ECHING (dpa-AFX) - German embedded computer technology firm Kontron AG (KOTRF.PK, KOTFY.PK) reported that its EBIT for the third quarter was negative 6.7 million euros, compared to 3.5 million euros in the prior year.
EBIT net of restructuring costs and non-recurring costs for the quarter was also negative 6.7 million euros, compared to 5.1 million euros last year.
Group order intake for the quarter was 79.0 million euros, down 29.0 percent from 111.2 million euros in the same quarter last year.
Revenues for the quarter declined 21.1 percent to 89.5 million euros from 113.4 million euros in the year-ago period.
Looking ahead, Kontron said it expects revenues in the second half of 2016 to remain comparable to the first six months. However, both the adjusted EBIT margin and the gross margin are likely to be lower in the second half of 2016 than in the first six months.
Kontron said its Management Board is working on a new restructuring plan to return Kontron to profitable revenue growth by making the most of the company's existing potential.
Dr. Thomas Riegler, CFO of Kontron said, 'We are planning to implement all the points of the plan within twelve months, which is ambitious but nevertheless feasible. Kontron has numerous strengths which we must exploit and nurture, and the ECT market itself continues to offer us promising growth opportunities.'
Dr. Thomas Riegler, who has been in charge of Finance at Kontron AG since March 2016 and was appointed to the Management Board on July 25, 2016, has agreed to remain in office.
Frank Gumbinger has decided not to join the Management Board of Kontron effective January 1, 2017 for personal reasons.
Copyright RTT News/dpa-AFX