11/16/2005 - In the third quarter of the ongoing business year, Kontron AG, one of the leading manufacturers of Embedded Computer technologies, reported sales of EUR 73.5 million, thereby once again exceeding the record figure of EUR 71.2 million posted in the second quarter. This represents a gain of more than 14 percent over the third quarter of the previous year (EUR 64.3 million). In the first nine months of 2005 total sales came in at EUR 207 million, over EUR 195.2 million in the prior year period, which marks a six percent increase.
In the third quarter, the value of orders at hand also hit a new record in the history of the company at EUR 140.2 million, which is EUR 12.3 million ahead of the prior year quarter and EUR 38.3 million above the past year's figure. In connection with the consistently high volume of design wins in excess of EUR 42 million, the company has announced the continuation of stable growth from quarter to quarter. In terms of regions, growth impulses are emanating mainly from Europe, and especially from Russia. Kontron AG is recording a continuous upward trend on the earnings side: in the third quarter operating earnings (EBIT) climbed to EUR 5.8 million over EUR 5.0 million in the second quarter and EUR 4.4 million in the prior year period. In the first nine months EBIT stood at EUR 14.3 million by comparison with EUR 15.0 million in the same period last year, whereby accounting in 2005 factors in the fictitious costs of the employee stock program for the first time.
Surplus for the period (according to IAS § 1.81 f. before minority holdings) rose in the third quarter to EUR 4.2 million over EUR 3.6 million in the second quarter and EUR 2.9 million in the prior year period. In the first nine months of 2005 the figure stood at EUR 10.6 million over EUR 9.6 million in the same period last year. In the third quarter of 2005 the financial and assets situation of Kontron AG remains sound and stable, as before. Due to stock repurchases the cash holdings declined slightly from EUR 61.3 million in the second quarter to EUR 57.6 million. In the third quarter equity moved up from EUR 224.9 million to EUR 227.8 million. The number of employees, including 756 engineers, remained virtually constant. Kontron AG will be handling the strong increase in orders on hand by expanding existing manufacturing capacities over the next months.
The company plans to ramp up manufacturing capabilities in Asia as well as founding a regional joint venture. In view of the sound order situation the corporation expects the fourth quarter to return additional growth rates over the third quarter, both in terms of sales and earnings, while operating earnings (EBIT) are projected to exceed 10 percent. With a look to the overall 2005 business year, Kontron confirms the forecasted, disproportionately high gains in EBIT earnings compared with sales to EUR 23 million.
In September 2005, Kontron was the only European country to be granted "Premier Status" in connection with the Intel telecommunications partner program. Based on the leading role the corporation holds in the ATCA telecommunications market, Kontron is expecting to generate additional growth the years 2006 and 2007.
A global leader in embedded computer technology and mobile rugged solutions, Kontron supplies a diversified customer base of OEMs, system integrators and application providers in the communications, automation, test and measurement, transportation, medical, military, aerospace and energy markets. The company helps its customers to considerably reduce their time-to-market and to gain a competitive advantage with products including high-performance open computer platforms and systems, single board computers, human-machine interfaces and mobile rugged computers. Kontron employs more than 1,900 people worldwide and has manufacturing facilities in Europe, North America and Asia Pacific. The company is listed on the German TecDAX 30 stock exchange under the symbol "KBC". Kontron is the only European based Premier member in the Intel® Communications Alliance which means earliest access to leading-edge Intel technologies and privileged engineering support.
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