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SCM Microsystems Reports Third Quarter 2009 Results
Date:11/16/2009

34) (103) 1,307 (151) Depreciation and amortization (360) (64) (711) (216) Net loss from continuing ------- ------- ------- ------- operations $(2,317) $(3,267) $(6,073) $(6,814) ======= ======= ======= =======

We conduct a significant amount of our business in Europe, we are dually traded on the U.S. NASDAQ and Frankfurt Prime Standard stock exchanges, the majority of our executive management are located in Germany and a significant portion of our investors are German-based. In addition to presenting net income in accordance with GAAP, we have determined that EBITDA is a relevant measure of performance for our company, as it is a metric commonly used among technology companies, particularly those doing business in Europe, and provides a meaningful perspective on the Company's operating results and underlying cash flow dynamics. As a result, we believe it is a helpful tool for communicating our performance to our investors and analysts and for comparisons to other companies in Europe and within the technology industry.

EBITDA should be considered in addition to, but not as a substitute for, other measures of financial performance determined in accordance with accounting principles generally accepted in the United States. While we believe that EBITDA is useful within the context described above, it is in fact incomplete and not a measure that should be used to evaluate the full performance of the Company or its prospects. Such evaluation needs to consider all of the complexities associated with our business including, but not limited to, how past actions are affecting current results and how they may affect future results, how we have chosen to finance the business and how regulations and the other aforementioned items affect the final amounts that are or will be available to shareholders as a
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SOURCE SCM Microsystems, Inc.
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