Corporate | 10 November 2005 08:02

secunet AG: 9-Month Report 2005 – Record earnings and strong revenues growth

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— – Revenues up 42% to EUR 26.5 million – Nine-month net income of EUR 1.9 million – High volume of orders on hand – Guidance for 2005 confirmed [Essen, 10 November 2005] secunet Security Networks AG (ISIN DE 0007276503), leading European provider of IT high-security products and services, continued its profitable course of growth in the third quarter of 2005. In the first nine months of fiscal year 2005, secunet boosted revenues by 42% year-on-year and generated an EBIT margin in excess of 10%. secunet’s revenues increased from EUR 18.7 million during the first three quarters of 2004 to EUR 26.5 million in 2005. Organically, i.e. without taking the 2004 acquisition of Secartis AG into account, which was not included in the scope of consolidation until April 2004, revenues rose by more than 31% compared to the previous year. Organic growth in the third quarter alone was over 23%. The positive performance in terms of earnings has also resulted in a sustained improvement of secunet’s profitability. The company increased its earnings before interest and taxes (EBIT) to EUR 2.9 million. This compares to earnings of EUR -0.6 million in the first nine months of 2004. secunet’s EBIT margin from January to September 2005 was 10.9%. Looking at the third quarter of 2005 alone, secunet more than doubled its EBIT from EUR 0.6 million to EUR 1.3 million compared to the previous year. secunet achieved an EBIT margin of 12.6% in the third quarter of 2005. Earnings per share in the third quarter were EUR 0.13. In the first nine months, secunet earned EUR 0.29 per share, compared to earnings per share of EUR -0.06 in 2004. secunet can thus report the best quarterly and nine-month result in its history. “By delivering this record result, we have once again demonstrated the power of our business model,” comments Dr. Rainer Baumgart, chief executive officer of secunet Security Networks AG. “As high-quality IT security will remain in high demand, we are very optimistic as regards our future.” Three factors have contributed to the positive result since the beginning of the year: high capacity utilization, increased licensing revenues, and a disproportionately low increase in variable expense items compared to revenues. Personnel expenses rose by 17% year-on-year, from about EUR 10.8 million to EUR 12.6 million. In the third quarter, the increase in personnel expenses was about 6%. At 206, the number of employees as of 30 September 2005 was almost unchanged compared to 30 September 2004 (205). Amortization, depreciation and other operating expenses grew slower than revenues. Cost of materials were up about 71%, from EUR 4.3 million in 2004 to EUR 7.4 million in 2005. The increase in other operating income compared to the same period last year is due to the reversal of provisions for follow-up costs from fiscal year 2004. A large portion of this operating income was already accounted for in the first quarter of 2005. Earnings before taxes for the first nine months of 2005 were clearly positive at EUR 3.0 million, compared to earnings of EUR -0.5 million in the first three quarters of 2004. Positive earnings of EUR 1.3 million were also recorded in the third quarter of 2005. The nine-month result improved from EUR -0.4 million to EUR 1.9 million. Net income for the quarter (after tax) was EUR 0.8 million. Orders on hand at secunet as of 30 September 2005 amounted to about EUR 21.5 million. This represents an increase of 21% compared to last year’s figure of EUR 17.8 million. The continued strong demand for consulting services and solutions from secunet and the generally positive outlook for the IT high-security market allow for further optimism as regards the future. The board of management of secunet Security Networks AG therefore specified its revenues forecast for 2005 and upped its earnings in mid-October. The board now expects to report revenues between EUR 38 and 40 million and an EBIT margin of about 10%. The 9-Month Report of secunet Security Networks AG in PDF format and further information is available at http://www.secunet.com . Contact: Dr. Kay Rathke Head of Investor Relations & Public Relations secunet Security Networks AG Kronprinzenstraße 30 45128 Essen/Germany Tel.: +49 (0)201 5454 127 Fax: +49 (0)201 5454 456 E-mail: presse@secunet.com http://www.secunet.com End of announcement (c)DGAP 10.11.2005 —————————————————————————— WKN: 727650; ISIN: DE0007276503; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart