Corporate | 24 October 2008 07:58
ATOSS Software AG / Quarter Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Corporate News ATOSS Software AG – Best nine-month result in the history of the company Munich, 24.10.2008 – ATOSS Software AG, the specialist for software solutions revolving around intelligent workforce management and personnel deployment, has succeeded in continuing its growth course. According to preliminary figures, revenue in the first nine months rose by 13% to € 20.1 million (previous year: € 17.8 million). Once again, the results showed disproportionately strong gains on the back of very gratifying sales developments. As of September 30, 2008, operating earnings (EBIT) of € 3.9 million came in at 42% over the previous year figures (€ 2.8 million), representing a sales margin of 20% (previous year: 16%). With this performance ATOSS has already exceeded the complete prior year result in the first three quarters, and is set to generate new record figures in 2008. The consistently strong interest customers are showing in ATOSS solutions underlines the positive outlook. As of September 30, 2008, orders at hand for software licenses were up by 64% to € 2.3 million (previous year: € 1.4 million). With this performance ATOSS Software AG has continued its consistent growth course and has further increased the stability of the business model through the sound increase in orders on the books for software licenses. In view of the strong developments in results the management board has confirmed its forecasts in concrete terms. The last expectations envisaged considerably exceeding the annual forecast of more than € 4 million (previous year: € 3.7 million) in the 2008 business year, and generating EBIT in the region of € 5 million. Strong sales developments in software licenses and consulting After ATOSS had already put in gratifying growth in the first half of 2008, this trend continued in the third quarter. Sales were up by 11% to € 6.7 million (previous year € 6.1 million), with strong demand for consulting particularly conspicuous, in addition to software licenses. All in all, in the first nine months of 2008 ATOSS generated sales gains of 13%, reflected by an increase from € 17.8 million in the previous year to € 20.1 million. In this context, the Munich headquartered software company achieved marked new customer growth especially in the wholesale/retail sector with additional renowned customers being added to the client roster. Rising demand was especially reflected by the strong sales developments in the software licenses and consulting areas. In the first nine months of 2008, sales of software licenses were up by 11% from € 4.0 million to € 4.4 million. Incoming orders for software licenses showed even stronger developments. The gains recorded amounted to 16%, from € 4.1 million to € 4.7 million in the first nine months of 2008. The order book volume for software licenses was even up by 64% over the prior year figures, and rose from € 1.4 million to € 2.3 million. In connection with new projects, consulting sales showed a marked 24% increase from € 4.5 million to € 5.5 million. High stability is a cornerstone of the corporate strategy In connection with the growth in software licenses, the software maintenance area showed consistently positive developments. In the first nine months of 2008 software maintenance proceeds grew by 10% from € 6.8 million to € 7.4 million, and thereby account for 37% (previous year: 38%) of the consolidated sales. Thanks to a customer base built up over the long term, ATOSS enjoys a high level of stability in this area. In addition, ATOSS derives stability in sales due to the fact that software licenses are usually booked according to project progress and not at the time that contracts are concluded. By comparison with the prior year date, the volume of orders on the books rose by 64% from € 1.4 million to the current figure of € 2.3 million. Last but not least, the stability of the company is also ensured by the fact that the considerable reserves of liquid funds amounting to a total of € 15.4 million (previous year: € 14.8 million) are now nearly exclusively invested in interest bearing checking accounts, fixed term deposits or German federal treasury notes with short residual terms. In future too, our investment policies will emphasize the aspect of retaining value, while giving due consideration to changing market conditions. Repeated disproportionately strong performance developments, sales margin now at 20% In the third quarter of 2008 ATOSS generated an operating result in excess of € 1.2 million (previous year: € 0.9 million). With this performance in the period from January to September 2008 EBIT was boosted by 42% to almost € 4.0 million (previous year: € 2.8 million). Net earning (€ 2.7 million following € 1.8 million in the prior year) and earnings per share of € 0.67 (previous year € 0.46) improved disproportionately measured against sales figures. The operating sales margin amounted to 20% following on 16% in the previous year. On the back of continued, extremely positive business developments operating cash flow of € 3.0 million was generated in the third quarter (previous year: € 3.2 million), while liquidity stood at € 15.4 million as of September 20, 2008 (previous year: € 14.8 million). The company’s high financing strength is reflected by the continued very high equity ratio of 59% (previous year: 52%). Low market prices prompt ATOSS to repurchase own shares in October The financial market crises and the very weak markets also impacted strongly on the ATOSS share. In view of the valuation of the company, management has decided to buy back shares. The ratio between the value of the company, i.e. enterprise value (market capitalization net of cash and marketable securities) and the expected EBIT for the 2008 business year is between 2 and 3. According to the share buyback authorization granted at the Annual General Meeting of April 29, 2008, company management had, proceeding on the basis of several board resolutions, purchased a total of 35,343 shares at an average price of € 6.36 per share on the stock market in the period from October 7 to October 17, 2008. Based on the latest resolution, the board reserves the right to buy back up to 14,657 shares up to October 30, 2008, as well as to adopt further share buyback resolutions depending on future valuation scenarios. High order book volume secures growth Considering the results already achieved in the ongoing business year, as well as the marked rise in incoming orders and orders on the books, the management board is assuming continued positive company developments. Following on an operating result of € 3.7 million in the prior year, EBIT in the region of € 5 million is anticipated as of December 31, 2008. With this performance ATOSS Software AG is targeting another record annual performance in the history of the company. CONSOLIDATED OVERVIEW: 9-Month comparison as of September 30, 2008In T€ as 01.01.2008 Proportion 01.01.2007 Proportion Change per IFRS - of total - of total 2008 / 30.09.2008 revenues 30.09.2007 revenues 2007 Sales 20,067 100 % 17,752 100 % 13 % revenues Software 11,840 59 % 10,748 61 % 10 % Software 4,423 22 % 3,990 22 % 11 % licenses Software 7,417 37 % 6,758 38 % 10 % mainten- ance Consult- 5,524 28% 4,467 25 % 24 % ing Hardware 2,080 10 % 2,005 11 % 4 % Miscell- 624 3 % 532 3 % 17 % aneous EBITDA 4,225 21 % 3,155 18 % 35 % EBIT 3,948 20% 2,789 16 % 42 % EBT 3,949 20 % 3,097 17 % 28 % Net 2,679 13 % 1,808 10 % 48 % Income Cash Flow 3,556 18 % 5,477 31 % -35 % Liquidity 15,425 14,841 4 % (1/2) L EPS (in 0.67 0.46 46 % €) Employees 213 192 11 % (3)CONSOLIDATED OVERVIEW: Quarterly comparisonIn T€ as per IFRS Q3/08 Q2/08 Q1/08 Q4/07 Q3/07 Sales revenues 6,748 6,921 6,399 6,670 6,099 Software 4,126 3,996 3,717 3,900 3,728 Software licenses 1,603 1,513 1,307 1,419 1,482 Software maintenance 2,523 2,484 2,410 2,481 2,300 Consulting 1,860 1,894 1,770 1,740 1,489 Hardware 540 814 725 678 644 Miscellaneous 222 216 186 352 184 EBITDA 1,310 1,521 1,395 1,050 1,020 EBIT 1,214 1,429 1,306 941 907 EBIT margin in % 18 % 21 % 20 % 14 % 15 % EBT 1,394 1,549 1,006 1,075 1,028 Net Income 948 1,046 685 693 564 Cash Flow 3,034 -2,513 3,035 -1,325 3,238 Liquidity (1/2) 15,425 12,472 16,375 13,468 14,841 EPS (in €) 0.24 0.26 0.17 0.17 0.14 Employees (3) 213 207 198 195 192(1): Cash and marketable securities; (2): Dividend of € 0.31 per share paid on April 30, 2008 (previous year: 0.24 € on April 27, 2007); (3): At the end of the quarter Upcoming dates: 11.11.2008 Analyst conference, Frankfurt am Main 21.11.2008 Publication of nine months’ statementFurther information: http://www.atoss.com Contact: ATOSS Software AG Christof Leiber / Management board member Am Moosfeld 3, D-81829 Munich Tel.: +49 (0) 89 4 27 71 – 265 Fax: +49 (0) 89 4 27 71 – 100 investor.relations@atoss.comATOSS Software AG, Am Moosfeld 3, D-81829 München Christof Leiber / Vorstand Tel.: +49 (0) 89 4 27 71 – 265, Fax: +49 (0) 89 4 27 71 – 100 investor.relations@atoss.com 24.10.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- 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 Internet: www.atoss.com ISIN: DE0005104400 WKN: 510440 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service ---------------------------------------------------------------------------