ADB Group Reports Solid Financial Results for 2009

(Thomson Reuters ONE) - ADB Holdings S.A. / ADB Group Reports Solid Financial Results for 2009 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ?         Revenue grew 5.6% over 2008, reaching US$ 381.0 million?         Adjusted EBIT grew 42.9% compared to 2008 and reachingUS$ 27.7 million, resulting from increased operational efficiencies?         Cash generated during the year amounted to US$ 47 million?         US$ 22.3 million returned to shareholders through share buyback?         Seven new customers won during the year; two new markets opened?         A record amount of technology, innovation and quality awards wonGeneva -11 February 2010, 06.00 a.m. (CET)Advanced Digital Broadcast Holdings S.A. (SIX: ADBN) reported today ADB Group'sunaudited consolidated financial results for the full year 2009.Revenue for the full year 2009 reached US$ 381.0 million, increasing 5.6%compared to 2008, in line with expectations as communicated in the latestbusiness update in October 2009. The gross profit amounted to US$ 139.0 millionor 36.5% of the revenue, also in line with the Group's expectations for the yearand following the anticipated sales mix development.The Group continued increasing its operational efficiency throughout the year.The operating expenses-to-sales ratio decreased from 33.2% in 2008 to 28.2% in2009.Adjusted[1] Earnings Before Interest and Tax grew to a record US$ 27.7 million,or 7.3% of the revenue. This was ahead of the Group expectations. Adjusted NetProfit After Tax reached a record US$ 23.1 million in 2009 or 6.1% of therevenue, compared to US$ 14.9 million in 2008 (continuing operations). Thisyielded US$ 4.18 adjusted Earnings Per Share, or US$ 4.09 on diluted basis.The cash generation was strong throughout the 2009, yielding US$ 47 million(after R&D investments).After using a total of US$ 22.3 million for the sharebuyback programmes, the Group closed the year with a gross cash position(including available-for-sale investments) of US$ 100.3 million (compared toUS$ 71.0 million in 2008), net cash position of US$ 69.3 million (compared toUS$ 43.8 million in 2008), and a net current asset position of US$ 42.1 million(compared to US$ 38.0 million in 2008). Consequently, the Group enters the year2010 with a strong balance sheet.Andrew Rybicki, Chairman and CEO of ADB Group, commented: "I'm very pleased withthe Group performance during 2009. When we started the year, the macroeconomicoutlook was very uncertain. While all the clouds have not entirely vanished, itis very satisfying to note that our staff has gone the extra mile performing inline with management expectations. Cost control was excellent, and developmentof new products and business even better. I believe this is a remarkable result,and want to sincerely congratulate our entire staff. Increasing operatingresults and profitability, while simultaneously returning money and creatingvalue for the shareholders, is a rare combination".[1] During 2009, the Group conducted a goodwill review of the assets acquiredfrom Vidiom Systems Inc. in early 2006. Based on this, the Group decided to takenon-cash, non-recurring impairment charges of US$ 8.2 million, mainlyattributable to the lower value of the goodwill, due to a delay in the generaltru2way market development in the US, compared to the initial expectations atthe time of  acquisition. The Group notes that its prospects in the US marketremain intact. For the sake of comparability, the Group presents adjustedfigures without the impact of the impairment charges.The reported Earnings Before Interest and Tax, including the effect of theimpairment charges, was US$ 19.5 million, or 5.1% of the revenue. The Net ProfitAfter Tax accounted for US$ 15.3 million, or 4.0% of the revenue.Outlook for 2010The Group gives the following guidance for the full year 2010:?         Revenue is expected to grow over 10% in 2010;?         The Group expects to continue being profitable at an acceptable levelBusiness overviewHigh-definition TV (HDTV) products accounted for 79% of product sales revenue,compared to 72% in 2008. Personal Video Recorders (both high and standarddefinition) represented 58% of the product sales, compared to 39% in 2008. Thesales of hybrid products represented 75% of the product sales, and thusconfirmed the Group leadership in this area. As a total, the high-end productsconstituted 85% of the Group overall product sales. The Group notes that thesedevelopments confirm the trend towards high-end consumer digital TV equipment.The year was strong for cable business, which constituted 39% of the Grouprevenue, the same level than last year. The main driver was the expansion of theexisting customer businesses, which in particular benefited from the prevailingconsumer trend to focus more on in-house entertainment. Terrestrial businessrepresented 12% of Group revenue, compared 18% in 2008. This business was helpedfrom the increased demand from the Italian market towards the latter part of theyear. The satellite business increased to 29% of the revenue, growing from 13%in 2008. IPTV contributed 19% of the Group revenue, compared to 27% in 2008,reflecting overall difficult year in the IPTV environment.During the year 2009, the Group won the following new customers: TFN (Taiwan),Altibox (Norway), GGA Maur (Switzerland, three Spanish retailers (includingIkusi) and one Eastern European operator. Notably, amongst these, tworepresented entry to new markets; Taiwan cable, and Spanish retail. The Groupwas also among the first to introduce a new retail product in Italy forsatellite broadcast, which recorded great customer success. Today the Group alsoannounced that Telekom Austria has started deploying advanced connected homefeatures with ADB's set-top boxes and network software. These include DivX videosupport and home networking features. The service is the first of its kind inEurope.The Group received during the year numerous awards and recognitions in thefields of technology development, innovation, consumer experience and corporatedevelopment. Most notable from these are awards from IMS Research for the "TVInnovator of the Year 2009"and "Best STB Technology"; EEBC Telecom &Broadcasting "The most innovative product/solution" award, and the second placein the Swiss Equity Award competition.During the full year of 2009, Europe represented 84%,, Middle East and Africa9%, Americas 6% and Asia Pacific 1% of the total Group revenue. Both Western andEastern European customers grew strongly, Eastern Europe representing 28% of theGroup's total revenue compared to 20% in 2008.The Group's efforts in developing advanced software-based features are meetinggood market demand. In October, one of the Group's customers started deployingits latest generation HD User Interface, called Carbo. On top of providing fastresponse time, Carbo also embeds advanced features such as YouTube(TM) accesscapability, for an enhanced multimedia experience.  In November, due to itssoftware prowess, the Group was able to demonstrated full interoperability ofits set-back box with the two most deployed systems in the US cable industry.The Group's set-top box software products are now delivered to more and morecustomers: to date, no less than six customers or markets benefit from acomplete set of such products, from middleware to user interface, including homenetworking.In 2009, the Group has smoothly expanded and diversified its supplier base ofboth manufacturing and component suppliers. It has also ramped up two hardwaredesign ODMs, allowing it to increase its design capabilities while maintainingits fixed cost base. This also provides the Group with more cost-efficientdesign capabilities. All this was achieved in parallel with increased efforts onquality, which the Group sees as a strong differentiator in the industry.Looking forward, the Group sees a continued shift towards software-basedvalue-adding services on the set-top platforms, driven by both user experienceimprovements and multimedia convergence. The Group sees this trend as aconfirmation of its vision, and providing multiple opportunities going forward.Results for the second half of 2009Results for the second half of 2009 developed as follows, compared to theprevious semesters (2009 numbers refer to the adjusted figures):+----------------------------+----------------+---------------+----------------+|US$ millions |Second half 2009|First half 2009|Second half 2008|+----------------------------+----------------+---------------+----------------+|Revenue | 197.8 | 183.2 | 190.9 |+----------------------------+----------------+---------------+----------------+|Gross profit | 70.4 | 68.6 | 76.6 |+----------------------------+----------------+---------------+----------------+|Gross margin % | 35.6% | 37.4% | 40.1% |+----------------------------+----------------+---------------+----------------+|Adjusted EBIT | 14.5 | 13.2 | 8.3 |+----------------------------+----------------+---------------+----------------+|Adjusted EBIT margin % | 7.3% | 7.2% | 4.3% |+----------------------------+----------------+---------------+----------------+|Adjusted Net Profit | 13.1 | 10.0 | 7.3 |+----------------------------+----------------+---------------+----------------+|Adjusted Net Profit margin %| 6.6% | 5.4% | 3.8% |+----------------------------+----------------+---------------+----------------+Note: The above figures are presented for the continuing operations.Organizational updateThe Group continued to align its resources in order to achieve furtherefficiencies in both product development and customer service. The resources ofthe Group's affiliate Osmosys have been re-distributed to support other businessactivities. The Group views this as a tool for serving its customer base in anintegrated way, in line with its strategy. After the reorganization, theSoftware and Services segment falls below the threshold for reporting segments,according to IFRS. Therefore, going forward, the Group will report on onesegment only: Digital TV Products and Services.In early 2010, Mr. Krzysztof Bilinski, Vice President and General Manager forSatellite and Terrestrial Business Unit, Advanced Digital Broadcast SA, has beenappointed to the Executive Committee of ADB Group. He has been with ADB Groupsince 1997, holding various senior management positions and will continue beingresponsible for one of the Group's largest business units.Share buybackThe Group launched a share buyback program on 7 September 2009 on the secondtrading line with the aim of reducing the share capital by the amount of sharesso repurchased. As per the time of this release, the Group has bought back525.710 shares under the program. Currently the Group is in possessionof1,111,063 of its own shares.Conference callADB Group management will hold a telephone conference to discuss the 2009financial results and outlook for the year 2010, today,at 15.00 CET.To connect to the conference call, participants should dial the followingnumber: +41 (0) 44 580 64 03During the presentation, please press"01" on your telephone keypad if you wishto ask a question.This press release and further information on ADB Group can be found on theGroup's website atwww.adbholdings.com For further information please contact:Tina NyforsExecutive Vice PresidentCorporate DevelopmentTel:  +41 22 592 8433Fax: +41 22 592 8432t.nyfors(at)adbglobal.com -end-About ADB Group (SIX: ADBN)ADB Group (www.adbholdings.com ) was founded in1995 and is a leading developer of solutions required to view and interact withdigital TV broadcast through cable, satellite, terrestrial and IP networks. TheGroup primarily sells consumer premise devices, including set-top boxes, withover 15 million units deployed since 1997. The development and sales of theGroup's products and services are conducted through ADB (www.adbglobal.com), and Vidiom Systems (www.vidiom.com).This press release contains forward-looking statements. You are cautioned thatany such forward-looking statements are not guarantees of future performance andinvolve risks and uncertainties, and that actual results may differ materiallyfrom those in the forward-looking statements as a result of various factors,among which:?        future developments of the world digital TV market, in particular thefuture demand for digital TV products in the key markets and from key customersserved by our Group;?        pricing pressures, competitive market situation;?        our and the industry's capability to successfully and timely innovateand develop challenging technology, and our capability to hire and retainhigh-level employees;?        changes in the exchange rates between the US$ and the main otheroperating currencies of the Group, including the Euro and the Polish Zloty;?        our ability in an intensive competitive environment, to continuesecuring orders  from existing or new customers and to achieve our pricingexpectations for volume supplies of new products in whose development we have orare currently investing;?        the ability of our suppliers to meet our demands for supplies,qualitatively or quantitatively, and to offer competitive pricing;?        our gross margin could vary significantly from expectations based onchanges in revenue levels, product mix and pricing, changes in unit costs, andthe timing and execution of shipments ramp-ups;?        changes in the economic, tax, social or political environment,including import and other duties, military conflict, terrorist activities, aswell as natural events such as severe weather, health risks, epidemics orearthquakes in the countries in which we, our key customers and our suppliersoperate;?        our ability to obtain required licenses on third-party intellectualproperty on reasonable terms and conditions, the impact of potential claims bythird parties involving intellectual property rights relating to our business,and the outcome of litigation;?        the results of actions by our competitors, including new productofferings and our ability to react thereto;Advanced Digital Broadcast Holdings SA undertakes no obligation to publiclyupdate or revise any forward-looking statements. Advanced Digital BroadcastHoldings SA reserves the right to amend the information at any time withoutprior notice.The information contained in this press release may not be considered as being asubstitute for economic, legal, tax or other advice and you are cautioned tobase investment decisions or other decisions on the content of this release. Youare recommended to consult your investment advisers or other advisers prior tomaking any decision.This press release is not an offer of securities for sale or a solicitation toinvest in Advanced Digital Broadcast Holdings SA securities. In particular, itis not an offer of securities for sale in the United States of America, itsterritories and possessions.  Securities may not be offered or sold in theUnited States absent registration or an exemption from registration under theU.S. Securities Act of 1933, as amended.  Advanced Digital Broadcast HoldingsS.A. does not intend to register its securities in the United States of America.ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIESCONSOLIDATED INCOME STATEMENTSYEARS ENDED 31 DECEMBER 2009 AND 2008(Expressed in United States Dollars)     2009 Adjusted*   2009   2008     $   $   $ Revenue     381,005,778     381,005,778       360,816,542 Cost of sales         (241,967,509)     (241,967,509)    (216,507,049) Gross profit       139,038,269   139,038,269       144,309,493     36.5%            36.5%             40.0% Research and development expenses      (60,758,207) (60,758,207)         (67,404,993)       15.9%    15.9%              18.7% Selling, general and administrative expenses      (46,681,151)  (46,681,151)      (52,529,445)                12.3%             12.3%             14.6% Other income           329,551                 329,551           433,693 Other expenses    (4,240,232)    (4,240,232)    (5,429,943) Impairment charges                          -       (8,180,625)                          - EBIT      27,688,230      19,507,605        19,378,805       7.3%   5.1%              5.4% Finance income         2,311,978    2,311,978         4,868,573 Finance costs        (3,806,975)         (3,806,975)        (6,231,115) Profit before tax        26,193,233    18,012,608        18,016,263                6.9%             4.7%              5.0% Income tax expense            (3,136,512)       (2,761,968)        (3,098,098) Profit for the year from continuing operations        23,056,721 15,250,640        14,918,165                 6.1%   4.0%               4.1% Loss for the year from discontinued operations                         -                      -        (3,329,669) Profit for the year           23,056,721       15,250,640         11,588,496                 6.1%      4.0%               3.2% Earnings per share From continuing and discontinued operations: Basic                      4.18                    2.76                    1.96 Diluted                      4.09                    2.71                    1.96 From continuing operations: Basic                     4.18                  2.76                    2.53 Diluted                     4.09                  2.71                    2.52* Adjusted figures are computed without the effect of impairment chargesADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEYEARS ENDED 31 DECEMBER 2009 AND 2008(Expressed in United States Dollars)     2009   2008     $   $ Net gain (loss) on available-for-sale investments               673,381               (96,963) (Charge) credit of deferred tax for net loss (gain) on available-for-sale investments               (49,894)                   4,760 Actuarial (loss) gain directly recognised in equity             (571,422)               317,710 Credit (charge) of deferred tax for direct recognition of actuarial loss (gain) in equity                 96,065             (129,881) Movement in cash flow hedges             1,897,114           (1,897,114) (Charge) credit of deferred tax from movement in cash flow hedges             (221,393)               221,393 Translation adjustments               401,324               149,965 Net gain (loss) recognised directly in equity             2,225,175           (1,430,130) Profit for the year          15,250,640          11,588,496 Total comprehensive income for the year          17,475,815          10,158,366ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS31 DECEMBER 2009 AND 2008(Expressed in United States Dollars) ASSETS   2009   2008     $   $ Non-current assets Goodwill             9,393,440           15,906,695 Intangible assets           18,595,435           18,562,158 Property and equipment           11,370,070           11,429,514 Deferred income tax assets             3,718,745             3,281,531 Long-term trade receivables             4,056,908             8,301,209 Other non-current assets            1,223,478            1,110,577 Total non-current assets          48,358,076          58,591,684 Current assets Inventories, net           19,722,746          26,006,638 Other current assets             5,557,166             6,400,377 Trade receivables, net           78,587,485           60,631,162 Available-for-sale investments           28,731,753             9,599,494 Time deposits             6,173,850                          - Cash and cash equivalents          65,405,033          61,365,592 Total current assets        204,178,033        164,003,263 Total assets        252,536,109        222,594,947 EQUITY AND LIABILITIES Capital and reserves Share capital             1,326,181             1,326,181 Share premium           76,551,414           76,551,414 Share-based compensation reserve             4,373,022             3,342,232 Other reserves             (768,854)           (2,994,029) Retained earnings           39,252,110           24,783,800 Treasury shares        (42,759,071)        (21,404,311) Total equity          77,974,802          81,605,287 Non-current liabilities Long-term bank loans             6,041,849             9,529,943 Retirement benefit obligations             5,166,459             4,171,832 Deferred income tax liabilities             1,186,411             1,207,720 Long-term payables                72,332                78,251 Total non-current liabilities          12,467,051          14,987,746 Current liabilities Bank loans           21,198,243           14,031,639 Current portion of long-term bank loans             3,793,087             3,615,926 Trade and other payables           95,305,468           72,924,994 Accrued expenses           33,590,350           26,491,813 Provisions             3,140,133             3,477,870 Taxes payable             2,821,626             1,907,065 Other current liabilities            2,245,349            3,552,607 Total current liabilities        162,094,256        126,001,914 Total liabilities        174,561,307        140,989,660 Total equity and liabilities        252,536,109        222,594,947ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSYEARS ENDED 31 DECEMBER 2009 AND 2008(Expressed in United States Dollars)     2009   2008     $   $ CASH FLOWS FROM OPERATING ACTIVITIES From continuing operations: Profit for the year           15,250,640           14,918,165 Adjustments for: Income tax expense             2,761,968             3,098,098 Depreciation             2,454,542             2,980,426 Amortisation           18,217,561           17,985,155 Impairment charges             8,180,625                          - Finance costs             3,806,975             6,231,115 Finance income           (2,311,978)           (4,868,573) Share-based payment expense             1,171,479             1,667,952 Provision for inventory             3,147,816             3,394,698 Others                59,817               279,972 Profit before working capital changes           52,739,445           45,687,008 Working capital changes: Trade and other receivables         (13,712,022)           45,119,707 Inventories             3,136,076             3,185,137 Trade and other payables           22,380,474           17,609,588 Accrued expenses             7,097,988         (19,822,356) Provisions              (337,737)             1,553,870 Other current liabilities           (1,307,258)           (1,726,005) Others            1,531,196            2,958,353 Cash generated by operating activities           71,528,162           94,565,302 Interest paid           (3,806,426)           (4,084,975) Tax paid          (2,355,555)             (744,066) Net cash provided by operating activities           65,366,181           89,736,261 Net cash used in operating activities from discontinued operations                         -          (1,488,005) Net cash provided by operating activities          65,366,181          88,248,256 CASH FLOWS FROM INVESTING ACTIVITIES From continuing operations: Acquisitions of property and equipment           (2,172,317)           (2,469,952) Proceeds from sale of property and equipment                 93,497               369,019 Payments for intangible assets         (18,203,728)         (20,863,032) Proceeds from sale of intangible assets                          -               656,756 Purchase of available-for-sale investments and time deposits         (24,632,728)           (7,672,714) Interest received            2,158,122            2,761,595 Net cash used in investing activities         (42,757,154)         (27,218,328)   (Continued)ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)YEARS ENDED 31 DECEMBER 2009 AND 2008(Expressed in United States Dollars)     2009   2008     $   $ Net cash provided by investing activities from discontinued operations                           -                 139,901 Net cash used in investing activities           (42,757,154)           (27,078,427) CASH FLOWS FROM FINANCING ACTIVITIES From continuing operations: Increase (decrease) in bank loans               3,855,671           (15,356,094) Share sale pursuant to exercise of stock options                  744,158                            - Share purchase               (23,021,937)           (12,429,174) Net cash used in financing activities           (18,422,108)           (27,785,268) Net cash provided by financing activities from discontinued operations                           -                           - Net cash used in financing activities           (18,422,108)          (27,785,268) TRANSLATION ADJUSTMENT ON FOREIGN CURRENCY               (147,478)               (804,018) NET INCREASE IN CASH               4,039,441             32,580,543 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR            61,365,592            28,785,049 CASH AND CASH EQUIVALENTS, END OF YEAR            65,405,033            61,365,592 ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS Time deposits                   17,648             26,415,356 Cash and bank balances            65,387,385            34,950,236              65,405,033            61,365,592ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIESOPERATING SEGMENTSYEAR ENDED 31 DECEMBER 2009 AND 2008(Expressed in United States Dollars) Year 2009   Digital TV Products and   Services   Other   Eliminations   Consolidated REVENUE $   $   $   $ External sales 376,991,256   4,014,522   -   381,005,778 Inter-segment sales 844,503   8,573,324   (9,417,827 ) - ----------------- ------------ -------------- -------------- Total revenue 377,835,759   12,587,846   (9,417,827 ) 381,005,778 -------------- RESULT Segment result 25,690,337   1,997,893   -   27,688,230 -------------- Impairment charges             (8,180,625 ) Finance income             2,311,978 Finance costs             (3,806,975 ) Income tax expense             (2,761,968 ) -------------- Profit for the year from continuing operations             15,250,640 Loss for the year from discontinued operations             - -------------- Profit for the year             15,250,640 ASSETS Segment assets 176,326,661   2,128,628   (724,259 ) 177,731,030 Unallocated corporate assets*             74,805,079 -------------- Consolidated total assets             252,536,109* Includes assets from discontinued operations for $8,786ADVANCED DIGITAL BROADCAST HOLDINGS SA AND SUBSIDIARIESOPERATING SEGMENTS (CONTINUED)YEAR ENDED 31 DECEMBER 2009 AND 2008(Expressed in United States Dollars) Year 2008   Digital TV Products and   Services   Other   Eliminations   Consolidated REVENUE $   $   $   $ External sales 351,596,827   9,219,715   -   360,816,542 Inter-segment sales 1,386,217   8,981,284   (10,367,501 ) - ----------------- ------------ -------------- -------------- Total revenue 352,983,044   18,200,999   (10,367,501 ) 360,816,542 -------------- RESULT Segment result 22,394,463   (3,015,658 ) -   19,378,805 -------------- Impairment charges             - Finance income             4,868,573 Finance costs             (6,231,115 ) Income tax expense             (3,098,098 ) -------------- Profit for the year from continuing operations             14,918,165 Loss for the year from discontinued operations             (3,329,669 ) -------------- Profit for the year             11,588,496 ASSETS Segment assets 135,607,362   25,607,362   -   161,214,724 Unallocated corporate assets*             61,380,223 -------------- Consolidated total assets             222,594,947* Includes assets from discontinued operations for $28,966[HUG#1383280] --- End of Message --- ADB Holdings S.A.Avenue de Tournay 7 Chambesy SwitzerlandISIN: CH0021194664; PR ADB HOLDINGS S.A. - 10.02.10: http://hugin.info/136393/R/1383280/342132.pdf

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