Funkwerk AG / Interim report / Funkwerk gains in sales and creates 
new business segment
  
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Kölleda, 8 May 2008. In the first quarter of 2008,  Funkwerk AG (ISIN
DE0005753149) made efforts to push ahead with its strategic
repositioning to see a further gain in revenues. Sales as at the end
of March rose by 8.3 per cent on the previous year to 61.6 mill. Euro
(2007: 56.9 mill. Euro). Despite the additional burdens from the
ongoing restructuring of its Enterprise Communication segment and the
setup of new strategic growth fields, Funkwerk again managed to break
even at 0.1 mill. Euro, similar to the result (EBIT) in the previous
year (0.2 mill. Euro). Taking into account the negative financial
result and the tax expenditure, this led to a quarterly loss of 0.2
mill. Euro (2007: + 0.2 mill. Euro) and thus to earnings per share of
-0.03 Euro (2007: +0.03 Euro).
 
The first quarter of Funkwerk is traditionally rather poor in terms
of sales and earnings, since a large part of the current business is
done with major companies and government institutions and many
projects on the customer side are not decided until further on in the
year. In the following quarters, the Executive Board anticipates a
significant rise in earnings contributions as sales in each sector
are expected to increase while the burden from the strategic
reorientation will decrease towards the end of the year.
 
In the first quarter of 2008, growth in the company was driven by the
Traffic & Control Communication segment. At 33.4 mill. Euro, the
revenues here ranged 42 per cent above the prior-year figure (23.6
mill. Euro). Sales in Automotive Communication totalled 13.7 mill.
Euro and fell slightly short of the previous year (14.4 mill. Euro).
Here, the continued poor trend of the after-sales market eclipsed the
positive tendency in other market segments. Enterprise Communication
(FEC) is currently in the process of a radical change. At 14.5 mill.
Euro, the segment revenues here remained more than 20 per cent below
the prior-year figure (18.8 mill. Euro). FEC will in future focus
exclusively on network solutions and cooperate with partners in the
development and marketing of products. At the same time, the product
range and organisation of this segment will be streamlined.
 
Part of the strategic reorientation includes the hiving-off of the
messaging product group with its personal security solutions and its
combination with the video systems product group from the TCC segment
into the new, strategically independent segment Security
Communication, in order to take a leading position in the growth
market for integrated security technology in the future.
 
 
For further information contact:
 
Funkwerk AG
Im Funkwerk 5
99625 Kölleda/Thuringia
Germany
Jörg Reichenbach
Investor Relations
Telephone: 0 36 35/6 00 -3 46
Fax: 0 36 35/6 00 -507
reichenbach@funkwerk.com


 
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Funkwerk AG
Im Funkwerk 5 Kölleda Germany

WKN: 575314; ISIN: 
DE0005753149; Index: HDAX, MIDCAP, CDAX, Prime All Share, TECH All 
Share;
Listed: Geregelter Markt in Frankfurter Wertpapierbörse, Prime 
Standard in Frankfurter Wertpapierbörse, 
Freiverkehr in Börse Berlin, Freiverkehr in Bayerische Börse München, 

Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart, 

Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr 
in Niedersächsische Börse zu Hannover;
http://hugin.info/132370/R/1217346/254693.pdf


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