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2007-04-17 07:30:09 CEST 2007-04-17 07:30:09 CEST REGULATED INFORMATION Elcoteq - Company AnnouncementELCOTEQ GIVES PRELIMINARY INFORMATION ABOUT THE FIRST QUARTER RESULT AND LOWERS FULL-YEAR ESTIMATEElcoteq SE Stock Exchange Release April 17, 2007 at 8.30 am (EET) ELCOTEQ GIVES PRELIMINARY INFORMATION ABOUT THE FIRST QUARTER RESULT AND LOWERS FULL-YEAR ESTIMATE According to the current estimate, Elcoteq SE's first quarter operating income excluding one-time items will be a loss of approximately -23 million euros. Net sales will amount to approximately 950 million euros. The reasons for the operating loss are low manufacturing volumes, price pressure in the Communications Networks business area and production challenges in Mexico. The one time costs arising from the earlier announced action plan to improve the company's cost-efficiency and competitiveness are estimated to be approximately 35 million euros of which approximately 30 million euros will be recognized in the first-quarter's result. Elcoteq has earlier estimated these one-time costs to be in the amount of 20 million euros. The increase in costs is due mainly to the write-down of Elcoteq's shares in Cellon International and some Cellon-related receivables. Cellon International is a wireless design and development house, in which Elcoteq has been a minority shareholder since the collaboration agreement made in 2003. Prospects for the full year 2007 Elcoteq estimates its net sales for 2007 to grow only slightly from the previous year. Operating income excluding one-time items is estimated to be on a break-even level. The estimate has been changed because of further intensifying competition especially in Europe. Elcoteq will publish its first quarter interim report on April 26 at 9.00 am (EET). On the same day, the company will also disclose more information about the progress of the action plan. ELCOTEQ SE Jouni Hartikainen President and CEO For more information: Jouni Hartikainen, President and CEO, tel. +41 41 728 0301 Teo Ottola, CFO, tel. +358 50 521 1064 between 11.30 am and 1.00 pm Reeta Kaukiainen, Director, Communications and Investor Relations, tel. +358 10 413 1742 or +358 50 522 0924 About Elcoteq Elcoteq SE is a leading electronics manufacturing services (EMS) company with original design manufacturing (ODM) capabilities in the communications technology field. Elcoteq provides global end-to-end solutions consisting of design, NPI, manufacturing, supply chain management, and after-sales services for the whole lifecycle of its customers' products. These products include terminal products such as mobile phones and set-top boxes as well as communications network equipment such as base-stations, tower-top amplifiers, and microwave systems. The company operates in 16 countries on four continents and employs about 23,000 people. Elcoteq's consolidated net sales for 2006 totaled 4.3 billion euros (over 5 billion USD). Elcoteq SE is listed on the Helsinki Stock Exchange. For more information, please visit www.elcoteq.com. |
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