Revenue for the technotrans Group again showed a slight rise in the third quarter of 2007, to EUR 38.6 million (previous year EUR 38.1 million, +1.1 percent). The nine-month revenue figure was thus EUR 115.1 million, up 1.3 percent on the prior-year period (EUR 113.6 million). After the elimination of currency effects, consolidated revenue would have been another EUR 2 million up on the prior-year period.
Gross profit reached EUR 12.8 million (previous year EUR 13.2 million, -3.2 percent) in the third quarter. The gross margin as the ratio of gross profit to revenue was consequently slightly weaker, at 33.1 percent. After nine months, gross profit amounted to EUR 38.8 million and was therefore unchanged from the previous year (EUR 39.0 million); the gross margin was 33.7 percent. Factors that erode earnings at this level during the current year include the higher depreciation on the acquired patents following the acquisition, and the one-off effect from purchase price allocation.
Due to the lower gross profit, earnings before interest and taxes (EBIT) amounted to only EUR 3.6 million in the third quarter (EUR 4.0 million, -9.3 percent); this corresponds to an EBIT margin in relation to revenue of 9.3 percent (previous year: 10.4 percent). At the nine-month mark, EBIT was EUR 11.4 million (previous year EUR 11.9 million, -4.0 percent) and the margin correspondingly 9.9 percent (previous year 10.5 percent). The effective tax rate was once more 38.1 percent at the reporting date. However, we expect that technotrans will be able to profit from virtually all the tax cuts being introduced under the umbrella of Germany's corporate tax reform from 2008.
A net income for the period of EUR 2.1 million was thus generated in the third quarter (previous year EUR 2.2 million), down 3.3 percent on the reference period. The net income for the nine-month period was EUR 6.85 million (previous year EUR 6.95 million, -1.4 percent). The basic earnings per share are consequently EUR 1.00 (previous year EUR 1.04).
Despite higher income taxes, the net cash from operating activities reached EUR 9.8 million, an increase of 20 percent on the previous year (EUR 8.1 million).
The current level of revenue and the anticipated development in the fourth quarter will nevertheless probably not quite suffice to achieve the revenue target of EUR 160 million for the year as a whole. As matters stand, we therefore expect revenue to total around EUR 154 million by year-end, representing a shortfall probably of less than 4 percent. This difference will also have an impact on our year-end earnings. We expect that the EBIT margin will reach 10 percent as planned in spite of the burden from the acquisition of around EUR 2 million but in absolute numbers will reach rather EUR 15.5 million than EUR 17.5 million for the year. As a result, instead of the planned net income of EUR 10.5 million we will probably close the year on a figure between EUR 9.0 and EUR 9.5 million.
