DGAP-News

Kontron delivers solid Q3, full-year guidance reduced

DGAP-News: Kontron AG / Key word(s): 9-month figures
Kontron delivers solid Q3, full-year guidance reduced

29.10.2015 / 07:00

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- Order intake EUR 111.2 million, minus 17.6 % yoy due to base effects,
but 11.1 % above 2Q15

- Order backlog EUR 320,7 million, down 1.5 % yoy

- Revenues EUR 113.4 million, plus 4.4 % yoy due to currency gains

- Gross margin at 26.7 %, highlighting that cost savings and efficiency
measures are effective

- Adjusted EBIT margin at 4.5 %

- FY revenue guidance reduced to EUR 460 million to EUR 470 million,
gross margin expected above planned 25 %, adjusted EBIT margin expected
slightly below the announced 3 % to 5 % corridor

Augsburg, Germany, October 29, 2015 - Kontron, a leading global provider of
Embedded Computer Technology (ECT), has published its results for the third
quarter of 2015. Performance improved significantly during the quarter,
both relative to the second quarter of the year as well as the same quarter
last year. However, as a result of unexpected customer restraint, primarily
in the transportation and defense segments, it has now become clear that
the full-year guidance given at the beginning of 2015 is no longer
attainable, in spite of solid numbers delivered by all other business
segments throughout the year. As a result, management has decided to reduce
its full-year revenue guidance to EUR 460 million to EUR 470 million, from
previously EUR 490 million to EUR 510 million. The adjusted EBIT margin is
expected to be slightly below the original forecast of between 3 % and 5 %
but the gross margin is still expected to come in at above 25 %.

"The first half of 2015 was a tough period for us, but now we have
delivered a solid quarter again", says Rolf Schwirz, Kontron AG's CEO. "The
results for the third quarter, especially in Communication, and the
positive development in all business segments apart from transportation and
defense show that we have identified problem areas, and are dealing with
them successfully. And we are expecting a strong fourth quarter, too.
Having had to reduce our targets for the year for the first time since
2012, we are now focused on doing everything we can to finish 2015 on a
high note."

Group results

Group order intake came in at EUR 111.2 million, 17.6 % below the
comparative figure for the same quarter of last year. However, the decrease
is a result of a base effect, with large framework agreements signed during