Corporate | 27 April 2006 08:00

ATOSS Software AG: Strong sales and earnings in Q1, forecasts upgraded

Corporate-news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Press release ATOSS: Strong sales and earnings in Q1, forecasts upgraded Munich, April 27, 2006 – ATOSS Software AG, the specialist for software solutions revolving around intelligent personnel deployment, has achieved considerable improvements in earnings in connection with an upturn in sales. By comparison with the previous year, sales in the first quarter of 2006 have moved up by 2% to past the € 5.1 million mark; adjusted by the AENEIS disposal (sale effective as per January 1, 2006) the rise is by more than 7%. The operating result (EBIT) amounted to € 0.7 million, following a more or less balanced operating result in the same period last year. The corresponding sales margin came in at 14% (previous year: -1%). Cash flow was also boosted considerably from € 1.3 million to just under € 2.7 million, and earnings per share rose to € 0.13 (previous year: € 0.00). Based on the cash and liquid funds position of € 30.5 million (previous year: € 27.9 million), the proposal will be submitted to the shareholders at the General Meeting on May 2, 2006 to disburse € 5.5 per share from funds not required for essential operational activities. The positive course of business developments at ATOSS notable in the fourth quarter of 2005 continued in the ongoing business year. As anticipated, this sharper focusing of the business model and the portfolio on core business is showing tangible results. In connection with total sales of € 5.1 million, ATOSS succeeded in advancing consulting sales by 11 % to more than € 1.3 million, while software license sales moved ahead by 1% to around € 1.1 million. Adjusted by software license sales generated with the product AENEIS that has been sold in the meantime, the sales increase totaled 8% over the previous year. Apart from higher sales, the disproportionately strong increase in performance is due in particular to the measures taken to improve cost structures, from which ATOSS will also be benefit over the next quarters. In addition, the successful sale of the AENIS software product generated one-time proceeds of € 0.4 million. Performance forecast upgraded To date, the management board had adhered to the forecast issued in November 2005 by which the company anticipated an EBIT margin of 5% for the 2006 business year. In view of the fact that – apart from the sale of AENIS – the operating developments over the last two quarters have been positive and the various cost reduction measures are showing tangible effects, the forecasts are now being upgraded. With a look to the 2006 business year the company now expects an EBIT margin of a minimum of 8% in connection with minimum EBIT of € 1.7 million, without departing from the company’s conservative forecasting policies. Additional improvements are foreseeable given the continuation of the gratifying business developments of the last two quarters, as well as the discontinuation of the expenditures on the convertible bond program setting in. Based on a solid cost structure, ATOSS has gained greater planning security and a considerable measure of earnings strength. Additional scope for profit developments are perceived in the event that sales continue to improve further, especially in the premium market, i.e. business involving client from the upper SME brackets and large-scale corporations. Comparison as of Financial Years to March 31, 2006 according to IFRS (Preliminary Figures for Q1 2006!) TEUR 01.01- Perce- 01.01- Perce- Change .2006 ntage .2005 ntage 2006 – – over 31.03- 31.03- 2005 .2006 .2005 Revenues 5,117 5,030 2% Software 3,056 60% 3,118 62% -2% thereof software 1,074 21% 1,063 21% 1% licenses thereof software 1,982 39% 2,055 41% -4% maintenance Consulting 1,346 26% 1,215 24% 11% Hardware 587 11% 522 10% 12% Other 129 3% 175 3% -26% EBITDA 811 16% 172 3% >100% EBITCB (1) 755 15% 37 1% >100% EBIT 706 14% -43 -1% EBT 862 17% 84 2% >100% Net Income 497 10% 9 0% >100% Cash Flow 2,650 52% 1,348 27% 97% Financial resources 30,543 27,916 9% (2 / 3) EPS (in Euro) 0.13 0.00 >100% Employees (4) 165 180 -8% GROUP OVERVIEW: Quarterly comparison according to IFRS (Preliminary Figures for Q1 2006) TEUR Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Revenues 5,117 5,849 5,001 4,536 5,030 Software 3,056 3,359 2,898 2,770 3,118 thereof software 1,074 1,283 871 784 1,063 licenses thereof software 1,982 2,076 2,027 1,986 2,055 maintenance Consulting 1,346 1,336 1,165 1,247 1,215 Hardware 587 836 619 344 522 Other 129 318 319 176 175 EBITDA 811 944 17 55 172 EBITCB (1) 755 910 -13 -52 37 EBIT 706 830 -93 -132 -43 EBIT-Marge in % 14% 14% -2% -3% -1% EBT 862 980 45 3 84 Net Income 497 510 -19 -40 9 Cash Flow 2,650 -1,177 2,520 -993 1,348 Financial Resources 30,543 27.836 28,823 26,393 27,916 (2 / 3) EPS (in Euro) 0.13 0.13 -0.01 -0.01 0.00 Employees (4) 165 177 181 188 180 (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 Upcoming dates: 02.05.2006 General meeting of shareholders 25.05.2006 Quarterly Report for Q1 2006 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 27.04.2006 ————————————————————————— 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 (Prime Standard); Freiverkehr in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service —————————————————————————