Digital Identification Solutions AG: Good quarterly figures

Digital Identification Solutions AG  / Key word(s): Quarter Results

04.05.2011 14:05

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DISO AG reports strong growth and a positive operating result in Q1 2011

Stuttgart/Germany, May 4, 2011 - Digital Identification Solutions AG
(DISO), a leading international ID solutions provider, reports strong
growth in the first quarter of the fiscal year 2011. For the first time in
the Company's history, it achieved a positive operating result (EBIT) in
the first quarter of a year. This development was supported by the
successful realignment initiated in November 2010.

  - Demand continues to recover

  - Sales increased considerably by 19 % compared to the prior year

  - Strong momentum in almost all product areas

  - Realignment successfully completed

  - Positive operating result (EBIT) - for the first time ever in the first
    quarter of a year

The first quarter 2011 at a glance
EUR mn                  March 31, 2010       March 31, 2011        Change
Sales                              4.7                  5.6       +   19%
Gross profit*                      2.6                  2.9       +   12%
EBITDA                           - 0.1                  0.4       >  100%
EBIT                             - 0.4                  0.1       >  100%
Order backlog                      3.4                  2.0       -   42%

* Incl. other income

Business development
In the first quarter of 2011, DISO AG's sales amounted to EUR 5.6 million,
representing a significant increase from the corresponding prior-year
quarter (EUR 4.7 million). Accordingly, the positive development, which has
seen increasing sales since late 2009, has continued in 2011. The growth
rate compared to the prior-year quarter amounts to 19%. This is a
remarkable achievement since no significant projects were delivered in the
first quarter.

It is encouraging that this increase is reflected both in terms of regions
and products in almost all areas.

EUR mn                                    2010       2011         Change
Hardware                                   1.1        1.7            55%
Consumables                                2.7        3.0            11%
Software & Services                        0.9        0.9             0%
Total                                      4.1        5.7            19%


The regional breakdown of the good business development showed growth by
more than 50% in North and South America, while the growth rate in the EMEA
region finally rebounded again to above 5%.

The gross profit margin remains on a good level at above 50% and mainly
results from increasing sales in the Consumables segments.

In terms of costs, all proposed savings were realized as planned. This led
to a reduction of staff costs in the context of the strategic realignment
by more than 10%. As of April 1, the Company employed less than 100
employees. Costs were also reduced successfully in the Legal and Consulting
areas.

As a result of the sales increase, the good gross profit margin and the
reduced cost base, the operating result (EBIT) improved by EUR 0.5 million
to EUR 0.1 million compared to the prior-year quarter.

Outlook
The worldwide improvement of the macroeconomic situation has continued in
recent months. The Management Board anticipates sales growth to continue at
a rate of approximately 10% in the remainder of the fiscal year 2011. In
terms of bottom-line results, the Management Board expects that the
operating result (EBIT) will amount to between EUR 1.2 million and EUR 1.5
million. EBITDA is expected to increase to EUR 2.5 million.

'We have had a very successful start into the new fiscal year and continue
to focus primarily on our organic growth as well as on improving our
earning power and cash flows,' says Frank Posnanski, member of the
Management Board of DISO AG. 'It is particularly notable that, for the
first time in company history, we managed to achieve a positive operating
result already in the first quarter of a year,' Posnanski added.

Note
In contrast to usual practice, we present the figures for the first quarter
of 2011 before publishing the audited financial statements for 2010. Please
note that we will publish the final figures for the fiscal year 2010 in the
second half of May.

The Management Board


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Information and Explaination of the Issuer to this News:

About Digital Identification Solutions
The Digital Identification Solutions Group is a global provider of advanced
identification solutions with a worldwide install base of more than 11,000
systems. In October 2009, the Group introduced to the world market the
latest EDIsecure(R) XID Retransfer Printer generations for distinct
Business Line segments, as well as a much enhanced Professional Line
Portfolio in combination with new Inline Lamination Modules. The
Professional Line Portfolio will support multiple new modules in the
forthcoming future, as well as the revolutionary LCP 9000 Laser Color
Personalization System. The company has its own sales, marketing, logistic
and support centers in Germany, the United Arab Emirates, Singapore, China,
the United States and Mexico. Together with its vast network of certified
partners, Digital Identification Solutions is in a position to deliver
state-of-the-art solutions virtually anywhere in the world. The company
combines cutting-edge technology, extensive industry know-how and an
impressive array of references in the private and public sector.

For further information please visit www.digital-identification.com



Contact:

Frank Posnanski
CFO
Digital Identification Solutions AG
Teckstrasse 52
D-73734 Esslingen

Phone: +49 (711) 341 689-0
Fax:   +49 (711) 341 689-550
mail_ir@digital-identification.com




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Language:     English
Company:      Digital Identification Solutions AG
              Teckstraße 52
              73734 Esslingen
              Deutschland
Phone:        +49 (0)711 341 689 280
Fax:          +49 (0)711 341 689 550
E-mail:       spoessl@digital-identification.com
Internet:     www.digital-identification.com
ISIN:         DE000A0JELZ5
WKN:          A0JELZ
Listed:       Freiverkehr in Berlin, Düsseldorf, München, Stuttgart; Entry
              Standard in Frankfurt
 
End of Announcement                             DGAP News-Service
 
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