SOURCE: Option

July 11, 2008 02:08 ET

Option indicates preliminary Q2 and first half 2008 results

LEUVEN, BELGIUM--(Marketwire - July 11, 2008) -


Leuven, Belgium - July 11, 2008 - Option N.V. (Euronext: OPTI; OTC: OPNVY), the wireless technology company, today announced that although the Company had its highest ever quarterly volume of units shipped, pre-audited preliminary revenues for the second quarter of fiscal year 2008 will be in the range EUR 60-62 million. These revenues combined with EUR 77 million for the first quarter 2008 will generate half year revenue in the range of EUR 137-139 million which is approximately 9% less than the first half year 2007. As a result, the company expects EBIT for the first six months to be negative. The Company had not previously provided guidance for the quarter or the first half of the year.

During the quarter a number of factors affected the indicated revenue and EBIT. The two key issues were continuing price pressure from Asian competitors in Europe and a reduction in sales to two customers versus their preliminary forecasts to the Company.

Option had stated that the second quarter of 2008 would prove difficult as it continued to transition its organization for its rapidly changing market and had to rely on existing products. The company continues to push aggressively through this period of transition identifying cost savings and employing efficiencies to position it for sustainable and profitable growth in 2009.

Option believes that it is well positioned for the second half of the year due to:

  * Option's balance sheet at the close of Q2 remained strong with
    more than EUR 30 million in cash, no debt and improved accounts
    receivable levels
  * A major contract with a MID device manufacturer is on schedule
    for a Q3 announcement, confirming the value of the investment
    Option continues to make in this market
  * The developments with Qualcomm and Intel on embedded modules for
    the next generation of devices continue to progress well
  * The company continues to invest into new and ongoing development
    projects, including software solutions for Linux users for
    laptops and MID devices, that create differentiation from
    competitors
  * A number of new products to be launched in Q3 are on schedule and
    should provide material revenue and higher ASPs in Q4 2008
  * As stated previously, volume shipments continue to increase
    quarter on quarter with wireless USB devices accounting for more
    than 70% of volumes, and prices are beginning to stabilize
  * Revenue generating headcount has been broadened with a new VP
    North America and strengthened staff, enhanced capabilities in
    Australia and the South Pacific, and a new VP Distribution which
    will give access to numerous new and emerging markets without the
    need for dedicated staff.

Audited figures for the second quarter and the first half of 2008 will be published on July 24th 2008.

For the PDF version of the press release in English or in Dutch, please click on the link below:

Option indicates preliminary Q2 and first half 2008 results -- http://hugin.info/133962/R/1235255/263259.pdf

Option geeft voorlopige omzet voor Q2 en eerste halfjaar 2008 -- http://hugin.info/133962/R/1235255/263284.pdf


Investor Relations Contact
JP Ziegler, CFO
Tel +32 (0)16 317 411, E-mail: investor@option.com

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