UET United Electronic Technology AG releases financial figures for operating business for the third quarter 2016

• Consolidated revenues amounted to 14.631 mn EUR
• Decrease of consolidated revenue of 1.997 mn EUR respectively 12 %•
• Improvement of quarterly operating results compared to the previous year
• Business areas MANUFACTURING and SERVICE with positive profit contribution

 

UET United Electronic Technology AG (ISIN: DE000A0LBKW6), Eschborn, releases selected financial figures for the operating business areas SYSTEMS, MANUFACTURING and SERVICE for the third quarter 2016, from July 1st 2016 to September 30th 2016.

In the period from July to September of the fiscal year 2016, the operating companies and business areas in the core business of the UET Group generated consolidated revenues of 14.631 mn EUR. Compared to the previous year this represents a revenue decrease of 1.997 mn EUR respectively 12 %.

Due to slow down or delayed projects with key customers, expenses and personnel numbers have been adjusted and will be subject to further adjustments. Competition in the hardware business keeps growing that leads to accelerated development of our service and license product portfolio. As part of this evolution, the business areas SYSTEMS and SERVICE will be move closer together to realise synergy effects and develop the market.

Focus on profitability lead to a planned reduction in the business areas MANUFACTURING and SERVICE revenues. Both business areas reported positive profits. 

Not including consolidation effects, the financial figures are presented as follows:

The business area SYSTEMS generated a quarterly revenue of 13.012 mn EUR and remained 2 % below last year’s result of 13.274 mn EUR.

The operating result was negative, however compared to last year, the development of earnings could be improved. EBITDA improved by 0.913 mn EUR from the same quarter last year to -0.500 mn EUR. EBIT amounted to -1.005 mn EUR and improved by 0.921 mn EUR compared to last year.

The business area MANUFACTURING reported total revenues of 4.633 mn EUR, which is 3% below last year’s figure of 4.779 mn EUR. Despite slightly retrogressive revenues, both MANUFACTURING businesses – Letron and NewTal – could increase their quarterly results. EBITDA for the business area was positive and totaled at 0.258 mn EUR. EBIT amounted to 0.236 mn EUR. Therefore, both results could be increased by 0.179 mn EUR compared to the same period last year. 

The business area SERVICE reported revenues of 0.511 mn EUR for the third quarter, which corresponds to growth of 4.5 % compared to last year. The operating result was positive and could be increased, as well. EBITDA and EBIT amounted to 0.059 mn EUR and hence improved by18 % compared to the quarterly figures of last year.

In comparison with the total consolidated turnover, the decline of revenues of the single business areas is significantly lower. This effect arises from the increased intercompany performance and is mainly an impact of the insourcing program.

The reported financial figures do not include consolidation effects of existing non-operating UET Holding companies. 

The short-term outlook remains restrained in these difficult market conditions. The long-term project volume especially for SYSTEMS solutions for broadband expansion and network migration is increasing. The impacts of the implemented measures from the optimizing and development program will keep improving the result.