Kontron AG, hardware, software, smart grids, telecommunications, transportation, security, safety, i
Quarter 2 record revenues Kontron AG raises revenue forecast to more than EUR 570 million
News Release from:
01 August 2011
Kontron AG continued the past months' dynamic business trend in the second quarter, achieving revenue of EUR 145.2 million. This represents about 25 percent growth compared with the prior-year period (EUR 116.1 million). Total revenue is EUR 275.3 million in the first half of 2011 compared with EUR 213.8 million in the first half of 2010. This represents an increase of about 29 percent. The strongest growth rates were achieved in North America (44 percent), but also in the Emerging Markets (23 percent) and Europe (20 percent). In terms of vertical markets, the application areas of industrial automations, energy, medical technology but as well infotainment developed well. At EUR 424 million, the order book position remained at a very high level (previous year: EUR 398 million). Design wins add up to EUR 149 million in the first half-year, compared with EUR 141 million in the prior-year period. In terms of units, the number of design wins increased slightly from 218 to 234.
Revenue up by 29 percent to EUR 275.3 million in the first half-year / EBIT climbs to EUR 18.7 million / Order book position of EUR 424 million remains on a high level / Key technologies of smart grids and smart services as growth-drivers
Kontron AG earnings grew significantly. Operating profit (EBIT) of about EUR 7.4 million in the first three months of 2011 rose to about EUR 11.4 million in the second quarter. EBIT totaled EUR 18.7 million in the first half-year. Net income for the first six months was EUR 12.9 million. A comparison with the prior-year period is meaningful to only a limited extent due to the risk provision that was built in the second quarter of the previous year. The comparable figure before this provision was an EBIT of EUR 10.7 million. With a positive cash flow in the amount of EUR 3.7 million in Q2/11 the cash position stood at EUR 33,3 million after paying the dividend for the 2010 financial year, compared with EUR 43,7 million at the end of the first quarter. Net debt is around EUR 9 million.
Due to the continued high level of the order book position, and the volume of design wins, as well as ongoing demand, the company has raised its revenue forecast from currently EUR 550 million to more than EUR 570 million. In terms of earnings, Kontron estimates an EBIT margin of 8 to 9 percent.
Kontron particularly regards new key technologies such as smart grids, and so-called smart services for intelligent machine-to-machine services in markets such as telecommunications, transportation, security/safety, industry, building automation and healthcare, as growth-drivers for the future. The company has recently signed a long-term technology agreement with the largest operator of energy supply networks in Russia to jointly develop and produce new hardware and software solutions for smart grids in Russia.