- Executive Board reevaluates balance sheet assets
- Further consolidation: Optical Disc activities centralized in Kahl
- Cost base improves
- Order intake above prior-year level
- Strong growth for Blu-ray achieved
- Outlook for 2011 favorable
Kahl am Main, October 25, 2010 - SINGULUS TECHNOLOGIES (SINGULUS) was not able to realize all of the expected orders in the Solar segment in the current business year 2010 up to now despite a higher order intake. On the one hand the reason is the restraint for new investments in the area of thin-film solar technology and on the other hand the delayed completion of expected solar projects. The budgeted sales volume in the SINGULUS Group cannot be achieved in the business year 2010. Accordingly, the Executive Board of the SINGULUS TECHNOLOGIES AG adjusts the sales forecast for 2010 to a range from € 118 to 125 million (forecast: € 130 - 135 million).
According to preliminary results, in the first nine months of 2010 SINGULUS achieved sales in the amount of € 81.0 million (previous year: € 95.9 million). In the 3rd quarter 2010 SINGULUS generated sales of € 31.6 million (previous year: € 28.8 million). The order intake of € 29.9 million in the 3rd quarter 2010 was significantly higher than in the previous year (Q3 2009: € 15.2 million). Correspondingly, the order intake in the first nine months of 2010 also rose to € 97.3 million (previous year: € 56.0 million). The order backlog as of September 30, 2010 increased to € 43.7 million and is thus considerably above the prior-year level (€ 30.3 million).
Against the backdrop of the current development, the resolved repositioning of the business activities as well as current market information, the Executive Board reviewed the respective values of all balance sheet items and accordingly in the course of its meeting on October 25, 2010 agreed to recognize value adjustments and write-offs in the balance sheet as well as other restructuring measures amounting to € 67.8 million (extraordinary expenses) in total. This includes adjustments of intangible and tangible assets from earlier acquisitions in the amount of € 40.7 million, capitalized development expenses in the amount of € 7.5 million as well as of receivables and inventories totaling € 17.3 million. These value adjustments are not tied to an outflow of liquid funds. Overall, restructuring charges in the amount of € 2.3 million were recognized. In this connection all Optical Disc activities will be centralized in Kahl to realize further cost reductions. First steps were already implemented with the integration of the injection molding activities in Kahl. Now, essential parts of the mastering activities will be relocated from Eindhoven to Kahl.
The operating results (before extraordinary expenses) is expected to amount to - € 13.1 million (previous year: - € 13.9 million) for the first nine months. In the 3rd quarter 2010 a negative result (before extraordinary expenses) in the amount of - € 5.0 million was realized.
SINGULUS TECHNOLOGIES still reaffirms its medium-term goals even after these adjustments.