029 Group SE

Earnings Release • Aug 1, 2002

News Details

Ad-hoc | 1 August 2002 08:30

Brainpower N.V. english

Brainpower N.V. 2nd Quarter Financial Results for the period ended June 30, 2002 Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Brainpower N.V. 2nd Quarter Financial Results for the period ended June 30, 2002 Improving Performance Despite Market Conditions – Revenues of EUR 1.9 million represent a 6% increase over 2nd Quarter 2001 – EBITDA losses before restructuring costs decline for 5th consecutive quarter – Cost reduction plan will contribute EUR 2.5 million in annual savings – Total contract revenue backlog remains stable at EUR 9.3 million – Revolutionary new products launched – Reuters signs global agreement with Brainpower Brainpower (Neuer Markt: BPW), provider of investment analysis and decision- support software tools for the investment community, today announces financial results for the quarter ended June 30, 2002. Rocco Pellegrinelli, Chairman and Chief Executive Officer of Brainpower, commented: “Market conditions were challenging in the second quarter and have remained so into the third quarter. Revenues for the quarter equaled EUR 1.9 million, up slightly from revenues of EUR 1.8 million for the corresponding period last year. As a result of successfully implementing our recently announced cost cutting programs we were able to bring operating costs below estimates to EUR 3.26 million, excluding restructuring costs of EUR 0.5 million. This compares favorably with operating costs of EUR 3.37, excluding restructuring costs of EUR 0.1 million, in the first quarter of this year and EUR 4 million in the corresponding period of 2001. While our customers, primarily large financial services companies, will likely remain guarded with their IT spending over the remainder of the year, we are seeing increased interest in our products. Each new business pipeline in our five key target markets is robust with interest coming from hedge fund managers, fund of fund managers, private banks, and global investment banks. As a result, we are confident of meeting our target of EBITDA breakeven by the end of this year, but on lower expected revenue of approximately EUR 6 million for second half of the year. I am particularly proud of several achievements reached during this quarter. We launched our exciting browser-based products, StockXceed and FundXceed. These products place sophisticated investment analytics, including portfolio optimization, decomposition, and attribution in the hands of users throughout entire organizations. Initial response from potential customers has been very positive. Our agreement announced at the beginning of July with Reuters is particularly exciting. Integration of Brainpower technology with the Reuters Investor and Reuters Market Monitor products is currently underway and should be completed by the end of the third quarter. We expect to see significant revenue impact in 2003 from this deal. Third party agreements such as these are an integral part of our strategy and I’m happy to say that we are currently in discussions with several more world- class organizations, which will likely bear fruit in the near future. New customers gained during the period included, among others, a private bank in Germany and our first clients in both Luxembourg and Canada.” end of ad-hoc-announcement (c)DGAP 01.08.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Bill Holwell, Chief Financial Officer, commented; “EBITDA losses (earnings before interest, taxes, depreciation and amortization) before restructuring costs reduced for the fifth consecutive quarter to EUR 1.7 million, reflecting initial benefits from the cost reduction program launched during the period. Brainpower ended the quarter with cash and cash equivalents of EUR 8 million, which is sufficient to fund operations until the Company reaches EBITDA breakeven and beyond. Shareholders equity as of June 30, 2002 was EUR 10.6 million. Our net loss was EUR 2.6 million for the quarter, which includes EUR 0.5 million of restructuring costs. Looking forward we expect, as a result of these initiatives and others in progress, to generate revenues of approximately EUR 20 million and earnings before interest and taxes of approximately EUR 3 million for the full year 2003.” “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.” 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 represented in major financial centers including: Amsterdam, Frankfurt, Hong Kong, London, Lugano, Milan, Madrid, New York and Zurich. For further information see: 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 010830 Aug 02