euro adhoc: LS telcom AG / Strong decrease in revenue in 2001/02 at LS telcom (E)

Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.

End of financial year 2001/02:

Strong decrease in revenue in 2001/02 at LS telcom

Lichtenau, Nov. 25, 2002. During the financial year 2001/02 ending at Sept. 30, 2002, LS telcom had to cope with a strong decrease in revenues. Sales revenues of EUR 7.7 million were achieved, i.e. a 29% decrease compared to EUR 10.8 million the year before.
EBIT has fallen on the year-before period from EUR 0.3 million to EUR -9.1 million. After interest earnings and taxation, net loss resulted in EUR -8.0 million (compared to a year-before profit of EUR 0.4 million), corresponding to a loss per share of EUR 1.51 (year-before profit per share EUR 0.09).
The net result has fallen on the year-before, owing to the decline in revenue, a considerable payroll increase of 29% from EUR 6.9 million to EUR 8.8 million, as well as an increase of other operating expenses from EUR 3.0 million to EUR 3.8 million, where also one-time value adjustments of EUR 826 thousand are included, as precaution to possible risks.
High investments in the past now appear in high depreciations which have risen by 70% from EUR 2.7 million to EUR 4.6 million, where this year’s figure also contains extraordinary depreciations of EUR 0.6 million on capitalised development costs plus EUR 0.5 million on UMTS-specific intangible assets.
Total shareholders equity amounts to EUR 18.6 million, equivalent to an equity ratio of 84%. Per end of financial year 2001/02 LS telcom held cash of EUR 10,7 million (EUR 15.8 million the year before). The experienced investment reluctance in wireless industry has lead to massive shifts of revenues to the future, and thus to the discrepancy of this year’s business compared to original expectations. These market factors could not be compensated by LS telcom despite implemented cost saving measures and intensified sales efforts. Since the decline in revenues is rather due to a shift and not a cancellation of projects, the board of LS telcom did not yet implement a severe cut-back of staff, which inherently would bear the risk of loosing valuable expertise and decisive experience. As per Sept. 30, 2002, worldwide payroll comprises 163 staff.
For the financial year 2002/03, LS telcom expects a balanced result. Considering the current order book of EUR 4.5 million and a number of concrete prospects with high likelihood of realisation within the coming quarter, this goal seems realistic.

Further inquiry note:
Harald Ludwig
Tel.: +49(0)7227 9535 705
Tel: +49(0)7227 9535 600
FAX: +49(0)7227 9535 605

end of announcement euro adhoc

Emittent: LS telcom AG
Im Gewerbegebiet 31-35
DE-77839 Lichtenau
Tel: +49(0)7227 9535 600
FAX: +49(0)7227 9535 605
ISIN: DE0005754402
WKN: 575440
Indizes: Nemax All Share
Börsen: free trade Baden-Württembergische Wertpapierbörse, Bayerische Börse, Berliner Wertpapierbörse, Börse Düsseldorf, Bremer Wertpapierbörse (BWB), Hamburger Wertpapierbörse, Niedersächsische Börse zu Hannover; official dealing Frankfurter Wertpapierbörse Branche: Telecommunications Services
Sprache: Englisch