Realignment of Ascom after setback with 2019 results
Disappointing results for 2019
Based on preliminary and unaudited results, Ascom generated for fiscal year 2019 net revenue of CHF 283 million, including a negative currency impact of about CHF 8.5 million. At constant currencies, net revenue declined by 8.5% compared to the prior year (2018: CHF 318.5 million).
Ascom suffered from a weak demand in the OEM business which declined by about 30% during 2019. The performance in North America was also unsatisfactory. On a positive note, UK and DACH region showed a good development.
Incoming orders came to about CHF 315 million (-1.4% at constant currencies) while the order backlog grew to CHF 177 million (+ 22% at constant currencies).
Profitability is lower than in the previous year due to the decline in revenue and one-off effects including restructuring costs of about CHF 6 million. Ascom targets to lower the annual cost base by CHF 10-15 million.
2019 EBITDA is expected to be close to break-even.
Ascom expects for 2019 a slightly positive Group profit, also due to one-off effects such as the sale of Technologiepark Teningen in the first half-year.
Ascom will publish further details and the full Annual Report 2019 as well as the next steps to return to profitable growth at its Annual Results Conference to take place on 5 March 2020.
New Group structure to be implemented as of 1 February 2020
The Board of Directors decided to implement a new Group structure for Ascom as of 1 February 2020. Target is to have a dedicated business focus and a lean and simple organization with strong customer proximity. A group-wide transformation project has been initiated.
The Managing Directors of the major countries will have the end-to-end responsibility for their business and report directly to Jeannine Pilloud, CEO.
A Clinical Solutions Team has been set up on Group level in order to address and to support complex clinical solutions in all relevant markets with the best-in-class experts of Ascom.
4 new Board members for Ascom Holding AG
The Board of Directors of Ascom Holding AG is proposing for election four new Board Members at the upcoming Annual General Meeting of 15 April 2020:
- Nicole Burth Tschudi, CEO Adecco Group Switzerland
- Laurent Dubois, former CEO GE Healthcare Partners
- Michael Reitermann, former Member of Managing Board Siemens Healthineers
- Dr Andreas Schönenberger, CEO of Sanitas Group
The proposed Board Members all are experienced leaders with a strong international background and a broad expertise in professional services, healthcare and management of transformation processes.
The current members Dr Harald Deutsch, Christina Stercken and Andreas Umbach will not stand for re-election at the upcoming Annual General Meeting. The Board of Directors thanks them for the valuable contribution to the Company. They will continue all duties as Board Members until the end of their term of office.
Following the election of the proposed new Board Members, the Board of Directors of Ascom Holding AG will consist of six members including Dr Valentin Chapero Rueda, Chairman of the Board, and Jürg Fedier, Chairman of the Audit Committee.
Conference Call for investors and media
In the context of this media release, a conference call for investors and media will take place as follows:
17 January 2020 at 08:00 am CET
Participants: Jeannine Pilloud, CEO; Dominik Maurer, CFO
Dial-in: + 41 58 262 07 22 / Code: 389340