029 Group SE

Earnings Release • Jul 29, 2003

News Details

Ad-hoc | 29 July 2003 08:30

Brainpower N.V. english

Brainpower (Frankfurt: BPW), announces results for the second quarter 2003. Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Brainpower (Frankfurt: BPW), announces results for the second quarter 2003. Revenue backlog increases : sales outlook positive ·Best quarter for New Business signed (excluding software development) ·Revenues increase 3% over first quarter results to 1.46 million Euros ·Total revenue backlog increases by 15% ·Italian subsidiary EBIT positive for second consecutive quarter ·New cost reduction plan to contribute 1.5 million Euros in annual savings Rocco Pellegrinelli, Chairman and CEO, commented: ‘Revenues for the quarter ended June 30, 2003 equaled 1.46 million Euros, up from 1.42 million Euros in the previous quarter. The Company achieved new business with a total annual contract value of 867,000 Euros in the quarter; the highest level of new business, excluding software development, attained by Brainpower. In addition, the Company was able to extend a number of key contracts with existing customers during the quarter, which also helped to expand our total revenue backlog. This shows that we continue to offer superior investment analytics as demanded by today’s world-class financial institutions. Management believes that this success indicates the beginning of a slow recovery in IT spending by our customers on mission critical software systems. Third quarter new business will likely, however, reflect the traditionally soft summer holiday period, leading to a stronger fourth quarter.’ Bill Holwell, CFO, commented: ‘Operating costs excluding restructuring costs were 20% lower in the second quarter than the year ago period and were marginally lower than the previous quarter, further demonstrating management’s success in driving costs out of the business. In addition, Brainpower is in the process of implementing a further cost reduction program, which will target 1.5 million Euros in annualized savings. EBITDA losses before restructuring costs equaled 1.46 million Euros, 8% lower than the previous period and considerably lower than the year ago period. Cash used in the quarter was 1.7 million Euros, which was 0.5 million Euros higher than the previous quarter’s cash usage, primarily due to Brainpower’s 6-monthly invoicing model.’ end of ad-hoc-announcement (c)DGAP 29.07.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: ABOUT BRAINPOWER Brainpower develops and supplies investment analysis and decision support solutions 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 and a copy of the full press release visit: http://www.brainpowerweb.com , http://www.brainpower.de 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: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 290830 Jul 03