Zenitel Reports Solid Performance for 2015

Zenitel N.V. (EURONEXT Brussels: ZENT), a leading player in instant and secure audio and data communication, today announced its results for the fiscal year ending 31 December 2015. The comparable figures for 2014 have been restated due to the divestment of the Caribbean company.

• Total revenue amounted to 66.5 million euro, down 1.3 % from 2014.
• EBITDA was 4.9 million euro, up from 4.0 million euro last year.
• EBIT amounted to 2.6 million euro, compared to 2.7 million euro in 2014.
• The divestment of the Caribbean company generated a capital gain of 5.1 million euro.
• The Board of Directors will propose to the General Assembly to pay a one-time dividend to the shareholders of 0.15 euro per share (gross) related to the divestment of the Caribbean company.
• Net profit was 7.3 million euro, against 2.2 million euro last year.
• Net financial cash position of 15.8 million euro at the end of the year, compared to 7.5 million euro at the end of 2014 and provisions are down to 4.1 million euro compared to 4.3 million euro in 2014.

Kenneth Dastol, CEO of Zenitel, commented:

“At the end of 2015, Zenitel successfully closed the divestment of its Caribbean company to the Curacao Growth Fund (CGF). The transaction is in line with Zenitel’s strategy to focus on the further profitable growth of its Vingtor-Stentofon core business. The recurrent EBITDA from this Caribbean company was 1.3 million euro in 2013 and 2014.

As a result of the divestment of the Caribbean company, the Board of Directors will propose to the General Assembly to pay a one-time dividend of 0.15 euro per share (gross).

The European and global economic environment has remained unchanged in 2015. At the end of 2014, the world experienced an important drop in oil prices and this trend continued in 2015. Most actors have reduced significantly their investments in the Oil and Gas markets.

These reduced investments in the Oil and Gas industry have also impacted Zenitel’s business, hence a small decrease on our top line figures (- 1.3% compared to 2014). However, as our strategy is to focus on several business markets, we have been able to partly offset the reduced activity in the Oil and Gas markets with increased business in the Building Security and Public Safety markets.

Under these challenging circumstances, the commitment of our customers and partners around the world and the dedication of our employees, have allowed Zenitel to continue delivering profitable growth figures.

A remark on our reporting methodology: the technology is moving faster and faster and as a result of this we have decided to expense all R&D costs directly into the P&L from the beginning of 2016.

The outstanding capitalized product development expenses will be amortized in accordance with the current amortization policies. Therefore, all intangible assets related to the investments in products will be amortized down to zero in the period 2016 to 2018.

The global economic environment will remain challenging in 2016, especially in the Oil & Gas markets. We will stay focused on our strategy and continue to optimize our organization.”