- Consolidated sales grow by over 22% to around €37 million (previous year: €30.1 million)
- Consolidated EBIT increases by some 34% to €2.1 million (previous year: €1.5 million)
- A dividend of €0.80 planned
- EPS of €2 aimed for in 2008
euromicron (ISIN: DE0005660005) has followed up its fine business performance in the past year in the first quarter of 2008. The Group was able to post sharp rises in sales and earnings. There is undiminished demand for high-quality and powerful networks and components for voice, data and video transport. Moreover, the market for security, surveillance and alarm networks is still growing above-proportionately. euromicron offers here custom solutions for all customers’ needs in attractive niche markets.
Further steps in the Group’s structural realignment were undertaken. The remaining 20% stakes in Hartmann GmbH and BCK GmbH were acquired by euromicron AG, while Hartmann GmbH was merged with euromicron solutions GmbH retroactively effective January 1, 2008.
Sales, income and new orders are traditionally below average in the first quarter of euromicron’s fiscal year since most business with large customers and the public sector is transacted in the following quarters.
Consolidated sales
Consolidated sales were grown in the first quarter of 2008 by more than 22% to €36.8 million (previous year: €30.1 million). Total operating performance increased by 28%. The newly acquired companies and the existing “old companies” contributed to this good development. The German market remains the Group’s focus and accounted for 82% of sales, a 10% increase year-on-year. Outside the German market, sales were grown by more than 150% in countries in the Euro zone, mainly as a result of the acquisition of Cteam last year.
Consolidated income
In the first quarter of fiscal 2008, the euromicron Group reported earnings before interest and taxes of €2.1 million (previous year: €1.5 million), an increase of around 34%. Earnings per share were €0.25 compared with €0.22 in the same quarter of the previous year.
Order situation at the Group
New orders in the first quarter of 2008 were €34.3 million, 9% up year-on-year. Order books were €72.1 million, well above (+ 36.7%) the comparable figure for the previous year and so, together with the good sales in the 1st quarter of 2008, confirmed the forecast for 2008.
Balance sheet structure
The balance sheet structure has not changed significantly over December 31, 2007. Total assets fell slightly to €146.8 million. The ratios between noncurrent and current assets remained constant. The main item among noncurrent assets was goodwill. The ratio of equity and long-term outside capital to assets is still more than 100%. On the liabilities side, the ratios between long-term and short-term debt have likewise not changed significantly compared with at the end of fiscal 2007.
Personnel
The average number of employees, excluding trainees, at the reporting date was 900. That is an increase of 11% compared with at the end of 2007. The euromicron Group currently has 47 trainees in a wide range of different business administration and technical vocations.
Stockholders’ equity
Stockholders’ equity at March 31, 2008, was €71.2 million, around €800 thousand up on the figure at the end of 2007. The equity ratio rose from 47.6% to 48.5%.
The share
After starting on January 1, 2008, at a price of €19.00, euromicron’s share fell sharply in the 1st quarter in the wake of the financial crisis in the USA and associated slides in prices on all stock markets worldwide and the continuing weakness of small-cap companies. Since its low in March at €12.55, the stock price has been able to rise by more than 30%. The financial market analysts accompanying us still rate the euromicron share as a “buy”. In the first quarter of 2008, we again staged a number of roadshows and capital market conferences that should have a positive impact on the share price.
Our shareholders will again participate adequately in the company’s success this year. The Executive Board and Supervisory Board will propose a dividend of €0.80 at this year’s General Meeting on June 12, 2008. That is an increase of €0.10 a share compared with the previous year.
Outlook
euromicron aims to keep on growing profitably for the year as whole. The Group is fully in line with its budget in the first quarter. As an acknowledged all-round provider of customized communications and security solutions, we aim not only to achieve organic growth in our existing markets in 2008, but also to make further acquisitions by continuing our buy and build strategy and so advance into new markets.
Our aim is to grow earnings per share to €2 in 2008, an increase of more than 30% over 2007. Our goal is for sales to exceed the €200 million mark this year. This will depend on the extent to which and when the next steps in the buy and build strategy can be implemented. We are also aiming for a target EBIT margin of 8-11% in 2008.
The fine order situation, large order books and currently good prospects for new large orders confirm our outlook for 2008, as well as our market positioning to date and the continuation of our corporate strategy.
euromicron AG (www.euromicron.de) is one of the leading solution providers of communications systems and security networks and boasts production expertise in the field of fiber optics technology.