transtec Annual Financial Statements: One-Off Effects Burden Result
Liquidity stabilised / Investments in product innovations and quality assuranceTuebingen, 21 April 2005.
At the press conference on financial statements, the Tuebingen-based IT system manufacturer presented its annual report for financial year 2004. The report showed that one-off effects induced by restructuring burdened the earnings before interest and tax (EBIT), which declined from EUR 0.7 million in the previous year to minus EUR 8.7 million. This was mainly attributable to the expenses for the reconcilement of interests associated with the restructuring measures initiated in mid 2004 and non-scheduled goodwill depreciation.
Turnover declined from EUR 81.7 million in the previous year to EUR 62.7 million. The responsibility for this rested with the continuously weak IT demand and the sale of tec2b AG, which had still contributed EUR 16.3 million to turnover in the previous year. The strong pricing pressure on the market caused the relative gross profit margin to decline from 22.0% in the previous year to 20.6%.
The liquid assets decreased from EUR 8.0 million to EUR 2.3 million, with the company’s liquidity stabilising by the end of the year. Axel Queck, member of the management board in charge of Finance since last autumn, explained: “The painful restructuring measures and the strategic adjustments made in mid 2004 had the desired impact, thus allowing us to perceptibly reduce costs and get our incoming orders back to normal in the second half of the year.“
“Our goal in 2005 is to improve both turnover and earnings by applying our strengths in the development and active marketing of innovative products,“ explains Ertu Uysal, member of the management board in charge of Product Strategy at transtec since the beginning of 2005. “We’ve already laid the necessary foundations, thanks to innovations in the research and development segment coupled with targeted efforts in support and quality assurance. Currently transtec is optimally positioned on the growth market of corporate customers with ten to eight hundred employees.“
Uysal presented the new transtec AG product strategy. The computer system segment, which appeals to customers in the lower scale small and medium-sized companies, is to be extended. In the rapidly growing cluster and SAN segment transtec is now targeting the higher scale small and medium-sized companies and, in addition, will be offering products from the grid computing segment as well as other supercomputer formations. New on the agenda are internally developed storage systems with an excellent price/performance ratio that need not fear the competition from the Far East or America. Up to now transtec has been offering such systems as OEM products.
The liquid assets decreased from EUR 8.0 million to EUR 2.3 million, with the company’s liquidity stabilising by the end of the year. Axel Queck, member of the management board in charge of Finance since last autumn, explained: “The painful restructuring measures and the strategic adjustments made in mid 2004 had the desired impact, thus allowing us to perceptibly reduce costs and get our incoming orders back to normal in the second half of the year.“
“Our goal in 2005 is to improve both turnover and earnings by applying our strengths in the development and active marketing of innovative products,“ explains Ertu Uysal, member of the management board in charge of Product Strategy at transtec since the beginning of 2005. “We’ve already laid the necessary foundations, thanks to innovations in the research and development segment coupled with targeted efforts in support and quality assurance. Currently transtec is optimally positioned on the growth market of corporate customers with ten to eight hundred employees.“
Uysal presented the new transtec AG product strategy. The computer system segment, which appeals to customers in the lower scale small and medium-sized companies, is to be extended. In the rapidly growing cluster and SAN segment transtec is now targeting the higher scale small and medium-sized companies and, in addition, will be offering products from the grid computing segment as well as other supercomputer formations. New on the agenda are internally developed storage systems with an excellent price/performance ratio that need not fear the competition from the Far East or America. Up to now transtec has been offering such systems as OEM products.