DGAP-News: SMARTRAC reports 16 percent sales growth for the first six months of fiscal year 2011
(firmenpresse) - DGAP-News: SMARTRAC N.V. / Key word(s): Half Year Results
SMARTRAC reports 16 percent sales growth for the first six months of
fiscal year 2011
29.07.2011 / 07:31
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PRESS RELEASE
SMARTRAC reports 16 percent sales growth for the first six months of fiscal
year 2011
- Revenues H1-2011: EUR 93.9 million, an increase of 16 percent on the
EUR 80.8 million generated in H1-2010
- EBITDA H1-2011: EUR 9.5 million compared with EUR 9.8 million in
H1-2010, profitability at 10 percent EBITDA margin
- Dr. Christian Fischer, CEO: 'Market demand returned to a more moderate
level in the first six months of 2011 compared with the magnitude of
2010. This gave us the necessary balance to accomplish strategic
projects as basis for the future success of the company. Besides
broadening our global footprint, we have also taken steps to further
broaden our product and technology range.'
Amsterdam, July 29, 2011 - SMARTRAC N.V., a leading developer, manufacturer
and supplier of RFID transponders, today announces financial figures for
the six-month period ended June 30, 2011. Following strong market growth in
2010, demand as anticipated returned to a more moderate level in the first
six months of 2011. The satisfactory overall market development was however
accompanied by weakening demand in the Cards business. First signs of this
weakening became even clearer in the second quarter of 2011. Especially
business with e-payment card inlays for the U.S. market slowed down. Demand
for card inlays for public transport systems also declined because of
project delays. Due to this market development, the company's card inlay
production capacities were significantly under-utilized in the first six
months of 2011 resulting in a negative effect on the Group's profitability.
In total, SMARTRAC increased revenues by 16 percent in the first half-year
of 2011 compared with the same period a year ago. Total sales for the
six-month period ended June 30 amounted to EUR 93.9 million in
H1-2011compared with EUR 80.8 million in H1-2010. EBITDA decreased slightly
from EUR 9.8 million in 2010 to EUR 9.5 million in 2011. EBITDA margin for
the first half-year of 2011 accounted for 10 percent compared with 12
percent a year ago. Profit for the period amounted to EUR 0.8 million
compared with EUR 5.8 million a year ago. The decrease in profit is mainly
due to the negative development of the financial results in the first six
months of 2011 which is for the most part attributable to conversion
effects based on an unfavorable development of the underlying currencies.
Group Revenues
The SMARTRAC Group generated revenue of EUR 93.9 million in the first six
months of 2011. This represents an increase of 16 percent from the previous
year's figure of EUR 80.8 million. Growth mainly resulted from positive
development in the business units eID, Industry&Logistics, and Tickets&Labels.
Sales in the Security Segment (Business Units Cards and eID) amounted to
EUR 67.9 million in H1-2011 representing an increase of 13 percent compared
with sales of EUR 60.1 million in the same period of 2010. The Security
Segment accounted for 72 percent of total Group revenue in the first six
months of 2011 compared with 74 percent a year ago.
Sales in the Industry Segment (Business Units Industry&Logistics and
Tickets&Labels) accounted for EUR 25.7 million in H1 2011 representing an
increase of 28 percent compared with sales of EUR 20.1 million in H1 2010.
Industry Segment revenues in the first six months of 2011 represented 27
percent of the Group's total revenue compared with 25 percent a year ago.
SMARTRAC Key Financial Figures at a Glance:
Key Financial FiguresGroup EBITDA
in Consolidated 6 Consolidated 6 Change
Thousands of EUR months ended June months ended June in %
30, 2011 30, 2010
Consolidated Income
Statement
Revenues 93,914 80,766 16.3
EBITDA 9,526 9,786 (2.7)
Profit for the period 847 5,769 (85.3)
Financial Position and
Liquidity
Net cash flow provided by 3,824 (1,725) -
(used in) operating
activities
Working capital 47,283 41,976 12.6
Capital expenditure 8,842 8,206 7.8
Total assets 254,982 220,566 15.6
Operating Figures
Basic earnings per share 0.05 0.39 (87.2)
(EUR)
Operating cash flow per 0.23 (0.12) -
share (EUR)
Equity ratio (%) 63 60 4.5
Headcount (at month's 3,435 3,325 3.3
end)
The Group EBITDA of EUR 9.5 million slightly decreased against the previous
year's figure of EUR 9.8 million. This is equivalent to an EBITDA margin of
10 percent compared with 12 percent in 2010. Profitability from January to
June 2011 was affected by the under-utilization of the company's card inlay
production capacities mentioned above and the ongoing change in the product
mix.
EBITDA in the company's Security Segment decreased by 10 percent from EUR
9.1 million in 2010 to EUR 8.2 million in 2011. The Industry Segment
reported EBITDA of EUR 1.7 million in the period from January to June 2011
compared with EBITDA of EUR 1.4 million in the first six months of 2010,
representing an increase of 27 percent.
Profit for the Period
Profit from January to June 2011 decreased by 85 percent from EUR 5.8
million in 2010 to EUR 0.8 million in 2011. This decrease is mainly a
consequence of the negative development of the financial results in the
first half-year of 2011, which is for the most part attributable to
conversion effects based on the unfavorable development of the underlying
currencies.
Financial Position
As of June 30, 2011, total assets amounted to EUR 255.0 million compared
with EUR 248.5 million as of December 31, 2010. The increase in total
assets mainly resulted from an increase in inventories. SMARTRAC's Group
equity amounted to EUR 160.8 million in the first half-year of 2011
compared with EUR 161.6 million as of December 31, 2010, mainly resulting
from ongoing conversion effects based on the unfavorable development of the
underlying currencies. The equity ratio decreased by 2 percentage points as
of June 30, 2011.
Cash provided by operating activities amounted to EUR 5.2 million for the
first six months of 2011, compared with cash used of EUR 0.1 million for
the same period in the previous year. Taking into account interest payments
and receipts as well as payments and net payments for income taxes, net
cash provided by operating activities amounted to EUR 3.8 million in the
first six months of 2011 compared with net cash used in operating
activities of EUR 1.7 million in H1-2010.
Net cash used in investing activities amounted to EUR 33 million as of June
30, 2011, compared with net cash used of EUR 8.9 million for the same
period in 2010. This development in the first half-year 2011 was mainly a
result of the investment of EUR 20.0 million in RFID Technologie B.V. In
addition, an amount of EUR 1.3 million was invested in jointly controlled
entities.
Net cash provided by financing activities amounted to EUR 6.9 million in
the first half-year 2011 compared with net cash used of EUR 0.2 million in
the first six months of 2010. The financing activities in the first six
months of 2011 are related to proceeds from interest-bearing loans and
borrowings, and secured loans.
Business Outlook
SMARTRAC started solidly into the business year 2011. In the course of the
first half-year however, the company experienced a slow-down in demand in
the e-payment and public transportation market segments. The Management
Board is convinced that this weakening is only temporary in nature and that
order entry from these market segments will return to stable growth rates
in 2012. Despite the fact that market growth in 2011 in general is much
slower than the growth rates experienced in 2010, SMARTRAC will generate
higher revenues than in 2010.
'The slow-down in the e-payment and public transportation market is even
more unfortunate given the exceptional magnitude of market growth in 2010,'
said Dr. Christian Fischer. 'We have already taken measures to reduce the
impact of the under-utilization to a level which is in line with the
current situation but we are also taking the anticipated further market
growth into account.'
The SMARTRAC Interim Report for the six month period ended June 30, 2011,
has been published today and is available for download on the company's
website at www.smartrac-group.com.
About SMARTRAC:
SMARTRAC is a leading developer, manufacturer, and supplier of RFID
components for a broad range of applications in all current frequency
standards. The company produces both ready-made and customized transponders
for public transport, access control, RFID-based car immobilizers, animal
identification, libraries, industry, and logistics.
SMARTRAC is the global market leader in high-quality RFID inlays for
electronic passports (e-passports) and contactless credit cards (e-payment)
as well as for RFID transponders for public transportation applications.
SMARTRAC was founded in 2000, went public in July 2006, and trades as a
stock corporation under Dutch law with its registered headquarters in
Amsterdam. The company currently employs some 3,500 employees and maintains
a global research and development, production, and sales network.
If you have any questions, please contact:
Tanja Moehler
Head of Corporate Communications
SMARTRAC N.V.
Phone: +31 20 30 50 157
Email: tanja.moehler(at)smartrac-group.com
Internet: www.smartrac-group.com
Forward-looking statements
To the extent that this press release contains forward-looking statements,
such statements are based on assumptions, planning and forecasts at the
time of publication of this press release. Forward-looking statements
always involve uncertainties. Business and economic risks and developments,
the conduct of competitors, political decisions and other factors may cause
the actual results to be materially different from the assumptions,
planning and forecasts at the time of publication of this press release.
Therefore, SMARTRAC N.V. does not assume any responsibility relating to
forward-looking statements contained in this press release. Furthermore,
SMARTRAC N.V. does not assume any obligation to update the forward-looking
statements contained in this press release.
End of Corporate News
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29.07.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: SMARTRAC N.V.
Strawinskylaan 851
1077 XX AmsterdamNetherlands
Phone: +31 20 30 50 157
Fax: +31 20 30 50 155
E-mail: investor.relations(at)smartrac-group.com
Internet: www.smartrac-group.com
ISIN: NL0000186633
WKN: A0JEHN
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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Datum: 29.07.2011 - 07:31 Uhr
Sprache: Deutsch
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