STOCKHOLM, Sweden, April 19, 2002 (PRIMEZONE) -- Doro:
-- Sales totaled SEK 216 million (278 m)
-- Loss before tax of SEK 9 million (-26 m)
-- EPS after tax SEK -0.44 (-2.68)
-- Weak market reduce the conditions for having a positive
full-year result
-- Major restructuring proceeding according to plan
-- Telephone exchange activities sold on 15 March
Sales and results
DORO, listed on Stockholmsborsen's O-list, recorded sales of SEK 216 million (278 m) for Q1 2002, a fall of 23% compared with the previous year. The major drop in sales has mainly been noted on several European markets outside the Nordic region. Margins have improved through lower guarantee costs, better stock control and new product launches. Overheads have fallen thanks to lower personnel and infrastructure costs. Results were charged in Q1 with SEK 4 million for costs of organizational changes and obsolescence of broadband stock. Reduced borrowing and reduced loans in foreign currency have cut financial costs. The Group's loss before tax was SEK 9 million (-26 m).
Market position
The lacklustre demand from 2001 continues. On some markets our retailers have had large stock volumes, which have negatively affected sales. DORO launched a number of new products in Q1. Sales have begun of the new digital cordless telephones (DECT) 5035 and 5045. The Audioline 30 and 35 have been launched in the cordless analogue telephone product area. The corded telephone range has seen additions to the Afti, Congress and Audioline models. The market for cordless broadband products continued to be weak during the first few months of the year.
Restructuring
Restructuring is proceeding according to plan and the headcount has been cut to 213 (298), with a further reduction planned by the end of Q2 to around 200. DORO's overheads have been cut by over 20% compared to the same period last year. The more stringent quality assurance routines are providing considerably lower quality costs for new products and creating greater customer satisfaction.
A number of measures have been taken within product supply to improve delivery performance and take advantage of the Group's collective purchasing potential. Co-ordination of the Nordic structure is continuing. Danish logistics and service were moved to Sweden during Q1. DORO is investing in a wide range of corded and cordless telephony. This is due to the company's sharper focus on market analysis, target groups and choice of relevant sales channels.
Telephone exchange activities sold
In line with DORO's new strategy of refining activities and focusing on corded and cordless telephony, DORO sold its telephone exchange activities on 15 March. The sale included activities in the Nordic countries. The buyer was Lanict AB (part of the Landis ICT Group from Holland) via an asset and liability acquisition. The sale has not affected Q1's results, however it has improved the cash flow. Including the asset and liability sale, sales amounted to SEK 21 million in Q1. Telephone exchange activities had sales of around SEK 70 million in 2001 and showed a loss.
Work to refine DORO's activities continues.
Further reduced balance sheet
The consolidated balance sheet total has declined by SEK 23 million to SEK 374 million (644 m) since the start of the financial year. Investments totaled SEK 1 million (2 m). Goodwill stood at SEK 38 million (67 m).
The Group's net debt (interest-bearing liabilities less cash) is at the same level as the start of the year, SEK 36 million (35 m). The debt/equity ratio increased from 0.72 to 1.11. Stock has marginally increased by SEK 6 million to SEK 131 million (328 m) from very low levels.
The cash flow from current activities continued to be positive in Q1 and stood at SEK 1 million (-39 m).
The outlook for the coming year
DORO sticks with the assessment made in its Annual Report that 2002 will show a positive trend and produce significantly better results. The demand in the telecom-sector is estimated to be lower than previous forecasts. Considering the market change the conditions for having a positive full-year result is estimated to be reduced.
Parent company
The parent company's net sales totaled SEK 8 million (5 m). The profit before tax was SEK 16 million (-19 m). Dividends have been received from subsidiaries.
Future reports
The Board has decided on the following dates for 2002's quarterly reports: 2 August, 22 October and 30 January 2003.
The quarterly reports will be available on the Internet: www.DORO.com. This Financial Statement has been drawn up according to the same accounting principles as the last Annual Report and has not been subject to examination by DORO's auditors.
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The following files are available for download: http://www.waymaker.net/bitonline/2002/04/19/20020419BIT01090/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/04/19/20020419BIT01090/wkr0002.pdf The full report