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© kontron (illustration purposes only) Embedded | May 05, 2017

Kontron starts 2017 without a loss

Embedded specialist Kontron reports on revenues of EUR 92.4 million comparable to the prior year (1Q/16: EUR 89.5 million).
In line with the guidance announced for 2017, revenues of EUR 92.4 million roughly match the prior year (1Q/16: EUR 89.5 million). Order intake in the first quarter of 2017 stood at EUR 82.1 million, representing a book-to-bill ratio of 0.89.

EBIT improved to EUR 2.2 million (1Q/16: EUR€ minus 6.1 million). The net result for the period of EUR 150k (1Q/16: a net loss of EUR 6.5 million) is back in the profit zone again for the first time since 2015. This improvement in earnings results from a more favorable product mix in the first quarter combined with a significant decrease in operating expenses of EUR 3.5 million. These cost savings are largely a result of the restructuring program initiated in November 2016.

“The worst is over,” claims Hannes Niederhauser, CEO of Kontron. “After concluding the most difficult year in Kontron’s history in 2016, we returned to profit in the first quarter posting net result for the period of EUR 150k. This has made us optimistic, but we are still cautious. In terms of technology, we must start catching up with the field and improve our order intake. This means we must rapidly complete the merger between S&T and Kontron to combine the strengths of the two companies and develop innovative Industry 4.0 products.”

Outlook 2017

Kontron is forecasting similar revenues and seasonal fluctuations in fiscal year 2017 as in the 2016 fiscal year. The gross profit margin is expected to rise to over 25 percent on account of the partnerships with Ennoconn and S&T. In addition, the Management Board expects EBIT to be positive in 2017. The new restructuring program is expected to produce annual cost savings of over EUR 15 million, most of which were already realized in the first quarter of 2017.

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June 25 2017 8:55 PM V8.5.5-2