Comrod Communication Group continues in Q3 the strong development with its main Business Areas Antennas and Masts.
Highlights since Q2 reporting:
- Q3 Revenues up 20% from LY
- YTD revenues up 40% from LY
- First strategic order from India
- Power supply order from Swedish defense
- Strong cash flow
Revenues for Q3 of 2008 were MNOK 79.0 (MNOK 65.9). (Figures for corresponding period of 2007 will hereafter be shown in brackets). Revenues for first three quarters of 2008 were MNOK 261.1 (MNOK 186.6).
In spite of weaker USD than same period last year, operating profit (EBIT) for Q3 was MNOK 6.3 (MNOK 5.9). EBIT for first three quarters was MNOK 19.7 (MNOK 16.0). The EBIT for the first three quarters, includes non-recurring one time cost of MNOK 2.2 related to change of CEO.
Net finance cost for the quarter is MNOK 5.1 (MNOK 3.5) and for first three quarters is MNOK 8.2 (MNOK 8.6). The YTD figures include an amount of MNOK 2.8 in net currency losses, mainly related to hedging of the Groups cash flow.
Inventories are reduced by MNOK 7.8 during the quarter. Current receivables are reduced by MNOK 29.5 and current payables by MNOK 22 during the quarter.
Net interest bearing debt is reduced from MNOK 126.4 to MNOK 117.2 during the quarter.
Total balance sheet at end of September was MNOK 300.4, and the equity ratio was 31.9% (33.9%). Group liquidity remains satisfactory. Total net interest bearing debt in is reduced by MNOK 9.2 during Q3.
Cash flow from operations was MNOK 43.2 for first three quarters (MNOK 8.4).
Comrod Communication Group has a long track record of developing new, leading edge technology products in cooperation with demanding international customers. As part of our strategy for future growth, several products are in the phase of being tested and/or launched.
OUTLOOK
The Board is satisfied with the revenues in Q3 and the positive EBIT development of the two main Business Areas, Antennas and Masts. For Q4 the Board expects revenues similar to last year level. EBIT in Q4 is expected to be at least 2-3 percentage points better than Q3 level. If the strong USD and EUR rates continue, this will have further positive impact on the Q4 margins.
The Group expects order backlog at the end of Q4 to be at least on the level of Year End 2007. The new products launched will contribute to further growth in 2009.
The report for third quarter of 2008 is enclosed.
Financial report 3rd quarter 2008 (pdf, 0,5 Mb)
For further information please contact:
-Niklas Hermansson CEO of Comrod Communication Group, mobile phone +47 958 75 555 or
nh@comrod.com
Kjell Ove Hatlem, CFO, mobile phone +47 48 13 1065 or
koh@comrod.com 