DGAP-News

Kontron AG reports solid Q2 results and confirms 2014 guidance

DGAP-News: Kontron AG / Key word(s): Quarter Results
Kontron AG reports solid Q2 results and confirms 2014 guidance

30.07.2014 / 06:58

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- Revenues from continuing operations of EUR 116.1 million

- Gross margin of 25.9 percent

- Operating profit (EBIT) from continuing operations before restructuring
costs of EUR 3.7 million

Eching near Munich, 30 July 2014 - Kontron AG, a globally leading provider
of Embedded Computer Technology (ECT), delivered a solid performance in the
second quarter of 2014, particularly in order entry and revenues.

Order entry for continuing operations increased by 5.8 percent to EUR 120.4
million (Q2 2013: EUR 113.8 million). Kontron generated revenues from
continuing operations of EUR 116.1 million, after EUR 116.2 million in the
same quarter last year. Taking into account one-off effects resulting from
the switch to a royalty model for two customers in North America as well as
currency effects, revenues increased by 9.7 percent. The book-to-bill ratio
exceeded 1.0 for the third consecutive quarter. The gross margin amounted
to 25.9 percent (Q2 2013: 26.7 percent).

"Our development in the first half of the year is promising and meets our
expectations for the financial year 2014. We are on track - not only
regarding our financial performance, but also in terms of our internal
homework", says Rolf Schwirz, CEO of Kontron AG. "Now, our focus will turn
back primarily to our core business again: providing high-performance ECT
products and services to our customers worldwide. We have already started
to improve our access to the major growth regions in the ECT market in
order to secure future revenues."

Earnings before interest and taxes (EBIT) for continuing operations and
before restructuring costs decreased slightly to EUR 3.7 million, after EUR
4.3 million in the same quarter of the previous year. Earnings in this
quarter were affected by restructuring costs of EUR 1.7 million. Thus, the
reported EBIT for continuing operations increased to EUR 2.0 million (Q2
2013: EUR 0.2 million).

"Our equity ratio of 57 percent underscores Kontron's solid financial
footing", says Michael Boy, CFO of Kontron AG. "On 26 May 2014, we signed
an amended contract for our credit facility. As such, all 'New Kontron'
measures and our plans for further growth are soundly financed."

Cash flow from continuing operations in the second quarter amounted to EUR
-7.5 million, after EUR -2.0 million in the same period of the previous
year. This decrease is mainly due to the increase in trade payables
compared to the prior-year period.