Highlights since Q4 reporting:
· Recession in key markets with reduced and postponed
defence spending in the communication segment still
impacting the level of activity.
· Continuing low activity levels during the quarter
for all Business Units.
· Financial results for Q1 are in line with
· A number of business opportunities outside
traditional markets are being explored utilizing
existing niche technology competence and
manufacturing capabilities. However, this is unlikely
to yield a significant short term financial impact.
The Group is still experiencing a weak revenue
development during Q1 of 2012. The financial crisis
in key markets has continued to have a negative
impact on defence spending within the communication
segment. As a consequence, this has negatively
influenced Comrod's order intake and activity levels
for the quarter.
In spite of the above, the Group is still
experiencing positive feedback from specific market
areas on new and existing products. However, the
timing for converting this positive feedback into
firm orders is still uncertain.
In view of the current situation, numerous actions
have been taken to strengthen the Business Unit's
product portfolio and position in the market.
The Group's overall financial performance during Q1
is considered weak.
Revenues for Q1 of 2012 were MNOK 55.5 compared with
MNOK 84.7 in 2011. Operating profit before
depreciation (EBITDA) for Q1 2012 was MNOK -0.3 (MNOK
The financial crisis affecting key Comrod markets is
still resulting in reduced public spending levels for
some of the Group's key products. This is likely to
continue to have a negative impact on the Group's
business activities during the year. The Board is not
satisfied with the Group's financial performance for
Q1 2012. However, the Board and Management have acted
on a number of initiatives aimed at identifying
alternative revenue streams for the Group utilising
its key niche technologies and flexible manufacturing
platforms. The majority of these initiatives are
within the civil technology segments, and if
successful are likely to decrease the current strong
dependence of its established defence products.
However, these initiatives, if successful, are likely
to demonstrate a slow and gradual impact on revenue.
The ongoing follow up of short and medium term
actions to ensure that the Group's business
activities are aligned to the current market
opportunities will still be a continued focus area.
As outlined above, the Board acknowledges the current
market instability and expects this to continue
during 2012. However, the Group has reason to believe
that the market conditions for its communication
products are likely to improve slightly compared to
current activity levels towards the end of 2012.
For further information please contact:
Ole Gunnar Fjelde CEO, of Comrod Communication Group,
mobile phone +47 959 34 541 or email@example.com
Kari Duestad, CFO, of Comrod Communication Group,
mobile phone +47 924 63 690 or firstname.lastname@example.org
About Comrod Communication Group:
Comrod Communication ASA is a Norwegian public
limited company headquartered at Tau outside
Stavanger in the south-western Norway. The company
develops and manufactures tactical masts, antennas
and antenna systems, power supply, battery chargers
and commercial products. Comrod Communication`s main
focus is on the defense market. The company has
around 220 employees and had operating revenues of
NOK 286 million in 2011 and NOK 332 million in
For more information, please visit www.comrod.com