IPTE post 85 % higher sale in 2007

IPTE ended the 4th quarter of 2007 with a profit before taxes of EUR 2,591,000 compared with EUR 686,000 in the 4th quarter of 2006. Sales were EUR 68.5 million, as against EUR 35.2 million in Q4 2006. Managing Director Huub Baren: “2007 is the best year in the group's history since it was founded 15 years ago. Both activities performed excellently in 2007. The takeover of the Barco surface mounting activity at the end of last year was the right choice in expanding our contract manufacturing activity.” Internal growth in contract manufacturing was 25 percent (from EUR 88 million in 2006 to EUR 110.4 million in 2007). With the acquisition of the Barco surface mounting activity, sales of the contract manufacturing activity now mount to EUR 195 million, making IPTE one of the largest subcontractors in the Benelux. The automation activity also produced a strong performance in 2007. After 2 years of stable sales of EUR 50 million, our annual sales rose to EUR 60 million, also with positive earnings. Our total order book at the end of 2007 was EUR 83 million (end 2006: EUR 50 million). Sales of the automation division rose from EUR 11.4 million in Q4 2006 to EUR 17.1 million in Q4 2007. The division ended the fourth quarter with an order book of EUR 18.3 million (EUR 17.8 million at the end of the third quarter). Sales of the ‘Contract Manufacturing’ division rose from EUR 24 million in Q4 2006 to EUR 51.4 million in Q4 2007. Internally-generated growth in the 4th quarter was 20.8 % (from EUR 24 to 29 million). The division's order book stood at EUR 64.7 million at the end of Q4 (EUR 70.7 million at the end of Q3). During the 4th quarter of 2007 the company concluded a number of foreign currency hedging contracts (purchases of dollars). Based on the marking to market valuation principle, the company recognized a financial exchange loss of EUR 601,000 in the 4th quarter. Also recognized in the 4th quarter was a deferred tax receivable of EUR 1,500,000. This tax receivable, which has been conservatively estimated, is recorded on tax carryforwardable losses (according IAS 12, paragraph 37 “Reassessment of unrecognised deferred tax assets”). At the beginning of 2007 IPTE acquired Barco's surface mounting activities at Poperinge (Belgium) and Kladno (Czech Republic). Both plants have since been fully integrated into the contract manufacturing activity. In Romania it was decided to move to new industrial premises. These have since been built, and the move will take place in February 2008 with limited influence on the production and the Q1 results. IPTE has appointed Luc Switten as CEO of the IPTE group from 1 January 2008. Mr Huub Baren will remain joint managing director until the General Meeting of 29 April 2008. From 29 April 2008, Mr Baren will take over from Mr Erik Dejonghe as chairman of the Board of Directors, who will keep an active role in the Board of Directors. On 8 January 2008 IPTE signed a letter of intent to acquire Platzgummer GmbH, which specializes in developing customer-specific automation solutions. The completion of this acquisition is expected shortly.