DGAP-Adhoc

LPKF: Following a weak first quarter, the board of directors is adjusting the revenue forecast for 2016 and intensifying cost reduction measures

LPKF Laser & Electronics Aktiengesellschaft / Key word(s): Change in Forecast/Development of Sales

02.05.2016 08:30

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Garbsen, May 2, 2016 - LPKF Laser & Electronics AG is lowering its revenue
forecast for the current business year following a first quarter
performance that failed to meet expectations. Based on provisional
calculations, revenue for the first three months amount to EUR 14.8
million, 30.8% less than in the previous year. LPKF now anticipates revenue
of EUR 90-110 million for the whole of 2016 (down from EUR 100-120
million).

The below par business development in the first quarter is attributable to
the fact that the Electronics Production segment continues to perform below
expectations. This is further exacerbated by the poor development of other
product areas, which is in part due to seasonal factors. Incoming orders
saw a significant rise in the first months of the current year, but not
enough to dispel the insecurities for the year as a whole.

In the face of this weak start to the year and the poor visibility of some
business units, the board of directors has decided to immediately implement
additional cost reduction measures. The aim is to achieve a cost base that
will enable profitable growth in future years, even if current business
development should remain sluggish. Among other things, this set of
measures includes a 13% reduction in the global workforce and a cut in
investments. Moreover, the board of directors will voluntarily waive any
bonus payments in the business year 2016. Overall, the adopted measures are
to bring the break-even point for 2017 to under EUR 90 million.

In the medium term, the board of directors sees very good growth
opportunities in many product areas. However, due to the poor visibility
and high volatility of the markets, adequate preparation for the
possibility of weak business development is of utmost importance.

The results forecast for 2016 and die guidance for 2017 are currently being
reviewed and will be published in the quarterly financial report on May 12.

The shares of LPKF Laser & Electronics AG are listed in the Prime Standard
segment of the Frankfurt Stock Exchange (ISIN 0006450000).

Forward-looking statements
This ad-hoc announcement contains specific forward-looking statements based
on the current assumptions and forecasts of the management board of LPKF
Laser & Electronics AG. Various known and unknown risks, uncertainties and
other factors could lead to significant differences between the actual
results, financial position, development or performance of the company and
the estimates given here.


02.05.2016 The DGAP Distribution Services include Regulatory Announcements,
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Language: English
Company: LPKF Laser & Electronics Aktiengesellschaft
Osteriede 7
30827 Garbsen
Germany
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: www.lpkf.com
ISIN: DE0006450000
WKN: 645000
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart; Terminbörse EUREX

End of Announcement DGAP News-Service

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