DGAP-News

Kontron delivers solid Q3, full-year guidance reduced - Seite 2

the third quarter 2014. Relative to the second quarter of this year, order
intake has increased by 11.1 %. This leaves the order backlog at EUR 320.7
million, just below the comparative figure for last year. Revenues for the
quarter amounted to EUR 113.4 million, 4.4 % higher than last year, on
account of favorable exchange rate effects.

As a result, but also owing to effective cost-saving and efficiency
measures subsumed under the 'New Kontron' program, profitability improved
significantly both against the previous quarter and the same quarter last
year: the company's gross profit margin came to 26.7 %, the EBIT margin
adjusted for restructuring costs rose to 4.5 %. In absolute terms, the EBIT
adjusted for restructuring costs amounted to EUR 5.1 million and would have
been more than EUR 10 million had the strong US dollar not had a
significantly detrimental effect on Kontron's US cost base.

Guidance reduced mainly due to Transportation and Defense

The business unit Industrials was once again the strongest performer in the
Group, growing revenues at a rate of 12.2 % yoy to EUR 54.3 million. Strong
demand could be observed primarily in Medical and Industrial Automation,
but much of the growth dynamic was also a direct result of increasing
indirect sales, one of the focus areas of the New Kontron program. The
strength in this business was achieved in spite of continued weakness in
Infotainment, mainly caused by weaker customer demand in the US gambling
business.

Notably, the business unit Communication registered an order intake during
the quarter of EUR 40.3 million, which represents an increase of 57.4 %
compared with the same period of last year.

Revenues in the business unit ATD (Avionics / Transportation / Defense)
retreated by 9.1 % yoy to EUR 32.1 million, mainly due to unexpected
customer restraint, primarily in the transportation and defense segments,
where a number of orders were deferred to fiscal year 2016.

As a result, guidance for the full-year 2015 was reduced as detailed above.
Moreover, a new guidance for 2016 will be communicated at the FY results
presentation on March 17, 2016.

Key figures for the third quarter 2015

                                               Q3/2015   Q3/2014   Δ
Order intake                       EUR million 111.2     134.9     -17.6%
Order backlog                      EUR million 320.7     325.5     -1.5%
Revenues                           EUR million 113.4     108.6     4.4%
Book-to-bill ratio                 %           0.98      1.24      -0.26