Amaro (Udine), le 14 novembre 2008
- Chiffre d'affaires consolidé : +25 % de 50,22 millions d'euros à 62, 81 millions d'euros
- Bénéfice brut consolidé : +40 % de 24,78 millions d'euros à 34,68 millions d'euros
- ebitda consolidé : en hausse de -0,37 million d'euros à 3,35 millions d'euros
- EBIT consolidé: de -3,60 millions d'euros à -2,49 millions d'euros
- EBT consolidé : de -2,71 millions d'euros à -4,97 millions d'euros
- Net financial debt: E -9.07 million
Today the Board of Directors of Eurotech SpA reviewed and approved the results relating to the first nine months and third quarter of 2008 and also co-opted three new directors.
FIRST NINE MONTHS 2008
In the first nine months of the year (9M08), Group sales revenues grew by 25% over the same period in 2007 (9M07), rising from E 50.22 million (mn) to E 62.81 mn. 9M08 results featured the change in the consolidation area due to acquisition of the Japanese Group Advanet, completed during the second half of 2007. By way of example, we point out that based on straight-line 9M07 exchange rates, consolidated revenues would have been E 67.20 mn and therefore would have shown total growth of 33.8% YoY.
Gross profit in 9M08 amounted to E 34.68 mn (+40% vs. 9M07) with a 55.2% margin on sales, with clear growth vs. 9M07 (E 24.78 mn with a 49.3% margin on sales). This was by virtue of the combination of three main factors: business model followed by the Group, based on the sale of premium products; the contribution of the Japanese group, in terms of higher profit margins; and a decrease in COGS, thanks to the better integration and harmonisation of purchasing processes among the Group's affiliates.
EBITDA in 9M08 was positive by E 3.35 mn, with a tangible increase vs. E -0.37 mn in 9M07. EBITDA margin on sales also improved, rising from -0.7% to 5.3%. The corporate policy of integration between group companies and the consequent activation of synergies and economies of scale between the various affiliates, with special reference to the USA, has led to natural and tangible reduction of costs already as from this last quarter. Moreover, in 9M08 the higher revenues achieved also with higher margins led to better absorption, in outright terms, of operating costs, which in Eurotech's case are prevalently fixed.
EBIT amounted to E -2.49 mn, with -4.0% margin on revenues, whereas in 9M07 it was E -3.60 mn with a -7.2% margin on revenues. 9M08 EBIT, even if better than 9M07 EBIT, was significantly affected by the non-cash effects of depreciation & amortisation of the PPA (purchase price allocation) relating to the acquisitions of Applied Data Systems Inc., the Arcom Group, and the Advanet Group: the negative effects of PPA amounted to E 3.50 mn in 9M08 and to E 1.69 mn in 9M07.
There was a pre-tax loss of E -4.97 mn (vs. a loss of E -2.71 mn in 9M07). Stripped of the effects of PPA, the pre-tax figure would be E 0.59 mn (vs. E -1.02 mn in 9M07). Compared with 9M07, 9M08 was significantly weighed down by adverse foreign exchange differences and interest for discounting to present value (for a total of E 2.06 mn) stemming from recognition already as at 31 December 2007 of financial debt against valuation of 25% of share capital of the Japanese subsidiary Advanet. In addition, the 9M08 pre-tax result was also affected by lower financial income following reduction of cash resources, which were used at the end of 2007, together with higher interest expense arising from loans taken out to service acquisitions.
In 9M08 the Group's net loss amounted to E -6.31 mn vs. E -2.69 mn in 9M07. With elimination of the non-cash effects of PPA, the result would have been E -2.99 mn (vs. E 1.64 mn in 9M07).
As at 30 September 2008, the Group featured net financial debt of E -9.07 mn vs. E -6.38 mn at 2007 year-end. The increase was mainly due to the increase (E 2.06 mn) of (a) the amount of non-current business-combination liabilities due to the effect of interest and (b) foreign exchange losses recognised, even if not carried out, on the fair-value financial liability for the put OPTION on 25% of Advanet Inc. shares, exercisable in the early months of 2010.
Once again as at 30 September 2008, the Group's net working capital amounted to E 27.17 mn, in line with E 27.15 mn reported as at 31 December 2007.
THIRD QUARTER OF 2008
In the third quarter of 2008 (3Q08) Group revenues grew by +40.1% over the same period in 2007 (3Q07), rising from E 14.77 mn to E 20.69 mn. This increase reflected the effect of the Advanet acquisition, completed on 31 October 2007.
Gross profit in 3Q08 amounted to E 11.38 mn (+62.3% vs. 3Q07) with a 55% margin on sales, in line with that for 9M08.
EBITDA in 3Q08 totalled E 1.67 mn (with an 8.1% margin on sales) vs. E -1.05 mn in 3Q07. The quarter benefited from cost reduction due to rationalisation and integration between the various group companies. The adverse effects on EBITDA of PPA (purchase price allocation) were zero in 3Q08 whereas in 3Q07 they amounted to E 20 thousand.
Notwithstanding the higher depreciation & amortisation posted in 3Q08 compared with 3Q07, EBIT was positive by E 0.16 mn vs. E -2.15 mn in 3Q07. The negative effects of PPA on EBIT amounted to E 424 thousand in 3Q07 and to E 887 thousand in 3Q08.
There was a pre-tax loss of E -0.83 mn with a -4.0% margin on sales, as compared with E -2.01 mn in 3Q07.
In 3Q08 the Group's net loss amounted to E -1.24 mn vs. E -1.79 mn in 3Q07.
Pursuant to Article 154/2, paragraph 2, of the Italian Consolidated Finance Act (Legislative Decree 58/1998), the financial reporting manager of Eurotech SpA, Sandro Barazza, herewith declares that the financial disclosure contained in this press release corresponds to documentary evidence, corporate books, and accounting records.
THE EUROTECH GROUP
Eurotech (ETH.MI) is a company active in the research, development, production and marketing of miniaturised computers (NanoPCs) and high-performance computers (HPCs).
Company contacts:
Investor relations
Andrea Barbaro
Tel. +39 0433-485411
e-mail: a.barbaro@eurotech.com
Communication department
Cristiana della Zonca
Tel. +39 0433-485411
e-mail: c.dellazonca@eurotech.com
Press office
Community
Marco Rubino
Tel. +39 02-89404231
e-mail: marco.rubino@communitygroup.it
ANNEXES - FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED BALANCE SHEET
NET FINANCIAL POSITION
NET WORKING CAPITAL
COOPTING OF DIRECTORS
Amaro (Udine), November 14, 2008 - Today the Board of Directors of Eurotech SpA, after having formally taken note of the resignation of the directors Dino Feragotto, Roberto Chiandussi and Giorgio Pezzulli, submitted on November 5, 2008, co-opted as directors Filippo Bagnato, Giovanni Soccodato, and Maurizio Tucci.
Mr. Soccodato is Senior Vice President Strategy of Finmeccanica; Mr. Bagnato is Director of Technical, industrial and commercial development of Finmeccanica; and Mr. Tucci is Chief Executive Officer of SELEX Communications.
The Company expresses its appreciation to Mr. Feragotto, Mr. Chiandussi and Mr. Pezzulli for their contribution to the activities of the Board of Directors and welcomes the new Directors.
The CVs of the new directors can be consulted on the Eurotech Group's website at the following link:
http://www.eurotech.com/EN/investors.aspx?pg=Consiglio%20 EUROTECH GROUP
Eurotech (ETH.MI) is a company active in the research, development, production and marketing of miniaturised computers (NanoPCs) and high-performance computers (HPCs).
Company contacts:
Investor relations
Andrea Barbaro
Tel. +39 0433-485411
e-mail: a.barbaro@eurotech.com
Communication department
Cristiana della Zonca
Tel. +39 0433-485411
e-mail: c.dellazonca@eurotech.com
Press office
Community
Marco Rubino
Tel. +39 02-89404231
e-mail: marco.rubino@communitygroup.it
Copyright Hugin
The appendixes relating to the press release are available on:
http://www.hugingroup.com/documents_ir/PJ/CO/2008/146118_ Ce communiqué de presse est diffusé par Hugin. L'émetteur est seul responsable du contenu de ce communiqué.
[CN#146118]
