Strategic Investments A/S
Interim report – first quarter of 2011

Danionics A/S 

28.04.2011 12:07
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Summary

  -- As expected, Danionics reported a loss for the first quarter of DKK 0.5
     million before recognition of a DKK 0.2 million value adjustment in
     Danionics Asia.
  -- The company reiterates its full-year forecast of a loss of DKK 3 million
     before recognition of the share of the profit or loss or value adjustment
     in Danionics Asia.
  -- Danionics incurred costs of DKK 0.2 million on behalf of Danionics Asia
     during the first quarter.

First quarter 2011 financial performance

As expected, Danionics reported a loss for the first quarter of DKK 0.5 million
before recognition of a DKK 0.2 million writedown of the loan capital to
Danionics Asia. The writedown equals the sales and marketing costs Danionics
incurred on behalf of Danionics Asia in the first quarter. The Q1 2011
financial performance was on a level with the result achieved in Q1 2010. 

The loan capital to Danionics Asia is recognised in the amount of DKK 0, which
is unchanged from 31 March 2010. 

Cash amounted to DKK 2.0 million. Equity amounted to DKK 1.3 million at 31
March 2011, down from DKK 2.0 million at 31 December 2010. The reduction in
equity corresponds to the net loss for the period. 

The joint venture

2010 was a rollercoaster journey for Danionics Asia.

In the first quarter 208,000 batteries were sold and it increased in the second
quarter to 354,000 batteries. In the third quarter 657,000 batteries were
shipped but at the same time the largest customer announced that it had built
up too large stocks, and this meant a decline towards year-end, which has
gained momentum in the first quarter 2011, being back at the same level as
first quarter 2010. 

Over the year the establishment of a new activity was started; sale of large
batteries to the 'tablet' market. A number of batteries have been developed and
has obtained the necessary approvals and the first test batteries are now
shipped to a large group of potential customers. 

An advantage of the rapid build-up in 2010 was that the factory in Shenzhen for
the first time tried to be in mass production over a longer period. The factory
passed the test. The company currently has an efficient factory which is well
managed. 

The future of Danionics now depends on how many large batteries we manage to
sell and ship in 2011. 

Outlook for 2011

Danionics retains the forecast for 2010 presented in the annual report for 2010
released on 9 March 2011. The result for 2011 will be affected by marketing and
sales costs related to the joint venture and administrative expenses of around
DKK 3 million. Overall, Danionics expects a loss in the range of DKK 3 million
after interest income but before recognition of the share of the profit/loss
for the year or value adjustments in Danionics Asia Ltd. 

Moreover, the company may continue to generate sales revenue, should the sales
efforts undertaken by Danionics A/S result in the inflow of new orders. 

Danionics A/S expects to have sufficient capital to continue in business for
the next 12 months, assuming that the shareholders at the annual general
meeting authorise the Board of Directors to carry out the above issue, that the
Board exercises this authority and that the shares are sold. To the extent that
the share issue is not completed, the company will consider other plans,
including to seek to have Danionics taken over by new owners who can make use
of the listing and the value of the company's tax asset. 



For additional information, please contact:

Henning O. Jensen, Chief Executive Officer, tel. +45 88 91 98 70
News Source: NASDAQ OMX



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Language:     English
Company:      Danionics A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0010271238
WKN:          
 
End of Announcement                             DGAP News-Service
 
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