SFC Smart Fuel Cell AG: Continued strong growth and consistent result improvements

SFC Smart Fuel Cell AG / Quarter Results

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- In Q1/08 first-ever positive result after taxes in corporate history
- Again strong growth in Sales Q1/08: Plus 37 percent compared to Q1/07
- Gross margin improved to 18.9 percent

Brunnthal, April 21, 2008 – In the first three months of 2008 SFC Smart Fuel Cell AG, technology and market leader for mobile and off-grid power solutions based on fuel cell technologies, continued to grow successfully and further increased margins.

Sales increased once again, this time by 37% to €4,606k (Q1/07: €3,355k). Not yet contained in Q1 sales is the U.S. Air Force order of 521 SFC Power Managers, which will be delivered as of the second quarter.
The Q1/08 EBIT, which stood at minus €411k (Q1/07: minus €2,015k), exceeded the expectations significantly. Adjusted by the special effect of the IPO-related redemption of stock options in the amount of €970k in Q1/07, EBIT improved by 61% compared to previous year. This EBIT improvement is mainly attributable to the volume growth achieved, the continued success with the systematic implementation of product cost-saving measures and income from the measurement of open dollar and platinum forwards in the amount of €255k. At 18.9%, the gross margin also rose again, outstripping the 6.2% gross margin from Q1/07 by a substantial 12.7 percentage points.
Thanks to this positive development and positive net interest income of €558k, SFC posted a net profit of €147k in Q1/08, the company’s first-ever positive result after income taxes (Q1/07: minus €997k).
Cash totalled €49,413k as of March 31, 2008 (December 31, 2007: €52,945k), which topped the goals set for cash flows and working capital.
A total of 1,783 EFOY systems were sold in O1/08 (Q1/07: 1,371), an increase of over 30%. 91 percent of the EFOY systems were sold into the leisure market (motor homes). Here, especially the French and Italian markets continued to develop positively. In addition, SFC marked first clear sales successes in Great Britain, where the EFOY fuel cell had been introduced in the second half of 2007. In the industrial markets of mobile off-grid security and traffic applications SFC further strengthened its market position by receiving the first lot order from an U.S. federal agency and by further market development, especially in Southern and Northern Europe. Here, the Company was able to place several pilot applications. In the field of defense, SFC was awarded the first commercial order for portable fuel cells for €359k in the first quarter of 2008. Ordering customer is a Western-European defense organisation that will use the SFC fuel cell systems in an international peace-keeping mission. In addition, the first three 250W pilot series systems (FC 250) were delivered to the U.S. Army Test and Evaluation Center (ATEC) and to the German Bundeswehr.

At March 31, 2008, SFC Smart Fuel Cell employed a staff of 97 (March 31, 2007: 75 employees).

With this positive business development, SFC consistently continues on the path towards achievement of break-even in the 2008 business year, based on continued aggressive growth of at least 50 percent compared to previous year and continuation of product cost reduction. From today’s perspective, however, Management still sees a risk that this target may not be completely reached on EBIT basis, due to the continuing increases in the cost of raw materials (e.g. for the platinum used in the stack). In addition, a slowdown of sell-through rates observed over the last weeks and, associated with this, a slowdown of the growth in the leisure market might turn into a growth hindrance.

About SFC Smart Fuel Cell AG

SFC Smart Fuel Cell AG (www.sfc.com) is market leader in fuel cell technologies for mobile and off-grid power applications serving the leisure, industrial and defense markets. As one of Germany’s technology pioneers, SFC has won numerous innovation awards. SFC has alliances with leading companies in a wide range of industries. Unlike most other fuel cell manufacturers, who are in the research and development phase or run subsidized demonstration projects, SFC has shipped fully commercial products to industrial and private end users for four years, and has created a convenient fuel cartridge supply infrastructure. SFC is DIN ISO 9001:2000 certified.

SFC Investor Relations:

Barbara v. Frankenberg 

Investor Relations Manager

SFC Smart Fuel Cell AG

Eugen-Saenger-Ring 4

D-85649 Brunnthal 

Tel. +49 89 673 592 378

Fax. +49 89 673 592 369

Email: [email protected]

Web: www.sfc.com

21.04.2008  Financial News transmitted by DGAP

Language:     English
Issuer:       SFC Smart Fuel Cell AG
              Eugen-Saenger-Ring 4
              85649 Brunnthal
Phone:        +49 (89) 673 592 - 100
Fax:          +49 (89) 673 592 - 169
E-mail:       [email protected]
Internet:     www.sfc.com
ISIN:         DE0007568578
WKN:          756857
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, München, Düsseldorf, Stuttgart  
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