029 Group SE

Earnings Release • Nov 9, 2004

News Details

Ad-hoc | 9 November 2004 08:34

Brainpower N.V. Third Quarter Results 2004

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Brainpower N.V. Third Quarter Results 2004 Brainpower N.V. (Deutsche Börse, Prime Standard: BPW), provider of analytic applications, technology and data management solutions to the investment management community, announces results for the Third Quarter ended September 30, 2004. Revenues equaled 1.42 million Euros, in line with the third quarter 2003 results but 18% lower than revenues recognized in the period ended June 30, 2004. EBITDA losses before restructuring costs reduced to 635,000 Euros from an EBITDA loss of 1.17 million Euros in the year ago period. Rocco Pellegrinelli, CEO of Brainpower, commented; ‘Revenues in the quarter were in line with the seasonally weak nature of our business during summer months. On the other hand we anticipate a robust end of year and we believe we are on track to be EBITDA break-even in the fourth quarter. During the quarter we started to see tangible results from our efforts to license and sell components of our powerful technology via third party channels. For example, we saw the launch of a previously signed distribution agreement with Reuters, which the Company expects to deliver a significant impact on revenues as early as the first half of 2005. Selling through a network of global partners is part of our core strategy and we believe that in 2005 we will be able to record a significant contribution in terms of revenues from the various partners with whom we do business.’ ‘Overall we are happy to see that the recently expanded product range has translated into increased visibility for our company in the market place,’ continued Mr. Pellegrinelli,’resulting in a significantly expanded new business pipeline, which we expect to leverage in 2005.’ Bill Holwell, Chief Financial Officer of Brainpower, added, ‘As expected, the shift by some clients from term to perpetual licenses with upfront fees is causing some revenue variability on a quarterly basis. The impact of this was more pronounced in the third quarter as a result of the quieter summer months but we are forecasting a strong performance in the fourth quarter. This, combined with our cost reduction programme, should result in the Company achieving its EBITDA breakeven target for the next quarter. Cash used in operations during the quarter of 640,000 Euros was marginally lower than the previous quarter and in line with cash used in the third quarter of 2003. Whilst the company has sufficient funding in place to cover expected future cash outflows, we are currently assessing other sources of funding to ensure that the company has sufficient strength to expand successfully in the future.’ end of ad-hoc-announcement (c)DGAP 09.11.2004 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: ABOUT BRAINPOWER Brainpower provides analytic applications, technology and data management solutions to the global investment management community. Brainpower’s distinctive approach to addressing the portfolio manager’s workflow delivers middle-office functionality and analytic power, and back-office reporting capabilities to the front office – on the fly. 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, New York and Zurich. For further information see: http://www.brainpowerweb.com or contact: William Holwell Chief Financial Officer Brainpower N.V. Tel : +44 (0) 20 7337 9123 Email: wholwell@brainpowerweb.com ——————————————————————————– WKN: 553169; ISIN: NL0000238228; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 090834 Nov 04