EANS-News: Basler AG / Second quarter better than expected - incoming orders continue increasing

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Financial Figures/Balance Sheet

Ahrensburg (euro adhoc) - Continued increasing demand for digital
cameras Incoming orders: EUR 17.8 million (previous year: EUR 6.8
million, +163 %) Sales: EUR 13.3 million (previous year: EUR 8.1
million, +64.3 %) Pre-tax earnings: EUR 1.7 million (previous year:
EUR -4.9 million, EUR +6.6 million) Free cash flow: EUR 0.6 million
(previous year: EUR -0.8 million, EUR +1.4 million) Forecast for 2010
increased after publication of preliminary figures on July 13

Ahrensburg, August 05, 2010 - The second quarter was successful and
better than expected for Basler AG. Incoming orders and sales were
distinctly above the previous year's and the previous quarter's
figures. The pre-tax earnings turned out solidly positive. We made
further progress in streamlining our product portfolio by sellling
our product line for the inspection of solar wafers. The pre-tax
return of more than 12 %, reached in the reporting period, clearly
shows that the strategic focusing that was started in 2009 is
proceeding successfully.

The group´s sales amounted to EUR 13.3 million in the second quarter
which is 64.3 % above the previous year´s figure of EUR 8.1 million.
In the second quarter of 2010, Basler achieved a result before taxes
(EBT) for the group of EUR 1.7 million. This corresponds to an
increase by EUR 6.6 million above the previous year's value of EUR
-4.9 million that was strongly influenced by special items. The
earnings before interest and taxes (EBIT) for the "Components"
business segment amounted to EUR 3.2 million (previous year: EUR 0.4
million, EUR +2.8 million). The "Solutions" business segment reached
an EBIT amounting to EUR -0.1 million (previous year: EUR -3.6
million, EUR +3.5 million). At a pre-tax return of 13 %, Basler AG
reached the zone of a return of >10 % in the second quarter of 2010,
as desired by the Management Board for the medium term.

The operating cash flow amounted to EUR 2.0 million in the second
quarter (previous year: EUR 0.8 million). The free cash flow amounted
to EUR 0.6 million, and thus increased by EUR 1.4 million (previous
year: EUR -0.8 million). At the end of the reporting period, liquid
assets amounted to EUR 5.3 million and thus decreased by EUR 1.4
million compared to the end of the comparison period (-25 %).
Compared to December 31, 2009, the funds available declined slightly
by EUR 0.2 million.

Basler AG realized sales in the second quarter of 2010 in the
"Components" business segment, amounting to EUR 10.7 million. The
revenue from digital cameras for industry and for video surveillance
increased in the reporting period by 91 % (previous year: EUR 5.6
million), marking a new record level. Due to decreased production
costs and positive exchange rate effects the gross margin also
developed positively. With the business segment's earnings before
interest and taxes in the second quarter of EUR 3.2 million (previous
year: EUR 0.4 million, EUR +2.8 million) the business segment
demonstrated its solid profitability. At EUR 13.3 million, incoming
orders reached a new record level, surpassing the record-setting
preceding quarter. Incoming orders increased by 117 % in the
reporting period, compared to the previous year's value of EUR 6.1
million.

We recorded sales revenues in the second quarter amounting to EUR 2.6
million (previous year: EUR 2.5 million, +4 %) in the "Solutions"
business segment. Accordingly, we recorded increasing sales for the
first time after seven consecutive quarters with declining revenue.
As announced in the quarterly report for the first quarter of 2010,
the positive sales trend and a distinctly declined cost level
compared to the previous year, result in improved key figures. The
earnings before interest and taxes for the segment amounted to EUR
-0.1 million and thus improved by EUR 3.5 million compared to the
previous year (EUR -3.6 million). The gross margin was still below
the previous year's value due to the sales structure. Personnel
expenses decreased by 26 % in absolute terms compared to the previous
year. At EUR 4.5 million, the incoming orders were in the reporting
period again on the level of the fourth quarter of 2009. This is an
expression of the high demand in the LCD industry that will continue
in the following quarters from today's perspective. The demand for
solar thin film inspection solutions continued to be very weak in the
reporting period. We sold our product line for the inspection of
solar wafers to Semilab Zrt., based in Budapest, Hungary. Semilab
Zrt. is a technologically leading global company in the field of
measurement technology for the semiconductor and photovoltaic
industry. The transfer of assets to Semilab Zrt. was concluded within
the course of the reporting period.

Outlook The recovery of the general economic conditions continued in
the second quarter of 2010. The economic research institutes
currently expect the positive trend to continue at least until the
end of the third quarter. Afterwards, risks persist for a temporary
economic slowdown. In its current forecast for the German image
processing industry, the German Engineering Federation (Verband
Deutscher Maschinen- und Anlagenbau) assumes a growth in sales for
2010 amounting to +10 % compared to the previous year.

Basler AG clearly surpassed its own business planning in the second
quarter. The main reasons were the dynamically growing components
business and the improved profit situation in the solutions business.
The Management Board assumes that the components business will
develop positively also in the second half-year, gaining double-digit
growth rates compared to 2009. We continue to expect approximately
stable sales revenues for our solutions business compared to the
previous year.

Based on the preliminary results for the second quarter and assuming
a continuous business development, the Management Board increased the
forecast for fiscal year 2010 on July 13, 2010, and has since been
expecting sales revenues within a corridor of EUR 43 to 45 million
(previous forecast: EUR 39 to 41 million; previous year: EUR 33.5
million) and pre-tax earnings not below EUR 3.5 million (previous
forecast: > EUR 1.5 million; previous year: EUR -8.0 million).

end of announcement euro adhoc
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ots Originaltext: Basler AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Maren Schuster

Investor Relations

Telefon: +49(0)4102 463-100

E-Mail: ir@baslerweb.com

Branche: Semiconductors & active components
ISIN: DE0005102008
WKN: 510200
Index: CDAX
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