OCE Reports Results for Q1 2011

Océ reports small net loss over Q1 2011

Highlights first quarter (ended 31 March 2011):

• Net loss: € - 6 million (2010: € - 87 million)

• Normalized operating income: € 5 million (2010: € 15 million)

• Total revenues - 1% to € 638 million (2010: € 647 million)

• Organically: non-recurring revenues - 5%; recurring revenues - 3%

• Cooperation with Canon delivered first joint innovation

• Change of financial year, effective 1 January 2011

Comments by Rokus van Iperen, Chairman of the Executive Board:

‘Océ had a challenging first quarter as revenues decreased due to a decline in two market segments. Cutsheet revenues were impacted by weaker printroom sales and portfolio changes. Technical documentation revenues were affected by the ongoing crisis in construction markets. We have addressed these revenue developments by strengthening our support for sales companies and by stringent cost control.

Océ achieved favorable revenue development in two other market segments. In continuous feed printing, Océ boosted its market leadership due to continued revenue growth, benefiting from printer sales of particularly the Océ JetStream series. In display graphics printing, sales grew due to the highly successful Océ Arizona series. In business services, revenue development was stable.’

Here’s the portion of the results report that talks about how OCE’s “WFPS” Division did:

Wide Format Printing Systems (WFPS)

Compared to the first quarter of 2010, WFPS printer sales showed some recovery, mainly driven by increased sales of display graphic systems. Printer sales for construction and engineering purposes were impacted by challenging market circumstances. In the US, Océ expanded its wide format dealer network, benefiting from a change in the competitive environment.

In the quarter, Océ introduced an innovative wide format printer, the Océ ColorWave 600 Poster Printer, built with Océ CrystalPoint imaging technology, targeting the international screen printing markets.

Revenues in WFPS amounted to € 175 million. Organically, revenues declined by – 1%. The share of color increased to 53% (2010: 45%).

Non-recurring revenues amounted to € 64 million. Organically, revenues increased by 4%. Growth was driven by both North America and Europe.

Recurring revenues amounted to € 111 million. Organically, recurring revenues declined by – 4% mainly due to decreasing click volumes on technical documentation systems.

Normalized operating income decreased to € 1 million (2010: € 8 million), reflecting the decline in recurring revenues.

To read the complete Q1 2011 results report, click on this link; doing so should enable you to download the results report file. If it doesn’t work, then visit OCE’s web-site to access the report.

https://docs.google.com/leaf?id=0B81al4kFAU9JZDdjZmE5M2UtYWMwNS00YmNjLTljZDctOGFmZWYzY2JkNWQy&hl=en