In the first half of 2009 HITT recorded revenue of EUR 16.4 million (2008H1: EUR 13.1 million) and a net loss from continuing operations of EUR 0.9 million (2008H1: EUR 0.6 million profit).
The order book slightly decreased to EUR 32 million.
2009 half year review
Revenue increased over the first HY despite the worldwide economic downturn. However, as this increase was in less profitable projects the net result has suffered. In the Traffic systems segment HITT has secured orders
for Aviation systems from existing clients of the airport of Copenhagen and received orders from new customers in Shanghai and Urumqi in China. Ongoing projects for the monitoring and coverage of low flying traffic over the
North Sea and for the airports of Mumbai, Chennai and Calcutta in India are progressing, but slower than anticipated. The projects for three airports in Turkey and the second airport of Shanghai progressed satisfactorily.
The Marine Systems division suffers most from the economic downturn. The largest order received through a Chinese main contractor concerned the port of Lobito (Angola). The project for the Gulf of Kachchh in India has
had delays since 2006. The towers which will house HITT’s equipment are now being completed. It is envisaged that HITT can restart work in the second half of 2009. The project for a harbor management system for the port of Fremantle, Australia nears completion. The project for Queensland ports was completed successfully.
The after-sales and customer support on completed projects worldwide developed as expected and are an important part of HITT’s revenues.
The Hydrography and Navigation segment showed a relatively stable development, although the economic downturn has lead to less orders.
In the first half of 2009, order intake totaled approximately EUR 15 million and the order book decreased slightly from EUR 33.2 million to EUR 32.0 million, including long-term contracts.
HITT had to lay off 10 staff in its Apeldoorn office (active on air and vessel traffic projects) effectively per August 1, 2009 due to forecasted lower activity in this specific area. A provision for restructuring costs of EUR 0.6
million is included in the first half year result of 2009.

Outlook
HITT suffered from the worldwide economic recession, although activities in China continue to grow. Due to the uncertain situation in HITT’s markets, management does not issue a forecast for the whole year.

Management analysis
Notes to the results
In the first half of 2009 revenue increased to EUR 16.4 million (2008H1: EUR 13.1 million), mainly due the progress made on larger projects, involving larger quantities of materials used. These purchased goods for projects, increased from EUR 3.7 million in 2008H1 to EUR 7.5 million. As a result the added value of projects decreased to EUR 8.9 million (2008H1: EUR 9.4 million).
Employee benefits expense increased by 19% to EUR 7.4 million (2008H1: EUR 6.1 million), mainly due to charge to the provision for reorganization for 10 staff made redundant in Apeldoorn, whereas in the 1st half year of 2008 part of a reorganization provision was released. Depreciation and amortization expense decreased on balance to EUR 1.2 million (2008H1: EUR 1.4 million) due to lesser usage of capitalized assets in projects.
Other operating expenses increased slightly to EUR 2.5 million (2008H1: EUR 2.1 million) due to higher housing costs in Hong Kong and Norway. Operating result decreased therefore sharply to a loss of EUR 1.3 million
(2008H1: EUR 0.9 million profit). After finance cost and income tax HITT recorded a net loss from continuing operations of EUR 0.9 million (2008H1: EUR 0.6 million profit). The net result from discontinued operations,
consisting of the pay-out on the disposal of shares of subsidiaries amounted to EUR 15 thousand. The net loss for the period amounts to EUR 0.9 million (2008H1: EUR 4.2 million profit). The earnings per share amount to
EUR 0.19 loss (2008H1: EUR 0.90 profit).

Notes to the balance sheet
The goodwill increased to EUR 1.1 million mainly due to exchange rate differences. The capitalized development cost decreased on balance by EUR 0.2 million to EUR 4.9 million. Trade and other receivables decreased on balance by EUR 0.9 million to EUR 10.9 million, including an increasing work in progress of EUR 7.0 million (2008: EUR 6.3 million). This increase is mainly the result of the inability to improve payment.

schemes as well as delays in projects caused by customers not preparing their sites in time. Trade and other payables decreased by EUR 2.6 million to EUR 4.9 million including advance payments received of EUR 2.2 million (2008: EUR 2.9 million). As a result the level of working capital increased during the first half year.
The legal reserves cover capitalized development costs of the Dutch subsidiaries and foreign currency differences on cash flow hedges and translations.'

Notes to the cash flow
The cash flow from operating activities improved to EUR 1.6 million outflow (2008H1: EUR 3.5 million outflow).
The cash flow in 2008 was influenced negatively by the change of tax levy method by the authorities and a worsening of working capital. The cash flow from investing activities amounted to EUR 1.0 million outflow
(2008H1: EUR 4.6 million inflow due to disposal of subsidiaries) mainly related to development of products. The cash outflow from financing activities, including the dividend payment over 2008 amounted to EUR 0.6 million (2008H1: 2.2 million). On balance cash decreased by EUR 2.9 million from EUR 8.5 million at the end of 2008 to EUR 5.6 million.