Kontron starts 2017 without a loss

  • Revenues of € 92.4 million comparable to prior year (1Q16: € 89.5 million)
  • Net result for the period of € 150k marks a return to the profit zone (1Q16: net loss of € 6.5 million)
  • Merger plans on track

Augsburg, May 5, 2017Kontron AG, a leading global provider of Embedded Computer Technology (ECT), presents its key financials for the first quarter of 2017.

In line with the guidance announced by the company for 2017, revenues of € 92.4 million roughly match the prior year (1Q16: € 89.5 million). Order intake in the first quarter of 2017 stood at € 82.1 million, representing a book-to-bill ratio of 0.89.

On a pleasing note, EBIT improved to € 2.2 million (1Q16: € -6.1 million). The net result for the period of € 150k (1Q16: a net loss of € 6.5 million) is back in the profit zone again for the first time since 2015. This improvement in earnings results from a more favorable product mix in the first quarter combined with a significant decrease in operating expenses of € 3.5 million. These cost savings are largely a result of the restructuring program initiated in November 2016.

“The worst is over,” claims Hannes Niederhauser, CEO of Kontron. “After concluding the most difficult year in Kontron’s history in 2016, we returned to profit in the first quarter posting net result for the period of € 150k. This has made us optimistic, but we are still cautious. In terms of technology, we must start catching up with the field and improve our order intake. This means we must rapidly complete the merger between S&T and Kontron to combine the strengths of the two companies and develop innovative Industry 4.0 products.”

Merger plans on track

On May 2, 2017 Kontron AG announced that the Supervisory Board of Kontron AG had approved the conclusion of a merger agreement between Kontron AG and S&T Deutschland Holding AG. The Supervisory Board of S&T Deutschland Holding AG issued their approval to conclusion of the merger agreement on the same day. The merger agreement requires the approval of the general meetings of Kontron AG and S&T Deutschland Holding AG. The respective general meetings will be held on June 19, 2017 and June 20, 2017.

Outlook 2017

The Management Board is forecasting similar revenues and seasonal fluctuations in fiscal year 2017 as in the 2016 fiscal year. The gross profit margin is expected to rise to over 25 % on account of the partnerships with Ennoconn and S&T. In addition, the Management Board expects EBIT to be positive in 2017. The new restructuring program is expected to produce annual cost savings of over € 15 million, most of which were already realized in the first quarter of 2017.

Key performance indicators for the first quarter of 2017

 

 

Q1/17

Q1/16

Δ

Order intake

€ million

82.1

79.9

2.8 %

Revenues

€ million

92.4

89.5

3.2 %

Book-to-bill ratio

pp

0.89

0.89

 -

EBIT

€ million

2.2

-6.1

8.3

Net result for the period

€ million

0.2

-6.5

6.7

Cash flow from operating activities

€ million

1.5

6.9

-5.4

 

 

 

 

 

 

 

 

 

 

About Kontron:

Kontron, a global leader in embedded computing technology and a pioneer in secure IoT platform solutions, provides a combined portfolio of hardware, middleware and services. With its leading-edge standard products and solution ready platforms, Kontron enables new technologies and applications across multiple industries. As a result, customers benefit from accelerated time-to-market, reduced total cost of ownership, product longevity and the best overall application with the highest reliability in embedded technology. Kontron is a listed company. Its shares are traded in the Prime Standard segment of the Frankfurt Stock Exchange and on other exchanges under the symbol "KBC". For more information, please visit http://www.kontron.de

For additional information:

Alexandra Habekost
Head of Investor Relations & Corporate Communications
Kontron AG
Tel: +49 (0) 821 4086 114
Alexandra.Habekost@kontron.com

 

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