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Cicor with increased profitability in the first half-year 2012


Zurich, 22 August 2012 – Cicor (SIX Swiss Exchange: CICN), a leading international high-tech industrial group based in Boudry (Switzerland) active in printed circuit boards, microelectronics and electronic solutions, achieved during the first half of the year an improved performance with considerably higher margins thanks to Cicor’s systematic focus on operational discipline. During the first six months of the 2012 financial year, the Cicor Group generated net revenue of CHF 84.4 million, representing a slight increase compared to the second half 2011 (CHF 84.1 million) and a 10.8%* drop in the business volume compared to the previous year period (CHF 94.6 million). Net revenue fell short of expectations, primarily due to decreased sales in the domestic market in the Electronic Solutions Division, as yet uncompleted pilot projects in China, and an absence of new orders from the public sector. Negative currency effects amounted to -1.5%. Despite lower sales the operating profit before depreciation and amortization (EBITDA) - due to the initiated reorganization measures - improved by 9.9% to CHF 6.4 million (first half of 2011: CHF 5.9 million). The operating profit (EBIT) increased to CHF 2.5 million (first half of 2011: CHF 2.0 million) and the EBIT margin improved to 3.0% (first half of 2011: 2.1%). Net income amounted to CHF 1.4 million (first half of 2011: CHF 0.3 million).

In 2012, the Cicor Group once again succeeded in winning important orders including large-volume projects in the areas of circuit board assembly, medical applications and industrial solutions with new customers in America, Asia and Europe. Compared to the previous year, the order backlog at the end of June 2012 rose by 5.7% to CHF 123.9 million (31.12.2011: CHF 117 million). With an equity ratio of 58.8% on 30 June 2012, the Group remains on solid financial footing. In conjunction with the new CHF 45 million credit agreement concluded at the end of February 2012, the Group has sufficient flexibility to take advantage of any growth opportunities which may arise and to enter into cooperative arrangements to strengthen its position in key markets e.g. in Asia.

Important operational improvements in the Divisions

As expected, the net revenue generated in the Printed Circuit Boards Division during the first half of the year amounted to CHF 16.6 million (first half of 2011: CHF 19.6 million). The decline can be attributed exclusively to non-transferred, low-margin sales connected to the restructuring efforts related to the transfer of activities and systems of Photochemie AG to Cicorel SA that was successfully concluded within the reporting period. The operating profit (EBIT) underscores the operational benefits of our reorganization efforts. EBIT rose from CHF 0.0 million during the first half of 2011 to CHF 1.9 million; this figure includes CHF 0.3 million in revenue generated through the sale of Photochemie AG, Unterägeri. The EBIT margin climbed to an impressive 11.3%. The Division is currently in an excellent position and, with its 3D-MID centre of excellence, it also has a key technological edge when soliciting new customers. Moreover, the Division has made investments in electroplating and extensive additions to its range of products and services.

The Microelectronics Division found itself confronted with a constantly challenging market environment. The Division generated net revenue of CHF 13.8 million (first half of 2011: CHF 14.8 million, 6.4% less than 2011). In particular, Reinhardt Microtech in Ulm, Germany, and Wangs, Switzerland, suffered under the ongoing absence of public sector orders. Uncertainty surrounding the expansion of the nuclear power sector only made the situation worse. RHe Microsystems GmbH in Radeberg, Germany, succeeded in acquiring new orders, especially in the areas of microassembly and thick-film technology, and in increasing the volume of orders received from existing customers. The Division’s operating result (EBIT) was negative at CHF -1.3 million (first half of 2011: CHF 0.3 million).

Net revenue generated by the Electronic Solutions Division amounted to CHF 43.4 million (first half of 2011: CHF 50.1 million, -13.5% compared to 2011). Operating profit (EBIT) amounted to CHF 2.6 million during the first half year (first half of 2011: CHF 2.8 million) and the EBIT margin improved from 5.6 to 6.0%. The Division invested in process and quality control at the Arad production site in Romania. It added modern test facilities to existing production lines to enable the automatic testing of all electronic modules produced.

The Asia Division generated net revenue of CHF 11.1 million in the first half of 2012 (first half of 2011: CHF 10.5 million), which corresponds to an increase of 5.5%. The operating profit (EBIT) amounted to CHF 0.5 million (first half of 2011: CHF 0.7 million) and was therefore CHF 0.2 million below the first half 2011, as a result of the related costs of the ongoing expansion of the production sites in Asia. The EBIT-margin slightly decreased from 6.6 to 4.3%. The Division succeeded in acquiring several new customers in a financially competitive environment. A large portion of these contracts are still currently in the start up phase. Cicor is well on the way to successfully completing several different projects during the second half of the year 2012 which will then be transferred to large-volume production.

Outlook: Continued execution of growth strategy

Progress made in the area of efficiency underscores the Group’s strategic course of profitable growth through a greater level of standardization and streamlining in its organizational and leadership structures, as well as by applying the expertise that already exists throughout the entire organization. The Cicor Group intends to make targeted use of its newly acquired strengths during the second half of 2012 in a very competitive market environment. Particularly with regard to expansions in its technology portfolio, efforts to foster an exchange of expertise between Divisions, and a needs-based focus on customers, Cicor has made targeted investments in profitable future growth. The Board of Directors and the Management Team are convinced that this preparatory work will pay off and that the simplified, standardized leadership structures will have a positive impact.

Analyst and Investor Conference Call

Date:Wednesday, 22 August 2012 from 10.00 a.m. CET
Registration:Phone call +41 43 811 44 28
Dial-in information:will be provided after registration


Financial Calendar 

Annual Report 201220 March 2013
Annual Shareholders' Meeting 201324 April 2013



Antoine Kohler
Chairman of the Board of Directors
Phone +41 43 811 44 05 

Dr. Roland Küpfer
Phone +41 43 811 44 05

Cicor Management AG
Leutschenbachstrasse 95
8050 Zurich Switzerland

* key figures calculated based on unrounded figures