Q1 Report (1 January-31 March 2001)

DORO Q1 Report (1 January-31 March 2001) * Net sales totalled SEK 278 million (SEK 347 m) * Loss before tax of SEK 26 million (SEK +12 m) * EPS after standard tax SEK -2.68 (SEK 0.82) * End of components shortage near * Gunnar Åkerblom is the new CEO * AGM authorizes Board to carry out new share issue of SEK 75 - 100 million. Sales and results DORO, the telecommunications company listed on the O-list of the OM Stockholm Exchange, recorded sales of SEK 278 million (347 m) in Q1, a decline of 20% compared with the same period last year. The Group made a loss before tax of SEK 26 million (12 m). Demand has been flat on most of the markets. The dollar has risen over the quarter and had a negative impact on margins. End of components shortage near At the end of 2000 various signals appeared suggesting that the end of the components shortage was in sight. A good supply of products exists for delivery in the second half of 2001. Chip manufacturing capacity is expanding. The French business has seen normal product supply since the start of the year. Several other countries have been hit by disruptions to product supplies during Q1. One major supplier has gone bankrupt. The product supply will gradually improve over the coming quarters. Stronger dollar The dollar continued to strengthen from the start of 2001. A majority of DORO's products are bought in US dollars and sold in other currencies. The purchase price usually drops for each different product. The price reduction level has usually absorbed the higher USD exchange rate. The rising US dollar rate has only been marginally compensated for in higher sales prices. In accordance with its currency policy, DORO hedges a limited amount of US dollars (for price commitments longer than six months). DORO's board has decided to change the currency policy. To reduce the risk level, 50% of the US dollar flows will also be hedged for the coming six months' sales. Gunnar Åkerblom new CEO Gunnar Åkerblom has been appointed CEO and will take up his position on 7 May. He is 50, has an M.E. and was previously CEO at Heidelberg Nordic, a German group in the graphic media industry. His previous jobs include positions at Atlas Copco, both in Sweden and abroad as well as CEO of the Byggman Group in the construction machinery sector. He was voted onto DORO's board on 14th March. New issue The work to restore DORO's financial position following strong expansion in recent years is progressing via capital rationalisation and profit improving measures. The AGM authorized the board to carry out a new share issue, of SEK 75 - 100 million, to enable the company's future growth. Restructuring scheme and concentration During the year an efficiency scheme continued at all the companies in the Group. This included completing a rationalisation scheme whereby the number of products in the Group will be reduced by 30% during 2001. Further cost-cutting measures will be implemented in all areas of the Group and the headcount continued to fall. The market The market was flat during Q1 with lower demand on most markets. Several new wireless DECT telephones were introduced at the Cebit fair in Hanover, Germany. A lot of interest was shown in the Mini DECT 8075 and 8085. A new DECT, the 6075, aimed at the business sector, was also introduced. DORO also introduced a new corded telephone series, the Afti and AL. The new Congress range was launched for the business sector as well. UpGrade introduced a number of new products including a new range of antennas. In January an agreement was signed with Swyx of Germany, concerning distribution of their IP exchanges. The launch of the new Dect-office began during Q1. It is a cordless system connected to a smaller exchange. Sales per region and product line Strong improvements in sales were noted in France, Finland and at UpGrade. Sales of telephony products have been lower due to the product supply problems and weak demand. Last year part of the Norwegian business was sold. DORO is mainly active in the following product sectors: cordless telephones, terminal products, switchboards, and wireless broadband products. The largest proportion of sales is in cordless telephones (50% of sales), followed by terminal products (30%) . The proportion for company switchboards and wireless broadband products is 10% each. Wireless broadband products increased most in relative terms and in terms of value. Financial performance and investments The Group's balance sheet total has fallen by SEK 80 million to SEK 644 million since the start of the financial year. Investments amounted to SEK 2 (1 m). Goodwill stood at SEK 67 million (94 m). The Group's net debt (interest-bearing liabilities less cash) has risen by SEK 43 million to SEK 243 million since the start of the year. The debt/equity ratio has gone up from 1.51 to 1.98. Stock has increased due to lower sales than planned, long lead times and rising exchange rates. Options The major shareholder, RunDor, sold its call options in January to 35 senior executives, totalling 280,000 shares. Parent company The parent company's net sales totalled SEK 5 million (7 m). The loss before tax was SEK 19 million (SEK +14 m). Future reports The Board has decided on the following dates for the coming year's quarterly reports: 16 July, 17 October 2001, and 23 January 2002. The AGM will be held on 5 March 2002. Quarterly reports can be found on DORO's website at: www.DORO.com. This interim report has been composed using the same accounting principles as the most recent Annual Report and has not been subject to checking by DORO's auditors. For further information please contact: Chairman of the Board, Lars-Olof Hjalmar on +44 70 585 19 20 or Acting CEO, Ingvar Karlsson, on + 46 46 280 50 62 Lund 17 April 2001 The Board of Directors, DORO AB REPORT FOR QUARTER 1 2001 INCOME STATEMENT (SEK m) [REMOVED GRAPHICS] KEY FIFURES [REMOVED GRAPHICS] EPS after taxes last 12 months -7,73 Kr. SUMMARY OF BALANCE SHEET (SEK m) [REMOVED GRAPHICS] SHAREHOLDERS EQUITY (SEK m) [REMOVED GRAPHICS] SUMMARY OF CASH FLOW (SEK m) [REMOVED GRAPHICS] QUARTERLY EARNINGS TREND, (SEK m) [REMOVED GRAPHICS] Sales per region, (SEK m) Jan-Mar Jan-Mar 2000 1999 2001 2000 Nordic 110 130 575 553 Other Europe 135 178 666 475 Outside 33 38 213 155 Europe Total 279 347 1454 1183 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/04/17/20010417BIT00850/bit0001.doc http://www.bit.se/bitonline/2001/04/17/20010417BIT00850/bit0001.pdf

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Doro markets telecommunications products under the trademark Doro. Source: Delphi