Option reports Second Quarter and First Half Year 2008 results
Financial Highlights of the second quarter 2008
- Total revenues for the second quarter of 2008 were EUR 60.8 million compared with EUR 82.1 million realized in the second quarter of 2007.
- Gross margin in Q2 2008 was 24.7% on total revenues, compared with gross margin of 33.6% of Q2 2007. Gross margin would have been 29.2% excluding a provision against inventories of EUR 2.7 million, primarily the result of a significantly higher than expected shift from data cards to USB devices during the quarter.
- The quarterly EBIT amounted to EUR -6.6 million or -10.9% on total revenues compared with EUR 8.9 million or 10.8% during the corresponding period in 2007.
- Net result for the second quarter of fiscal year 2008 amounted to EUR -5.6 million, or EUR -0.14 per basic share. This compares with a net profit of EUR 6.3 million, or EUR 0.15 per basic share. The Q2 2008 net result was positively impacted by taxes of EUR 2.6 million.
- The Group's balance sheet remained strong with EUR 31 million in cash and reduced inventory levels to EUR 32.1 million. Receivables are an average of 68 days outstanding, net of subcontracting parties.
Financial Highlights of the half fiscal year 2008
- First half year revenues were EUR 137.6 million, a decrease of 9.0% compared with EUR 151.2 million revenues realized during the first half year 2007.
- Gross profit for the first half year was EUR 41.6 million, a decrease of 18.1% compared with EUR 50.8 million in 2007. Gross margin in the first half year 2008 was 30.3%, compared with a gross margin of 33.6% in 2007.
- EBIT decreased to EUR -3.5 million or -2.6% on total revenues during the first half year 2008 compared with EUR 17.2 million in 2007.
- Net result decreased to EUR -2.8 million, or EUR -0.07 per basic share. This compares with a net profit of EUR 14.4 million, or EUR 0.35 per basic share in 2007. The 2008 net result was positively impacted by taxes of EUR 2.7 million resulting from the adjustments posted.
Additional Financial Highlights
- Operating expenses for the company have been reduced by 11% versus Q4 2007 (excluding non recurring items) from EUR 24.2 million to EUR 21.6 million reflecting a continued focus on cost reductions and process optimization.
- During the quarter, Option sold more devices than in any prior quarter in its history. USB devices accounted for 77% of devices sold and 69% of revenue versus 56% and 49% respectively in Q1 2008.
- During the quarter, the Company has arranged a EUR 10 million credit facility. This facility, in combination with its current strong cash position, provides the Company with additional financial flexibility.
Option, the wireless technology company, is a leading innovator in the design, development and manufacture of 3G HSUPA, HSDPA, UMTS, EDGE, and WLAN technology products for wireless connectivity solutions. Option has built up an enviable reputation for creating exciting products that enhance the performance and functionality of wireless communications. Option's headquarters are in Belgium (Leuven). The company has Research & Development in Belgium (Leuven) and Germany (Düsseldorf and Adelsried), and an ISO 9001 production engineering and logistics facility in Ireland (Cork). Option also has offices in Europe, US, Asia, Japan and Australia. For more information please visit www.option.com.