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Chambesy, Switzerland, Jan 28, 2008 - (ABN Newswire) - Corporate news announcement processed and transmitted by Hugin ASA. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- --------------
Geneva - January 28, 2008
Advanced Digital Broadcast Holdings S.A. (SWX: ADBN) reported today preliminary unaudited consolidated revenue and profitability numbers for full-year 2007, as well as certain other items.
ADB Group revenue grew 13% to US$ 296 million in 2007 from US$262.3 million in 2006. This exceeded the STB market growth estimated by industry analysts, and thus the Group achieved a net market share gain during 2007.
The share of high-definition products continued to increase as a percentage of the Group's revenue. Gross margin improved compared to 2006 and to first half of 2007 as a result of the Group's cost reduction initiatives and increased Average Selling Price.
The Group's EBIT, Income for the year, and Earnings per share, are all positive for the year 2007, but were affected by one-off charges principally related to the relocation of manufacturing. EBIT excluding such charges is around 4% of revenue. EBIT as reported, inclusive of such charges, cash and non-cash, is around 1% of revenue.
The reorganization measures announced by the Group on November 1, 2007 are now in effect. Production is now fully moved to Thailand since end of October 2007, and the new business unit organization of its digital TV equipment is close to completion. In order to further optimize its cost structure, the Group has also decided to discontinue its New Initiatives segment, which will happen during first-half 2008.
Andrew Rybicki, Chairman and CEO, stated: "The demand was broadly in line with our expectations in 2007. The discontinued European manufacturing operations caused certain issues which the increased production in Thailand was mostly able to address, but some demand still remained to be fulfilled at the end of the year. All in all, we grew our revenue and returned to profitability in 2007. At the same time, we decisively focused on implementing the necessary actions to improve our business efficiency. I am pleased that we successfully completed the move of 100% of our production to Thailand according to plan. We now have a reliable supply chain".
The Group sees the build-up of a strong orders backlog into 2008, partly driven by two upcoming major media events: the European Football Championship and the Beijing Olympics. The Group is confident that it is now in a position to meet positive demand developments in 2008.
The Group's Board of Directors has approved an employee stock option programme to retain and motivate employees. The plan is based on approximately 600,000 stock options with an exercise price corresponding to the market price, plus a 10% premium until the share price reaches CHF 51. Options shall vest over three years from the date of grant. Shares allocated to the plan will come from the Group's treasury shares and its conditional capital. The first issuance of options will be conducted during the first quarter of 2008.
ADB Group management will hold a telephone conference today at 10:00 CET to comment on this release.
To connect to this conference, interested participants should dial: +41 22 580 29 92 To ask a question, participants will be required to dial: 01
ADB Group will publish its full 2007 results on February 28, 2008.
-end-
About ADB Group (SWX: ADBN)
ADB Group (www.adbholdings.com) was founded in 1995 and is a leading developer of solutions required to view and interact with digital TV broadcast through cable, satellite, terrestrial and IP networks. The Group primarily sells consumer premise devices, including set-top boxes, with over 9 million units deployed since 1997. The development and sales of the Group's products and services are conducted in three main operating segments: the Digital TV Equipment segment, mainly operated by ADB (www.adbglobal.com), Software and Services segment, encompassing Osmosys (www.osmosys.tv) and Vidiom Systems (www.vidiom.com) and New Initiatives segment, which includes interactive applications, new media, content and related services. This segment operates essentially under the Group's tele.DOM (www.teledom.tv) and Simple (www.simple.tv) brands.
This press release or related communications may contain forward-looking statements. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors, among which: * future developments of the world digital TV market, in particular the future demand for digital TV products in the key markets and from key customers served by our Group; * pricing pressures, competitive market situation; * our and the industry's capability to successfully and timely innovate and develop challenging technology, and our capability to hire and retain high-level employees; * changes in the exchange rates between the US$ and the main other operating currencies of the Group, including the Euro and the Polish Zloty; * our ability in an intensive competitive environment, to continue securing orders from existing or new customers and to achieve our pricing expectations for volume supplies of new products in whose development we have or are currently investing; * the ability of our suppliers to meet our demands for supplies, qualitatively or quantitatively, and to offer competitive pricing; * our gross margin could vary significantly from expectations based on changes in revenue levels, product mix and pricing, changes in unit costs, and the timing and execution of shipments ramp-ups; * changes in the economic, tax, social or political environment, including import and other duties, military conflict, terrorist activities, as well as natural events such as severe weather, health risks, epidemics or earthquakes in the countries in which we, our key customers and our suppliers operate; * our ability to obtain required licenses on third-party intellectual property on reasonable terms and conditions, the impact of potential claims by third parties involving intellectual property rights relating to our business, and the outcome of litigation; * the results of actions by our competitors, including new product offerings and our ability to react thereto;
Advanced Digital Broadcast Holdings SA undertakes no obligation to publicly update or revise any forward-looking statements. Advanced Digital Broadcast Holdings SA reserves the right to amend the information at any time without prior notice.
The information contained in this press release may not be considered as being a substitute for economic, legal, tax or other advice and you are cautioned to base investment decisions or other decisions on the content of this release. You are recommended to consult your investment advisers or other advisers prior to making any decision.
This press release is not an offer of securities for sale or a solicitation to invest in Advanced Digital Broadcast Holdings SA securities. In particular, it is not an offer of securities for sale in the United States of America, its territories and possessions. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Advanced Digital Broadcast Holdings S.A. does not intend to register its securities in the United States of America.
