Digital Identification Solutions AG: Staff Level Adjustment Signals Start of Strategic Realignment

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

25.11.2010 12:08

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Continued Sales Growth in Q3

Esslingen, Germany, November 25, 2010 - Digital Identification Solutions
AG, a leading international supplier of identification solutions, has moved
quickly to implement the strategic realignment approved in October 2010: As
a first step, the internal administration is being streamlined, resulting
in a staff reduction. The changes are confined exclusively to the Esslingen
site, which will in future have 38 employees (as opposed to the present
number of 48).

This staff level adjustment is subject to a 'social plan' and was agreed
upon in close consultation with the works council. It paves the way for
more integration between the various business divisions - not least through
stronger links between software and hardware development - and will thus
yield a lasting increase in competitiveness.

In the meantime, the company's business development has benefited from a
sustained positive trend, resulting in rising sales and a break-even result
in the third quarter of 2010. The order backlog continues to be at an
encouragingly high level.
                        Q3 / 09        Q3 / 10        Change
Sales                    3.9            5.8            48.7%
Gross profit             2.5            3.4            36.0%
EBITDA                  -0.4            0.1            n.a.
EBIT                    -0.6            0.0            n.a.
Order backlog            2.6            4.7            80.7%

Year-to-date performance is stronger than for the same period in the
previous year. Sales growth has resulted in higher EBITDA and EBIT.
However, the company's profitability still has room for improvement.
                        2009          2010           Change
Sales                   13.2          18.0            35.5%
Gross profit             7.3           8.7            19.2%
Gross margin in         55.3%         48.3%          -12.7%
EBITDA                  -0.1           0.5           > 100%
EBIT                    -0.6          -0.2           > 100%
Earnings before taxes   -0.7          -0.3           > 100%
Order backlog            2.6           4.7           > 100%

'The decision to streamline our internal administration was a difficult one
to take,' says Frank Posnanski, a member of the Management Board of Digital
Identification Solutions AG. 'However, in view of the long-term
perspectives of both the Esslingen site and the employees, there was no
alternative. It is very encouraging that the works council shares this view
and fully supports the measures. We will continue to pursue our jointly
agreed strategy in the coming months. Our main goal for the future is
profitable growth', adds Posnanski.

Outlook:

For 2010 DISO AG expects sales to be in the order of EUR 25.0 million, with
earnings ranging between approx. EUR 0.3 and 0.5 million before costs for
the abovementioned measures.

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 München, Berlin, Düsseldorf, Stuttgart; Entry
              Standard in Frankfurt
 
End of Announcement                             DGAP News-Service
 
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