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Munich, Germany, 28 April 2013 - According to the provisional figures
CANCOM Group generated, as expected, a slightly lower turnover and a
slightly lower EBIT in the first quarter of 2013. Due to good March which
was better than expected, CANCOM was able to note a clear improvement in
gross profits, EBITDA margin and earnings per share, in comparison to the
same period of the previous year.
In the first quarter 2013 CANCOM Group achieved according to the
preliminary figures revenues of EUR 135.1 million after EUR 141.1 million
in the first quarter of 2012. The decline amounting to 4.2 % was mainly due
to a positive prior year effect, in which the revenue recognition of a
project, under a financial point of view, has been deferred from 2011 to
the first quarter of 2012. In addition the first quarter of 2013 had fewer
working days than the first quarter of 2012 due to the Easter holidays.
Due to the successful expanding of higher-margin services business, the
Group's gross profit according to the preliminary figures could be raised
by 4.0 % up to EUR 43.8 million in the first quarter of 2013, in comparison
to EUR 42.1 million in the first quarter of 2012.
According to the preliminary figures, the consolidated EBITDA of EUR 7.0
million of the first quarter of 2013 is at the same level with the
preceding year's amount of EUR 7.0 million. Because of that, EBITDA margin
raised up to 5.2 % after 5.0 % in the first quarter of 2012.
Consolidated EBIT according to the preliminary figures decreased by 9.4 %
to EUR 4.8 million in comparison to EUR 5.3 million in the first quarter of
2012. The reasons for this decrease are for increased depreciation
resulting from investments made, especially the CANCOM Cloud data center in
Munich as well as the improvements of ERP Systems and eSupplyChain.
The profit for the period from continuing operations raised according to
the preliminary figures by 14.3 % from EUR 2.8 million in the first quarter
of 2012 to EUR 3.2 million in the first quarter of 2013. In the previous
year the profit for the period was affected by special tax effects.
For the first three month of this financial year the CANCOM Group in total
reports according to the preliminary figures earnings per share in the
amount of EUR 0.28 after EUR 0.26 Euro in 2012.
Taking into consideration the positive prior-year quarter, the timing of
the Easter holidays and the overall weaker economic environment, the
Executive Board is satisfied with the results achieved. After a weaker
January and February, March offered a positive surprise and also order
inflow in April lies above the previous year. In addition the Executive
Board is confident to complete three big CANCOM AHP private cloud projects
with reputable customers in the second quarter of the current financial
In contrast to the classical project business, the implementation of cloud
projects does not often result in immediate sales and earnings.
Nevertheless, once these projects have been completed, these customer
services generate a long term safe and steady cash flow for CANCOM. Hence
the growing business with cloud solutions will lead to a slight decline in
revenues and profits in the short term in comparison with the historical
figures. On a long term basis we expect this business to increase the