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EB, ELEKTROBIT CORPORATION, LOWERS PROFIT GUIDANCE FOR THE FIRST HALF OF 2011


March 29, 2011 - London

STOCK EXCHANGE RELEASE

Free for publication on March 29, 2011, at 5.30 p.m. (CEST+1)

 

EB, ELEKTROBIT CORPORATION, LOWERS PROFIT GUIDANCE FOR THE FIRST HALF OF 2011

 

EB expects a clearly negative operating profit for the first half of 2011. It is expected that the operating result during the second quarter of the year will be better than during the first quarter of the year. EB still expects that net sales in the first half of 2011 will be lower than in the first half of 2010 (EUR 86.2 million). Earlier in the Financial Statement Bulletin on February 17, 2011, EB announced for the first half of 2011 that it expected net sales to be lower than in the first half of 2010 (EUR 86.2 million) and operating profit to be lower than in the first half of 2010 (EUR 1.8 million).

 

The main reason for the revised profit outlook is a lowered revenue forecast in the Wireless Business Segment due to slower than expected order book development in the new satellite communication service solutions and due to increased competition in the area of smart phones related R&D services. The revenue forecast still contains uncertainties in particular with respect to the timing of individual projects.

 

The profit outlook for the first half of 2011 is still based on the assumption that there will not be further bookings of impairments of EB's accounts receivables from TerreStar Networks Inc. It is possible that based on later information related to TerreStar Networks' and TerreStar Corporation's reorganizations, this outlook may need to be reconsidered. Information on TerreStar Networks' and TerraStar Corporation's reorganizations are presented in the October 20 and 25, November 20, December 30, 2010, and February 17, 2011, stock exchange releases at www.elektrobit.com.

 

EB will release the January-March 2011 Interim Report on April 29, 2011.

 

 

Oulu, March 29, 2011
EB, Elektrobit Corporation
Board of Directors

 

More information:

 

Jukka Harju
Chief Executive Officer
Tel. +358 40 344 5466

 

Distribution:


NASDAQ OMX Helsinki
Major Media

 

EB, Elektrobit Corporation
EB creates advanced technology and turns it into enriching end-user experiences. EB is specialized in demanding embedded software and hardware solutions for wireless and automotive industries. The net sales for the year 2010 totaled MEUR 161.8. Elektrobit Corporation is listed on NASDAQ OMX Helsinki. www.elektrobit.com

 




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Source: Elektrobit Oyj via Thomson Reuters ONE

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