial year achieved a result and cash flow turnaround. The company’s 3rd quarter report, which was issued today, shows that at the end of September the mobile communications and digital entertainment electronics specialist had again achieved a consolidated profit for the period of EUR 0.3 m (2003: minus EUR 3.0 m). The upturn in operative cash flow was even stronger and it improved from around minus EUR 14.8 m in the preceding year to plus EUR 0.6 m. From a nine-month perspective, sales were down on those of the comparable period of the preceding year by around 18% at EUR 268.3 m (2003: EUR 327.3 m). At the same time, earnings before interest and taxes (EBIT) improved from minus EUR 4.0 m (2003) to plus EUR 1.5 m. The result per share amounted to EUR 0.03 following minus EUR 0.28 in 2003. In the third quarter of the year, which is traditionally weak in the branch, sales amounted to EUR 77.2 m (2003: EUR 91.8 m) and were thus maintained at the satisfactory level of the previous quarter (EUR 78 m). The anticipated fall in home entertainment sales was largely compensated for by targeted notebook promotions. In the third quarter alone, as compared to the preceding year, EBIT improved by over EUR 7 m to minus EUR 1.0 m (2003: minus EUR 8.1 m). As a result of the systematic implementation of a restructuring programme, GERICOM was able to improve several aspects of its 3rd quarter balance. During this period, not only were inventories cut back (from EUR 94.7 m to EUR 49.7 m), but also trade accounts payable (from EUR 103.5 m to EUR 40.8 m at the end of September) and current liabilities (to EUR 6.2 m, following EUR 10.1 m at the beginning of 2004) were reduced. At the end of September, equity was slightly up at EUR 58 m (beginning of 2004: EUR 57.0 m). Consequently, the equity quota stood at 46.7% (beginning of 2004: 28.8%). Order backlog on the September 30 closing date stood at EUR 65,8 m (2003: EUR 114,4 m). One element of uncertainty with regard to the overall business result for 2004 is the switch by GERICOM’s main supplier of its production capacity from Taiwan to China. As a result, GERICOM’s sales target of EUR 400 m for the 2004 financial year will probably not be achieved and under these circumstances, from a current viewpoint, the objective of returning to profitability in 2004 must be regarded as being in doubt. The complete 3rd quarter report is available on the company’s website under http://www.gericom.com. Patrick F. Prügger Chief Financial Officer Gericom AG Industriezeile 35 4020 Linz, Austria Tel.: +43 732 7664 5981 E-Mail: pruegger@gericom.com end of ad-hoc-announcement (c)DGAP 12.11.2004 ——————————————————————————– WKN: 565773; ISIN: AT0000729108; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 120745 Nov 04