The profit before tax was NOK 12.8 million (NOK 59.0 million). Cash flow from operations was stable and amounted to NOK 62.3 million (NOK 66.5 million). The order intake was NOK 454.7 million and the order backlog was NOK 795.8 million, a decrease of 17.0% and 18.1% respectively.

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Improved market conditions
While the activity level in fourth quarter 2009 is lower than the same period in 2008 we see a stable trend towards improved market conditions quarter by quarter. The sales and marketing activity is high and there is an increase in the value of pending prospects. The slow but steady improvement in the order backlog continued in Q4 and is another sign of the improved market conditions.

Kitron has also taken strategic steps to expand the market coverage and further improve its competitiveness. In Germany Kitron has acquired a smaller EMS company (about 15 employees) as a steppingstone to approach the German market. The German entity will focus on front-end engineering and new product introduction in addition to sales and marketing activities.

In China Kitron has decided to set up an operation to expand market coverage and to establish another lower cost manufacturing unit. The new unit will start up manufacturing in the second half of 2010. Kitron has successfully implemented a capacity adjustment programme during 2009 and is continously focusing on operational improvements and global sourcing. In the fourth quarter the result improved compared to the previous two quarters as a result of the measures taken.

Divesting the development department
To further consolidate its operation Kitron has decided to divest its development department and to enter into a strategic alliance with a dedicated development company. At the same time Kitron is increasing its focus on industrialisation, test and new product introduction in Arendal. The objective is to improve the complete offering to the customers by combining the strengths of Kitron with a larger development environment.