DGAP-News: STRATEC Biomedical AG / Key word(s): Quarter
Results/Interim Report
STRATEC reports nine-month results
24.10.2012 / 07:37
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STRATEC reports nine-month results
- Sales of EUR 87.6 million in 9M/2012
(+9.3%; 9M/2011: EUR 80.2 million)
- EBIT margin of 15.3% in 9M/2012
(9M/2011: 18.8%)
- Consolidated net income of EUR 10.9 million in 9M/2012
(+10.4%; 9M/2011: EUR 9.8 million)
- Earnings per share of EUR 0.93 in 9M/2012
(+9.4%; 9M/2011: EUR 0.85)
- 2012 forecast specified: Sales:
EUR 120 million to EUR 125 million / EBIT margin:14% to 16%
Birkenfeld, October 24, 2012
STRATEC Biomedical AG, Birkenfeld, Germany, (Frankfurt: SBS; Prime
Standard, TecDAX)today announced its results for the period from January 1,
2012 to September 30, 2012 upon the publication of its Interim Report as of
September 30, 2012.
<pre>
Key figures (EUR 000s) 01.01.- 01.01.- Change
09.30.2012** 09.30.2011*
Sales 87,584 80,155 +9.3%
Overall performance 92,379 85,871 +7.6%
EBITDA 16,333 17,636 -7.4%
EBIT 13,357 15,065 -11.3%
EBIT margin (%) 15.3 18.8 -
Consolidated net income 10,865 9,840 +10.4%
Earnings per share (EUR) 0.93 0.85 +9.4%
</pre>
* 2011: The figures are presented in the table on an unadjusted basis.
Adjusted for a one-off item of EUR 1.6 million resulting from a routine tax
audit for the financial years 2005 to 2008, consolidated net income for the
first nine-months of 2011 would amount to EUR 11.4 million and earnings per
share would amount to EUR 0.99.
** 2012: The figures are presented in the table on an unadjusted basis.
Adjusted for a one-off item of EUR 3.3 million incurred in the first
quarter of 2012 due to the income-neutral reclassification of unfinished
services and prepayments received due to the impairment of a development
project, sales for the first nine months of 2012 would amount to EUR 84.3
million and the EBIT margin would amount to 15.8%.
Financial performance
The third quarter of 2012 was characterized by a marked disparity between
highly positive trends in development work and promising advances in the
field of business development (especially new projects) on the one hand and
an unexpectedly poor performance in sales with maintenance and spare parts
on the other. Among other factors, the dip in these sales was chiefly
attributable to lower capacity utilization rates for systems already placed
on the market at end customers (laboratories, blood banks etc.). In recent
months, most of STRATEC's partners have placed consistently high numbers of
new systems with end customers, in some cases accepting that this would
result in lower levels of system capacity utilization. This is because they
expect test volumes to recover, a development which would lead capacity
utilization levels to rise once again and thus benefit STRATEC's partners
in future. In the short term, however, our partners are accepting lower
utilization rates to the extent that these enable customer relationships to
be upheld. This has resulted in longer system servicing intervals and lower
servicing part consumption rates. System sales revenues have continued to
develop positively at high levels. Sales with replacement and maintenance
parts, by contrast, have declined both in nominal terms and as a percentage
of total sales, thus virtually neutralizing the system sales growth.
Nine-month sales grew by 9.3% to EUR 87.6 million. Adjusted for a one-off
income-neutral reclassification of EUR 3.3 million in the first quarter due
to the write-down of a development project, sales growth amounted to 5.2%.
Compared with the same period in the previous year, sales for the third
quarter of 2012 fell by 7.6% from EUR 31.8 million to EUR 29.3 million.
The EBIT margin for the first nine months amounted to 15.3% (adjusted
15.8%), compared to 18.8% in the same period in the previous year. This
reduction in the company's profitability was attributable to the following
factors: a weaker than expected share of sales generated with high-margin
maintenance and spare parts and a lower overall gross margin for systems
newly launched onto the market and whose production and supply chain
process optimization measures have not yet been completed. Moreover, the
difficulties in planning market entry phases in our industry, for example
due to delays in the approval of new systems by our customers, have arisen
with unusual frequency in the current year. As a result, the corresponding
sales will be postponed to the coming year. Furthermore, the company is
continuing its investment programs aimed at stepping up its development
activities. These have resulted in negative earnings contributions from our
main subsidiaries.
At EUR 10.9 million, consolidated net income for the first nine months of
2012 was 10.4% up on the previous year's figure of EUR 9.8 million,
resulting in earnings per share of EUR 0.93 (previous year: EUR 0.85). If
the previous year's figure is adjusted to exclude a one-off tax back
payment of EUR 1.6 million for the financial years 2005 through 2008, the
consolidated net income posted for 2012 fell 5.0% short of the previous
year's figure.
Project development
Further new market launches are expected in the current and subsequent
years. Specifically, two additional market launches by our partners are
foreseen in the fourth quarter of the current year. In liaison with our
partners, it is planned to release further details about the new systems
once their market launches have been implemented.
Preparatory development work has already begun on further new projects
currently under negotiation. STRATEC is optimistic that it will be awarded
follow-up contracts for these projects. These would contribute notably to
STRATEC's sales performance from the 2015 and 2016 financial years. Further
details of these contracts will be published following agreement.
Significant progress is expected to be made in the next two quarters with
optimizing supply and production for analyzer systems recently launched
onto the market. This will enable an enhanced gross margin to be generated
with these systems.
Other developments
During the course of the 2012 financial year, STRATEC plans to convert its
accounting from the total cost method to the cost of sales method, which is
more widespread internationally and should thus help in comparing the
company's performance with that of other players. In this context, parallel
application of the two methods has been made once again in the statement of
comprehensive income in this interim report. This should facilitate
comparison of the two methods. The final conversion will then be
implemented from the start of the next financial year, as of January 1,
2013.
Development in staff totals
Including temporary employees, the STRATEC Group had a total of 524
employees as of September 30, 2012 (September 30, 2011: 484).
Outlook
The company previously expected its sales performance to accelerate in the
second half of 2012, with this chiefly being driven by two further market
launches. Given that these market launches will take place later than
expected, this acceleration has not arisen to the extent previously
anticipated and will only give rise to notable sales growth from the first
half of 2013 onwards. As a result, STRATEC expects to generate sales in a
range of EUR 120 million to EUR 125 million in the 2012 financial year
(previous guidance: EUR 125 million to EUR 139 million). Due to further
market launches and based on our customers' forecasts, we expect to see a
positive sales performance in 2013. The company forecast is planned to be
updated around the time of publication of the 2012 Annual Report in April
2013.
For 2012 to 2014, we are upholding our forecast of expected average sales
growth of 14% to 16% based on the 2011 sales figure (EUR 116.6m).
Accordingly, sales of EUR 151 million to EUR 157 million could be expected
in 2013. The achievement or exceeding of this range is dependent on the
performance of the systems newly launched onto the market at the end of
2012 and on follow-up approvals, as well as on the further progress made
with development projects and associated reclassifications from milestone
payments to sales.
In terms of our costs, margins will continue to be held back by investments
in new development programs. In the medium term, however, the margin is
expected to recover due to benefits of scale arising in particular from the
higher expected share of sales generated with maintenance and spare parts.
Further details can be found in our Interim Report as of September 30, 2012
published at www.stratec.com > Investor Relations > IR News > Financial
Reports.
About STRATEC
STRATEC Biomedical AG (www.stratec.com) designs and manufactures fully
automated analyzer systems for its partners in the fields of clinical
diagnostics and biotechnology. These partners market such systems, in
general together with their own reagents, to laboratories, blood banks and
research institutes around the world. The company develops its products on
the basis of its own patented technologies.
Shares in the company (ISIN: DE0007289001) are traded in the Prime Standard
segment of the Frankfurt Stock Exchange and are listed in the TecDAX select
index of the German Stock Exchange.
Further information can be obtained from:
STRATEC Biomedical AG
André Loy, Investor Relations
Gewerbestr. 37, 75217 Birkenfeld
Germany
Tel: +49 7082 7916-190
Fax: +49 7082 7916-999
ir@stratec.com
www.stratec.com
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Language: English
Company: STRATEC Biomedical AG
Gewerbestr. 37
75217 Birkenfeld
Germany
Phone: +49 (0)7082 7916 0
Fax: +49 (0)7082 7916 999
E-mail: info@stratec.com
Internet: www.stratec.com
ISIN: DE0007289001
WKN: 728900
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
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189911 24.10.2012
DGAP-News: STRATEC reports nine-month results
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