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Technology
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Market Cap £198.0m
Enterprise Value £196.2m
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Position in Universe 710th / 1832

ELEKTROBIT CORPORATION (EB) RAISES ITS OPERATING RESULT GUIDANCE FOR 2013 DUE TO BETTER THAN EXPECTED LAST QUARTER AND GIVES MORE PRECISE NET SALES OUTLOOK FOR 2013

Tue 17th December, 2013 5:10pm

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20131217:nHUGdrq8


STOCK EXCHANGE RELEASE


Free for publication on December 17, 2013, at 7.10 p.m. (CET+1)


ELEKTROBIT CORPORATION (EB) RAISES ITS OPERATING RESULT GUIDANCE FOR 2013 DUE TO BETTER THAN
EXPECTED LAST QUARTER AND GIVES MORE PRECISE NET SALES OUTLOOK FOR 2013

Elektrobit Corporation (EB) raises its profit guidance for 2013 due to the better than expected
last quarter. The reason for the improvement of the last quarter is higher than expected net sales
and better profitability in projects in the Automotive Business Segment. EB expects the operating
result of the whole year 2013 to be approximately at level of EUR 8 million (restated operating
profit without non-recurring items of EUR 5.1 million, in 2012). Net sales is expected to grow
slightly more than expected in the last quarter and net sales of 2013 to be approximately at the
level of EUR 200 million (restated net sales of EUR 173.9 million, in 2012).

As estimated earlier the operating profit in 2013 in the Automotive Business Segment will
accumulate mainly during the second half of the year (EUR 1.2 million, 1H 2013). This is affected
by the higher software license sales during the latter half of the year and other seasonality
factors, as well as the demand for EB's automotive software solutions that has remained good
during the end of the year.

In the Wireless Business Segment the operating result in the second half of 2013 is expected to be
at the same level or lower than in the first half of 2013 (EUR 0.1 million, 1H 2013). The Wireless
Business Segment started cost saving measures in August 2013 due to the decreased order volume
from a large customer of EB and due to the delays in some special terminal projects. With these
measures EB estimates to achieve EUR 0.8 million cost savings, which will materialize mainly
during the fourth quarter. In the fourth quarter, in addition to R&D service sales, there will be
product based income from the authority markets in the Wireless Business Segment.

Earlier in the Interim Report released on November 7, 2013 EB expected for the year 2013 that net
sales will grow and operating result will be at the same level as it was in 2012 without
non-recurring items (restated net sales of EUR 173.9 million, and restated operating profit
without non-recurring items of EUR 5.1 million, in 2012). 

The non-recurring net profit of about EUR 24 million, resulted from the sale of the Test Tools
product business, has no impact on the operating result of 2013 and therefore has no impact on the
operating result guidance. All profits and costs related to the mentioned business will be
presented in the Financial Statement bulletin in the group's income statement, below operating
profit under "result for the period from discontinuing operations". 

The profit outlook for the year 2013 does not include possible non-recurring income or costs
related to the reorganization cases of TerreStar Networks Inc. More information about the
reorganization cases of TerreStar Networks and the amount of the receivables and collecting the
receivables as well as other uncertainties regarding the outlook is presented in the Report by the
Board of Directors 2012 available at www.elektrobit.com/annualreport
http://www.elektrobit.com/annualreport . 

EB will publish its Financial Statement Bulletin on February 20, 2014 at 8.00 am.

Oulu, December 17, 2013

Elektrobit Corporation (EB)
Board of Directors

Further information:
Jukka Harju
CEO
Tel. +358 40 344 5466

Distribution:
NASDAQ OMX Helsinki
Principal media

Elektrobit (EB)

EB creates advanced technology and turns it into enriching end-user experiences. EB is specialized
in demanding embedded software and hardware solutions for wireless and automotive industries. The
net sales from continuing operations in 2012 totaled MEUR 185.4. Elektrobit Corporation is listed
on NASDAQ OMX Helsinki. www.elektrobit.com http://www.elektrobit.com/ 



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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX
Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content,
accuracy and originality of the information contained therein.
Source: Elektrobit Oyj via Globenewswire


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