Weak demand within Nolato Telecom during the quarter. Strong improvement for other business areas.

Weak demand within Nolato Telecom during the quarter. Strong improvement
for other business areas.

In today's three-month interim report, Nolato has reported sales of SEK
759 million (746) and operating income (EBITA) of SEK 44 million (63).
Earnings per share stood at SEK 1.06 (1.71), with cash flow after
investments of SEK 111 million (0).
“As announced previously, a drop in demand for Nolato Telecom's existing
product portfolio had a negative impact on sales and income for the
first quarter,” says Hans Porat, President and CEO of Nolato. “Following
a strong start at the beginning of the year, demand fell dramatically
following the Chinese New Year in early February.
“However, improvements within other business areas compensated for this
drop to some extent.”
Nolato Medical's sales rose by 25% to SEK 232 million (186), with
operating income (EBITA) up 22% to SEK 28 million (23).
“The majority of the business area's customer segments experienced
strong growth in volumes, and operations have developed very much in
line with market growth.”
Nolato Telecom's sales fell by 19% to SEK 259 million (320), with
operating income (EBITA) of SEK -4 million (32).
“New customer project start-ups are underway, and these will gradually
replace the older product portfolio,” continues Mr Porat. “However,
there is a general sense of uncertainty in the market in relation to
access to electronic components as a result of the natural disasters in
Japan, and it is expected that this will affect volumes and the timings
of new project start-ups during 2011.”
Nolato Industrial's sales rose by 11% to SEK 268 million (241), with
operating income (EBITA) up 47% to SEK 25 million (17).
“Strong demand, market position gains and new products have all
contributed towards higher sales,” explains Mr Porat.
Nolato continues to enjoy a strong financial position. Financial net
assets stood at SEK +80 million (-44), with an equity/assets ratio of
54%.

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For further information, please contact:
Hans Porat, President and CEO, telephone 46 431 442294
Per-Ola Holmström, Executive Vice President and CFO, telephone 46 431
442293