Cicor focuses on consolidation

Earnings lagged behind the mainly acquisition-driven sales growth because of continued optimization measures in the PCB area and especially because of the restructuring activity required in the EMS Division following the acquisition of Electronicparc Group. These restructuring and optimization costs were charged directly to the income statement. According to IFRS accounting rules the restructuring contribution of CHF 2.6 million paid under contract by the vendors of Electronicparc Group could not be shown in the income statement. Instead it had to be reported as a reduction in the sale price. Thanks to the streamlining of structures and balance sheets, the company believes that it will be able to substantially improve earnings this year - especially since its acquisitions in the microelectronics sector have brought two very profitable companies into the Cicor Group. The completion of the acquisition of Reinhardt Microtech Group in Wangs (SG) and of the German company RHe Microsystems GmbH has prompted the Board of Directors to establish a third division to accommodate the two companies. This is the new Microelectronics Division. To facilitate all this, 62,000 new shares are being issued from authorized capital to finance part of the Reinhardt Microtech acquisition, and another 72,000 shares to refinance the purchase of RHe Microsystems GmbH.