Allgon: Year-End Report January - December 2000.Business Editors STOCKHOLM, Sweden--(BUSINESS WIRE)--Jan. 18, 2001 Income for the Allgon Group is in line with the information published on December 15, 2000. - Allgon will continue as an independent company as REMEC's offer will not be completed. - Net sales rose by 26 percent to SEK 2,696 million (2,136). - Operating income fell by 54 percent to SEK 57 million (124). Income after financial expenses fell by 79 percent to SEK 27 million (127). Operating income includes items affecting comparability of SEK +30 million net (-). - For Allgon Systems, net sales amounted to SEK 1,703 million (1,136), an increase of 50 percent. Operating income for the full-year was SEK 198 million (103), an increase of 92 percent. - Allgon Mobile Communications started serial deliveries of built-in antennas during the fourth quarter. - Wireless Solutions started deliveries of commercial Bluetooth products in December 2000. Market Expansion of the infrastructure of the mobile telephone networks in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. was very rapid during the year. A slow-down was noted in the fourth quarter, partly due to AT&T's announced postponement of its network expansion from the fourth quarter in 2000 to the first quarter in 2001. AT&T also announced that any further expansion of its network will be based on GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. 1900 MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc. standards, as opposed to the TDMA (Time Division Multiple Access) A satellite and cellular phone technology that interleaves multiple digital signals onto a single high-speed channel. For cellular, TDMA triples the capacity of the original analog method (FDMA). systems. Several other TDMA operators are expected to follow AT&T's direction. In South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , investments in infrastructure have been stable. Subscriber growth remains high in Europe. License allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as for 3G has attracted much attention. Continued recovery is taking place in Asia with, above all, strong subscriber development in China. China has approximately 76 million subscribers and is the second largest market after the USA which has approximately 110 million subscribers. Fourth Quarter 2000 Allgon's net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in the fourth quarter of 2000 rose by 13 percent to SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 710 million (628). Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. fell to SEK -14 million (32). Operating income includes an item affecting comparability which relates to costs attributable to the offer situation of SEK-28 million. The increased selling expenses reflect an increasingly presence with South and North America and Asia. Allgon Microwave and Wireless Solutions, which have high development costs, affected operating income by SEK -38 million (-12). Income after financial items amounted to SEK -21 million (37), of which income was charged with SEK 28 million. Group net sales and orders received during 2000 During the year, net sales increased by 26 percent to SEK 2,696 million (2,136). Orders received rose by 7 percent to SEK 2,434 million (2,266). Allgon Systems Net sales increased by 50 percent to SEK 1,703million (1,136). The increase was especially high in North and South America as well as in Asia. Sales of antenna systems developed very positively with significant increases in Asia, Europe and North America. In North America there was a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. during the fourth quarter. In total, sales nearly doubled during the year. Sales of radio equipment also increased strongly, especially to customers in North America. Sales of repeater (1) A communications device that amplifies (analog) or regenerates (digital) the data signal in order to extend the transmission distance. Available for both electronic and optical signals, repeaters are used extensively in long distance transmission. networks rose marginally. Operating income rose to SEK 198 million (103), an increase of 92 percent. Income during the fourth quarter was slightly below the latest forecast due to lower sales during December. The new production plant in Wuxi, China, was put into operation during the second quarter and operations developed positively during the year. Allgon Mobile Communications Net sales fell by 12 percent to SEK 870 million (990). If the sale of the vehicle antenna operation is taken into account, the fall was four percent. During the year, Allgon's distribution between retractable re·tract v. re·tract·ed, re·tract·ing, re·tracts v.tr. 1. To take back; disavow: refused to retract the statement. 2. , fixed and built-in antennas was 31/64/5 (38/61/1) percent. During the fourth quarter, the product mix was 21/65/14 percent as serial deliveries of built-in antennas started. In total, 95 (96) million antennas were delivered during 2000 which represents a market share of approximately 24 percent (37). Cost saving programs have been implemented and expenses will be reduced by SEK 50 million on an annual basis compared with the level during the first half of 2000. Sales of antennas for satellite telephones amounted to SEK 45 million (19). Operating income fell by 64 percent to SEK 45 million (124). Income for the fourth quarter was higher than announced in the latest forecast. Allgon Microwave Net sales amounted to SEK 112 million (10). Marketing activities directed at Asia and South America were initiated during the year. The unique functionality, to enable handling of Ethernet Ethernet Telecommunications networking protocol introduced by Xerox Corp. in 1979. It was developed as an inexpensive way of sending information quickly between office machines connected together in a single room or building, but it rapidly became a standard computer protocol in the microwave, generated a strong response in the market. Higher purchasing costs of components, partly due to the higher USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. rate, and the additional development costs aimed at reducing production costs affected income. Operating income amounted to SEK -45 million (-50) which is in line with the latest forecast. Wireless Solutions Net sales amounted to SEK 11 million (-). During the year, product development continued with a focus on Bluetooth and WLAN See wireless LAN. WLAN - wireless local area network products. A number of product launches were made and, during December, serial deliveries of Bluetooth products started. Several projects were overdue OVERDUE. A bill, note, bond or other contract, for the payment of money at a particular day, when not paid upon the day, is overdue. 2. The indorsement of a note or bill overdue, is equivalent to drawing a new bill payable at sight. 2 Conn. 419; 18 Pick. as a result of, among other things, delayed component development which led to cancellation of some orders for WLAN products. Operating income amounted to SEK -76 million (-) which is on a par with the latest forecast. Consolidated Results Operating income fell by 54 percent to SEK 57 million (124). The losses in Allgon Microwave and Wireless solutions, which area mainly attributable to high development costs, were charged to consolidated income with SEK 121 million (50). The result includes items affecting comparability of SEK 30 million (-) which consist of surplus funds Surplus funds Cash flow available after payment of taxes in a project. from SPP (1) (Scalable Parallel Processor) A multiprocessing computer that can be upgraded by adding more CPUs. (2) (Standard Parallel Port) The Centronics parallel port that was used on the first PCs. , SEK 30 million, capital gain on divestment divestment to strip one's investment from an entity. of the Vehicle Antenna operation, SEK 28 million, and costs attributable to the offer situation, SEK 28 million. Net financial income/expenses includes a capital loss of SEK 5 million, which is attributable to the sale of the shares that were received in payment when the Vehicle Antenna operation was divested. Income would have been SEK 57 million higher if Allgon had not had any hedging. The reported high tax rate amounts to 50 (35) percent. This is mainly due to non-deductible goodwill amortization. Financial position At December 31, 2000, the equity ratio amounted to 42 percent (50). Net borrowing amounted to SEK 370 million (162) at the period-end. Capital Expenditure During the year, capital expenditure in buildings and land, machinery and equipment amounted to SEK 202 million (281) gross, of which the new construction for Allgon Systems accounted for SEK 34 million (149). Offers from LGP LGP Linux Game Publishing LGP Low Ground Pressure LGP Local Governance Program (Iraq) LGP LG.Philips LGP Lysosomal Membrane Glycoprotein LGP Linux Global Partners LGP Left-Green Alliance (Iceland) and REMEC On August 22, LGP Telecom Holdings AB made an offer for Allgon. The Allgon Board of Directors, supported by its financial advisers, established that the offer did not reflect the value of Allgon's operations and potential. On October 16, LGP announced that the offer would not be completed as it had acquired only 17 percent of the capital stock. On September 28, REMEC made a bid for Allgon in which the offer period was later extended. On January 12, REMEC announced that the offer had not been accepted by shareholders representing at least two thirds of the capital stock, which was a condition, and the bid would therefore not be completed. Dividend The Board of Directors has decided to propose that the Annual General Meeting decide a dividend of SEK 0.85 (0.85) per share for 2000, equivalent to SEK 24.9 million (24.8) in total. Annual General Meeting The Annual General Meeting will be held on Allgon's premises in Antennvagen 6 in Arninge, Taby, north of Stockholm, on Wednesday May 16, 2001 at 6 pm. Nomination of Board Members Shareholders who wish to submit proposals for Board Members in advance can contact one of the following Members of the Nomination Committee: - Gunnar Bark, Chairman of the Board and Chairman of the Nomination Committee, tel +46 8587 206 60 - Per Wejke, Board Member, tel +46 8 661 34 36 or +46 708 42 33 73 Future Information Dates The complete Annual Report for Allgon AB will be available at the beginning of March on Allgon's premises in Antennvagen 6 in Arninge, Taby. It will be distributed to the shareholders at the same time. April 19, 2001 - Three-month Interim Report May 16, 2001 - Annual General Meeting July 13, 2001 - Six-month Interim Report October 16, 2000 - Nine-month Interim Report Taby, January 18, 2001 Allgon AB (publ) Jan Edhall President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. : http://www.bit.se/bitonline/2001/01/18/20010118BIT00870/bit0001.doc http://www.bit.se/bitonline/2001/01/18/20010118BIT00870/bit0002.pdf |
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