Ascom expects significantly higher net profit for 2013 compared to the previous year

Oct 30, 2013

Ascom anticipates recording its best ever operating margin in 2013. Group profit will also be significantly higher on a year-on-year comparison.

At the annual Analyst & Investor Day on 30 October 2013, Fritz Mumenthaler, CEO of Ascom, makes the following statements to the outlook for 2013 and the medium-term targets:

Sharp rise in net profit for 2013
From a today's point of view, Ascom is expecting the Group profit for 2013 to be considerably higher than in the previous year (2012: CHF 20.9 million). The Group profit of CHF 14.5 million achieved in the first half of 2013 (H1/2012: CHF 5.2 million) provides a solid foundation for meeting these expectations.

Outlook for 2013
In January 2011, Ascom announced an EBITDA margin target of 14-15% for the year 2013. In March 2013, Ascom further increased the EBITDA margin target to a new ambitious level of 15-16%.

As Ascom traditionally experiences a strong finish at year-end, the next two months will be important for the overall results. Macroeconomic uncertainties in the United States (budget shutdown, the weakness of the dollar) and the delayed recovery in various countries of Western Europe may, however, affect the annual results. In addition, regulatory issues continue to await resolution in parts of the region Asia Pacific.

As things stand at present, Ascom therefore expects to achieve its original EBITDA margin target of 14-15% for 2013, while posting a 2.5-5% growth in revenue at Group level. With this result, Ascom would post the best ever operating margin achieved in its history.

Medium-term target confirmed
Ascom confirms its previously communicated medium-term target of an EBITDA margin of 17-18% in 2015, while targeting an average growth of 5-10% in 2014 and 2015. The good strategic positioning of the divisions as well as small value enhancing acquisitions will support the target achievement.

Wireless Solutions: Leader in workflow optimization in the healthcare segment
Ascom underscores the claim of its Wireless Solutions division to being the frontrunner in workflow optimization in the healthcare segment. Ascom is the only supplier to offer an integrated software solution, which connects for instance the nurse call with wireless communication ("power of one"). According to Claes Ödman, General Manager Wireless Solutions, Ascom will continue to expand its range of customer-specific solutions, for example, for emergency admission wards, laboratories and radiology. Moreover, Ascom will launch next year a new smart phone, purpose built to meet the needs of nursing staff, and which can be connected via different radio and mobile telephony standards.

Claes Ödman highlights that the Wireless Solutions division is well positioned to achieve its defined growth targets. Beside the abovementioned unique selling points, the division sees cross selling opportunities in the nurse call segment and further growth potential in different geographies. Already this year, strategically important orders in Germany and the United Kingdom as well as in South America were secured in the healthcare segment. Furthermore, the division has established a bridgehead into the Asian market.

Network Testing: Market leader with high innovation power
The product portfolio of the Network Testing division provides considerable support to mobile network operators in tackling the numerous challenges that they face. Ascom is the only company, which has a comprehensive offering of products and solutions in the segments Testing & Measurement, Monitoring, Benchmarking, and Reporting & Analysis, which accompany the investment cycles of the mobile network operators.

In addition, only Ascom offers a software solution for testing mobile network performance levels from the perspective of iPhone users, which is vital to ensuring the measurement of customer satisfaction. Thanks to a solution from Ascom in the area of Reporting & Analysis, mobile network operators also receive early warnings about potential service deterioration or even network failures, ensuring that the relevant countermeasures can be taken. At the Analyst & Investor Day, Rikard Lundqvist, General Manager Network Testing, explains that Ascom Network Testing is a reliable partner of mobile network operators and supports them in optimizing existing and in planning future investments.

Rikard Lundqvist is confident that the Network Testing division will continue its upturn and is well positioned for further growth in the years to come and also will be able to further increase profitability.

This document does not constitute an offer or solicitation to subscribe for, purchase or sell any securities. This document is not being issued in the United States of America or the United Kingdom and should not be distributed in any jurisdiction in a manner where such distribution would not comply with regulatory requirements. In particular, this document may not be distributed into the United States, to United States persons or to publications with a general circulation in the United States. In addition, the securities of Ascom have not been and will not be registered in any jurisdiction outside Switzerland. The securities of Ascom may not be offered, sold or delivered and no solicitation to purchase such securities may be made within the United States or to U.S. persons absent an applicable exemption from the registration requirements of the United States securities laws or within any other jurisdiction and in a manner where such offer, sale, delivery or solicitation might not be in compliance with regulatory requirements (including the United Kingdom).

This document does not constitute an offer or solicitation to subscribe for, purchase or sell any securities. This document is not being issued in the United States of America or the United Kingdom and should not be distributed in any jurisdiction in a manner where such distribution would not comply with regulatory requirements. In particular, this document may not be distributed into the United States, to United States persons or to publications with a general circulation in the United States. In addition, the securities of Ascom have not been and will not be registered in any jurisdiction outside Switzerland. The securities of Ascom may not be offered, sold or delivered and no solicitation to purchase such securities may be made within the United States or to U.S. persons absent an applicable exemption from the registration requirements of the United States securities laws or within any other jurisdiction and in a manner where such offer, sale, delivery or solicitation might not be in compliance with regulatory requirements (including the United Kingdom).