InVision AG

Earnings Release • Aug 15, 2007

News Details

Corporate | 15 August 2007 17:21

InVision Software AG: Revenue and earnings growth in the first half year proves success of the internationalisation strategy

InVision Software AG / Half Year Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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P R E S S R E L E A S E

InVision Software AG: Revenue and earnings growth in the first
half year proves success of the internationalisation strategy

• Group revenues rose by 41 percent to EUR 4.82 million

• Internationalisation of business drives growth

• Successful IPO in June secures capital base for further group
  development

Ratingen, 14 August 2007 – InVision Software AG has reported continued
revenue and earnings growth for the first half year of the current fiscal
year. Compared to the first half of 2006, revenue rose by 41 percent to EUR
4.82 million. 53 percent of this revenue was generated from locations
outside of Germany, Austria and Switzerland (DACH). These revenues outside
the DACH region totalled EUR 2.557 million (2006: EUR 1.101 million), which
represents a 132 percent increase. Revenues in the DACH region during the
first half of the year declined slightly by 3 percent to EUR 2.263 million,
thereby accounting for 47 percent of revenues (2006: 68 percent). This
shift unequivocally proves the success of InVision's internationalisation
strategy. The EBIT margin improved from -26 percent to -21 percent whereby
the operating result was EUR -989,000 and is thus 13 percent lower than
last year. The company reported positive after-tax results of EUR 254,000
for the first half of 2007 compared to EUR -751,000 sustained during the
same reporting period in 2006. Earnings per share also improved favourably,
increasing to EUR 0.11 for the first half of 2007 compared to EUR -0.34 in
the previous year, in each case based on 2.235 million shares.

Increasing revenues

The raise in revenues mainly resulted from the 179 percent increase in
service revenues to EUR 1.763 million (2006: EUR 631,000) and the 29
percent increase in maintenance revenue to EUR 1.491 (2006: EUR 1.153
million). The significant increase in the service revenue is based on the
expansion of service capacities in the second half of 2006 and on the
continuing high utilisation of capacity in the Professional Services
Division. The increase in maintenance revenues is the direct consequence of
a higher maintenance base resulting from licence revenues with both new and
existing customers in the previous year and of consistently stable customer
loyalty. The licence revenue dropped slightly by 5 percent from EUR 1.64
million to EUR 1.566 million because in the first half of the year it was
generated primarily with existing customers and smaller and mid-sized new
customers and, unlike the previous year, did not include revenue from major
projects.

Successful initial public offering secures further group development

Since 18 June 2007, InVision Software AG has been listed in the Prime
Standard Segment of Deutsche Boerse. During the course of the IPO, a total
of 1,077,000 shares were successfully placed, of which 714,996 shares
resulted from a capital increase. The over-allotment option was exercised
in full, and approximately 48 percent of the shares are held in free float.
The company received a total of approximately EUR 22.9 million in gross
proceeds from the capital increase. Cash and cash equivalents have
increased from EUR 142,000 as of 31 December 2006 to EUR 20.223 million,
while financial liabilities fell from EUR 879,000 to EUR 34,000. With a
capital ratio of 80 percent (31 December 2006: 4 percent), the equity
capital is now EUR 21.519 million (31 December 2006: EUR 247,000) and
provides a solid basis for the company's further growth and development.
The balance sheet totals rose to EUR 26.908 million (2006: EUR 5.711
million) mostly as a result of the equity capital increase. The cash flow
from current operating activities, which is generated primarily by the
incoming payments from major projects, reached EUR -57,000 in the first
half of the year (2006: EUR -682,000). This represents -1 percent of group
revenue (2006: -20 percent).

Outlook

InVision continues to pursue a committed growth strategy for acquiring new
customers and earning additional revenue with existing customers. During
the remaining course of the fiscal year 2007, the emphasis will be placed
on reinforcing sales and service capacity at the existing locations and on
further expanding the company's position as one of the global technology
leaders in providing solutions for enterprise wide workforce management.
The company also plans to continue investing in the ongoing development of
its InVision Enterprise WFM product line. Given the successfully completed
pilot projects for some major international customers in the first half of
the year, the group expects a significant improvement in earnings for
fiscal year 2007.

About InVision:

InVision Software AG is one of the internationally-leading suppliers of
enterprise wide Workforce Management solutions which enable companies to
optimise the planning and scheduling of their staff. InVision empowers
customers to reduce personnel costs, increase productivity, improve
employee satisfaction and to boost revenue by leveraging better customer
service. Founded in 1995 with its headquarters in Ratingen (Germany),
InVision currently employs more than 140 employees and has offices in
Europe, North America and South Africa. Since 18 June 2007, InVision
Software AG (IVX) has been listed in the Prime Standard Segment of the
Frankfurt Stock Exchange. Among InVision's customers there are numerous
international blue chip companies such as ABN Amro, Allianz, BMW, Deutsche
Telekom, IKEA, Sky and Vodafone.

For more information, please visit: www.invisionwfm.com

Jutta Kropp
Head of Corporate Communications
InVision Software AG
Halskestrasse 38, D-40880 Ratingen (Germany)
Tel.: +49 2102 728-444, Fax: +49 2102 728-111
E-Mail: ir@invision.de

DGAP 15.08.2007

Language: English
Issuer: InVision Software AG
Halskestraße 38
40880 Ratingen
Deutschland
Phone: +49 (0)2102 / 728-0
Fax: +49 (0)2102 / 728-111
E-mail: info@invision.de
Internet: www.invision.de
ISIN: DE0005859698
WKN: 585969
Indices:
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Düsseldorf, München, Stuttgart

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