Corporate | 17 March 2005 10:22

ATOSS Software AG: Presentation of Annual Report 2004, Outlook 2005

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— ATOSS Software AG: Presentation of Annual Report 2004, Outlook 2005 Expectations met in 2004; higher sales and profit planned in 2005; Dividend outpayment proposal approved. Munich, March 17, 2005 – ATOSS Software AG, the specialist for software solutions revolving around intelligent human resources deployment, posted sales of EUR 21.8 million in the 2004 business year (previous year: EUR 23.4 million), EBIT of EUR 1.2 million (previous year: EUR 2.3 million), thereby falling short of the record figures of the past year, as was anticipated. The emphasis in the year under review was on investments geared to strengthening software sales. In addition to the successful acquiring of new clients among smaller companies in 2004, an increased number of concrete enquiries in the sales pipeline have been registered in the meantime. Moreover, the presentation of a wide range of new developments at trade fairs and exhibitions over the past weeks has been meeting with increasingly lively interest in ATOSS products and services. Success in the SME area in 2004, while large scale orders not yet on the books In 2004, the core software business area continued to develop positively with sales amounting to EUR 7.7 million (previous year: 7.3 million), while software licenses fell short of the previous year’s mark of EUR 5.5 million and came in at EUR 4.9 million. The absence of larger individual orders was notable here, while on the other hand, the number of new clients from the SME sector (small and medium size enterprises) increased notably by 30%. This development marks the successful implementation of part of the new corporate strategy aiming for a significant broadening of the customer base. By comparison, business in the premium sector, involving the top level of SMEs (Mittelstand companies) and large scale customers did not revive in 2004. The management board is confident, however, that the upturn in project enquiries evident in the meantime will also result in larger individual orders being placed in the ongoing business year and expects increasing software license revenues in 2005. Very high investments committed, balance sheet ratios remain extremely solid At EUR 4.3 million, the investments in research and development (R&D) amounted to 20 % of sales. At the same time, the number of staff active in product development was boosted markedly from 41 to 54 employees, while personnel costs rose only by an insignificant measure. These steps represent significant advance work that will enable ATOSS – on the basis of forward looking development technologies and consistent, comprehensive solution offerings for the SME sector, as well as the top level Mittelstand and large scale customers – to respond with a considerably higher degree of flexibility in future. ATOSS continues to offer remarkable investment security, an additional key factor from a customer viewpoint. As of December 31, 2004 liquidity (liquid funds) stood at EUR 26.6 million, equaling EUR 7 per share and a capital ratio of 85%. In spite of lower performance, high profitability at a 7% margin on sales In the year 2004, the development of results was impacted by a sales decline of around 7%, as well as the changeover to IFRS accounting practices and the associated balance sheet treatment of the employee participation program. Operating profits before the effects of convertible bonds (EBITCB) amounted to EUR 1.5 million (previous year: EUR 2.3 million), while EBIT came in at EUR 1.2 million (previous year: EUR 2.3 million). With a margin of sales of 7% (previous year: 10%) before the effects of the convertible bonds program and 6% (previous year: 10%) on the basis of EBIT, ATOSS remains very profitable. Decision on dividend outpayment at Shareholders’ Meeting on April 29 At the outset of the dividend policy put in place at the beginning of 2003, ATOSS made two outpayments of special dividends of EUR 1.50 per share each (on December 30, 2003 and April 23, 2004), which were financed out of funds surplus to operating requirements. In this context the management board and supervisory board decided to approach the upper bracket of the disbursement share in 2004. On April 29, the Shareholders’ Meeting will propose to pay a dividend of 11 cents per share for the 2004 business year, representing a 50% disbursement based on the performance per share. Positive outlook Following considerable investments in new technologies and internal, extensive changes in company organization, the Board is convinced that the company is in a position to return to higher growth rates, especially in the software license business. In this context, the positive developments in the area of small and medium size companies (SME sector) will be continued, while top level Mittelstand companies and large scale enterprises (premium segment) will be targeted to an increasing extent. The Board not only expects considerable impulses to be generated by internal changes, but also by the product novelties presented at a number of key trade fairs. At this year’s EuroShop in Düsseldorf, the next generation of the ATOSS Retail Solution was unveiled. Numerous wholesale and retail companies have already opted for the ATOSS solutions and the new version met with strong interest. At the CeBIT in Hanover the focus was on the ATOSS core product for time management and work force scheduling, ATOSS Staff Efficiency Suite version 3, an its entirely new technology and front end. Also, version 4.7 of ATOSS Time Control, the modular time management and workforce scheduling solution for SMEs and Mittelstand companies, as well as AENEIS version 5, the ATOSS solution for business process management generated a lot of interest. With regard to the ongoing first quarter the Board anticipates that sales and earnings will range around the comparative data of 2004. Accordingly, sales of EUR 4,9million to EUR 5,4million are anticipated, in connection with EBIT of EUR -0,3 million to EUR +0,2 million. In the second half of the year the increased interest companies are showing in ATOSS solutions should be notable in company performance. Therefore, the company continues to anticipate higher sales and enhanced performance for the 2005 business year, while the attainment of corporate targets hinges to a large extent on success in the premium segment. Additional information: http://www.atoss.com Contact: ATOSS Software AG Christof Leiber / Managing director Am Moosfeld 3, D-81829 Munich Tel.: +49 (0) 89 4 27 71 – 265 Fax: +49 (0) 89 4 27 71 – 100 investor.relations@atoss.com end of message, (c)DGAP 17.03.2005 —————————————————————————— WKN: 510440; ISIN: DE0005104400; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 171022 Mär 05