Simrad Optronics ASA, the Norwegian defence products company, continued its high revenue growth in the second quarter. Also the Company's profitability improved compared to the second quarter last year.
Simrad Optronics revenue grew by 17 per cent compared to last year's second quarter and came in at NOK 125.0 million. The Company reports an EBITDA of NOK 21.5 million for the second quarter, up 25 per cent. Profit before taxes was NOK 6.6 million (2006: NOK 1.5 million).
For the first half of 2007 Simrad Optronics' revenue amounted to NOK 265.3 million, a 50% increase over the first half last year. EBITDA was up 65% to NOK 45.0 million. Simrad Optronics' EBITDA margin increased from 15.4% in the first half of last year to 17.0% in the first six months of 2007. For the first half of the year profit before taxes was NOK 15.9 million (2006: NOK -3.7 million).
"All product areas have experienced a positive development in the second quarter. We are particularly pleased to see the business from 'old' Simrad Optronics before the merger with Vinghøg regaining momentum, with more than 30% growth in invoiced sales," said Simrad Optronics CEO, Jon Asbjørn Bø.
Simrad Optronics saw a steady order flow in the second quarter, which ended with an order backlog of NOK 358 million.
Also in the second quarter, Simrad Optronics restructured parts of its organisation following the merger with Vinghøg in January. The UK based sales organization was discontinued and all international sales resources are now consolidated in Norway.
The Company's financial position has been considerably strengthened in the second quarter, following a successful private placement in May and a substantial cash flow from operations. Simrad Optronics therefore benefits from a sound financial basis for further expansion.
The Company's new US manufacturing plant will come into production in October as planned.
"The outlook is positive in all of Simrad Optronics' key markets. Going forward, we see that the US market will be increasingly important," said CEO Jon Asbjørn Bø.
NOTE: All 2006 figures are pro forma; including Vinghøg, which was acquired in January 2007 and excluding the former Fire & Gas Division, which was divested in January 2007.
For further information, please call Jon Asbjørn Bø, CEO, telephone +47 9308 6932.
Simrad Optronics ASA (Oslo Stock Exchange: SIT) is a leading provider of defence products based on electro optics and advanced mechanics. The company co-operates closely with the research units of the Norwegian Armed Forces and with users of military equipment. A number of the company's products are world leaders in their respective fields. The company is internationally oriented with sales to more than 40 countries.