Ad-hoc | 22 February 1999 08:25

Ad hoc-Service: BETA Systems Software AG engl

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— For immediate release BETA Systems Software AG, Berlin, February 22, 1999 BETA Systems Announces Preliminary 1998 Annual Results Highlights: * 1998 revenue up 12% to approximately DM 76 million * HARBOR acquisition charges cause pre-tax loss * Steps taken to accelerate future growth Berlin, February, 22, 1999. BETA Systems Software AG, Berlin (Neuer Markt: BSS), a leading developer of innovative systems management software products, announced preliminary (unaudited) results for the year ended December 31, 1998. Revenues in 1998 increased to approximately DM 76 million, up 12% over 1997. Earnings before taxes, prior to non-recurring items, were approximately DM 6.4 million as compared to DM 8.3 million in 1997. The Company’s total license revenues consist of different components. Revenue generated from new license sales is the central part, with version upgrades and CPU upgrades also major contributors. Despite the strong increase in CPU upgrades in 1998, BETA Systems was unable to compensate for a decrease in version upgrades of BETA 92 and BETA 93 and lower than anticipated growth in new license and related maintenance revenues which resulted in lower than expected revenue growth overall. The Company’s earnings before taxes declined as compared to 1997 as a result of lower than anticipated revenue growth and were further affected by non-recurring charges of around DM 21 million, primarily resulting from the acquisition of HARBOR Systems, Ltd. After non-recurring charges, the Company’s pretax loss is estimated at DM (15) million. Although BETA Systems did not meet its sales targets in 1998, it is undertaking important steps designed to position the Company for future growth and enhance its competitive position. In the second half of 1998, BETA Systems extended its existing product lines through strategic acquisitions and cooperation agreements with HARBOR Systems, Ltd. (Canada), Diacom Inc. (USA), NorCom (Germany) and QMaster Solutions (Canada). The investment in HARBOR is an important step in the new strategic direction of the Company to become a major player in the enterprise systems management market. It allows BETA Systems to expand its customer base worldwide and accelerates its participation in the fast growing UNIX and Microsoft NT markets. “In order to enhance shareholder value, we are committed to realign our cost structure to adjust to current revenue growth rates,” said Christiane Hotz-Firlus, Chief Financial Officer of BETA Systems. “Despite our difficulties in the past year, we were able to expand our customer base adding a number of impressive companies and expect, with our new partners, to intensify BETA Systems’ sales development.” The Company expects to report detailed 1998 numbers on March 11, 1999. Company Contact: Matthias Poth Manager Investor Relations BETA Systems Software AG Phone: 0049 30 399 26 158 Fax: 0049 30 399 26 289 Alt Moabit 97 a 10559 Berlin, Germany Internet: www.betasystems.com Ende der Mitteilung