Corporate | 22 July 2005 07:59

ATOSS Software AG: Preliminary Figures

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— ATOSS: Sales and earnings below previous year, increased investment in expanding market access announced Munich, July 22, 2005 – In the second quarter of 2005, ATOSS Software AG, the specialist for software solutions revolving around intelligent personnel deployment, was not able to continue the positive developments of the beginning of the year. As the company had already announced on June 7, 2005, incoming orders for software licenses had decreased over the intake of the first quarter. At sales of EUR 9.6 million (previous year: EUR 10.8 million), the operating result (EBIT) in the first quarter of 2005 came in at EUR -0.2 million (previous year: EUR 0.5 million) and was thereby in line with the recently revised expectations. In connection with the current corporate strategy, increased investments will be committed towards expanding market access and the entire sales organization. While ATOSS achieved sales gains by 7% to EUR 4.0 in software maintenance, revenues in software licenses declined, with sales amounting to EUR 1.8 million (minus of 25%) due to the lower volume of incoming orders in the second quarter. Now that ATOSS has successfully concluded high investments especially committed to new products and applications, the main focus is now on the targeted strengthening of sales activities. Investments will mainly revolve around personnel recruiting and personnel development, and will thereby be based on existing programs already in place. Due to the lower sales volume, performance and cash flow have declined considerably over the previous year. Earnings before interest and tax (EBIT) were recorded at EUR -0.2 million (previous year: EUR 0.5 million), whereas earnings before tax (EBT) were slightly positive with EUR 0.1 million (previous year: EUR 0.8 million). Given the developments in earnings, cash flow, at EUR 0.4 million, was considerably below the previous year’s figure of EUR 1.9 million. ATOSS continues to show a very solid balance sheet structure and high liquidity of EUR 26.4 million. This figure has decreased slightly, by 5%, over the previous year. In this context, it must be noted that the company made a dividend outpayment to its shareholders of EUR 0.4 million on May 2. The management board will continue to pursue the management strategy as defined to date. The main focus, however, will be placed on investments geared to stepping up market access, and in this context, the entire sales organization will now be strengthened. Against the backdrop of the results of the first half-year, the company views achieving figures on par with the prior year as a challenge. Even if the sales pipeline delivers a number of larger individual orders, the resulting tangible contributions in revenues and results would only be felt to a large extent in the business year 2006. Given the current assumptions, company management anticipates a slightly positive result. Upcoming dates: 16.08.2005 Publication of report 01.01.-30.06.2005 25.10.2005 Press Information 3rd Quarter 2005 17.11.2005 Publication of report 01.01.-30.09.2005 22.11.2005 Analyst conference/ Frankfurt/ Main Further Information: http://www.atoss.com Contact: ATOSS Software AG Christof Leiber / Member of the Management Board Am Moosfeld 3, D-81829 München Tel.: +49 (0) 89 4 27 71 – 265 Fax: – 100 investor.relations@atoss.com End of announcement (c)DGAP 22.07.2005 —————————————————————————— WKN: 510440; ISIN: DE0005104400; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 220759 Jul 05