Corporate | 4 May 2005 07:30

secunet AG: Double-digit, profitable growth in the first quarter of 2005

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Double-digit, profitable growth in the first quarter of 2005 – Revenues up 74% to EUR 7.5 million – EBIT comes in at EUR 0.8 million (previous year: EUR -0.6 million) – High volume of orders on hand worth EUR 14.7 million (previous year: EUR 7.8 million) [Essen, 4 May 2005] secunet Security Networks AG, leading European provider of IT high-security products and services, started the 2005 fiscal year with a high double-digit growth in revenues. Revenues rose to EUR 7.5 million, up 74% compared to the previous year. Continuing the positive trend established in previous quarters, secunet finished the first quarter of 2005 with a profit of EUR 0.4 million. secunet Security Networks AG boosted its revenues from EUR 4.3 million to EUR 7.5 million in the first quarter of 2005, which represents an increase of 74% versus the previous year. This revenues growth is due both to acquisition effects and organic growth. Excluding the acquisition effect resulting from the April 2004 takeover of Secartis AG, secunet recorded an organic growth rate of just under 30%. “Our portfolio of products and services focuses on the IT high-security market, especially on the specific needs of German and international government authorities and organizations,” says Dr. Rainer Baumgart, CEO of secunet Security Networks AG. “This strategic orientation is validated by the market’s recognition of our unique expertise and the sustained, high demand for secunet’s products and services.” secunet completed the first profitable first quarter in its history. Net income after tax for the quarter was EUR 0.4 million; earnings per share were EUR 0.06. This continues and supports the turnaround in earnings, which began in the third quarter of 2004. Three aspects contribute to the positive result: high capacity utilization, growing licensing revenues, and a disproportionately low increase in variable expenses compared to revenues. Personnel expenses, for instance, rose by about 37% from just under EUR 3.0 million last year to EUR 4.0 million in the first quarter of 2005. The increase is primarily due to the higher number of staff as a result of the takeover of Secartis AG. The company’s workforce grew from 172 on 31 March 2004 to 206 at the end of the first quarter of 2005. Amortization, depreciation and other operating expenses grew slower than revenues. Cost of materials is the only expense item to show a disproportionately high increase of 124%, from EUR 0.9 million in 2004 to EUR 2.0 million in 2005. This increase is caused by secunet’s project structure. The other operating income of secunet Security Networks AG showed a strong increase compared to the same period last year. This is due to the reversal of provisions for follow-up costs from fiscal year 2004. secunet recorded positive earnings before interest and taxes (EBIT) of EUR 0.8 million in the first quarter of 2005. This is a turnaround compared to the previous year, in which secunet reported a negative EBIT of EUR 0.6 million. Taking into account the financial result (EUR 0.04 million, up 5% compared to 2004), earnings before taxes came in at EUR 0.9 million. This compares to a negative EBIT of EUR 0.5 million in 2004. Net income (after tax) was EUR 0.4 million. Earnings per share were EUR 0.06. “The positive development of earnings is primarily the result of our continued efforts to optimize processes and reduce costs,” explains Dr. Rainer Baumgart. “We will continue to pursue this policy in the interest of both our employees and shareholders.” The high volume of orders on hand at the end of the first quarter is grounds for optimism: secunet has secured orders worth EUR 14.7 million, up 88% from the previous year (EUR 7.8 million). The management expects the strong demand for the products and services of secunet and the positive development of business to continue in the next months. The 3-Month Report 2005 in PDF format and further information is available at http://www.secunet.com . The annual general meeting of secunet Security Networks AG will take place in Essen on 9 June 2005. Contact: Dr. Kay Rathke Head of Investor Relations & Public Relations secunet Security Networks AG Phone: +49 (0) 254 123 127 Fax: +49 (0) 254 123 456 E-mail: presse@secunet.com http://www.secunet.com End of announcement (c)DGAP 04.05.2005 —————————————————————————— WKN: 727650; ISIN: DE0007276503; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 040730 Mai 05