Ad-hoc | 8 November 2002 08:00

BETA Systems Software english

RESULTS FOR THE THIRD QUARTER 2002 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– RESULTS FOR THE THIRD QUARTER 2002 – Third quarter profitable despite fall in revenues – Results were close to break even for the first nine months of 2002 Financial Highlights Third Quarter 2002 – Third quarter returned to profitability: earnings before taxes of Euro 0.3 million (Q3 2001: loss before taxes of Euro 1.4 million) – Revenues dropped by 9.4% to Euro 9.4 million (Q3 2001: Euro 10.4 million) – Costs were reduced by 9.1%: operating expenses fell by nearly Euro 1.0 million to Euro 7.6 million (Q3 2001: Euro 8.4 million) – Operating loss was reduced by 33.4% to Euro 0.5 million (Q3 2001: loss of Euro 0.8 million) – Slight net loss of Euro 209,000 or Euro 0.05 per share (Q3 2001: net loss of Euro 1.6 million; net loss of Euro 0.40 per share) Financial Highlights First Nine Months 2002 – Results were close to break even: loss before taxes limited to Euro 111,000 (9M 2001: loss of Euro 7.4 million) – Revenues increased by 4.3% to Euro 30.6 million (9M 2001: Euro 29.4 million) – Costs were reduced by more than 10%: operating expenses fell by Euro 3.5 million to Euro 25.7 million (9M 2001: Euro 29.2 million) – Comprehensive turnaround measures began to take effect: slight net loss of Euro 372,000 or Euro 0.10 per share (9M 2001: net loss of Euro 8.7 million or Euro 2.21 per share) – Positive cash flow amounted to approx. Euro 4.1 million in the first nine months of 2002 – Substantial cash and cash equivalents of Euro 17.8 million Due to the current economic uncertainties, in fiscal 2002 Beta Systems expects to achieve revenues comparable to those seen in the previous fiscal year. Based on the information currently available, the Management believes that the Company will post positive pre-tax earnings for the full fiscal year 2002, which is also a tribute to the favorable development witnessed in the third quarter. end of ad-hoc-announcement (c)DGAP 08.11.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Berlin, November 8, 2002 – Beta Systems Software AG, Berlin, a leading provider of high-performance intelligent data management solutions, today announced its results for the third quarter and the first nine months ended September 30, 2002. Management Comments Commenting on the results, Karl-Joachim Veigel, CEO of Beta Systems, stated: “The fall in license revenues in the third quarter was a direct result of extremely difficult trading conditions witnessed throughout the entire software industry. We are expecting to see a long-term change in our customers’ investment behavior, characterized by extended decision-making cycles, the postponement of projects and budgetary cuts in the area of information technology (IT).” Mr. Veigel added, “Despite the prevailing economic malaise, we have been able to encourage several customers to make substantial long-term investments in Systems Management software developed by Beta Systems. The year-on-year rise in maintenance revenues of nearly 10 percent is proof of our strong position as a trusted and long-term partner to our customers. At the same time, our incisive implementation of an ‘Eight Step’ turnaround program has prepared Beta Systems for the difficult economic conditions we are currently having to contend with. Aided by these measures, we have succeeded in reining back spending and improving efficiency levels when it comes to operating activities. As a direct result, the Company has managed to return to profitability in the third quarter despite lower sales.” “Our business units Document/Output Management and Data Center Management have been operating profitably for four quarters in succession. As regards to our Storage Management business unit, we have implemented the measures announced in the second quarter and will be completing this action plan in the course of the fourth quarter. We are confident that turnaround within this area will be achieved by the end of 2002, to such an extent that this business unit will no longer be generating negative results,” said Mr. Veigel. Mr. Veigel concluded: “Due to the current economic uncertainties, in fiscal 2002 Beta Systems expects to achieve revenues comparable to those seen in the previous fiscal year. However, based on the information currently available to us, we believe that the Company will post positive pre-tax earnings for the full fiscal year 2002, which is also a tribute to the favorable development witnessed in the third quarter.” Conference Call The Management Board will comment on the financial results for the third quarter of 2002 as part of a conference call to be held on November 8, 2002. The conference call will take place at 11:00 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) 69 – 56 60 81 11 (Access-Code: 124 329). Contact 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 Nov 02