Operating cash flow increases to EUR 2.7 million (Q1/2003: EUR 1.7 million)Strong growth in Russia and Asia (+31% compared with Q1/2003)Special amortization of goodwill concludes successful integration of JUMPtecEching near Munich, August 22, 2003. Kontron AG, the world¿s leading supplier of embedded computers, generated sales of EUR 54.1 million (first quarter: EUR 55.2 million) in the second quarter of the current financial year but, increased its operating result (EBITDA) to EUR 4.2 million, compared with EUR 3.6 million in the first quarter. EBIT and net income for the period, both prior to the special amortization, amounted to EUR 2.2 million and EUR 1.4 million respectively (first quarter: EUR 1.4 million and EUR 1 million respectively). Adjusted to take account of USD exchange rate effects, orders on hand were at their previous quarter¿s level of EUR 94 million. The net earnings of EUR ¿31.9 million resulted from a non-recurring amortization amounting to EUR 34.7 million. Kontron is making this adjustment primarily for the goodwill (essentially the fictitious JUMPtec purchase price to be reported in the balance sheet in accordance with US-GAAP) that resulted from the merger with JUMPtec in mid-2002. In the first half of 2003 the Kontron group generated sales of EUR 109.2 million (corresponding period last year: EUR 90.6 million). EBITDA amounted to EUR 7.8 million in the first six months of 2003 (corresponding period last year: EUR 4.8 million). The comparative figures from the corresponding period last year are of only limited significance, since JUMPtec was not consolidated into the Kontron balance sheet until July 3, 2002. Kontron¿s activities in Russia and China are currently showing a particularly positive trend; we are expecting to achieve substantial growth in these regions over the next few quarters. For the financial year as a whole, Kontron is assuming a flat sales trend in connection with a further increase in operating profits.
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