Sustained strong sales trend - up 55 percent in the fourth quarter; Encouraging development in new partnerships
Year-end ReportJanuary - December 2009Press release, February 18, 2010Sustained strong sales trend - up 55 percent in the fourth quarterEncouraging development in new partnershipsHighlights in the fourth quarter of 2009: Net sales in the fourth quarter rose to SEK 187.6 m (121.1), an increase of54.9 percent. Operating profit (EBIT) amounted to SEK 19.2 m (loss: 10.4),while pre-tax profit amounted to SEK 22.8 m (loss: 10.6). Earnings per share after tax were SEK 1.17 (loss: 0.69). Cash flow from current activities for the fourth quarter amounted to SEK 51.3m (neg: 2.5). Order intake amounted to SEK 155.4 m (105.5), an increase of 47.3 percent. In November, Doro raised SEK 15.9 m in a directed share issue.Highlights in the full-year 2009: Net sales of SEK 492.6 m (362.5), an increase of 35.9 percent. Operating profit (EBIT) of SEK 26.6 m (loss: 8.2), while pre-tax profitamounted to SEK 24.9 m (loss 10.1). Earnings per share after tax were SEK 1.30 (loss: 0.66). Cash flow from current activities for the full-year amounted to SEK 65.0 m(neg: 21.4). The Board of Directors proposes that no dividend be distributed to theshareholders for the 2009 fiscal year. Based on new products to be launched and the evolution of already announcedand partnerships to come, the growth in sales and operating profit (EBIT) isexpected to continue. Comments by the CEO, Jérôme Arnaud:“Stronger focus on the Care Electronics segment, combined with the internationalexpansion, partly in cooperation with partners, have been the most importantthemes during 2009. These corner-stones will be the foundation on which we willcontinue to build a successful company.In line with our strategy, 2009 was the year in which Doro® truly became thecategory leader of Telecom in Care Electronics with our easy-to-use mobilephones. The Doro Group's sales rose 55 percent compared with the fourth quarter of 2008,mainly as a result of strong sales over the Christmas period. Order intakeremained strong, with a growth of 47 percent compared with the equivalentperiod in 2008. We are still seeing healthy demand, mainly for CareElectronic's range of GSM-products, which supports our growth and profit trend.Sales in Home Electronics represented 30 percent of Doro's revenues in thefourth quarter. We are continuing our efforts to improve the profitability ofthis business unit,mainly by enhancing cost efficiency. For the fourth consecutive quarter we report an improved operating margin - animportant sign that we are on track for a new and sustainable level of profit.As a consequence of strong sales, cash flow for the quarter was very strong.Doro is today a growth company. The company is also net debt free. This we haveachieved by our own efforts. In addition a share issue was successfullycompleted in mid-November 2009. This will enabled us to continue investing inDoro's brand,product development and geographical expansion. We have achieved growth while improving our operational efficiency. The40-percent reduction of inventories, achieved over 2009 is one example of this.Growth was also achieved without any additional staff, which has helpedestablished a flexible cost structure. Combined with the directed new shareissue, this has more thandoubled Doro's shareholders' equity, providing us aconsiderably strengthened financial position. The success of our TV commercials earlier in 2009 was repeated in December.Together with well-established partners such as Orange, Carphone Warehouse,Consumer Cellular and the major Nordic operators Doro is more visible than everand now reaches customers in more countries.I am also pleased that Doro has become a member of the GSM Association (a globalsector organization) and the European organization Mobile Alley, an Europeanorganization dedicated to encouraging innovation in the mobile telecom sector.These memberships strengthen Doro's commitment to the development of GSMtechnology and to solutions developed for user-friendly handsets.In February 2010 we received confirmation of our leading position in thecategory Telecom in Care Electronics, when Doro was appointed one of theindustrial partners in the EU's Vicon project. Doro will cooperate withrenowned scientific institutions including the University of Bremen, FraunhoferFIT, RNID and CNIB in developing specially-adapted and easy-to-use products forpeople with special needs. It was in 2009 that Care Electronics achieved its breakthrough in Europe andthe US. I also have great expectations for 2010.”Please find attached the complete Full-year report 2009Doro AB discloses the information provided herein pursuant to the SecuritiesMarkets Act and/or the Financial Instruments Trading Act. The information wassubmitted for public release on Thursday, February 18, 2010, at 07:30 a.m. CET. Doro AB | Corporate reg. no. 556161-9429About DoroDoro is a Swedish company focusing on the development, marketing and sales oftelecom products specially adapted to the growing worldwide population ofseniors. With over 35 years of experience in telecommunications, and sales inmore than 30 countries on 5 continents, Doro is the world's leading brand foreasy-to-use mobile phones. Doro created the Care Electronics category and in recent years our productshave received several highly distinguished international design awards. Thecompany had sales of SEK 493 m in 2009. Doro's shares are quoted on the NasdaqOMX Stockholm, Nordic list, Small companies. Read more about Doro atwww.doro.com.