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init innovation in traffic systems AG

euro adhoc: init innovation in traffic systems AG
quarterly or semiannual financial statement
init tops projections in first quarter - Orders on hand at record level of 58.8 mill. Euro

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.
11.05.2006
In the first quarter of 2006, init innovation in traffic systems AG
managed to exceed its projections and is well on its way to realizing
the growth targets set for the whole year. Sales totaled 6.2 mill.
Euro and thus proved notably higher than the multi-year average. At
0.3 mill. Euro, the quarterly net profit matched the prior-year
record level, while the earnings per share stood at 0.03 Euro again.
This is all the more remarkable since the business trend in the first
quarter of 2006 was notably defined by engineering services for
ongoing projects, with a relatively marginal share of hardware. This
also explains the fact that sales were lower than in the record
quarter of 2005 (7.7 mill. Euro), in which init had provided a
substantial amount of hardware for international large-scale
projects.
Despite the fact that the sales volume was lower than the previous
year, init was able on the earnings side to improve its gross profit
on sales by 41.6 per cent to 2.4 mill. Euro (2005: 1.7 mill. Euro).
Thus, by the end of March, the gross margin had reached 38.6 per cent
(2005: 21.8 per cent). The earnings before interest and taxes (EBIT)
of 0.4 mill. Euro in the first quarter (2005: 0.6 mill. Euro) also
proved better than projected. On the whole, init recorded a net
inflow of funds in the first quarter of 2006 to the amount of around
1.3 mill. Euro, which matched the prior-year record quarter.
Consequently, the liquid funds (incl. securities) at group level
reached a new high of 12.2 mill. Euro (2005: 4.8 mill. Euro).
Traditionally, sales at init distribute unevenly throughout the
fiscal year, with each of the first two quarters usually realizing a
mere 10 - 15 per cent of annual sales. Based on the progress made in
regard to the large-scale pro-jects in The Hague, Copenhagen, New
York City and Vancouver, init anticipates a significant rise in
earnings as early as from the second quarter. For the whole of 2006,
init anticipates both sales and EBIT to improve by over 10 per cent
on the previous record in 2005.
The high growth potential for init even for 2007 is evident in the
orders position. As of the end of March, the level of orders totaled
58.8 mill. Euro. This is the highest figure ever to be reported in
company history, topping even the prior-year level of 23.2 mill. Euro
by two and a half times. On the whole, the volume of new orders
booked amounted to 9.4 mill. Euro, corresponding to an increase of 22
per cent over the already extraordinary prior-year level (7.7 mill.
Euro). init anticipates further significant orders to materialize in
the next few months.
end of announcement                               euro adhoc 11.05.2006 06:44:49

Further inquiry note:

Alexandra Weiß
Investor Relations
Telefon: +49(0)721 6100-102
E-Mail: aweiss@initag.de

Branche: Semiconductors & active components
ISIN: DE0005759807
WKN: 575980
Index: CDAX, Prime All Share, Technologie All Share
Börsen: Frankfurter Wertpapierbörse / regulated dealing
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Niedersächsische Börse zu Hannover / free trade
Bayerische Börse / free trade

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