Elektrobit Group Oyj - ELEKTROBIT LOWERS THE REVENUE AND OPERATING PROFIT FORECASTS FOR THE FIRST HALF OF 2007
March 26, 2007
ELEKTROBIT LOWERS THE REVENUE AND OPERATING PROFIT FORECASTS FOR THE FIRST HALF OF 2007
Free for publication on March 26, 2007 at 8.00 am. (EET)
ELEKTROBIT LOWERS THE REVENUE AND OPERATING PROFIT FORECASTS FOR THE FIRST HALF OF 2007
Elektrobit expects the revenue during the first half of 2007 to be on the same level or to grow slightly compared to the second half of 2006 (MEUR 89.6). The operating loss of the first half of 2007 is estimated to more than double compared to the operating loss of the second half of 2006 (MEUR -5.9), with the start of the year being significantly weaker than the latter part of the first half.
Earlier Elektrobit estimated the revenue during the first half of 2007 to grow slightly compared to the second half of the 2006 and the operating profit in the first half of 2007 to be on the same level or slightly more negative than during the second half of 2006, with the start of the year being significantly weaker than the latter part of the first half.
Elektrobit's weakening outlook compared to the previous guidance is based on:
- declined revenue of the Production Solutions Business Unit, which is mainly due to more fierce price competition and weaker demand by certain customers,
- weaker than expected demand in the Mobile Terminal Solutions Business Unit and
- slightly greater than expected research and development investments in the Radio Network Solutions Business Unit.
The company will continue to invest considerably in:
- software platform based products in the Automotive Software Business Unit,
- development of mobile WiMAX radio infrastructure products in the Radio Network Solutions Business Unit,
- expanding the application domain and the product portfolio in the System Test Business Unit,
- improving the price competitiveness and updating the product portfolio in the Production Solutions Business Unit, and
- the technical core competence areas defined in the strategy.
Oulunsalo, March 26, 2007
Board of Directors
Elektrobit Corporation
FURTHER INFORMATION:
Pertti Korhonen
CEO
Elektrobit Corporation
Tel. +358 40 344 3889
Maija-Liisa Fors
Director, Investor Relations
Elektrobit Corporation
Tel. +358 40 344 2875
DISTRIBUTION:
OMX Helsinki
Principal media
About Elektrobit
Elektrobit is a technology company specialized in embedded software and hardware solutions for selected automotive and wireless environments. Elektrobit provides in-car software products and R&D services, advanced mobile terminal R&D services and design as well as mobile WiMAX base station modules and R&D services. Elektrobit's product portfolio also covers testing, material handling as well as process automation tools and equipment. Elektrobit employs some 2,000 professionals in 13 countries. The net sales for the year 2006 totalled MEUR 181.5. Elektrobit Corporation is listed on OMX Helsinki. www.elektrobit.com
