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Zurich, Switzerland, May 4, 2006 - Tecan, a leading provider of products and solutions in the fields of biopharma, diagnostics and forensics, recorded a strong increase in revenues and a significant expansion in profitability during the first quarter of 2006. Consolidated sales were up 58.6% year-on-year to CHF 110.7 million. Earnings before interest and taxes (EBIT) rose by 168.8% to CHF 14.1 million, and net profit was up 224.9% to CHF 10.4 million resulting in an EBIT and net profit margin of 12.8% and 9.4% respectively. The increase in these figures was achieved thanks to sustained good business performance as well as the completion of a major project in Forensics, which led to a one-off effect in the reporting period.
Tecan’s sales were boosted by the previously disclosed project for the South African Police Service, which contributed CHF 11.6 million. In addition, REMP, the company acquired in June 2005 contributed CHF 11.0 million to Tecan’s top line. Excluding these effects, Tecan would have achieved sales of CHF 88.1 million in the first quarter of 2006, an organic year-on-year increase of 26.2%. Furthermore, currency effects, especially the development of the US Dollar vs. the Swiss Franc, added an additional 7.3% to the overall growth figures.
Internal growth was broad based; products in the areas of diagnostics, in particular OEM business, and detection were very well received by the market. Sales increased in all geographic regions. "We are satisfied that we were able to sustain the positive business momentum seen in the second half of 2005 also during the first quarter of this year," commented Thomas Bachmann, Tecan's Chief Executive Officer.
In the first quarter of 2006, Tecan secured new orders worth CHF 102.8 million, a 46.6% rise or 40.4% in local currencies.
Strong increase in profitability
EBIT rose by 168.8% year-on-year to CHF 14.1 million, representing 12.8% of overall sales (Q1 2005: 7.5%). This positive development can primarily be attributed to greater operating efficiency, strict cost discipline, new product introductions and high capacity utilization.
Even more striking than the development of EBIT was Tecan’s increase in profits. Net profit grew by 224.9% to CHF 10.4 million, or 9.4 % of overall sales (4.6%). This increase can be attributed to an improvement in the EBIT as well as an improved financial result.
Tecan delivers world’s first large-scale forensic system
In February 2006, Tecan handed over to the South African Police Service the first large scale installation for high capacity processing of forensic evidence. This system provides the South African Police Service the means to execute fully automated, high reliability DNA profiling. This project represents a reference project for Tecan, which ranks among the leading global providers of automation for forensics applications, and sees substantial growth potential in this market thanks to rising global investments in the field of security.
Given the volume of new orders in the first quarter, the success of our products and the favorable market environment, Tecan expects to see an ongoing positive trend over the coming months.
Important upcoming events
The 2006 first half report will be published on 10 August 2006.
Tecan (www.tecan.com) is a leading global player in the Life Sciences supply industry specializing in the development, production, and distribution of advanced automation solutions enabling pharma and academic research, diagnostics, food and veterinary research as well as forensics. Through its REMP subsidiary (www.remp.com), Tecan is the leading supplier of compound and sample storage, management and logistics solutions. Tecan clients are pharmaceutical and biotechnology companies, university research departments and diagnostic laboratories. Founded in Switzerland in 1980, the company has manufacturing, research and development sites in both North America and Europe and maintains a sales and service network in 52 countries. In 2005, Tecan achieved sales of CHF 344.9 million (USD 275.9 Mio.; EUR 222.5 Mio.). Registered shares of Tecan Group are traded on the SWX Swiss Exchange (TK: TECN / Reuters: TECZn.S / Valor: 1210019).
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