Corporate | 24 October 2003 08:02

ATOSS Software AG english

ATOSS Software AG – Preliminary Figures Q1 – Q3 2003 Corporate-news announcement processed and sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Considerably enhanced performance in connection with slight sales increase, cash flow and liquidity showing further marked improvements. Munich, 24.10.2003 – According to preliminary figures for the period from January 1 to September 30, 2003, ATOSS Software AG has generated some-what higher sales, while considerably improving results over the past year. On sales of EUR 17.4 million, EBIT climbed by more than 100% to EUR 1.7 million. At EUR 38.0 million liquidity is at a record high, while cash flow of EUR 4.3 million was recorded. Company management expects lively business in the ongoing fourth quarter. In the light of these developments, the overall outlook on the year 2003 continues to look very positive. A look to the performance of the individual company areas during the nine month period shows that the sales in the Software division moved ahead by 6% EUR 9.4 million, while Consulting experienced a slight decline of 2% to EUR 5.0 million. In the Hardware division, sales were up by 14% to EUR 2.1 million. In spite of the continued weak economic environment sales in the software licenses area increased by 3% to EUR 3.9 million over the last year (EUR 3.8 million). A look to the development of incoming orders underlines even more distinctly the stronger demand for software solutions in the field of working time management and intelligent personnel deployment planning. In the first nine months of the ongoing year, incoming orders for software licenses showed a marked increase by 21 % to EUR 4.4 million over the past year (previous year: EUR 3.6 million). After the especially strong second quarter, overall sales in the third quarter just concluded (EUR 5.6 million) were only slightly lower than the same period last year (EUR 5.9 million). Sales in the Software division were on par with last year’s figures, while Consulting experienced a more pronounced decline due lower sales of consulting services. Regardless of the moderate sales recorded in the third quarter, ATOSS has achieved considerable improvement in quarterly operating results as well as financial results over the same period last year thanks to the markedly enhanced earnings strength. Profitability further enhanced, cash flow and liquidity increase once again In the period from January to September 2003, earnings before interest and tax (EBIT) showed a marked increase over the past year from EUR 0.7 million to over EUR 1.7 million, while the EBIT margin amounted to 10 % (previous year: 4%). Pre-tax earnings (EBT) leapt by 36% from EUR 1.6 million to EUR 2.2 million and thereby stood at 13% (previous year: 10%). By comparison with last year, liquid assets and marketable securities increased by 14% EUR 38 million, and cash flow from ongoing business activities rose to EUR 4.3 million (previous year: EUR 3.6 million). Based on the very solid balance sheet figures, ATOSS also commands appreciable competitive advantages. Gratifying development of the ATOSS share price – special outpayment in the fourth quarter In the third quarter the ATOSS share price peaked at EUR 13.75, which equals more than 80% of the price registered at the beginning of the year. The price recorded on September 30, 2003 of EUR 12.70 still represents an increase of 69%. Comparable indexes such as the Prime Standard and TecDAX were exceeded without exception and by a wide measure. The company had announced a special outpayment of EUR 1.50 per share already in the spring of 2003 that will now be made in the ongoing fourth quarter – a measure that certainly enhances the appeal of ATOSS stock. The outpayment will be issued on December 30, 2003 to all shareholders holding ATOSS stock when trading closes on December 29, 2003. According to the information available to the company, the payout will be tax-free for shareholders with minority holdings (i.e. shareholders owning less than 1% of the shares). Outlook for 2003 remains positive, light increase in sales in connection with considerably improved performance, EBIT margin expected to almost double In spite of the continued weakness of the markets, ATOSS management – also in view of the high level of orders in hand in the software licenses area – expect to achieve a marked increase in sales and earnings in the ongoing fourth quarter by comparison with the elapsed third quarter. The company’s overall aim for the 2003 business year remains as originally defined, namely achieving considerably enhanced earnings strength on slightly higher sales. Following on a figure just under 6% in the previous year, the EBIT margin in the ongoing business year is expected to be in the region of 10%. Market surveys confirm strategy and underline considerable growth potential, especially in the retail sector and the producing sector An increasing number of companies perceive the need for a more targeted, focused planning and steering of personnel resources. Particularly in Germany companies are forced to take action in view of the high wage costs. Our own market surveys, as well as an extensive study commissioned by ATOSS and the DEKRA Akademie have yielded some very interesting results in this context. The respondents consisted of managers from the 1,000 largest German companies in the industrial and services sectors. These investigations ascertained that 64.8% of the service providers and 78.5% of the manufacturing companies regard flexible working hour models as a very important factor. And more than 90 % of the managers polled anticipate that they will no longer be able to prevail over competition in future without requirements oriented utilization planning, i.e. the synchronization of personnel deployment and order volume. Flexible working hours models that adapt and adjust to company requirements are still completely under-represented. This area in particular holds promising opportunities to increase competitive strengths and productivity, without having to make personnel cutbacks. And this applies particularly in the retail branch and the manufacturing sector, where companies have to cope with strong fluctuations in order volume, two sectors in which ATOSS is already serving numerous renowned customers. ECJ judgment will force medical branch to commit investments ATOSS regards the clinic area as the third associated branch holding strong growth potential. In this area, the company responded to emerging requirements at an early stage, and set up an independent Business Unit Medical that has performed very well to date. The judgment passed by the European Court of Justice (ECJ) in September according to which emergency duty in hospitals and clinics in future will be counted as part of working hours has put additional pressure on the branch. While this is likely to incur far-reaching consequences for many establishments, ATOSS is not convinced that this judgment will inevitably result in a financial or organizational catastrophe. Following the announcement of the judgment, a host of news programs featured the Klinikum Ingolstadt – an ATOSS client – as an example of a long established and successful implementation of new and flexible working time models and organization structures. Therefore ATOSS perceives the ECJ judgment as a confirmation of the soundness of the company’s strategy. Based on very sound financial fundamentals, and in view of the proven return on investment period of 6 to 12 months for ATOSS solutions, management anticipates continued positive business developments in 2004 even in the face of a continuation of the challenging business environment. Important dates: 14.11.2003 Publication of report for third quarter 2003 26.11.2003 Analysts Conference, Frankfurt, Trade Fair Center 29.12.2003 Cutoff date for out payment 30.12.2003 Out payment of EUR 1.50 per share Further information: http://www.atoss.com Contact: ATOSS Software AG Am Moosfeld 3, D-81829 Munich, Christof Leiber – Tel.: +49 (0) 89 4 27 71 – 265 – Fax: +49 (0) 89 4 27 71 – 100, revolution-in-time@atoss.com end of message, (c)DGAP 24.10.2003 ——————————————————————————– WKN: 510440; ISIN: DE0005104400; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 240802 Okt 03