Corporate | 31 January 2006 08:01

ATOSS Software AG: Preliminary Figures for 2005

Corporate-news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Press release ATOSS Software AG: Very positive business developments in Q4, sales and earnings exceed expectations Munich, January 31, 2006 – ATOSS Software AG, the specialist for software solutions revolving around intelligent personnel deployment, is recorded a gratifying upturn in sales in the fourth quarter of 2005, and has achieved considerably improved earnings. Higher sales, especially in soft- and hardware, resulted in an operating result (EBIT) of EUR 0.8 million, which equals a sales margin of 14%. In spite of the continued upturn of business in the first weeks of the new business year, the management board is maintaining a cautious outlook on 2006 for the time being. As reported several days ago in an ad hoc press release, a proposal will be made at the General Meeting of shareholders to disburse an outpayment of EUR 5.5 per share from funds not required for operational purposes. The fourth quarter showed considerable gains both by comparison with Q4 2004, as well as with the previous quarters of the reporting year. In connection with sales in excess of EUR 5.8 million (previous year: EUR 5.6 million), operating earnings (EBIT) of EUR 0.8 million (previous year: EUR 0.3 million), as well as a pre-tax result of EUR 1.0 million (previous year: EUR 0.4 million) were achieved. Surplus for the period came in at EUR 0.5 million (previous year: EUR 0.2 million), while earnings per share stood at EUR 0.13. Thanks to the gratifying course of the last three months of 2005, ATOSS was able to compensate for part of the losses over the previous year. At EUR 20.4 million (previous year: EUR 21.8 million), annual sales in 2005 were only 6 % below the prior year, while the performance on the earnings side showed a considerably more favorable development. EBIT came in at EUR 0.6 million (previous year: EUR 1.2 million), while EBT stood at EUR 1.1 million (previous year: EUR 1.7 million), and the annual surplus was recorded at EUR 0.5 million (prior year: EUR 0.9 million). In this context, ATOSS would have been able to have recorded considerably higher earnings, but had decided to continue the investments in research and development on a very high level at EUR 4.1 million (previous year: EUR 4.3 million). Very comfortable capital position, also after dividend disbursement The high cash flow of EUR 1.7 million (previous year: EUR 1.6 million) also showed a gratifying development, and bolstered the increase in liquid funds by 5% to EUR 27.8 million (previous year: EUR 26.6 million). In terms of the average volume of traded shares, the liquidity per share amounted to EUR 7.21. As already announced in the previous year the management board and supervisory board have decided, on the basis of medium and long term liquidity planning, to propose to the General Meeting of Shareholders a dividend payment from funds not necessary for securing operational purposes of around EUR 22 million, or equaling EUR 5.50 per share. According to the present knowledge of the company, the major share of this dividend (EUR 5.26) is from the tax-free surplus account, and is therefore exempt from taxation for those shareholders who hold less than 1% of the company’s capital stock. Only the amount of EUR 0.24 is subject to the withholding tax on capital gains and the solidarity surcharge. Thus, the withholding of EUR 0.05 will be transferred to the tax authorities. Following the above outlined disbursement; the company will retain a robust capital ratio of around 60%, a positive operating cash flow and liquid funds of around EUR 6 million by the end of 2006. In the opinion of the management board, the disbursement does not diminish growth perspectives, as the company, in addition to the very sold balance sheet position, also continues to enjoy direct access to capital markets, and can open up financing opportunities by utilizing approved capital. Positive trend continues, while management board remains cautious outlook The management board will continue to adhere to the strategy geared to achieving organic growth. The intention is to continue the successful acquisition of new customers in the SME area (small and medium size enterprises), thereby broadening the customer base and expanding market shares, while aiming for greater success in garnering large scale orders in the premium sector. Initial positive indications were evident here as evidenced by the gratifying developments in software licenses in the elapsed fourth quarter, and also in the first weeks of the ongoing 2006 business year. In spite of these developments, the management board is nevertheless, for the time being, continuing to adhere to a cautious outlook on 2006. Even in the event that sales do not increase, the management board is expecting a considerable gain in earnings due to the cost effects already realized. The aim is to achieve a sales margin of 5% in relationship to EBIT. The continuation of positive developments in the premium segment, however, could result in additional improvements. Upcoming dates: 17.03.2006 Publication of group accounts/annual report 17.03.2006 Balance sheet press conference 27.04.2006 Press release on Q1 report 02.05.2006 General meeting of shareholders Comparison as of Financial Years to December 31 according to IFRS (Preliminary figures for 2005) TEUR 01.01. Percent. 01.01. Percent. Change 2005 of sales 2004 of sales 2005 31.12. 31.12. over 2005 2004 2004 Sales 20,416 21,826 -6% Software 12,144 59% 12,624 58% -4% thereof software 4,001 20% 4,927 23% -19% licenses thereof software 8,143 40% 7,697 35% 6% maintenance Consulting 4,963 24% 5,798 27% -14% Hardware 2,321 11% 2,594 12% -11% Miscellaneous 988 5% 810 4% 22% EBITDA 1.189 6% 2,116 10% -44% EBITCB (1) 882 4% 1,487 7% -41% EBIT 563 3% 1,230 6% -54% EBT 1,112 5% 1,745 8% -36% Net Income 459 2% 877 4% -48% Cash flow 1,698 8% 1,640 8% 4% Financial resources 27,836 26,589 5% (2/3) EPS (in Euro) 0.12 0.23 -49% Employees (4) 177 179 -1% GROUP OVERVIEW: Quarterly comparison according to IFRS (Preliminary figures for Q4/2005) TEUR Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Sales 5,849 5,001 4,536 5,030 5,558 Software 3,359 2,898 2,770 3,118 3,225 thereof software 1,283 871 784 1,063 1,266 licenses thereof software 2,076 2,027 1,986 2,055 1,959 maintenance Consulting 1,336 1,165 1,247 1,215 1,512 Hardware 836 619 344 522 600 Miscellaneous 319 319 176 175 221 EBITDA 944 17 55 172 504 EBITCB (1) 910 -13 -52 37 335 EBIT 830 -93 -132 -43 262 EBIT-margin 14% -2% -3% -1% 5% EBT 980 45 3 84 387 Net Income 510 -19 -40 9 195 Cash flow -1,177 2,520 -993 1,348 -758 Financial resources 27,836 28,823 26,393 27,916 26,589 (2 / 3) EPS (in Euro) 0.13 -0.01 -0.01 0.00 0.05 Employees (4) 177 181 188 180 179 (1): EBIT before cost of employee participation program arising from convertible bonds (2): Liquid funds and marketable securities (3): Disbursements of € 0.11 per share on May 2, 2005 (4): At end of quarter Further information: http://www.atoss.com Contact: ATOSS Software AG Christof Leiber / Management board Am Moosfeld 3, D-81829 München Tel.: +49 (0) 89 4 27 71 – 265 Fax: – 100 investor.relations@atoss.com (c)DGAP 31.01.2006 ————————————————————————— language: English emitter: ATOSS Software AG Am Moosfeld 3 81829 München Deutschland phone: +49 (0)89 4 27 71-0 fax: +49 (0)89 4 27 71-100 email: revolution-in-time@atoss.com WWW: www.atoss.com ISIN: DE0005104400 WKN: 510440 indexes: stockmarkets: Geregelter Markt in Frankfurt; Freiverkehr in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service —————————————————————————