HEAD NV and HTM Sport GmbH Announce the Unaudited Results of Head NV for the Three Months ended 31st March 2010

May 12th, 2010

Amsterdam – 12th May 2010 – Head N.V. (VSX: HEAD; U.S. OTC: HEDYY.PK), a leading global manufacturer and marketer of sports equipment, and HTM Sport GmbH, a subsidiary of Head NV, announced the following results today.

Summary Unaudited Financial Information
see attached pdf file


For the three months ended March 31, 2010 total net revenues increased by €3.8 million, or 6.7%, to €61.0 million from €57.2 million in the comparable 2009 period. This increase was mainly due to improved racquet sports sales offset by a decline in diving. Winter sports remained broadly flat.

The adjusted operating loss for the three month period compared to prior year decreased by just over €5 million driven by, higher sales, improved gross margin which increased from 38.1% to 42.9% and lower general, administrative and other expenses (€0.9 million) offset by slightly higher selling and marketing costs (€0.2 million).

The net loss decreased by nearly €10 million in the three months to 31st March 2010 compared to the same period in 2009 mainly due to the improved adjusted operating performance compounded by ESOP income, lower interest costs and no restructuring or bond exchange costs in 2010.

Operating cash flow for the first quarter improved by €12.6 million due to enhanced operating results and tighter working capital management – working capital has fallen by €17.5 million at 31st March 2010 compared to 31st March 2009.

The improved cash flow and the success of our bond exchange in 2009 has brought our net debt down from €118.3 million at the 31st March 2009 to €40.6m at the 31st March 2010.

We are part way through the preseason orders for our winter sports business, and at this stage, based on our bookings we believe that winter sport sales will be broadly in line with last year’s, however it is too early in the year to predict the company’s overall performance in 2010.

The Head NV AGM will be held on the 27 May 2010, full details are on our website.


About Head

HEAD NV is a leading global manufacturer and marketer of premium sports equipment.

HEAD NV’s ordinary shares are listed on the Vienna Stock Exchange (“HEAD”).

Our business is organized into four divisions: Winter Sports, Racquet Sports, Diving and Licensing. We sell products under the HEAD (tennis, squash and racquetball racquets, tennis balls, tennis footwear, badminton products, alpine skis, ski bindings and ski boots, snowboards, bindings and boots), Penn (tennis and racquetball balls), Tyrolia (ski bindings), and Mares/Dacor (diving equipment) brands.

We hold leading positions in all of our product markets and our products are endorsed by some of the world’s top athletes including;

Skiers: Bode Miller, Didier Cuche, Aksel Lund Svindal, Ted Ligety, Werner Heel, Kjetil Jansrud, Patrick Staudacher, Hans Grugger, Hermann Maier, Franz Klammer, Jon Olsson, Lindsey Vonn, Maria Riesch, Anja Pärson, Elisabeth Görgl, Sarka Zahrobska

Tennis players: Novak Djokovic, Andy Murray, Robin Soderling, Marin Cilic, Svetlana Kuznetsova, Victoria Azarenka

For more information, please visit our website: http://www.head.com

Analysts, investors, media and others seeking financial and general information, please contact:

Clare Vincent, Investor Relations
Tel: +44 207 499 7800
Fax: +44 207 491 7725
E mail: headinvestors@aol.com

Gunter Hagspiel, Chief Financial Officer
Tel: +43 5574 608
Fax +43 5574 608 130

This press release should be read in conjunction with the company’s report for the three months ended 31st March 2010.

Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will” and similar terms and phrases, including references to assumptions, as they relate to Head N.V., its management or third parties, identify forward-looking statements. Forward-Looking statements include statements regarding Head N.V.’s business strategy, financial condition, results of operations, and market data, as well as any other statements that are not historical facts. These statements reflect beliefs of Head N.V.’s management as well as assumptions made by its management and information currently available to Head N.V. Although Head N.V. believes that these beliefs and assumptions are reasonable, the statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These Factors include, but are not limited to, the following: the impact of the current global economic turmoil, weather and other factors beyond our control, competitive pressures and trends in the sporting goods industry, our ability to implement our business strategy, our liquidity and capital expenditures, our ability to obtain financing, our ability to realize the cost savings expected from the cost reduction program, our ability to compete, including internationally, our ability to introduce new and innovative products, legal proceedings and regulatory matters, our ability to fund our future capital needs, and general economic conditions. These factors, risks and uncertainties expressly qualify all subsequent oral and written forward-looking statements attributable to Head N.V. or persons acting on its behalf.


Head N.V.
Rokin 55
NL 1012 KK Amsterdam

Equity
ISIN: NL0000238301
Stock Market: Vienna Stock Exchange

HTM Sport GmbH
Tyroliaplatz 1
A 2320 Schwechat

Bonds
ISIN: XS0184717956 and XS0184719143
Official Market: Luxembourg

Head_NV_PR_Results_Q1_2010.pdf (26.8 kb)