Continued steady growth of order intake and sales in Care Electronics

Continued steady growth of order intake and sales in Care ElectronicsHighlights during the first quarter 2009:• Net sales in Q1 increased to SEK 94.7 m (71.4), an increase of 32.6 percent. • Operating profit (EBIT) amounted to SEK 4.0 m (1.1), while the pre-tax profitamounted to SEK 0.1 m (0.6).• Earnings per share after tax: SEK 0.01 (0.03).• Cash flow for the first quarter was positive at SEK 8.0 m (negative: 17.4),mainly due to decrease in working capital and the positive operating result. • Order intake was SEK 99.4 m (58.1), an increase of 71.1 percent.• After the end of the period: Settlement reached in Japanese dispute, emanatingfrom 1999.• Revenues are expected to show a continued favorable trend in second quartercompared to previous year.Comments by the CEO, Jérôme Arnaud:“Despite a clear weakening of the market for consumer electronics in late 2008and beginning of 2009, Doro has demonstrated good resilience and continued togrow. In the first quarter of 2009, Group sales rose by more than 30 percent andthe market appreciated our focus on Care Electronics products. The favorableorder bookings we witnessed in the fourth quarter of 2008 has continued into thefirst quarter 2009, where the order intake was SEK 99.4 m, an increase of 71.1percent compared to the same quarter in 2008.This is mainly explained by the continued increase in market share and thepenetration of new markets by Care Electronics and the GSM phones launched in2008. This was combined with resilient sales in Home Electronics. Doro's salesof GSM phones rose threefold in the first quarter of 2009, a sign of strength,particularly considering a recent study from Swedbank estimating an 18-percentsales decline in the overall market for GSM phones in that period. We are nowcontinuing our efforts to reinforce our leading position in the market forsimple mobile phones by introducing five new models to the market betweenmid-April and mid-June. These additions mean we now have the broadest, mostmodern and well-adapted range for seniors seeking a mobile phone that isattractive and easy to use.Regarding international expansion, product certifications for the US market arewell in progress as well as negotiations with operators.In Home Electronics, which combines the former Home Electronics and BusinessElectronics operations, we are managing to resist to the market decline. We aregrowing more relevant to retail customers by offering the both residentialphones and easy-to-use GSM devices.As a result, our operational result (EBITDA) has increased significantly up toSEK 5.4 m (5.7 percent of sales). This result allows us to invest more in brandbuilding and sales in next quarters.Cash flow has clearly improved as a result of focused efforts to reduce workingcapital despite our growth.We have also reduced our net indebtedness since the close of 2008, from SEK 30.7m to SEK 23.5 m.  Doro's user-friendly products, developed specially for the senior target group,continue to win international awards. In the first quarter, five products withinthe Care Electronics product segment, including the HandleEasy 326gsm mobilephone, received the iF Gold Award, one of the world's foremost design prizes.We are convinced that our strategy of growth within Care Electronics willcontribute to our ability to improve earnings. Our core markets - the Nordicregion and continental Europe - show increasing demand, while the US marketremains at an early phase. Finally, I am also pleased with the amicable settlement we reached in a Japanesedispute dating from 1999, which will have a positive cash impact ofapproximately SEK 4 m in the second quarter of 2009.”President & CEO Jérôme Arnaud, +46 46 280 50 05CFO, Annette Borén, +46 46 280 50 62About DoroWith over 30 years' experience in telephony Doro is today characterized byinnovative and user-friendly consumer electronics products. The company developsmarkets and sells a wide range of products in two business units: CareElectronics and Home Electronics. The company's products are sold in more than30 countries worldwide through a variety of retail outlets, includingelectronics stores, online stores and specialized channels. The company hadsales of SEK 363 million in 2008. Doro's shares are quoted on the Nasdaq OMXNordic Exchange Stockholm, Small Cap. Read more about Doro at www.doro.com


Doro AB
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