Ad-hoc | 8 August 2002 08:00

BETA Systems Software english

RESULTS FOR THE SECOND QUARTER AND THE FIRST HALF YEAR 2002 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– RESULTS FOR THE SECOND QUARTER AND THE FIRST HALF YEAR 2002 – Revenues increased by 11.8% to Euro 21.2 million in the first half of 2002 – Management Board agrees comprehensive action plan for Storage Management business unit Berlin, August 8, 2002 – Beta Systems Software AG, Berlin, a leading provider of high-performance intelligent data management solutions, today announced its results for the second quarter and the first half year ended June 30, 2002. Financial Highlights Second Quarter 2002 – Revenues stabilized at Euro 10.2 million (Q2 2001: Euro 10.2 million) – Provisions of Euro 1.0 million recognized in connection with implementation of action plan for Storage Management business unit – Net loss incl. provisions was Euro 0.5 million or Euro 0.12 per share (Q2 2001: net loss of Euro 6.4 million or Euro 1.61 per share) – Operating loss incl. provisions reduced by 66.9% to Euro 1.8 million (Q2 2001: operating loss of Euro 5.5 million) – Loss before taxes incl. provisions reduced by 76.2% to Euro 1.1 million (Q2 2001: loss before taxes of Euro 4.8 million) Financial Highlights First Half 2002 – Revenues increased by 11.8% to Euro 21.2 million (HY 2001: Euro 19.0 million) – Slight net loss of Euro 162,000 or Euro 0.04 per share (HY 2001: net loss of Euro 7.2 million or Euro 1.81 per share) – Loss before taxes incl. provisions reduced to Euro 0.4 million (HY 2001: Euro 6.1 million) – Positive cash flow amounting to approx. Euro 7.4 million in the first half of 2002 – Cash and cash equivalents of Euro 20.9 million end of ad-hoc-announcement (c)DGAP 08.08.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Management Comments Commenting on the results, Karl-Joachim Veigel, CEO of Beta Systems, stated: “In contrast to the general market trend witnessed in the software sector, we have been able to stabilize our revenue performance. Our Company achieved moderate growth in the first half of fiscal 2002, as expected. We are pleased to announce that our Document/Output Management business unit recorded revenue growth of nearly 20%; it once again operated profitably in the second quarter, as did our Data Center Management unit.” Mr. Veigel added, “Despite intense sales efforts and investments in our North American Storage Management business unit, Beta Systems has had to contend with lengthened customer decision-making cycles and the postponement of some IT projects. This has forced us into implementing far-reaching measures in North America. As a result, we have had to make some necessary provisions, which have had a direct impact on our quarterly results.” Mr. Veigel concluded: “Otherwise, our ‘Eight Step’ Turnaround Program is still on track, and – especially relative to the situation faced by many other software vendors – it is having a much more positive effect on results compared with the previous year. Although the outlook for the second half of 2002 has deteriorated somewhat, we are still expecting revenue growth of around 10%, with positive earnings before taxes.” Action plan for Storage Management business unit Due to the prevailing weakness in the IT sector and the continued difficulties experienced in the US, the Management Board and the Supervisory Board of Beta Systems Software AG do not expect to see a sustained recovery in demand in North America or an amortization of invested funds via revenue inflows in the area of Storage Management within the near future. Therefore, the board has agreed on an action plan for the Storage Management business unit. This encompasses the closure of the subsidiary in Boulder, Colorado, USA, as well as the streamlining of costs in line with the current revenue potential in North America and the search for a strategic partner within the Storage market who is also prepared to invest in the Tantia development unit in Calgary, Canada. Talks with potential partners are already underway. In the second quarter of 2002, Beta Systems recognized provisions of Euro 1.0 million within the Group in order to safeguard the measures necessary as part of this program. These have had a direct impact on the quarterly results. The aim of this action plan is to ensure that the financial targets of Beta Systems Software AG for fiscal 2002 can be realized. Conference Call The Management Board will comment on the financial results for Q2 2002 as part of a conference call to be held on August 8, 2002. The conference call will take place at 10:30 CET. Dial-in number +49 (0)6074 8648 (Access Code: “betasystems”). After conclusion of the conference call, an instant replay service will be available for 24 hours. The recording can be accessed by calling +49 (0)6074 864888. If there are any questions prior to the conference call, please do not hesitate to contact Mr. Arne Bassler on +49 (0)30 726 118 170. Beta Systems Software AG, Berlin, Germany Beta Systems Software AG, (Neuer Markt: BSS), is a leading provider of high performance intelligent data management solutions. The Company supplies software that allows companies to streamline and manage their Data Center, Storage and Document Management processes. Beta Systems specializes in the automation and optimization of its customer’s voluminous data processes, focusing on the handling, storage and distribution of data and documents in the most cost effective and intelligent way. Beta Systems’ clients are typically large organizations in the industry, finance, telecommunications, energy, service and public sectors whose traditional methods of data management involved cumbersome time, money and other resources consuming procedures. Many of the solutions developed by Beta Systems are open architecture in nature and create an information infrastructure that reduces the past complexities of information management. Beta Systems’ products are distributed worldwide by its own and partner organizations. The Company has been publicly traded since 1997 and has 334 employees worldwide (as of December 2001). For more information, please visit the corporate homepage at http://www.betasystems.com. Contacts: Investor Relations Arne Bassler Beta Systems Software AG Tel.: +49 (0)30 726 118 -170 Fax: +49 (0)30 726 118 -881 e-mail: arne.bassler@betasystems.com ——————————————————————————– WKN: 522 440; ISIN: DE0005224406; Index: Listed: Neuer Markt Frankfurt und im Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, München und Stuttgart 080800 Aug 02