BILLINGSTAD, NORWAY – Top 40 EMS firm Kitron reported first-quarter revenue fell 25.4% to NOK 411.1 million. Lower demand for defense (down 25.5%) and marine (81.5%) products were partially offset by higher demand for data/telecom, industrial (up 8%) and medical (up 21.9%).

The pretax profit was NOK 3 million, down 88%, and the net loss was NOK 2.8 million, down 70%.

Some NOK 14 million of losses were tied to the firm’s subsidiary in Karlskoga Sweden, NOK 6 million in restructuring costs.

Orders rose 12.9% compared with last year to NOK 406.7 million. Cash flow from operations was a loss of NOK 31.7 million.

Gross margin decreased 100 basis points to 35.8%. Net margin decreased 80 basis points to 21.9%. Inventory turns fell 0.3 turns to 4.7.

The company will establish an operation in North America to be able to serve its customers on a global basis.

“While the activity level in first quarter 2010 is lower than the same period in 2009 we see a stable trend toward improved market conditions quarter by quarter. Sales and marketing activity is high, and there is an increase in the value of pending prospects,” Kitron said. The company expects to return to profitability in the June quarter.

• Prev
• Next