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Consolidated interim report CeoTronics AG for the first two
After an encouraging start of the first quarter of the business
year 1999/2000, which commenced on June 1, 1999, the CeoTronics Group
continued its positive development in the second quarter (September 1
to November 30, 1999).
The company is beginning to reap the benefits of the money
invested in organic growth. The results of its research and
development activities with respect to the new, revolutionary
communication system "CT-GateCom" for wireless aircraft ramp handling
were very well received at international trade fairs in Munich
(September 1999) and Las Vegas (October 1999). Initial orders and
test reports by major airlines mean, that this interesting product
group is confident of considerable market success in the future.
Consolidated turnover (US-GAAP) of the CeoTronics Group increased
by 13.9%, compared to the preceding reporting period. During the same
time the CeoTronics Group achieved a jump in orders of 30%. Despite
extra work CeoTronics was not able to convert the increased orders on
hand into turnover, because they came in shortly before the end of
the quarter. The companywide increase in sales of 13.9% results in a
turnover of 5.32 million EURO (US-GAAP).
It should be noted at this stage that the second half (December
1999 (May 2000) of the business year traditionally claims a bigger
part of the turnover for the whole year. Due to some orders being
placed at short notice, not all orders could be delivered by the end
of the quarter; as a result, the backlog of orders increased by about
45%, compared to the preceding reporting period.
CeoTronics in Switzerland increased its sales by almost 30% while
Germany was up 10.6% and the US subsidiary up 7.6%.
In the UK, the company closed two large orders which had bound
sales capacities there in the second quarter and which are to be
delivered in the third and fourth quarter.
The 13.8% decline in sales in France is the result of the
continued restrictive ordering policy on the part of public
authorities. In this relevant branch the public authorities did not
place large orders in this second quarter. CeoTronics is going to
enforce its work in those projects.
Sales by CeoTronics in Spain and A&C in France in the area of
fast-food communication have been very encouraging and contribute
more than 12% to total sales of the group. McDonalds in Paris tested
the new CeoTronics communication-system BIMCO in their McDrive
(drive-through) and was able to serve 100 customers in 60 minutes.
This result gives a positive impact on the future market development.
The groupns DVFA earnings for the first 6 months (June - November,
1999) of the fiscal year amounted to EUR -452,279 (previous year =
EUR +40,356). They are mainly influenced by the investments in
research and development, expansion of sales activities as well as by
high marketing expenditure such as for the new product CT-GateCom.
The companyns turnaround in the US was reinforced by a reduction
in losses of almost 50%.
Earnings of CeoTronicsn new acquisition A&C improved substantially
in the second quarter as against the first quarter 1999/2000,
following the restructuring of the company and its integration into
The increase of the general administration expenses mainly bases
on the expenses for the annual stockholders meeting, quarterly
statements and due diligences.
In Rödermark, CeoTronics acquired a property during the period
under review in order to be able to expand further at this site. The
contract and valuation costs relating to a second property nearby are
included in the reporting period.
In order to consolidate activities in the video sector, CeoTronics
founded a wholly owned subsidiary, CT-Video GmbH, in Saxony-Anhalt on
November 18, 1999. Since the latterns costs and earnings in the first
2 weeks were minimal, these have not been included in CeoTronicsn
half-yearly financial statement. CeoTronics expects that this
investment will substantially strengthen its position on the growing
market for special video communication.
After 7 months of the fiscal year (as of December 31, 1999) it is
clear that the CeoTronics Group is still growing. The further
increase in booked business suggests a healthy upward trend compared
with the previous year.
The number of employees (124) as of November 30, 1999 was in line
The thorough preparations for the expected Y2k computer problems
have paid off: the CeoTronics Group experienced no IT problems as of
January 1, 2000.
CeoTronics is optimistic about the future. Rödermark, January 20,
Original-Content von: CeoTronics AG, übermittelt durch news aktuell