Sitronics net loss up four-fold to $39 mln in Q3
MOSCOW. Dec 6 (Interfax) - OJSC Sitronics posted a net loss to US GAAP of $38.9 million in Q3 2011, up four-fold year-on-year, the Russian tech firm said in a press release.
Losses from exchange rate differences totaled $26.1 million, compared to $1.7 million on the same period of last year.
Revenue was up 42% to $316.4 million. Operating income before depreciation and amortization (OIBDA) grew 39% to $24.3 million, and the OIBDA margin fell to 7.7% from 7.8%.
Selling, general and administrative expenses grew 13% to $123.8 million. The group increased its spending on sales and marketing activity to strengthen its market position and fund its entrance into new market segments.
Consolidated revenues rose 36% year on year in January-September to $926.7 million and net losses widened to $73.4 million from $64.8 million.
Cash and cash equivalents amounted to $79.3 million at the end of Q3 2011, compared to $115.2 million at the end of Q3 2010 and $127 million at the end of the Q2 2011. This primarily reflected a negative change in working capital following cash advances received in prior periods.
The group's total borrowings were $772.4 million at the end of Q3 2011, excluding the $55.5 million of debt associated with the SITRONICS-NANO joint venture. This compares to total borrowings of $745.1 million at the end of Q3 2010 and $768.1 million at the end of the Q2 2011. The weighted average cost of borrowing was 7.6% as at September 30, 2011.
The proportion of long-term debt to total debt decreased to 25% as at September 30, 2011, compared to 43% at the end of the third quarter of 2010. Approximately 43% of the group debt was Russian ruble-denominated at the end of the period, with 30% denominated in US dollars and 27% in Euros. However, following the refinancing of a $230 million credit facility from the Bank of Moscow , the proportion of long-term debt to total debt increased to 53%, and the share of US dollar denominated debt decreased to 16%.
Sitronics said $237 million of contracts were secured since the announcement of its second quarter financial results on September 8, 2011.
Telecommunication Solutions segment revenues soared 40% year on year in Q3 2011 to $133.6 million. OIBDA more than tripled to $17.3 million and the OIBDA margin grew to 13% from 5.6%. Segment losses narrowed to $0.7 million, from $6.2 million a year previously.
Telecommunication Solutions results improved mainly as a result of higher sales of the proprietary FORIS billing solution, and an increase in INTRACOM TELECOM contracts volume outside Greece.
The division signed contracts worth $51 million since September 8.
Revenues for the Information Technologies segment almost doubled to $92.3 million in Q3, OIBDA rose to $3.1 million from $1.2 million and the margin grew to 3.3% from 2.5%. Net profit grew to $1.8 million from $0.5 million. New contracts worth $91 million were signed.
Microelectronics segment revenue grew 2% year-on-year in Q3 to $74.9 million, OIBDA fell to $9.1 million from $14.7 million and the margin decreased to 12.2% from 20%. Losses widened to $7.5 million from $2.3 million. The division signed $95 million in new contracts.
