ADB Group delivers a mid-period business update
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ADB Holdings S.A. /
ADB Group delivers a mid-period business update
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* Business transformation underway
* Q1 revenue short but profitability ahead of management expectations
* Changes in the management structure
* Business development progressing satisfactorily
* Revised guidance for full-year 2011
* Dividend proposal for AGM confirmed to be 1.0 CHF/share
Geneva - 28 April 2011
Advanced Digital Broadcast Holdings S.A. (SIX: ADBN) gave today an update on the
development of its business.
During the first quarter of the year, the ADB Group underwent significant
changes in its structure. The company has now three strategic divisions:
Broadcast, Broadband and Emerging Business. The company also further streamlined
its operations and trimmed its headcount, which actions are expected to bear
fruit during the second half of 2011 due to the time element involved in these
measures.
The new broadband business continues contributing positively to the company
revenue and profitability. It is worth noting that the customer services
increased significantly their contribution to the Group profit line, and are
expected to grow further. This follows the Group strategic move to emphasize
services and solutions. The business development work of the year has started
well, achieving the previously reported steps in the US cable market and further
progress in the European landscape.
The high-end products form a significant majority of the Group product sales, as
before. The revenue development during the course of the first quarter fell
short of management expectations, largely due to the economic recovery being
slower than anticipated. Most of the demand came from cable, satellite and
broadband segments, while IPTV and terrestrial lagged behind of the original
forecast. The Group has also decided to scale down most of its retail and
digital terrestrial business, with the exception of products necessary to serve
its most important B2B customers. Implementing this change will impact the Group
consolidated revenue line, but is expected to improve the margin potential.
During the first quarter the Group recorded better than expected profitability,
due to effective cost control. However, the EBIT forecast for the year currently
shows lower than anticipated levels due to the shortfall in the revenue line,
and the restructuring efforts needed.
Consequently the Group has now revised 2011 full-year guidance downwards as
follows:
* Revenue growth to be in a range of 30%
* EBIT% (before M&A and integration costs) will remain positive
Mr. Andrew Rybicki, the Chairman and CEO, commented: "This is clearly a
transformational year for the ADB Group, caused mainly by the acquisition of the
new type of business and know-how, as well as by accelerated development of the
service-oriented activities. The integration of the new broadband business into
the Group is going well, allowing us to target its completion in Q1 of 2012. The
business development side has also done well during the Q1, and I expect it to
continue on this positive trajectory. On the other hand, it became crystal clear
that more profound changes were necessary in the structure of our core business
and its management, so we took advantage of the momentum and implemented them at
the same go. It is my firm belief that the Group will be better off after this
restructuring, and that the results will be beneficial for the years to come."
The Board of Directors also confirmed to the company that they will be putting
forward a proposal for a dividend for 1.0 CHF per share to be distributed to the
shareholders, in the forthcoming Annual General Meeting of the Shareholders.
The management of ADB Group will hold a conference call on this business update
today, at 13:00 Central European Time (CET). To connect to the conference call,
participants should dial the following number: +41 (0) 44 580 6398.
Participant pass code is "ADB".
This press release and further information on ADB Group can be found on the
Group's website at www.adbholdings.com
For further information please contact:
Tina Nyfors
Investor Relations and Group Communications
Tel: +41 22 592 8433
t.nyfors(at)adbglobal.com
-end-
About ADB Group (SIX: ADBN)
ADB Group (www.adbholdings.com) was founded in 1995 and is a leading developer
of solutions required to view and interact with digital TV broadcast and
broadband through cable, satellite, terrestrial and IP networks. The Group sells
a broad range of products and services, including software, consumer premises
devices, system integration and after sales services, The development and sales
of the Group's products and services are conducted through the brands ADB
(www.adbglobal.com) and ADB Broadband (broadband.adbglobal.com).
This press release contains forward-looking statements. You are cautioned that
any such forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and that actual results may differ materially
from those in the forward-looking statements as a result of various factors,
among which:
* future developments of the world digital TV and broadband market, in
particular the future demand for products in the key markets and from key
customers served by our Group;
* pricing pressures, competitive market situation;
* our and the industry's capability to successfully and timely innovate and
develop challenging technology, and our capability to hire and retain high-
level employees;
* changes in the exchange rates between the US$ and the main other operating
currencies of the Group, including the Euro and the Polish Zloty;
* our ability in an intensive competitive environment, to continue securing
orders from existing or new customers and to achieve our pricing
expectations for volume supplies of new products in whose development we
have or are currently investing;
* the ability of our suppliers to meet our demands for supplies, qualitatively
or quantitatively, and to offer competitive pricing;
* our gross margin could vary significantly from expectations based on changes
in revenue levels, product mix and pricing, changes in unit costs, and the
timing and execution of shipments ramp-ups;
* changes in the economic, tax, social or political environment, including
import and other duties, military conflict, terrorist activities, as well as
natural events such as severe weather, health risks, epidemics or
earthquakes in the countries in which we, our key customers and our
suppliers operate;
* our ability to obtain required licenses on third-party intellectual property
on reasonable terms and conditions, the impact of potential claims by third
parties involving intellectual property rights relating to our business, and
the outcome of litigation;
* the results of actions by our competitors, including new product offerings
and our ability to react thereto;
Advanced Digital Broadcast Holdings SA undertakes no obligation to publicly
update or revise any forward-looking statements. Advanced Digital Broadcast
Holdings SA reserves the right to amend the information at any time without
prior notice.
The information contained in this press release may not be considered as being a
substitute for economic, legal, tax or other advice and you are cautioned to
base investment decisions or other decisions on the content of this release. You
are recommended to consult your investment advisers or other advisers prior to
making any decision.
This press release is not an offer of securities for sale or a solicitation to
invest in Advanced Digital Broadcast Holdings SA securities. In particular, it
is not an offer of securities for sale in the United States of America, its
territories and possessions. Securities may not be offered or sold in the
United States absent registration or an exemption from registration under the
U.S. Securities Act of 1933, as amended. Advanced Digital Broadcast Holdings
S.A. does not intend to register its securities in the United States of America.
--- End of Message ---
ADB Holdings S.A.
Avenue de Tournay 7 Chambesy Switzerland
ISIN: CH0021194664;
ADB Group delivers a mid-period business update:
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Unternehmensinformation / Kurzprofil:
Datum: 28.04.2011 - 06:01 Uhr
Sprache: Deutsch
News-ID 53950
Anzahl Zeichen: 10176
contact information:
Town:
Chambesy
Kategorie:
Business News
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