- Consolidated sales increase by 14.3% to €149.8 million
- Consolidated EBIT grows by 19.3% to €10.3 million and EBITDA from €10.8 million to around €13.1 million
euromicron’s strong performance continued in the third quarter of 2010. The euromicron Group has mainly exploited this to strengthen the principles of its long-term strategy, such as a restrictive expenditure policy, tight liquidity management and pooling all technologies so that they can be leveraged for its customers Germany-wide, and so to continue expanding its operational business.
“In fiscal 2010 we have put the focus on integrating and bringing together highly specialized employees and locations so as to pool our extensive know-how in the entire field of network infrastructure,” states Dr. Willibald Späth, Chairman of the Executive Board of euromicron. “Since our market capitalization is now above €100 million, we have been able to increase awareness of euromicron in the capital market and attract greater attention from large analyst departments and research houses. We have also won new and interesting investors who are important for our corporate policy, something that is reflected in the around 50% rise in euromicron’s share over the closing price at the end of 2009,” adds Dr. Späth.
Consolidated sales
In the first nine months of 2010, euromicron generated consolidated sales of €149.8 million, a year-on-year increase of 14.3%.
Consolidated income
Consolidated EBIT rose in the period under review to €10.3 million (previous year: €8.6 million). Operating income of the associated companies was as we expected at €14.8 million (previous year: €13.5 million). EBITDA increased by €10.8 million to approximately €13.1 million. Undiluted earnings per share were €1.17 (previous year: €0.96) on a net profit of €5.6 million (previous year: €4.3 million).
Order situation at the Group
euromicron recorded new orders of €154.0 million in the first nine months of fiscal 2010, a year-on-year increase of 17.6%. In euromicron’s assessment, investments in Germany have not yet peaked. Order books were €100.3 million (previous year: €80.0 million), an increase of 25.4%.
Balance sheet structure
The euromicron Group’s total assets at September 30, 2010, were €192.6 million, up by €6.7 million from December 31, 2009 (€185.9 million).
Personnel
1,073 persons, excluding trainees, were employed by the euromicron Group in the first nine months of fiscal 2010, Personnel costs totaled €41.1 million (previous year: €36.4 million).
Stockholders’ equity
Stockholders’ equity is €86.2 million, around €8.0 million above the level stated in the 2009 financial statements. The equity ratio is 45.8%. The subscribed capital increased by €1.2 million from €11.9 million to €13.1 million as a result of utilization of the authorized capital.
The share
One pleasing aspect was the surge in euromicron’s share in the third quarter. Its price at the beginning of 2010 was still below €16, but four weeks after the reporting date for the third quarter it was more than €23. This good performance can be explained by the company’s good course of business and our stronger investor relations work in the third quarter. Many roadshows, one-on-one meetings, analysts’ conferences, etc., further intensified communication with shareholders and investors with the aim of boosting interesting placements in our company following the retirement of Nord/LB and other investors with a short investment horizon.
German Financial Reporting Enforcement Panel examination:
Despite differences in the understanding and interpretation of individual accounting and measurement regulations between the German Financial Reporting Enforcement Panel (DPR) and euromicron AG’s management and its auditing firm, the examination for 2006 to 2009 was completed with tolerable results for the company. The effects of the discovered errors are offset against stockholders’ equity in the 2010 consolidated financial statements and do not have any impact on euromicron AG’s sales, income and cash flow forecasts.
Outlook
The general economic conditions for our core market of Germany are developing positively and demand for powerful networks and cost-effective applications for voice, data and video transport will continue to grow. We have laid a solid foundation, both in terms of content and structurally, and have the blanket coverage to offer our customers any tailor-made solution of their wish.
Given our successful performance to date in fiscal 2010, we are sticking to our target of achieving total sales of €200 million and an adjusted EBIT of 8–11%. Apart from these economic objectives, we aim to further enhance awareness of the euromicron brand name. We are achieving that more and more thanks to our tried-and-tested quality, solution-oriented expertise and continuation of our active PR and investor relations work.
You can find the Q3/2010 Interim Report as of November 12, 2010, on our homepage at http://www.euromicron.de/en/finanzberichte.
euromicron AG (www.euromicron.de) is an all-round solution provider for communications, data and security networks. Its network infrastructures integrate voice, video and data transport wirelessly, via copper cable and by means of fiber-optic technologies. euromicron builds leading applications, such as security, control, healthcare or surveillance systems, on the basis of these cutting-edge network infrastructures.
Founded on its expertise as a developer and producer of fiber-optic components, euromicron AG is now a strongly growing, highly profitable group that is listed on the stock market, has a medium-sized character and focuses on operational growth, integration and further market penetration, internationalization and expansion.