02.11.2015
exceet Group SE LU0472835155
exceet Group SE: REPORT THIRD QUARTER 2015 - Business picks up - Performance still below potential
(DGAP-Media / 02.11.2015 / 19:23)
Business picks up - Performance still below potential
- Sales of EUR 132.7 million (9M 2014: EUR 140.1 million) showing the
expected improvements versus Q2
- EBITDA climbing to EUR 8.2 million (9M 2014: EUR 15.1 million) with Q3
adding EUR 3.9 million showing the highest quarterly margin year to
date
- exceet USA, Inc. successfully established
Luxembourg, 2 November 2015 - 06.30 p.m. - A low propensity to invest and
reluctant call-ups from existing framework agreements are still negatively
affecting exceet's revenues and margins. Nevertheless the group managed to
achieve 3.5% higher revenues in Q3 2015 versus Q2. Revenues for the first
nine months 2015 reached EUR 132.7 million (9M 2014: EUR 140.1 million)
representing a decline of 5.3%.
The gross profit and the EBITDA results of the group have therefore still
to be seen in the light of lower than anticipated sales and utilization
rates. For the first nine months exceet achieved an EBITDA of EUR 8.2
million (6.2% of net sales) compared to EUR 15.1 million (10.8% of net
sales) in 9M 2014. On 30 September 2015 exceet's order backlog amounted to
EUR 87.1 million which is at the level of 31 December 2014 (EUR 87.3
million).
Electronic Components, Modules & Systems (ECMS) contributed 71.8% to
overall group sales. Net sales decreased to EUR 95.4 million during the
first nine months of 2015, against EUR 99.2 million during the first nine
months of 2014. The segment achieved an EBITDA of EUR 11.4 million,
accounting for an EBITDA margin of 11.9% compared to EUR 16.2 million or a
margin of 16.3% in the same period of the previous year.
For the intensification of its business and market development in the North
American Market, exceet USA, Inc. was established with opening a
representative office on the US East Coast near Boston, MA. exceet USA is
especially focused on activities related to the health market.
ID Management & Systems (IDMS) accounted for 23.0% of the group sales. The
revenue in the first nine months 2015 amounted to EUR 30.5 million, which
represented a decrease of 12.9% compared to EUR 35.0 million in 9M 2014.
IDMS reported an EBITDA of EUR 1.4 million for the first nine months 2015
which results in an EBITDA margin of 4.5%. In the same period of the
previous year the segment achieved an EBITDA of EUR 2.3 million
representing 6.6% EBITDA margin.
Currently IDMS has nearly full capacity utilization and has an optimistic
view for the coming months. The card specialist expects positive seasonal
effects in the fourth quarter and year-end related orders.
exceet Secure Solutions (ESS) contributed 5,2% of total group sales. In the
first nine months 2015 the segment generated revenues of EUR 6.9 million.
This reflects an increase by 13.1% compared to 9M 2014 revenues of EUR 6.1
million. EBITDA for this reporting period reached minus EUR 0.3 million (9M
2014: minus EUR 0.2 million).
ESS continued the realization of a follow-up order in context with the
German electronic health card (eGK) and strengthened its position as an IT
Security specialist and experienced partner in this market. The Internet of
Things (IoT) business is still characterized by a slow but steady market
development. Nevertheless, ESS sold several IoT projects in various
industries. The new German IT Security Law, which came into effect in July
2015, opens up new opportunities for ESS to offer its IT security and
compliance know-how and to benefit from these new obligations and upcoming
standards.
Outlook for 2015
The long-term growth prospects for exceet with respect to its technological
skills and its product and service portfolio remain unchanged despite the
setbacks seen in the course of the current year. The main trigger for
exceet's business performance would be a convincing upswing of overall
investment activities, especially investments into intelligent electronics,
for example in the field of the Internet of Things (IoT). Studies by
International Data Corporation (IDC) disclose that executives worldwide put
the IoT topic at the top of their agendas but close to 40 percent of them
see obstacles for investments within the next two years because of high
initial costs. For one of four executives, data security concerns also
might lead to the postponement of investment decisions. However, more than
a third of the interviewed executives unanimously regard suppliers of
electronic hardware - like exceet - to turn out the strongest beneficiaries
once investment sentiment improves. Therefore the management of the group
maintains its confidence to participate in the growth within these markets
as the company's portfolio addresses the skills in demand.
Each of the first three quarters 2015 showed slightly lower sales by
mid-single digit percentages compared to the prior year period. The final
quarter 2015 most probably should exceed the Q4 figure of 2014 thus
continuing the trend seen since this summer.
In order to enhance the operational efficiency of the group, exceet will
run through a process of structural adjustments and optimizations including
the management structure and asset base of the group. The process will
emphasize the group's focus on its high margin core businesses.
Greenock S.à r.l. a major shareholder of exceet Group SE had informed the
company in Q1 2014 that they are assessing their strategic options related
to their shareholding in exceet Group SE, including a possible disposal of
such shareholding to a third party. Pursuant to the updated information
provided by Greenock S.à r.l., no final decision has still been taken
regarding the form and timing of a potential transaction.
Annex: Performance and Structural Data first nine months 2015
Complete Interim Management Report on the first nine months 2015 and actual
Investor Relation Presentation available at www.exceet.lu
Please contact for further information:
Wolf-Günter Freese, CFO - Email: [email protected]
exceet Group SE
115 avenue Gaston Diderich
L-1420 Luxembourg
Phone +352 26 29 91 22
ISIN LU0472835155 (Public Shares), Regulated Market, Prime Standard,
Frankfurt/Main
ISIN LU0472839819 (Public Warrants), Regulated Market, General Standard,
Frankfurt/Main
exceet will announce full year results for 2015 on 2 March 2016 (after
closing of the market)
About exceet
exceet is an international technology group, which is specialized in the
development and production of intelligent, complex and secure electronics.
End of Media Release
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Issuer: exceet Group SE
Key word(s): Enterprise
02.11.2015 Dissemination of a Press Release, transmitted by DGAP - a
service of EQS Group AG.
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Language: English
Company: exceet Group SE
115, avenue Gaston Diderich
L-1420 Luxemburg
Grand Duchy of Luxembourg
Phone: +352 2629 9122
Fax: +352 2629 9150
E-mail: [email protected]
Internet: www.exceet.ch
ISIN: LU0472835155, LU0472839819
WKN: A0YF5P, A1BFHT
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Munich
End of News DGAP Media
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