029 Group SE

Earnings Release • Jul 29, 2004

News Details

Ad-hoc | 29 July 2004 08:30

Brainpower N.V. Second Quarter Results 2004

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Brainpower N.V. Second 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 Second Quarter ended June 30, 2004. Revenues equaled 1.73 million Euros, up 19% from the second quarter 2003 results and 17% higher than revenues recognized in the period ended March 31, 2004. EBITDA losses before restructuring costs reduced to 258,000 Euros from 1.46 million Euros in the year ago period. ‘We saw the momentum continue to grow in the wealth management space’, stated Rocco Pellegrinelli, Chairman and Chief Executive Officer of Brainpower. ‘Our new business for the quarter included a three-year global deal with HSBC Private Bank and also a three-year deal with Banque Cantonale de Geneve. In addition, there was also interest from integrators now recommending our products as part of their overall wealth management solution. We continued our collaboration with third parties by creating a “best practices” laboratory for the Italian asset management community with Sungard and CapGemini. The company also signed a further agreement with a third party service provider, who will utilize our technology within one of their new products. Overall we are happy to see that the recently expanded product range has translated into increased visibility for our company in the market place, resulting in a significantly expanded new business pipeline for the second half of the year.’ Bill Holwell, Chief Financial Officer of Brainpower, added, ‘As previously stated, the shift by some clients from term to perpetual licenses with upfront fees is causing some revenue variability on a quarterly basis. We anticipate this trend to continue moving forward but still expect to see quarterly revenue expansion due to the strength of our product portfolio. The trend toward perpetual licenses has also had an impact on Brainpower’s total backlog of booked revenue to be recognized over the next two to three years. At the end of the second quarter this backlog equaled EUR6.8 million, down slightly from EUR6.9 million at March 31, 2004. As expected, cash used in operations during the quarter of 649,000 Euros was higher than the previous quarter but down from 1.6 million Euros used in the second quarter of 2003. As previously mentioned, this is principally due to our six-monthly invoicing pattern, which results in cash collections from customers being higher in the first and third quarters of the year. The company increased its access to short-term credit facilities in the quarter and has sufficient funding to cover expected future cash outflows.’ end of ad-hoc-announcement (c)DGAP 29.07.2004 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 290830 Jul 04