Corporate | 25 October 2005 08:14

ATOSS Software AG: Q3 Preliminary Results

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— ATOSS Software AG performing below the previous year in Q3, 2005, but showing a positive trend over the second quarter Munich, October 25, 2005 -ATOSS Software AG, the specialist for software solutions revolving around intelligent personnel deployment, recorded sales of EUR 5.0 million in the third quarter of 20005 (Q3, 2004: EUR 5.5 million), while the result recorded stood at EUR -0.1 million, following on EUR 0.4 million in the same period last year. In spite of burdens resulting from ongoing restructuring measures, ATOSS was able to achieve improvements over the second quarter of 2005. At EUR 5.0 million, sales, in connection with slightly improved earnings, were around 10% above the previous quarter (EUR 4.5 million). Moreover, cash flow developed very positively, and increased considerably by comparison with the prior year quarter from EUR 0.5 million to EUR 2.5 million, and rose during three consecutive quarters by 20% to EUR 2.9 million, by comparison with the prior year period (previous year: EUR 2.4 million). At EUR 2.9 million, software sales were lower than in the same period in 2004 (EUR 3.1 million). A slight increase was recorded over the second quarter of 2005 (Q2 2005: EUR 2.8 million). The consulting business returned sales of EUR 1.2 million, following on EUR 1.4 the year before. In the third quarter of 2005, hardware sales amounted to EUR 0.6 million (previous year: EUR 0.7 million). By comparison with the prior year, earnings before interest and tax (EBIT) declined at EUR -0.1 million (Q3 2004: EUR 0.4 million). This decline is mainly due to the costs resulting from the initiated, ongoing restructuring measures, which will result in considerable cost reductions in the 2006 business year. The funds that will be freed up will secure the earnings strength in the next business year and will be available to bolster and advance the core business in the areas of Time & Attendance and Work Force Management. Not least given the continuously strong operating cash flow, ATOSS holds a very solid financial position. In the third quarter, financial resources – liquid funds and marketable securities – rose from EUR 26.4 million to EUR 28.8 million. The management board emphasized that the decision on the deployment of the considerable financial resources will only be made after the 2005 financial statements have been drawn up and a concluding evaluation of the success of all measures taken within the context of the corporate strategy. With a look to the fourth quarter, the current picture would indicate a continuation of the developments recorded in the third quarter, in connection with a slight increase in sales. In view of the present assumptions, the Management Board underlines its expectations of posting a slightly positive result for the 2005 business year. Upcoming dates: 17.11.2005: Publication of report 01.01.-30.09.2005 22.11.2005: Analyst conference in Frankfurt/ Deutsches Eigenkapitalforum Further information: http://www.atoss.com Contact: ATOSS Software AG Christof Leiber / Member of the Management Board Am Moosfeld 3, D-81829 Munich Tel.: +49 (0) 89 4 27 71 – 265 Fax: – 100 investor.relations@atoss.com End of announcement (c)DGAP 25.10.2005 —————————————————————————— WKN: 510440; ISIN: DE0005104400; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 250814 Okt 05