euro adhoc: Strategic management decisions
ComBOTS decides on realignment
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
25.09.2007
Karlsruhe, September 25, 2007: Executive board and supervisory board of ComBOTS AG have decided today to discontinue the further development of their free-of-charge digital communication product as it is currently set up and to undertake a realignment of the company.
Background of the decision to discontinue the further development of the service is the unsatisfying market acceptance and self-distribution of the service since the end of the BETA-phase and the introduction of the 1.0 version mid March 2007. The company´s efforts to bring the service to market through marketing efforts and functional enhancements in Q2 and Q3 have not shown sufficient results. The company has now, as already announced in the semi-annual financial report, evaluated the future perspective of the service towards the end of Q3. Based on the information now available, the company has come to the conclusion, that there are no adequate prospects to continue the development of the product as it is currently set up.
In parallel to discontinuing the development of the communication service, the company will undertake a restructuring initiative regarding the adaptation of the internal and external development resources assigned to the project, as well as regarding the existing capacities to operate the service and its business organization. The company further evaluates, how, or if at all, the communication service itself will be offered in the future.
Target of the company is, based on the taken steps, to significantly reduce the current cost structure per quarter of 6.5 mln. Euro cash effective costs and 2.4 mln. Euro depreciations.
In line with the restructuring steps taken, the company expects one-time, extraordinary, non-cash effective depreciations of 7.5 mln. Euro and cash-effective, one-time costs of 2.4 mln. Euro. The company plans to conclude the restructuring largely in Q4 2007 and expects a significant reduction of the cost basis already in Q4 2007.
After conclusion of the restructuring measures, in fiscal year 2008 a positive annual result between 1.0 and 2.0 mln. Euro should be achieved, taking into account potential future product development efforts, as well as regular quarterly depreciations of only 0.4 mln. Euro and the company´s financial result.
Explanations: Since the sale of the portal business, WEB.DE, in October 2005 the company has pursued a dual corporate strategy. On the one hand, the company has a 9.27% shareholding in the United Internet Group and hence participates in the growth and success of one of the leading German Internet conglomerates with offerings in the fields of portal, e-mail, DSL, web-hosting and online advertising. On the other hand, the company has invested in the development of the business unit "Personal Digital Communication".
The substance of the company was further strengthened despite the investment and the very restrained start of the business unit "Personal Digital Communication" thanks to the dual strategy implemented in 2005. With unrealized gains of more than 165 mln. Euro since start of the investment until August 31, 2007 the shareholding in United Internet fully met with the set expectations.
Together with the investment in United Internet the company had liquid assets (including tradable securities) of 462.4 mln. Euro on August 31, 2007.
The company plans to continue the development and operation of online services with a focus on digital communication.
end of announcement euro adhoc 25.09.2007 09:38:24
Further inquiry note:
Investor Relations:
Silvia Teschner
Tel. +49 721 5160 2701
investor.relations@combots.com
Public Relations:
Oliver Schwartz
Tel. +49 721 5160 2221
public.relations@combots.com
Branche: Online
ISIN: DE000CMBT111
WKN: CMBT11
Index: Prime All Share, CDAX, Technologie All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade
Börse München / free trade