Elektrobit Group Oyj - EB, ELEKTROBIT CORPORATION, LOWERS THE NET SALES AND OPERATING PROFIT FORECASTS FOR THE FIRST HALF OF 2008
June 19, 2008
EB, ELEKTROBIT CORPORATION, LOWERS THE NET SALES AND OPERATING PROFIT FORECASTS FOR THE FIRST HALF OF 2008
STOCK EXCHANGE RELEASE
Free for publication on June 19, 2008 at 1.15 pm. (CET+1)
EB, ELEKTROBIT CORPORATION, LOWERS THE NET SALES AND OPERATING PROFIT FORECASTS FOR THE FIRST HALF OF 2008
EB expects the net sales for the first half of 2008 to grow clearly compared to the second half of 2007 (EUR 79.9 million), but the latter part of the half is expected to fall behind from the first quarter (EUR 47.3 million). Earlier the company estimated the net sales of the latter part of the year half to be roughly at the level of the beginning of the year.
The operating loss from business operations without non-recurring items in the first half of 2008 is estimated to be relevantly bigger than the operating loss from business operations in the second half of 2007 (EUR -7.9 million). Earlier the company estimated the operating loss from business operations without non-recurring items in the first half of 2008 to be roughly at the same level of the operating loss in the second half of 2007.
The sales of the Business Segments of the first half of 2008 are estimated to grow slower than forecasted earlier. The main reasons for this are the rapid deceleration of the sales of wireless communications emulation and design tools especially in the USA and Asia apart from China, and the delay of the accumulation of net sales of WiMAX base station module products.
In addition, EB has reviewed the goodwill valuations of the RFID reader system business belonging to the Wireless Business Segment, and has resulted in a write-off of approximately EUR 2.8 million. On May 7, 2008, the company announced that the non-recurring items in the first quarter would affect negatively the operating loss in the first half of 2008 by EUR 2.9 million. In total these non-recurring items will decrease the operating result of the first half of 2008 by EUR 5.7 million.
EB publishes its second quarter 2008 interim report on August 8, 2008.
EB, Elektrobit Corporation
The Board of Directors
FURTHER INFORMATION:
Pertti Korhonen
CEO
Tel. +358 40 344 5148
Outi Torniainen
Director, Corporate Communications
Tel. +358 40 512 1375
DISTRIBUTION:
OMX Nordic Exchange Helsinki
Principal media
EB, Elektrobit Corporation
EB creates advanced technology and turns it into enriching end-user experiences. EB is specialized in demanding embedded software and hardware solutions for automotive and wireless industries. The net sales for the year 2007 totaled MEUR 144.3. Elektrobit Corporation is listed on OMX Nordic Exchange Helsinki.
www.elektrobit.com
