Elektrobit Group Oyj - ELEKTROBIT CORPORATION (EB) RAISES ITS OPERATING RESULT GUIDANCE FOR 2013 DUE TO BETTER THAN EXPECTED LAST QUARTER AND GIVES MORE PRECISE NET SALES OUTLOOK FOR 2013
December 17, 2013
ELEKTROBIT CORPORATION (EB) RAISES ITS OPERATING RESULT GUIDANCE FOR 2013 DUE TO BETTER THAN EXPECTED LAST QUARTER AND GIVES MORE PRECISE NET SALES OUTLOOK FOR 2013
STOCK EXCHANGE RELEASE
Free for publication on December 17, 2013, at 7.10 p.m. (CET+1)
ELEKTROBIT CORPORATION (EB) RAISES ITS OPERATING RESULT GUIDANCE FOR 2013 DUE TO BETTER THAN EXPECTED LAST QUARTER AND GIVES MORE PRECISE NET SALES OUTLOOK FOR 2013
Elektrobit Corporation (EB) raises its profit guidance for 2013 due to the better than expected last quarter. The reason for the improvement of the last quarter is higher than expected net sales and better profitability in projects in the Automotive Business Segment. EB expects the operating result of the whole year 2013 to be approximately at level of EUR 8 million (restated operating profit without non-recurring items of EUR 5.1 million, in 2012). Net sales is expected to grow slightly more than expected in the last quarter and net sales of 2013 to be approximately at the level of EUR 200 million (restated net sales of EUR 173.9 million, in 2012).
As estimated earlier the operating profit in 2013 in the Automotive Business Segment will accumulate mainly during the second half of the year (EUR 1.2 million, 1H 2013). This is affected by the higher software license sales during the latter half of the year and other seasonality factors, as well as the demand for EB's automotive software solutions that has remained good during the end of the year.
In the Wireless Business Segment the operating result in the second half of 2013 is expected to be at the same level or lower than in the first half of 2013 (EUR 0.1 million, 1H 2013). The Wireless Business Segment started cost saving measures in August 2013 due to the decreased order volume from a large customer of EB and due to the delays in some special terminal projects. With these measures EB estimates to achieve EUR 0.8 million cost savings, which will materialize mainly during the fourth quarter. In the fourth quarter, in addition to R&D service sales, there will be product based income from the authority markets in the Wireless Business Segment.
Earlier in the Interim Report released on November 7, 2013 EB expected for the year 2013 that net sales will grow and operating result will be at the same level as it was in 2012 without non-recurring items (restated net sales of EUR 173.9 million, and restated operating profit without non-recurring items of EUR 5.1 million, in 2012).
The non-recurring net profit of about EUR 24 million, resulted from the sale of the Test Tools product business, has no impact on the operating result of 2013 and therefore has no impact on the operating result guidance. All profits and costs related to the mentioned business will be presented in the Financial Statement bulletin in the group's income statement, below operating profit under "result for the period from discontinuing operations".
The profit outlook for the year 2013 does not include possible non-recurring income or costs related to the reorganization cases of TerreStar Networks Inc. More information about the reorganization cases of TerreStar Networks and the amount of the receivables and collecting the receivables as well as other uncertainties regarding the outlook is presented in the Report by the Board of Directors 2012 available at www.elektrobit.com/annualreport .
EB will publish its Financial Statement Bulletin on February 20, 2014 at 8.00 am.
Oulu, December 17, 2013
Elektrobit Corporation (EB)
Board of Directors
Further information:
Jukka Harju
CEO
Tel. +358 40 344 5466
Distribution:
NASDAQ OMX Helsinki
Principal media
Elektrobit (EB)
EB creates advanced technology and turns it into enriching end-user experiences. EB is specialized in demanding embedded software and hardware solutions for wireless and automotive industries. The net sales from continuing operations in 2012 totaled MEUR 185.4. Elektrobit Corporation is listed on NASDAQ OMX Helsinki. www.elektrobit.com
