Kontron AG's double-digit growth continues
- Q1 revenue up by over 10 percent to EUR 106 million
- Faster rate of net income by over 38 percent to EUR 6.8 million
- Record level in order backlog confirms growth targets
Kontron AG continued its profitable growth path in the first quarter of 2008, generating EUR 105.9 million of sales. This represents nominal growth of over 10 percent compared with the same period of the previous year (EUR 95.9 million). When adjusted for exchange-rate losses precipitated by the sharp decline in the US dollar, organic growth was around 20 percent. Kontron is consequently the company reporting the fastest rate of organic growth in the embedded computer sector. Particularly strong drivers of growth in the first quarter were once again Europe and the emerging markets, including Russia and China. While the disposal of the mobile product area had an impact on revenue growth in the United States, Kontron was unable to detect any decline due to the US financial crisis. We achieved a further significant expansion of our profit margin, in line with the forecasts and targets we set for the 2008 financial year. Operating earnings (EBIT) grew even by over 30 percent, rising from EUR 6.7 million in the first quarter of 2007 to EUR 8.7 million in the first quarter of 2008. First-quarter net income consequently rose from EUR 4.9 million to EUR 6.8 million.
Order backlog reached a record level of EUR 310 million, order income and design wins had a strong increase again. Despite ongoing uncertainties in financial markets, the Management Board of Kontron AG assumes it will achieve the targets it set for 2008 of double-digit organic revenue growth, accompanied by an even faster rate of operational earnings growth, due to the good results in the first quarter and the company's high degree of diversification in regional and vertical markets, as well as its breadth of technology.
Kontron designs and manufactures standard-based and custom embedded and communications solutions for OEMs, systems integrators, and application providers in a variety of markets. Kontron engineering and manufacturing facilities, located throughout Europe, North America, and Asia-Pacific, work together with streamlined global sales and support services to help customers reduce their time-to-market and gain a competitive advantage. Kontron's diverse product portfolio includes: boards and mezzanines, Computer-on-Modules, HMIs and displays, systems, and custom capabilities. Kontron is a Premier member of the Intel® Embedded and Communications Alliance. The company is a recent three-time VDC Platinum vendor for Embedded Computer Boards. Kontron is listed on the German TecDAX stock exchange under the symbol "KBC". For more information, please visit: www.kontron.com.