Interim report January-June 2012Lund, Sweden, 2012-08-21 07:30 CEST --
Significant events in the second quarter of 2012:
• Net sales amounted to SEK 156.5 m (164.9), a decrease of 5.1 percent.
• Operating profit (EBIT) amounted to SEK 4.6 m (10.4), a decrease of 56 percent. The operating margin was 2.9 percent (6.3).
• Profit for the period amounted to SEK 6.0 m (7.9).
• Earnings per share after tax amounted to SEK 0.31 (0.41).
• Cash flow from current operations amounted to SEK 26.0 m (3.5).
• Order intake amounted to SEK 207.0 m (181.0), an increase of 14.3 percent. The Care product range increased by 19.7 percent.
• Investments in new products and services continue.
CEO Jérôme Arnaud: A weak quarter, but strong order intake and strategic product launches are promising
“After four years with growth in each quarter, both our sales and EBIT margin fell in the second quarter compared with the corresponding strong quarter last year. Our accumulated growth rate is currently 9 percent.
However, order intake grew by 14 percent in the quarter and we remain confident in our continued sales growth going forward. Our cash flow also improved considerably during the quarter.
Sales for the quarter were affected by stock reduction in Canada where a customer has been awaiting the launch of our new models. In some European markets, we have seen increased competition from low-price products.
Our Doro PhoneEasy® 740, the world’s first smartphone aimed at seniors which will be launched in the fourth quarter, is well-positioned at the high-end segment of the consumer market and will be complemented by basic phones for the low-end part of the market. Software solutions making PCs and tablets easier to use will be available in September under the Doro Experience® brand.
In addition, the Doro PhoneEasy® 740 will be delivered with integrated TeleCare and mHealth solutions.
We are also continuously updating our range of feature phones. The launch of our 3G models 615/614 in the Nordic region last year continued to have a strong impact on growth in the second quarter of the current year. These are now arriving as 2G models in other countries. During the current quarter we have also updated our range with the Doro PhoneEasy® 715, a slider phone.
We continue to expand our global presence and customer list using our unique 3G phone PhoneEasy® 615: In April, we signed an agreement with Optus of Australia, which has since been selling this model via the Internet and 840 stores across the country.
In June, we signed a contract with Vodafone Australia. This also strengthens our relations with Vodafone globally. The PhoneEasy® 615, was also launched in June at Orange Israel. It has already become established as their third best-selling model. Following the close of the period, we signed an agreement with Telenor Hungary, which will market the Doro PhoneEasy® 409gsm.
A strong order book, updates of our existing portfolio, the launch of the world’s first senior smartphone, as well as a continued ambitious product development program give me reason to look forward with confidence to the remainder of the year and beyond.”
For further information, please contact:
President & CEO, Jérôme Arnaud, +46 (0)46 280 50 05
Vice President & CFO, Annette Borén, +46 (0)70 630 00 09
Doro AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for public release on Tuesday, August 21, 2012, at 07:30 a.m. CET.
About Doro
Doro, the leader in the telecom care market, is a Swedish public company. With over 38 years of experience in the telecom industry, the company focuses on developing, marketing and selling products, software, TeleCare and mHealth solutions specially adapted to the growing worldwide population of seniors. Doro’s range of easy-to-use mobile phones is unmatched and its unique know-how has been recognized through several international design awards. The company’s products are sold in more than 30 countries on five continents. In FY 2011 revenue totaled SEK 745 m. Doro’s shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic list, Small companies. Read more about Doro at www.doro.com.
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