Global Graphics reports results for the quarter and the year ended 31 December 2012

GLOBAL GRAPHICS SA, experts in developing e-document and printing software, announces its consolidated results for the quarter and the year ended 31 December 2012.

ANALYSIS OF THE COMPANY’S FINANCIAL PERFORMANCE

Quarter ended 31 December 2012

Comparisons for the quarter ended 31 December 2012 with the last quarter of the financial year ended 31 December 2011 include:

•           sales of Euro 2.5 million this quarter (Euro 2.4 million at Q4 2011 exchange rates) compared with Euro 2.7 million in Q4 2011, or a decrease of 8.0% at current exchange rates, and of 10.4% at constant exchange rates;

•           an operating loss of Euro 0.2 million this quarter, compared with an operating profit of Euro 0.4 million in Q4 2011;

•           an adjusted operating profit (EBITA) of Euro 0.1 million this quarter, compared with an adjusted operating profit of Euro 0.4 million in Q4 2011;

•           a net loss of Euro 0.3 million this quarter (or a net loss of Euro 0.03 per share), compared with a net profit of Euro 0.4 million in Q4 2011 (or a net profit of Euro 0.04 per share); and

•           a nominal adjusted net profit this quarter (or an adjusted net profit of Euro 0.00 per share), compared with an adjusted net profit of Euro 0.4 million in Q4 2011 (or an adjusted net profit of Euro 0.04 per share).

The Company’s consolidated results for the quarter ended 31 December 2012 were unfavorably impacted by a Euro 0.2 million expense resulting from the impairment during the quarter of a development project which had given rise to capitalization in prior periods.

In addition, the comparison of this quarter’s sales with those reported in the last quarter of the year ended 31 December 2011 is adversely affected by the fact that a significant license bulk order, which in 2011 had been received during the quarter ended 31 December 2011, was received in the third quarter of the current financial year, as already highlighted in the earnings release for the quarter and the nine-month period ended 30 September 2012.

Year ended 31 December 2012

Comparisons for the year ended 31 December 2012 with the year ended 31 December 2011 include:

•           sales of Euro 9.7 million this year (Euro 9.1 million at 2011 exchange rates) compared with Euro 9.0 million in the year ended 31 December 2011, or an increase of 8.5% at current exchange rates and of 1.5% at constant exchange rates;

•           an operating loss of Euro 0.3 million this year, compared with a nominal operating profit in the year ended 31 December 2011;

•           an adjusted operating profit of Euro 0.1 million this year, compared with an adjusted operating loss of Euro 0.3 million in the year ended 31 December 2011;

•           a nominal net loss this year (or a net loss of Euro 0.00 per share), compared with a net profit of Euro 0.2 million in the year ended 31 December 2011 (or a net profit of Euro 0.02 per share); and

•           an adjusted net profit of Euro 0.2 million this year (or an adjusted net profit of Euro 0.02 per share), compared with an adjusted net loss of Euro 0.1 million in the year ended 31 December 2011 (or an adjusted net loss of Euro 0.01 per share).