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GENEART Publishes Results for Third Quarter 2009 |
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- Net sales increased by 10.7% to EUR 4.3M in the third quarter
compared to previous year's reference period with a slight positive
result
- Launch of a new customer portal allows efficiency increases in
sales and marketing in the future
- Cash, cash equivalents and securities increased to EUR 6.7M due to
improvement of free cash flow
Regensburg, November 12, 2009 - GENEART AG, global leader in Gene
Synthesis and specialist in the field of Synthetic Biology, showed
continued, stable business development in its Consolidated Interim
Financial Statements for the third quarter and the first nine months
of 2009. Net sales increased moderately by 5.8 % for the first nine
months of 2009 to a total of EUR 12.4M (first nine months of 2008:
EUR 11.7M). With EUR 4.3M, the third quarter of 2009 exceeded net
sales compared to the prior year (third quarter 2008: EUR 3.9M),
equivalent to an increase of 10.7%. The defining trend of the
previous quarters therefore continued in the third quarter of 2009:
GENEART recorded continued stable increase of small and mid-sized new
orders, although the economic environment remains difficult. As in
previous quarters, customers of the pharmaceutical, chemical and
biotech industries remain cautious with their placement of new major
orders.
Increased free cash flow during the first nine months of 2009, which
improved to EUR 0.06M from EUR -1.8M during the previous year's
reference period, proves GENEART's high business strength even under
difficult market conditions. Consequently, cash, cash equivalents and
securities increased to EUR 6.7M as per September 30, 2009.
Although market conditions remain challenging, the GENEART Group
reports a slightly positive EBIT of EUR 25 thousand and EUR 51
thousand during the third quarter and over the nine-month period,
respectively (first nine months 2008: EUR 1,4M).
Over the past two years, GENEART made trend-setting investments in an
ever-increasing level of automation and miniaturization as well as in
process improvements. Although these investments affect the 2009
results through increased fixed costs, these investments created the
necessary conditions for sustainable, low-cost structures. For
example, by increasing automation levels GENEART raised the output
per employee by more than 50 % compared to the prior year. The level
of automation and miniaturization is the basis for a highly scalable
production, which, in the future, will allow considerably higher
output with a significantly less than proportional increase in
variable costs. Thereby, GENEART created conditions which will allow
to profit overproportionally from economies of scale and decreasing
unit costs, if and when demand increases. The improved cost
structures enable GENEART to partially pass on savings to customers
and thus to open the market and further consolidate competition.
In order to profit even more from the capacities created, GENEART
focused on increasing efficiencies in the areas of sales and
marketing over the past months, and introduced the first module of a
new customer portal, which allows recording orders in a structured
manner combined with semi-automatic processing. GENEART will fully
profit from these advantages after completing the final stage of
upgrades in 2010. The launch of a new service unit for the
development of cell lines and protein production in mammalian cells
(business unit Cell Lines & Proteins) in May 2009 will contribute to
lifting additional cross-selling potentials in the future.
For the financial year of 2009, GENEART expects to generate net sales
between EUR 16.5M and EUR 17M as well as a slightly positive EBIT,
provided a continuing stabilization of the economic environment
during the fourth quarter.
The report may be downloaded at:
http://www.geneart.com/english/investor-relations/reports/index.html
GENEART Group Jan - Sep 2009
+-------------------------------------------------------------------+
| In EUR Million | Jan 1 - Sep 30, | Jan 1 - Sep 30, |
| | 2009 | 2008 |
|-------------------------------+-----------------+-----------------|
| Net Sales | 12.41 | 11.73 |
| EBITDA | 1.25 | 2.15 |
| EBIT | 0.05 | 1.40 |
| Free Cash flow | 0.06 | -1.80 |
| Number of Employees as per | 182 | 195 |
| the End of the Quarter | | |
+-------------------------------------------------------------------+
For further inquiries, please contact:
Dr. Karoline Stürmer
GENEART AG
Josef-Engert-Str. 11
93053 Regensburg
Germany
Phone: +49-(0)941-942 76-417
Fax: +49-(0)941-942 76-711
ir@geneart.com
www.geneart.com
Frank Ostermair
Better Orange IR & HV AG
Haidelweg 48
81241 Munich
Germany
Phone: +49-(0)89-8896906-10
Fax: +49-(0)89-8896906-66
info@better-orange.de
www.better-orange.de
Legal Information:
This document may contain estimates, prognoses and opinions about
company plans and objectives, products or services, future results,
opinions about these results or opinions leading up to these results.
All these projections into the future are subject to risk,
uncertainty and unforeseeable change outside the control of the
GENEART Group. Many factors may lead to actual results, which
considerably deviate from the given projections for these results.
About GENEART AG:
In 2000, GENEART entered the Gene Synthesis market and has since
become the global market leader. Today, the company is one of the
leading specialists in the Synthetic Biology field. Experts at
GENEART provide key technologies for the development and production
of new therapeutics and vaccines. Customers also take advantage of
GENEART services to customize enzyme attributes, such as the
attributes of enzymes used as detergent additives, and to construct
bacteria, which produce complex biopolymers or break down polymers,
such as synthetics, petroleum components, etc. GENEART's service
portfolio ranges from the optimization and production of synthetic
genes according to DIN EN ISO 9001:2000, to the generation of gene
variants or complex gene libraries and the production of cell lines,
to the development and production of DNA and protein based drug
candidates. GENEART AG in Regensburg and its subsidiaries GENEART
Inc. in Toronto (Canada) and GENEART Inc. in San Francisco (USA)
employ about 180 people. The company is listed on the German Stock
Exchange since May 2006.
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement. Copyright © Hugin AS 2009. All rights reserved.
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