Order intake up by 14 percent for the quarter but lower revenue and operating profit
OMXLund, Sweden, 2012-08-21 07:30 CEST (GLOBE NEWSWIRE) --Significant events in the second quarter of 2012: Net sales amounted to SEK 156.5 m (164.9), a decrease of 5.1 percent. Operating profit (EBIT) amounted to SEK 4.6 m (10.4), a decrease of 56percent. The operating margin was 2.9 percent (6.3). Profit for the period amounted to SEK 6.0 m (7.9). Earnings per share after tax amounted to SEK 0.31 (0.41). Cash flow from current operations amounted to SEK 26.0 m (3.5). Order intake amounted to SEK 207.0 m (181.0), an increase of 14.3 percent.The Care product range increased by 19.7 percent. Investments in new products and services continue.CEO Jrme Arnaud: A weak quarter, but strong order intake and strategicproduct launches are promisingAfter four years with growth in each quarter, both our sales and EBIT marginfell in the second quarter compared with the corresponding strong quarter lastyear. Our accumulated growth rate is currently 9 percent.However, order intake grew by 14 percent in the quarter and we remain confidentin our continued sales growth going forward. Our cash flow also improvedconsiderably during the quarter.Sales for the quarter were affected by stock reduction in Canada where acustomer has been awaiting the launch of our new models. In some Europeanmarkets, we have seen increased competition from low-price products.Our Doro PhoneEasy 740, the worlds first smartphone aimed at seniors whichwill be launched in the fourth quarter, is well-positioned at the high-endsegment of the consumer market and will be complemented by basic phones for thelow-end part of the market. Software solutions making PCs and tablets easier touse will be available in September under the Doro Experience brand.In addition, the Doro PhoneEasy 740 will be delivered with integrated TeleCareand mHealth solutions.We are also continuously updating our range of feature phones. The launch ofour 3G models 615/614 in the Nordic region last year continued to have a strongimpact on growth in the second quarter of the current year. These are nowarriving as 2G models in other countries. During the current quarter we havealso updated our range with the Doro PhoneEasy 715, a slider phone.We continue to expand our global presence and customer list using our unique 3Gphone PhoneEasy 615: In April, we signed an agreement with Optus of Australia,which has since been selling this model via the Internet and 840 stores acrossthe country.In June, we signed a contract with Vodafone Australia. This also strengthensour relations with Vodafone globally. The PhoneEasy 615, was also launched inJune at Orange Israel. It has already become established as their thirdbest-selling model. Following the close of the period, we signed an agreementwith Telenor Hungary, which will market the Doro PhoneEasy 409gsm.A strong order book, updates of our existing portfolio, the launch of theworlds first senior smartphone, as well as a continued ambitious productdevelopment program give me reason to look forward with confidence to theremainder of the year and beyond.For further information, please contact:President & CEO, Jrme Arnaud, +46 (0)46 280 50 05Vice President & CFO, Annette Born, +46 (0)70 630 00 09Doro AB discloses the information provided herein pursuant to the SecuritiesMarkets Act and/or the Financial Instruments Trading Act. The information wassubmitted for public release on Tuesday, August 21, 2012, at 07:30 a.m. CET.About DoroDoro, the leader in the telecom care market, is a Swedish public company. Withover 38 years of experience in the telecom industry, the company focuses ondeveloping, marketing and selling products, software, TeleCare and mHealthsolutions specially adapted to the growing worldwide population of seniors.Doros range of easy-to-use mobile phones is unmatched and its unique know-howhas been recognized through several international design awards. The companysproducts are sold in more than 30 countries on five continents. In FY 2011revenue totaled SEK 745 m. Doros shares are quoted on the Nasdaq OMX Stockholmexchange, Nordic list, Small companies. Read more about Doro at www.doro.com.Copyright 2012 OMX AB (publ).