Kontron AG reports second-quarter business upturn – result burdened by risk provision

• Second-quarter revenue rises to EUR 116.1 million
• New order intake amounts to EUR 168.8 million
• Result burdened by EUR 34 million risk provision

Eching, Munich, July 27, 2010. Kontron AG reported a marked upturn in business trends in the second quarter of 2010, achieving revenue of EUR 116.1 million (prior year EUR 111.0 million). The low-margin Electronic Manufacturing Services (EMS) - business was wound down entirely. First-half revenues of EUR 213.8 million were still slightly below the previous year's level (EUR 217.6 million). Growth of approximately 10 percent compared to the prior-year period was nevertheless achieved in the strategic core ECT business when taking into account the strategic renunciation of revenue from the EMS business. Particularly in Europe, the slight economic upturn, particularly in the mechanical engineering sector, made itself felt in a positive way. Second-quarter new order intake performed at EUR 168.8 million. The order book position has risen since the start of the year (EUR 305.9 million) to currently EUR 398.1 million.

The strategic concentration on the high-margin core embedded systems business was reflected in the second quarter in an increase in the gross margin to 32.0 percent, compared with 30.4 percent in the prior-year period. Operating earnings (EBIT) of EUR 8 million were achieved in the second quarter. This figure was at the previous year's level as a consequence.

After the Kontron AG Management Board formed a EUR 34 million risk position in early July for outstanding receivables due from customers in Malaysia, Taiwan and Hong Kong, these outstanding receivables were fully written down in the second-quarter Kontron balance sheet. After the payment of the dividend for the 2009 financial year and financial expenses for the acquisition of AP Labs, cash and cash equivalents amounted to EUR 44.4 million, compared with EUR 71.6 million at the end of the first quarter.
In view of the strong new order intake, and the increasingly robust global economy, the Kontron Management Board anticipates stable business trends for the second half of 2010.


Investor Relations:

Gaby Moldan
Kontron AG
Oskar-von-Miller-Str. 1,
85386 Eching ,
Tel: 08165/77212, Fax 08165/77222
Email: Gaby.Moldan@kontron.com

For further information:
Dr. Udo Nimsdorf
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Am Schlosspark 15,
82131 Gauting
Tel. 089-89 35 633, Fax: 089-89 39 84 29