Highlights since Q1 reporting:
The development confirms the positive trend from previous quarters. Main market drivers are the new strategies for defense customers, with high mobility forces and increasing use of advanced information technology equipment. This is combined with the Groups leading edge solutions, extensive customer network and proven track record towards these demanding requirements.
New strategic contracts were secured in the first half of 2008, further ensuring revenues for the year and a basis for further growth.
A new unique antenna (HF Loop) is developed. The company expects this to be a core product for the Groups future growth.
Comrod UK is established as part of the Groups strategy to increase revenues till NOK 500 million by 2010-2011. Comrod Communication expects to benefit from the long experience and the extensive network these persons have, both within UK and globally.
Revenues for first half of 2008 were NOK 182.1 million compared with 120.6 million in 2007. (Figures for corresponding period of 2007 will hereafter be shown in brackets). Revenues for second quarter of 2008 were NOK 81.8 million (NOK 66.3 million).
Operating profit (EBIT) for first half was NOK 13.5 million (NOK 10.1 million). EBIT for Q2 was NOK 2.4 million (NOK 4.6 million). The EBIT for the half year, includes non-recurring one time cost of NOK 2.2 million related to change of CEO. The EBIT-margin for Q2 is, in accordance with outlook given in our Q1 report, lower than the level of the last quarters due to seasonality of product mix and changing delivery schedules for our companies. Except for the non-recurring costs, the EBIT margin for the quarter and the half year are slightly above our 2008 budgets
Financial results indicate that the Group has achieved the planned operational efficiency at the new and higher turnover level, thus generating strong financial results overall.
For the Group order intake in the first half is above last year’s level, and reflects the strong market foothold established in recent years and the introduction of new products to the market. From our business units, Comrod Communication Group is ready to launch several new products during this year.
OUTLOOK
The Board is satisfied that the Group continue to deliver results according to plans. For the next half year, the Board expects revenues at least 10% above the high level of same period last year. The y-o-y increase is expected to be higher in Q3 than in Q4. The EBIT-margin for the year is expected to be in line with the good performance of 2007.
The report for first half and second quarter of 2008 is enclosed.
Financial report 2nd quarter 2008 (pdf, 0,15 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
