ELSA AG
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PRESSE RELEASE 1615-03-2001
ELSA REPORTS FIRST QUARTER RESULTS
– Revenues EUR 80.8 million (Q1-00: EUR 90.6 m.), decline in computer graphics
– Net loss of EUR – 919 tsd. (Q1-00: EUR +1.6 million) in line with market trend
– International revenues increased by 27%, now 51% of group revenues (Q1-00:36%)
– Cost reduction initiated, near term 10% reduction of personnel expenses
– Strategic reorientation ‘Home Networking’ in full execution
Aachen, May 21, 2001 – ELSA (WKN 507 360), today announced its first quarter
results for the period ending March 31, 2001.
With revenues reduced by EUR 9.4 million in the Company’s consumer graphics
segment, ELSA could not escape the general PC and telecommunications industry
pattern of reduced revenues and earnings. Contrary to these adverse market
conditions, ELSA’s first quarter was characterized by stable sales of EUR 37.1
million in its data communications division, increasing its total share of the
business to 46%. The reduced sales in the computer graphics division of EUR 43.7
million resulted mainly from the delayed availability of new high-end consumer
graphics products. International revenues developed contrary to industry trends,
growing 27% from last year’s first quarter to EUR 41.3 million, now
representing 51% of total group sales. Total group revenues were EUR 80.8
million, after EUR 90.6 million for Q1 2000.
While prices and margins continued to be stable during the quarter, operating
income of EUR -0.4 million (EUR +2.3 million for Q1 2000) and net income of EUR
-0.9 million (EUR +1.6 million for Q1 2000) was primarily impacted by the missed
contributions of the new consumer graphics product generation’s higher margin
business.
Slightly reduced total operating expenses of EUR 17.0 million compared to EUR
17.3 million for the same period last year reflect a stabilization and trend
reversal in cost development as a result of the Company’s internal ongoing
earnings improvement program. ELSA is continuing to adapt its cost structure to
the volatility of the market environment. This will include near term reductions
of personnel expenses by approximately 10%.
To facilitate the strategic reorientation towards digital home networking that
ELSA announced in March, research and development expenditures for the quarter
were increased from EUR 1.9 million to EUR 2.4 million with the objective to
introduce the new product line in the latter part of this fiscal year.
After two years of turbulent growth, the adverse market environment presents an
opportunity for ELSA to consolidate its business while maintaining focus on
earnings, a conservative approach to revenue, acceleration of the Company’s
strategic transition and adapting its cost structure to the volatility of the
market environment.
Background
ELSA is one of the leading providers of Internet access and computer graphics
solutions for the PC. Its product range includes modems, ISDN adapters, ISDN and
DSL routers, videoconferencing systems, graphics boards and monitors. ELSA was
founded in 1980 and today has around 650 employees. In addition to its
headquarters in Aachen, Germany, it also maintains subsidiaries in San Jose
(USA), Taipei (Taiwan) and Tokyo (Japan) as well as in London (UK), Paris
(France), Milan (Italy), Madrid (Spain), Stockholm (Sweden) and Eke (Belgium).
Since June 1998, ELSA AG shares are traded on the “Neuer Markt” trading segment
(WKN 507 360) of the Frankfurt stock exchange in Germany.
Your press contact
ELSA AG
Corporate Communications
Heiner Dahmen
Eckhart Traber
Sonnenweg 11
52070 Aachen
Germany
Tel.: +49-241-606-1144
Fax: +49-241-606-1149
pr.international@elsa.com
Our extensive Internet press service:
ELSA PressLounge: http://presslounge.elsa.com
– Live transmission of press events
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– Comprehensive photo archive
end of message, (c) DGAP 21.05.2001
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