Year 2006 revenue posts growth of 70% to Euro 50.76 million pre-tax result up from Euro 2 million to Euro 3.33 million

Amaro (UD), 14 February 2007.


  • REVENUES +70.0%: FROM Euro 29.85 MILLION IN 2005 TO Euro 50.76 MILLION IN 2006
  • EBITDA : FROM Euro 3.30 MILLION TO Euro3.06 MILLION, REPRESENTING 11.0% OF REVENUES IN 2005 TO 6.0% IN 2006
  • EBIT: FROM Euro 2.3 MILLION TO Euro1.09 MILLION
  • PRE-TAX RESULT FROM Euro 2 MILLION TO Euro 3.33 MILLION
  • NET FINANCIAL POSITION: NET CASH UP FROM Euro20.35 MILLION AS AT 31/12/2005 TO Euro 100.27 MILLION IN 2006

Today, the Board of Directors of Eurotech S.p.A. approved the Quarterly Report as at 31 December 2006.

The key indicators report continuing growth of Eurotech, a company active in the research, development, production and marketing of miniaturized computers (NanoPCs) and of computers featuring high-performance computing capability (High Performance Computers 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

Group revenues grew by 70.0%, rising Euro 20.91 million, from Euro 29.85 million in 2005 to Euro 50.76 million in 2006.
This growth was achieved both organically and by virtue of the acquisition of the Arcom Group completed at the beginning of April 2006. If the business combination had taken place at the beginning of the year, ordinary operating revenues would have been Euro 56.45 thousand.

During the quarter in question, management pursued the plan for growth in size and internationalization on several fronts through acquisition of Applied Data System Inc. which took place at December 2006 and was executed the following month. Management expects to continue to develop its plan to increase the size of the Group in 2007.

Sales in the fourth quarter rose from Euro 10.01 million in 2005 to Euro 15.83 million in 2006.

EBITDA amounted to Euro 3.06 million net of Euro 653 thousand due to price allocation.

The effect of the increased operating costs, the main cause of the reduction in the proportion of EBITDA on revenues (which fell from 11.0% in 2005 to 6.0% in 2006) is due to management's desire to reinforce the industrial and operating structure to keep pace with the future growth of the Group.


EBIT, net of purchase price allocation, posted a decrease between 2005 and 2006, falling from Euro 2.3 million in 2005 to Euro 1.09 million in 2006. This trend was strictly related to the trend in EBITDA and to higher depreciation & amortization posted in 2006.

Financial management reported a positive change of ?2.54 million in absolute values between 2005 and 2006, despite the negative impact of Euro 409 thousand, already shown in previous quarters, due to acquisition of USD 24 million which took place mid February and was related contract obligations (option letters) undertaken on 3 February 2006 for acquisition of the Arcom Group.

The pre-tax result increased by 66.3%, Euro 1.33 million, rising from Euro 2.0 million in 2005 to Euro 3.33 million in 2005, net of the positive price allocation 2006.

Group net result increased from Euro 1,064 thousand in 2005 to Euro 1,341 thousand in 2006, net of the positive price allocation, reporting an increase of 26.0%. 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 interests.

As at 31 December 2006, the Group reported a positive net financial position of Euro 100.27 million, to be used mainly for external growth.



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