Group revenue in the second quarter 2008 again remained below the prior-year level. Amounting to € 33.4 million, it was almost € 5 million or 12.6 percent down on the figure at the corresponding point in the previous year. At the half-way mark, revenue therefore totalled only € 70.7 million, a downturn of 7.7 percent (previous year € 76.6 million). Whereas the Services segment maintained its healthy progress with growth of 6 percent, investment reticence in the run-up to the drupa industry exhibition and the weaker economic environment affected the Technology segment to a much greater degree than had been expected. Although the gross margin of 33.1 percent was stabilised more or less at the customary level after six months, gross profit fell by 9.9 percent or around € 2.5 million due to lower revenue. The together with the rise in distribution costs by almost € 1 million in connection with the drupa prompted a decline in the operating result to € 4.8 million (previous year € 7.8 million). The EBIT margin was only 6.8 percent in the first half. Net income after six months was € 2.6 million (previous year 4.7 million), equivalent to earnings per share (average number of shares outstanding) of € 0.41 (previous year € 0.70).In view of cyclical weakness and the meagre impetus given by the drupa, management is working on the assumption that it will not be possible to make good the first half's revenue shortfall of around € 10 million on our budgeted target in the second half of the year. Rather, the company is working on the assumption that it will miss the revenue target for the full year of € 160 million by probably around € 15 million. In order to stabilise and boost earnings in these circumstances, a number of measures have been implemented that will improve the operating result by € 3 million per year, and it is expect to realise around € 2 million in such savings in the current financial year. The objective, based on the new revenue forecast, is an EBIT margin of 7 to 8 percent for the year as a whole. The necessary instruments to react flexibly to a fluctuation in demand are implemented and have proven their effectiveness already in the past.
