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paragon AG Boosts 2017 Forecast

DGAP-News: paragon AG / Key word(s): Forecast
paragon AG Boosts 2017 Forecast

21.11.2016 / 07:30
The issuer is solely responsible for the content of this announcement.

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paragon AG Boosts 2017 Forecast

- Consolidated revenue now set to reach EUR 120 to EUR 125 million

- EBIT margin expected between 9.0 percent and 9.5 percent

Delbrück, Germany, November 21, 2016 - paragon AG [ISIN DE0005558696]
raised its revenue forecast for the 2017 fiscal year and provided a target
corridor for profitability.

The Managing Board increased its revenue expectations for 2017, taking into
account the planning for 2017 that was recently approved by the Supervisory
Board. Since November 2015, the company has consistently anticipated
revenue growth of 15 percent to 20 percent from its expected total revenue
of approximately EUR 102 million for 2016. This would correspond to total
revenues of EUR 117 million to EUR 122 million for 2017.

The new revenue forecast of EUR 120 to EUR 125 million for the upcoming
fiscal year is clearly at the higher end of the Managing Board's
expectations. Here, the recent developments in the order backlog,
particularly in the Electromobility division, have been taken into
consideration. The Managing Board also expects enhanced activity in the
quickly growing automotive market segments that paragon serves with its
technological innovations in the automotive divisions for health, comfort
and efficiency. However, the Managing Board anticipates that the launch of
new products in these areas will only impact revenues and earnings starting
in 2018.

The Managing Board also set an initial target corridor for profitability
for the 2017 fiscal year. According to this, the company should achieve an
EBIT margin between 9.0 percent and 9.5 percent in 2017, which corresponds
to an EBIT (earnings before interest and taxes) in the double-digit
millions.

"With the most recent investments, we want to secure increased
profitability and see the dynamic growth in revenue we've planned come to
fruition," says Klaus Dieter Frers, founder and Chief Executive Officer of
paragon AG. "As announced, we will use part of the funds from the capital
increase from the beginning of October towards these efforts." New products
will now be ready for the market sooner - for instance, the particle sensor
that has generated strong customer demand.

More information about paragon AG at www.paragon.ag/en/investors.

Company Profile

Listed in the regulated market (Prime Standard) of Deutsche Börse AG in
Frankfurt am Main, paragon AG (ISIN DE0005558696) develops, produces, and
sells innovative automotive electronics solutions. The portfolio of this
direct supplier to the automotive industry includes products in the
business segments of Sensors, Acoustics, Cockpit, E-mobility and Body
Kinematics. In addition to its headquarters in Delbrück (North Rhine-
Westphalia), paragon AG and its subsidiaries have locations in Suhl
(Thuringia), Nuremberg (Bavaria), St. Georgen (Baden-Wuerttemberg), and
Bexbach (Saarland), as well as in Kunshan (China) and Austin (Texas, USA).

Financial Press Contact & Investor Relations

paragon AG

Dr. Kai Holtmann
Artegastrasse 1
33129 Delbrück, Germany
Phone: [phone]
Fax: [phone] - 97 62-63
E-mail: [e-mail]


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21.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
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Language: English
Company: paragon AG
Schwalbenweg 29
33129 Delbrück
Germany
Phone: [phone] - 0
Fax: [phone] - 60
E-mail: [e-mail]
Internet: www.paragon.ag
ISIN: DE0005558696, DE000A1TND93
WKN: 555869, A1TND9
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart, Tradegate Exchange


End of News DGAP News Service
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522223 21.11.2016