First 9 months of 2006 with revenue growth of 76% to Euro 34.93 million pre-tax result from Euro 571 thousand to Euro 1,124 thousand

Amaro (UD), 10 November 2006.


  • CONSOLIDATED REVENUES: +76.0% YoY FROM Euro 19.84 MILLION IN FIRST 9 MONTHS OF 2005 (9M05) TO Euro 34.93 MILLION IN FIRST 9 MONTHS OF 2006 (9M06)
  • CONSOLIDATED EBITDA: FROM Euro 1.59 MILLION TO Euro 1.22 MILLION IN WITH MARGIN ON SALES DECREASING FROM 8.0% IN 9M05 TO 3.5% IN 9M06
  • CONSOLIDATED EBIT: FROM Euro 917 THOUSAND TO Euro 5 THOUSAND
  • PRE-TAX RESULT: FROM Euro 571 THOUSAND TO Euro 1,124 THOUSAND
  • NET FINANCIAL POSITION: NET CASH UP FROM Euro 20.35 MILLION AS AT 31.12.2005 TO Euro 97.87 MILLION AS AT 30.09.2006

Today the Board of Directors of Eurotech SpA approved the Quarterly Interim Report as at 30 September 2006.

The key indicators show continuing growth of Eurotech, a company active in the research, development, production and marketing of miniaturised computers (NanoPCs) and of computers featuring high-performance computing capability (HPCs). Eurotech has been listed on the MTA/MTAX (electronic equities) market of the Milan Bourse in the STAR segment since 30 November 2005.

GROUP RESULTS

Revenues in the first 9 months of 2006 (9M06) grew by 76.0%, i.e. by Euro 15.01 million (mn), rising from Euro 19.84 mn in the first nine months of 2005 (9M05) to Euro 34.93 mn in the first nine months of 2006 (9M06).
This growth was achieved both organically and by virtue of the acquisition completed at the beginning of April 2006 of the Arcom Group. If the business combination had taken place at the beginning of the year, ordinary sales revenues would have totalled Euro 40,719 thousand.

During the quarter management pursued the plan for growth in size and internationalisation on several fronts (one of which was the PTO on Radstone Technologies Plc). Following activities undertaken and underway, management expects to complete one or more extraordinary transactions in the next few months.
In the next two quarters the Group also expects to formalise several major orders - now at an advanced stage of negotiation.

Sales in the third quarter rose from Euro 8.84 mn in 2005 to Euro 11.28 mn in 2006.
EBITDA amounted to Euro 1.22 mn net of Euro 602 thousand due to price allocation for the business combination - recognised in accounts with the treatment envisaged by IFRS 3 - involving purchase of the Arcom Group investment.

EBIT, net of purchase price allocation, featured a decrease between 9M05 and 9M06, going down from Euro 917 thousand in 9M05 to Euro 5 thousand in 9M05. This trend was strictly related to the EBITDA trend and to the higher depreciation & amortisation costs posted in 2006.

Finance income and expense was affected by a positive outright change of Euro 1,465 thousand between 9M05 and 9M06, notwithstanding the net negative impact of Euro 409 thousand, already highlighted in previous quarterly interim reports, due to the purchase of 24 million US dollars in mid February, relating to the contractual commitments ( Option Letter) made on 3 February 2006 for the acquisition of the Arcom Group. During the quarter dividends totalling Euro 221 thousand were collected from Radstone Technology Plc.

The pre-tax result increased by Euro 553 thousand, going from profit before tax of Euro 571 thousand in 9M05 to profit before tax - net of the effect of purchase price allocation positive for Euro 1,124 thousand in 9M06.

In terms of the Group's net result (i.e. net profit or loss pertaining to the parent company's shareholders), the result went from a profit of Euro 252 thousand in 9M05 to a loss of Euro -111 thousand in 9M06, not considering the effect of purchase price allocation. Besides reflecting the trend in pre-tax performance, this result was mainly due to the tax burden of the Group's various companies and to minority interest.

As regards equity, it is pointed out that during 3Q06 the capital increase was completed. This enabled the Group to gather, net of related costs,some Euro 105 million to be used primarily for growth via external development.


As at 30 September 2006 the Group had a net financial position of Euro 97 mn.

The Board of Directors also passed a resolution transferring the company's registered headquarters from Via J. Linussio 1 to Via Fratelli Solari 3/a in Amaro (province of Udine), Italy.



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Eurotech- Financial Highlights


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