Corporate | 23 July 2004 07:55

ATOSS – Preliminary Figures for Q2 2004

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– ATOSS – Preliminary Figures for Q2 2004 ATOSS reports stronger second quarter sales and earnings after moderate beginning of the year Munich, July 23, 2004 – According to preliminary figures, ATOSS Software AG, the specialist for software solutions revolving around intelligent personnel deployment, has succeeded in considerably increasing sales and operating earnings in the second quarter of the year over the previous quarter, in line with expectations. At EUR 5.6 million, group sales were more than eight percent higher than first quarter sales. Posting an increase of around EUR 0.5 million operating earnings (EBIT) increased disproportionately over the first quarter. As anticipated, total sales, as well as EBIT in the first half of 2004 fell short of the high comparative level of the previous year due to changes in the operating areas made at the beginning of the business year. With a look to the second half of the year, the company expects a further improvement in sales and earnings over the first half of 2004. Large-scale order ushers in positive development against a challenging background The gains in sales and earnings in the second quarter over the previous quarter were achieved against the backdrop of a consistently challenging market environment. The majority of SMEs and Mittelstand companies are still holding back on committing new investments, also in the software area. A major software order placed by EDEKA Minden-Hannover Holding GmbH made a significant contribution to positive business developments. With this large volume order, ATOSS has once again succeeded in winning a highly significant order in the wholesale/retail area, thereby underlining the company’s position as a full range provider. Viewed from a half-year perspective, figures have developed in line with expectations. In the first six months of the business year, Group sales stood at a total of EUR 10.8 million (previous year: EUR 11.8 million), while EBIT was recorded at EUR 0.5 million (previous year: EUR 1.1 million). Software division reports gains following moderate beginning of the year In the second quarter, the software division, the largest company area, was able to achieve a 17% sales increase to EUR 3.4 million following on EUR 2.9 million in the first three months of the ongoing business year. Sales gains were especially pronounced in the software licenses area, with a 40 % leap to EUR 1.4 million (previous quarter: EUR 1.0 million). The Software Maintenance activities increased by around 4% to EUR 1.9 million. Thanks to the positive development in this business area, the share of software business in terms of total company sales – viewed on a half-year basis – moved up from 54 % in 2003 to 58 % as of June 30, 2004. With second quarter sales of EUR 1.5 million, the consulting business performed around 12 % above the level of the first quarter of 2004. The Consulting division showed particularly strong gains at EUR 0.4 million (previous quarter: EUR 0.2 million). The IT Services division recorded slightly higher sales of EUR 1.1 million. The Hardware business area was the only exception, and posted lower sales of EUR 0.5 million following on EUR 0.8 million as per March 31, 2004. Marked increase in operating earnings over the first quarter By comparison with the first quarter of the ongoing business year, operating earnings (EBIT) increased notably. Following on EUR 0.1 million as of March 31, 2004, ATOSS generated EBIT of EUR 0.5 million in the period from April to June this year. Adjusted by employee convertible bond program, EBITCB amounted also to EUR 0.5 million (previous quarter: EUR 0.1 million). At the same time the EBIT margin moved up from two to eight percent. On a half-year basis, ATOSS recorded earnings of EUR 0.6 million before interest, tax and before the costs of the employee participation program involving convertible bonds (previous year: EUR 1.1 million). By comparison with the previous quarter, pre-tax earnings (EBT) rose by 25% to EUR 0.4 million, and net income for the period after tax improved by 17% to EUR 0.2 million. Liquidity remains high after dividend disbursement Liquidity, in other words liquid funds and marketable securities, decreased within the corporation from EUR 33.6 million as per March 31, 2004 to EUR 27.7 million recorded on June 30, 2004. This decline is mainly attributable to the disbursement of a special dividend of EUR 1.50 per share. This equals an outflow of funds amounting to a total of EUR 5.7 million. The equity ratio stood at 81% (previous year: 72%). As per June 30, 2004, the cash flow from business operations improved markedly to EUR 1.9 million following on EUR 1.1 million the year before. Impact of new strategy in 2005 Against the backdrop of changing forecasts on the further economic development in Germany and the continued corporate disinclination to commit investments, it is hardly possible to venture an outlook on the second half of 2004 at this point in time. In view of the continued challenging environment, ATOSS will hardly be able to remain entirely unaffected by general trends. The new orientation of the company’s operating areas that was outlined in the Q1 report and at the Shareholders’ Meeting on April 22, 2004, is geared to positioning ATOSS for a phase of more dynamic growth. The key challenge the company faces here is achieving enhanced market penetration. Moreover, an initial step in a consolidating market will be to gain market shares. To this end, the stronger integration of the operating areas to form and provide a comprehensive offering of solutions is of decisive significance. Regardless of initial success already achieved and continuous improvements in the second half of the year, the company assumes that the measures implemented will boost sales and earnings in the coming year. In view of this situation, the ATOSS management board expects a further improvement in business developments in the second half of 2004, although it is not assumed that the strong total annual figures of 2003 will be exceeded. Instead, the company expects – without factoring in any large-scale orders – to achieve total sales and EBIT margin slightly below last year’s level. Additional information: http://www.atoss.com Contact: ATOSS Software AG Christof Leiber / Executive Board Am Moosfeld 3, D-81829 Munich 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 23.07.2004 ——————————————————————————– WKN: 510440; ISIN: DE0005104400; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 230755 Jul 04