Corporate | 22 October 2004 07:59

ATOSS Software:Stable revenues on basis of increased revenues with new customers

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– ATOSS Software AG: Stable revenues on basis of increased revenues with new customers Munich, 10/22/2004 – As expected in Q3 ATOSS Software AG, the specialist in software solutions covering all aspects of intelligent personnel deployment, has further reduced its shortfall on last year. Third quarter sales came in at EUR 5.5 million compared with EUR 5.6 million in the same period in 2003. Total sales for the period from January to September 2004 now stand at EUR 16.3 million. This puts the figure as of 30.09.04 just 6% behind the previous year, compared with a difference of 9% as of 30.06.04. ATOSS continues to enjoy a positive cash flow and high liquidity. As of 30.09.04, cash flow was around EUR 2.4 (previous year 3.6) million, while liquid funds (financial resources) amounted almost EUR 28 (previous year 38) million despite recent payouts of EUR 11.5 million. Operating results (EBIT) were stable at EUR 0.4 (previous year 0.6) million. Software division reports top development During the third quarter, the Software division increased sales slightly over the same period last year from EUR 3.0 to 3.1 million. Software maintenance made a major contribution, generating sales of EUR 1.9 (previous year 1.8) million. Software licensing sales remained on a par with last year at EUR 1.2 million. The Consulting division posted sales of EUR 1.4 million for the quarter, slightly down on last year’s EUR 1.5 million. Hardware sales came in at EUR 0.7 (previous year 0.8) million and other sales at EUR 0.3 (previous year 0.3) million. Operating profit lower than last year, but EBIT margin pegged at a solid 7% As expected, the operating result (EBIT) of EUR 0.4 million in the third quarter lagged behind the figure for the same quarter last year (EUR 0.6 million), bringing the total for the first nine months to EUR 1.0 (previous year 1.7) million. However, the EBIT margin was pegged in Q3 at a solid 8% (previous year 10%). After adjustment for the costs of the employee participation convertible bonds program, the result (EBITCB) came in at EUR 0.5 (previous year 0.6) million for Q3 and EUR 1.2 (previous year 1.7) million for the nine months to September. Pre-tax earnings (EBT) in the third quarter of 2004 totaled EUR 0.6 (previous year 0.8) million, while net income for the period amounted to EUR 0.2 (previous year 0.4) million. Balance sheet ratios remain rock solid After adjustment for the effects of extra distributions of EUR 1.50 per share on 30.12.2003 and 23.04.2004 amounting to a total of some EUR 11.5 million, in a direct comparison between the figures for September 30 this year and last, liquidity (financial resources) has already risen to almost EUR 28 million. The power of ATOSS to generate liquidity is essentially attributable to its highly positive cash flow from current activities which, while slightly reduced from last year, still stood at EUR 2.4 million as of 30.09.04. This factor, coupled with the continuing high capital ratio of 81% (previous year 72%), underscores the company’s extremely robust financial position. Growth strategy beginning to pay off In 2003 ATOSS successfully completed a multi-year development phase in which the company’s profitability was continuously and substantially consolidated. By implementing the growth strategy announced at the beginning of this year, ATOSS now intends to embark on a period marked by strong growth, in particular in its software licensing business. Following the company’s announced intention to strengthen its focus on the SME market, developments in the first nine months have established a positive trend. The number of new customers has risen markedly in comparison with the same period last year. Based on orders received as of September 30, the proportion of software licensing accounted for by new customers stood at 61%, against 52% the year before. Therefore, from the company’s perspective, one part of the growth strategy announced at the start of the year has already started to pay off – namely the move to position the ATOSS as a full range provider of solutions with a special focus on small and medium-sized enterprises. The company is confident that it has expanded its market share in this field and intends to consistently pursue this strategy. The remaining elements of the company’s growth strategy, especially the intensified integration between software solutions and consulting services, will be implemented by the end of the year, however as expected, the positive effects will not become apparent until 2005. Against this background sales, in the current fourth quarter of 2004 are expected to fall within a bandwidth of EUR 5.3 to 5.7 million, with results following a corresponding pattern. Quarterly Overview Q3/04 Q2/04 Q1/04 Q4/03 Q3/03 Q2/03 Q1/03 Sales 5,489 5,607 5,172 6,014 5,595 6,009 5,788 Software 3,134 3,381 2,884 3,409 3,009 3,321 3,076 thereof software licenses 1,187 1,444 1,030 1,562 1,166 1,471 1,296 thereof software mainten. 1,947 1,937 1,854 1,847 1,843 1,850 1,780 Consulting 1,388 1,530 1,368 1,667 1,512 1,748 1,747 thereof Professional Serv. (1) 1,125 1,143 1,130 1,300 1,154 1,254 1,221 hiervon thereof Consulting 263 387 238 367 358 494 526 Hardware 715 513 767 618 768 561 746 Miscellaneous 253 184 153 320 306 380 219 EBITDA 559 751 301 860 813 1,065 547 EBITCB (2) 520 515 118 629 601 804 272 EBIT 434 450 85 609 581 804 272 EBIT- Marge in % 8% 8% 2% 10% 10% 13% 5% EBT 580 422 356 903 790 1,027 317 Net Income 237 238 207 513 396 739 152 Cash Flow (3) 493 -20 1,924 -75 2,454 -136 1,261 Financial resources (4/5) 27,911 27,669 33,574 31,855 37,999 35,320 35,408 EPS (in Euro) 0.06 0,06 0,05 0,13 0,10 0,19 0,04 Employees (6) 183 174 176 173 177 172 16 (1): Formerly IT Services (2): * EBIT before cost of employee participation program arising from convertible bonds (**): Previous year’s figures adjusted due to restructuring to determine cash flow (4): Cash and marketable securities, formerly liquidity (5): Distributions of EUR 1.50 per share on 30.12.2003 and 23.04.3004 (6): At end of quarter end of message, (c)DGAP 22.10.2004 ——————————————————————————– WKN: 510440; ISIN: DE0005104400; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 220759 Okt 04