ANDOR TECHNOLOGY PLC Andor Defies Global Downturn with Strong Interim Results Interim Results for the Six Months ended 31 March 2009 Belfast, Tuesday 21 April 2009 - Andor Technology plc (AND.L), the leading developer and manufacturer of high performance digital cameras for academic, industrial and government applications globally today announces interim results for the six months ended 31 March 2009. Financial Highlights . Turnover up 40% to GBP16.1m (H1'08: GBP11.5m) . EBITDA up 95% to GBP2.3m (H1'08: GBP1.2m) . *Operating profit up 102% to GBP1.6m (H1'08: GBP0.8m) . *PBT up 107% to GBP1.7m (H1'08: GBP0.8m) . *EPS up 99% to 5.12 pence (H1'08: 2.57 pence) . GBP2.5m cash generated in the six month period * Pre exceptional items Operational Highlights . US sales up 60% driven by focus on OEM . Systems division sales up 66% and first systems sales in China . Successful mid-range product launches (iVac, Clara) with more to follow . New design contract win worth USD2.1m for delivery by 2010 . Record order book entering second half of financial year . Well positioned to benefit from stimulus plans Commenting on the results Conor Walsh, Chief Executive, said:"In December 2007 we said the new strategy for the business would deliver from 2009 and onwards and to date that has been the case. We are seeing the benefit of many of the strategic initiatives launched at that time, but the better news is that there is more to come. Clearly this has been an exceptional period and it is important we set realistic and achievable expectations for the business going forward. There will be bumps in the road, but the business is now on a sound footing, delivering real profit and cash, with a clear strategy and full product roadmap." - ends - For further information, please contact: Andor Technology plc Conor Walsh, Chief Executive Tel. +44 (0) 28 9023 7126 Singer Capital Markets Jeff Keating, Joint Head Corporate Finance Tel. +44 (0) 20 3205 7500 Visit: www.andor.com Notes to Editors: Andor Technology plc (www.andor.com) is at the forefront of developing and manufacturing instruments for the global scientific imaging and spectroscopy markets. The company's range of CCD and intensified CCD camera systems are used throughout the world for academic, industrial and government research across a wide range of fields such as biotechnology, physics and chemistry. Using Andor products these customers can break new ground by performing experiments that have previously been considered impossible. Independently conducted customer research confirms that Andor's low-light solutions are considered world beating. Established in 1989, Andor's corporate headquarters are in Belfast, Northern Ireland. Operating in a global market, Andor's US headquarters opened in Connecticut in 1997. Andor has regional sales offices in Europe, the US, Japan and China. The company is quoted on the London Stock Exchange's AIM market and commenced dealings in its Ordinary Shares in December 2004 (AND.L). Financial Overview This year we celebrate 20 years in business at Andor, so I am especially pleased to report the Company delivered exceptional financial performance for the first six months to 31 March 2009. The results are even more remarkable given the economic backdrop that exists now and during the period. Trading has been in excess of market expectations, with every region and sector delivering significant growth over the same period last year. The strategy outlined in December 2007 is now delivering real profitability and, while favourable currency movements are playing a part, the underlying business is strong and the outlook for the remainder of the year is good. Sales have grown 40% to GBP16.1m (H1'08: GBP11.5m) and operating profit pre exceptional has grown 102% to GBP1.6m (H1'08: GBP0.8m). This has resulted in earnings per share increasing 99% to 5.12 pence (H1'08: 2.57 pence). Cash conversion from operating profit was 197% driven by favourable working capital movements and net cash generated in the period was GBP2.5m. Sales grew across all geographic regions. In the US sales have grown 60% largely due to a shift in focus to OEM opportunities in 2008 and the contract win that year against which we are now delivering. In Asia Pacific sales continue to grow strongly, increasing 28% and sales to Europe are up 38% on the same period last year. More than 90% of our sales are outside of the UK and so the weakening of Sterling against the major currencies in the period has had a material impact on profitability. That said, we forward contract a significant proportion of our currency exposure and so we have not yet fully benefited from this movement. The volatility of exchange rate movements and the current uncertain economic backdrop makes it difficult to forecast future currency impacts, however we will continue our forward contract strategy. Research and development expenditure was 11.3% of sales (H1 2008: 11.2%). This amount includes impairment provisions on certain intangibles which in the current period amounted to GBP0.4m (H1 2008: nil). Operating margins pre exceptional grew to 10.2% from 7.1% and EBITDA margins increased to 14.5% from 10.4%. The tax charge for the period of GBP287,000 equates to 18% of profit before tax. This tax rate benefits from tax credits received against research and development expenditure. Cash from operating activities was GBP3m, an increase of 190% over the same period last year. Capital expenditure was GBP0.3m, a reduction of GBP0.5m and the net cash inflow after financing costs was GBP2.5m (H1'08:GBP0.2m). At the balance sheet date the Company had cash of GBP6.7m and net cash of GBP4.5m. Stock grew by GBP1.9m however a significant proportion of this will be delivered to customers in Q3 of our financial year. Segment Review: Systems Division Last year sales in this segment grew by 109% and we said in our annual statement that 2009 would be a year of consolidation. I am delighted to report that sales have grown a further 66% in the first six months of this financial year, which is a remarkable performance following on from the growth of last year. In the period we also sold our first systems in China to the universities of Hefei and Wuhan. This is central to further growth as China is an important developing market for Andor. We continue to invest in the systems division and plan for a major new product launch in the second half of calendar year 2009. Segment Review: Scientific Research Sales to our scientific research customers grew by 39% compared to the same period last year, with particularly strong performance achieved in Europe and Asia Pacific. Our strategy is to expand the product portfolio and therefore significantly increase the addressable market. During the period we launched two cameras, the iVac and the Clara, both of which add to our mid-price point camera range. Scientific research is a core market for Andor and we have invested heavily in this area over the past two years and further product launches are planned. In this segment, Andor is well positioned to benefit from the announced stimulus plans both in the US and Japan. Segment Review: OEM Increasing OEM sales is a target growth area for Andor to better balance our exposure to the scientific research market, and to provide volume repeat business for our manufacturing facility. I am pleased to report we have reversed the decline of 2008 and grown sales to OEM customers by 23%. This is an especially strong performance given our customers' product is typically a major capital investment for the end user, something that is challenging in the current financial climate. I am also pleased to report we have won a new design contract worth USD2.1m for delivery by 2010. This project, for the development of a new camera, has the potential to lead to significant sales of product in subsequent years. Our security contract is now complete and has been delivered to the customer's satisfaction. We have been informed that the test phase has been extended by the end user and no production units will be sold in 2009. This has no impact on our projections as we were aware of this risk and had not forecast any sales. Outlook In December 2007 we said the new strategy for the business would deliver from 2009 and onwards and to date that has been the case. We are seeing the benefit of many of the strategic initiatives launched at that time, but the better news is that there is more to come. Clearly this has been an exceptional period and it is important we set realistic and achievable expectations for the business going forward. There will be bumps in the road, but the business is now on a sound footing, delivering real profit and cash, with a clear strategy and full product roadmap. We believe the current markets offer opportunities for consolidation and that is something we will be turning our attention to over the coming year. Conor Walsh Chief Executive 21 April 2009 Click on, or paste the following link into your web browser, to view the associated Results in PDF format. http://www.rns-pdf.londonstockexchange.com/rns/8723Q_1-2009-4-20.pdf This information is provided by RNS The company news service from the London Stock Exchange END
Contact Information: Contacts: RNS Customer Services 0044-207797-4400 http://www.rns.com