Ad-hoc | 27 March 1998 06:30

Ad hoc-Service: BETA Systems Software AG BETA 26.03.e

—————————————————————— Ad hoc-Service: BETA Systems Software AG BETA 26.03.e Mitteilung gemäß Paragraph 15 WpHG übermittelt von der DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Immediate press release BETA Systems Software AG, Berlin, 27.März 1998 Announcement of 1997 Fourth Quarter and audited Annual Results Revenue growth despite product implementation challenges 1997 fourth quarter total net revenues of TDM 26,078 show a year over year increase of 3.7%, (1996: TDM 25,136). The Company tackled product transition issues related to version upgrades of BETA 92 and 93 in the fourth quarter which had an impact on total net sales for the quarter. Despite these difficulties, revenues for the full year were up 20.9% from TDM 56,524 to TDM 68,038. Cost and Margin Development Fourth quarter development of the Company’s cost of goods sold shows an increase of 11.2% from the same period in 1996. On an annual basis 1997 cost of goods sold grew by 11.9%. Gross profit in the fourth quarter of 1997 increased 2.7% from TDM 22,028 to TDM 22,623. Gross margin decreased slightly from 87.6% to 86.8%. Selling, general and administrative, and R&D expenses increased from TDM 12,553 to TDM 13,622 (8.5%) in the 1997 fourth quarter. On an annual basis, these expenses increased from TDM 36,588 to TDM 45,858 (25.3%). As a percentage of revenues, selling, general and administrative, and R&D expenses were 49.9% and 52.2% in the fourth quarters of 1996 and 1997, respectively, and, on an annual basis, 64.7% and 67.4%, respectively, for 1996 and 1997. The total operating income for the fourth quarter declined on a quarterly basis by 5.4% to TDM 8,771 as against TDM 9,269 (Q4:1996). However, on an annual basis, operating income grew from TDM 5,600 in 1996 to TDM 8,125 in 1997. (The 1996 amount reflects a one-time in-process research and development charge of TDM 1,896 related to the acquisition of Pecan Software.) Tax rate development BETA Systems’ tax rate for the fourth quarter of 1997 was 62.4%; the rate for the same period of 1996 was 50.2%. The 1997 annual rate was 67.2%, compared to 77.6% for 1996. Net Income and Earnings per Share Fourth quarter net income declined from TDM 4,460 in 1996 to 3,404 in 1997 due substantially to the higher effective tax rate in the 1997 fourth quarter. Net income for the full year increased by 135,8% from TDM 1,147 in 1996 to TDM 2,705 in 1997.Net income per ordinary share assuming full dilution (on the weighted average number of shares outstanding) in the fourth quarter of 1997 amounted to DM 1.85 as against DM 4.25 (Q4:1996) as a result of lower net income (as described above), combined with an increase in the number of shares outstanding due to the Company’s June IPO. For the full year, net income per ordinary share grew by 70.6% from DM 1.09 in 1996 to DM 1.86 in 1997. Financial Position BETA Systems’ strong balance sheet at December 31, 1997 reflects cash and short term investments of TDM 55,594, and total debt of TDM 1,966. The increase in equity from TDM 6,818 at December 31, 1996 to TDM 80,242 at December 31, 1997 reflects the capital increase from the IPO. The equity ratio increased from 15.3% to 76%, providing a strong base for the Company’s future. Berlin, March 27, 1998 Company Contact: Reinhard Stary Vice President Corporate Controlling and Investor Relations Phone: ++49 30 399 26 158 Fax: ++49 30 399 26 294 Alt Moabit 97a, D-10559 Berlin, Germany Internet: www.betasystems.com BETA Systems Software AG page 1 26.03.98, 20:39 Ende der Mitteilung