Data Respons implements efficiency initiatives

The Board of directors in Data Respons has decided to implement a series of efficiency initiatives to meet the changed market conditions and strengthen the company's long-term profitability. The initiatives will affect the 2nd quarter with one-off costs of NOK 35 million. This is done to increase the company's efficiency and maintain the strong position within the embedded market, which is expected to continue as a strong growth market in the coming years.
The one-offs in the 2nd quarter are mainly related to efficiency initiatives within the Danish operation, reduce workforce overcapacity within the group, as well as accruals for expected losses on trade receivables and extraordinary costs related to completion and delivery of large solutions projects.
During the second half of 2009 the company will:
-    Strengthen the international sales- and supply-chain management within the company's growing solutions segment
-    Implement further cost efficiency initiatives in completion and deliveries of solution projects
-    Strengthen the capacity and competency within project management
-    Continue and enhance activities to reduce the general cost level
The company expects that the initiatives described above will result in a cost reduction of approx. NOK 40 million on an annual basis with full effect from the 4th quarter 2009. In addition, these initiatives are expected to contribute to maintaining the long-term growth target of 20 %.
Revenues for the 2nd quarter are expected to be in the area NOK 170 to 180 million, with an EBITDA of approx. NOK 0 to -2 million before one-off costs. The weak quarter compared to last year is mainly due to lower services revenue and capacity utilisation as a result of the slowdown in the market. Based on implemented improvements and outlook, the company is expecting a positive EBITDA in the 3rd and 4th quarter. The company has a solid order reserve and also unused credit facilities of NOK 80 million.
In light of the situation described above, the company will performed an impairment test of recorded goodwill when preparing the quarterly figures. Any impairment will not affect the EBITDA, cash flow, or the unused credit facilities of NOK 80 million.
The company considers the conditions for maintaining the long-term growth to be good. Within the company's largest business segment, Data Respons has a strong position as a complete solutions provider and strategic partner to our customers. With the implemented improvements, the company is well positioned to continue the profitable growth in the coming years.
Further details will be given at the presentation of the 2nd quarter, July 10th 2009, at 08.30 a.m. at Vika Konferansesenter.
Kenneth Ragnvaldsen, CEO, Data Respons ASA, phone: +47 67 11 20 00 Mob: +47 913 90 918.
Data Respons` vision is to become leading in Europe within 2010 on Embedded Solutions in the industrial market. Embedded Solutions can be described as being the brains of a machine, system or industrial end product. Data Respons supplies Embedded Solutions to leading OEM companies, system integrators and vertical product suppliers in a range of market segments such as defence, offshore, automation, medical equipment, surveillance, transport, telecommunications and other industries. Data Respons ASA is listed on the Oslo Stock Exchange (Ticker: DAT), and is part of the information technology index. The company has offices in Denmark, Finland, Norway, Sweden and Germany. At the close of the 1sth quarter 2009 the company had a total of 518 employees.
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