Option Reports First Quarter 2007 Results



    LEUVEN, Belgium, April 26 /CNW/ - Option N.V. (EURONEXT Brussels: OPTI;
OTC: OPNVY), the wireless technology company, today announced its results for
the first quarter ended March 31, 2007. The financial information reported in
this release is presented in Euro and has been prepared in accordance with the
recognition and measurement criteria of IFRS as adopted by the European Union
(IFRSs). The accounting policies and methods of computation followed in the
attached financial statements are the same as those followed in the most
recent annual financial statements.

    
        Highlights of first quarter 2007:

    -   Revenues of EUR 69.1 million for the first quarter of fiscal year
        2007, an increase of 18.5% compared to the revenues of EUR
        58.3 million realized in the first quarter of 2006.

    -   Gross margin for the first quarter of 2007 was 33.6% on revenues and
        amounted to EUR 23.2 million, compared with gross margin of 38.5% or
        EUR 22.4 million for the first quarter of 2006. The gross profit
        increased by 3.5%. Excluding expenses related to the ramp-up of the
        production capacity, the gross margin would have reached 34.3%.

    -   The quarterly EBIT increased to EUR 8.3 million or 12.0% on revenues
        compared with EUR 8.1 million or 14.0% during the corresponding
        period in 2006, an increase of 2.2%.

    -   Net profit for the first quarter of fiscal year 2007 amounted to EUR
        8.1 million, or EUR 0.20 per basic share and EUR 0.20 per diluted
        share. This means an increase of 7.2% compared with a net profit of
        EUR 7.6 million, or EUR 0.18 per basic share and EUR 0.18 per diluted
        share in Q1 2006 (1).

    Consolidated Performance


    For the 3 month period ended 31 March

    Million EUR (except per share figures)                 2007         2006

    Revenues......................................         69.1         58.3
    Gross profit..................................         23.2         22.4
    Operating expenses............................        (14.9)       (14.3)
    EBIT..........................................          8.3          8.1
    Net profit....................................          8.1          7.6
    Weighted average number of ordinary shares....   41 249 296   41 249 296
    Earnings per share after the
     stock split (EUR)............................         0.20         0.18

    Non financial highlights of the first quarter included

    Customer announcements

    -   Rogers Wireless offers Canadian mobile users fastest access to the
        Internet with Option's GT MAX "7.2 Ready" data card

    -   Telenet Solutions launches HSDPA Data Card with GlobeTrotter
        Unlimited Connection from Option

    -   Sharp embeds Option's new wireless module, the GTM 478, a compact
        module with a board-to-board connector making it the ideal module for
        embedding into small mobile devices such as PDA's and mobile
        multimedia devices

    -   Wataniya Telecom revolutionises residential Internet Service
        Provisioning with Option's HSDPA GlobeSurfer(R) wireless router

    -   Option to Supply Fujitsu Siemens Computers with HSDPA 3.6 Mbps
        embedded wireless module

    -   Option wins eMobile Business in Japan Product and technology
        announcements

    -   Option ships three millionth 3G device

    -   Major network solution providers showcase Option products at CTIA
        WIRELESS 2007

    -   Option implements HSUPA across its product portfolio at 3GSM World
        Congress including: GlobeTrotter EXPRESS HSUPA, GlobeTrotter GT MAX
        HSUPA, GTM380 embedded wireless module, GlobeSurfer(R) ICON HSUPA

    -   Option announces HSDPA 7.2 products: GlobeTrotter EXPRESS 7.2,
        GlobeSurfer(R) ICON 7.2 and GlobeSurfer(R) II 7.2

    -   Option highlights segmented connectivity software offerings:
        GlobeTrotter Connect, GlobeTrotter Mobility Manager and GlobeTrotter
        Unlimited Connection.

    -   Option broadband wireless portfolio ready for Windows Vista 32 and
        Vista 64 Corporate announcement

    -   ABI Research confirms Option's growing global leadership in the
        cellular modem market

    -   Patrick Hofkens strengthens Option's Executive Management Team as
        Vice President Strategic Alliances & General Counsel
    

    Commenting on the results, Jan Callewaert, CEO of Option said "First
quarter revenues of EUR 69.1 million, up 18.5 % on 2006, were in line with our
expectations. Our continuing focus on profitable growth saw net profit
increase 7.2 % to EUR 8.1 million.
    While revised delivery schedules for the data card orders, delayed from
Q4 2006, will eliminate the remaining backlog during the current quarter,
growth across all product sectors contributed to a 49% increase in first
quarter shipments.
    The first quarter was one of transition as we announced significantly
enhanced performance with the availability of 2.0 Mbps HSUPA uploading and
7.2 Mbps HSDPA downloading across our product portfolio.
    We have established a strong position in the new market for ExpressCard
form-factor devices: our GlobeTrotter EXPRESS 7.2 is shipping to leading
operators around the world.
    Our operator customers are offering USB wireless modems as flexible and
easy-to-install alternatives to DSL in many territories: our GlobeSurfer(R)
ICON is central to many innovative marketing campaigns.
    We continue to expand our presence in the market for embedded wireless
modules: Sharp in Japan and Fujitsu Siemens Computers are Option's latest
customers among manufacturers of laptops and wirelessly connected multimedia
devices.
    With our continued focus on serving our operator and device manufacturing
customers, and the unrivalled breadth and depth of our product portfolio, we
remain in a very strong position to capitalise on the growing consumer appeal
of wireless broadband connectivity.
    Improving visibility of Q2, combined with the first quarter results
reported today and a continued strong order book, add to our confidence in our
full year revenue guidance of EUR 355 - 375 million for 2007."

    Financial Information

    Income Statement

    Revenues

    Revenues of EUR 69.1 million for the first quarter of fiscal year 2007,
an increase of 18.5% compared to the revenues of EUR 58.3 million realized in
the first quarter of 2006.

    Gross Profit

    Gross margin in Q1 2007 was 33.6% on revenues and amounted to EUR
23.2 million, compared with gross margin of 38.5% or EUR 22.4 million in Q1
2006. The gross profit increased by 3.5%. Excluding expenses related to the
ramp-up of the production capacity, the gross margin would have reached 34.3%.

    Operating expenses

    The quarterly operating expenses, including depreciation and amortization
charges, were EUR 14.9 million for the first quarter of 2007, compared to EUR
14.3 million in the first quarter of 2006.

    EBIT

    The quarterly EBIT increased to EUR 8.3 million or 12.0% on revenues
compared with EUR 8.1 million or 14.0% during the corresponding period in
2006, an increase of 2.2%.

    Financial Result

    During the first quarter of 2007, Option obtained a positive financial
result of EUR 142 thousand. The total exchange rate gains amounted to EUR
142 thousand mainly thanks to USD rates and Option received EUR 236 thousand
from risk free investments of the available cash.
    A total of EUR 207 thousand financial discounts were given to customers
for cash payments and the other financial costs, mainly related to rental
agreements, amounted to EUR 29 thousand.

    Net Profit

    On April 24th, 2006, the company executed a four for one stock split.
Applying the transaction retroactively, earnings per share would have been the
following:
    Net profit for the first quarter of fiscal year 2007 amounted to EUR
8.1 million, or EUR 0.20 per basic share and EUR 0.20 per diluted share. This
means an increase of 7,2% compared with a net profit of EUR 7.6 million, or
EUR 0.18 per basic share and EUR 0.18 per diluted share during the first
quarter 2006.

    Balance Sheet

    Cash increased from EUR 36.1 million at the end of 2006 to EUR
37.4 million at the end of the first quarter of 2007.
    During the first three months of 2007, inventories decreased from EUR
40.6 million to EUR 36.2 million. This decrease is explained by a reduction of
the component stock. The level of finished goods at quarter-end remained low,
representing 11.2% of total inventory value.
    Trade and other receivables increased from EUR 54.2 million at the end of
2006 to EUR 61.9 million at the end of the first quarter of 2007. This
increase was mainly related to the trade receivables.
    Fixed assets were EUR 45.6 million (net book value) as at March 31st
2007, an increase of EUR 3.5 million compared to the net book value of
EUR 42.1 million at the end of the previous fiscal year. During 2007, the
total investments in tangible assets, mainly test equipment, amounted to EUR
1.6 million and the Company invested EUR 5.0 million in intangible assets of
which 4.5 million for capitalized development projects.
    Total current liabilities decreased from EUR 53.1 million at the end of
2006 to EUR 52.5 million at the end of the first quarter of 2007. This
decrease is mainly related to the combination of increased trade and other
payables (+EUR 1.7 million) and decreased income tax payable (-EUR
2.4 million).
    The Company generated a deferred tax liability mainly as a result of the
capitalization of the commercial development projects under IFRS. In 2007,
this deferred tax liability increased with EUR 13 thousand which was nearly
fully related to capitalization of development projects.
    On total assets of EUR 184.0 million, the equity amounted to EUR 119.8
million, which results in a solvency ratio of 65.1% at quarter-end compared to
63.2% at year-end 2006.
    Cash flow generated from operating activities during the first three
months of 2007 amounted to EUR 7.9 million compared to EUR 6.9 million in the
corresponding period of the previous year.

    
                               - OPTION N.V. -

           Unaudited financial report prepared in accordance with
             International Financial Reporting Standards (IFRSs)

                   Unaudited consolidated income statement

    For the 3 month period ended 31 March

    Thousands EUR (except per share figures)               2007         2006


    Revenues......................................       69 102       58 318
    Cost of products sold.........................      (45 880)     (35 875)
    Gross profit..................................       23 222       22 443
    Gross margin/Total revenues %.................         33.6%        38.5%
    Research and development expenses.............       (5 123)      (4 237)
    Sales, marketing and royalties expenses.......       (6 021)      (7 821)
    General and administrative expenses...........       (3 753)      (2 241)
    Total operating expenses......................      (14 897)     (14 299)
    Profit from operations (EBIT).................        8 325        8 144
    EBIT/Total revenues %.........................         12.0%        14.0%
    Depreciation and amortization.................        3 040        2 503
    EBITDA........................................       11 365       10 647
    EBITDA/Total revenues %.......................         16.4%        18.3%
    Exchange gain/(loss)..........................          142          527
    Interest income/(expense).....................            0         (101)
    Finance result................................          142          426
    Profit before taxes...........................        8 467        8 570
    Tax expense...................................         (325)        (974)
    Net profit....................................        8 142        7 596
    Weighted average number of ordinary shares....   41 249 296   41 249 296
    Diluted average number of ordinary shares.....   41 249 296   41 249 296
    Earnings per share (in EUR)(2)................         0.20         0.18
    Diluted earnings per share (in EUR)...........         0.20         0.18



                               - OPTION N.V. -
                     Unaudited consolidated balance sheet

             Prepared in accordance with International Financial
                         Reporting Standards (IFRSs)

    Thousands EUR
                                                             31           31
                                                          March     December
    For the period ended                                   2007         2006

    Assets
    Current assets
    Cash and cash equivalents........................    37 394       36 062
    Trade and other receivables......................    61 857       54 201
    Income tax receivable............................       150          110
    Inventories......................................    36 161       40 572
                                                        135 562      130 945

    Non-current assets
    Property, plant and equipment....................    12 822       12 099
    Intangible assets................................    32 779       29 998
    Deferred tax assets..............................     2 665        3 303
    0ther receivables................................       128          144
                                                         48 394       45 544

    Total assets.....................................   183 956      176 489

    Equity and Liabilities
    Current liabilities
    Trade and other payables.........................    50 844       49 137
    Income tax payable...............................     1 554        3 914
    Current portion of long-term debt................        55           74
                                                         52 453       53 125

    Non-current liabilities
    Trade and other payables.........................    11 326       11 326
    Non-current portion of long-term debt............       148          148
    Deferred tax liabilities.........................       269          256
                                                         11 743       11 730

    Equity
    Issued capital...................................     6 116        6 116
    Share premium....................................    43 865       43 865
    Reserves.........................................       319          335
    Retained earnings................................    69 460       61 318
    Shareholders' equity.............................   119 760      111 634
    Total liabilities and shareholders' equity.......   183 956      176 489



                                - OPTION N.V.-
                 Unaudited consolidated cash flow statement

             Prepared in accordance with International Financial
                         Reporting Standards (IFRSs)

    Thousands EUR
                                                             31           31
                                                          March        March
    For the period ended                                   2007         2006

    Operating activities
    Net profit(A).....................................    8 142        7 596
    Depreciation and amortization.....................    3 040        2 503
    Write-offs on inventories.........................        -          145
    Write-offs on trade debtors.......................      400            -
    Unrealized foreign exchange.......................      300          (44)
    losses/(gains)
    Interest income...................................     (236)           -
    Interest expense..................................       28            -
    Tax expense.......................................      325          974
    Total(B)..........................................    3 857        3 578

    Cash flow from operating
     activities before changes
    in working capital(C)=(A)+(B)..........   11 999       11 174
    Decrease/(increase) in trade
     and other receivables............................   (8 364)       1 777
    Decrease/(increase) in inventories................    4 411       (3 381)
    Increase/(decrease) in trade and other payables...    1 707       (2 667)
    Total changes in working capital(D)...............   (2 246)      (4 271)

    Cash generated from
     operations(E)=(C)+(D).................    9 753        6 903
    Interests (paid)(F)...............................      (65)           -
    Interests received(G).............................      230            -
    Income tax (paid)/received(H).....................   (1 986)          14

    Cash flow from operating
     activities(I)=(E)+(F)+(G)+(H).........    7 932        6 917

    Investing activities
    Acquisition of property, plant and equipment......   (1 615)        (345)
    Acquisition of intangible assets..................     (444)        (838)
    Development expenditures..........................   (4 514)      (2 839)
    Cash Flow from Investing Activities(J)............   (6 573)      (4 022)

    Financing activities
    Repayment of borrowings...........................      (18)           -
    Payment of finance lease liabilities..............        -         (131)
    Cash flow from financing activities(K)............      (18)        (131)

    Net increase in cash and cash
     equivalents(I)+(J)+(K)...........................    1 341        2 764

    Cash and cash equivalents at
     beginning of period..............................   36 062       49 288
    Effect of exchange rate
     fluctuations on cash held........................       (9)           -
    Cash and cash equivalents at end of period........   37 394       52 052

    Difference........................................    1 341        2 764



                               - OPTION N.V. -

            Unaudited Consolidated Statement of Changes in Equity

    Thousands EUR                        Shareholders' equity

    For the 3 month period
     ended 31 March 2007

                         Issued   Share    Share-  Transl- Retained   Total
                        capital  premium   based    ation  earnings  equity
                                          payment reserves
                                         reserves
    As per 31 December
     2006
                          6 116   43 865      360      (25)  61 318  111 634

    Net profit.........       -        -        -        -    8 142    8 142
    Translation
     reserves..........       -        -        -      (16)       -      (16)
    As per 31 March
     2007..............   6 116   43 865      360      (41)  69 460  119 760
    

    This press release contains forward-looking information that involves
risks and uncertainties, including statements about the company's plans,
objectives, expectations and intentions. Such statements include, without
limitation, discussions concerning the company's strategic direction and new
product introductions and developments. Readers are cautioned that such
forward-looking statements involve known and unknown risks and uncertainties
that may cause actual results to differ materially than those set forth in the
forward looking statements. The risks and uncertainties include, without
limitation, the early stage of the market for connectivity and integrated
wireless products and solutions for portable and handheld computers and mobile
telephones, the management of growth, the ability of the company to develop
and successfully market new products, rapid technological change and
competition. Some of these risk factors were highlighted in the Consolidated
and Statutory Report 2006 of the Board of Directors which can be found in the
Annual Report 2006 page 51-52. The forward-looking statements contained herein
speak only as of the date of this press release. The company expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any such statement to reflect any change in the company's
expectations or any change in events, conditions or circumstance on which any
such statement is based.

    About Option (www.option.com) - EURONEXT Brussels OPTI; OTC:

    OPNVY Option is the wireless technology company and is a leading
innovator in the design, development and manufacture of 3G UMTS-HSDPA, EDGE,
GPRS, GSM and WLAN technology products for wireless connectivity solutions.
Option has built up a solid reputation for creating exciting products that
enhance the performance and functionality of wireless communications. Option's
headquarters are in Leuven, Belgium. The company has Research & Development in
Leuven, a Software and Applications development centre in Adelsried (Germany),
a Wireless Router development centre in Stockholm and an ISO 9002 production
engineering and logistics facility in Cork, Ireland and sales & support
offices in US, Japan, Hong Kong and Taiwan.

    
    1)  On April 24th, 2006, the company executed a four for one stock split.
        For reporting purpose the transaction was applied retroactively.
    2)  On April 24th, 2006, the company executed a four for one stock split.
        For reporting purpose the transaction was applied retroactively.
    




For further information:

For further information: Jan Callewaert, Founder & CEO, Frederic
Convent, CFO, Gaston Geenslaan 14, B-3001 Leuven, Belgium, TEL:
+32-(0)-16-31-74-11, FAX: +32-(0)-16-31-74-90, E-mail: investor@option.com

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OPTION N.V.

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