SOURCE: Thomson

October 22, 2009 01:44 ET

THOMSON : Thomson maintains its focus on profitability and cash flow improvement as market conditions remained challenging in 3Q 2009

PARIS--(Marketwire - October 22, 2009) - Please find attached the press release regarding Thomson Q3 revenues.

3Q 2009 revenues at constant currency down 19.4% for continuing activities and down 15.4% on new perimeter

-- 9M 2009 Group's net revenues from continuing activities amounted to EUR 2,603 million, down 8.3% at current currency and down 10.4% at constant currency compared to 9M 2008. 9M 2009 revenues from new perimeter activities declined by 6.3% at constant currency.

-- 3Q 2009 Group's net revenues from continuing activities amounted to EUR 803 million, down 20.2% at current currency and down 19.4% at constant currency compared to 3Q 2008. 3Q 2009 revenues from new perimeter activities declined by 15.4% at constant currency.

-- In challenging market conditions, Thomson estimates it has maintained or strengthened its market positions across all businesses except in Access Products in Europe. Revenue decrease in 3Q 2009 results from weak orders from some Connect customers, continuing weakness of the DVD replication market and closure of the North American telephony business at the end of 2008. Licensing revenues slightly increased at constant currency.

-- Thomson was able to offset the decline in revenues by executing operational efficiencies to improve its operating profitability and cash flow.

Cash position at EUR 551 million end of September, a EUR 40 million increase vs. June 2009

-- Operating cash flow from continuing activities was positive over the quarter and showed a material improvement over 3Q 2008.

-- Group free cash flow was positive in 3Q 2009. The Group's estimated cash position at the end of the quarter amounted to EUR 551 million, compared to EUR 511 million on 30 June 2009. Estimated net financial debt as of September 30, 2009 stood at EUR 2,170 million compared to EUR 2,311 million as of June 30, 2009.

Update on balance sheet restructuring

-- Thomson continues to work towards the implementation of the restructuring announced on 24 July 2009, which is supported by a majority of its senior creditors.

-- Since July 24th, Thomson has received support from additional senior creditors, in some cases subject to satisfaction of conditions and completion of the ISDA auction process.

-- The ISDA process to unwind the CDS has taken more time than expected and is now anticipated to be completed by the end of October 2009. Thomson will then be in a position to identify new senior creditors and proceed to solicit their support for the restructuring. Therefore, Thomson now expects to proceed with its Extraordinary General Meeting in the first quarter of 2010.

Update on divestments

-- Thomson is pursuing discussions for the disposal of Grass Valley activities and confirms it is premature at this stage to anticipate the outcome of the negotiations.

-- Following signature of a multi-year agreement between PRN and Wal-Mart, the PRN disposal process has been resumed.

-- The Screenvision US disposal is in final stages of discussions.

PDF: http://www.hugingroup.com/documents_ir/PJ/CO/2009/159517_88_7X59_10-22-09-Q3-VUS.pdf


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