Kontron closes 2015 on a high note – moves forward with Ennoconn

Gross margin ended up at 26.1%, slightly above 2014 and above its target of 25.0%. EBIT adjusted for restructuring cost increased by 64.8% to EUR 14.5 million (compared to the EBIT in 2014 of EUR 8.8 million). The company's reported EBIT increased by EUR 11.3 million to EUR 6.2 million (which is quite the climb from EUR -5.1 million in 2014). Order intake dropped by 18.7% to EUR 391.8 million (2014: EUR 481.7 million), leading to a book-to-bill ratio of 0.84. “There is no doubt that we had to contend with major challenges during the 2015 fiscal year. For the first time since I was appointed CEO, we had to make a downward adjustment to our annual guidance. However, the results posted for the fourth quarter, and especially the new strategic partnership with Ennoconn give us reason to be optimistic for 2016 and beyond”, says Rolf Schwirz, Kontron’s CEO. “This partnership puts us in an excellent strategic position to exploit the opportunities associated with the rapid development of the Internet of Things.” The company's strategic partnership with Ennoconn Corporation, announced in early 2016, represents a transformational strategic realignment. Through this partnership with Ennoconn – a subsidiary of Foxconn – Kontron achieves a range of strategic and operational objectives: It re-establishes a strong and permanent foothold in the APAC marketplace. Likewise, it intensifies cooperation with a company which can help lower its cost base, thus giving especially its Communications business a new lease of life. Moreover, it regains access to production capacity in Asia which will boost its channel business in particular. And finally, the cash injection enhances financial flexibility.