Progress as planned

Regulated information
Kortrijk, Belgium, 20 July 2011 - Barco (Nyse/Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) today announced results for the six month period ended 30 June, 2011.1

First half 2011 financial highlights:

• Orders booked during the first semester amounted to 560.4 million euro, an increase of 8.8% compared to the same period in 2010. Frame agreements are not included in the order intake.

• Barco's order book at the end of June 2011 stood at 479.9 million euro, compared to 513.3 million euro a year earlier.

• Sales for the first semester of 2011 totaled 490.3 million euro, an increase of 33.1% from 368.2 million euro in 1H10.

• Gross profits realized were 147.0 million euro, an increase of 19.5% versus prior year. Gross profit margin was 30.0% in 1H11 versus 33.4% in 1H10.

• EBITDA grew 57.0% to 60.0 million euro for 1H11.

• EBIT realized was 35.0 million euro, an increase of 216% over the same period of 2010. EBIT margin was 7.1% for 1H11 compared to 3.0% for 1H10.

• Net income for 1H11 was 34.0 million euro, up 305% versus 1H10 when net income was 8.4 million euro.

• Net earnings per share were 2.84 euro compared to 0.70 euro in 1H10.

• Free cash flow was minus 12.7 million euro compared to minus 1.8 million euro the year before.

Referring to the results of 1H11 Mr Van Zele, President and CEO, commented: “We continue to make progress on many fronts. Our incoming orders during 1H11 were robust at 560 million euro and shipments at 490 million euro were well in line with expectations.” Mr Van Zele continued by saying that all Barco's operating units delivered positive EBITDA contributions in 1H11 while the company's overall profitability improved encouragingly with an EBIT margin of 7.1% compared to 3% in 1H10.

Mr Van Zele said: “Although Barco's success is still to a large extent carried by the momentum in the Entertainment division and the ongoing strong performance in the Healthcare division, we anticipate that also the Control Rooms & Simulation division as well as the Defense & Aerospace division are gaining momentum and will make steady progress towards their corporate objectives. Also our ventures delivered positive EBITDA contributions.”

Mr Van Zele added that inventories at Barco were still unusually high to cope with anticipated component supply issues in the wake of the earthquake in Japan and the boom for digital cinema projectors and LED-powered cubes. He concluded that inventory levels would be brought back to normal levels by the end of the calendar year.


Sales and order intake

Sales for the semester were 490.3 million euro, a 33.1% year-on-year increase. There was growth in all divisions except for the Defense & Aerospace division. The highest growth was realized by the Entertainment and the Control Rooms & Simulation divisions. The top line of the Healthcare division and the Ventures increased with high single digit figures compared to the same period the year before.

Sales to Europe, Middle East, Africa and Latin America (EMEALA) represented 43% of consolidated sales, while 34% of sales were realized in North America and 23% in Asia Pacific. Compared to 1H10 sales were up 30.4% in absolute numbers in the EMEALA region, while they grew respectively with 34.8% and 36.1% in North America and the APAC region.

Order intake in 1H11 was 560.4 million euro. Compared to the same period the year before this is an increase of 8.8%, carried by the Entertainment and the Healthcare divisions.
In order intake the APAC region realized 29% of total, compared to 34% for North America and 37% for the EMEALA region. The latter region had a decline of 9.2% in orders, while orders in North America and in the APAC region increased with 12.4% and 38.9% respectively.

The order book at the end of June 2011 was 479.9 million euro or 6.5% lower than at the end of June 2010 and 12.4 % higher than at the end of December 2010.

Order book

(in million euro) 1H11 2H10 1H10 2H09 1H09
Order book 479.9 426.9 513.3 331.4 336.7

Gross Profit

Gross profit increased year-on-year by 19.5% to 147.0 million euro from 123.0 million euro. Gross profit margin was 30.0% compared to 33.4% in the same period of the year before and 31.1% in 2H10.


EBITDA was 60.0 million euro compared to 38.2 million euro the year before. EBITDA margin was 12.2% in 1H11 versus 10.4% in 1H10.

ENT 206.5 28.0 13.5%
HC 90.9 17.3 19.1%
CRS 99.6 7.4 7.4%
D&A 53.6 5.4 10.1%
Ventures 40.4 1.8 4.5%
BGS/Elim (0.7)    
Group 490.3 60.0 12.2%


EBIT was 35.0 million euro compared to 11.1 million in 1H10. Research & development cash expenses increased year-on-year in absolute numbers but decreased in percentage of sales: from 33.3 million euro or 9.0% of sales to 39.2 million euro or 8.0% of sales. A similar evolution could be seen with sales & marketing expenses and general & administration expenses. Sales & marketing expenses increased from 52.4 million euro, 14.2% of sales, to 58.3 million euro, 11.9% of sales. General & administration expenses increased from 23.4 million euro or 6.4% of sales to 24.2 million euro or 4.9% of sales.

Other operating result was 5.0 million euro. In 1H10 it was minus 1.4 million euro.

Income Taxes 

In 1H11 taxes were 0 million euro compared to 1.9million euro in 1H10. This was due to the usage of carry forward tax losses for which no deferred tax assets have been set up in the past.

Net Income

Net income for the semester increased to 34.0 million euro from 8.4 million euro for 1H10. Net margin for the semester was 6.9% from 2.3% the year before.

Net earnings per ordinary share (EPS) were 2.84 euro, up from 0.7 euro in 1H10. Fully diluted net earnings per share increased to 2.65 euro from 0.66 euro.

Free cash flow

Free cash flow over 1H11 was minus 12.7 million euro, due to an increase of 47.9 million euro in inventories following the high top line growth. A decrease in trade payables of 27.8 million euro also contributed to negative free cash flow. Gross operating cash flow nevertheless was 57.3 million euro.


At the end of June 2011 Barco had a net financial debt position of minus 24.8 million euro, compared to a net cash position of 21.9 million euro on 30 June 2010 and a net cash position of 8.9 million euro on 31 December 2010. Barco did not acquire any of its own shares in the first six months of 20113 . On 30 June 2011 trade receivables were at 170.7 million euro, down 30.3 million from end December 2010. DSO were at 61 days, compared to 72 days end of June 2010 and 59 days end of December 2010. At 279.8 million euro inventory was 80.2 million euro higher than one year ago. Inventory turns were at 2.2 compared to 2.1 end of June 2010 and 2.3 at the end of December 2010. Trade payables decreased by 27.6 million euro to 97.8 million euro, compared to 125.4 million euro at the end of December 2010. End June 2010 trade payables were 92.4 million euro. Capex for 1H11, excluding capitalized development, was 7.5 million euro, compared to 5.9 million euro the year before.


Entertainment division

Order intake in the Entertainment division increased by 16.4% from 229.2 million euro in 1H10 to 266.8 million euro in 1H11, with a positive contribution from all three businesses: digital cinema, projection and image processing. Order intake for the division was strong in North America with 26.1% growth and even stronger in the APAC region with a growth of 78.1%. The EMEALA region on the other hand had a decrease of 32.1% due to a very strong order intake in digital cinema in 1H10. Frame agreements are not included in the order intake.

Sales in the Entertainment division increased by 87.4% to 206.5 million euro in 1H11 from 110.3 million euro in 1H10. All three businesses contributed to this growth and so did all three regions: EMEALA added 55.1% to its top line of 1H10, North America 130.6% and the APAC region 89.8%. Projection performed strongly in the events market and made a new entry into the corporate AV market.

EBITDA for 1H11 was 28.0 million euro compared to 15.5 million euro in 1H10, an increase of 80.8%. The EBITDA margin decreased from 14.0% to 13.5% year-on-year.

Healthcare division

The Healthcare division realized an order intake of 98.8 million euro in 1H11. This is an increase of 20.3% compared to 82.1 million euro order intake of the same period the year before. Growth in the APAC region was 40.0% and in EMEALA it was 25.4%. North America realized an increase of 11.7%.

With 90.9 million euro sales versus 83.8 million euro in 1H10, the Healthcare division realized an increase of 8.5% year-on-year. Top line remained flat in North America and the APAC region. The EMEALA region however, increased its top line with 17.8%. The Fimi acquisition (end December 2009) has now been fully integrated and synergies are yielding important wins for custom products. Strategic efforts in new segments such as dental imaging and digital pathology result in first important contracts.

EBITDA for 1H11 was 17.3 million euro compared to 14.9 million euro in 1H10, an increase of 16.7%. The EBITDA margin increased from 17.7% to 19.1%.

Control Rooms & Simulation division

Global order intake in the Control Rooms & Simulation division decreased by 3.9% from 107.8 million euro in 1H10 to 103.6 million euro in 1H11. Traffic, surveillance and monitoring however, increased its order intake, carried by all three regions, while simulation contributed negatively, due to an exceptionally strong order intake in 1H10.

Sales in the control Rooms & Simulation division increased by 24.3% from 80.1million euro in 1H10 to 99.6 million euro in 1H11, with sizeable growth in both traffic, surveillance and monitoring and in simulation. Except for simulation in North America, all three regions contributed to the increase in top line of the two businesses.

EBITDA for the semester was at 7.4 million euro, a 7.4% EBITDA margin, compared to 5.1 million euro in 1H10, a 6.4% margin.

Defense & Aerospace division

In 1H11 global order intake for the Defense & Aerospace division was down 9.3% from 51.8 million euro to 47.0 million euro. Only the EMEALA region increased its order intake (by 20.5%). A first large order in the defense land based market was signed in the UK. Defense performed positively in the APAC region and so did Aerospace in the EMEALA region.

Global sales decreased by 8.9% from 58.9 million euro to 53.6 million euro. The EMEALA region grew its top line by 13.0% with a strong contribution of Aerospace. The other two regions contributed negatively, although Defense realized sizeable growth in North America.

EBITDA for the semester was at 5.4 million euro, a 10.1% EBITDA margin, compared to 8.5 million euro in 1H10, a 14.4% margin.


Order intake for the ventures in 1H11 was 44.4 million euro, a decrease of 3.0% from 45.8 million euro in 1H10, fully due to weak order intake in the APAC region. Order intake increased marginally in the EMEALA region, but more strongly in North America, mainly thanks to the LED business.

Global sales increased by 7.7% from 37.5 million euro to 40.4 million euro, with contributions from the EMEALA region and North America. All of the ventures realized growth in these two regions.

EBITDA for the semester was at 1.8 million euro, a 4.5% EBITDA margin, compared to minus 5.8 million euro in 1H10, a negative margin of 15.4%.


The following statements are forward looking and actual results may differ materially.

Although Barco's progress has recently been carried predominantly by the growth momentum in the Entertainment and Healthcare divisions, management believes that all other divisions are well on the way to realize their corporate objectives.

Even though growth in digital cinema will begin to level off in coming quarters, Barco's progress is sustainable.

Barring any unexpected macro-economic turmoil 2011 will be a good year for Barco.


Barco will host a conference call with investors and analysts on 20 July 2011 at 9:00 a.m. CET (3:00 am EST), to discuss the results of 1H11. Eric van Zele, CEO, Carl Peeters, CFO and JP Tanghe, IRO, will host the call.

An audio cast of this conference call will be available on the Company's website by 12:30 p.m. Brussels time (6:30 a.m. EST).


Barco, a global technology company, designs and develops visualization products for a variety of selected professional markets. Barco has its own facilities for Sales & Marketing, Customer Support, R&D and Manufacturing in Europe, North America and Asia Pacific. Barco (NYSE Euronext Brussels: BAR) is active in more than 90 countries with about 3,500 employees worldwide. Barco posted sales of 897 million euro in 2010.

For more information and the full report “6 month period ended 30 June 2011”, please visit the Company's website at


1 See 2Q11 trading update in annex 2.
2 See new reporting structure in annex 3
3 The company now owns 737,963 of its own shares or 5.78% before dilution. The acquisition of own shares program started in 2003.

For more information, please contact

JP Tanghe JP Tanghe
Senior Advisor to the CEO - Compliance Officer
Barco NV

Telephone +32 56/26 23 22