Elektrobit raises its profit guidance

Elektrobit Corporation raises its profit guidance for 2013 due to the better than expected last quarter. The reason for the improvement of the last quarter is higher than expected net sales and better profitability in projects in the Automotive Business Segment. EB expects the operating result of the whole year 2013 to be approximately at level of EUR 8 million (restated operating profit without non-recurring items of EUR 5.1 million, in 2012). Net sales is expected to grow slightly more than expected in the last quarter and net sales of 2013 to be approximately at the level of EUR 200 million (restated net sales of EUR 173.9 million, in 2012). As estimated earlier the operating profit in 2013 in the Automotive Business Segment will accumulate mainly during the second half of the year (EUR 1.2 million, 1H 2013). This is affected by the higher software license sales during the latter half of the year and other seasonality factors, as well as the demand for EB's automotive software solutions that has remained good during the end of the year. In the Wireless Business Segment the operating result in the second half of 2013 is expected to be at the same level or lower than in the first half of 2013 (EUR 0.1 million, 1H 2013). The Wireless Business Segment started cost saving measures in August 2013 due to the decreased order volume from a large customer of EB and due to the delays in some special terminal projects. With these measures EB estimates to achieve EUR 0.8 million cost savings, which will materialize mainly during the fourth quarter. In the fourth quarter, in addition to R&D service sales, there will be product based income from the authority markets in the Wireless Business Segment.