Strategic platform with Mobile Division and strong market reception of the
wireless GN 9120 headset result in increased revenue and profit in Q4
COPENHAGEN, Denmark, March 8 /PRNewswire/ -- GN Store Nord has announced
its revenue and profit for the fourth quarter 2003. Revenue reached DKK
(Denmark Kroner) 1,311 million, while Earnings Before Interest, Taxation and
Amortization (EBITA) and profit before tax were DKK 189 million and DKK 108
million, respectively, for the quarter.
Quarter on quarter, Q4 revenue and EBITA was up over 14% and 66% from Q3
2003, and up over 9% from Q4 2002, excluding Net Test. Profit grew more than
9% from Q3 2003, from DKK 0 million, excluding NetTest in Q4 2002 (unless
indicated otherwise, the 2002 figures below all exclude NetTest).
Q4 cash flows from operating activities were DKK 477 million against DKK 140
million in Q3 and DKK 310 million in Q4 2002. The free cash flow, adjusted
for incurred restructuring costs and other non-recurring items, rose to DKK
101 million from DKK 89 million in Q3 2003 and DKK 293 million in Q4 2002.
The fiscal year 2003 totals were DKK 4,742 million against DKK 4,682
million in 2002. EBITA was DKK 556 million, in line with the announcements
made on January 2 and most recently, November 5, 2003, representing a
satisfactory improvement of almost 50 percent relative to 2002. Profit before
tax exceeded projections made on November 5, 2003, at DKK 270 million, an
improvement of DKK 247 million relative to 2002 when adjusted for NetTest.
Including NetTest, the loss in 2002 was DKK 5,289 million.
Cash flows from operating activities were DKK 827 million, an increase of 48%
over 2002. The free cash flow, adjusted for incurred restructuring costs and
other non-recurring items, was DKK 308 million, down DKK 7 million relative to
2002.
GN's strong earnings reflect years' worth of restructuring business units.
The new GN emerged on January 3, 2003, firmly focused on headsets, hearing
instruments and audiologic diagnostics equipment. Today, GN is a single
business organization with four business areas are all among the leaders in
their markets. While all are rooted in GN's acoustics and audiology know-how,
each business area is driven by a dynamic force of its own.
GN's planned strong increase in earnings materialized in 2003, and GN
strengthened its strategic platform with the Mobile Division building a
presence in Europe and signing new OEM agreements, the heavy demand for the
unique ReSoundAIR device, and the strong market reception enjoyed by the
wireless GN 9120 headset for offices. The new production plant in China
contributes to the improved profitability of most GN products. Most of GN's
hearing instruments and more and more of its headsets are manufactured there.
The extensive restructuring of GN's entire production plant is now almost
complete. GN intends to use enhanced processes and work procedures as well as
the organization's refocused customer approach to create the expected and
necessary advances in profits and maintenance of growth.
GN projects that 2004 revenue will be largely unchanged relative to 2003
and adversely affected by the weaker U.S. dollar. GN expects EBITA to improve
by at least 20%, assuming a Danish kroner-U.S. dollar exchange rate of 6.
Profit before tax is expected to improve by just over 40% in 2004.
About GN Store Nord
GN Store Nord has helped people connect since 1869. Initially, as a
telegraph company and now as a global market leader in personal communications
providing increased mobility and quality of life for our customers. GN
develops and manufactures headsets for hands-free communication, hearing
instruments and audiologic diagnostics equipment. GN products are marketed
globally. For more information, please visit http://www.gn.com.
About GN Netcom Group
GN Netcom is a world leader in hands-free communication technologies. The
company develops, manufactures and markets a broad portfolio of corded as well
as wireless headsets and related products through its two market focused
divisions: Contact Center & Office Division and Mobile Division. The Contact
Center & Office Division, under the GN Netcom brand, provides solutions
covering the hands-free communication needs of professionals working in
contact centers and offices. The Mobile Division provides innovative hands-
free solutions under the JABRA brand for users of mobile devices. Founded in
1987, GN Netcom is part of GN Store Nord, an international group of companies
focusing on intelligent technology solutions for personal Communication. GN
Store Nord is traded on the Copenhagen Stock Exchange (Reuters: GN.CO;
Bloomberg: GGNDF). For further company information please visit
http://www.gnnetcom.com. For information about products please visit
http://www.gnnetcom.com/usa or call 1-800-826-4656
CONTACT:
Ethan Rasiel
Edelman
212-704-4521
ethan.rasiel@edelman.com
SOURCE GN Netcom
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Related links:
http://www.gn.com
Company News On-Call:
http://www.prnewswire.com/comp/128300.html
CONTACT:
Ethan Rasiel of Edelman, +1-212-704-4521,
ethan.rasiel@edelman.com
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