SMARTRAC Reports 1Q 2013 Results

SMARTRAC N.V. announced financial figures for the first quarter of 2013.

The positive market development experienced in 2012 continued in the first quarter of 2013 and led to a favorable growth in revenues from January to March 2013. The increase in production and sales volumes was, however, accompanied by a further shift in the product mix and a related strong increase in inventories and stock to satisfy short-term demand in emerging RFID application fields.

Total sales increased by 28% from €50.7 million in Q1-2012 to €64.7 million in Q1-2013. EBITDA increased from €2.7 million in the first three months 2012 to €5.4 million in the first three months 2013. Despite the positive development in revenues, SMARTRAC generated loss of €0.3 million in the first quarter of 2013 as compared with profit for the period of €1 million in the first quarter 2012, mainly resulting from a lower other operating income in the first three months of 2013 as compared to the previous year as well as higher administrative expenses.

Revenues in SMARTRAC´s Security Segment (Business Units eID and CTA) amounted to €38.1 million in the first three months of 2013, which is equivalent to an increase of 23% compared to sales of €30.9 million in the same period of the previous year. In Q1-2013 the Security Segment accounted for 59% of total Group revenues compared to 61% a year ago.

Revenues in the Industry Segment (Business Units ePI, Industry & Logistics, Dalton ID and Neology) increased by 35% in the first three months of 2013 to €26.4 million compared to €19.5 million in the first quarter 2012. The Q1-2013 sales of the Industry Segment represented a 41% share of the overall sales of the company compared to 38% a year ago.

“On the short-term, we will continue to evaluate and implement measures targeted at streamlining activities, reducing complexity, and increasing efficiency,” said Christian Uhl, co-chairman of the Management Board and CFO. “At the same time, we will continue to invest into technology and the development of superior products to expand our leadership position in the RFID market, drive the innovative character and competitive advantage of our company and to support our overall target of being the RFID technology partner of choice for customers worldwide.”

As there is evidence that the positive overall trend in the RFID industry will continue over the course of the year, SMARTRAC confirms its target to increase group sales and to achieve full year revenues, which come close to the €300 million mark in 2013.