First half of 2006 confirms strong growth of revenues (+115%YoY) and EBITDA


  • REVENUES = +115.00% YoY FROM Euro 11 MILLION IN 1st HALF OF 2005 (1H05) TO Euro 23.65 MILLION IN 1st HALF OF 2006 (1H06)
  • EBITDA = UP FROM Euro 31 THOUSAND TO Euro 1.67 MILLION, WITH MARGIN ON SALES UP FROM 0.28% IN 1H05 TO 7.09% IN 1H06
  • EBIT = +372.43% FROM Euro -399 THOUSAND TO Euro 1,087 THOUSAND. EBITDA MARGIN ON SALES UP FROM -3.63% IN 1H05 TO +4.60% IN 1H06
  • PRE-TAX RESULT = +222.42% from Euro-571 THOUSAND TO Euro 699 THOUSAND WITH MARGIN ON SALES UP FROM -5.19% IN 1H05 TO +2.96% IN 1H05.

Amaro (UD), 20 September 2006.

Today the Board of Directors of Eurotech SpA, under the chairmanship of Roberto Sigari, approved consolidated midyear interim results as at 30 June 2006 (1H06).

The midyear report approved shows strong growth of the Group, which is active in the research, development, production and marketing of miniaturised computers (NanoPCs) and of computers featuring high-performance computing capability (High Performance Computers (HPCs).
The Eurotech Group, notwithstanding absorption of non-recurring costs caused by allocation of the purchase price for acquisition of the Arcom Group, featured growth of the key operating and balance sheet indicators over the same period in the previous year (1H05).

GROUP 1H06 RESULTS

Revenues grew by 115.00%, i.e. Euro 12.65 million (mn), rising from Euro 11.00 mn in 1H05 to Euro 23.65 mn in 1H06.
This growth was achieved both organically (41.30% points) and by virtue of the acquisition completed at the beginning of April 2006 of the Arcom Group.

EBITDA in 1H06 amounted to Euro 1.68 mn (Euro 1.19 mn if one considers costs due to purchase price allocation of the business combination, recognised in accounts as required by IFRS 3, relating to acquisition of the stake in the Arcom Group).
The significant EBITDA increase reflects the policies implemented to achieve enhanced exploitation of the operating organisation, achieved thanks to revenue growth. EBITDA margin on sales rose from 0.28% in 1H05 to 7.09% in 1H06.

EBIT increased by 372.43% YoY, rising - before purchase price allocation of Euro 857 thousand - from Euro -399 thousand in 1H05 to Euro 1,087 thousand in 1H06. EBIT margin on sales rose from -3.63% in 1H05 to 4.60% in 1H06. This trend was substantially attributable to EBITDA improvement.

The net finance result featured a negative YoY change of E 210 thousand. This item - positive as regards ordinary operations - was adversely impacted by expense of Euro 409 thousand for the EUR/USD foreign exchange difference, connected with the contractual commitments (envisaging a USD 24-mn performance deposit) made on 3 February 2006 for acquisition of the Arcom Group.

Profit before tax improved by Euro 1.27 mn, going from a pre-tax loss of Euro -571 thousand in 1H05 to a pre-tax profit of Euro 699 thousand in 1H06 before Euro 857 thousand of purchase price allocation. This performance was positively influenced by the Group's EBIT performance and negatively by non-recurring finance expense (EUR/USD exchange-rate effect on the purchase of USD 24 mn for acquisition of the Arcom Group).

The Group's bottom-line result improved significantly, progressing from a loss of Euro -389 thousand in 1H05 to a loss of Euro -77 thousand in 1H06 without considering the purchase price allocation effect. The Group's bottom-line performance would have been even better - i.e. with a profit of Euro 196 thousand - if the non-recurring effect of finance expense relating to the foreign currency acquisition of stakes in the Arcom Group's companies were not to be considered.


EXPECTED BUSINESS PROGRESS AND FUTURE GROWTH STRATEGY

The Group's strategic development will continue, pursuing the guidelines already applied in previous years, i.e.

  • Development and marketing - in the nanoPC field - of new products/solutions featuring higher added value (headed by systems) with special attention to creation of off-the-shelf products
  • Once again in the nanoPC field, focus on standard and custom-made products, highly integrated (systems) and specialised according to their respective outlet markets
  • Strengthening of commercial activities with specific reference to coverage of strategic geographical areas
  • Growth of the Group also via new acquisitions.


Download the entire texts:
Eurotech - Press release





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