Revenue grew 12 per cent, to NOK 485.7 million, in the first quarter of 2007 compared to the same period in 2006. Profit before tax was slightly reduced, but the profit rate was better than average for the full year 2006. Kitron is considering various opportunities for expansion to be able to serve both current customer requirements and gain market share.

Enclosed in pdf are the interim report and the presentation.

7 May 2007
Kitron ASA

Key items
Figures in brackets refer to the first quarter of 2006 unless otherwise stated.

Profit before tax slightly reduced
NOK 15.7 million (NOK 16.1 million). Profit before tax amounted to 3.2 per cent (3.7 per cent), compared to average 2.7 per cent in 2006.

Robust revenue growth (12 per cent)
NOK 485.7 million (NOK 433.1 million). The revenue growth is in line with Kitron’s stated expectations.

Reduced gross margin
Gross margin was 37.7 per cent (39.8 per cent) i.a. because of competitive considerations, mainly in Microelectronics.

Increased operating profit
EBITDA and EBIT were NOK 28.9 million (NOK 27.1 million) and NOK 21.4 million (NOK 20.6 million) respectively, reflecting the revenue growth.

Good order intake
NOK 461 million (NOK 478 million). The order backlog at the end of the quarter was NOK 934 million (NOK 826 million), and amounted to about six months’ revenue.

Cash flow
Cash flow from operations in the first quarter was NOK –68.6 million (NOK –73.9 million), mainly because of disbursed payments to vendors and an increase in inventory.