HAMBURG, Germany and OXFORD, England, February 3 /PRNewswire-FirstCall/ -- Evotec OAI AG (Frankfurt Stock Exchange: EVT, TecDAX30) today reported preliminary financial results for the fourth quarter and the full year 2004.
Evotec OAI exceeds its 2003 revenue and EBITDA in the fourth quarter 2004. Based on unaudited accounts and compared to the same period in 2003, Q4 revenues of the Evotec OAI group increased by 23% to EUR 25.3m (2003: EUR: 20.5m). This translates into full year 2004 revenues of EUR 72.7m (2003: 77.2m), in line with previous Company guidance of EUR 70 to 75m (see announcement of 20 October 2004).
Based on the October revenue guidance, Evotec OAI had anticipated achieving full year earnings before interest, taxes, depreciation and amortisation (EBITDA) between EUR (4)m and (7)m. Preliminary results suggest that EBITDA will be slightly better than previously guided, in the region of EUR (3.5)m (2003: EUR 4.1m). At constant (2003) exchange rates, 2004 EBITDA would have been around break-even. EBITDA for the fourth quarter was in the region of EUR 2.6 (Q4 2003: EUR 0.6m).
"Evotec OAI's strong performance in the fourth quarter is very creditable. It emphasises the underlying competitive strength of Evotec OAI. 2004 had been a difficult year for the contract research industry. Continued emphasis on cost control by pharmaceutical companies and soft financial markets for our biopharmaceutical customers capped our top line growth. In addition, the combination of a weak US-Dollar and a strong GBP-Sterling had a continued strong impact on our margins. Both trends masked our strong underlying operational performance. Under these circumstances, we are proud to have attracted substantial business with established and many new customers with widespread deal flow across all areas of discovery and development and to have further gained market share for contract research services," said Dirk Ehlers, Chief Financial Officer of Evotec OAI. "Our instrument business Evotec Technologies, which was not as significantly exposed to currency fluctuations, had a very successful 2004. The company increased margins and sales with new products and customers and more than compensated one large order from Pfizer in 2003."
At 31 December 2004, Evotec OAI's position in cash and marketable securities amounted to EUR 15.3m. The strong December business has led to high receivables of EUR 16.3m which are expected to reduce to the historical average and convert into cash at the beginning of 2005.
All numbers reported today are unaudited and preliminary. Evotec OAI will release its audited consolidated financial statements on 22 March 2005.
About Evotec OAI AG
Evotec OAI is a leader in the discovery and development of the next generation of novel small molecule based drugs through both contract research partnerships and discovery programmes for out-licensing. The Company provides innovative solutions from Target to Clinic through an unmatched range of integrated capabilities ranging from assay development and screening through to medicinal chemistry and drug manufacturing. As a result, Evotec OAI has established itself as the partner of choice for pharmaceutical and biotechnology companies worldwide. With over 600 people located in Hamburg, Germany and near Oxford, UK, Evotec OAI is committed to generate value to its partners, shareholders and employees through a sustainable strategy that balances short-term and long-term business opportunities.
For further information please contact:
Dr. Dirk H. Ehlers
Chief Financial Officer
Evotec OAI AG
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