Strategic Investments A/S
Interim report for the period 1 July – 30 September 2011

Danionics A/S 

25.11.2011 16:29
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Copenhagen, Denmark, 2011-11-25 16:29 CET (GLOBE NEWSWIRE) -- 

Summary

  -- As expected, Danionics reported a loss for the third quarter of DKK 0.3
     million.
  -- The company reiterates its full-year forecast of a loss of DKK 3 million
     before recognition of the share of the profit/loss or value adjustment in
     Danionics Asia.
  -- The situation in the joint venture developed negative.

Management's report

Financial performance in the third quarter of 2011

As expected, Danionics reported a loss for the third quarter of DKK 0.3
million. The loan capital to Danionics Asia was not written down in the period
because no expense was incurred on behalf of Danionics Asia in the third
quarter of 2011. Apart from the writedown in 2010, the third quarter financial
performance was approximately DKK 0.3 million better than in the same period
last year. The improvement was attributable to lower administrative expenses. 

The loan capital to Danionics Asia was recognised in the amount of DKK 0 at 30
September 2011, which is unchanged compared to the third quarter of 2010. 

Cash amounted to DKK 4.3 million. Equity amounted to DKK 4 million at the end
of the third quarter, up from DKK 2 million at 31 December 2010. The change in
equity corresponds to the loss for the period with the addition of the capital
increase carried out in the second quarter. 



The joint venture

The development in the business during 3rd quarter was negative. The sole
supplier status to the largest customer was unfortunately lost, as they entered
into agreement with a second supplier. A new large customer delayed taking
delivery of batteries ordered and produced because a wire was too long. The
attempts to sell large batteries so far also failed, as the market favored
products for Apple and Samsung rather than those from Danionics potential
customers in Taiwan. 

Because of continued cost cutting and increased sales in July, August and
September the losses in the third quarter were halved compared to the quarter
before. 

Sales in October collapsed to only 35.000 batteries and the orders so far
received for the rest of the year are the lowest ever. This is not only the
situation in Danionics, but the whole industry is feeling the effect of lower
sales and built-up of stocks due to the general economy situation. 

Danionics joint venture partner has approached Danionics A/S suggesting that a
major strategic review of the future of the joint venture is made, studying
also ways of reconstructing the business. 



Outlook for 2011

Danionics retains the forecast for 2011 presented in the annual report for 2010
released on 9 March 2011. The financial results for 2011 will be impacted by
marketing and sales costs related to the joint venture and administrative
expenses of approximately DKK 3 million. Overall, Danionics therefore expects
an overall loss in the region of DKK 3 million after interest income but before
recognition of the share of the profit/loss or value adjustment 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. 


         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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