Corporate | 30 January 2004 08:00

ATOSS – Preliminary Results 2003

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– ATOSS – Preliminary Results 2003 ATOSS: 2003 targets met, higher sales growth and a further significant increase in earnings expected for the new financial year Munich, January 30, 2004 – ATOSS Software AG has once again posted a considerable increase in profitability in the financial year 2003 against a small rise in sales. Operating earnings (EBIT) grew by 85% to EUR 2.4 m on sales of EUR 23.4 m. This positive growth is set to continue in the financial year 2004. The Management Board is expecting another significant improvement in earnings with a marked increase in sales growth. Sales in the financial year 2003 stood at EUR 23.4 m, representing growth of just over 1% (previous year: EUR 23.2 m). Sales in the Software Division grew by 4% to EUR 12.8 m, while the Consulting Division posted a fall of 7% to EUR 6.7 m. Hardware sales rose 4% to EUR 2.7 m. Within the two big divisions, Software and Consulting, software licenses accounted for EUR 5.5 m (previous year: EUR 5.5 m), software maintenance for EUR 7.3 m (previous year: EUR 6.8 m), IT services for EUR 4.9 m (previous year: EUR 4.7 m) and Consulting for EUR 1.7 m (previous year: EUR 2.5 m). With the exception of Consulting, this means that each division showed positive growth in a very tough market environment. While ATOSS was able to post considerable growth in consulting in previous years, the increasing reticence on the part of banks and insurance companies to invest made itself felt here. This previously lucrative add-on business with financial services companies declined significantly in 2003, while sales based on ATOSS’ core business fields proved stable. The implementation of a variety of measures should help the Consulting Division to return strong growth again in the 2004 financial year. Orders for software licenses are seen as evidence of the interest being shown in ATOSS software solutions in the fields of working hour management and personnel deployment planning. Incoming orders grew by 7% by comparison with the previous year, rising to over EUR 5.5 m. Considerable increase in earnings, sales margin rises from 6% to 10% In particular, the continuing pursuit of active cost management and the positive growth of maintenance sales resulted in ATOSS once again succeeding – as in previous years – to significantly increase its earnings power in 2003. Operating earnings (EBIT) grew by 85% from EUR 1.3 m to EUR 2.4 m, and the corresponding margin on sales rose from 6% to 10%. Earnings before tax (EBT) rose by 49% from EUR 2.1 m to EUR 3.2 m, and earnings per share stood at EUR 0.50 (previous year: EUR 0.32). The cash flow was stable at EUR 4.1 m, and liquidity still stood at EUR 31.9 m (previous year: EUR 33.7 m) as of December 31, 2003 in spite of the previously issued dividend of EUR 5.7 m. The equity ratio at the end of the year was 87%. ATOSS had placed this dividend at the head of a long-term dividend policy that is geared to allowing shareholders to participate regularly in the company’s success. As far as the dividend for the financial year 2003 is concerned, the Supervisory Board and Management Board will formulate another proposal for the General Meeting of Shareholders on April 22 in Munich and announce it within the next 4 weeks. Significantly increased growth rate expected for the financial year 2004 as well as a further marked improvement in earnings Overall, the Management Board is expecting further very positive corporate growth for the current financial year. “After considerably enhancing our earning power in the last two years, the focus is now on higher sales combined with a further improvement in earnings”, states Andreas F.J. Obereder, Chief Executive Officer of ATOSS. In particular, the Software Licensing, Maintenance and Consulting divisions are to contribute to the positive growth of the business. However, it is the board’s view that higher growth will result more in the second half of the year while the assumption for the first half is for sales and earnings at the level of the comparative period in 2003. Corporate strategy targeting enhanced growth dynamics The focus of the corporate strategy in the new financial year 2004 is on implement-ing various important measures geared to achieving an even stronger integration of sales processes at ATOSS. The company will be structured and positioned in such a way as to enable stronger growth dynamics. The board sees great potential in the hospitals and clinics area, the wholesale and retail sector, as well as in the manufacturing industry. ATOSS should be able to win significant market share on the basis of its very positive experience gained in setting up its Business Unit Medical and the results of its own market studies. The board is also intending to intensify collaboration with existing partners and to enter into new alliances. In this regard, special emphasis is attached to the close collaboration with Bosch’s Safety Engineering Division situated in Ottobrunn, near Munich. This cooperation has shown gratifying development since the collaboration agreement was signed in March 2002. Upcoming dates: 03.02.2004 Road Show in London 17.03.2004 Publication of 2003 annual report, balance sheet press conference 22.04.2004 Press release on provisional Q1 2004 figures 22.04.2004 General Meeting of Shareholders in Munich Further Informatione: http://www.atoss.com Contact: ATOSS Software AG Christof Leiber Am Moosfeld 3, D-81829 München 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 30.01.2004 ——————————————————————————– WKN: 510440; ISIN: DE0005104400; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 300800 Jän 04