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Geneart AG (OJ:G6A) - Net sales increase by more than 30 % to EUR 11.7M after nine months - Operating result of EUR 1.4M reached the previous year's level - Continued strong growth of small and mid-sized orders - Preliminary results are being confirmed
Regensburg, November 13, 2008 - GENEART AG, global leader in gene synthesis and specialist in the field of Synthetic Biology, increased its net sales by more than 30 % from EUR 9.0M to EUR 11.7M over the first nine months compared to the previous year's reference period. The operating result (EBIT) reached EUR 1.4M and hence, the level of the prior year. Thereby GENEART confirms its preliminary results published recently.
Due to strong growth, in particular with respect to small and mid-sized orders, GENEART managed to further expand its market position over the past months. The completion of the major National Institutes of Health (NIH) project, which is one of its kind in size in this industry thus far, was thereby fully compensated for. At the same time, GENEART's order situation is affected by clients' caution in placing large orders, possibly also influenced by the current crises in the financial markets. As a result order volumes exceeding USD 1.0M are placed only partially or deferred to a future date. Under these conditions GENEART generated net sales of EUR 3.9M during the third quarter and an operating result (EBIT) of EUR 0.5M. Net sales and operating result (EBIT) reached EUR 3.5M and EUR 0.7M respectively during the previous year's reference period, which was largely influenced by the major NIH contract. Due to the current significantly broadened order structure GENEART is less dependent on single large contracts and thus managed to significantly improve the company's sales diversification and risk structure.
Based on the positive development of small and mid-sized orders, the company expects the result for the fourth quarter to meet at least the numbers of the prior quarter. Thus, for the entire year of 2008 net sales between EUR 15.5M and EUR 16.5M, and an operating result (EBIT) of approximately EUR 1.8M are expected.
"GENEART's positive development may easily be seen from the cash flow. With EUR 1.7M we could generate the highest operative cash flow in the company's history. This puts us in the position to continue our rate of investments as planned. With investments of EUR 3.8M so far, we confirm our market position and rapidly extend our market and cost leadership", comments Christian Ehl, CEO of GENEART AG.
GENEART creates the prerequisites for tomorrow's growth by setting up specific collaborations and by expanding the worldwide presence. "The newly founded GENEART Inc. is located in the San Francisco Bay area, in the heart of one of the world's largest biotech clusters. This also allows us to now optimally service clients on the West coast of the USA, and to further systematically expand our market share there", explains Prof. Dr. Ralf Wagner, CEO of GENEART AG. Another third quarter highlight is the expansion of the collaboration with QIAGEN, which now also allows quick and easy ordering of optimized standard genes for the use in mammal and insect cells via QIAGEN's GeneGlobe Internet portal. "Through our partner we now distribute a catalogue product for the most important cell systems in order to cover all market segments according to customer expectations. At the same time we perfectly complement our core business producing customized gene sequences", Prof. Dr. Ralf Wagner adds.
The GENEART group through 9 months 2008:
In million Euro First nine months First nine months 2008 2007 Net sales 11.7 9.0 Gross profit 12.3 11.7 Pre-tax profit 1.6 1.9 Operating profit (EBIT) 1.4 1.5 EBIT margin (based on gross 11,4 % 12,5 % profit)
Frank Ostermair Better Orange IR & HV AG Haidelweg 48 81241 Munich Germany Phone: +49-(0)89-8896906-10 Fax: +49-(0)89-8896906-66 info@better-orange.de www.better-orange.de
Legal Information This document may contain estimates, prognoses and opinions about company plans and objectives, products or services, future results, opinions about these results or opinions leading up to these results. All these projections into the future are subject to risk, uncertainty and unforeseeable change outside the control of the GENEART Group. Many factors may lead to actual results, which considerably deviate from the given projections for these results.
About GENEART AG: In 2000, GENEART entered the gene synthesis market and has since become the global market leader. Today, the company is one of the leading specialists in the Synthetic Biology field. Experts at GENEART provide key technologies for the development and production of new therapeutics and vaccines. Customers also take advantage of GENEART services to customize enzyme attributes, such as the attributes of enzymes used as detergent additives, and to construct bacteria, which produce complex biopolymers or break down polymers, such as synthetics, petroleum components, etc. Our production and service spectrum spans a wide range, from the production of synthetic genes according to DIN EN ISO 9001-2000, to the creation of gene libraries in the combinatorial biology, to the development and production of DNA-based biologically active substances. The GENEART AG in Regensburg (Germany) and the subsidiaries GENEART Inc. in Toronto (Canada) and GENEART Inc. in San Francisco (USA) employ more than 190 people. Since May 2006, GENEART is listed on the German Stock Exchange.
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