Here is some DD on LCI Smartpen... LCI REPORTS 64% NET PROFIT INCREASE
Press Release
?s-Hertogenbosch - December 3, 1999
LCI Technology Group N.V. (?LCI?; www.lcigroup.com) in its first half year 1999/2000 surpassed its previous forecast by reporting a sharp increase in profits over the same period last year. Net profit rose by 64% to ? 4.1 million in the first half of 1999/2000 from ? 2.5 million in the first half of 1998/1999. The turnover was up 42% to ? 130.1 million in the first half of 1999/2000 from ? 91.9 in the first half of 1998/1999. The gross margin improved from 29% to 31%, reflecting the positive performance of all operating entities. LCI?s weighted average earnings per share increased by 52% to ? 0.35 compared to ? 0.23 in the first half of 1998/1999. The average number of employees increased to 917 at 31 October 1999 (30 April 1999: 793). The average gross margin per employee increased by 12%, while the average increase in cost per employee rose less than 3%. In line with the current business climate, the management remains positive and expects a continued growth at LCI.
Developments in the first half of 1999/2000
At the Extraordinary Meeting of Shareholders held on April 14, 1999, LCI changed its financial year to commence on 1 May and end on 30 April, effective per 1 May 1999. LCI?s maturity as an e-commerce solution provider is reflected in a number of important contracts, such as a NLG 24 million contract with DaimlerChrysler for an automated customer support center. LCI has further increased its software licenses volume as well as consulting, security and education platform. Our agreement with Litton PRC for implementation of LCI-SMARTpen? has further opened the door for major implementation within the US Federal Government. LCI attended eight major e-commerce and security exhibitions, which attracted many Fortune-500 corporations to its technology in biometrics and its security applications. Financial, industrial and medical partners are already testing LCI-SMARTpen? applications as part of their e-commerce solution. In addition, a number of leading governments and institutions will be reaching the final stage of pilot testing after the first quarter of the year 2000. By this time they anticipate default free internal systems, needed for the implementation, as well as resource allocation for e-commerce.
The number of projects running an average of three to five years increased. The strategic acquisition of Br”ser in Austria and the partnership with Praim for the US market has filled the specific need for our market growth. LCI is now the number three for high-end servers in Austria and number one in IPDS printer connectivity in the USA. The new software developments of Infosoft, Intermate, Soft Cell and e-commerce applications together with LCI-SMARTpen?, are helping LCI to be recognised as a knowledge based organisation. Added to this more than eight hundred IT-specialists, puts LCI in a better position to serve the needs of its customers. The increased demand for software consulting, due to amongst others the millennium issues, has more then doubled our customer base in the Software Group.
Motorola claim
LCI has claimed USD 237 million from Motorola Computer Group for the breach of contract by the latter. Both parties have agreed to binding arbitration by the Arbitral Tribunal of CEPINA in Brussels, Belgium. The arbitration case has reached its final stage and is now pending the decision of the Tribunal. There are no additional costs related to this arbitration and LCI will announce the verdict as soon as it has been given to us.
Outlook 1999/2000
The market conditions for the Information Technology remain positive. The shift to e-commerce and services are advantageous to LCI, specifically growth in Internet, biometrics, videoconferencing, software and services remains high. LCI?s present and past investments in these activities ensure our current and future growth as well as the stability of the company. LCI will continue to invest and divest in order to maximise the future returns. Our plans related to Linux software as well as application hosting will make LCI one of the few European e-commerce knowledge enabled companies.
Therefore, barring unforeseen circumstances, the management of LCI expects that in the financial year 1999/2000 LCI will show a continued growth.
Financial year result 1999/2000 (1 May 1999- 30 April 2000)
LCI's financial year result 1999/2000 will be published in the week of 12 June 2000.
Profile LCI Technology Group N.V.
LCI is a holding group composed of 37 companies and divided into four activity groups: Software, Professional Services, New Technology and Research & Development. The knowledge and expertise of these groups have been pooled into five Expert Centers: Business System Applications, Multimedia and Video, Printer Connectivity, Security and Authentication and Wireless Communications. These centers offer LCI?s European customers total solutions, tailored to their special needs after combining the many components of business solutions into a single integrated system. LCI advises, designs, implements, manages and maintains this system. The company has subsidiaries in Austria, Belgium, Czech Republic, Denmark, France, Germany, Luxembourg, the Netherlands, Romania, Slovakia and the United States of America. As of July 1988, LCI is listed on the AEX Stock Exchange.
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For further information please contact:
Office mr. S. Asseer,
Chairman ? Chief Executive Officer
LCI Technology Group N.V.
Tel.: + 31 73 645 52 90
Fax: + 31 73 645 52 96
E-mail info@nl.lcigroup.com
Annex: Consolidated Profit & Loss account
Consolidated Balance Sheet per 31 October 1999
LCI TECHNOLOGY GROUP N.V.
CONSOLIDATED PROFIT & LOSS ACCOUNT
(Amounts in EUR million)
1 May ?
31 Oct. 1999
1 May ?
31 Oct. 1998
Net sales 130.1 91.9
Gross margin 40.3 26.7
Operating costs 33.1 21.6
Operating result 7.2 5.1
Financial charges - 1.0 - 1.2
Result before taxation 6.2 3.9
Taxation - 2.1 - 1.4
Result after taxation 4.1 2.5
Data per share of NLG 0.02 nominal value (amounts in EUR 1)
Net profit 0.35 0.23
Average number of
outstanding shares
11,670,070 10,685,589
CONSOLIDATED BALANCE SHEET
(Amounts in EUR million)
31 October
1999
30 April
1999
ASSETS
Fixed assets 16.5 16.1
Current assets 87.4 93.5
TOTAL 103.9 109.6
LIABILITIES
Guarantee equity 34.0 34.1
Liabilities 69.9 75.5
TOTAL 103.9 109.6
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