Corporate | 25 October 2006 08:19

ATOSS Software AG: ATOSS continues record performance

Corporate news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Munich, October 25, 2006 – In the third quarter of 2006, ATOSS Software AG has not only succeeded in continuing this year’s gratifying business developments, but has considerably stepped up the pace of its earnings growth over the previous quarters. On the back of an 11% sales increase over Q3 2005, and a rise of a full 13% adjusted by the AENEIS product sold on January 1, 2006, the EBIT margin of 14% documents the earnings strength attained in the meantime in an impressive manner. Against this backdrop, the Munich headquartered software specialist for intelligent personnel deployment had already raised its own forecasts in an ad hoc press release issued on October 11, 2006. The management board has now upped the anticipated target figures for the third time, and is regarding operating earnings (EBIT) in 2006 of at least € 2.7 million (previous figure: minimum of € 2.3 million), in connection with a sales margin (EBIT) of at least 12% (previously 11%) as a realistic expectation. The income-to-equity ratio is also expected to climb sharply from 2% to around 18%. In the third quarter of 2006 ATOSS succeeded in boosting its sales over the same period last year by 11% to € 5.5 million (previous year: € 5.0 million) and generated a considerably improved operating result (EBIT) of € 0.8 million (previous year: € -0.1 million). The resulting sales margin climbed sharply from -2% to a new peak figure of 14%. In this context, ATOSS generated especially strong growth in software licenses – adjusted by AENEIS – of 50% to more than € 1.2 million. As of September 30, 2006, total sales amounted to € 15.9 million (previous year: € 14.6 million), whereby considerable gains were recorded in the software licenses and hardware areas. Sales of software licenses moved up by 24% from € 2.7 million to almost € 3.4 million, while hardware sales increased by 28% from € 1.5 million to € 1.9 million. Based on the gratifying business developments and the improved cost structure achieved by the sale of the AENEIS software product and the discontinuation of the respective business activities, the operating result (EBIT) improved by around € 2.4 million. As of September 30, 2006, it stood at € 2.1 million following on € -0.3 million in the previous year, and the EBIT margin moved up to 13% following on -2% in the previous year. Earnings per share were recorded as of September 30, 2006 at € 0.36 after € -0.01 in the previous year. Cash flow at € 5.4 million – comfortable liquidity reserves Based on the gratifying business developments, operating cash flow after the first nine months on the ongoing 2006 business year stood at € 5.4 million, which is 86% above the year-on-year figure of € 2.9 million. In spite of the disbursement of liquid funds not essential for operational purposes of € 5.50 per share on May 3, 2006, liquidity reserves amount to a comfortable sum of € 11.7 million (previous year: € 28.8 million). The capital-to-assets ratio of 52% (previous year: 80%) reflects sound balance sheet structures. R&D remains a focus In continuation of the past years, ATOSS remains committed to R&D and new technologies as well as industry solutions. Within the context of the ‘Zukunft Personal 2006’ trade fair event in Munich, the new ATOSS Staff Efficiency Suite 3.4 was unveiled. This modular, state of the art standard software integrates a wide range of functions for intelligent personnel deployment and – thanks to programming in Java – ensures platform independence, investment security and the highest possible adaptability for individual company processes. Significant increase in results anticipated After the third revision of the company’s own earnings forecasts, the ATOSS management board is expecting an operating result of at least € 2.7 million, which equates to a sales margin of a minimum of 12%. This reflects how well the Munich-headquartered software specialists have developed during the ongoing year. An EBIT of € 2.7 million would represent a significant increase over the previous year’s figure of € 0.6 million. In addition, this target profit figure would considerably exceed the record to date of € 2.3 million which was set in the 2003 business year. GROUP OVERVIEW : 9-month comparison according to IFRS (Preliminary Figures for 2006) TEUR 01.01- Perce- 01.01- Perce- Change .2006 ntage .2005 ntage 2006 – – over 30.09- 30.09- 2005 .2006 .2005 Re Revenues 15,930 100% 14,566 100% 9% Software 9,470 59% 8,785 60% 8% thereof software 3,360 21% 2,718 19% 24% licences thereof software 6,110 38% 6,067 42% 1% maintenance Consulting 4,069 26% 3,627 25% 12% Hardware 1,909 12% 1,485 10% 28% Other 486 3% 670 5% -27% EBITDA 2,412 15% 244 2% >100% EBITCB (1) 2,177 14% -28 0% >100% EBIT 2,095 13% -267 -2% >100% EBT 2,385 15% 132 1% >100% Net Income 1,396 9% -51 0% >100% Cash Flow 5,358 34% 2,875 20% 86% Financial resources 11,664 28,823 -60% (2 / 3) EPS (in Euro) 0.36 -0.01 >100% Employees (4) 171 181 -6% GROUP OVERVIEW : Quarterly comparison according to IFRS (Preliminary Figures for Q3) TEUR Q3/06 Q2/06 Q1/06 Q4/05 Q3/05 Revenues 5,538 5,275 5,117 5,849 5,001 Software 3,346 3,068 3,056 3,359 2,898 thereof software 1,248 1,038 1,074 1,283 871 licenses thereof software 2,098 2,030 1,982 2,076 2,027 maintenance Consulting 1,361 1,362 1,346 1,336 1,165 Hardware 648 671 587 836 619 Other 184 173 129 318 319 EBITDA 910 692 811 944 17 EBITCB (1) 819 604 755 910 -13 EBIT 802 587 706 830 -93 EBIT-Margin in % 14% 11% 14% 14% -2% EBT 856 666 862 980 45 Net Income 542 358 497 510 -19 Cash Flow 2,600 107 2,650 -1,177 2,520 Financial Resources 11,664 9,119 30,543 27,836 28,823 (2 / 3) EPS (in Euro) 0.14 0.09 0.13 0.13 -0.01 Employees (4) 171 162 165 177 181 (1): EBIT before cost of employee participation program arising from convertible bonds (2): Liquid funds and marketable securities (3): Disbursement of € 5.50 per share on May 3, 2006 (4): at the end of quarter Upcoming dates: 17.11.2006 Quarterly Report for Q3 2006 27.11.2006 Analyst meeting Frankfurt am Main 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: +49 (0) 89 4 27 71 – 100 investor.relations@atoss.com (c)DGAP 25.10.2006 ————————————————————————— Language: English Issuer: 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 E-mail: revolution-in-time@atoss.com WWW: www.atoss.com ISIN: DE0005104400 WKN: 510440 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service —————————————————————————