DGAP-News: InTiCa Systems AG: Start-up costs for large

InTiCa Systems AG / Half Year Results

19.08.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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 Growing automotive and industrial business cannot fully compensate for
sales decline in Telecommunication segment; sales drop by 22% to 17.1
million EUR (PY: 21.8 million EUR)
 Capacity expansion and preparation of high-volume production in
Automotive segment lead to rise in personnel expense and depreciation
 Resulting net result of -0.9 million EUR in the first half-year 2008 (PY:
1.2 million EUR)

Passau, August 19, 2008  InTiCa Systems AG (ISIN DE0005874846, Prime
Standard) recorded a decline in sales by 21.6% to 17.1 million EUR in the
first six months of the current financial year, after 21.8 million EUR in
the prior-year period. The sales decline is solely accounted for by the
performance of the Telecommunication segment, whose business volume dropped
by 27% or 5.1 million EUR to 13.7 million EUR. This development was
contrasted by a sales plus of 8% in the Automotive segment to 3.1 million
EUR and revenue of 0.2 million EUR generated in the Industry Electronics
segment, four times higher than in the previous years period of
comparison.

The considerable drop in sales of the Telecommunication segment is due to
several factors: For one, the loss of the business relationship with a
Northern European telecommunication company continues to affect the second
quarter, as sales generated with this customer are included in the
prior-year figures. The sales volume was also reduced by the scheduled
attribution of transactions without contribution margins. Finally, the
product mix shifted from products for the service provider side with
relatively high added value towards lower-margin products for the
subscriber side in the second quarter. Following good supplier business
with the service providers in the prior-year period, the major
telecommunication companies show investment restraint this year.

Earnings before interest and taxes (EBIT) went down to -0.8 million EUR in
the reporting period from 1.7 million EUR in the previous year, due to the
decline in sales and changes in the product mix.

Particularly the considerable increase in personnel expense by 0.7 million
EUR and depreciation and amortization by 0.8 million EUR in connection with
the capacity expansion of the automotive business had a negative effect on
results as well. Consequently the six-month result after income taxes comes
to a loss of 0.9 million EUR, after a net income of 1.2 million EUR in the
prior-year period.

Development expenses remain at a high level at 1.1 million EUR (PY: 1.0
million EUR). The slight increase essentially results from the capacity
enhancement relating to product development in Passau. Particularly in the
field of RFID applications, customer specific developments for entry and
driver authorization systems as well as tire pressure monitoring systems
are carried out. Additional current developments relate to the growth
drivers hybrid and solar technology.

Compared to the prior-year mark, capital expenditures of the first
half-year 2008 rose by 1.3 million EUR to roughly 3.4 million EUR (PY: 2.1
million EUR). The focus continued to be set on the expansion of the
virtually automated high-volume manufacture for automotive electronics and
the new VDSL technology located in Prachatice, Czech Republic.

The cutback in liquid assets from 15.5 million EUR as of December 31, 2007
to 13.7 million EUR as of June 30, 2008 is due primarily to increased
capital expenditures for inventories and property, plant and equipment, for
the continued expansion of volume manufacture in the Automotive segment.

After 59 % as of December 31, 2007, the Groups equity ratio rose to 61% as
of June 30, 2008 due to the reduction of current liabilities in particular.

InTiCa Systems has set the course for profitable growth in the future. The
results for the current financial year, however, are affected by the
coincidence of high start-up costs for the generation of future revenues
with measures taken for the structural improvement of the current business.
The review of the customer structure and the elimination of contracts
without contribution margins generate resources and capacity that can be
used for growth in the volume segments with high added values and high
profit contributions for the future. However, the Groups total sales in
the financial year 2008 will be down from the previous year.

The sales decline, the cost increase due to capital expenditures for the
establishment of sales and development resources towards new innovative
growth projects, and one-time extraordinary expenses will result in a net
loss to be reported for the whole financial year 2008.

InTiCa Systems AG

The Board of Directors


Walter Brückl
CEO

Phone:  +49 (0) 851  966 92  0
Fax:    +49 (0) 851  966 92  15
eMail:  investor.relations@intica-systems.de 



DGAP 19.08.2008 
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Language:     English
Issuer:       InTiCa Systems AG
              Spitalhofstraße 94
              94032 Passau
              Deutschland
Phone:        0851 / 96692 0
Fax:          0851 / 96692 15
E-mail:       investor.relations@intica-systems.de
Internet:     www.intica-systems.de
ISIN:         DE0005874846
WKN:          587484
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Hamburg, München, Stuttgart
End of News                                     DGAP News-Service
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DGAP-News: InTiCa Systems AG: Start-up costs for large serial production and capital expenditures for innovative growth projects result in net loss for the six-month period
