Analysis

ZMDI Pushes Business with Standard Products

24th October 2011
ES Admin
0
ZMD AG has slightly raised its revenue projection for the current fiscal year. Based on its nine-month figures from today’s vantage point, ZMDI expects 2011 revenues to total about EUR 62 million, equivalent to a gain of about 12 percent over 2010. Thus ZMDI should outperform the growth rate for the market at large, which is in the upper single digits. Given the strong performance of its business in green technologies, the company had already increased its projection for revenue growth to 10 percent in May. In terms of profits, the Executive Board has reconfirmed its previous projection, and still expects an EBIT of about EUR 4.5 million for 2011. ZMDI’s revenues for 2010 came to EUR 55.1 million, and EBIT was EUR 1.1 million.
Full-year revenue projections raised slightly: 2011 revenue growth expected to be around 12 percent – 2011 EBIT to reach about EUR 4.5 million. Strong demand for energy-efficient products and solutions in automotive sector. Total of 24 new products introduced in 2011. Standard-products business achieves major strategic goals ahead of schedule: successful entry into market for “smart power management”

Growth in the first nine months of ZMDI’s fiftieth-anniversary year 2011 has been driven primarily by strong demand for energy-efficient products in the automotive sector, and by good business in chip-based medical applications like today’s hearing aids. In the automotive sector, the circuits and sensors developed by ZMDI have helped reduce average fuel consumption and CO2 emissions. At mid-year, ZMDI released such products as a high-performance chip for efficiently controlling and monitoring car batteries, making the use of start-stop technology trouble-free. It also won important project contracts that included LED drivers for power-saving lighting.

With the introduction of 24 new products in 2011, ZMDI launched more products on the market than ever before, and once again significantly expanded its range of services for its clients.

In parallel with the growth from the first three quarters of 2011, ZMDI also evolved strategically and significantly expanded its business in standard products. The most recent highlight in this area was the company’s entry into the market for smart power management at the end of September. ZMDI circuits provide a viable solution to help significantly reduce energy consumption, especially in computer centers. The continuous cooling of large computer centers, which are necessary to handle digital data, requires high levels of power consumption and makes computer centers the world’s largest generators of CO2 emissions.

As the standard products business has expanded this year, the company has already filled ten new job openings, primarily for development engineers and sales specialists. At the same time, it continued its pursuit of globalization by opening a new branch in Ireland in June.

Thilo von Selchow, ZMDI CEO stated: “ZMDI has maintained its strong performance record from the beginning of the year. We are very satisfied with the first nine months of this year, and have once again been able to raise our revenue projections slightly for all of 2011. In building up our business with standard products, we have achieved major strategic goals ahead of schedule. As a result, ZMDI will use 2012 primarily to consolidate our hold on the ground we’ve already gained, and to lay the foundation for further growth. For that purpose, we’ll speed up some necessary retooling processes and move various other measures forward, such as building up new capacity in development and sales, as well as steps to safeguard our consistently high level of quality.”

Mr von Selchow added: “The economic climate overall has become tougher. But it’s still too early for any precise estimates about 2012. No matter how the conditions look next year, ZMDI will be well positioned, with more than twenty new products on the market. To keep things that way for the long term, we’ll hold firm to our large investments in research and development again next year.”

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