Interim report for the six months ended October 31, 2009

Healthy demand for new broadband products

• Thrane & Thrane recorded healthy demand for the company's broadband communication products in the second quarter of the financial year.
  
  
• Sales of new products to both the land mobile and the aeronautical markets recorded growth. Similarly, systems revenue increased considerably.
  
  
• In the maritime market, the company also generated improved sales of the new FleetBroadband products. However, the market continued to be influenced by the general economic downturn.
  
  
• Revenue for the six months ended October 31, 2009, the first half of the financial year, was DKK 481 million compared with DKK 604 million in the same period of last year.
  
  
• EBIT was DKK 36 million (DKK 73 million), equal to an operating margin of 7.5% (12.1%).
  
  
• Cash flows from operating activities increased to DKK 142 million (DKK 79 million), and the free cash flow from operating and investing activities excluding acquisitions and financing increased to DKK 90 million (DKK 21 million).
  
  
• For the 2009/10 financial year, we still expect revenue of around DKK 1,000–1,200 million (DKK 1,235 million) and an operating margin of 7–12% (12.1%).

“Our new products are selling well – in spite of the generally cautious market sentiments. This shows that our strategy is the right one,” said CEO Walther Thygesen. “We see increasing demand for high data speed communication solutions in all markets. We continue to spearhead technological developments, and we are experiencing strong demand for our new products.”

“Like other companies, Thrane & Thrane is affected by the economic environment, but we have been quick to adjust costs. Our equity is strong, and our liquidity is sound,” said Walther Thygesen, commenting on the interim report.