E2V.L Regulatory News (E2V)

16 Aug 2007 07:00

e2v technologies PLC16 August 2007 16th August 2007 e2v technologies plc Interim Management Statement e2v technologies, a specialist developer and manufacturer of high technologycomponents and sub-systems, is providing its first Interim Management Statementcovering the 19 weeks trading to the 10th August 2007. Group performance is in line with management expectations. As reported lastfinancial year, the Electronic Tubes product group continues to provide strongersales growth than Sensors and Semiconductors. Sensors and Semiconductors product group sales will benefit from a full 12months trading from the Grenoble facility acquired in July 2006. The dentalx-ray imaging market is the most significant within the Medical & Science sectorand remains slow, primarily due to consolidation of our customer base. Whilst weremain confident that the demand for digital dental x-ray technology willprovide medium to long-term growth opportunities, we do not expect a recovery insales in the current financial year. Sales to the scientific imaging andinstrumentation markets are growing. Within Aerospace & Defence the group isexecuting existing contracts for imaging and microwave products whilst thedemand for specialist semiconductors remains robust. Within the Commercial &Industrial sector the MiCS business, acquired in May 2007, has recently secureda further contract win and is meeting management expectations. As anticipated,overall sales to the remaining applications within Commercial & Industrial willbe similar to last year. Within the Electronic Tubes product group the Aerospace & Defence sector iscontinuing to experience strong demand for electronic subsystems and this willprovide significant growth. Whilst the building of strategic spares stock by amajor radiotherapy customer last year has constrained growth in the Medical &Science sector, this is anticipated to regain momentum in the second half of theyear. In the Commercial & Industrial sector, the decline in demand forproducts used in the US UHF Digital TV broadcast market has been moresignificant than expected and we believe this will be offset by sales growth insatellite communications and marine radar in the second half. As detailed in the final results announcement for year to 31 March 2007, themanagement continues to focus on operational improvements within the business.In particular, progress is being made in establishing low cost assemblyfacilities in Mexico where initial production will commence in the second halfof the financial year. We continue to work with an external consultancy toreview the UK business with the objective of enhancing operational efficiencyand customer service. Overall sales and profits are being impacted by the sustained weakness of the USdollar despite an active hedging strategy and an ongoing programme to extend ourUS dollar cost base. Anticipated increases in R&D and administration overheads,required to support the larger business, are now being incurred. Following the £5m acquisition of MiCS, net debt has risen to £83m. Operatingcash flow has been broadly neutral. Group profit before tax for the first half is expected to exceed last year andthe Board anticipates that the full year outcome will be weighted to the secondhalf and within the range of current market expectations. Enquiries: e2v technologies plc Tel: 01245 493493Keith Attwood/Mike Hannantwww.e2v.com Gavin Anderson & Company Tel: 020 7554 1400Keith Brookbank/Michael Turner NOTES FOR EDITORS e2v technologies plc e2v technologies is a leading designer, developer and manufacturer of specialised components and subsystems, falling within two product groups: o Sensors and Semiconductorso Electronic tubes These products enable some of the world's leading OEMs to deliver innovative systems for medical and science, aerospace and defence, and commercial and industrial applications. For the year ended 31 March 2007, e2v achieved sales of £174m and is listed on the London Stock Exchange (e2v.l). e2v's products are supplied into three core market areas: o Medical & Science: Sensor and Semiconductor technology includes imaging sensors for intra-oral and panoramic dental X-ray, mammography, life science applications and X-ray microscopy. Electronic tubes are the enabling technology behind radiotherapy cancer treatments, microwave medical therapy and high-energy physics. o Aerospace & Defence: Sensor and Semiconductor technology includes military surveillance, targeting and guidance, space-based imaging and astronomy, radar & electronic warfare and broadband data converters and microprocessors for aerospace applications. Electronic tubes provide the enabling technology behind radars, electronic countermeasures (ECM), electronic warfare and satellite communications. o Commercial & Industrial: Sensor and Semiconductor technology includes marine radars, industrial safety sensors, automotive radars and alarms, thermalimaging cameras used by fire fighters, CCD and CMOS high resolution line scan cameras for industrial inspection. Electronic tubes provide enabling technology behind TV broadcast, satellite communications, marine radar and food and industrial processing. The overall purpose of the business is to grow sustainable shareholder value whilst appropriately meeting the expectations of customers, people, partners, suppliers and the wider community. e2v's vision is to create value through bright ideas in technology and materials science. The Group's mission is to place customers at the heart of the business, providing enabling products of premium quality that extend technical barriers and enhance the competitive position of our partners. e2v has approximately 1,800 employees worldwide with three UK based manufacturing sites in Chelmsford, Lincoln and High Wycombe, one in Grenoble, France, and since May 2007 a site in Neuchatel in Switzerland. In addition e2v has sales offices in the UK, USA, Germany, France and Hong Kong as well as a network of distributors and representatives covering other key territories. Further information on e2v technologies plc is available from its website, www.e2v.com This information is provided by RNS The company news service from the London Stock Exchange