029 Group SE

Earnings Release • Nov 4, 2002

News Details

Ad-hoc | 4 November 2002 08:31

Brainpower N.V. part 2

3rd Quarter Financial Results for the period ended Sept. 30, 2002 (Part2 of 2) Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Two client websites went live using our investment analytics for retail investors during the quarter, Skandia Leben in Switzerland and TD Waterhouse in the UK. Unfortunately, due to pressures on their business models, Zurich Financial Services and Self Trade have cancelled or allowed their contracts to expire. Another significant event was the German stock exchange’s announcement on September 26 of a reorganization of equity trading into two segments with different transparency standards for listed companies – the Prime Standard and Domestic Standard. This reorganization is intended to increase market transparency and investor confidence by establishing an equity market with the highest transparency standards in Europe. Brainpower currently complies with each of the strict criteria for inclusion in the Prime Standard and our management board firmly supports this initiative to improve investor confidence and increase the attractiveness of the capital market for issuers and international investors alike. ” Bill Holwell, Chief Financial Officer, commented: “EBITDA losses (earnings before interest, taxes, depreciation and amortization) before restructuring costs reduced for the sixth consecutive quarter to EUR 1.54 million, reflecting continued benefits from the cost reduction program launched during the previous period. In addition, it is important to announce that our Italian subsidiary reached breakeven before interest and taxes in the third quarter. This is very significant due to the fact that, of our five key markets, Italy contributes the largest share of Company revenues. Brainpower ended the quarter with cash and cash equivalents of EUR 5.9 million, which is sufficient to fund operations until the Company reaches EBITDA breakeven and beyond. Shareholders’ equity as of September 30, 2002 was EUR 8.7 million. Our net loss was EUR 1.96 million for the quarter, which includes EUR 164,000 restructuring costs. Looking forward to next year, we are currently forecasting revenues, with help from our new products and Reuters’ agreement, of approximately EUR 16 million and given our existing infrastructure, we expect to achieve EBIT of approximately EUR 2 million.” “This press release contains forward looking statements which involve risks and uncertainties. The actual performance, results and timing of the business of Brainpower N.V. could differ materially from the performance, results and timing discussed in this press release. This press release is not distributed in or into the United States of America.” end of ad-hoc-announcement (c)DGAP 04.11.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: ABOUT BRAINPOWER Brainpower is a developer and supplier of investment analysis and decision support tools for investment professionals and online financial service providers. Brainpower’s solutions are differentiated by their advanced capabilities to support enhanced decision-making for investment professionals and their clients, including retail investors. Customers include leading players in the fields of asset management, private banking and online financial services. Brainpower is currently represented in major financial centers including: Amsterdam, Frankfurt, London, Lugano, Milan, Madrid, New York and Zurich. For further information visit: http://www.brainpowerweb.com (English) or http://www.brainpower.de (German), or contact: Curtis E. Fox Director, Communications & Investor Relations Brainpower N.V. Tel: +44 (0) 20 7392 7100 Email: cfox@brainpowerweb.com ——————————————————————————– WKN: 553169; ISIN: NL0000238228; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Hamburg, Hannover, Düsseldorf, Stuttgart und München 040831 Nov 02