ADB Group reports a mid-period business update
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ADB Holdings S.A. /
ADB Group reports a mid-period business update
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* Operating profitability and cash generation in line with expectations
* Good visibility over first half of 2012
* Reorganization progressing well, expected to extend to H1 2012
* Reorganization charges higher than anticipated
* 2011 guidance confirmed
Geneva - 25 October 2011
Advanced Digital Broadcast Holdings SA (SIX: ADBN) gave today an update on the
development of its business.
The Group's business developed according to the management's expectations during
the third quarter of 2011. The top line growth remains subdued due to changes in
the Group business focus, namely scaling down of the terrestrial business,
discontinuation of the retail segment and as a result of still persisting
overall macroeconomic situation.
The Group reorganization efforts started to bear fruit and the operating
profitability, excluding acquisition and reorganization charges, develops
favorably. Reorganization expenses are expected to include the anticipated US$
6-7 million costs plus additional charges of US$ 7-8 million resulting from the
write-off of engineering developments and inventories of the discontinued
businesses.
The Group confirms its guidance for the full year 2011:
* Revenue expected to grow around 15% year-on-year
* EBIT% (before acquisition and reorganization charges) expected to be
positive
The Group notes that EBIT% (before acquisition and reorganization charges) is
expected to be 2-3% of revenue and that acquisition and reorganization charges
are expected to be US$ 13-15 million, out of which approximately US$ 9 million
are 2011 non-cash items. The Group further notes that the pro-forma net profit
in 2011 - which excludes the impact of acquisition and reorganization charges -
is expected to be positive.
The business developed satisfactorily during the third quarter, achieving full
backlog coverage for 2011 and a high visibility for the first half of 2012. Both
Broadband and Broadcast Divisions sales were affected by the overall economic
situation in Europe, causing the operators to hold back on their capital
expenditure during 2011. However, several of the top ten customers have provided
improved business visibility for 2012. At the Emerging Business Division, the
business started to evolve positively and is expected to continue this during
2012, mostly due to the growing contribution from the US cable customers. The
Services Division has been performing ahead of expectations and is projected to
continue its growth in 2012 and beyond. Its contribution to the Group's EBIT, as
well as the gradient of its sales growth, are significant, supporting the Group
strategy of moving towards complete solutions and services.
Integration of the acquired broadband business is proceeding according to the
plan, and the first cross-selling opportunities are now visible. This is
expected to bring positive results in the upcoming 2 - 3 years, as communicated
at the time of the acquisition. Meanwhile, the Group has been progressing with
its reorganization and partially streamlined its operations. The Group targets
to complete the reorganization by the end of 2011, but recognizes the fact that
this process may continue into the first half of 2012.
During the third quarter, the Group continued showing its technology prowess in
various industry trade events and was nominated for and rewarded with industry
awards. It is noteworthy to mention that both nominations and actual awards for
the Group are now playing increasingly in the field of complete solutions (e.g.
Multi-room solution recently awarded at SatKrak in Poland). This confirms the
Group view of the market trends, its strengths in technology and the pertinence
of its business strategy.
Organizational update
Mr. Jas Saini has been appointed Executive Vice President for Strategy and
Technology and a member of the Executive Committee of ADB Group, with immediate
effect. Mr. Saini has been with ADB Group since June 2010.
Management of ADB Group will hold a conference call to comment on this press
release today at 15:00 CET. Participants shall dial the number +41 (0)
44 580 6398 with pass code "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 /Group Communication
Tel: +41 22 592 8433
Fax: +41 22 592 8402
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 through
cable, satellite, terrestrial and IP networks, as well as products and systems
for broadband data communication business. The Group today sells a broad range
of products and services, including connected home multimedia solutions,
software, consumer premises devices, consulting and engineering services and
after sales services for digital Pay TV broadcast operators and broadband
network operators. The Group's sales are conducted through the brands of ADB
(www.adbglobal.com) and Vidiom, and the trademarks of i-Can, Epicentro and
Carbo.
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 due to various factors, among
which:
* future developments of the world digital TV and broadband markets, in
particular the future demand for digital TV and broadband 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, Swiss Franc 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 products for which we have or are currently investing into
development;
* 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 potential related litigations;
* 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 SA
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;
ADBH Business Update 25.10.2011:
http://hugin.info/136393/R/1557358/480766.pdf
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Source: ADB Holdings S.A. via Thomson Reuters ONE
[HUG#1557358]
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Datum: 25.10.2011 - 06:00 Uhr
Sprache: Deutsch
News-ID 79956
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contact information:
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Kategorie:
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