DGAP-News: Viscom AG / Key word(s): Quarter Results
Viscom AG: Positive outlook despite modest start to the 2019 financial year
Revenue: EUR 19,715 thousand (previous year: EUR 16,778 thousand)
Operating profit (EBIT) amounted to EUR 348 thousand in the first quarter of 2019 (previous year: EUR 253 thousand). This corresponds to an EBIT-Margin of 1.8 % (previous year: 1.5 %) and was therefore on a par with the previous year. Operating profit was significantly negatively affected by valuation allowances on inventories and increased warranty expenses. In addition, earnings were reduced by increased staff costs due to the capacity expansion. Net profit for the period fell from EUR 395 thousand in the previous year to EUR 141 thousand. The effects discussed under operating profit above also had an impact here. The financial result was positive at EUR 132 thousand. This was due primarily to interest income from concluded fiscal court proceedings. In addition, lower tax refunds for previous years and high deferred taxes from temporary differences had a negative impact.
Europe was the Viscom Group's strongest region by some distance, generating revenue of EUR 13,795 thousand in the first three months of the 2019 financial year (previous year: EUR 10,485 thousand) and accounting for around 70 % of total revenue. Revenue increased by around 32 % as against the previous year. This was primarily due to higher system sales. Revenue in Germany amounted to EUR 8,907 thousand (previous year: EUR 5,339 thousand). Segment earnings in the Europe region totalled EUR 494 thousand (previous year: EUR 196 thousand), corresponding to a margin of 3.6 % (previous year: 1.9 %). This increase was primarily attributable to the effects already discussed under operating profit.
The Viscom Group likewise registered good demand in the USA and Canada and in Mexico. The Company sees the economic environment as stable with constant but modest growth. In the Americas regions, segment revenue doubled from EUR 1,230 thousand to EUR 2,475 thousand. Segment earnings in the region totalled EUR 83 thousand (previous year: EUR -404 thousand), corresponding to a margin of 3.4 % (previous year: -32.8 %). This was due primarily to increased revenue.
The economic situation is currently characterised by uncertainty over future economic development in Asia and the automotive industry. As a result, there has been a palpable drop in the propensity to invest.
For the Viscom Group, the market continues to offer good opportunities for the future that were already taken in the first quarter of 2019: The Company was awarded a procurement contract by a major existing customer in March, positioning itself as the exclusive supplier for the 3D inspection of wired solder joints with the new Viscom inspection system S3016 ultra for the next five years. In the close interplay of application and software, product and central development, Viscom expanded the possibilities of the new XM module and presented a convincing service.
To continue meeting the future megatrends and the demands that they entail on an equal footing and in a timely manner, the mechanical engineering firm from the German state of Lower Saxony maintains a permanent dialogue with its customers at various levels. Demand for inspection systems is increasing steadily on the back of growth in vehicle electronics, especially e-mobility and the requirements of autonomous driving. The use of batteries by Viscom customers has also led to new quality control requirements that the Company is able to cover with its system technology. This relates to various types of battery cells, such as button cells, round cells and pouch cells, thereby giving rise to additional applications.
In terms of markets, the management sees growth potential in Asia. Many Viscom customers and, in particular, potential customers from the computer, communication and consumer industry are located in this region. In addition to China, Viscom is intensifying its activities in other Asian countries in order to facilitate additional growth in the region over many years. India, where there is greater investment from customers, is particularly noteworthy here.
Overall, Viscom AG's management remains confident about the future. The Company is in a good technological and strategic position for further growth. The management is therefore confirming the forecasts for 2019 as a whole that were published previously, with revenue of between EUR 94 million and EUR 100 million and an EBIT-Margin of between 10 % and 13 %.
The consolidated interim report for the period ended 31 March 2019 can now be found in the Investor Relations section at www.viscom.com.
14.05.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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|Listed:||Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||810295|
|End of News||DGAP News Service|