Financial news
|
04 Sep 2009
Good growth perspectives with newly acquired companies and brand new u-blox 6 GPS receiver platform
During this period, u-blox successfully implemented significant strategic initiatives to expand its total available market. Once a pure-play hardware GPS vendor, u-blox is now a provider of complete wireless and positioning solutions that achieve industry-leading performance by leveraging the use of semiconductor, packaging and software technologies.
Through the successful acquisition and integration of Neonseven, an established technology provider for embedded mobile communications, and Geotate, a Software GPS specialist, the company has gained immediate access to new customers and markets where its technology offering for both location-awareness and wireless communications are crucial:
By supporting existing customer’s product innovation with more solutions, and by entering into new markets where the company was not present before, u-blox is now in an excellent position for long-term growth.
Logistics and Infrastructure
By the end of June 2009, both acquisitions have been successfully integrated into u-blox. This has included the alignment of all logistics, purchasing, finance, manufacturing and quality processes, consolidation of customer base the company’s CRM system, training of all sales and technical support staff, importation and re-branding of all new products and services, and consolidation of the entire operation under a new Corporate Identity including new website, sales documents and product catalog.
Operations
First half of 2009 saw several very positive developments:
Finance
(in CHF 000s) |
Jan. - June 2009 (unaudited) |
Jan. - June 2008 (unaudited) |
Jan. - Dec. 2008 (audited) |
|
|
|
|
Sales
|
34'131 |
40’322 |
74’506 |
Cost of sales |
-15'713 |
-24’256 |
-42’710 |
Gross profit |
18'418 |
16’066 |
31’796 |
Distribution and marketing expenses |
-6'226 |
-5’642 |
-11’434 |
Research and development expenses |
-7'664 |
-4’564 |
-9’277 |
General and administrative expenses |
-2'304 |
-1’499 |
-2’813 |
Other income |
33 |
155 |
139 |
Profit from operations (EBIT) |
2'257 |
4’516 |
8’411 |
Financial income |
165 |
1’205 |
2’268 |
Finance costs |
-610 |
-1’276 |
-7 |
Profit before income tax (EBT) |
1'812 |
4’445 |
10’672 |
Income tax expense |
-274 |
-754 |
-1’911 |
Net profit |
1'538 |
3’691 |
8’761 |
|
|
|
|
Earnings per share (in CHF) |
0.25 |
0.59 |
1.40 |
Diluted earnings per share (in CHF) |
0.25 |
0.59 |
1.40 |
Outlook
The stable revenue development over the past several months, combined with early indicators of recovery in the Americas and Europe leads u-blox management to believe the lowest point of the recession has past. Asia will remain on track for growth thanks to favorable economic conditions and our continued geographical expansion.
The GPS industry in general is evolving towards convergence with both wireless and Internet technologies, a trend that is expected to continue and accelerate, and one that u-blox is well prepared for with the recent acquisitions and latest u-blox 6 receiver generation. The market for embedded wireless communication technology remains very large and growing, and u-blox is now a player in this sector with immediate access via our existing customer base.
The company is optimistic that as a result of the acquisitions and significantly expanded product portfolio, market launch of key new products in the coming months, plus access to large new market sectors and business models leaves u-blox well positioned for 2010.
Financial Report:
www.u-blox.com/sites/default/files/annual_report_2009.pdf
Investor Presentation:
www.u-blox.com/sites/default/files/documents/half_year_results_2009_presentation.pdf